The premier stated that the economic situation wouldn't improve overnight. Shehbaz Sharif, Pakistan's Prime Minister, announced Friday a 10% "supertax" after making a deal with IMF. In large-scale industries such as cement, steel, and automobiles. This was in response to spiraling inflation and to prevent the country from going bankrupt.
After chairing a meeting of the economic team about the federal budget. Mr. Sharif announced that high net worth individuals would also be subject to a poverty alleviation tax.
So, in a video message to the nation, Mr. Sharif stated that. "Our first motive is to reduce the burden on our nation and help our people by facilitating them"
He stated that "Our second motive is to keep this country growing without making it bankrupt.” Adding that the country is already destroyed by the "incompetency, corruption" of the previous Imran Khan government.
He said that the "super tax" will apply to cement, steel, and sugar, as well as oil and gas, fertilizers, LNG terminals, and textile.
Mr. Sharif stated that the stabilization of the economy was another motive. Therefore, He said, "It’s not that I’m just asking about all this. This is the voice in my heart. Insha’Allah, we will achieve all these goals." He stated that history has shown that even in hard times, the poor are always willing to make sacrifices.
"Today is the time for the wealthy citizens to take responsibility. While their turn is to be selfless. "I have a full belief in my people that they’ll contribute to this journey," Mr. Sharif stated. He stated that institutions whose sole purpose is to collect taxes should not take from the wealthy but give to the needy.
Individuals with an annual income exceeding Rs150 million will pay a 1% tax. For Rs200 million, it will be 2%, Rs250 million, 3%, and Rs300 millions, 4%.
In addition, the government has pledged to increase tax collection from PKR 7.7 trillion to PKR 7.4 trillion for the fiscal year that begins July 1. Mr. Sharif stated that teams will create to collect taxes upon passage of the budget bill.
Prime Minister that soon we’ll be out from all the difficult situations and Pakistan will prosper. He also announced that he would assist the poor section of society. So, he explained that it would have been easy to ignore the public's crisis and be silent observers like other people.
Mr. Sharif for a "Grand National Dialog" to end the country’s current economic troubles. So, it is never too late. We must remove the walls of hatred, poverty, and unemployment. We must give birth to flowers that love and end the thorns. He stated that this is possible only through a national grand dialogue and charter for the economy. The benchmark KSE-100 index of the Pakistan Stock Exchange saw a drop of 4.81% after Sharif's announcement.
On Thursday, the premier warned that the country could face more difficulties. As it attempts to overcome the current economic crisis.
According to Mr. Sharif, his government faces a difficult task. In reviving a stalled assistance program by the International Monetary Fund. This was due to the broken promises made by the previous Imran Khan-led government to the global lender.
After Khan's government was overthrown by a no-confidence vote in April. Mr. Sharif came to power and made it his priority to revive IMF as it would open up many avenues for loans from different sources. After many meetings, hiccups and negotiations, both sides reached an agreement to restore USD 6 billion. That will provide a much-needed boost for Pakistan's economy.
However, the premier stated that the economic situation wouldn't improve overnight after making a deal with the IMF. "How a country can prosper overnight instantly after signing the agreement?" He said, "Well it seems impossible we need to work on our financial condition"
We hope that imposing this tax would bring a good change and the country would be able to establish itself. These taxes will hopefully help us in coming out from such a crisis.