Finance Minister Ishaq Dar on Saturday addressing a post-budget press conference in Islamabad said after the successful all-out efforts of the Shehbaz-led government Pakistan is out of economic vulnerability and heading towards stability.
The finance czar at the outset of the presser said that the purpose of the post-budget presser is to remove anomalies, adding after the presentation of the budget, the Federal Board of Revenue (FBR) formed two committees that work till the approval of the budget.
“Both committees will start working from Monday,” said Mr Ishaq.
Budget FY24 not traditional
He also emphasized that the Fiscal Year 2024 budget was unconventional, stressing the need to modify existing strategies in order to attain the macroeconomic indicators achieved in 2017.
The ultimate goal, he stated, was to extricate the country from its predicament in a positive manner.
Confidence was expressed by the Finance Minister regarding the achievement of the targeted 3.5% GDP growth in the upcoming fiscal year, referencing the endorsement of this growth projection by an international financial institution.
He further highlighted that economic growth would play a pivotal role in combating inflation and unemployment. He also mentioned that one of the national aspirations was to join the G20 group of nations.
Food secure country
During the conference, the Finance Minister underscored the significance of the agriculture sector in Pakistan’s economy, adding this sector has the potential to generate rapid revenue and dividends.
Furthermore, he announced an increase in the volume of agricultural loans from Rs1800 billion to Rs2250 billion, with an allocation of Rs30 billion earmarked for the installation of 50,000 agricultural tube wells.
Dar, acknowledging the importance of facilitating farmers, stated that by providing them with necessary support, the country could achieve food security. The conference shed light on the critical role of the agriculture sector in driving economic growth and ensuring the nation’s well-being.
Special IT zone
Highlighting perks of untapped industry, Dar said Information Technology and IT-enabled service providers will be allowed to import software and hardware equal to one percent of their exports without any tax.
He went on to say the limit of these imports will be $50,000 dollars annually. He said it will be ensured to automated exemption certificates for the exporters of IT and IT services.
He expressed confidence that the IT sector will prove to be an engine of growth in the coming years.
He noted that freelancers are facing difficulties while submitting monthly sales tax returns and these have been exempted from sales tax registration and returns for annual exports worth 24,000 dollars in order to facilitate the business environment.
Bins default speculations
Responding to a question regarding bankruptcy rumors, FinMin Dar reassured that Pakistan is out of default risk and will not face default.
Taking a jibe, he added those who are fomenting default rumors should be ashamed as they are solely responsible for current economic woes.
No taxes
Ishaq Dar said no new taxation measures have been taken in the new budget. He said the government has no intention to increase the rate of petroleum development levy. He also clarified that sales tax has not been levied on the packaged milk. He said the sales tax on import of edible oil has not been abolished. He said that the recent reduction in the prices of edible oil is the result of international trends.
The Finance Minister said the government has allocated 35 billion rupees for in budget for provision of targeted subsidy on essential items, including ghee and flour through Utility Stores. He said the budget of BISP has massively been enhanced to 450 billion rupees to support segments of society.
