PESHAWAR: The federal cabinet will consider a number of important issues today, including the mini-budget and the autonomy of the State Bank of Pakistan to fulfill the conditions of the International Monitory Fund (IMF) for another loan package.
Information Minister Fawad Chaudhry said that the mini budget would be passed by the cabinet today after which it will be presented in the parliament tomorrow [Wednesday].
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The mini-budget has been prepared on at the direction of IMF. The Finance Ministry spokesman Muzammil Aslam told the media that the mini-budget is likely to be presented at the cabinet meeting on Tuesday, however, he claimed that the it will not lead to fresh wave of inflation. According to Muzammil, the abolition of tax exemption on mobile phones, imported clothes and shoes would have no effect on the common man.
The federal government has proposed a six-month ban on imports of luxury vehicles and a 17 per cent tax increase on cosmetics and other luxury items in the mini budget. An amendment bill is being considered to end the tax exemption of Rs350 billion on the demand of IMF.
The media reports said that after the passage of mini-budget, prices of petroleum products would go up by Rs15 to 20 per liter and the baby milk which is available for Rs3, 000 will be available for Rs3, 500. The price of powdered milk will increase by Rs60 to Rs100 per packet, media reports said.
It is expected that after the mini budget, the price of frozen meat and branded desi ghee would increase by up to Rs200 per kg. Raw materials for home appliances, LED bulbs and various plants will also see price-hike. And with the abolition of tax exemption on electric vehicles, their value will also increase by Rs4 to 7 lakh. The price of chicken is likely to go up as poultry feed is going to see hike after the government abolish exemption. Tax exemptions on education, medicine, foreign diplomatic missions and charities are likely to be maintained.