Finance Minister Aurangzeb presents Rs18.9tr federal budget ‘in line with IMF guidelines

Finance Minister Muhammad Aurangzeb on Wednesday presented his first federal budget with a total outlay of Rs18.9 trillion, which analysts say is broadly “in line with IMF guidelines”. Pakistan’s budget for the upcoming year aims for a modest 3.6 per cent GDP growth, and sets an ambitious Rs13tr tax collection target, raising taxes on salaried classes and removing tax exemptions for the rest. Aurangzeb, during the budget presentation, said that the goal was to widen the tax base to avoid burdening existing tax payers. This year’s budget, like last year’s, is widely considered to be crafted to align with the International Monetary Fund’s (IMF) requirements to secure another bailout, this time “larger and longer”. Mohammad Sohail, chief executive of Topline Securities, told Dawn.com after the budget presentation concluded that the budget will help in fiscal consolidation and “is broadly in line with IMF guidelines”.