Govt plans tax settlements to cover Rs605bn shortfall instead of mini-budget

March 06, 2025 (MLN): The government has devised an alternative plan to cover the Rs605 billion revenue shortfall by settling tax cases currently under trial in courts instead of introducing a mini-budget.

The International Monetary Fund (IMF) has been briefed about the strategy to meet the shortfall through tax settlements, well informed sources told Mettis Global.

Prime Minister Shehbaz Sharif has assured full cooperation in expediting these cases.

The Chief Justice of the Supreme Court has also approved the request for early hearings of tax cases.

A crucial hearing regarding the super tax is scheduled in the Supreme Court on March 10.

The Federal Board of Revenue (FBR) anticipates securing Rs157bn under the super tax provision.

Furthermore, Rs23bn has been won under Clause 99D of the windfall profit tax, while Rs72bn has been received from the advance deposit ratio tax in banks.

Additionally, government officers have been given a deadline until September to declare their assets.

A briefing was held regarding amendments to the Civil Servant Asset Declaration Act, and a digital portal will be launched to facilitate the declaration process in line with IMF requirements.

Negotiations continue on various economic fronts, including the operationalization of the external financing and tax policy unit.

Discussions are also being held on inflation trends, comparisons with other regional countries, and national accounts.

Moreover, reports from the Labor Force Survey, Family Budget Survey, and Living Standards Review have been analyzed as part of the IMF negotiations.

Key discussions are also underway regarding electricity tariffs, gas tariffs, and circular debt management.

Today, negotiations will focus on finalizing the draft for government officers' asset declarations, which will be presented to the IMF.

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