August 13, 2022

Pakistan ‘rescued from bankruptcy’, finance minister says

Finance Minister Miftah Ismail speaks during a press conference in Islamabad on June 23, 2022. — Geo News
  • “We saved the country[…] by increasing oil prices,” says Miftah.
  • The Minister of Finance will close the FY23 budget tomorrow with his closing speech in NA.
  • Said that the government brings economic stability, which the PTI abolished when in power.

ISLAMABAD: Finance Minister Miftah Ismail said on Thursday that Pakistan had been “rescued from bankruptcy” by announcing a series of new measures which will be included in the budget for the financial year 2022-23.

“We saved the country from bankruptcy by raising the prices of petroleum products and organizing a night dialogue with the Fund’s mission,” he said at a press conference accompanied by the Minister of Information, Marriyum Aurangzeb.

The finance minister said the PTI-led government had left the economy on the brink of default and that too “to stay in power”, saying he had never seen such a “touch-and- go” over his decades. – long career.

Agreement with the IMF on the closed budget

Ismail said the agreement with the International Monetary Fund (IMF) on fiscal measures for the next fiscal year 2022-23 has been reached.

He revealed that he will close the federal budget for the next fiscal year 2022-23 tomorrow with his closing speech in the National Assembly.

Calling the budget proposals “historic,” Miftah said indirect taxes were not imposed on the consumption of goods on which countries earn more tax. He blamed the previous government led by Imran Khan for burdening the masses by imposing several taxes on consumption.

“Imran Khan and company. drives Pakistan towards the four largest budget deficits in history,” he said, adding that the difference between spending and taxes was the highest in the country’s history during the tenure of the PTI.

The finance minister said the coalition government has imposed taxes on the wealthy this time, adding that another supertax of 1% will be imposed on people earning more than 150 million rupees, 2% on income over 200 million rupees, 3% on persons earning more than 250 million rupees and 4% on income over 300 million rupees for one year.

The finance minister added that in this budget, the government is focusing on shared sacrifice that will help Pakistan improve its financial situation.

Flows from China expected soon

Regarding the $2.3 billion which must be received from Chinese commercial banks, he said inflows are expected either tomorrow or at most on Monday.

In addition, he added that China has also decided to roll over its secure deposits – which were due in June-July. “I would like to thank China for this initiative even when Pakistan did not ask them to do so,” he said.

“We bring economic stability”

Miftah asked why Imran Khan, if he felt for the poor, did not provide them with cheap flour and sugar. “Why didn’t Imran Khan take concrete action when he cared about the poor?” he asked.

“We are bringing economic stability, which they abolished when they were in power,” he said, adding that it was difficult for Prime Minister Shehbaz Sharif to take these tough measures.

On taxes on the rich, the finance minister said Pakistan cannot become “self-sufficient” with fake talk.

“Self-sufficiency comes when taxes are collected from the wealthy,” he said.