The federal government is preparing to introduce Rs. 215 billion in new taxes in the upcoming federal budget as part of efforts to meet commitments made to the International Monetary Fund, sources told ProPakistani.
To oversee the budget review process, the government has formed a high-level committee headed by Ishaq Dar. The committee includes Muhammad Aurangzeb, Ahsan Iqbal, Minister of State for Finance Bilal Kiyani, Finance Secretary Imdad Ullah Bodal, Rashid Langrial, FBR Member Hamid Atiq, Director General Tax Policy Office Dr. Najeeb, and tax expert Asim Zulfiqar of PwC.
According to sources, the committee has been tasked with preparing additional fiscal measures worth nearly Rs. 430 billion, including around Rs. 215 billion in fresh taxes under the reform agenda agreed with the IMF.
The review body will examine and refine tax proposals prepared by the Tax Policy Office to ensure that revenue targets for the next fiscal year are aligned with IMF requirements and fiscal consolidation goals.
Meanwhile, the Finance Division has rejected reports claiming that responsibility for preparing the federal budget has been shifted from the Ministry of Finance to Ishaq Dar. Officials described such reports as “misleading and speculative,” clarifying that the committee is only serving as a consultative forum before the finalization of budget proposals.
The ministry reiterated that the federal budget is still being prepared under the supervision of the Ministry of Finance led by Finance Minister Muhammad Aurangzeb. It added that inter-ministerial review committees are a routine part of the governance process and do not indicate any institutional change in budget-making authority.
