FPCCI hails federal budget as 'populist one'

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday termed the proposed federal budget 2018-19 'a populist one' saying a range of social welfare projects have been earmarked for the fiscal year. However, the export sector representatives deplored that the very sector has been totally ignored by the center with giving no reasonable incentives in this fiscal budget.
Giving immediate reaction over the proposed budget at Federation House, the President FPCCI Ghazanfar Bilour welcomed the government's financial plan saying considerable schemes have been earmarked for the agriculture sector development and social welfare of the people. "We would come up with our final stance after reading in details the finance bill on Saturday (today)." he said.
He also hailed the federal government's move to resolve long-standing water crises of Karachi with new scheme of sea water desalination plant. In his budget speech, the new finance minister Miftah Ismail said the plant will be built by the private sector and will produce 50 million gallons of water a day. For this purpose, the Federal government will bridge the viability gap in partnership with private sector, he added.
Irfan Ahmed Sarwana Vice President FPCCI said the proposed reduction on the rate of cash withdrawal from 0.6 to 0.4 on a permanent basis from non-filers is good step as this rate is being charged nowhere in the world except Pakistan. He said majority of the points of FPCCI's proposal sent to the federal government, have been addressed in the budged.
Exemplifying, he said that audit by FBR Commissioners have been restricted to once in three years. Fawad Ejaz Khan an FPCCI member said the export sector has totally been ignored with giving no incentives in this fiscal budget. "It's a death warrant to the export sector," he deplored. He stressed need for export-led growth in future because increase in export can only help to stabilize our foreign reserves and to stabilize Pak rupee.
Quoting the finance minister, Fawad said that refund claims of exporters currently pending with FBR will be cleared in a phased manner over the next 12 months starting 1st July 2018. After July first, 2018 all new refund claims will be paid as per the time stipulated in law and regulations on monthly basis and there will be no delay. He said the federal government has time and again assured the traders to resolve the refund issues for the last three years, but to no avail.
On this occasion, Dr Mirza Ikhtiar Baig said that for poverty elevation and to improve standard of living of poor men, it is imperative to achieve 7 percent GDP consecutively for next five to seven years, he called budget, election populist budget and expressed his disappointment of small allocation of Rs. 57 billion for education & Rs. 17 billion for health in the budget, but appreciated long term incentives to investors to attract new investments.