Skip to content 
Search

Latest Stories

Pakistan to pass tax-heavy budget ahead of IMF loan

Finance Minister Muhammad Aurangzeb moved the finance bill in parliament, which was opened to seek amendments and debate

Pakistan to pass tax-heavy budget ahead of IMF loan

PAKISTAN'S parliament on Friday moved to pass the government's tax-heavy finance bill for the coming fiscal year ahead of more talks on a new IMF bailout as it seeks to avert a debt default for an economy growing at the slowest pace in South Asia.

The government presented the tax-loaded budget two weeks ago, drawing sharp criticism from opposition parties.


Finance minister Muhammad Aurangzeb moved the finance bill in parliament, which was opened to seek amendments and debate by the ruling alliance led by Prime Minster Shehbaz Sharif and its opposition.

Speaker Sardar Ayaz Sadiq announced moving the bill in a live TV telecast.

Policymakers have set a challenging tax revenue target of 13 trillion rupees (£36.93 billion) for the year starting July 1, up about 40 per cent from the current year, in the national budget presented on June 12 that looked to strengthen the case for a new rescue deal with the International Monetary Fund (IMF).

Pakistan is in talks with the IMF for a loan of $6-8 billion.

The rise in the tax target is made up of a 48 per cent increase in direct taxes and a 35 per cent hike in indirect taxes over revised estimates of the current year. Non-tax revenue, including petroleum levies, is seen increasing by a whopping 64 per cent/

The tax would increase to 18 per cent on textile and leather products as well as mobile phones besides a hike in the tax on capital gains from real estate.

Workers will also get hit with more direct tax on income.

Opposition parties, mainly parliamentarians backed by the jailed former Prime Minister Imran Khan, have rejected the budget, saying it will be highly inflationary.

Pakistan has projected a sharp drop in its fiscal deficit for the new financial year to 5.9 per cent of gross domestic product (GDP), from an upwardly revised estimate of 7.4 per cent for the current year.

Pakistan's central bank has also warned of possible inflationary effects from the budget, saying limited progress in structural reforms to broaden the tax base meant increased revenue must come from hiking taxes.

The upcoming year's growth target has been set at 3.6 per cent with inflation projected at 12 per cent. (Reuters)

More For You

Southport

Floral tributes left by members of the public are seen following the fatal knife attack on three young girls in July in Southport.

Reuters

Public inquiry begins into Southport girls' murders

A PUBLIC inquiry begins on Tuesday into the murders of three young girls at a Taylor Swift-themed dance event in Southport last year.

The inquiry will examine whether the attack could have been prevented and how future incidents might be avoided.

Keep ReadingShow less
Starmer-Getty

Starmer is facing a Labour backbench revolt over plans to reform special needs support in schools without guaranteeing existing legal rights. (Photo: Getty Images)

Getty Images)

Starmer faces Labour pushback over SEND reform plans

KEIR STARMER is facing a backlash from Labour MPs over plans to reform special educational needs and disabilities (SEND) support, after ministers stopped short of guaranteeing legal rights for parents.

Education Secretary Bridget Phillipson said the government was committed to reforming the current system, which costs £12 billion a year. However, she did not confirm if legally enforceable rights, such as those provided by education, health and care plans (EHCPs), would remain.

Keep ReadingShow less
Heavy rain and thunderstorms hit London

Londoners faced a wet and stormy start to the week

iStock

Heavy rain and thunderstorms hit London before 30°C heatwave

Key points

  • Heavy rain and thunderstorms drench London at the start of the week
  • Temperatures set to rise with highs of 31°C expected by Thursday
  • Heatwave could be declared by Friday if warm conditions persist
  • Night-time temperatures to remain high, increasing discomfort
  • UV and pollen levels forecast to be very high across the south

Thunderstorms soak London before summer heat returns

Londoners faced a wet and stormy start to the week as heavy rain and overnight thunderstorms swept through the capital. Monday morning saw widespread downpours, leaving commuters reaching for umbrellas and Wimbledon ticket hopefuls queuing in ponchos.

The unsettled conditions followed a burst of thunderstorms on Sunday afternoon and continued into the early hours of Monday, prompting caution across the city. The Met Office has not issued a formal weather warning for thunderstorms, but conditions remain unstable.

Keep ReadingShow less
National Trust sets vision to heal
nature and engage more Asians

Lisa Nandy, Steve Reed, René Olivieri and Hilary McGrady at a National Trust event marking its 130th anniversary

National Trust sets vision to heal nature and engage more Asians

THE National Trust, which is seeking to broaden its appeal to British Asians, is marking its 130th anniversary with a renewed commitment to restoring nature and widening access under a 10-year strategy.

Its director-general, Hilary McGrady, also aims to inspire more people to get involved in caring for the country’s natural resources.

Keep ReadingShow less
 7/7 bombings

The King said the public should draw on the 'extraordinary courage and compassion' shown in response to the attacks. (Photo credit: X/@RoyalFamily)

Starmer and King Charles pay tribute on 20th anniversary of 7/7 bombings

PRIME MINISTER Keir Starmer and King Charles on Monday paid tribute to the unity shown in the aftermath of the 7 July bombings in London, as the country marked 20 years since the attacks.

On 7 July 2005, four Islamist extremists carried out suicide bombings at Aldgate Station, Edgware Road, King's Cross and Tavistock Square. The attacks killed 52 people and injured hundreds more.

Keep ReadingShow less