Islamabad: Following a staff-level agreement with the International Monetary Fund (IMF), the government has finalised a mini-budget with monetary adjustments and spending reductions totalling PKR 600 billion, according to news outlets. The proposed budget will reduce the Public Sector Development Program by PKR 200 billion and increase taxes to increase revenue to the national coffers.
The government has chosen to reinstate PKR 350 billion in taxes for the current fiscal year, rather than the IMF’s demand of PKR 700 billion, according to the details. Food, fertiliser, and insecticides will continue to be tax-free, according to the administration. The following are some of the other provisions in the mini-budget:
- A 90% increase in real estate valuation and taxes in 40 major cities
- Imposition of regulatory duty on the import of electric vehicles to reduce the import burden
- Increase across the board tariff on complete built unit (CBU) vehicles of all types, however, the imposition of federal excise duty on Semi Knocked Down (SKD) and Complete Knocked Down (CKD) units is still under consideration.
- Imposition of tax on 525 non-essential import items
Furthermore, it was reported that the final text of the budget bill is now in the law division and will be presented to the National Assembly when the terms of the bill have been vetted. It is worth noting that the new budget would undo the government’s economic stimulus plan, which was announced in the main budget in June of this year.