Pakistan Passes Tax-Heavy Finance Bill for IMF Talks

Pakistan's parliament passed a tax-heavy finance bill aimed at securing a new IMF bailout to prevent a debt default for an economy with slow growth. The bill, endorsed by the ruling alliance, includes a 40% increase in tax revenue targets for the upcoming fiscal year. This move comes amidst discussions with the IMF for a loan ranging from $6 to $8 billion. The budget involves significant hikes in direct and indirect taxes, along with increased non-tax revenues, drawing criticism from opposition parties for its potential inflationary impact. Pakistan aims to reduce its fiscal deficit and faces warnings of inflation due to limited progress in tax base reforms.