Bowing down to the tough conditions laid out by the International Monetary Fund (IMF), Prime Minister Imran Khan has summoned a meeting of the federal cabinet on Thursday (tomorrow) to finalise the mini-budget.

The meeting with PM Imran Khan in chair will be held tomorrow at 12 in the noon to approve Finance (Supplementary) Bill 2021.

Following the approval, the Finance Amendment Bill 2021 will be unveiled in the National Assembly.

The meeting will be preceded by a meeting of the PTI Parliamentary Party chaired by Prime Minister Imran Khan in which members of the Assembly will be briefed on the mini-budget.

Petroleum prices 

Due to the tough conditions of the International Monetary Fund (IMF), the prices of petroleum products likely to go up following the passage of mini-budget to be presented by the government led by Pakistan Tehreek-e-Insaf (PTI) in the National Assembly on Wednesday (tomorrow).

According to sources, the prices of power, gas and petroleum products will increase due to the mini budget that include tough conditions of the IMF, while taxes and duties on more than 1700 items will also be increased in the mini budget and taxes on all imported and luxury items will be increased.

Taxes and duties on luxury items, imported diapers, make-up items will be increased and taxes on imported and domestic vehicles will also increase.

Sources further said that the total revenue from taxes and duties will be Rs 340 billion and sales tax rate is likely to be raised to 17%, while the tax rate on various items may increase from 5 to 7%. The federal excise duty (FED) on cars likely to increase 2.5 percent and sales tax on tractors is likely to increase by 5%.

Customs duties on imported clothing, footwear and perfumes are likely to be increased, while Sales tax on locally made goods is also likely to be increased from 12% to 17%.

On Wednesday, the federal government had announced to unveil mini budget in the National Assembly.

Speaking exclusively in Dunya News program “Dunya Kamran Khan Kay Sath”, he said Federal Minister for Information and Broadcasting Fawad Chaudhry said that the mini budget will be presented in the National Assembly.

He said that the government is in talks with the IMF to secure loan, adding that the conditions of the international lender will be clear.

To a question regarding opposition’s protest, Fawad Ch said that the opposition talks like this whenever government has to present budget, adding that they must tell if they have any option other than IMF.

“The government is bound to approach the IMF due to the problems created by Asif Zardari and Nawaz Sharif,” he said.

Fawad Chaudhry went on to say that the whole world is facing inflation at the moment and the pressure of inflation is on the governments, adding that our economy is growing at 5% today, while the big companies have earned more than $1000 billion.

The minister further said that there is inflation for the salaried class but in general, the situation is not so bad, adding that defeat in election was not because of inflation but due to shortcomings in politics. He said there is pressure of global inflation on salaried class and there is no inflation for rural people, while cotton production is 44% higher.

The minister said Pakistan is much better position today than three year ago and the economy is in the right direction and the sales of tractors, motorcycles and cars have doubled. “The salaries of the salaried class should be increased.”

“Instead of returning tomorrow, former prime minister Nawaz Sharif should return to Pakistan today,” the information minister and added the whole family is put in jail if someone steals a motorcycle but Shahbaz Sharif is a guarantor of his brother, he should be put in jail tomorrow.

Regarding relations between civil-military leadership, Fawad Chaudhry said there was no change in the relationship, adding that relationships are still in the position today they were 3 years ago.