Pakistan imposes 10% super tax on large-scale industries

Pakistan's economic health is not good. The government is taking various steps to tackle inflation. Prime Minister Shehbaz Sharif on Friday announced  that the coalition government plans to impose a 10% super tax on large-scale industries, and that “tough decisions” have been taken to protect the economy on budget 2022-23. Addressing the nation, after a meeting with his economic team, the Sharif said that the coalition government has taken some “tough decisions” regarding the federal budget for the next fiscal year 2022-23. “I want to brief the people about those decisions and the actual economic situation of the country,” he said, highlighting the two major reasons behind these decisions. “Our first motive is to provide relief to the masses and to reduce the burden of inflation on the people and facilitate them,” he elaborated. “Our second motive is to protect the country from going bankrupt," he said, adding that it has been devastated due to the "incompetency and corruption" of the previous Imran Khan-led government. The decisions taken now will save the country from bankruptcy, he vowed.

According to DAWN, Cement,Steel, Sugar, Oil and gFertilisers, LNG terminals, Textile, Banking, Automobile, Cigarettes, Beverages, Chemicals and Airlines to be taxed more. His speech triggered a nosedive at the Pakistan Stock Exchange, as its benchmark KSE-100 index saw a sharp 2,053 point drop before trading was halted.Imran Khan party PTI Secretary General Asad Umar on Friday excoriated the coalition government for imposing a "super tax" on large-scale industries, saying that the measure would "rattle the economy", increase unemployment and inflation, shoot up imports and push Pakistan further into economic crisis. "This is a huge blow to the growing industries," he said at a press conference in Islamabad.

Meanwhile,the Central Bank has asked its employees to work from home two days a week as the country looks to conserve fuel and ensure that it does not run out of dollars. In a Twitter message yesterday, State Bank of Pakistan told its staff to opt for virtual meetings, car pooling and cutting down on air conditioning. The Bank further said that it has also suspended the purchase of fixtures and furniture.Local media reports that Pakistan's Government has already ordered shopping malls and factories to shut early in various cities including Karachi, Lahore, Islamabad and Rawalpindi and cut the working week by a day. Pakistan's Federal Government has increased pump prices by as much as 83 per cent in less than a month as it tries to curb subsidies. However, according to Pakistan Bureau of Statistics' data, in July-May, its total petroleum import bill increased by 99 per cent.