Pakistan’s President, Asif Ali Zardari, has officially endorsed the Finance Bill 2024, despite facing criticism from opposition parties. The Finance Bill, presented to the National Assembly by Finance Minister Muhammad Aurangzeb on June 12 and subsequently passed on June 28, incorporates substantial tax burdens that have drawn widespread condemnation.
The Pakistan Tehreek-e-Insaf (PTI) and the Pakistan Peoples Party, under the leadership of incarcerated former premier Imran Khan, have vehemently opposed the Budget, denouncing it as inflationary and detrimental to the public. They have also alleged heavy influence from the International Monetary Fund (IMF) and have underscored the potential negative impact on key economic sectors, such as industry and agriculture.
President Zardari’s formal approval of the finance bill on Sunday, in line with Article 75 of the Constitution, marks a significant development. According to this article, the President lacks the authority to reject or object to the finance bill.
The opposition’s primary critique revolves around the tax measures designed to generate additional revenue and fulfill IMF conditions. Indeed, discussions with the IMF for a loan ranging from $6 billion to USD 8 billion have been ongoing, as confirmed by Prime Minister Shehbaz, who also asserted the Budget’s collaboration with the IMF.
Notable amendments to the Finance Bill encompass the imposition of new tax measures on builders and developers, the introduction of a capital value tax on property in Islamabad, and an increase in the Petroleum Development Levy (PDL) on diesel and petrol. The budget outlines gross revenue receipts estimated at Pakistani Rs 17,815 billion, with tax revenues projected at Pakistani Rs 12,970 billion and non-tax revenue at Pakistani Rs 4,845 billion. Moreover, the budget delineates federal receipt allocation to the provinces, with a growth target of 3.6% for the approaching fiscal year.
The approval of the tax-intensive Finance Bill has elicited considerable debate and discord within Pakistan’s political sphere. While the Budget aims to address economic challenges and comply with IMF conditions, it has encountered robust opposition from influential political figures and their respective parties.
The repercussions of the tax measures and financial policies articulated in the Budget will invariably exert a significant impact on Pakistan’s economy and its populace. The endorsement of the Finance Bill carries substantial implications for the country’s financial landscape, and its implementation ramifications will be vigilantly scrutinized by diverse stakeholders.