ISLAMABAD, Pakistan: The Finance Minister Ishaq Dar on Friday unveiled the federal budget for fiscal year 2017-18 having a total outlay of Rs 5,103 billion in the National Assembly amid strong protest by the opposition against mistreatment of farmers by Islamabad Police.
The opposition chanted ‘go nawaz go’ slogans and eventually walked out of the House as a protest while the finance minister was presenting the budget.
In his budget speech, the finance minister said that the Country’s Gross Domestic Product (GDP) growth rate stands at 5.3 percent while fiscal deficit has reduced to 4.2 percent.
Ishaq Dar said that improvement has been witnessed in every segment, adding that Pakistan will be among G-20 Countries by 2030.
The minister said that industries have been exempted from load-shedding whereas tax collection has been increased by 81 percent in four years.
The finance minister said that the loans were taken only for development purposes. He said that Pakistan has successfully completed International Monitory Fund’s (IMF) reforms program.
The minister said that agriculture loan has increased to Rs 700 billion, interest rate is at lowest 5.75 percent while foreign exchange reserves stand at around $21 billion.
Ishaq Dar said that foreign remittances have increased by 40 percent, and stand at $19.9 billion.
The minister announced 10 percent increase in pensions, and also said that minimum wages have been increased to Rs 15,000 per month. Likewise, he announced an increase in several allowances of different categories of employees.
Furthermore, Ishaq Dar said that Pakistan Stock Exchange (PSX) 100-index stands at 52,000 points. He said that reforms are being introduced to facilitate foreign investment companies.
Ishaq Dar said that Pakistan signed the Open Government Partnership’s (OGP) letter of intent.
The minister said that per capita income has increased to $1,629 while the GDP target rate of FY 2017-18 is 6 percent. “We have evolved budget strategy to achieve targets,” he said.
The finance minister said that revenue of Federal Board of Revenue (FBR) has increased to 14 percent.
The minister said that new steps are being taken for agriculture, health and creation of jobs. He said that the focus is on increasing exports, textile and social sector.
Ishaq Dar reiterated that load shedding will be eliminated next year as 10, 000 megawatts electricity will be added in the national grid by 2018.
In addition, Ishaq Dar said that allocation of Rs 121 billion has been proposed for Benazir Income Support Programme (BISP). He also announced that the budget of Pakistan Baitul Mal (PBM) has been increased from Rs 4 billion to Rs 6 billion.
In addition, the finance minister announced that farmers of Balochistan will be given subsidy on electricity of tube wells.
The minister said that Prime Minister Youth Scheme will be continued and an amount of Rs 20 billion has been allocated for it.
Dar said that prices of fertilizers will be strengthened while agriculture loans will be given to farmers on 9.9 percent interest rate.
Likewise, he said that under the budgetary proposal, Rs 6 billion has been allocated for housing sector.
Ishaq Dar further announced that low income groups will be provided loans through micro finance institutions. He said that Rs 8 billion has been allocated to establish fund at the State Bank.
Turning to defence budget, Ishaq Dar announced that Rs 920 billion has been allocated for defence budget as against 841 billion allocated last year. He also announced the allocation of 10 percent Zarb-e-Azb Special allowance for soldiers and officers of armed forces.
Moreover, the minister said that 30 percent tax has been decreased for corporate sector. He said that new IT companies will be exempted from income tax for three years.
The opposition began the protest after police baton charged demonstrators of Pakistan Kissan Ittehad who were staging a sit-in at D-Chowk after Friday prayer. Police resorted to tear-gas shelling to disperse the protesters who in retaliation, pelted stone of police personnel.
Several protesters were reportedly injured while many others were apprehended by police.
Strongly condemn use of tear gas/latthi charge by police against peaceful protest by farmers exercising their democratic right in Isl today
— Imran Khan (@ImranKhanPTI) May 26, 2017
Govt meets businessmen to discuss their isues but farmers are baton-charged if they raise the dismal treatment meted out to them by the govt https://t.co/NkqI2kIXTP
— Imran Khan (@ImranKhanPTI) May 26, 2017
Earlier, the Federal Cabinet chaired by Prime Minister Nawaz Sharif approved the budget proposals of fiscal year 2017-18.
The Secretary Finance Division briefed the Cabinet on the budgetary and taxation proposals.
