'Pro-poor budget' aims to 'strengthen, sustain economic growth': Shaukat Tarin

He said the government is going to withdraw earlier budget announcements of imposing taxes on mobile phone calls, SMS and internet data on the intervention of Prime Minister Imran Khan and the federal cabinet.

Addressing the pre-budget press conference, the minister who was flanked by other ministers and economic advisers, said the prime objective of the government is to strengthen and sustain the growth rate.

Federal Minister for Industries and Production Khusro Bakhtiar, Adviser to the Prime Minister for Commerce and Industries Abdul Razak Dawood and Special Assistant to the PM on Poverty Alleviation Dr Sania Nishtar were present on the occasion. 

"We have to earn dollars by increasing exports and add an additional tax of Rs500 billion in the next financial year," Tarin said, adding the finance minister said they will reach non-filers through electricity and gas bills.

He said big retailers have sales of Rs1,500 billion and sales tax has to be levied on all big stores. Consumers, he said, will be rewarded if they get a slip and gave examples of other countries, saying that such successful schemes have come up in Turkey.

The finance minister said that the poor in the country have not received loans and training for the last 70 years.

He said loans would be given from commercial banks to small welfare banks and, in the first phase, four million people will be targeted. The finance minister announced plans to provide employment and give Rs150,000 to small farmers while also giving lists of small farmers and the poor to banks.

Tarin told media that loans up to Rs2 million would be given to build a roof and loans to poor farmers would go up to Rs500,000, he said.

He told a questionnare that the government has no intention to introduce mini-budget. 

Tarin said the incentives given to the SMEs would also help achieve higher growth in the industry.

Regarding power sector, the finance minister said the government has jacked up subsidies to bring efficiency in the setcor, adding the DISCOs would be operated through independent boards, would be privatized.

He said line losses would be reduced and recoveries would be enhanced.

IMF and Pakistan

The finance minister said Pakistan knocks the doors of the International Monetary Fund (IMF) for help when its position is weak.

"We need 20 per cent growth in exports. Our savings rate is 15 per cent and investment rate is up to 16 per cent. If we do not have revenue, how will we achieve growth?" he questioned. 

Tarin said the Federal Board of Revenue (FBR) has been assigned a target of Rs4,700 billion in revenue collection for the current financial year. The target for the next financial year is Rs5,800 billion.     

"The government intends to broaden its tax base as well. We are in dialogue with the IMF on this issue, as we want to broaden the tax base and not impose further taxes on the taxpayer,” he said.