Pakistanis squeezed by inflation face more pain from tax hikes

Investing.com | Dec 13, 2021 at 2:01 PM
  • When Pakistan’s annual inflation rate hit 11.5% in November, the statistics office put a number on a phenomenon that was already painfully clear to the poor and the salaried middle-class voters who carried Prime Minister Imran Khan to power three years ago.
  • Now the government is preparing to double down on the pain with a belt-tightening budget of tax hikes and spending cuts required to release a $1 billion tranche of International Monetary Fund bailout cash.
  • The impact has also been felt in the business sector through high energy prices and raw materials costs as well as the recent sharp rise in interest rates.