Pakistan is going through a very tough phase where the economic conditions are quite unfavorable. The government is facing a current account deficit and a budget deficit as well, which needs to be countered at any cost.
With the upcoming budget, the government plans to cut the costs drastically, and adopt austerity measures to attain stability in the long run. The latest loan program was given by the IMF also requires the country to adopt policies to reduce the deficits.
The future budget is likely to discourage imports and would focus to promote the export sector. Imports of things other than fundamental crude materials, plant and hardware and other capital merchandise might be either completely prohibited or subject to high obligations to debilitate their imports. Higher duties on import of cars would be implicated and public transport sector would be strengthened to save oil consumption.
In line with the government’s plan, FBR is also geared up under the fresh leadership to increase the revenue collections figures to support the economy. Progressive tax reforms are likely to be exercised to increase the tax net and equitable tax distribution on the taxpayers.
On the other hand, the export sector would be entertained to expand their potential and utilize the available resources to earn foreign exchange with increased exports. Other than the trade, several other sectors are also targeted to reach the set targets by the government. Tax on marriage halls, advance tax on the sale of the property, expensive air tickets for non-filers, increased the sales tax on unregistered industries (subject to conditions) and several other measures are likely to be implemented.
The government will also focus on the development of less developed areas of Balochistan and other tribal areas by providing improved education and health facilities. PM Imran said the government was uncommonly concentrating on the social and monetary inspire of these zones in order to improve the expectation for everyday comforts of their inhabitants and expedite it a standard with the remainder of the nation. Initiatives like ‘Ehsaas Program’ and ‘Sehat Insaf Card’ are also under process for the benefit of the people. The government is committed to introducing an excellent local government system to empower the local representatives, to utilize the available funds for the welfare of masses.