Social Protection Cannot be Ruled Out in Budget, Pakistan-IMF Agreed Over Tax Relief

The International Monetary Fund (IMF) had viewed the Pakistan’s budget for 2022-23 and raised concerns over tax relief to the people in the budget. Budget 2022-23 presented last Friday by finance minister Miftah Ismail, where the budget gave a big relief in taxation to the middle and lower middle class while the upper class has been heavily taxed including the real estate sector. It is noted that for the IMF bailout package, new taxes are required and removing subsidies from fuel prices is the major concern of the IMF. Government raised prices of fuel and power supplies but in the budget a big relief is given to the mass population. However, the sources now said that both sides agree on social protection of the major class of Pakistan and are eager to reduce the impact of austerity measures on the poor. Since removal of subsidies from fuel prices hurt the poor so IMF is ready to work on those terms which lessen the impact of austerity on them.