Prime Minister Shehbaz Sharif confirmed that the federal budget for the upcoming fiscal year was prepared in collaboration with the International Monetary Fund (IMF).
The PM’s remarks came as Finance Minister Muhammad Aurangzeb announced significant amendments to the proposed finance bill for 2024-25.
The premier expressed hope for a positive response from the lender but refrained from making any premature statements.
The PM’s statement came shortly after the finance minister departed from some critical reform measures announced in his budget speech on June 12.
The government came under pressure from influential industrialists and doled out more taxpayer money to appease public sector employees working in parliament.
The entire staff of the National Assembly and the Senate would get honoraria equivalent to three basic salaries.Key changes to the original budget include the revival of zero rating (zero sales tax) on local sales of export industries and stationery items.
To balance the revenue loss from these amendments, the government has reduced allocations for the Public Sector Development Programme (PSDP) by Rs250 billion.
