Huge amount for PSDP to bring positive changes: IBP holds post-budget seminar

Speakers at a post-budget seminar organised by the Institute of Bankers Pakistan (IBP) said that the allocation of a huge amount for Public Sector Development Programme (PSDP) will bring positive changes for developing infrastructure and social sector in the country.
They said that no new tax was imposed and many relieves were announced for the public. The 15 percent increase in salaries and increase in minimum wages will bring some relief for the salaried class of the country.
Syed Ali Raza, President of National Bank of Pakistan said that the sustainable GDP growth rate has been attracting the foreign investors in the country. "Now we are one of the best growing economy in the region and now we are considering as a growing nation in the world", he added.
"We were not able to issue even a thirty-minute bond a few years back, but now we have issued 30 year bonds in the international on a very reasonable price", he noted. The bonds issued only a few weeks back were oversubscribed which was a very positive sign for Pakistan economy and its rating in the world, he said.
He noted that there are multiple requirements against limited resources and targeting inflation is very difficult in a soaring economy. Government is working to curb inflation.
Regarding allocation of Rs 520 billion for PSDP, he said that it is huge amount for public sector development, which will also attract foreign investment in the country. Aftab Ahmed Khan, former secretary finance said that Pakistan is making progress in every sector. He said that the budget shows good increase in tax revenue, however he noted that the agriculture sector is contributing less in tax revenue.
K. B. Shahid, a representative of Hatton National Bank said that the impact of the Federal Budget on the banking sector would be two-dimensional. In the context of the budgetary impact, a prominent feature is that, the income tax levy on the banking sector reached its promised floor last year. Fortunately, banks' four-year record of earning high profits did not trigger a reversal of the process of tax reduction. The other prominent feature is that the planned fiscal deficit will be larger than the 2006-07 deficit and considering the carry forward effect of that deficit, will consume a larger chunk of the monetary resources to be created by the banking sector.
Syed Masoud Naqvi, Senior Partner KPMG Taseer Hadi and Co said that strong growth has led to higher medium term growth path for last 4 to 5 years, resilience against shock and extra ordinary jerks, rise in per capita income for $503 in 2002 to $925 in 2006-07, robust consumer spending, substantial increase in private sector credit, balance between fiscal deficit and growth, balance between fiscal deficit and growth, medium term development framework, maintenance of external and domestic debt within limit etc. Ebrahim Sidat, CEO Ford Rhodes Sidat Hyder & Co and Muhammad Salim Umer, CEO of IBP also spoke on this occasion.