ISLAMABAD, Apr 27 (APP):Following are the highlights of the first part of the budget speech by Minister for Finance and Revenue Miftah Ismail
before the National Assembly on Friday.
· We have achieved a highest growth in 13 years, low inflationary environment, and overall macro-economic stability.
· Next government will be free to make changes in the budget priorities.
· We inherited a collapsed economy, low growth, high inflation and high fiscal deficit.
· During five years preceding 2013, average inflation was 12% and average GDP growth was 2.8%.
· Last year, government achieved GDP growth of 5.4% – highest growth rate in last 10 years.
· For this year, growth is projected 5.8% – highest in last 13 years.
· Size of the economy expanded from Rs.22,385 billion in FY2013 to Rs.34,396 billion in FY2018.
· Per capita income increased from Rs.129,005 in 2013 to Rs.180,204.
· Pakistan’s economy is 24th largest economy in the world.
· Agriculture sector shows the highest growth in past 18 years of 3.8%.
· Industrial production grew by 5.8% this year.
· Services sector witnessed a remarkable growth of 6.4%.
· Curtailed average inflation to less than 5 percent in the past five years, compared to 12 percent between 2008-13.
· During current year, fiscal deficit will be contained below 5.5% of GDP.
· For current fiscal year, FBR revenue is projected to increase to Rs.3,935 billion.
· Tax to GDP ratio will increase to 13.2% this year.
· Credit given to agriculturalists would increase to Rs.800 billion by June 2018.
· Credit to private sector has grown by 383 percent, from Rs.93 billion in 2013 to Rs.441 billion by April 2018.
· During first nine months imports increased by 17% comparing last year.
· Foreign Direct Investment increased to $2.7 billion in FY2017 from $1.3 billion in 2013.
· During the first 9 months of current fiscal, it has increased to $2.1 billion.
· We expect remittances to increase to more than US$20 billion against $19.3 billion last year.
· Presently reserves held with SBP stand at $11 billion.
· This year 8,349 companies were registered till March 2018 compared to 5,883 last year.
· A total of US$223 billion were invested in the economy from both domestic and foreign sources over the five years.
· We have added 12,230 megawatts of new generation capacity.
· Complete tax exemption has been given to people who earn upto Rs.12 lakh per year.
· Tax will be levied at rate of 5 percent for income between two and four lakhs monthly.
· People earning above four lakh monthly will be taxed at the rate of 15 percent.
· Undeclared incomes earned before 30th June 2017 and held as local assets can be regularized on payment of 5% of the asset value.
· State is being given the power to purchase land and property at 100% of the declared value within six-months of its registration.
· Non-filers will be barred from procuring property above Rs.4 million.
· FBR rate on property is being abolished from 1st July 2018.
· Provinces have been advised to abolish DC rates.
· Under budget targets, real GDP growth rate of 6.2% to be achieved.
· Inflation to remain below 6%. Tax to GDP ratio of 13.8%. Budget deficit of 4.9% of GDP.
· Foreign exchange reserves to be increased to $15 billion.
· FBR tax revenue target is proposed to be fixed at Rs.4,435 billion.
· Rs.125 billion proposed for Benazir Income Support Programme.
· Prime Minister’s Youth Scheme will continue.
· Total size of the PSDP is proposed as Rs.800 billion.
· All incentives for agriculture sectors shall continue during 2018-19.
· By 1st July, there will be a reduced uniform GST rate of 2% on all fertilizers.
· Setting up of an Agriculture Research Support Fund and Agricultural technology Fund are being proposed.
· Five export sectors like textiles, leather, sports goods, surgical goods and carpets shall continue to remain in zero-rated sales tax regime.
· Prize scheme for home remittances is proposed.
· Three percent custom duty on import of film and drama production equipment.
· Revolving fund of deserving artists is proposed.
· Government proposes sea water desalination plant for Karachi.
· New programme for 100 % enrollment of children in school being launched.
· Rs 23.7 billion to be allocated for Diamer Bhasha Dam.
· Rs 44.7 billion proposed for AJK and Gilgit Baltistan and Rs 24.5 billion for FATA.
· Rs 90 billion for rehabilitation and reconstruction of IDPs’ homes in FATA.