ISLAMABAD: Pakistan's National Assembly on Thursday passed a supplementary finance bill and a legislation on the autonomy of the central bank with majority vote amid protest by opposition parties, meeting the International Monetary Fund's prerequisites for the revival of a $6 billion loan package.
The government tabled the bills in the lower house of parliament last month to impose a uniform 17 percent general sales tax, withdraw tax exemptions on a number of items, and grant autonomy to the State Bank of Pakistan.
The passage of the two bills was to ensure that Pakistan's sixth review for the IMF's Extended Fund Facility would get clearance from the international financial institution's executive board.
The IMF was originally scheduled to review Pakistan's progress on January 12 in its board meeting to release a $1 billion tranche. However, it postponed the process until the end of the month after a delay in the passage of the bills.
Pakistan's finance chief Shaukat Tarin said during his speech on the floor of the house on Thursday it was "painful" for the government to undertake economic reforms amid the COVID-19 pandemic, soaring international commodity prices and crisis in neighboring Afghanistan while urging the opposition to endorse the bills.
“We were forced to go to the IMF,” he said. “There was no escape from the IMF.”
Listing the government's economic achievements, he said the revenues were registering a 35 percent growth while foreign remittances and exports would each reach $31 billion by the end of the current fiscal year.
"We'll have to fix the structural problems of the taxation system," he continued, adding the IMF was pushing Pakistan to levy a uniform rate of general sales tax across the country.
Tarin noted the legislation would help document the economy and increase the government's revenue.
"Everyone wants to escape the documentation [of the economy] since their incomes will be taxed after that," he said, as he dismissed the opposition's claim that the legislation would bring an "inflationary storm" in the country.
The minister said Rs280 billion out of a total of Rs350 billion of new taxes were refundable and the government would only be collecting Rs70 billion by imposing additional taxes.
The finance chief informed the house that only Rs3.5 trillion out of Rs20 trillion of retail sales were documented, adding there was always an outcry when the government tried to document that money.
He said that taxes on milk, laptops, food and bakery items were withdrawn to facilitate the public.
About the central bank's autonomy, Tarin dismissed the opposition's concerns that the legislation would undermine the government's control over the bank.
The minister said the government would appoint the bank's board of directors and have "full power" over it.
Earlier, the opposition parties tried to introduce amendments in the bills, though they were all rejected by the government.
Members of the opposition parties chanted slogans against the proposed legislations and displayed anti-government placards.
"The friends of IMF are traitors," they said while chanting slogans.
Pakistan passes IMF-backed supplementary finance bill amid opposition protest
https://arab.news/6bgud
Pakistan passes IMF-backed supplementary finance bill amid opposition protest
- The passage of mid-year budget along with a bill on State Bank autonomy will help revive a $6 billion IMF loan program
- Pakistan's finance chief says the government was forced to go to the international lender for loan since it had no alternative
Pakistan seeks wider access to Canadian market as both sides want deeper agricultural cooperation
- Islamabad urges faster certification for canola and halal products in a bid to expand agricultural exports
- Canada pledges collaboration on pest management, invites Pakistan to the Canada Crops Convention
ISLAMABAD: Pakistan on Wednesday pressed for improved access to Canadian agricultural markets and faster certification procedures for key exports as Islamabad looks to modernize its climate-strained farm sector and resolve long-standing barriers to trade, according to an official statement.
The push comes as Pakistan, a largely agricultural economy, faces mounting challenges from erratic weather patterns, including floods, droughts and heatwaves, which have hurt crop yields and raised food security concerns. Islamabad has increasingly sought foreign partnerships and training to upgrade farm technology, while pursuing export-oriented growth to diversify markets for mangoes, rice, kinnow, dates and halal meat.
Federal Minister for National Food Security Rana Tanveer Hussain and Canadian High Commissioner Tarik Ali Khan met to discuss “strengthening bilateral collaboration in agriculture, enhancing market access for key commodities, and advancing ongoing phytosanitary and technical cooperation,” according to the statement.
“Minister Rana Tanveer Hussain stressed the importance of resolving market access challenges to ensure uninterrupted trade in priority commodities, particularly canola, which constitutes Pakistan’s major agricultural import from Canada," it continued. "He highlighted that Pakistan seeks robust and timely certification and registration processes to facilitate predictable canola imports."
"The Minister emphasized that Pakistan is eager to strengthen its halal export footprint in Canada and sought CFIA’s [Canadian Food Inspection Agency’s] support in accelerating certification procedures for halal gelatin, casings, and value-added poultry," it added.
High Commissioner Khan acknowledged Pakistan’s concerns, the statement said, and assured Hussain of Ottawa’s readiness to deepen technical collaboration.
He also briefed the minister on Canada’s pest management systems and grain supply chain controls, adding that his country looked forward to facilitating Pakistan’s plant protection team during an upcoming systems-verification visit.
Khan also invited Pakistani officials to the Canada Crops Convention in April 2026 and confirmed participation in the Pakistan Edible Oil Conference, reaffirming that “Canada views Pakistan as a priority partner in the region.”
Hussain proposed forming a joint working group to maintain momentum on technical discussions and regulatory issues as both officials agreed to strengthen agricultural cooperation.
