(Budget 2009-2010)

(Budget 2009-2010)

 

Source:The News (http://jang.net/important_events/budget2008/pages/default.asp)

 

·         Naveed Qamar says concerted efforts and strict measures are required to tackle current economic challenges. ·         Rs.30 billion additional loans to Agriculture sector.

·        NFC session will be convened.

·         Agriculture sector ignored during last 8 years, wheat support price to be re-evaluated in next season for improving agriculture sector.

·         Rs. 75 billion reserved for improvement in population resources.

·         All contractual employees up to Grade 15 being regularized.

·         Import duty levied on Luxury vehicles to be increased from 90 to 100 percent.

·         Defence budget to be tabled in National Assembly and all its components to be discussed.

·         The performance of Securities and Exchange Commission being further enhanced to protect investors.

·         Pay and Pension committee to be set up to review salaries and allowances of employees.

·         Rs. 34 billion allocated for Benazir Support Program, which will be later, increased to Rs. 50 billion.

·         Govt. to check rising cost of production, and spiraling of prices, effective measures being taken to control the problem.

·         90 percent tax exemption to be given for development of industry in rural areas in first year.

·         Domestic and foreign investors will be encouraged to initiate new projects Pakistan.

·         Reduction in expenditures of the Prime Minister's Secretariat and National Assembly.

·         Low Cost Housing.

·         One million housing units to be built for low-income groups.

·         Ban imposed on import of luxury goods by govt offices.

·         Import duty raised from 30% to 35% on 300 luxury items.

·         All expenses of govt offices freezed except for salaries.

·         Sales tax raised to 16% from 15%

·         Import duty raised to 100% from 90% on luxury cars.

·         30 percent cut in NAB's budget.

·         Govt. to set up Textile City, Marble City and other Industrial Zones to boost national exports.

·         Rs. 24.3 billion to be allocated for Education sector

·         Rs. 37 billion allocated to improve country's road network and highways

·         Lady Health Workers Program initiated in Benazir Bhutto's tenure of 1994, will be further strengthened by hiring 100 thousand more Lady Health Workers.

·         New medical programs being initiated to eradicate deadly diseases, more funds will be allocated for this purpose.

·         15 percent custom duty abolished on CNG

·         One million houses to be built for poor and low paid govt employees.

·         Minimum pension raised to Rs2000 from Rs300.

·         Conveyance allowance doubled for employees of Grade 1 to 19

·         Contractual employees of Grade 1 to 15 to be regularized.

·         Medical allowance raised from Rs425 to Rs500 for govt employees of Grade 1 to 16

·         Number of Supreme Court judges increased to 29 from 16

·         Federal govt employees' salaries raised by 20%, same increase for armed forces proposed

·         Pensions increased by 20%

·         Budget deficit target 4.7% of GDP.

·         Rs1000 per month to be provided to poor families

·         Later, Benazir Cards will also be issued to help the poor

·         Custom duty abolished on energy savers

·         EPB zone to be established in Balochistan

·         Profit on national savings schemes to be raised by 2%

·         Rs.543 billion allocated for development programs in the budget

·         5 percent excise duty abolished on crop insurance scheme

·         Remittances coming into Pakistan after the incident of 9/11 could not be best utilized, the basic infrastructure could have been improved from this amount.

·         Agriculture Bank to be strengthened so that more incentives could be given to agriculture sector.

·         10 percent custom duty is being abolished to improve the production of rice.

·         The gap between demand and supply has increased over the years and there has been no investment in the power-generation sector since 1994.

·         The number of Utility Stores will be increased to 6000 so that poor people could be provided with more relief.

·         Rs.28.4 billion allocated for Peoples Works Program.

·         National Identity Cards to be provided free of cost to people.

•   Import duty on PTA reduced to 7.5% from 15%
•  Import duty reduced from 10% to 5% on import of chemicals used in manufacturing of medicine.
•  Rs.75 billion allocated for construction of dams and for irrigation
•  Wheat support price fixed at Rs.625.
•  Demand-supply gap of electricity is 2500 MW.
•  25% increase in FBR revenue target.
•  PSDP Rs.543 billion.
•  Exchange rate witnessed 6.4% decrease.
• Rs.66 bn allocated for power sector.
• Import duty raised from Rs.150 to Rs.200 per kg on betel leaf.
• Minimum wage raised from Rs.4600 to Rs.6000
• Benazir Income Support Programme to be launched with Rs.34 billion which will be increased to Rs.50 bn later.
• Country's fiscal deficit will be controlled and Foreign Exchange Reserves will be increased.
• Efforts are being made to save electricity; duration of load shedding will be shortened, government will make sure that enough electricity is available for agriculture and industrial sectors.
• The economic situation worsened due to previous government's policies and past fiscal deficit.
• Our industry is not market-driven and due to increased electricity prices the situation has seen a drastic change.
• Sales tax abolished on fertilizers.
• Improvement of tax mechanism on auto-industry.
• Proposal to give relief to call centers from excessive taxes.
• PTA duty to be fixed at 7 percent.
• Pharmaceutical industry to be given more incentives.
• Govt. to take measures to increase production of cotton in the country.
• Rs.1.1 billion reserved for improvement for fish-brewing sector.
• Pakistan will be made an investors friendly destination, and efforts will be made to strengthen the social sector for which focus will be given to housing sector.
• More focus to be given on revenue generation, FBR performance has been satisfactory; there has been considerable increase in revenue collection.
• 5% excise duty abolished on crops insurance.
• 10% custom duty on import of rice seed abolished.
• Sales Tax abolished on fertilizers.
• Minister of Finance, Revenues, Economic Affairs and Privatization, Syed Naveed Qamar is presenting the budget at the floor of lower house.
• The Prime Minister Syed Yousuf Raza Gilani along with other Cabinet Ministers is present in the National Assembly.
• This budget is aimed at stabilizing the economy.
• Demand supply gap in electricity of 2500 MW in the country.
• Cold storage stores to be constructed to boost export.
• DAP fertilizer subsidy increased from Rs.470 to Rs.1000.