Finance Minister Muhammad Aurangzeb on Wednesday ruled out the possibility of a mini-budget, saying no new taxes are planned. He assured that no additional revenue measures are under consideration despite shortfalls in the first quarter. The minister stressed that Pakistan remains committed to its tax-to-GDP target of 11 percent under the IMF program.
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Talking to reporters after a Senate Standing Committee meeting, Aurangzeb said IMF review talks were moving in the right direction. He confirmed that discussions were underway on the second review of the $7 billion Extended Fund Facility and the first review under the Resilience Sustainability Facility. He emphasized that Pakistan had met its external obligations, including repayment of a $500 million Eurobond.
Aurangzeb further said Pakistan would also repay $1.3 billion on a Eurobond maturing in April 2026. He announced plans to launch a Panda bond in November 2025, starting with $250 million. The bond program may reach $1 billion in phases, helping Pakistan tap into the Chinese financial market. He said this entry was long overdue and would strengthen the country’s external financing options.
The minister also revealed that the Federal Board of Revenue will not prepare the annual budget for 2026-27. Instead, the new Tax Policy Unit under the Ministry of Finance will take the lead, supported by an advisory board of experts. The FBR will only focus on revenue collection. He opposed including parliamentarians on regulatory boards, saying there was no such precedent.
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Meanwhile, FBR officials briefed the committee about a tax notice sent to Senator Afnanullah. They said the matter was sub-judice and personal details could not be shared. For now, Aurangzeb’s assurance against a mini-budget has brought clarity, while IMF talks and upcoming bond launches remain crucial for Pakistan’s economy.