Rs170bn mini budget to be taken to parliament for approval

The bill worth over Rs170 billion is set to be introduced in parliament, for which separate sessions of the National Assembly and Senate have been called.

A session of the lower house has been summoned tomorrow for the purpose.

A scheduled press conference by Finance Minister Ishaq Dar to brief the media on the IMF program and proposed tax measures, was cancelled at the last moment.

Among other things, the finance bill proposes increasing GST on certain items from 16% to 17%.

Even before any increase in taxes, cigarettes were reported to have become expensive in the market. The price of a pack of various brands of cigarettes hiked by Rs20 to Rs30.

Tax will also be levied on beverages, air tickets and bank transactions for non-filers. Duty on luxury goods has also been proposed.

The cabinet also approved the decisions of the Economic Coordination Committee (ECC) for increasing gas and electricity prices, and a plan to manage circular debt.

Prime Minister Sharif already approved the recommendations of a committee earlier set up to suggest austerity measures in government offices.

Finance Minister Ishaq Dar briefed the cabinet meeting about his meeting with President Arif Alvi in which the latter asked the minister to get the Finance Bill approved from parliament instead of implementing it through an ordinance.

He also briefed the meeting on the economic situation and took the PM into confidence on the affairs to be settled with the IMF, as well as the mini budget.

Cabinet waives off electricity bills for flood-affected areas

The federal cabinet also approved a waiver of electricity bills for people in the flood-affected areas of Sindh, Balochistan and South Punjab.

The meeting approved Rs10.34 billion subsidy for consumers of the flood-hit areas for August and September 2022.

Only consumers utilizing up to 300 units of electricity would be able to avail the facility.