Adviser to Prime Minister on Finance, Dr Abdul Hafeez Shaikh has assured that no new tax will be introduced in the upcoming budget 2020-21.
With budget preparations the government's top priority, Sheikh informed that the ministry has met with all stakeholders and some 200 proposals have been accepted. “In these difficult times, we are trying to make a budget which stabilizes government finances on one hand, and on the other hand not increase taxes, but reduce the rate of taxes,” he said.
“A balance will be made between financial discipline and people’s expectations,” says Sheikh, while talking to local media.
Sheikh said that prior to the coronavirus pandemic, Pakistan’s economy was stabilizing, taxes grew by over 17 percent, whereas, the government didn’t borrow from the State Bank of Pakistan (SBP) for one year.
“After coronavirus pandemic, our revenues drop, Pakistan’s GDP growth rate, which was supposed to grow by three percent has declined by 4pc, and this year it will be negative one percent,” he added.
The advisor informed that the government launched a number of programs to provide liquidity to the businesses and masses, including the Ehsaas Programme, under which some 13 million persons have received cash disbursements.
Sheikh said he said the government will fulfill the defense needs of the country as defense and security is the priority of the government.
To a question, he said there is no shortfall in power generation as 25000MW electricity is being produced whereas the country's demand is 15000 MW.
To another question, he said Pak economy would recover soon after the coronavirus pandemic is brought under control.