Aisha Ghaus Pasha, a state minister for finance, stated on Monday that the National Assembly is likely to pass the Finance (Supplementary) Bill 2023 today.
The minister further stated that the government has made the decision to have the lower house approve the mini-budget today. It should be emphasized that the Senate narrowly approved it the first time around.
“Virtual discussions with the International Monetary Fund (IMF) are ongoing and talks will also take place today,” the minister said while speaking to journalists in Islamabad.
Pasha hoped for a staff-level agreement to materialize with the IMF soon. “Matters with the IMF are progressing in a positive direction. A further delay in the agreement is unlikely.”
On February 15, Finance Minister Ishaq Dar introduced the bill in the National Assembly and Senate with budget suggestions in an effort to meet the requirements for releasing the critical $1.1 billion IMF loan tranche that will support the nation’s faltering economy.
On Friday, February 17, the lower house conducted a session to discuss the finance bill. After a brief discussion of the budget recommendations, the session was adjourned without a vote.
“The NA session has been adjourned to meet again on Monday, the 20th February 2023 at 5:00 pm,” it was announced on the official Twitter handle of the lower house.
Dar, while speaking to reporters after the session, said that he expects the bill to be passed in both houses by Monday or Tuesday as Senate Chairman Sadiq Sanjrani has “given us till Friday”.
Pakistan is in urgent financial need as it fights a devastating economic crisis since the foreign exchange reserves held by the State Bank of Pakistan (SBP) barely cover one month’s worth of imports.
Finance bill proposals
- 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.
