ISLAMABAD: Prime Minister Shahbaz Sharif has rejected suggestions to bring a mini-budget before the new budget and has made it clear to the FBR that the public is worried about oil prices, so do not think of imposing more taxes or bringing a mini-budget and alternative sources of revenue should be found. FBR sources say that in an important meeting held to increase tax revenue due to tensions in the Middle East, the FBR presented various tax proposals to Prime Minister Mian Shahbaz Sharif, which the Prime Minister rejected. According to FBR sources, the Prime Minister said that the public is worried about oil prices, so do not think of imposing more taxes or bringing a mini-budget. According to sources, the Prime Minister has ordered the FBR to conduct detailed consultations on the budget proposals due to the tense situation in the Middle East. Sources say that a proposal to convince the IMF to revise the targets in view of the tense situation in the Middle East is also under consideration and the priorities of the federal budget for the upcoming fiscal year 2026-27 are likely to be changed according to the situation.

There is a possibility that important targets including inflation and fiscal deficit will be affected in the upcoming budget. The three-year budget strategy of current account deficit may adversely affect the targets.

Sources say that the work on budget preparation for the next fiscal year has been accelerated and the Annual Planning Coordination Committee meeting is expected this month and the budget preparation process is likely to be completed and the budget will be presented in the parliament in the first decade of June.