Mini Budget and Pakistan Economy

Session held on the Saturday, January 16, 2022 at Muhammad Ali Jinnah University Karachi

Dr. Bilal the Director ORIC SZABIST attended a session as guest speaker on the subject “Mini Budget and Pakistan Economy on January 15, 2022 at Muhammad Ali Jinnah University Karachi.

Dr. Bilal critically analyzed the mini-budget and pointed out that, the government has imposed Rs350 billion in new taxes on the people of Pakistan who are already spinning under high and unprecedented inflation.

Though the bill is likely to revive the payments stalled under the six-billion-dollar extended facility, it will put extra pressure on citizens in the country.

He added that it is worth recalling that so far Pakistan has received just around two billion dollars under this facility. The withdrawal of tax exemptions is a major ‘prior action’ that the IMF demanded before the release of the next tranche.

The government has tried to make it seem that the withdrawal of some tax exemptions are adjustable, and that these were not taxes, but the taxes imposed will directly or indirectly hit the country’s people.

He further pointed out that instead of imposing multiple taxes either directly or indirectly federal government should improve the governance structure. Similarly, government should implement the expansionary policy of development for example investing on Public Sector Development program (PSDP).