President Alvi Signed Finance Bill. How to Manage Finances in 2023

Pakistan’s President has signed the Finance (Supplementary) Bill, also known as the mini-budget, to fulfill International Monetary Fund (IMF) conditions for an economic bailout to avoid the risk of default. With most of the tax measures already implemented, the IMF had asked the government to raise an additional Rs 170 billion in tax revenue. The remaining tax measures will come into effect after the President’s approval. Pakistan hopes to sign a staff-level agreement with the IMF this week, which will unlock funding from other lenders and a $1.2bn bailout.

The finance bill proposed several tax measures, including increasing the Goods and Services Tax (GST) from 17% to 25% on certain luxury goods, raising excise duty on cement and carbonated drinks, and introducing a new excise tax on non-aerated drinks like juices. An increase in excise duty on air tickets was also proposed. With these measures’ implementation, Pakistan hopes to unlock funding from bilateral and multilateral lenders to tackle its worsening economic crisis.

Managing finances can be a daunting task, especially with the dire situation our economy finds itself in. In times like this, managing finances is crucial. And with modern methods, keeping track of your spending, savings, and investments has become much easier. Here are some modern methods to manage your finances effectively:

  1. Personal Finance Apps: Numerous personal finance apps can help you manage your money, budget, and investments. These apps can be downloaded on your smartphone and provide various features, such as tracking expenses, creating budgets, and setting financial goals. Some popular apps include Mint, PocketGuard, and YNAB (You Need A Budget).
  2. Online financial education: Financial education is crucial for managing personal finances effectively. Fortunately, there are many online resources available to learn about personal finance. Some popular resources include Investopedia, NerdWallet, and The Balance.
  3. Robo-advisors: Robo-advisors are digital investment managers that provide automated investment recommendations based on individual financial goals and risk tolerance. These services can also help rebalance portfolios and monitor performance. Some popular robo-advisors include Betterment, Wealthfront, and M1 Finance.
  4. Automated Savings: Automating your savings can help you build a solid financial foundation. Many banks and financial institutions offer automatic savings plans, where you can set up regular transfers from your checking account to your savings account. This ensures that you save a portion of your income without thinking about it.
  5. Online Investment Platforms: Investing your money is crucial to managing your finances. Online investment platforms, such as Betterment, Robinhood, and Wealthfront, provide a convenient way to invest in stocks, bonds, and other securities. These platforms offer low fees and easy-to-use interfaces, making it easier for beginners to get started with investing.
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