Pakistan Parliament passes $42.75 billion federal budget

Pakistan's Parliament on Friday gave its nod to a Rs(P) 7.022 trillion federal budget for the fiscal 2019-20, as the ruling party and its coalition partners comfortably defeated the opposition's move to block the passage of the Finance Bill. The budget was presented in the National Assembly, the lower house, on June 11, followed by heated debate over it that continued for several days.

It focuses on fiscal consolidation, revenue mobilization, austerity measures and protection to the vulnerable segments of society. The opposition had declared the bill as "anti-people" and announced using all powers to foil the official bid to get the mandatory approval of lawmakers. However, the government mustered enough support in the House to get it passed as the Finance Bill 2019-20.

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The treasury benches rejected almost all the amendments to the finance bill moved by the opposition members after there was a discussion on them by both sides, while some amendments moved by Minister for Finance and Revenue Hammad Azhar were adopted. The government also foiled a bid by the opposition to block the presentation of the bill for final voting with a 175-146 vote. The finance bill now needs Presidential approval to become effective from July 1 when the country's new financial year will begin.

The budget bill will now be sent to President Arif Alvi for approval to make it come into force starting July 1, 2019. Pakistan's Minister of State for Revenue Hammad Azhar told the house that Pakistan's trade deficit has dropped by four billion U.S. dollars to 22 billion U.S. dollars during the outgoing fiscal year with some special measures mainly by decreasing imports. The minister vowed to bring a seven billion-U.S. dollar reduction in the country's current account deficit next year by improving revenue and slashing expenses. On the government's revenue, Azhar said that the government has set a target of 5.82 trillion rupees out of which 5.56 trillion will be collected through different taxes.

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