The Finance (Supplementary) Bill 2023, which the government urgently required to pass in order to receive the $1.1 billion tranche of the International Monetary Fund (IMF) loan, was signed by President Arif Alvi on Thursday.
The Pakistani Constitution’s Article 75 has authorised the passage of the finance bill, or “mini-budget.”
The Finance (Supplementary) Bill 2023 was approved by the federal government on Monday in the midst of negotiations with the international lender in accordance with its demands to support Pakistan’s faltering economy.
The law raises the sales tax on imports, including everything from automobiles and home appliances to chocolates and cosmetics, from 17 to 25 percent. There is now an 18% general sales tax, up from 17%.
Also, the cost of business-class flight travel, wedding venues, cell phones, and sunglasses will increase.
The austerity measures, which Finance Minister Ishaq Dar had referred to as “tough decisions,” were then announced by Prime Minister Shehbaz Sharif.
In order to save Rs200 billion and keep the government afloat while the country buckles down to meet the IMF’s requirements, the premier revealed a number of austerity measures.