Pakistan Prime Minister Shehbaz Sharif has announced a 10% “Super Tax” in large -scale industry in an effort to consolidate income and support the poor in the country amid increasing inflation, Fajar reported on June 24.
These sectors include cement, steel, sugar, oil and gas, fertilizer, LNG terminal, textile, banking, cars, and cigarettes.
In a speech to the nation, Sharif said that the coalition government made a “brave” decision to protect the country from “serious danger”.
Trading on the Pakistani Stock Exchange (PSX) fell more than 2000 minutes after the announcement of Mr. PM.
Pakistani authorities have so far raised fuel prices, electricity tariffs, taxes and have launched savings steps to meet the lender requirements.
Funds from the IMF will help prevent the potential for default, and open the way for more assistance from other multilateral institutions and friendly countries. Pakistan needs at least $ 41 billion in the next 12 months to pay debts and fund imports.
Pakistani foreign exchange reserves have dropped below $ 10 billion, enough to cover less than two months of imports.
The headline inflation has accelerated the highest level in more than two years in May, while the currency dropped by about 17% this year.
Pakistan’s plan to cut his deficit by cutting expenses may not be enough to convince international monetary funds to continue their loan programs, said Citigroup Inc. economists. Earlier this month.
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