Syed Saif Ul Hassan 
Sep 18, 2025
In an unsettling development, imported cars, electronics, and cigarettes are expected to become more expensive in Pakistan as the government gears up to introduce a mini-budget following the recent floods, which have caused enormous financial damage to the country.
The mini-budget is reportedly being introduced to increase the prices of the aforementioned items.
With this mini-budget, the government aims to raise revenue for flood rehabilitation and upcoming projects in the backdrop of devastating monsoon floods that led to nearly 1,000 fatalities, destroyed 2.2 million hectares of crops, and displaced over 2.5m people across Pakistan.
With food prices surging and disease outbreaks posing a threat to relief camps, the initiative has been taken as the government faces pressure to gather resources to ensure a quick recovery of the flood-driven damages.
The proposed mini-budget would target over 1,100 imported items in a bid to generate up to Rs50 billion through a new Federal Flood Levy. These funds are intended to support flood relief and initiatives, such as the Jinnah Medical Complex in Islamabad.
These measures are receiving a push as the Federal Board of Revenue (FBR) has already missed its August tax collection target by Rs50bn and is advocating for these efforts ahead of discussions with the International Monetary Fund (IMF).
Imported luxury goods are a key source of emergency revenue to meet the ambitious annual target of Rs14.1 trillion, FBR officials noted.
With the new tariffs awaiting a nod from Prime Minister Shehbaz Sharif, luxury living in Pakistan will become significantly more expensive and add further financial strain to an already struggling economy.
