ISLAMABAD: The government has maintained that the economy is moving in the right direction after speedy recovery from the impact of the coronavirus pandemic, due to the government’s timely decisions and the importance it has given to the construction sector.
Official sources said that despite Covid-19 pandemic, the government tried to keep moving the wheel of the economy by providing timely stimulus package and the Prime Minister’s special package for the construction sector, after giving it the status of an industry, and its implementation was a priority.
This was the only quick way to provide employment opportunities to the daily wagers and protect them from economic ramification of the pandemic.
The construction activities are now picking up in the country and the distribution of houses constructed by Naya Pakistan Housing Authority has started among the widows, labourers, and special persons, the official added.
The incentives were announced for the construction sector in order to increase employment opportunities with the main incentives as amnesty scheme on all new investments and no question would be asked, fixed tax scheme and if investment/construction is for the Naya Pakistan Housing Scheme 90 percent of the profit will be exempted from tax.
Subsidy for Naya Pakistan Housing Scheme was increased to Rs33 billion as well as the federal government is finalising with the provinces to reduce the sales tax on the construction industry, and persons selling their own house have been exempted from the capital gain tax on sale of their house/s.
Additionally, they said large scale manufacturing has surpassed its pre-Covid level of production in January fiscal year 2021, witnessing 9.1 percent growth year-on-year, and production of tractors and their sales increased by 52.9 percent and 52.6 percent respectively, during July-February 2020-21.
The Consumer Price Index (CPI) inflation decelerated to 5.7 percent year-on-year in January 2021 after touching a high of over 14 percent last year, and the primary balance posted a surplus of Rs416 billion in the first half of fiscal year 2021 as compared with Rs153 billion last year.
Market capitalisation earned Rs363 billion and settled at Rs8,398 billion on 29th January 2021.
During Jul-Feb fiscal year 2021, remittances rose to $18.7 billion ($15.1 billion last year), posting a growth of 24.1 percent.
There was decline in trade, current account and fiscal deficit in the current fiscal year as opposed to a year back, and Pakistan’s score on the ease of doing business index improved from 136 to 108, and the economy recovered rapidly than projected by international institutions.
The Pak rupee has recently gained strength against the US dollar.
Copyright Business Recorder, 2021