Govt is going to introduce a Mini Budget 2021 next week on the recommendations of IMF.
Pakistan has a deal with IMF but as Pakistan could not fulfill the requirement of money lending institution hence Pakistan installment was stopped.
IMF has asked Pakistan to revoke the tax relief package given in the budget 2021-22 on different items and sales tax as well.
Govt is bringing back the sales tax to be 17% earlier it was 12%.
In mini-budget taxes and duties are going to be increased on imported perfumes, shoes, vehicles, food items and cereals.
Govt in budget 2021-22 provided tax relief to vehicles that is going to be revoked in mini-budget on the recommendation of IMF. That means that the prices of cars are going to be increased which are already higher comparatively in the region.
The IMF deal is going to be very costly for the Govt as IMF has asked to make State Bank independent and close all of the Govt accounts in the commercial banks and to transfer all the funds into SBP accounts wherefrom IMF and world bank to monitor the Govt accounts transactions.
As the speculation grows about the IMF dictation and implementations of all of its orders, the stock market is crash and the strength of the Pak Rupee is growing weaker and weaker.
Although Pakistan has received a Saudi package of $3 billion and the same has been deposited into SBP but it yet has not put any impact on the worth of Pak Rupee.
Pak Rupee has devalued for the 2nd time in history at so much high level. First, when Bangladesh separated the Pak Rupee depreciated by 58% and now it has depreciated by 30.4% in the regime of the current Govt.
With the implementation of the mini-budget Govt is expected to earn Rs.800 billion more revenue in the current fiscal year.