Federal Finance Minister Ishaq Dar has said that the staff-level agreement with the IMF is expected within the next two days.
According to details, while Addressing a seminar in Islamabad, the federal finance minister said that the Government has inherited the economic crisis and taking steps for the economic revival of the country.
Also Read: National Assembly Approves Finance Bill 2023 to avail IMF Loan
He appreciated the role of the World Bank in Pakistan’s economy adding that the Asian Development Bank is a key development partner of Pakistan.
“We want to stabilize the national economy in the new budget and intend to scale down challenges for the general public in the next budget,” he assured. Federal Minister also promised to overcome current economic problems soon and also assured the revival of the Economy in the coming few months.
Ishaq Dar assured strict implementation of the government’s austerity drive. “All cabinet members have stopped the use of big jeeps, and the federal government will curtail expenditure by 15 percent,” he said. “Official delegations won’t stay in five-star hotels. Government officials and ministers will travel in economy class,” the finance minister said.
Dar also claimed that “Pakistan’s economy facing baseless propaganda, there is none of the truth about this propaganda of bankruptcy”.
While taking a jibe at PTI Government he said that Pakistan was among the world’s emerging economies in 2018 and a hub for international investment. “Imran Khan drastically enhanced Pakistan’s borrowing by 24,000 billion. His policies paved the foundations for the price hike,” he claimed. “Pakistan’s economic difficulties have increased since 2018,” the finance minister said.
Imran Khan deviated from the IMF program and hurt the confidence of development institutions,” he further said.
Remember here one thing, Pakistan is facing the worst economic crisis due to the lack of Dollars in the country’s state bank which is not enough for international trade and payments.
Keeping this in view Government moved to the IMF the agreement of stalled $7 billion loan program. In order to full fill the tough demands of IMF for a revival of the Loan, Government put a heavy tax on different and approved the Taxes implementation via a Mini budget.
Government increase the General Sales Tax GST rate from 17 to 18% and increased the Federal Excise Duty (FED) on cigarettes and Tobacco in order to fetch an additional Rs115 billion out of Rs170 billion agreed to by Pakistan in line with the IMF conditions.
Mini-budget proposals
- Govt has increased GST on luxury items from 17% to 25%
- Increase in federal excise duty on cigarettes and fizzy drinks.
- Increase in federal excise duty on cement
- GST has been increased from 17pc to 18pc
- Benazir Income Support Programme (BISP) handouts increased to Rs400bn from Rs360bn
- FDE on business and first-class air tickets to now be Rs20,000 or 50% — whichever is higher
- GST is to not be imposed on essential goods.
