IMF conditions can be like a bitter medicine for Pakistani economy. The IMF’s conditions include reducing the budget deficit, increasing revenues, eliminating subsidies for electricity and petroleum, and reducing foreign exchange market intervention. The government of Pakistan has also implemented two big conditions to increase the talks with the IMF. The exchange rate has been relaxed by the authorities to meet one of the loan conditions of the IMF, following which a major fall has been seen in the rupee.
Public will be burdened by mini budget
The government has been continuously demanding relaxation of IMF conditions which will put pressure on the public, such as reduction in fuel subsidy. The government is now preparing to present a mini budget to woo the IMF fund. Pakistani company Arif Habib Limited issued a note saying that a mini budget has been proposed. It has been told that the government will take every step that will increase the money. It has been said in this that the government wants to raise 25-30 billion rupees by increasing the excise duty.
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what can happen in mini budget
On behalf of Arif Habib Limited, it has been said that a tax can be imposed on the foreign exchange earnings of banks, which will raise 20 billion rupees. A flood fee of three per cent is expected to raise Rs 50 billion. 60 billion rupees will be collected by imposing an additional tax on sugary beverages. Waqar Ahmed, deputy executive director of the Sustainable Development Policy Institute, said the government may add new taxes in the upcoming mini budget. Taxes can be increased to deal with the effects of floods.
