Saudi FM calls Indian, Pakistani counterparts to discuss developments    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Arabia cracks down on fraudulent Hajj campaigns, urges pilgrims to use official channels    Nammos Amala Resort to open soon with Saudi-Greek designs    Saudi Arabia completes 674 Vision 2030 initiatives, achieves 93% of KPIs as ninth-year milestone marked    Literature Commission inaugurates Saudi Pavilion at Muscat Book Fair    Saudi Minister of Culture holds talks with his Costa Rican counterpart in Jeddah    Alkhorayef praises advancements in Al-Kharj food industries sector    MHRSD: 80% of recruitment offices are non-compliant with regulations    At least 50 Palestinians killed in Israeli strikes across Gaza    Teenage girl killed in French school stabbing attack    Trump claims meeting with China after Beijing denies any trade negotiations    GACA chief chairs 16th meeting of the Steering Committee on aviation's strategy    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Jennifer Lopez dazzles in Jeddah with a Formula 1 performance    Saudi Arabia open to expanded 64-team World Cup in 2034, says sports minister    Average life expectancy in Saudi Arabia rises to78.8 years    Film Commission launches 'Cinema' initiative to enhance content    Famed Philippine film star Nora Aunor dies at 71    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Mixed reaction to Pakistan fiscal budget
Published in The Saudi Gazette on 15 - 06 - 2008

At a time when Pakistan is facing nerve-wracking political challenges and economic hold-back, the coalition government presented a Rs2.01 trillion national budget that offers relief measures to the poor and the salaried class, imposes new taxes and slashes food, fuel and power subsidies.
“Certainly it is a challenge to present the budget in these harsh and difficult circumstances when international donors have been demanding the abolition of all subsidies for a long time,” said Anwar Razi, an accountant in Jeddah.
Pakistan targeted 6.5 percent growth in the 2008/09 fiscal year (July/June) through better macro-economic management and expected growth in the farm and manufacturing sectors.
Razi said the government had to make painful adjustments to achieve 25 percent growth in revenue, targeted at Rs1.2 trillion in the new budget.
The rationale behind the harsh decision is said to be an attempt at cut back fiscal deficit from 7% to 4.7%.
Government seeks to meet a budgetary deficit of Rs582 billion by rationalizing taxes, mainly by increasing indirect General Sales Tax (GST) from 15 percent to 16 percent.
“This move is likely to push already surging inflation further up,” said an economics teacher Luqman Ali Baksh, while commenting on the move to reduce fiscal deficit.
“A drastic cut announced in the budget on food, fuel, electricity, and fertilizer subsidies from Rs407.48 billion to Rs295.20 billion would hurt the poor already reeling under price-hike, inflation and food shortage,” said Baksh.
“Particularly on the expenditure side, there is some effort to reduce the subsidy burden,” said Tahira Jabeen, who is an MA in economics.
Muhammad Yar Nangiana, a banker, criticized the budget for being against the wishes of the masses.
“It is a budget for landlords and feudal lords.”
Architect Reza Mehdi agrees with Nangiana's views.
“This budget would create more problems for the middleclass.”
President of Kashmir International Writers Club Raja Pervez Akhtar Shaheen thinks that food subsidy or “cash card for the poor” schemes are no substitute for creating jobs for all and ensuring judicious distribution of national resources amongst all the level of society.
“There is no program for improving the economic lot of the poor.”
This is the first time that defense spending has been publicized since 1965, when war with India led to it being classified. “It is not clear whether the increased budgetary allocation would go towards employees' expenses or purchase of defense assets,” commented Luqman Ali Baksh on defense budget, adding that “the government seems to go into reverse on the claim of freezing the defense budget because the budget proposes a nearly 7 percent increase, from Rs277 billion spent last fiscal year to Rs296.07 billion in 2008-09.
Rehana Shazel, a home economics professor, said the people who are criticizing the current budget should understand that Pakistan was never confronted with such grave problems.
“In the present economic situation of the country, the government has presented an ideal budget which reflects true efforts of providing relief to common people,” she said. __


Clic here to read the story from its source.