Pakistan to present Mini Budget 2021
Pakistan is in a terrible situation with respect to its IMF deal.
Pakistan has been asked to present a mini-budget to enhance taxes and revenues which earlier was set in budget 2021-22.
The target to collect revenue that was set in budget 2021-22 was Rs.5800 Billion which is now on the recommendation of IMF will be increased up to Rs.6100 Billion.
The Mini Budget 2021 will also cut Rs.200 Billion development fund and Govt will not use this fund for the fiscal year 2021-22 development activities on the recommendations of IMF.
Almost Rs.700 Billion worth of tax exemption will be removed which earlier was given in budget 2021-22.
As per the financial advisor, Shaukat tarin no new taxes will be imposed in the mini-budget rather only exemptions will be taken back which earlier were given in terms of tax relieves in budget 2021-22.
Further to this Shaukat Tarin stated that certain tax exemptions in agriculture and fertilizer will not be taken back.
The tax exemptions given on packed food, mobile phones, banking transactions are likely to be taken back.
Pakistan has a deal with IMF of $6 Billion which was supposed to be given to Pakistan in installments. During these installments, IMF had to check Pakistan to meet the given conditions and suggestions by IMF regarding tax collections.
Now IMF has given some new suggestions to Govt of Pakistan will be implemented in mini budget.
The next meeting of IMF directors will be held in 12 January 2022 and before that Pakistan has been asked to meet the suggestions given by IMF to get $1 billion.
Pakistan’s economic condition is worst and the current account is also in deficit but the good news for Pakistan is that SBP has signed on a deal with Saudi Arabia to get the $3 Billion as foreign reserves at a certain markup.
The Pak Rupee is also continuously losing its worth against US DOllar.
Shaukat tarin has hinted that Pak Rupee will get 10 rupees against US Dollar after IMF deal is finalized.