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Salient Features

Budget Speech
Audio
 
Salient Features

 

  • Naveed Qamar says concerted efforts and strict measures are required to tackle current economic challenges.
     

  • Rs.30 billion additional loans to Agriculture sector.

 

 

  • NFC session will be convened.
     

  • Agriculture sector ignored during last 8 years, wheat support price to be re-evaluated in next season for improving agriculture sector.
     

  • Rs. 75 billion reserved for improvement in population resources.
     

  • All contractual employees up to Grade 15 being regularized.
      

  • Import duty levied on Luxury vehicles to be increased from 90 to 100 percent.
     

  • Defence budget to be tabled in National Assembly and all its components to be discussed.
     

  • The performance of Securities and Exchange Commission being further enhanced to protect investors.
     

  • Pay and Pension committee to be set up to review salaries and allowances of employees.
       

  • Rs. 34 billion allocated for Benazir Support Program, which will be later, increased to Rs. 50 billion.

 

  • Govt. to check rising cost of production, and spiraling of prices, effective measures being taken to control the problem.
     

  • 90 percent tax exemption to be given for development of industry in rural areas in first year.
     

  • Domestic and foreign investors will be encouraged to initiate new projects in Pakistan.
     

  • Reduction in expenditures of the Prime Minister’s Secretariat and National Assembly.
     

  • Low Cost Housing.
     

  • One million housing units to be built for low-income groups.

 

  • Ban imposed on import of luxury goods by govt offices.

 

  • Import duty raised from 30% to 35% on 300 luxury items.

 

  • All expenses of govt offices freezed except for salaries.

 

  • Sales tax raised to 16% from 15%

 

  • Import duty raised to 100% from 90% on luxury cars.

 

  • 30 percent cut in NAB’s budget.

 

  • Govt. to set up Textile City, Marble City and other Industrial Zones to boost national exports.

 

  • Rs. 24.3 billion to be allocated for Education sector

 

  • Rs. 37 billion allocated to improve country’s road network and highways

 

  • Lady Health Workers Program initiated in Benazir Bhutto’s tenure of 1994, will be further strengthened by hiring 100 thousand more Lady Health Workers.

 

  • New medical programs being initiated to eradicate deadly diseases, more funds will be allocated for this purpose.

 

  • 15 percent custom duty abolished on CNG

 

  • One million houses to be built for poor and low paid govt employees.

 

  • Minimum pension raised to Rs2000 from Rs300.

 

  • Conveyance allowance doubled for employees of Grade 1 to 19

 

  • Contractual employees of Grade 1 to 15 to be regularized.

 

  • Medical allowance raised from Rs425 to Rs500 for govt employees of Grade 1 to 16

 

  • Number of Supreme Court judges increased to 29 from 16

 

  • Federal govt employees' salaries raised by 20%, same increase for armed forces proposed

 

  • Pensions increased by 20%

 

  • Budget deficit target 4.7% of GDP.

 

  • Rs1000 per month to be provided to poor families

 

  • Later, Benazir Cards will also be issued to help the poor

 

  • Custom duty abolished on energy savers

 

  • EPB zone to be established in Balochistan

 

  • Profit on national savings schemes to be raised by 2%

 

  • Rs.543 billion allocated for development programs in the budget

 

  • 5 percent excise duty abolished on crop insurance scheme

 

  • Remittances coming into Pakistan after the incident of 9/11 could not be best utilized, the basic infrastructure could have been improved from this amount.

 

  • Agriculture Bank to be strengthened so that more incentives could be given to agriculture sector.

 

  • 10 percent custom duty is being abolished to improve the production of rice.

 

  • The gap between demand and supply has increased over the years and there has been no investment in the power-generation sector since 1994.

 

  • The number of Utility Stores will be increased to 6000 so that poor people could be provided with more relief.

 

  • Rs.28.4 billion allocated for Peoples Works Program.

  • National Identity Cards to be provided free of cost to people.

  • Import duty on PTA reduced to 7.5% from 15%

  • Import duty reduced from 10% to 5% on import of chemicals used in manufacturing of medicine.

  • Rs.75 billion allocated for construction of dams and for irrigation

  • Wheat support price fixed at Rs.625.

  • Demand-supply gap of electricity is 2500 MW.

  • 25% increase in FBR revenue target.

  • PSDP Rs.543 billion.

  • Exchange rate witnessed 6.4% decrease.

  • Rs.66 bn allocated for power sector.

  • Import duty raised from Rs.150 to Rs.200 per kg on betel leaf.

  • Minimum wage raised from Rs.4600 to Rs.6000

  • Benazir Income Support Programme to be launched with Rs.34 billion which will be increased to Rs.50 bn later.

  • Country’s fiscal deficit will be controlled and Foreign Exchange Reserves will be increased.

  • Efforts are being made to save electricity; duration of load shedding will be shortened, government will make sure that enough electricity is available for agriculture and industrial sectors.

  • The economic situation worsened due to previous government’s policies and past fiscal deficit.

  • Our industry is not market-driven and due to increased electricity prices the situation has seen a drastic change.

  • Sales tax abolished on fertilizers.

  • Improvement of tax mechanism on auto-industry.

  • Proposal to give relief to call centers from excessive taxes.

  • PTA duty to be fixed at 7 percent.

  • Pharmaceutical industry to be given more incentives.

  • Govt. to take measures to increase production of cotton in the country.

  • Rs.1.1 billion reserved for improvement for fish-brewing sector.

  • Pakistan will be made an investors friendly destination, and efforts will be made to strengthen the social sector for which focus will be given to housing sector.

  • More focus to be given on revenue generation, FBR performance has been satisfactory; there has been considerable increase in revenue collection.

  • 5% excise duty abolished on crops insurance.

  • 10% custom duty on import of rice seed abolished.

  • Sales Tax abolished on fertilizers.

  • Minister of Finance, Revenues, Economic Affairs and Privatization, Syed Naveed Qamar is presenting the budget at the floor of lower house.

  • The Prime Minister Syed Yousuf Raza Gilani along with other Cabinet Ministers is present in the National Assembly.

  • This budget is aimed at stabilizing the economy.

  • Demand supply gap in electricity of 2500 MW in the country.

  • Cold storage stores to be constructed to boost export.

  • DAP fertilizer subsidy increased from Rs.470 to Rs.1000.

 

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