Business

Cars, Cigarettes to Get Costlier as Govt Plans Mini-Budget for Flood Relief

The government is preparing a mini-budget that may burden consumers with higher prices on imported cars, cigarettes, and electronics, aimed at raising revenue for flood rehabilitation and upcoming projects.

The move comes as Pakistan reels from devastating monsoon floods that have killed nearly 1,000 people, destroyed 2.2 million hectares of crops, and displaced more than 2.5 million citizens. With food prices surging and disease outbreaks spreading in relief camps, the government is under pressure to boost resources for urgent recovery efforts.

Sources suggest the mini-budget could target more than 1,100 imported items, generating up to Rs. 50 billion through a proposed Federal Flood Levy. The funds would not only support flood relief but also projects like the Jinnah Medical Complex in Islamabad.

The Federal Board of Revenue (FBR), which already missed its August tax collection target by Rs. 50 billion, is pushing for these measures ahead of key talks with the International Monetary Fund (IMF). Officials see imported luxury goods as the prime avenue for raising emergency revenue to meet the government’s ambitious annual target of Rs. 14.1 trillion.

Key Impacts of Mini-Budget Details
Targeted Goods Imported cars, cigarettes, high-end electronics
Revenue Goal Rs. 50 billion (could rise further)
Reason Flood rehabilitation, IMF talks, mega projects
Affected People Consumers of luxury items, businesses relying on imports

If approved by Prime Minister Shehbaz Sharif, the new levies could soon make luxury living in Pakistan significantly more expensive, adding financial strain to an already struggling economy.