Govt tables mini-budget 2023 to unlock $1.1bn IMF loan
The government tabled the mini-budget 2023 to unlock a $1.1bn IMF loan on Wednesday!
Minister for Finance and Revenue Senator Ishaq Dar introduced the Finance (Supplementary) Bill 2023 or the “mini-budget” in the National Assembly and Senate.
The bill is aimed at the government seeking to fulfil the prerequisites for unlocking the $1.1 billion International Monetary Fund (IMF) loan tranche.
The “mini-budget” proposes:
- Increase in GST on luxury items from 17% to 25%
- FED on business and first-class air tickets be increased to Rs20,000 or 50% — whichever is higher
- 10% withholding adjustable advance income tax to be imposed on marriage halls
- Increase in FED on cigarettes, soft and sugary drinks
- FED on cement to be raised from Rs1.5 kg to Rs2 kg
- Increase in GST from standard 17% to 18%
- GST to not be imposed on essential goods — wheat, rice, milk, pulses, vegetables, fruits, fish, eggs, meat
- BISP stipend to be increased; govt to allocate Rs400 billion for programme
While addressing the lower house of parliament, Ishaq Dar compared the performance of the previous PML-N and PTI governments.
The federal minister said that during former prime minister Nawaz Sharif’s tenure, the GDP per capita increased while the Pakistan Stock Exchange’s (PSX) market capitalisation was $100 billion.
However, the PSX’s market capitalisation declined to $26bn during the PTI government, he said, adding that the decrease showed a lack of investor confidence in the previous government.
