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Key proposals of the ‘mini-budget’

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As the government seeks to fulfil the prerequisites for unlocking the $1.1 billion International Monetary Fund (IMF) loan tranche, Minister for Finance and Revenue Senator Ishaq Dar has introduced the Finance (Supplementary) Bill 2023 or the “mini-budget” in the National Assembly and Senate on Wednesday.

The government last night ratified the increase in the general sales tax (GST) rate from 17% to 18% and increased the Federal Excise Duty (FED) on cigarettes in order to fetch an additional Rs115 billion out of Rs170 billion agreed to by Pakistan in line with the IMF conditions.

Through the “mini-budget”, the Pakistan Democratic Movement (PDM)-led government aims to reduce the budget deficit and broaden its tax collection net — in order to meet the conditions laid forth by the Washington-based lender.

Talking to reporters after the session on Wednesday, FinMin Dar said that he expects the bill to be passed in both houses by Monday or Tuesday as Senate Chairman Sadiq Sanjrani has “given us till Friday”.

Key proposals

1. Increase in GST on luxury items from 17% to 25%

2. Federal Excise Duty (FED) on business and first-class air tickets be increased to Rs20,000 or 50% — whichever is higher

3. 10% withholding adjustable advance income tax to be imposed on marriage halls

4. Increase in FED on cigarettes, soft and sugary drinks

5. FED on cement to be raised from Rs1.5 kg to Rs2 kg

6. Increase in GST from standard 17% to 18%

7. GST to not be imposed on essential goods — wheat, rice, milk, pulses, vegetables, fruits, fish, eggs, meat

8. BISP stipend to be increased; govt to allocate Rs400 billion for programme

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Zaidong, the ambassador, said China will fully back Pakistan’s counterterrorism operations.

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Reaffirming on Thursday that China will provide Pakistan with unwavering support in its fight against terrorism is Chinese Ambassador to Pakistan Jiang Zaidong.

In an interview that was broadcast on television, the ambassador promised to cooperate with Pakistan and said that China will protect the interests and safety of the citizens of the two friendly nations.

Zaidong underscored that efforts to undermine the two nations’ bilateral relationship would be thwarted by China’s cooperation with Pakistan.

Also, he emphasized how crucial China-Pakistan relations have become strategically given the changing nature of the world.

In highlighting the transformative impact of the China-Pakistan Economic Corridor (CPEC), the ambassador reaffirmed his nation’s commitment to seeing it through.

In addition to creating thousands of employment, he said, “the CPEC has facilitated significant advancements in power generation and transportation infrastructure with over $25 billion in direct investments and substantial infrastructure development.”

Zaidong stressed the value of sharing ideas and knowledge between Pakistan and China, acknowledging their shared security objectives.

Stressing that both countries have a common future, he envisioned their partnership having a greater social impact.

Concerning the terrorist attack on Chinese nationals [working on the Dasu dam], the ambassador expressed gratitude to the Pakistani people for their condolences and sympathy and commended the government for its prompt action.

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Mild rain in Lahore improves the weather

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Early on Friday, light rain in the province capital Lahore and its surrounding areas improved the weather.

But rain also led to power outages in several areas of Lahore, as multiple feeders of the Lahore Electric Supply Company (LESCO) blew, leaving whole sections of the city without power.

Details show that rain was observed in a number of locations throughout the city, including Model Town, Gulberg, Garden Town, Mall Road, Lakshmi Chowk, Gulshan Ravi, Jail Road, and Sanda.

However, the Met Office has forecasted an additional day of rain for the city during the next 24.

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The government will begin coordinated action against lawbreakers in the Katcha region

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On Friday, Mohsin Naqvi, the interior minister, announced that the government would begin a coordinated operation in the Katcha region to eradicate the miscreants for good.

He stated that collaborative efforts in the Katcha region will make use of contemporary technologies, including drones.

According to Mohsin Naqvi, all security agencies, including the police, should make sure that SOPs are fully implemented in order to protect Chinese nationals living in Pakistan.

He declared that any carelessness in this respect will not be accepted at all while presiding over a meeting to review the National Action Plan’s implementation at NACTA headquarters in Islamabad.

According to Naqvi, failure to follow the SOPs for the safety of foreign nationals will result in severe disciplinary action.

“We have to outfit our departments with cutting-edge technology to eradicate terrorism,” stated the interior minister. He declared that the provinces will receive all the assistance from the federation in this area.

Anti-state forces will be permanently driven out of the Katcha region, according to Naqvi. The interior minister expressed satisfaction with the anti-smuggling operations and stated that all ministries need to make sure that smugglers face stern legal action.

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