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Shedding light on the issues, the finance minister said that inflation is a problem as it is affecting the low-income segment.
“It should be accepted that inflation is rising due to rise in food prices.”He claimed that $16 billion reserves are enough for imports for three months. Sufficient reserves are fuelling rupee stability.
“Pakistan is a food deficit country because the sector was neglected for past 15-20 years,” he clarified.
“We have to make Pakistan a food-sufficient country and for that, we have to focus on agriculture,” Tarin added.
Commodity warehousing, cold storages are the need of the hour. Moreover, the country needs administrative control mechanism.
Government debt is declining, public debt rose due to the Covid-19 package.
Growth plans
For the fiscal year 2021-22, the Imran Khan-led government aims for inclusive and sustainable growth.
With a target of 4.8% growth rate, the premier wants to turn the direction of the country.
During his budget speech, Tarin mentioned that four to six billion households will be given up to Rs5 lac interest-free loans.
Every agriculture-based household to get interest-free loans worth Rs1.5 lac, he said. While Rs20 lacs would be given in low-interest loans for low-cost housing.
The government aims to provide relief to the lower segment, hence this segment will be granted good incentives.
In Pakistan, 65% of the population is below 30 years of age and if the government cannot create jobs, it will wasting national advantage.
Read more: Pakistan succeeded in reviving economy despite Covid pandemic: Forbes
“Therefore, we want to ensure 6-7% growth over next few years,” Tarin added.
Special economic zones (SEZs) will be used to create jobs which will also ensure growth in exports.
While unveiling the budget, the finance minister mentioned that PTI’s government has decided to provide tax relief package.
Subsidy worth Rs3 lac rupee subsidy will be given. And for the first time, mortgage financing has been started.
Mark-up rates have been stabilized. Cash transfer, Kamyab Jawan programme, interest-free loans are all part of the Ehsaas programme, the government has allocated Rs260 billion for this development programme.
Energy sector
In the budget for the next fiscal year, a special plan for the elimination of circular debt would be introduced.
“The government plans to reduce line losses through investment,” Tarin added. Moreover, an electric vehicle policy would also be announced.
Development expenditures
In the next fiscal year, the government has increased the PSDP budget to Rs900 billion from Rs630 billion.
Tarin assured that the government would improve road infrastructure. Furthermore, through PSDP, it will invest in high return projects.
Agriculture
Unveiling the federal budget, the finance minister announced a national agriculture emergency programme.
The government plans to enhance livestock on modern lines and has decided to allocate Rs12 billion for the most important sector.
Dasu, Diamar-Bhasha and Mohmand dams are a part of the budget. Rs91 billion have been allocated for water resources. Moreover, Rs14 billion have been allotted for the Neelum Jhelum power project.
Tarin mentioned that the ML-1 project will be completed in three packages.
“It should be accepted that inflation is rising due to rise in food prices.”He claimed that $16 billion reserves are enough for imports for three months. Sufficient reserves are fuelling rupee stability.
“Pakistan is a food deficit country because the sector was neglected for past 15-20 years,” he clarified.
“We have to make Pakistan a food-sufficient country and for that, we have to focus on agriculture,” Tarin added.
Commodity warehousing, cold storages are the need of the hour. Moreover, the country needs administrative control mechanism.
Government debt is declining, public debt rose due to the Covid-19 package.
Growth plans
For the fiscal year 2021-22, the Imran Khan-led government aims for inclusive and sustainable growth.
With a target of 4.8% growth rate, the premier wants to turn the direction of the country.
During his budget speech, Tarin mentioned that four to six billion households will be given up to Rs5 lac interest-free loans.
Every agriculture-based household to get interest-free loans worth Rs1.5 lac, he said. While Rs20 lacs would be given in low-interest loans for low-cost housing.
The government aims to provide relief to the lower segment, hence this segment will be granted good incentives.
In Pakistan, 65% of the population is below 30 years of age and if the government cannot create jobs, it will wasting national advantage.
Read more: Pakistan succeeded in reviving economy despite Covid pandemic: Forbes
“Therefore, we want to ensure 6-7% growth over next few years,” Tarin added.
Special economic zones (SEZs) will be used to create jobs which will also ensure growth in exports.
While unveiling the budget, the finance minister mentioned that PTI’s government has decided to provide tax relief package.
Subsidy worth Rs3 lac rupee subsidy will be given. And for the first time, mortgage financing has been started.
Mark-up rates have been stabilized. Cash transfer, Kamyab Jawan programme, interest-free loans are all part of the Ehsaas programme, the government has allocated Rs260 billion for this development programme.
Energy sector
In the budget for the next fiscal year, a special plan for the elimination of circular debt would be introduced.
“The government plans to reduce line losses through investment,” Tarin added. Moreover, an electric vehicle policy would also be announced.
Development expenditures
In the next fiscal year, the government has increased the PSDP budget to Rs900 billion from Rs630 billion.
Tarin assured that the government would improve road infrastructure. Furthermore, through PSDP, it will invest in high return projects.
Agriculture
Unveiling the federal budget, the finance minister announced a national agriculture emergency programme.
The government plans to enhance livestock on modern lines and has decided to allocate Rs12 billion for the most important sector.
Dasu, Diamar-Bhasha and Mohmand dams are a part of the budget. Rs91 billion have been allocated for water resources. Moreover, Rs14 billion have been allotted for the Neelum Jhelum power project.
Tarin mentioned that the ML-1 project will be completed in three packages.