The finance minister confirmed that although only "minor new taxes" were introduced, the total additional taxation amounts to Rs312 billion. He further noted that the International Monetary Fund (IMF) has acknowledged Pakistan’s recent enforcement efforts.
Under the chairmanship of Syed Naveed Qamar, the National Assembly’s Standing Committee on Finance held a session where Finance Minister Muhammad Aurangzeb briefed lawmakers on the budget for the upcoming fiscal year.
Delivering a major relief forecast, Aurangzeb said that last year’s 22% interest rate has room for reduction, and this year, it is expected to fall into the single-digit range. However, the final decision on the interest rate cut will be made by the Monetary Policy Committee.
He emphasised that the groundwork for economic reforms was laid during the previous fiscal year to secure the IMF programme, and these reforms are now being implemented. The finance minister projected that this year the current account deficit would remain positive and remittances could touch $38 billion.
Discussing sector-specific relief, Aurangzeb clarified that no taxes have been imposed on fertilisers and agricultural sprays, despite a prior agreement with the IMF to do so, based on the Prime Minister’s directive to support the farming community.
The finance minister also revealed that a mortgage scheme is being launched to support the construction industry, while the privatisation programme is gaining momentum. He announced that the privatisation of Pakistan International Airlines (PIA) and the Roosevelt Hotel is scheduled for this year.
Reporter: Waqas Azeem