The government of Balochistan on Tuesday presented the provincial budget 2022-23 with an outlay of Rs612 billion and announced that no new taxes have been imposed. The theme of the budget is “fostering sustainability and inclusive growth”.
While presenting the budget, Balochistan Finance Minister Sardar Abdul Rehman Khetran said that Rs367 billion have been earmarked for non-development expenditure while Rs191.5 billion have been set aside for development expenditure. The province expects to earn revenue of Rs540 billion in 2022-23 and spend Rs612.79 billion.
The finance minister also announced 15% increase in the salaries of government employees and underlined that the provincial leadership would create 2,851 new jobs for the youth in fiscal year 2022-23.
He highlighted that Rs38 billion have been allocated for health while education expenditure will amount to Rs70 billion in 2022-23.
“The government has set aside Rs44 billion for safety and security and Rs450 million have been allocated for irrigation,” he said. “Out of Rs450 million grant announced for irrigation, Rs3.47 million will be spent on non-development schemes and Rs29 billion will be spent on development initiatives.”
Balochistan govt postpones budget announcement at the last minute
In the agriculture sector, Rs2.9 billion have been set aside to provide interest free loans to farmers for wheat procurement.
According to him, Rs2.5 billion will go towards Balochistan Pension Fund and Rs1.75 billion will be spent on Food Security Revolving Fund. In addition, Rs2.9 billion have been earmarked for provision of food subsidy.
Moreover, the provincial government will spend Rs2.5 billion for land revenue management information system and Rs1.48 billion for Gwadar Safe City Project Phase 1.
Additionally, Rs250 million have been allocated for establishment of Hub Special Economic Zone and Rs500 million for development of Ziarat town.
Delay
On Monday, the government of Balochistan postponed the budget 2022-23 announcement to Tuesday June 21 as lawmakers of the province failed to reach a consensus, reported Aaj News.
According to reports, the government was unable to finalise the budget as lawmakers demanded development schemes for their respective areas.
But the CM secretariat said the reason was that Chief Minister Mir Abdul Quddus Biznejo is busy with the Balochistan Awami Party council session.
The Punjab government presented Rs3.226 trillion provincial budget for the fiscal year 2022-23 after much delay at Aiwan-e-Iqbal instead of Punjab Assembly as the treasury and opposition benches failed to reach a consensus on convening a session.
Punjab budget presented in parallel session
Sindh Chief Minister Murad Ali Shah presented Rs1,714-billion budget for fiscal year 2022-23 and announced that no new taxes have been imposed while some previous ones have been rationalised.
Sindh unveils Rs1,714-billion budget with ‘no new taxes’
The Khyber Pakhtunkhwa government presented Rs1,332 billion budget for financial year 2022-23 with allocation of Rs1,108.9 billion for the settled districts and Rs223.1 billion for the newly merged districts comprising areas of the former Federally Administered Tribal Area (FATA).
QUETTA: Due to personal engagement of Chief Minister Abdul Quddus Bizenjo, the presentation of Balochistan budget for the fiscal year 2022-23 which was due to be presented on Monday has been deferred. A notification regarding rescheduling of the budget session has been forwarded to the acting governor.
The presentation of provincial budget has been deferred till June 21 due to Chief Minister Bizenjo’s engagement in the council session of Balochistan Awami Party (BAP).
RAWALPINDI: The business community has demanded that the double taxation and anomalies be removed from the fiscal budget 2022-23. The procedure for fair-value assessment to collect tax on deemed income from an unused property and deemed rental income is not clear.
Litigation between landlord and tenant will increase manifold and caution that since more powers were given to Inland officers, the authority may be misused and likely to increase blackmailing and corrupt practices.
Tax slabs in proportion to the electricity bill are not realistic. Addressing a post-budget session at the Rawalpindi Chamber of Commerce and Industry (RCCI) President Nadeem Rauf said that the government must introduce incentives to broaden the tax net.
The Session was chaired by President Nadeem Rauf while on this occasion group leader Sohail Altaf, vice president Talat Awan, convener of tax affairs committee Faraz Fazal, Shehzad Malik, president of small chamber Sheikh Asif, representatives of Anjuman-e-Tajiran, Sheikh Hafeez, Tariq Jadoon, Tahir Taj Bhatti, Raja Jawad, executive members, and chamber members were also present.
Faraz Fazal, Convener of the Tax Affairs Committee, gave a detailed briefing on the key provisions and changes in the Income Tax and Sales Tax sections of the Fiscal Budget 2022. Group leader and former president Sohail Altaf said that no concessions or incentives have been given to the overseas Pakistanis who send billions of dollars in remittances to Pakistan every month.
At present, the country needs dollars, he added. The fixed tax regime for small traders is a welcome step; however, there is ambiguity in some cases which needs to be removed. The finance minister in his budget speech announced that there will be no audit for the next four years, but it has not been included in the budget document. We demand that the policy regarding tax audit be clarified, he said.
In the post-budget meeting, the 0.25 per cent tax imposed on the IT sector was opposed and it was demanded that the tax exemption for IT be maintained. The establishment of ADRC for resolving tax disputes is welcome but the limit of Rs100 million should be abolished, the moot said.
Copyright Business Recorder, 2022
The federal budget of 2022-23 has been presented in a difficult and uncertain economic and political environment in the country. Foreign exchange reserves are at a very low level of just under $9 billion and fiscal policy must be contractionary to suppress aggregate demand and thereby limit the level of imports. This is reflected in the concerns of the IMF which has insisted that the federal budget be framed in such a way that a primary surplus is generated in 2022-23.
As opposed to this, the coalition government will want to ensure that a budget with high additional taxation and restraints on expenditure, especially in the form of relief at a time of high inflation, does not jeopardize its prospects in the next elections. The fundamental question is how the federal budget reconciles these competing objectives?
The first area of focus is on the targeted reduction in the size of the budget deficit to determine the extent to which it is contractionary in nature. The year 2021-22 is likely to close with a large budget deficit approaching 6.6 percent of the GDP, when the target was lower at 5.4 percent of the GDP. There is likely to be a large primary deficit of almost 1.7 percent of the GDP, as compared to the target of a small primary surplus.
The budget deficit presented to the National Assembly is targeted at 4.9 percent of the GDP for 2022-23. This implies a big reduction of 1.7 percent of the GDP in relation to the likely level in 2021-22.
Success in this big fiscal deficit reduction will lead to a primary surplus of 0.2 percent of the GDP, as asked for by the IMF. This extent of improvement in key public finance magnitudes has seldom been seen before and somewhat stretches the limits of credibility.
The key budgetary magnitudes for 2022-23 are presented in Table 1 and a comparison made with the likely outcome in 2021-22.
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Table 1
Key Budgetary Magnitudes - 2022-23
(% of GDP)
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2021-22 2022-23
(Revised Estimate) (Budget Estimate)
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Revenues 11.0 11.5
Tax Revenues 9.0 9.0
Non-Tax Revenues 2.0 2.5
Transfer to Provinces -5.2 -5.2
Net Revenue Receipts 5.8 6.3
Total Expenditure 13.3 12.2
Current Expenditure 12.5 11.1
Development Expenditure 0.8 1.1
Federal Budget Deficit -7.5 -5.9
Provincial Cash Surplus 0.9 1.0
Consolidated Budget Deficit -6.6 -4.9
Primary Surplus/Deficit -1.7 +0.2
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Source: Federal Budget Documents
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The strategy for deficit reduction is very clear from Table 1. While there appears to be no significant additional fiscal effort in FBR revenues which are projected to remain at 9 percent of the GDP, the level of non-tax revenues is expected to rise significantly by 0.5 percent of the GDP.
Evidence of proposed economy in current expenditure is clearly visible. It is to be brought down from 12.5 percent of the GDP to 11.1 percent of the GDP. This type of reduction has seldom been achieved before. A modest increase of 0.3 percent of the GDP is proposed in development expenditure in relation to the depressed level in 2021-22 of only 0.8 percent of the GDP.
The bottom line is federal budget deficit reduction of 1.7 percent of the GDP, a one-third due to higher revenue-to-GDP ratio and a two-thirds because of containment of expenditure. There is need to assess the feasibility of these targets. This is attempted below.
The lack of change in the tax-to-GDP ratio even in the presence of a number of taxation proposals is appropriate. The underlying elasticity of the tax system is likely to be hampered by efforts at restricting imports to bring down the current account deficit, which will adversely affect import- based tax revenues.
However, the 49 percent increase in non-tax revenues is bordering on the very ambitious. It is based primarily on a phenomenal increase in revenues from the petroleum levy from Rs 135 billion in 2021-22 to Rs 750 billion. This implies that from the start of the next financial year this levy will have to be brought back at a very high rate of at least 30 Rs per liter. Such a large petrol levy is likely to raise the price of motor spirit and HSD oil close to Rs 300 per liter. This could be politically infeasible as it will contribute to a quantum jump in the rate of inflation and possibly lead to widespread public protests.
The pressure on raising tax revenues and the levy on petroleum products is partly attributable to the likely slump in SBP profits by Rs 174 billion in 2022-23. This is after the shortfall of Rs 178 billion in 2021-22. The question is why has such a low level of SBP profits of Rs 300 billion been targeted for in 2021-22? Is this the consequence of the change in relationship of the central bank with its owner, the federal government, following the granting of virtually total autonomy to it?
Turning to the big economy in current expenditure, the proposed growth rate in 2022-23 is of only 2 percent. This also looks infeasible, especially when there will be pressure on operating costs due to the on-going high and rising rate of inflation.
The big proposal is to reduce subsidies by Rs 815 billion, equivalent to a massive cut of 54 percent. This is predicated largely on a big phasing out of subsidy by Rs 500 billion to WAPDA/PEPCO. Presumably, the big jump in electricity tariff by almost Rs 8 per kwh will contribute to a sizeable reduction in the circular debt. However, if power loadshedding persists due to shortage of fuel, then IPP revenues will be significantly reduced. Therefore, the Rs 500 billion reduction in subsidy may not be fully forthcoming.
There is a proposed jump of 45 percent in the size of the PSDP. However, if the big growth in non-tax revenues or/and the large cut in subsidies is not achieved, then as happened this year there will be a sizeable truncation in PSDP allocations in 2022-23.
Finally, there is the expectation of a large provincial cash surplus of Rs 800 billion in 2022-23. As of the end of May 2022, this surplus is Rs 371 billion and the assumed surplus of Rs 570 billion by the end of 2021-22 is unlikely. This raises doubts also about the very big jump next year.
Overall, the budget of 2022-23 has been formulated in a politically constrained environment while under pressure from the IMF to show a primary surplus next year. A number of problematic targets have been identified above. Given the continuing negative developments in the global economy, especially the big jump in oil and other commodity prices, we hope that the IMF will show some understanding and support Pakistan at a time when the country is in a very fragile economic situation.
Copyright Business Recorder, 2022
The writer is Professor Emeritus at BNU and former Federal Minister
LAHORE: The employees of Federal Board of Revenue (FBR) continued their strike on third consecutive day. The strike began on last Friday after the federal government ignored the proposal of a meaningful increase in the salary of FBR employees in the federal budget 2022-23, besides freezing of the performance allowance, thus setting a discriminatory example.
The FBR employees through their representatives had submitted their demands regarding de-freezing of performance allowance and demanded an executive allowance on the pattern of provincial government and several other federal government departments and threatened to observe pen down strikes. In continuation of their announcement, a strike was observed on Friday which was followed by more aggressive show of strength on Saturday. It continued even on Monday after the weekly day-off.
Tax offices were locked by staff and rallies were held across the country. Young officer of Inland Revenue service also joined the staff members. Sources have confirmed that core group of officers and officials are determined to continue their strike till their demand is met by the government.
It may be noted that the FBR employees have started their strike in the crucial month of June, as any functional logjam at this moment may compromise government’s revenue targets for the ongoing year and beyond. All major formations observed strike while locking their offices taking out rallies in major cities.
The country’s top revenue body was assigned the target of Rs 6,100 billion early this year. Estimates show that the organization is well placed to achieve this gigantic revenue target. This target, if divided over twelve months, becomes Rs500 billion per month.
Meanwhile, sources from the Large Tax Office (LTO) Lahore told this scribe that main tax compliances have already been addressed as the deadline set for depositing of sales tax is 15th of every month and the strike took off from 17th June onwards. Similarly, payments under the income tax have also been materialized and only negotiations against penalties are underway with the taxpayers. The sources said only the small field formations are carrying full-fledged strike against the demands. Otherwise, so far as major field formations are concerned, routine working is being carried out due to the importance of the month of June in terms of tax collection. Accordingly, no major revenue loss is expected due to the ongoing strike, they added.
Copyright Business Recorder, 2022
KARACHI: Debate on fiscal budget 2022-23 on Monday resumed, as the treasury and opposition members spoke more on the political issues than the next financial plan during the Sindh Assembly session.
Dua Bhutto, a female legislator of the main opposition party, PTI, accused the ruling PPP lawmakers of “removing” her shawl.
Pointing out at treasury benches, she said that “these unashamed removed my shawl and those do such acts, who don’t have their mothers and sisters”.
The assembly session consumes between Rs4 million to Rs4. 5 million but “people (legislators) use abusive language at each other,” she said adding that the ruling PPP stands no more as a party of former premier late Benazir Bhutto rather it has become a “mafia”.
MQM’s female minority lawmaker, Mangla Sharma asked the Sindh government to establish hostels for working women in big cities like Karachi to house those coming for jobs from small towns.
She also clamoured over “forced” marriages of girls from minorities, saying that “none bothered to heed on what we have been saying on the forced marriages of minority girls but now the issue has spread the other way around”.
She also discussed the cases of Nimra Kazmi and Dua Zehra, saying that they were shown over-aged in reports. She cast doubts over the reports’ authenticity.
Sindh Energy Minister Imtiaz Shaikh said that his party’s government has presented “the best” budget for the next fiscal year keeping in view the country’s economic condition. The budget projects “no new taxes”, he said adding that the people of Sindh appreciate the PPP rule.
He announced that about 1300 megawatts of electricity will start coming into the country’s system from next months. The Sindh government is also setting up a solar park to cope with energy needs in the province, he added.
PTI’s minority legislator, Sanjay Gangwani condemned the Sindh government, saying that his party’s lawmaker named Shabbir Qureshi was arrested by police who was blindfolded strolled for hours.
He also demanded of the government to introduce a law to ban the “forced” religious conversion. He said that the Sindh government failed to implement schemes announced for minorities, saying that the pre-budget session was also skipped.
GDA’s Arif Mustafa Jatoi appreciated the quality of budget books, saying that Sindh government complains every year about funds shortage from the federal government but this year there is increase of Rs40 billion.
He questioned whether the education system of Sindh is competitive to that of the entire country. Only 1200 candidates could pass the exam for teaching jobs, he said that it manifests the poor education quality of the province. He alleged that the PPP government gave jobs against merits.
Mir Tariq Talpur of the PPP claimed that the Sindh government has appointed 4700 new teachers and all of them on “merit”. He demanded of his party’s government to sanction a medical university for Mirpurkhas, besides providing a facility of the natural gas to the area residents.
Copyright Business Recorder, 2022
ISLAMABAD: Chairman of the Senate Standing Committee on Finance, Senator Saleem Mandviwalla Monday appreciated that the government has not imposed any indirect taxes on the masses in the federal budget (2022-23).
Talking to the media at the conclusion of the Senate Standing Committee on Finance meeting, Mandviwalla stated that for the first time, the committee has seen a budget without any imposition of indirect taxes. Within direct taxes, taxes have been imposed on banks, companies, and the wealthy.
He said that the relief on taxation for salaried and business individuals by increasing the threshold for taxation. This would increase the take-home salary of the lower-salaried class.
About the taxation on deemed income, he endorsed the tax on deemed income from an unutilized property above Rs25 million including luxury farmhouses and exclusive of one self-occupied house.
The government has taken the right decision to develop the open plots and check the buying and selling of files of such plots. The productive investment should be done in the open plots. There were reservations over the budgetary proposal that many housing societies are not developed or others have not obtained the requisite NOCs from the concerned departments. People have objected that the societies are not developed but the government is imposing multiple taxes on the real estate sector.
The government has committed that the taxation on deemed income would be enforced only in cases where there is possession of plots or other forms of immovable properties. The cases of immovable properties would only be taxable in cases where necessary formalities are completed after taking possession of the property, Mandviwalla added.
Copyright Business Recorder, 2022
EDITORIAL: Fuel prices have been raised for the third time, effective 16 June, in exactly three weeks — this time by 24.03 per litre petrol and 59.17 per litre high speed diesel (HSD); on 27 May and then again on 3 June petrol and HSD prices were raised by 30 rupees per litre each time.
Few economists would challenge the need to raise the prices of petroleum and products, given the significant rise in the international prices of oil: Brent (crude) was traded at 87.77 dollars per barrel in January 2022 against 74.10 dollars in December 2021.
By February 2022 prices had jumped to 97.13 dollars per barrel which prompted the then Prime Minister, Imran Khan, to announce a 10-rupee per litre reduction with the reduced rate to be applicable till end June 2022 — a populist measure designed because of the threat of a no-confidence motion facing his government, in utter disregard of the consequence of this decision on the country’s finances by the substantial rise in “unfunded” economically unfeasible subsidies.
By March Brent was being sold at 117.25 dollars per barrel, with a decline in its price in April to 104.55 dollars; however, prices rose again in May to 113.34 dollars and this month prices have risen to as high as 126.7 dollars per barrel. The difference between the subsidies projected in the relief package announced by Imran Khan were, therefore, grossly understated in subsequent months and ignored was the fact that Pakistan’s economy did not have the fiscal space to fund these subsidies — a situation exacerbated by 610 billion rupees budgeted for petroleum levy in 2021-22, an amount which was not realised.
The rupee’s erosion is ongoing at a brisk pace, with reserves dwindling to 8.9 billion dollars. This accounts for the rising rupee cost of imported petroleum and products and consequently contributes to the rise in the cost per litre for domestic consumers. Within a macroeconomic context, it needs reminding that each rupee loss vis-a-vis a dollar adds a 100 billion rupees to the budgeted markup payments and given that the budget 2022-23 took 183 as the rupee-dollar parity, which is over 20 rupees lower than the current interbank rate, the budget itself is out of synch even before it has been approved by parliament.
Three observations are in order. First, the Shehbaz Sharif-led government took oath on 19 April and instead of spacing out the fuel price rise over 9 weeks there was an inexplicable delay leading to, unadvisedly, concentrating the rise to just three weeks that accounts for severe public discontent with obvious political ramifications. Second, the Khan administration was dismissed in the early hours of 10 April (soon after midnight) and hence the “unfunded” subsidies effective 1 March 2022 should have been effective latest till 19 April when the cabinet was sworn in; however, the subsidies were allowed to continue and the budget for 2022-23 indicates that petroleum price differential cost the exchequer a whopping 250 billion rupees.
And third, and even more disturbingly, the budget 2022-23 envisages 750 billion rupees from petroleum levy — a target that presupposes a rise in consumption in spite of a massive rise in prices, and a decline in the international prices of oil to a level that would enable the government to not only begin levying the petroleum levy again (which would raise input costs making our products uncompetitive internationally) but to reach the maximum allowed limit of 30 rupees per litre. These are serious flaws in the incumbent government handling of a crisis situation that it simply cannot lay at the doorstep of the Khan administration or to the deal made with the International Monetary Fund (IMF).
Sadly, it is fairly evident that the government’s justification and the Pakistan Tehreek-e-Insaf (PTI) government’s indictment for raising rates is only partly economic but mainly political point-scoring.
In a recent statement, Prime Minister Shehbaz Sharif argued that the rise in fuel prices is due to the IMF deal; however, he and his team members need to acknowledge that the Fund’s advice is sound as, leave alone not having the fiscal space to fund subsidies, this government has presented a budget that is dependent on foreign borrowing to the tune of 36 to 37 billion dollars with 21 billion dollars earmarked for interest/repayment of past loans as and when due, 4 to 5 billion dollars to strengthen the foreign exchange reserves, and the rest for budget support.
Clearly, more austerity measures were required and higher revenue targeted by the Federal Board of Revenue (FBR) than was envisaged in the budget. This scapegoating of the IMF for our economic ills must stop because it is the proclivity of successive governments to continue to spend beyond their means is in fact the root cause of our present predicament and the dire straits that our economy is in.
Copyright Business Recorder, 2022
The worst case economic scenario has already been shared with the public: be ready for more hikes in electricity and gas rates as well as in the price of petroleum products; and in the event that the international price of fuel declines then be ready for the government to begin to rely on these low hanging fruits as a revenue source – a charge supported by the 750 billion rupees budgeted as petroleum levy for next fiscal year which, the public needs reminding, can, under existing legislation, be upped to as high as 30 rupees per litre.
The best case scenario however has not yet been openly shared though it is doing the rounds in the federal capital. Foreign inflows, at an advanced stage of negotiations, constitute roll-overs by friendly countries (China, Saudi Arabia and the United Arab Emirates) which, incidentally is also a key International Monetary Fund (IMF) condition under the ongoing 6 billion-dollar Extended Fund Facility.
Additional support from friendly countries, read loans at concessional terms as well as deferred payment on oil imports has been agreed - some contingent on the success of the IMF’s seventh review as per reports emanating from the capitals of the friendly countries (subsequent to Prime Minister Shehbaz Sharif’s visit to Saudi Arabia and a stopover in the UAE) and some maybe not subsequent to the Chief of Army Staff’s visit to China with a delegation comprising of all three armed services. Reports in the federal capital also suggest that the government is in negotiations with Qatar for deferment of gas imports payment.
The total amount of rollovers is estimated at around 8 billion dollars while additional support of the same amount has been finalized by the friendly countries at relatively easy monetary terms and conditions, relative to loans procured earlier. However, as none of the friendly countries that are being engaged by the civilian-military leadership are known to be supportive of publicly declaring the amount, timing or indeed the terms of their assistance hence the official silence that accounts for the sustained erosion in the rupee value and the dwindling foreign exchange reserves to 8.9 billion dollars.
Two observations on the state of the economy today are in order. First, in 2018 the current account deficit was 20 billion dollars, a historic high, however the prices of Pakistan’s major import item, petroleum and products, was much lower than at present.
The price of Brent crude was 71.34 dollars in 2018, dropped to 64.3 dollars in 2019, 41.96 dollars per barrel in 2020, and rose to 71.68 dollars in 2021. In February 2022 the price of Brent rose to 97.13 dollars per barrel which prompted Prime Minister Imran Khan to announce a 10-rupee per litre reduction with the reduced rate to be applicable till end June 2022 (an untargeted and unfunded subsidy). In March the Brent price per barrel rose to 117.25 dollars, declined in April to 104.55 dollars, rose again in May to 113.34 dollars and in June has risen to a 126.7 dollars per barrel.
So what are the options for the government today – options that would have to be faced by any administration, be it civilian, military, Imran Khan’s, or Shehbaz Sharif’s. There is no fiscal space to extend any subsidies, targeted or otherwise, with the projected budget deficit for the outgoing year at an unsustainable negative 7.1 percent. In addition, the budgeted expenditure and domestic resources for next year necessitate, as per finance minister Miftah Ismail, borrowing of between 36 to 37 billion dollars next year – a target that entails the success of the seventh IMF review as it would enable the government to borrow from other multilaterals/bilaterals and equity debt market at reduced (affordable) interest rates.
The austerity measures much touted by the eleven-party coalition government are at par with reducing current expenditure by the Khan administration (sale of water buffaloes/old cars and no tea/biscuits on offer by ministries to guests) given that during the Khan’s tenure current expenditure nonetheless rose from 4.3 trillion rupees in 2017-18 to 7.5 trillion rupees in 2021-22 while next fiscal year it has been further raised to a whopping 8.6 trillion rupees.
Second, the need to protect the poor and vulnerable from the global rise in oil prices with a consequent impact on the general price level has been acknowledged by most governments. Britain’s Conservative government has imposed a 25 percent windfall tax on profits of oil and gas firms – profits that Chancellor Rishi Sunak said are not because of changes to risk taking, innovation or efficiency – money that would help support the 19 billion dollars’ assistance envisaged to low income households with at least 1500 dollars support to almost 8 million Britain’s most vulnerable households.
Pakistan’s oil and gas companies, largely state owned, are facing a circular debt of over 2.6 trillion rupees and are in no position to be taxed. And instead the budget for next year envisages a fixed tax for retailers as final tax liability on income and sales tax, fully supported by the retailers but which then puts the onus on those who already pay income tax, while the tax on deemed income, poverty alleviation tax on income above 300 million rupees and capital value tax on foreign property owned by resident Pakistanis (projected to net around 75 billion rupees) are expected to be successfully challenged in the courts as in the past. The government has raised tax on banks — from 39 percent to 45 percent — however this raise may have cost implications on government and private sector borrowing.
The budget for next year however has raised Benazir Income Support Programme (BISP) allocation from 260 billion rupees in the outgoing year to 360 billion rupees next year – a 39 percent raise and envisages extending subsidies for wheat, sugar and cooking oil. So the question as to where the money is to come from can be simply answered: the government envisages over 3.2 trillion rupees in domestic borrowing (an amount at par with the annual borrowing of the previous administration — an inflationary policy) and borrow a whopping 36 to 37 billion dollars from external sources, already stated by Miftah Ismail, with only around 16 billion dollars expected from friendly countries on easy terms while the rest would be borrowed at high rates of return from commercial banks abroad, issuance of sukuk/Eurobonds etc.
The US Central Bank raised its interest rate from 1.5 to 1.75 percent, the biggest rate rise in 30 years to fight soaring prices, a decision that would fuel its imports. The question is whether Pakistani exports would benefit from the US rate rise? Pakistanis are currently struggling to cope with: (i) a 13.75 percent discount rate, expected to be further raised in the next Monetary Policy Committee meeting scheduled by for 7 July, that in turn would further raise the cost of capital to a prohibitive level dampening all economic activity with a rise in unemployment.
The rate is, on average, double that of our regional competitors’ and is designed to contain imports to reduce the burgeoning trade deficit; and (ii) the fast eroding rupee (due to dwindling foreign exchange reserves, at present no more than 1.5 months of imports) and the continuous rise in domestic inputs including electricity and transport costs. However, the projected assistance inflows, if and when realized would strengthen the rupee, as happened subsequent to the 11 to 12 billion dollars’ aid inflows from friendly countries in 2018, and with it imports including petroleum and products would become cheaper in rupee terms.
To conclude, the budget as presented in parliament on 10 June is unlikely to retain even a vague semblance of its original form and one would hope that current expenditure is slashed rather than, as has been the usual practice in the past, slashing development expenditure (which in any case appears to be overstated by 250 to 300 billion rupees), and the politically motivated revenue measures that are unlikely to be implemented with court stay orders and/or IMF opposition are abandoned in favour of structural changes that would render the tax structure fair and equitable (including needed structural changes to the appallingly run energy sector).
Copyright Business Recorder, 2022
QUETTA: The Balochistan government would unveil its balanced, relief-oriented and pro-people budget for the upcoming fiscal year, with a total outlay of more than Rs 620 billion.
The Balochistan government, led by Balochistan Awami Party (BAP), will present its budget for the fiscal year 2022-23 in the Provincial Assembly on June 20.
Provincial Finance Minister Sardar Abdul Rehman Khetran would present the budget for the year 2022-23 in the Balochistan Assembly.
The government is expected to announce over Rs 250 billion development budget under Public Sector Development Programme and the outlay of non-developmental funds for the next fiscal year 2022-23 is likely to be more than Rs 350 billion.
According to finance department sources, more than 5,000 new posts would be created in the new budget.
QCCI describes budget as ‘tough’: More allocations for highways expansion, scholarships demanded
A major chunk of budget would allocated for health, education, agriculture, food, rural development, communication, law and order, irrigation and drinking water and other sectors which will change the destiny of the people of Balochistan.
More money would be allocated for clean water schemes. Education, health, law and order are among the priorities of the government.
PESHAWAR: Annual budget for 22 public sector universities, out of 32 universities of Khyber Pakhtunkhwa has been approved for the fiscal year 2022-23 while the budget of the remaining 10 universities would also be approved by the end of the current month.
The budget has been approved in the meeting held in the Governor House, chaired by acting Governor Mushtaq Ahmad Ghani and Provincial Minister for Higher Education Kamran Bangash.
It is pertinent to mention here that due to various reasons, the budget of most public sector universities could not be approved before the beginning of next fiscal year due to which the universities had to face severe financial crisis and financial disorder.
In this regard, former Governor Khyber Pakhtunkhwa Shah Farman, on the advice of his team, for the first time in June 2021 approved the budget for the fiscal year 2021-22 for all public sector universities to end this false tradition and eliminate financial disorder. Following the same procedure this year, acting Governor Mushtaq Ahmad Ghani, issued special instructions to all public sector universities to prepare budgets and present them in their respective Senate which would be implemented.
Like last year, this year too, all the universities are being given the best guidance and instructions regarding the budget, due to which the financial discipline of the universities has improved considerably, as evidenced by the fact that most of the universities are approving the budget surplus till now.
In light of the guidelines issued this year, most of the universities have also set up various funds to avoid financial deficit and unfavorable conditions which have proved to be useful for financially stabilizing the universities.
Copyright Business Recorder, 2022
PESHAWAR: The government of Khyber Pakhtunkhwa in collaboration with Securities & Exchange Commission of Pakistan (SECP) has developed a framework for rolling out of a contributory provident fund for all new employees, said the White Paper of the provincial government on budget 2022-23.
The initiative is being considered a major step towards the sustainability of pensioner benefits and transition towards a contributory provident fund for new recruits. Under the scheme, participants will contribute 10% of basic pay towards their provident fund for the duration of their qualifying service. This will be matched 150% by the employer-in this case, the government- resulting in a total contribution of 25% in basic pay.
This is a critical step in managing the pension liability, which has ballooned to 15% of the annual budget based on actual expenditure. Unfunded pension systems are relics of the past and can no longer be sustained-one does not need to look far for examples, as the financial security of retired Pakistan Railways employees has been robbed due to the unfunded nature of its pension scheme.
The contributory pension model being introduced will have all the features prevalent in international pension systems in developed countries, as well as being tailored to local norms and requirements. Shariah compliant fund options will be made available to all recruits alongside the conventional fund option. The participants will have the flexibility of adapting the fund investment allocations based on their individual risk profile, similar to the prevailing pension models worldwide. Upon retirement, participants will be made able to choose between receiving the entire benefit as a lump sum payment or allocating some or all of the retirement benefit in a long-term annuity ranging in duration from 20 years to the reaming life of retiree.
The pension bill for FY 2022-23 of the KP government is estimated to be Rs.107 billion, including Rs.1 billion for the newly merged areas (NMAs), with the number of pensioners increasing to around 177,693. Overall, Khyber Pakhtunkhwa has a 4:1 proportion between current employees and retirees. This wage bill is projected to grow at 16.6 % in actual terms in 2020-21, while forecast growth rate for 2022-23 is 24.6%.
With this trend continuing, salaries and pensions will surpass all provincial receipts in 2027. Pension is one of the major expenditures for the provincial government, making up around a quarter of the wage bill. The significant rate of the increase comes at the cost of squeezing the development budget, and critical non-salary and service delivery expenditure. This includes initiatives such as the flagship Sehat Insaf Card Programme, infrastructure expansion, civil work, maintenance and repair of schools, sports and health facilities, provision of medicines, and social welfare projects.
To mitigate the increasing pension burden, a comprehensive pension reforms strategy has been approved by Cabinet and series of corresponding changes have been passed in existing legislation by the provincial assembly. Through these effects, the provincial government has executed short and long term measures like increase of minimum voluntary retirement age to 55 years, which has resulted in estimated annual savings of Rs.12 billion.
The provincial assembly has also approved the KP Civil Servants Pension Rules 2021 to rationalize pension beneficiaries to direct dependents and parents, while also limiting each beneficiary to obtaining only a single pension, whether self or family person. In addition, active employees will no longer be eligible to draw family pension. All these amendments have removed multiple pensioners and therefore reduced the province’s pension burden. These changes in the family pension rules and restrictions on the dual pensioners will save the government an estimated Rs.12 billion in the coming 10 years, as well as streamline the beneficiary’s hierarchy and pensioner’s v/s inflow ratio.
Copyright Business Recorder, 2022
LAHORE: The furniture industry has sought help of the Lahore Chamber of Commerce & Industry (LCCI) to get the issue of wrong treatment of furniture small shops as Tier-1 Retailers resolved.
During a meeting with the LCCI Vice President Haris Ateeq at LCCI, a delegation of furniture industry, led by the President of Pakistan Furniture Association Punjab Chapter Jafar Hussain said that furniture industry comprises workshops which employ artisans and annual labour except few entities which import and resell modular furniture to retailers on a large scale.
The delegation said the tax authorities and field officers are therefore issuing notices to Small Furniture shops/showrooms to register as Tier-1 Retailer which is unjust and not practicable for this industry.
LCCI Vice President Haris Ateeq urged the government to resolve the reservations of the furniture industry at the earliest as this sector is not only a major source of the income for the government but is also providing employment to a large number of people. He said that the Lahore Chamber of Commerce & Industry will take up this issue in the upcoming meeting of the Anomaly Committee for the Federal Budget 2022-23.
The delegation members said that furniture small retailers do not fall in definition of sub-section 43 A of section 2 of Sales Tax Act, 1990. They said that Furniture small retailers purchases furniture from unregistered manufacturers of cottage industry (5AB) so input invoices cannot be provided.
They said that those retailers who occupied even one sq feet less area than 2000 sq feet are exempted which constituted anomaly. Furniture does not fall in the category of Fast Moving Consumer Goods (FMCG).
They said that the furniture shops are meant for display of the bulky pieces of furniture and get order from the consumer rather than for retail sale. Furniture Shops/Show rooms require area more than 2000 Square feet hence an anomaly is there that the furniture shops/show rooms are considered retailers center are required to be registered as Tier-1 Retailer vide sales Tax Act, 1990 ibid and wrongly classifies as Tier-1 Retailer.
The delegation members said that the furniture shops/showrooms which are not part of national or international chain of stores nor or they located in air conditioned malls as such they should be excluded from the category of sub-section of 43-A of section 2 of Sales Tax Act, 1990.
They said that all small furniture shops/show rooms may be declared as cottage industry (5AB). They said that the condition of covered area should be removed and small furniture retailers should be brought in the category of fixed tax as proposed in the budget whereby fixed tax shall be charged.
Copyright Business Recorder, 2022
KARACHI: Chief organiser of the Karachi chapter of Pasban Democratic Party (PDP) Tariq Chandiwala has said that the Sindh budget is nothing but a jugglery of figures.
He said Karachi has been neglected badly in the budget of the province. The pace of work on the lone mega-project underway in the city, K-4, is very slow. He asked why last year Rs 73 billion was not spent on uplift projects.
Expressing dismay over the cold shoulder given yet again to Karachi, Mr Chandiwala said the mega-city that provides huge revenue to the national kitty itself is facing huge problems. Although the city plays the role of a backbone of the national economy, it is being treated unfairly.
He was of the opinion that heaps of garbage, overflowing gutters, broken roads, poor healthcare facilities, shortage of electricity, water and gas and numerous other problems in the city are a slap across the face of the government and the administration.
Infrastructure of the country’s commercial and economic hub is in a shambles and its basic civic issues stand unresolved, which puts a big question mark over the performance of the provincial and local governments, he said.
Mr Chandiwala regretted that the federal, provincial and local governments are not ready to take responsibility of the mega-city. He said the main hindrance in this regard is the PPP leadership which controls the resources of Sindh, including Karachi.
The PDP leader said the mega-city is neglected in every budget. The administrative and financial control of KMC, KWSB, KDA and Solid Waste Management Board is in the hands of Sindh government.
The politicians controlling the provincial and local governments instead of resolving issues of public are busy in power struggle. There is no system in place to resolve the problems of the mega-city.
Karachiites are always fooled in the name of local government system. If funds are allocated for progress and prosperity of other parts of the country from the revenue generated by Karachi why these same funds are not allocated for the mega-city as well.
He said allocation of only Rs 23 billion for healthcare is utterly sufficient. He was of the view that setting aside Rs 34 billion for education is unnecessary as parents don’t send their children to government schools. This budget is simply embezzled. He said giving subsidy to poor farmers is welcome but asked why tax has not been levied on feudal lords.
Copyright Business Recorder, 2022
LAHORE: With interest payment of Rs 18 billion and principal repayment of Rs 64.4 billion, Punjab debt service estimates for FY 2022-23 is Rs 82.4 billion. As per the budget document made available to the Business Recorder, Punjab’s ratio of debt service to average revenue is 4.6% for FY 2022-23 which is not high and indicates low risk. A number of indicators are used to monitor and control risks associated with the government’s debt risk indicators and act as a guideline to devise future borrowing strategies.
Highlighting risk indicators, financial experts told this scribe that refinancing/ rollover risk refers to the risk of being either unable to raise new debt to repay the portion of existing debt that is maturing or to raise such debt at a much higher cost. Debt maturing in a year, and average time to maturity (ATM) are two indicators used to measure this risk. ATM means the average time-to-retirement of the entire debt stock, they said.
They added that the interest rate risk refers to the exposure of the debt portfolio to changes in the interest rate. The proportion of fixed-rate debt, ATR, and share of debt stock exposed to interest rate re-fixing in one year are the key indicators. Fixed-rate debt is considered less risky as it is not exposed to interest rate fluctuations during its life.
On the other hand, external debt outstanding on 30 June 2022, has an average borrowing cost of 1.57% and average maturity of 8.4 years. External debt of the government is denominated mainly in US dollar (72%), followed by special drawing rights (18%), Japanese Yen (6%), and other currencies (4%).
External debt of the government comprises mainly concessional, long-term, foreign currency-denominated loans obtained from multilateral creditors such as World Bank and Asian Development Bank. These loans are borrowed by the federal government and on-lent to the Punjab government.
Copyright Business Recorder, 2022
ISLAMABAD: Hospitals have approached Finance Minister Miftah Ismail to rectify a major ‘anomaly’ in the Finance Bill 2022 by restoring the sales tax exemption to the hospitals in its original form by including “teaching hospital” within the scope of the exemption.
According to a joint representation of the hospitals to the finance minister, hospitals are grateful for the restoration of the sales tax exemption, which was deleted vide the Finance (Supplementary) Act, 2022 dated January 15, 2022.
In this connection, hospitals would like to highlight that the sales tax exemption to hospitals, which has been proposed through the Finance Bill, 2022, is slightly different from the exemption, which was available during the last tenure of your government. In order to highlight the difference, we would like to reproduce below the exemption clause, which is proposed to be inserted in 6th Schedule vide the Finance Bill, 2022: Goods excluding electricity and natural gas supplied to hospitals run by the federal or provincial governments or charitable operating hospitals of 50 beds or more or the ‘teaching hospitals’ of statutory universities of 200 or more beds.
The hospitals understand the omission of the words ‘teaching hospital’ of statutory universities of two hundred or more beds, while restoring the exemption is an anomaly.
Govt earmarks Rs12.651bn for health
The government may appreciate teaching hospital are the main pillar of generating future resource and generations of healthcare professionals to assure the country’s health and well-being for years to come. It also plays pivotal role in developing new and better ways to care for patients through outcomes-based research and the development of new technologies.
In view of the above, it is requested to kindly restore erstwhile exemption to the hospitals in its original form by including “Teaching Hospital” within the scope of exemption as available prior to Jan 15th 2022 and to also omit the words “excluding electricity and natural gas in order to restore the position as prevailed prior to July 2019, they added.
Copyright Business Recorder, 2022
ISLAMABAD: There might be hours long connectivity issues in the country next fiscal year subsequent to the shutdown of mobile phones if the government did not reduce customs duty on the fibre-optic cable and other taxes.
This was forewarned by the mobile operators to the government here on Friday during a meeting of the Senate Standing Committee on Finance which was chaired by Saleem Mandviwala to discuss the finance bill.
The mobile operators said that they would convey this scenario to the government as duty and taxes proposed in the budget for the next fiscal year on fibre-optic cable would result in connectivity issue, if these were not reduced.
They apprehended that that situation would result in the closure of mobile phone service for hours and ATM services might also face disruption as fibre-optic cables are critical for ensuring connectivity, stated the representatives of three major telecos including Jazz, Telenor, and Ufone while briefing the Senate Standing Committee on Finance here on Friday afternoon.
They stated that the customs duty on fibre-optic increased from 10 to 20 percent. There is additional customs duty of six percent and a regulatory duty of 10 percent. They demanded to reverse it at the rate of 10 percent.
Minister of State for Finance, Aisha Ghaus Pasha, and the FBR Chairman, Asim Ahmad, told the committee that the National Tariff Commission (NTC) increased the duty on the import of fibre-optic in order to promote local industry. The industry representatives also asked the government to reduce advance tax on the prepaid card from 15 to 10 percent.
The FBR high-ups informed the Senate panel that a new section has been added in the Income Tax Ordinance to provide data sharing mechanism with the NADRA to expand the tax net. Irregularities in the procedure for issuance of the audit report by the Commissioner have also been rectified.
The penalty for non-submission of income statement within the due date has been made more comprehensive.
The process of linking all major retailers with FBR’s POS system has been started. Penalties for sales tax evasion by not using the POS system and shutting down the system have also been imposed.
The FBR chairman said that at present the number of first-tier retailers in the country is around 30,000.
We strive to integrate them all into the FBR’s POS system as soon as possible. The Committee members opposed the imposition of withholding tax on overseas payments by credit/debit or prepaid cards and recommended amendments to the relevant section.
Secretary Railways, appearing before the Committee, recommended that the Railways be included in Schedule 5 for the import of locomotives, passenger cabins and spare parts on the analogy of the Aviation department. The committee members unanimously directed the officials of the ministry to sit down with the railways and resolve the issue.
The representatives of the Pharmaceutical Association apprised the committee of the difficulties faced by the sector.
They said that a tax has been imposed on the import of raw materials used in medicine which will lead to the decline of the industry. Minister of State for Finance Dr Pasha assured the officials of the association that their problems would be considered and resolved as soon as possible.
The representatives of the beverage industry argued that there should be no discriminatory taxation on any sector and stated that there were many items where more sugar was mixed to make their products.
Copyright Business Recorder, 2022
KARACHI: The Sindh Assembly on Friday began its post-budget 2022-23 debate, as treasury members lauded their government for placing no new taxes for the next fiscal year, but opposition criticised the financial plan. Syeda Marvi Rashdi, a ruling PPP’s female legislator, condemned the India’s BJP member for sacrilege against Holy Prophet (PBUH) in her speech.
Of budget, she lauded Chief Minister Sindh, Syed Murad Ali Shah for proposing no-new taxes during next financial year. She said that it is the second consecutive year that budget was presented without new taxes. She said that the budget allocates a separate pro-poor relief package of Rs26.850 billion. “This package will help the poor,” she said adding amid soaring inflation resulting from the PTI government’s deal with the IMF.
MQM’s Nasir Hussain Qureshi criticised the Sindh government for ignoring Hyderabad development and healthcare sector in budgets every year. “It seems Hyderabad is located in Japan and not on Pakistan’s map,” he said.
At Faizabad Hospital, he said, there is not a single ambulance. The Sindh government cannot see this hospital’s problems, as it lacks doctors, cardio ward, medicines etc., he said during budget speech.
“I have been raising the issue with Sindh Health Minister but it remained unnoticed,” he said.
Dr Sohrab Khan Sarki of the PPP called the fiscal budget “balanced” under the circumstances. He claimed that the healthcare facilities, which his province provides to patients, no other province offers. Waseem Qureshi of the MQM called the fiscal budget a “brainchild” of the Sindh’s bureaucracy. He said that the legislators were not given an opportunity to have a pre-budget debate in the house.
“Sindh needs more corruption free budget than tax free one,” he said and clamoured for water scarcity in Karachi.
PTI’s Bilal Ghaffar said that the budget is mere a “copy paste” exercise, which was well designed. He questioned whether the budget will benefit the poor.
He said that literacy rate in Khyber Pakhtunkhwa province is growing but what holds back Sindh to make a headway in this sector.
“We reject the imported government’s budget,” he said and added that the Sindh government has failed to meet its revenue and taxation targets.
PTI’s Adeel Ahmed demanded for membership suspension of PPP’s Munwar Wassan, Kulsoom Chandio and Riaz Sherazi from the house for misbehaving with his party’s female legislator, Dua Bhutto. He condemned the incident.
He said that the coalition federal government has increased petrol price by Rs84 per litre, triggering inflation to hit the poor. He said that the Sindh budget is not different from the federal one.
MQM’s Rashid Khilji said that the NICVD of Hyderabad lacks primary facilities for the patients. The city hospitals also has no facilities to carry out heart surgery. The fire brigade department has rundown extinguishers.
The house stands adjourned till Monday morning at 11am.
Copyright Business Recorder, 2022
LAHORE: Punjab Finance Minister Sardar Awais Leghari has said that during the preparation of the Punjab Budget 2022-23, the overall strategy was to give relief to the poor people, invest in the annual development program and ensure economic growth in the province.
He expressed these views while addressing a post-budget press conference here on Friday; he was flanked by Punjab Law Minister Malik Ahmed Khan and senior officials.
While highlighting the salient features of the Punjab Budget, Leghari said this government made a record allocation of Rs 685 billion for the Annual Development Program; “in addition to that a big relief based on subsidies was provided to the poor people who were burdened with high prices of essential commodities. The biggest relief will be given on atta (flour), which was available at a subsidised rate,” he added.
“The Chief Minister’s Rs 200 billion facility package under which a bag of flour sold to the people for Rs 650 was available for Rs 490. In addition, the Rs 142 billion concessional package, which will ensure the provision of food items to the poor and needy people at affordable rates was the result of individual efforts of the government,” he added.
“The government also focused on the development of infrastructure in Punjab; a huge investment was proposed on roads and transport. In the budget, visible allocations were made on the social sectors and the health sector will receive the biggest allocation,” he said.
According to him, the government intends to provide free medicine in government hospitals and improve its service delivery. A huge amount of money was allocated for the Universal Insurance Card, which was PML-N’s project launched during its previous government before the Pakistan Tehreek-e-Insaf government hijacked it in the form of the Insaf Card.
He pointed out that the wealthy segment of the society has no right to the facility of the health card since they can afford the healthcare from their pocket. “Hence, the government has decided to exclude this class from this scheme and subsequently the money that would be saved will be spent on the working and middle class. In this connection, a revised plan will be unveiled next week,” he added.
He observed that the development of provincial human resources was imperative and it linked with Punjab’s economic future, and hence the government had decided to invest in this vital sector.
While highlighting the importance of women’s rights, he said that the government has increased development expenditure by 40 percent for women empowerment whereas significant money was allocated for jail reforms to improve the conditions of inmates.
The finance minister said that they were revamping the solid waste management in the province, which was ruined by the previous government. “At present, there is no proper system for the disposal of waste. We will introduce a self-sustainable system that will keep Punjab clean permanently for which they have made a significant allocation,” he added.
“The Punjab government is introducing an integrated solid waste management system to provide a cleaner environment in the province, under which the services of private companies will be sought for cleaning the entire Punjab from villages to cities. The cost of which will be met by the local governments,” he added.
According to him, one of the major challenges facing the country at present is food shortage. To meet this challenge, the government was ensuring an increase in agricultural production. Farmers will be provided facilities according to the capacity of their land to ensure the cultivation of profitable crops. Innovative schemes for providing an adequate amount of water to crops were being introduced along with research in the field of irrigation related to agriculture.
He told the media that the government was committed to increasing the salaries and pensions of government employees by 15 percent from July 1; this will safeguard the middle class against inflationary conditions.
“On the technology side, the government plans to invest in artificial intelligence to exploit its potential; the youth will be trained with this latest technology, which will enable them to earn a livelihood while the government will benefit from remittance,” he added.
To a question, Leghari said that they will make up most efforts to get Punjab’s share of the Net Hydel Profit; “if the Khyber Pakhtunkhwa can get their share then why not Punjab. We are not responsible for the previous government if they compromised Punjab’s share,” he added.
On the occasion, Punjab Law Minister Malik Ahmed Khan said that three years of the previous government has ruined Punjab; “no one has paid attention to cleanliness or repair of inter-district roads. It was the worst form of governance that the province ever saw,” he added.
Copyright Business Recorder, 2022
ISLAMABAD: A dissident of Pakistan Tehreek-e-Insaf (PTI) Noor Alam Khan on Friday demanded the government to present the “unfair deal” signed with the International Monetary Fund (IMF) – either by the previous PTI or the incumbent coalition governments – before the parliament.
Speaking on a point of order in the National Assembly, he said that the agreement signed with the IMF, which triggered hyperinflation in the country, must be tabled in the parliament so that the people would know who is the culprit.
He was of the view that the present wave of inflation had affected the life of the masses due to the unrealistic deal signed by either the PTI or the incumbent regime.
The Grand Democratic Alliance (GDA) – the lone opposition party in the National Assembly – lambasted the government for the unprecedented fuel price surge, and said the regime which came into power with a pledge to give relief to the masses, is bent upon snatching the bread and butter from the people.
Saira Bano of the GDA said that the never-ending fuel price hike by the experienced lot of the rulers had badly affected the life of the common man, particularly, the underprivileged segments of society.
Referring to protests by auto-rickshaw drivers in Nawabshah, she said that they burnt down their auto-rickshaws in protest against the continued POL price hike, adding these rickshaws were their sole source of income.
However, while participating in the budget debate, the MPs from the treasury had nothing except heaping praise on the government, and expressed confidence that the coalition government would soon be able to improve the fragile economy soon.
Shahnaz Saleem Malik of the Pakistan Muslim League-Nawaz (PML-N) termed the next fiscal plan balanced and people-friendly, saying the coalition government would steer the country out of the economic crisis.
She said that the previous government of the Pakistan Tehreek-e-Insaf (PTI) was responsible for the sky-rocketing inflation due to its wrong economic policies and agreements signed with the IMF.
She said that the coalition government had taken sufficient measures by providing relief and incentives to the farming community to promote the agriculture sector, which was considered the backbone of the national economy.
She appreciated the government for increasing the pay and pension of the government and retired employees as it would help lessen their financial problems to a great extent.
Chaudhry Ashraf of the PML-N said that although the country was passing through a critical time, but pinned high hopes on the government that it would effectively tackle all the confronted challenges with collective wisdom.
He asked for paying special attention to the development of the agriculture sector on a strong footing and introducing innovative ways of cultivation, besides reducing the input cost and ensuring the appropriate rate of agri-produces to growers.
He called for providing special incentives to growers for the installation of renewable energy generation plants for tube-wells and hybrid tractors to bring down the cost of inputs making agricultural produces more competitive.
He highlighted the importance of establishing industrial units for manufacturing hybrid batteries used in tractors and the installation of solar panels that would help reduce the cost of inputs and save energy.
Copyright Business Recorder, 2022
