Pakistan Defense Budget: Pakistan’s army or poor people… whom will Shahbaz choose? IMF has put the toughest condition ever – pakistan crisis imf new condition for pakistan government to cut defense budget or impose more gst
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The IMF told the Pakistani delegation that if the government could not cut the defense budget, they would have to increase the GST rate on goods to 25 per cent for additional revenue. According to the news of News18, the Pakistan government will impose 25 percent GST (General Sales Tax) on dozens of consumer items to meet the conditions of the IMF as it has failed to cut defense expenditure.
Inflation is going to increase on the common man
Quoting sources, the news said that the lender has asked Pakistan to submit a repayment plan to get the next tranche of $1.2 billion. According to the news, people in Pakistan’s Finance Ministry say that the IMF has asked Pakistan to liberalize the exchange rates ‘completely’. The Pakistan Federal Board of Revenue has prepared a proposal to raise GST rates to 25 per cent against hundreds of tariff lines in a bid to garner at least Rs 7 billion in additional revenue over the next four months.
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Army will also have to cut expenditure
In order to reach a staff-level agreement with the IMF, the government of Pakistan is taking measures such as spending cuts and imposing additional taxes. In the midst of a severe economic crisis, the Pakistani army and intelligence agency ISI have been asked to cut their expenditure. If reports are to be believed, the military establishment is planning how they can cut down on their non-combat expenditure. The impoverishment is also affecting Pakistan’s anti-terrorist campaign.
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