Islamabad (May 27, 2017): Finance Minister Ishaq Dar on Saturday underlined the need of having Charter of Economy for broader consensus on economic issues, saying that all political forces need to join hands for this purpose before next general elections.
Addressing a post-budget press conference here, the Minister said that the government had laid greater emphasis on agriculture and information technology sectors in the budget for sustained and higher economic growth to create new employment. He was explaining salient features of the federal budget 2017-18 at a news conference in Islamabad on Saturday.
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The Finance Minister said that this is the best time reach consuls on the charter of economy for sustainability and achievement of socio economic goals and macroeconomic stability. He said that we have saved and consolidated the macroeconomic goals. He said we will have to work hard with unity for strengthening the economy of the country. He said our priority is to strengthen the economy of the country.
He added that it was necessary all the political forces should have reach a consensus on Charter of Economy before the next general election. He pointed out that strong and stable economy was a must for strong and propitious country.
He added that hopefully, PML-N government would present the next budget in June next year. He opined that the interim governments must have run only day to day affairs and have no powers to prepare and present budget.
He added that the government had cut sales tax on fertilizers in the budget. He added that the Prime Minister Package for farmers would continue in the next fiscal year too.
Dar said that agri loans would be given to farmers on low mark up. He added that the minimum wage had been raised from Rs14,000 to Rs 15,000 in the budget.
The minister said that the government would fulfill its commitment of ending load shedding next year. He said that in next fiscal year some 10,000 megawatts power would be added to the national grid which would end load shedding from the country.
He further said that the government had decided to give Rs50 thousand loan to small farmers.
He clarified that the government had not impose any new tax on milk especially packaged milk. He added that some elements had tried to hike prices of milk in the garb of budget.
Dar said that new taxes amounting to only Rs87 billion had been imposed in the budget.
Regarding power subsidy, Dar said that the subsidy government was currently extending on agriculture tube wells will continue. He added that the subsidy on electricity bills of power consumers consuming upto 300 units would also continue in the next fiscal year.
The minister said that sales tax on tube wells and other machinery had been waved off. Dar said that incentives had also been extended to poultry sector in the budget.
Finance Minister Ishaq Dar said that the thrust of the new federal budget is on growth, job creation, poverty alleviation and improving living standard of the common man.
Ishaq Dar said that the government will also present the next federal budget and no constitutional amendments are needed in this regard.
He said that defence has been given preference in the next budget and 920 billion rupees have been allocated for this sector. He said 1001 billion rupees have been allocated for PSDP and after inclusion of the provincial PSDP the amount will reach to 2100 billion rupees.
The Finance Minister said that 3.4 % growth in agriculture sector has been witnessed and we will have to work hard to sustain it. He said agriculture credit has been set at 1001 billion rupees. He said that two million small farmers with less than 12.5 acres holding will be given loan up to fifty thousand rupees at 9.9 percent interest rate.
He said relief has also been given to farmers and poultry farmers in a number of ways by decreasing sales tax. He said its impact will be positive on agriculture. He said for decrease on the sales tax of DAP the government will have to bear 13.8 billion losses.
He said the main targets are GDP 6 percent and inflation 6 percent. Dar said 10000 mw power will be added in the national grid by next year.
He said safety net has been increased with 121 billion rupees. He said the current expenditure will be kept below the inflation to reduce the budget deficit.
He said tax incentives have been given for agriculture and information technology.Finance Minister further said that IT ministry will train one million free lancers to create new jobs for youth.
He said the actual tax in this budget is 87 billion rupees because the total tax is 120 billion and 33 billion is relief.
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