Pakistan government plans to raise Rs50bn in mini-budget for flood relief

The federal government is preparing to introduce a mini-budget aimed at raising at least Rs50 billion to support flood victims’ rehabilitation and address a widening tax shortfall.

Officials confirmed that new levies on luxury items and cigarettes are under consideration.

The proposed mini-budget seeks to impose additional taxes on luxury vehicles, cigarettes, and imported electronic goods. A levy equivalent to the regulatory duty that was reduced in June could also be reinstated on imported products.

According to Federal Board of Revenue (FBR) officials, a five per cent levy on electronic goods is under review. The price threshold for this tax has not yet been finalised.

Levies on luxury cars and cigarettes

The plan also includes a levy on luxury vehicles with engines of 1,800cc and above. However, officials noted that approval from the International Monetary Fund (IMF) would be required before such taxes can be implemented.

In addition, the government is considering imposing a Rs50 levy on each pack of cigarettes. Unlike other revenue streams, this levy will not be shared with the provinces and will go directly to the federal government.

Meanwhile, as per the Flood Forecasting Division (FFD) the Guddu and Sukkur barrages will remain in the “high flood” situation over the next 36 hours.

But Kotri Barrage has now attained a “medium flood” level as water begins to move downstream.

In Punjab, the situation in the rivers is returning to normal as water levels continue to fall on Ganda Singh Wala on the Sutlej as well as Panjnad barrage on Chenab, as per FFD. At least 181,159 people have been affected by recent floods in Sindh till now, according to the Provincial Disaster Management Authority (PDMA) of Sindh.

The government has established 528 relief camps, 184 medical camps. Some 471,392 animals have been evacuated from riverine areas so far.

Rainfall is likely to continue in parts of Punjab, Khyber Pakhtunkhwa (KP), and Balochistan, the PMD said.

In an advisory issued, the PMD forecast rain “over the upper catchments of all major rivers, along with Islamabad, Rawalpindi, Gujrat, Gujranwala, and Lahore division.”

“Isolated thunderstorm/rain is expected over Peshawar, Kohat, Bannu, Sargodha, Faisalabad, and Zhob divisions up to 19 September,” it added.

Meanwhile, thieves allegedly have looted valuables from the house of a man displaced by the recent flood in Vehari district’s Fateh Shah area in Punjab. Police said Iqbal had to evacuate with his family because of the floodwaters, leaving his belongings in his house. Some thieves stole a fodder-cutting machine, a motorcycle and other valuables from his house.

At the same time, at least 24,475 people have been rescued from flood-hit Jalalpur Pirwala in Multan. In a post on X, the government of Punjab said that around 10,796 people were rescued from Ali Pur in Muzaffargarh, and another 1,009 from Baroos Abad in Rojhan. The Head Panjnad on Chenab River has receded to low flood.

According to FFD data, outflows at Panjnad were falling and at around 185,000 cusecs. Guddu recorded steady outflows of over 550,000 cusecs, while Sukkur also witnessed steady outflows of nearly 520,000 cusecs.

A committee formed by the prime minister to take stock of flood damages said the initial estimates will be finalised in ten days based on “accurate and transparent field reports. Sharif has separately ordered a “comprehensive assessment” of the losses. Planning Minister Ahsan Iqbal, while chairing the meeting, stressed the importance of working in coordination with the provinces for a comprehensive assessment. The provincial representatives, however, said a final and accurate assessment would only come once the floodwaters receded.

Tariq Butt / Agencies