Karachi: Chairman of National Business Group Pakistan (NBGP) President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance Mian Zahid Hussain said that budget is balanced overall. Attention has been given to every sector except industrial sector. Cost reduction of industrial sector has not been addressed, so export and manufacturing sectors will not be able to achieve target, he said. “Agriculture, SMEs, IT, solar and many other sectors will get boost due to budget measures,” he added. He said that increasing minimum wages, salaries, pensions and tax exemptions for businesswomen and youth are laudable. In contrast, further hike in tax rates on non-filers is needed.

Talking to business community, he said that incentives to several important sectors to develop economy are appreciable as they will give economy clear and correct direction.

He said that Prime Minister Shehbaz Sharif said that budget has been made keeping in mind recommendations of IMF, so it is expected that things will move forward positively from IMF.

Tax revenue target has been increased by 30 percent to 9,200 billion rupees, which will be difficult to achieve by burdening existing taxpayers. There is scope for tax collection of two thousand billion rupees.

Non-tax revenue has been estimated at three trillion rupees. Current budget has deficit of about seven thousand billion rupees. After deducting provincial share of Rs 5,276 billion and interest payment of Rs 7,300 billion, everything will be fine and borrowing will be necessary to meet budget deficit

He noted that difference between official and non-official dollar rates has to be reduced. Otherwise, it is impossible to achieve target of remittances.

He said that running country without IMF is impossible without loss prevention in electricity and gas sectors, privatisation programme and import substitution. At same time, talk of Plan B and C makes little sense.

Published in The Daily National Courier, June, 12 2023

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