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HYDERABAD, Jun 13 (APP):President of Hyderabad Chamber of Small Traders & Small Industry Muhammad Farooq Shaikhani hailed the Federal Budget 2024-2025.
Emphasizing its crucial role in both developed and developing nations. However, he expressed concern that in Pakistan, the practice of introducing mini-budgets after the annual budget should be ignored to benefit businessmen, industrialists, and the general public.
“Out of the total budget of 18.87 trillion rupees, a substantial 9.775 trillion rupees are allocated for interest payments on existing loans. additionally, the tax revenue target is set at 12.97 trillion rupees, with an anticipated budget deficit of 8 trillion rupees,” Shaikhani highlighted.
He stated that the government should introduce effective policies to expand the tax net to include new taxpayers.
Shaikhani welcomed the federal government’s decision to extend income and withholding tax exemptions for FATA and PATA for another year.
He acknowledged this initiative as a testament to the government’s commitment to supporting the economic development of these regions, helping to alleviate their historical socio-economic challenges.
Moreover, he praised the budget’s provisions for the solar panel industry, including a 1.5% reduction in interest rates and measures to address deficits.
“The move towards privatizing enterprises is also seen as a positive step,” he hailed.
“Unless interest rates are reduced to single digits, it will be challenging to attract industrialists to establish new industries in the country,” Shaikhani cautioned.
He emphasized upon formulation of short, medium, and long-term policies for its improvement.
He suggested that funds should be allocated for the development of dams and water reserves, and a shift should be made towards alternative energy and hydropower.
“Promoting the import of machinery and technology is essential to utilize these resources in industries that can generate new jobs and alleviate the country’s economic difficulties.”
He highlighted the absence of allocations in the federal budget aimed at combating climate change and global warming, which contribute significantly to floods and droughts in Pakistan.
Farooque stressed the urgent necessity of constructing a barrage at Jhark in Sindh, which would not only reclaim uninhabited lands in Thatta and Badin for agriculture but also mitigate these environmental challenges.
He also proposed addressing the palm oil shortage by promoting palm oil tree plantations along the coastal belts of Sindh, thereby reducing dependence on imports.
Regarding the information technology industry, he underscored the importance of providing incentives in the budget to foster its growth, aligning Pakistan with global practices.
He advocated for granting the IT sector the status of Small and Medium Enterprises (SMEs) listed companies, highlighting its potential to contribute significantly to economic stability.