Islamabad: The federal government on Friday took a significant step towards promoting the Information Technology (IT) sector by granting it the status of Small and Medium Enterprises (SMEs).

Finance Minister Ishaq Dar, during the unveiling of the federal budget for the fiscal year 2023-24, announced various measures to support the growth of the IT industry.

To encourage the IT sector, the government has extended the income tax relief on IT imports until June 2026. Additionally, a venture capital fund of Rs5 billion will be established specifically for the IT sector, aimed at fostering innovation and entrepreneurship.

Recognizing the importance of skilled professionals in the IT field, the government has planned to provide professional training to 50,000 IT graduates, enhancing their capabilities and employability.

In a move to facilitate freelancers, who play a vital role in the digital economy, the government has exempted them from sales tax registration and returns for annual exports up to $24,000. Moreover, a simplified one-page income tax returns form will be introduced, easing the tax filing process for freelancers.

Furthermore, the government extended the concessionary tax rate of 20% for banking companies' income from additional advances to low-cost housing, agriculture, SMEs (including IT & ITeS) for an additional two years. This measure aims to boost these key sectors and promote inclusive economic growth.

In an effort to promote exports, the government plans to encourage online platforms for the export of various commodities, including agriculture products, gems, and metals. Indirect exporters will benefit from a concessionary final tax rate of 1%, further incentivizing export-oriented businesses.

Islamabad:  Good news for the government employees as the federal government on Friday okayed significant increase in their salaries for the fiscal year 2023-2024.

 The decision comes in response to rising inflation and the hardships faced by the marginalized sections of society.

According to the details, the salaries for employees in grades 1-16 increased by 35%, while those above grade 17 will receive a 30% raise. Furthermore, a 17.5% increase in pensions for the next fiscal year was also okayed.

To address the financial challenges faced by government employees, the Pay and Pension Commission recommended a 100% hike in medical and conveyance allowances, along with a 10% increase in ad hoc allowances. Finance Minister Ishaq Dar, in his budget speech, acknowledged the government's awareness of the difficulties faced by government employees and emphasized the measures being taken for their relief.

To provide further relief to the public, a targeted subsidy program of Rs25 billion has been approved. This program aims to offer essential daily-use items through Utility Stores Corporation. Furthermore, working journalists and artists will be issued health insurance cards as part of the government's efforts to support these vital professions.

The minimum wage has been set at Rs32,000, providing better livelihoods for low-income workers. Additionally, the minimum pension will be raised to Rs12,000, and the pension for the Employees' Old-Age Benefits Institution (EOBI) will be increased to Rs10,000.

In a move to support widows, the government plans to pay their debts of up to Rs1 million through the House Building Finance Corporation (HBFC). Moreover, the deposit limit for national savings accounts for martyrs will be raised from Rs5 million to Rs7.5 million. The allocation for the Benazir Income Support Programme (BISP) will also be enhanced by Rs50 billion, bringing it to a total of Rs450 billion.

Karachi: The price of gold in Pakistan rebounded after a five-day decline, driven by a slight depreciation of the rupee against the dollar and anticipation surrounding the upcoming budget for the fiscal year 2023-24.

As per the latest data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold increased by Rs2,300 per tola and Rs1,972 per 10 grams, reaching Rs229,300 and Rs196,588, respectively.

Simultaneously, the international market witnessed a $19 surge in the price of gold, with the precious metal closing at $1,965 per ounce.

The domestic gold market experienced a downward trend throughout the week. The fluctuating gold rates in Pakistan can be attributed to ongoing political and economic uncertainties, high inflation, and currency devaluation. Many individuals view gold as a safe investment and a hedge during such times.

The APSGJA also reported a Rs50 increase in the price of silver per tola and a Rs42.86 increase per 10 grams, settling at Rs2,650 and Rs2,271.94, respectively.

Furthermore, the rupee witnessed a slight decline of Rs0.12 or 0.04% against the US dollar in the interbank market, concluding at Rs286.93 on Friday.