ISLAMABAD: Finance Minister Ishaq Dar has said that the government, in a bid to convert Pakistan into Asian Tiger, focused on exports promotion. This is why in the federal budget 2016-17, the government has declared five big export sectors as zero tax rated. Moreover, release of all the sales tax or income tax refunds claims received until April 30, 2016 will be disposed-of by August this year.
Addressing the post-budget press conference here, the finance minister said that government was keen to increase exports volume to the maximum level because exports’ share in developed countries was normally 15 percent of the GDP. He further claimed that the economic policies followed by the government would transform Pakistan into the Asian Tiger.
He said that creation of job opportunities, alleviation of poverty, increasing the economic growth and improving the lifestyle of the common man was main focus of the federal government’s policies as well as the federal budget. “Moreover, special heed is being paid towards the curtailing inflation to sing digit, maintaining financial management and administrative measures for national economic uplift” he observed.
He hoped that new measures announced in the budget would give necessary boost to agriculture to extend its contribution in GDP growth. He said that DAP prices had been reduced by three hundred rupee per bag with effect from next month. Similarly, 7% duty on pesticides withdrawn while off-peak rate of electricity for agricultural tube wells lowered from 8.85 rupee a unit to 5.35 rupee a unit.
The finance minister pointed out that all out efforts had been made in the budget not to save filers from additional burden of taxes, however, taxes on some of the items would affect people.
He said that tax on mobile phone sets had been increased to compensate tax leakages because of the fact that costlier phones were mis-declared as low category phones. He announced that SROs carrying impacts of Rs 400 billion had been withdrawn.
He said that the biggest ever Rs 1675 billion overall development programme in country’s history had been announced and it would further stimulate economy and create jobs. Allocations for BISP increased to bring more families under its coverage.
He said that Zarb-e-Azb was moving towards its final round and its successful conclusion would help attract foreign direct investment so defence allocations increase despite strict financial constraints. Country suffered huge losses of 118 billion dollars during war on terror. The minister that said increase in non-development expenditure contained to seven percent, but federal government employees would get 10% adhoc relief after merger of two previous adhoc reliefs and as a result, they would get about 13 to 13.5% increase in their salaries.
He said that the government would be bearing expenditure of Rs 57 billion on account of increase in salaries and pension. Of this, an expenditure of Rs 12 billion would be spent on welfare of low grade employees including up-gradation of their scales and increase in allowances meant for them.
The finance minister announced that the government decided to keep prices of POL products unchanged for the current month to provide relief to people during Ramzan. Out of five POL products, sales tax on four is now less than 17%.
He further observed that the government was according priority to the construction of Western Route of China-Pakistan Economic Corridor as per understanding with political leadership. He said Lahore-Karachi Motorway was missing link in prime minister’s vision of motorways for the country. As no one was ready to undertake this project of 300 billion rupee on BOT basis, this has been included in CPEC.
