Govt tables ‘mini-budget’, SBP amendment bill in NA | The Express Tribune

Finance Minister Shaukat Tarin on Thursday introduced the Finance (Supplementary) Bill 2021 and State Bank of Pakistan (Amendment) Bill 2021 in the National Assembly amid opposition protest.

Earlier today, Federal Minister for Information Fawad Chaudhry said that the federal cabinet had given approval for the finance bill, or the mini-budget.

 

The lower house of parliament adopted various resolutions extending various ordinances for a period of 120 days. These ordinances include; “the Federal Government Properties Management Authority Ordinance, 2021”, “the Elections (Third Amendment) Ordinance, 2021”, “the Public Properties (Removal of Encroachment) Ordinance, 2021”, “the Pakistan Council of Research in Water Resources (Amendment) Ordinance, 2021”, “the Pakistan Food Security Flow and Information Ordinance, 2021” and “the Tax Laws (Third Amendment) Ordinance, 2021”.

The house adopted the resolutions with a majority vote amid uproar from the opposition benches.

On Tuesday, the cabinet had approved the SBP amendment bill to give absolute autonomy to the central bank in a bid to qualify for the $1 billion loan but had deferred the approval of Rs360 billion mini-budget for the second time in a week.

The bill has been approved to bring amendments in the SBP Act of 1956 under one of the conditions of the International Monetary Fund (IMF) and on the desire of the SBP governor.

Many of the clauses that the federal government had earlier termed “unconstitutional” are still part of the revised bill after the IMF refused to budge from its position.

However, the government again deferred the approval of the highly inflationary Rs360 billion mini-budget amid strong criticism against the Ministry of Finance due to increasing inflation.

Also read: Cabinet okays SBP bill, defers mini-budget

As the today’s NA session began with Speaker Asad Qaiser in chair, the opposition members tore the copies of the agenda and surrounded his dais.

An intense protest against the bills escalated into fisticuffs between opposition lawmaker Shagufta Jamani and PTI MNA Ghazala Saifi.

PPP’s leader Syed Naveed Qamar while raising objections over extending the ordinance said after its expiry the move was against the rules of parliament.

Speaking on the floor of the house, PML-N leader Khawaja Asif while referring to SBP bill accused the PTI-led government of compromising on country’s economic sovereignty.

While urging house not to approve the bill, Asif said the country’s central bank has been “handed over to IMF”.

Responding to the PML-N leader, Planning Minister Asad Umar said it did not suit those who invited Indian Premier Narendra Modi to their house to speak about country’s national security.

‘Mini-budget will not affect common man’

Finance Minister Shaukat Tarin while addressing a press conference after the NA session said that tax exemptions of worth Rs343 billion on various sectors will be drawn under the supplementary finance bill.

He also dispelled the notion that the so-called mini-budget will unleash a new wave of inflation, saying that of the total additional taxes, common man will only bear burden of Rs2 billion.

Besides, Tarin also said many taxes on import of machinery and pharmaceutical raw material are either “refundable or adjustable”.

The SBP amendment bill, he added, is in line with the PTI government’s vision to empower the institutions of the country.