The National Assembly of Pakistan today approves the federal budget for the fiscal year 2022-23. The total outlay of the budget is Rs 9.5 trillion. The Finance Bill 2022-23 is a reflection of IMF demands and will pave a way for the Shahbaz government to seal the deal with IMF.

Finance Minister Miftah Ismail presented the provisional federal budget on June 10, 2022, which was rejected by IMF. After IMF’s disapproval, the Shahbaz government took a U-turn on relief measures announced in Finance Bill 2022-23 and realigned the Finance Bill according to IMF demands. By surrendering to IMF terms, Miftah Ismail burdened poor people with more taxes. All income tax relaxation for the salaried class is withdrawn and the federal government reinstates the income tax slabs.

Finance Minister Miftah Ismail also announced that his government is increasing the petroleum levy from zero to 50 which means the government is all set to increase the prices of petroleum products.

After the approval of IMF approved Finance Bill 2022-23, another storm of inflation is on its way.