President Dr Arif Alvi approved on Saturday the Finance (Supplementary) Bill 2021, generally known as the 'mini-budget', which was passed by the National Assembly (NA) on January 13.
The bill was signed into law under article 75 of the Constitution.
The Finance (Supplementary) Bill has been seen as a key condition to revive the $6-billion Extended Fund Facility (EFF) of the International Monetary Fund (IMF).
The mid-year budget will end exemptions on sales tax as part of fiscal tightening and law to grant its central bank greater autonomy.
'Mini-budget': National Assembly passes Finance (Supplementary) Bill 2021
Authorities expect ending the tax exemptions will help raise Rs343 billion.
While presenting the bill in the NA earlier this week, Finance Minister Shaukat Tarin said that tax under the mini-budget was mostly applicable to luxury imported products like cellphones and cars, adding that exemptions for daily-use items like bakery products, formula milk, and solar panels would stay.
‘Mini-budget’, SBP bill: MNAs expected to cast their vote today
The parliament, meanwhile, also passed a separate law to give the central bank greater autonomy, including independent powers to control price stability, monetary policy decisions, and a guaranteed tenure for its governor.
The two bills are key conditions for the revival of the IMF programme. The finance ministry earlier this week said that the IMF board will meet towards the end of this month for the sixth review of Pakistan's EFF.
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