LAHORE/ISLAMABAD: Prime Minister Shehbaz Sharif said on Sunday that though it was difficult to make the budget as per the guidelines of the International Monetary Fund (IMF) and that the government has saved the masses from many more taxes.
“I had long discussions on every point and the matter was resolved and no additional taxes were imposed on agriculture and fertilizers,” said Prime Minister Shehbaz, revealing that the fund wanted more taxes on agriculture, fertilizers and other areas including medical equipment – even those for charity. HOSPITAL.
Notably, President Asif Ali Zardari on Sunday approved the tax-heavy Finance Bill 2024, which will come into effect on July 1, marking the start of the next fiscal year.
The federal government presented a tax-laden budget of Rs 18.877 trillion for the fiscal year 2024-25 (FY25) two weeks ago and it was duly approved by the National Assembly on Thursday this week.
The FY25 budget comes against the backdrop of efforts by the Pakistan Muslim League-Nawaz (PML-N)-led coalition government to meet the preconditions for an additional – longer and larger – IMF program by setting a high tax revenue target and attempting to reduce the fiscal deficit from 7.4% to 5.9 %.
He had earlier reported that while the Washington-based lender had agreed to abolish the Goods and Services Tax (GST) on textbooks, restore rebates for professors and researchers, abolish the Federal Excise Duty (FED) on cement and some other technical changes; refused to allow the government to restore export earnings to a fixed income tax regime, as exporters lobbied hard against the move to a normal tax regime.
Meanwhile, the center has also introduced reforms to the pension system to begin a gradual reduction in pension liabilities.
The Prime Minister acknowledged that the government was under pressure from the Fund and that if the government accepted all the IMF’s instructions, there would be a greater burden on many sectors, which would increase the difficulties for the government.
He revealed that the IMF wanted medical equipment to be taxed – including equipment for charity hospitals.
“I convinced them in this regard and no such taxes were imposed,” he said.
The prime minister emphasized that the government and the creditor had agreed on taxes after complex “long discussions”, reiterated his commitment to strengthen the country’s economy and highlighted positive indicators of investment opportunities.
“We will fulfill the dream of a strong economy; there are clear and positive reports of investment from friendly countries in Pakistan,” he noted.
Besides, PM Shehbaz also expressed his optimism that this would be Pakistan’s last deal with the IMF and the budget under it, after which people would get more relief.
Referring to inflation falling from 36% to 11%, the prime minister said he hoped it would fall further in the coming months.
Answering a question, he clarified that the issue of increasing oil prices and fees was not related to the IMF and was related to the incumbent government.
His remarks came at a time when the government increased the tax on petrol and diesel from Rs 60 per liter to Rs 70 per litre.
Besides, a charge of Rs 50 per liter would also be imposed on light diesel and kerosene, while a charge of Rs 70 per liter would be applicable on high octane oil.
Besides, in response to a question, the Prime Minister also bemoaned the “deplorable” role and response of opposition parties to the National Assembly resolution in response to the resolution passed by the United States House of Representatives demanding an investigation into the February 8 election.
“There can be no compromise” on sovereignty
He said that Pakistan is a sovereign and independent country and “this policy of ours is very important to us. We cannot compromise on it”.
His comments refer to House Resolution 901, which overwhelmingly voted to require a “full and independent investigation into allegations of interference or irregularities” in polls.
HR 901 was approved on Tuesday by a massive 368 to seven vote, representing 85% of the total number of US lawmakers in the legislature.
The move drew a strong reaction from Islamabad, with the foreign ministry saying it was “based on an incomplete understanding of the political situation and electoral process in Pakistan”.
In addition, the House of Commons passed a tit-for-tat resolution on Friday, condemning the resolution by the US Congress, calling it “contrary to the facts” and an “interference” in its internal affairs.
The Pakistan Tehreek-e-Insaf (PTI) supported the Sunni Ittehad Council (SIC) lawmakers who opposed the resolution, chanting slogans of “Cipher-Cipher” and “Hanba-Shame” in the House and also tore copies of the resolution.
Commenting on the Finance Ministry resolution today, PTI Chairman Barrister Gohar Ali Khan told reporters outside the Parliament House that the government had not properly read the US Congress resolution that demanded ensuring respect for human rights and transparent public opinion polls.
He was of the opinion that the resolution passed by the US House of Representatives could not be described as “foreign intervention”. However, it revealed the intention of the incumbent government not to hold an inquiry into the 2024 national elections.
‘Saved public from many more taxes’, PM on budget made in line with IMF demands
