Shaikh promises relief in budget

Says govt keen to support businesses during current difficult times

KARACHI: The government would continue to cooperate with businessmen to boost businesses, generate employment opportunities and promote economic development in the country, remarked Adviser to Prime Minister on Finance Abdul Hafeez Shaikh.

Chairing a meeting with representatives of the Karachi Chamber of Commerce and Industry (KCCI), the adviser assured the businessmen that the government was thoroughly considering their proposals for the upcoming budget.

“It will be a relief budget and most of the recommendations of the KCCI will be incorporated into budgetary measures,” he said.

Despite fiscal constraints, the Ministry of Finance has approved and adopted a significant number of proposals on the recommendation of the Federal Board of Revenue (FBR).

He emphasised that the government was keen to support the business community during the current difficult times and maximum relief would be provided to them in the budget. Answering a question about tax refunds, Shaikh said the finance ministry was looking to enhance refunds from Rs5 million to Rs50 million depending on the fiscal space.

On the occasion, KCCI President Agha Shahab Ahmed Khan pointed out that the FY21 budget was being prepared at a time when the country was facing an unprecedented crisis due to the Covid-19 pandemic and every business and industry had been affected.

“In these extraordinary circumstances, people of Pakistan in general and the business community in particular are looking forward to a budget which provides substantial relief for rescuing the economy from the edge of disaster,” he stressed.

Businessmen Group Chairman Siraj Kassam Teli highlighted some major macroeconomic issues during the meeting. The survival of trade and industry should be the top priority in the budget rather than enhancing revenues, he said.

He was of the view that government revenue could rise only if trade and industry survived, hence, the budget should focus on providing relief through macroeconomic measures.

He said the trade and industry, which provided the bulk of employment and revenues, did not receive much-needed relief and financial assistance. He appreciated the reduction in prices of petroleum products along with the financial assistance given to the poor segment of population through the Ehsaas programme.

Commenting on the incentive scheme for the construction industry, Teli urged the adviser to announce similar incentives for all sectors.

FBR Chairperson Nausheen Javed, who was also present in the meeting, told the KCCI team that their proposals were considered and a number of important recommendations were accepted for inclusion in the budgetary measures.

Published in The Express Tribune, June 9^th, 2020.

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