Pakistan economic crisis: Finance Minister Ishaq Dar gets trolled for saying ‘Allah responsible for country's prosperity’
Business TodayJan 28, 2023
The Facts
On Friday, Pakistan's National Assembly — the lower house of its parliament — adjourned without passing a crucial tax bill to unlock $1.1B in financial aid from the International Monetary Fund (IMF). The session will continue on Monday evening.
The legislation, tabled by the government and presented to parliament on Wednesday, seeks to generate 170B rupees ($643M) by raising the general sales tax from 17% to 18%. It also follows moves earlier this week that saw the government raise the price of gas and fuel.
The Spin
Narrative A
The government's erratic policies have reinforced the country's structural economic problems. The country is struggling with high inflation and balance-of-payments crises, last summer's devastating floods, and a recent surge in terror attacks. Now, the government is looking for a bailout on the backs of its citizens while those responsible remain unscathed.
Narrative B
Despite the severity of the challenges, the government's mini-budget is enough to unlock the crucial IMF loan tranche and help Pakistan's economy bounce back. While the bill will raise taxes and costs for some people, the government is doing its best to prepare a proposal and secure the necessary funds to keep the nation from collapsing.