ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday rejected all proposals to introduce a mini-budget or impose new taxes to address the revenue shortfall amid the economic fallout of escalating tensions in the Middle East following the US-Israel conflict with Iran.
According to senior official sources, the prime minister took a firm stance against any move to introduce additional taxation before the upcoming federal budget.
He was briefed on various proposals aimed at increasing tax revenue in light of the evolving regional situation. However, he categorically rejected suggestions to impose new taxes or raise existing tax rates.
The prime minister directed authorities not to consider burdening the public with additional taxes, noting that people are already under pressure due to rising global oil prices.
He further instructed officials to engage with the International Monetary Fund (IMF) to seek a review of fiscal targets in view of the ongoing Middle East tensions.
Sources said the prime minister also rejected a proposal to present the federal budget in the last week of May. Instead, he ordered extensive consultations on budget proposals in light of the changing economic situation.
Due to the regional uncertainty, the priorities of the upcoming budget are likely to be revised accordingly. Officials warned that key fiscal targets under the three-year budget strategy—including inflation, fiscal deficit, and current account deficit—could be significantly impacted.
The budget is now expected to be presented in the first or second week of June, considering the prevailing geopolitical situation.
