Shaukat Tarin says govt to present mini-budget next week
By Muhammad JuniadPublished On 05 Jan 2023
Advisor to PM on Finance and Revenue Shaukat Tarin has revealed that the federal government will table a mini-budget by next week
“The latest agreement with the International Monetary Fund (IMF) is different from the previous ones,” he said. Tarin claimed that tougher conditions were agreed upon in the past.
The advisor pointed out that the deal was already done before his appointment as finance minister on April 17 this year.
“We revisited the terms and decided tax broadens approach instead of burdening taxpayers with some more taxes,” he added.
According to the financial adviser, the IMF wanted Pakistan to impose new taxes worth around Rs700 billion. We managed to bring it down to Rs350 billion.
“They [IMF] wanted to increase power tariff by Rs4.85 per unit, we made a deal on half,” he told. “We have asked them to exclude many clauses which we knew the parliament won’t approve.”
IMF’s $1b loan tranche
The IMF has agreed to release the next loan tranche of $1b to Pakistan under the $6bn program on November 22. The agreement yet needs to be approved by the Fund’s Executive Board.
It praised Pakistan for meeting key targets and will likely improve investors’ trust in the country.
The development comes after prolonged negotiations, which began on October 4. The next loan tranche of $1.059 billion would bring the total IMF disbursements to Pakistan to $3.27 billion.
Govt announces an increase in PDL
While addressing a press conference on Monday Tarin announced that the government will increase the petroleum development levy (PDL) by Rs4 every month as part of the IMF agreement.
It would allow the government to increase the PDL and keep the petroleum prices unchanged.
IMF’s five conditions
- To increase the petroleum development levy
- To enforce 17% universal General Sales Tax
- The amendment about the State Bank of Pakistan
- To allow and perform the audit of the Covid-19 vaccine program
- To provide the details of the beneficial owners of the vaccine supplying companies
