World News | Pak Govt Presents Supplementary Finance Bill Amid Protests by Opposition

Islamabad, Dec 30 (PTI) Finance Minister Shaukat Tarin on Thursday presented the much-awaited supplementary finance bill in the Parliament to clear the way for a USD 1 billion International Monetary Fund loan, amid protests by the Opposition parties which accused Prime Minister Imran Khan-led government of surrendering Pakistan's economic sovereignty.

Dubbed by the Opposition parties as the "mini-budget", the Finance (Supplementary) Bill 2021 proposes to impose 17 per cent tax on around 144 items and goods to raise about Rs 350 billion, according to various reports.

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The bill is necessary to ensure the sixth review of the USD 6 billion Extended Fund Facility by the IMF. Its approval before the fund's executive board planned meeting on January 12 will pave the way for the disbursement of about USD 1 billion tranche.

However, the Opposition parties denounced the bill, saying that new taxes will further burden the masses with a new wave of inflation.

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The lawmakers also criticised the move to present the State Bank of Pakistan (Amendment) Bill 2021 to give more power to the State Bank of Pakistan (SBP), which is another demand by the IMF.

"You're giving SBP's control to the IMF. Please have mercy on the people of Pakistan. Don't sell Pakistan. You allowed people to loot the country for three years," said Pakistan Muslim League-Nawaz leader Khawaja Asif.

He said that expired ordinances were being presented for extension in the House.

"Surrendering Pakistan's economic sovereignty is more dangerous than that of the surrender in 1971," he said, referring to the East Pakistan debacle when tens of thousands of Pakistani soldiers unconditionally surrendered in Dhaka to the allied forces comprising the freedom fighters of the erstwhile East Pakistan (now Bangladesh) and the Indian soldiers.

After heated debate over the mini budget and changes to empower the SBP, Speaker Asad Qaisar prorogued the session of the parliament until Friday morning.

Later, Finance Minister Tarin rejected the concerns of the Opposition parties about the money bill, saying that the move would not hurt the downtrodden people.

"There is no truth in the claim that the new measures will put additional burden on the poor,” he said, adding that now new tax was being imposed, as only tax-breaks worth Rs 343 billion were being withdrawn.

He also dispelled the notion that the so-called mini-budget will unleash a new wave of inflation, saying that of the total additional taxes, the common man will only bear a burden of Rs 2 billion.

The new taxes were under discussion for some time after the IMF refused to restore the USD 6 billion EFF loan it agreed to provide in 2019. The loan is disbursed in tranches.

The finance minister also defended the autonomy being given to the SBP, saying that a strong regulator would ultimately benefit Pakistan.

Also, the parliament extended various ordinances for a period of 120 days, a move opposed by the Opposition which said that the ordinances had already expired and it was illegal to extend them.

PML-N Spokesperson Marriyum Aurangzeb, speaking to the media outside the Parliament House, said that the Opposition will fight the oppressors who have put pressure on the pockets of common people.

"The mini-budget will cause more inflation to burden the masses,” she said, adding that the Opposition will protest against the government "inside and outside the Parliament."

Terming the bill as the “false budget”, the PML-N leader said: "The government has enslaved the people under the IMF, we will fully contest the mini-budget."

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)