The Budget has been a disappointment. It is an accountant's budget, which talks about where the money is to be raised through tax measures to meet the appetite for spending. The disappointing part of the budget is there were no strategic policy steps to boost industrialisation, exports and job creation. Very little money has been set aside in the budget for fast crumbling infrastructure, according to a press release issued by Pakistan Bedwear Exporters Association (PBEA) on Monday.
Increase of GST on textiles to 5 per cent is regressive especially in view of massive swing in prices of yarn. Reduction of GST from 17 per cent to 16 per cent, elimination of regulatory duty and increasing the minimum threshold for taxable income looking at inflation are positive steps.
The GDP achieved last year was 2.4 per cent against a target of 4.5 per cent in the outgoing financial year according to the Economic survey of Pakistan, the national budget deficit is expected to remain at 5.7 per cent or Rs l.02 trillion, federal budget deficit is worse, which is estimated at 6.3 per cent or Rs 1.14 trillion.
Unless serious strategic policy decisions arc taken to boost exports, rapidly industrialise the country and create jobs and ensure secure working environment and make power, gas available to run industries, the nation will lose out. In sum, consider the following scenario: an alarming fiscal deficit, an astronomical current account deficit, unrest and security problems in the country, massive power shortages and rising oil prices, high inflation, a significant crisis of confidence and FDI numbers falling, and rampant corruption in governance and politics.-PR
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