PHOTO: Hashim Jawan Bakht
“The outstanding dues, which amount to around Rs130 billion, have been stuck with Islamabad for years,” Jawan Bakht said in a post-budget press conference on Tuesday.
"We had tax reconciliation with the Federal Board of Revenue and we got some money, but Punjab province would be in a better position to expand its ADP, if we get the entire amount," he added.
Nevertheless, Punjab government is looking to spend money on different infrastructure projects by promoting public-private partnership (PPP). “We have given a tax concession for next five years on all PPP initiatives and currently projects of more than Rs165 billion are in the pipeline," he said and added that the schemes pertained to road infrastructure.
For Hashim, the ongoing fiscal year was the worst ever for the Punjab government due to Covid-19, but at the same time he said that the government had presented a progressive budget, which too had never been done ever in the province's history.
“Our priority was to revive our economy and we have to revive it so we will create job opportunities for people. This is the primary reason why we focus on the construction sector, since it is the most important sector for quick revival of the economy,” the minister said.
“We have given Rs56 billion tax relief to different businesses, despite difficult conditions due to a shortfall of Rs240 billion in revenue targets of the ongoing and upcoming fiscal years,“ he said, adding, "Some people were alleging that we are under International Monitory Fund’s pressure but we gave relief to small businesses." He said reducing the tax rates and broadening the tax base was the government's aim and it would now work on this.
Jawan Bakht said Punjab had achieved its wheat target. “Despite locust attack we have achieved our wheat harvesting target of 4.5 million tonnes. We are not dependent on other countries despite the locust attack and there is no issue of food security for Punjab, since the province is the food basket for the whole country,” he said.
He said Punjab is the biggest industrial and agricultural province; the Covid-19 pandemic has hit its large scale manufacturing along with the services and agriculture sectors. “We will try to provide liquidity to small and medium enterprisers through different measures with the help of banks," he added.
Talking about Lahore Orange Line Metro Train, the country’s first light rail project, the provincial finance minister said this is a Rs300 billion scheme, which did not make any sense for a country like Pakistan. “How much can we subsidise this venture as without subsidy its fare will be Rs250 per trip,” he said, adding, “This project needs Rs900 billion annually, half to provide subsidy on fare and half to pay the interest on the loan taken for it."
The minister said the provincial government had allocated a cumulative amount of Rs106 billion under various heads for measures against coronavirus. He said world economies were contracting as the virus had put very adverse impact on the social fabric and economic development across the globe.
Published in The Express Tribune, June 17th, 2020.
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