Pakistan faces PKR 385 billion revenue deficit for July-December period

Pakistan is facing a revenue shortfall of PKR 385 billion for the period between July and December 2024, ARY News reported on Wednesday, citing sources.

According to ARY News, the International Monetary Fund (IMF) has recommended that Pakistan implement a mini-budget to address the gap, but the Pakistani Prime Minister Shehbaz Sharif has rejected this suggestion. Instead, he has directed Pakistan’s Federal Board of Revenue (FBR) to find alternative measures to tackle the shortfall.

In response, the FBR has proposed a comprehensive plan to increase revenue without imposing new taxes on the public, with key components of the plan including prioritising the clearance of containers and shipments stuck at ports to boost tax and duty revenues, as well as swiftly auctioning confiscated smuggled goods, ARY News reported, citing sources.

The plan also focuses on strengthening efforts to combat tax evasion and increasing tax collection from sectors that are under-taxed. Additionally, tax-related disputes pending in courts will be expedited, ARY News reported.

The FBR aims to implement these measures before the IMF delegation’s visit to Pakistan and has set a challenging target of PKR 960 billion in tax collection for January, as reported by ARY News, citing sources.

The alternative plan is expected to be fully rolled out by March to mitigate the revenue shortfall.