ISLAMABAD-The Federal Board of Revenue (FBR) has missed the tax collection target of first half of the ongoing fiscal year by Rs287 billion that may forced the government to introduce mini budget to achieve the annual target.

The FBR has provisionally collected Rs 2080 billion in first half (July-December) of the current fiscal year as against the target of Rs2367 billion.

The FBR has witnessed shortfall of Rs287 billion in first six months of the year 2019-20. "Alhumdulillah FBR has collected Rs 2080 billion by this time for the half year ended December 31, 2019.

This is higher by 16 percent over last year for the same period," chairman FBR Shabbar Zaidi said on his social media account.

The International Monetary Fund (IMF) had recently cut the unrealistic tax collection target of Rs5.503 trillion to Rs5.238 trillion, a reduction of Rs265 billion.

The IMF had slashed the target on the demand of the government, which was struggling to meet the target from the start of ongoing financial year. However, the government may struggle to achieve the revised target without mini budget.

Pakistan has agreed under the new structural benchmark condition with the IMF to take ‘additional measures’ on the eve of presenting the budget review before parliament by end of February 2020. The FBR officials had not commented on the issue of presenting mini budget.

The budget deficit would be higher if tax collection shortfall exceed in next six months period of the current fiscal year.

The government has successfully controlled the soaring budget deficit at 0.7 percent of the GDP during first quarter (July to September) of the current fiscal year despite facing shortfall in tax collection.

Non tax collection had helped the government in controlling the budget deficit in first quarter.

Pakistan’s budget deficit was recorded at Rs286 billion during July to September period of the year 2019-20. In terms of GDP, the country’s budget deficit was recorded at 0.7 percent during the first quarter of the ongoing financial year as compared to 1.4 percent in the same period of last year, the latest data of ministry of finance showed.

The country’s expenditures have stood at Rs1.775 trillion as against the revenues of Rs1.489 trillion during July-September period of FY2020. The budget deficit was recorded at Rs286 billion (0.7 percent of the GDP).