In the National Assembly (NA) on Tuesday, Finance Minister Muhammad Aurangzeb stated that the fiscal budget for the following year will concentrate on policies that increase government revenue and cut wasteful spending in order to lower the fiscal deficit.
On June 12, Aurangzeb delivered the budget to the National Assembly. Following his presentation, the lower chamber of parliament deliberated over the budget for the next fiscal year.
PPP, which had first abstained from the budgetary debate, announced today that it will support the financial measure in spite of some concerns.
PPP leader Naveed Qamar stated at a post-meeting press conference that the party agreed that not supporting the budget would “amount to dismantling the government and paving the way for instability in the country.”
According to Qamar, the administration now has figures and this budget will be approved.
In addition to the PPP, members of the ruling coalition partner MQM-P also voiced worry about the government’s decision to tax the middle class and salaried workforce, claiming that the budget will increase inflation in the nation.
A number of treasury members also questioned FM Aurangzeb’s qualifications, labelling him as a “imported” individual and charging him with being ignorant of the actual problems and ground realities that the public are facing.
PTI leader Asad Qaiser met with Maulana Fazlur Rehman, the head of Jamiat Ulema-i-Islam — Fazl (JUI-F) on Sunday. Together, they criticized the proposed federal budget for the upcoming fiscal year, referring to it as “anti-people” and a “IMF budget.”
Aurangzeb cited Prime Minister Shehbaz Sharif as declaring that the policy of austerity and simplicity would continue in the upcoming fiscal year, capping off today’s NA budget discussion.
He said he would lead a group that would make proposals, including closing down specific departments or merging them and giving more authority to the provinces, according to state-run Radio Pakistan.
He declared that future pension reforms would result in lower pension spending.
The finance minister emphasized that the national reforms program served as the cornerstone for the fiscal budget for the following year, which was designed to help the nation escape a challenging economic predicament.
In addition to raising the tax-to-GDP ratio to 13%, Aurangzeb indicated that the administration was firmly committed to the plan and has started putting it into action. Other reforms include those pertaining to state-owned companies (SOEs), public-private partnerships, and the energy sector.
He promised that everyone involved will be included in the execution of the strategy.
Aurangzeb stated that the Federal Board of Revenue’s (FBR) digitization effort has intensified and that legislation to alter boards in the electricity sector is being filed in parliament.
He declared that the PIA’s privatization process has advanced.
The FM highlighted further aspects of the homegrown reforms plan, mentioning actions for the health and education sectors, targeted social protection, and a broad-based equitable taxation system.
Thanking the Senate for its proposals, which will be included in the budget for the following year, Aurangzeb said that the administration has chosen to incorporate the ideas while taking the general public’s interest into consideration.
He listed these as giving the non-filers a chance for a private hearing prior to the implementation of the SIM blockage and travel ban measures.
He declared that the current lower rates for hybrid-electric vehicles will not change, nor would the exclusion of stationery products from taxation.
He indicated that zero rating for local suppliers would not be eliminated under the Export Facilitation Scheme 2021 program.
The finance minister stated that while ideas like exempting charitable hospitals from sales tax would be carefully considered, the sectors of agriculture, education, and health were given priority.
He added that Rs7 billion had been set out in the budget for the government to expedite FBR reforms.
Aurangzeb announced that retailers who failed to register with the FBR Tajir Dost Scheme will face consequences starting on July 1.
The finance minister discussed the defense budget and stated that Pakistan’s military services have made tremendous sacrifices for the country’s defense and are prepared to face both external and domestic challenges.
He affirmed that Pakistan’s top priority was maintaining national security and promised to equip the military forces with the resources they require.
For employees of several departments, including the National Assembly, Senate, PID, Radio Pakistan, PTV, and APP, who worked at Parliament House during the budget session, the finance minister announced honoraria equal to three months’ basic pay.
