ISLAMABAD : The Finance Bill 2023-24 was adopted by the National Assembly on Sunday, approving the proposed budget of Rs14.480 trillion for the next fiscal year.
In an effort to secure outstanding monies, the budget was authorised under the strict supervision of the International Monetary Fund (IMF). With a resounding majority’s backing, the administration was able to get a law through the Upper House of Parliament.
Speaker Raja Pervez Ashraf presided over the session earlier as the parliamentarians approved the money bill paragraph by clause.
Higher Petroleum Levy
Ishaq Dar, the finance minister, introduced a bill to alter the Petroleum Products (Development Surcharge) Ordinance, 1961, which gives the government the authority to decide whether to impose the tax, in accordance with an IMF (International Monetary Fund) requirement.
Due to the IMF’s intense pressure on Pakistan to enhance income collection, the government will now raise the petroleum development tax to Rs 60 per litre from the previous level of Rs 50.
Islamic Ideology Council
While this was going on, Moulana Abdul Akbar Chitrali of the JUI-F proposed a motion requesting that the Finance Bill 2023–24 be sent to the Council of Islamic Ideology for review to see whether it was in accordance with Islam.
Dar disagreed with the proposal, nevertheless, and the House also voted it down since Chitrali received no votes.
What took place in the last hours
The government passed the budget after introducing a new set of taxes that would increase revenue collection by Rs215 billion in an effort to placate the IMF.
It was made feasible, according to sources, since the IMF indicated its readiness to take into account a suggestion made by Pakistan to ease its requirements for $6 billion in external funding for the budget for the next fiscal year.
The government chose to raise taxes as declared by Dar in the National Assembly on Saturday in exchange for the government lowering the external funding requirement, and the IMF approved the plan in its answer.
Additional grants
Following a voice vote in the House, the National Assembly also authorised 30 extra requests for funds for the fiscal year 2022–23 and another 54 for grants for 2021–22.