New levies of Rs215 billion were enacted as a peace offering to the International Monetary Fund.
Dar proposes an 85% decrease in spending, or Rs85b, to reduce the budget deficit.

Finance Minister Ishaq Dar on Saturday announced large budgetary adjustments in the next fiscal year budget of Rs300 billion. These adjustments include the most recent fiscal tightening measures sought by the International Monetary Fund (IMF).
The finance minister made the announcement while the National Assembly was wrapping up its deliberation on the budget for fiscal year 2023-24. These include eliminating the $100,000 asset whitening plan and raising taxes on the middle class.
In his presentation to the National Assembly, Dar revealed some information but remained tight-lipped about a slew of additional tax measures the government has decided to implement in order to restart the $6.5 billion program.
An rise in the petroleum levy rate to Rs60 per liter is among the IMF’s demands, and the news signals that the government has approved most of them. The Benazir Income Support Programme (BISP) saw an increase in its stipends as a result as well. This has resulted in a rise from Rs450 billion, the original proposed budget for BISP, to Rs466 billion.
The finance minister reported to parliament that Pakistan and the IMF had engaged in intensive negotiations over the course of the previous three days in a final effort to wrap up the outstanding review.
Dar recommended a net reduction in spending of Rs85 billion and an increase in revenue of Rs215 billion when he unveiled the Rs14.6 trillion budget on June 9. A sum equal to Rs20 billion has been added to the total budget.
Dar estimated that this would increase overall spending to Rs14.480 trillion and result in a revised revenue collection target of Rs9.415 trillion. This would need collecting at least Rs2.215 trillion more from the economy. Our budget deficit will be much reduced as a result of these reforms, he promised.
He asserted, “We have ensured that the new tax will not affect the poor,” and announced an increase in the petrol duty from Rs50 to Rs60, with future increases capped at the new level.
To address the current account imbalance, one of the IMF’s primary concerns in deciding whether or not to release the money, he also announced the relaxation of import restrictions enacted in December.
On the eve of the Global Financing Summit in Paris, Prime Minister Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva, and the two discussed the country’s economic situation. The 2019 agreement with the IMF’s Extended Fund Facility will run out on June 30. This is less than a week away.