ISLAMABAD: On Tuesday, the federal cabinet decided to halt the approval of the Rs360 billion mini-budget. The cabinet has also decided not to present the State Bank of Pakistan Autonomy Bill.
Earlier the government wanted to take the approval for the Supplementary Finance Bill, which would apply indirect taxes of Rs360 billion, and Amendment Bill for State Bank of Pakistan from the cabinet. Both bills are required to be approved for the $1 billion loan from International Monetary Fund (IMF).
The latest setback to the government in the Khyber Pakhtunkhwa’s local body elections has compelled it to hold the approval. Members of the incumbent government had already termed the rising inflation as a reason for the party’s defeat.
The delay will now affect the forthcoming meeting between IMF and the government, scheduled for January 12. The meeting was ought to take place if the government had taken approvals by the end of this month.