Federal Budget: Energy sector to come under renewed focus

NAVEED BUTT

ISLAMABAD: The government is likely to make enhanced investments in energy sector and increase the share of direct taxes in forthcoming budget 2012-13, it is learnt.

According to sources, the federal government is likely to give more importance to investment in energy sector, increase direct taxes in revenue collections, lower slabs of indirect taxes and increase the outlay for law and order in the budget 2012-13.

Well placed sources told Business Recorder that the government would allocate maximum funds for the construction of dams, Thar coal, Iran-Pakistan gas pipeline and establishment of LNG terminals in budget 2012-13.

In this regard, Finance Ministry is expected to allocate eight to 10 percent of the total budget to hydropower projects, including Diamer Bhasha dam, Munda dam, Gomal Zam, Satpara power projects, Kurram Tungi dam etc.

The government would also increase investment in Thar coal.

The government would also take maximum steps in budget 2012-13 to curtail sales tax from 16 to 10 percent to reduce inflationary pressure in the country.