The federal government has handed over the responsibility of finalizing the upcoming budget to Deputy Prime Minister Ishaq Dar after expressing dissatisfaction with the initial proposals prepared by the Finance Ministry and Tax Policy Office.
Prime Minister Shehbaz Sharif has formed a high-level committee led by Dar to review and finalize tax policies for the next fiscal year. Finance Minister Muhammad Aurangzeb and several senior officials are also part of the committee.
Under Pakistan’s agreement with the IMF, the government is expected to introduce nearly Rs. 430 billion in fiscal measures in the upcoming budget. This includes around Rs. 215 billion in new taxes and another Rs. 215 billion through stronger enforcement and anti-evasion measures.
A separate enforcement committee, headed by Minister for Economic Affairs Ahad Khan Cheema, has also been established to focus on improving tax collection and curbing tax evasion. The committee is reviewing digital monitoring systems and AI-based tools to identify under-reporting and false tax declarations.
The move marks a significant shift in budget-making authority, with key fiscal decisions now being overseen by special committees rather than the Finance Ministry alone.
Officials say the government aims to achieve a tax collection target of approximately Rs. 15.3 trillion for the next fiscal year through new taxation policies and enhanced enforcement reforms.
