Pakistan PM rules out mini-budget, blocks fresh tax measures

Prime Minister Shehbaz Sharif has ruled out the introduction of a mini-budget and rejected proposals to impose new taxes or increase existing tax rates ahead of the upcoming federal budget, according to senior government sources.

Officials said Sharif was presented with a range of tax measures aimed at boosting revenue in light of rising fiscal pressures linked to escalating tensions in the Middle East. However, the prime minister took a firm stance against any additional taxation before the new budget is finalized.

Sharif emphasized that soaring global oil prices have already burdened the public and instructed authorities not to consider further tax measures or a mini-budget at this stage, sources said.

He also directed officials to engage with the International Monetary Fund to seek a review of fiscal targets, citing the economic impact of the volatile situation in the Middle East.

In addition, the prime minister rejected a proposal to present the federal budget in the last week of May, instead calling for broader consultations on budget proposals due to the evolving regional situation.

Sources indicated that Pakistan’s budget priorities may be adjusted to reflect changing economic conditions stemming from Middle East tensions. Key fiscal targets under a three-year framework, including inflation, the fiscal deficit and the current account deficit, could be significantly affected.

The federal budget is now expected to be presented in the first or second week of June, according to officials.