The government introduced the Finance (Supplementary) Bill 2023, also known as the “mini-budget,” in the National Assembly and Senate on Wednesday in order to fulfill the conditions for releasing the $1.1 billion IMF loan tranche.
The administration led by the Pakistan Democratic Movement (PDM) intends to reduce the budget deficit and increase tax revenue through the “mini-budget” in order to satisfy the demands made by the Washington-based lender.
VIRGIN ATLANTIC STOPS FLIGHTS TO PAKISTAN
The National Assembly will not send the legislation to the Standing Committee on Finance and Revenue for further review; however, the Senate has referred the legislation to the appropriate committee.
The proposed GST increase ranges from 17% to 25% for luxury goods.
Senior Ministry of Finance officials have previously stated that they expect the bill to pass by Thursday morning, allowing for funding from bilateral and multilateral sources in addition to the IMF.