Pakistan
Budget focuses to improve macroeconomic indicators: Dar
Ishaq Dar said that two committees are being constituted in the FBR to address anomalies if any in the budget.
Islamabad: Finance Minister Ishaq Dar said: “The federal budget 2023-24 is not a traditional one as it focuses on growth to improve macroeconomic indicators and create job opportunities”.
Addressing the Post-Budget news briefing in Islamabad on Saturday, he stated the budget envisages several measures for the sectors of agriculture, Small and Medium Enterprises (SMEs), Information Technology (IT) to achieve the objective of economic growth.
Finance Minister added: “The growth target of 3.5 percent set for the next fiscal year is easily achievable,” stating that International Monetary Fund (IMF) expects 3.5 percent, while Bloomberg and Fitch both project it at four percent, which means that we have set a modest and doable target.
He continued that government has taken the Public Sector Development Program (PSDP) to the historic high of Rs1150 billion and the transparent implementation of the plan will help achieve the growth target set for the next fiscal year.
Talking about macroeconomic indicators, Ishaq Dar said: “Inflation is projecting at 21 percent, Federal Bureau of Revenue (FBR) revenue collection to Gross Domestic Product (GDP) 8.7 percent, overall deficit 6.54 percent, primary balance 0.4 percent and public debt to GDP 66.5 percent”.
The finance minister stated the previous Pakistan Muslim League-Nawaz (PML-N) government had left this figure at 63 percent, which rose to 74 percent during the last PTI-led regime.
Dar also added that debt to GDP means a lot and a core indicator and we are pitching this figure at 66.5 percent, while GDP is expected at 105.8 trillion rupees.
“Government is preparing a scheme of concessional loans for agro-based SMEs and sufficient funds for this initiative have been allocated in the budget,” he said adding that we also plan to establish special zone for the IT sector.
Ishaq said no new taxation measures have been taken in the new budget. 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. Sales tax on import of edible oil has not been abolished. The recent reduction in the prices of edible oil is the result of international trends.
Moreover, the Finance Minister said: “Government has allocated Rs35 billion for in budget for provision of targeted subsidy on essential items, including ghee and flour through Utility Stores.
He said the budget of Benazir Income Support Program (BISP) has massively been enhanced to Rs450 billion to support segments of society.
Ishaq Dar added the Sharia Complaint products under National Savings will be launched from next month.
The Minister once again categorically stated that Pakistan will not default, stressing that the country has ensured payment of external liabilities in the past and will do so in future as well.
He was confident that the European countries will extend the Generalized Scheme of Preferences-Plus (GSP-Plus) statues of Pakistan. To a question, he made it clear that Pakistan has no plan to go for rescheduling of Paris Club or multilateral debt, again stating that we will make all the payments on time.
Ishaq Dar said that two committees are being constituted in the FBR to address anomalies if any in the budget.
He said these committees will take effect from Monday, assuring that due consideration will be given to the recommendations of the Senate as well as the standing committees on Finance of the parliament.