Finance Adviser for The Prime Minister, Abdul Hafeez Sheikh has denied the rumors of the budget being dictated by the International Monetary Fund (IMF). It was widely in the discussion that the financial budget for 2019-20 would be under influence by the IMF since Pakistan decided to agree on a bailout package worth 6 billion USD with the fund.
Hafeez stated that “Either we can abandon the pursuit or redouble efforts, we have redoubled the efforts”. He further explained the situation that the current economic conditions demand sacrifice and the budget is crafted as per the desperate situation. People should not consider the rumors and should understand that there no other option available other than to expand the revenue collection by the revenue board.
Chairman FBR Shabbar Zaidi also commented on the matter that, “We have tried to correct past mistakes and it’s an allegation that budget is made on some institution’s dictation”. While commenting on the Asset Declaration Scheme he notified that there would be no extension in the expiry of the scheme.
Earlier this announcement, former Finance Minister Asad Umer had also explained several times that tight budget is the need of the situation. As per him, IMF had imposed many adverse conditions for the budget to avail the bail-out package but Pakistani representatives negotiated with them for more favorable terms.
The business community seems to be upset with the tax appropriations of the government in the latest budget. Former president of Karachi Chamber of Commerce (KCCI) Siraj Kasim Teli said in a statement that, “In the next three to four months, we will be in a big situation, as the government has tried to tax everybody and also overburdened the existing taxpayers”
In general, the layman is unable to understand the policy changes in the financial budget and its impact. There is usually a pessimistic opinion of the general public regarding the budget announcement every year regardless of the actual impact of the policy and the background of that decision.