Prime Minister Imran Khan, has been in the National Assembly for a good 3.5 years now and a lot of what he had promised has somewhat been delivered. He has also promised that he will relieve the public of the ongoing inflation. The inflation rate has gone up after the budget for 2021-2022. The situation has worsened due to the devaluation of the Rupee. Will he be able to keep his promise amidst the IMF loan demands? Will he be successful in keeping his promise of ‘Naya Pakistan’? Are we ever going to be free of IMF? These are the questions that come into every citizen’s mind. Let’s take a look at some of the promises PM Imran Khan has made.
A mini-budget has been presented to give relief to the overburdened economy. It is yet to be presented to the federal cabinet. This will help Pakistan in getting approval for more loans.
Five Prior Actions for the mini-budget
Five prior actions have been set by IMF for the loan approval of $1 billion in January 2022. The actions include withdrawal of sales tax exemptions through mini-budget and approval of SBP amendment bill from the parliament. Petroleum products should be increased by Rs. 4 per liter, Covid-19 expenditure report and details of the vaccination supplying companies owners are also included in these actions.
The government has decided to reduce spending by Rs. 200 billion in the public sector. There will be a decrease in Rs. 50 billion government expenditure. The tax exemption will help the government to earn about Rs. 350 billion.
Trade with Uzbekistan and Iran
Pakistan has started trade with Uzbekistan by sending mangoes. Pakistan also wishes to import LNG from Iran, but due to sanctions, the deals cannot be done. So, there is a chance of a barter agreement between the two countries. Due to the ongoing Afghan Crisis, Pakistan has relieved them of the customs duties.
We are hopeful that the promises are kept in line with the prevailing political atmosphere. We hope that this mini-budget might give us relief and a break from the inflation that has caused so much uproar. Let’s sit and watch the Sun of 2022 rise.