PTI govt to provide relief, improve tax receipts

ADB, World Bank expected to provide $2-3b in assistance

LAHORE: The upcoming federal budget would have three top priorities which included provision of relief to the common man, reduction in non-developmental expenditure and improvement in tax collection, said Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh on Saturday.

Speaking to business community at the Punjab Governor House, the PM adviser said after agreement on the International Monetary Fund (IMF) loan package, the World Bank and the Asian Development Bank (ADB) would also provide loans to Pakistan at low mark-up. Both banks were expected to give $2-3 billion, which would further improve the national economy, he added.

The meeting discussed in detail the problems being faced by the business community as well as ways and means to jack up the country’s exports and overall economy. The businessmen presented budget proposals about their respective sectors.

When the Pakistan Tehreek-e-Insaf (PTI) came to power, Shaikh said, the country’s economic situation was not encouraging and promising, which left no other option but to take tough decisions such as increase in gas and electricity tariffs. The recent programme with the IMF, he added, was also one of the difficult decisions taken to steer the country out of the economic quagmire.

Shaikh pointed out that long-term policies were being reviewed in order to stabilise Pakistan economically, adding that today’s difficult time and decisions would bring prosperity for the people and ensure country’s progress in future.

Despite all odds, he said, the government had been able to slash the trade deficit, reduce pressure on foreign exchange reserves, improve governance and initiate the Ehsas programme to help poor segments of society. A huge amount of Rs216 billion was being earmarked to give subsidy to the electricity consumers using less than 300 units per month, he added.

Speaking on the occasion, Punjab Governor Chaudhry Muhammad Sarwar assured the business community of honouring all the promises made by the PTI government. He said the government and business community were on the same page regarding development and progress of the country.

The PTI was the first government that was focusing on long-term policies instead of taking short-term policy measures to provide temporary relief to the masses, the governor remarked.

Moreover, Adviser to Prime Minister on Commerce Abdul Razak Dawood said investment and trade promotion was the pivot of the PTI government’s policies, and the Pak-China Business Forum would not only help enhance trade activities but would also improve linkages between business communities of both countries. He said the government was taking steps to promote the ease of doing business and in that connection, the Duty and Tax Remission for Export (DTRE) scheme was being simplified further.

Minister of State for Revenue Hammad Azhar emphasised that broadening of the tax base was the need of the hour to tackle prevailing economic challenges, adding that about 57% of the tax revenue of the federal government was going to provinces.

Published in The Express Tribune, June 2^nd, 2019.

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