In order to meet the requirements for unlocking the $1.1 billion International Monetary Fund (IMF) loan tranche, the administration on Wednesday introduced the Finance (Supplementary) Bill 2023, also known as the “mini-budget,” in the National Assembly and Senate.
The government last night approved raising the general sales tax (GST) rate from 17% to 18% and increasing the federal excise duty (FED) on cigarettes in a race against time to appease the IMF for the revival of the bailout programme. This was done to raise an additional Rs115 billion out of the Rs170 billion Pakistan agreed to pay under the terms of the IMF.
