Budget20-21: We Can’t get out of debt: Finance adviser
Pakistan's federal ministers said the government wanted the money spent on loans to be spent on the people, but it was not possible to reduce the amount allocated for outstanding loans
Pakistan’s federal ministers said the government wanted the money spent on loans to be spent on the people, but it was not possible to reduce the amount allocated for outstanding loans.
During a post-budget press conference in Islamabad, Finance Advisor Hafeez Sheikh, Federal Minister for Industries and Production Hamad Azhar and Trade Adviser Abdul Zaq Dawood said that it was not possible to provide jobs to the people in the difficult economic situation but due to Corona. Job security measures have been taken.
Finance Advisor Hafeez Sheikh said that a budget was prepared to alleviate the suffering of the people and for relief. “The country is in trouble because of the coronavirus.
After giving to the provinces, the total resources of the government are two thousand billion. In such a situation, Rs. 2700 billion was spent on repayment of loans. The economic recovery has been severely damaged.
The finance adviser said that the repayment of loans, which was taken by of the past, We could not get rid of.
He said that the coronavirus had affected the whole world, and millions of people have been affected. According to the IMF, world income will fall by 4%. It will affect us too. No one knows for sure how long it will last. This is expected to cost the economy Rs 3,000 billion.
The finance adviser said that the revenue of the FBR in Pakistan could have reached Rs 4,700 billion if it had run at its own pace. Now it will hardly reach Rs 3900 billion. The loss in revenue is up to Rs 700 billion. Even so, owning one is still beyond the reach of the average person.
He said that if the loan had not been given, the realization program could have been tripled. “We have made difficult decisions to reduce government spending. We are not borrowing for luxury. We borrowed to deal with past debts.
This is the main aspect of this budget that no new tax has been imposed. We are reducing costs and have done so. Attention has also been paid to expanding the development program.
According to him, last year’s used PSDP has increased by Rs 100 billion. The money saved from the Prime Minister’s 1240 billion relief will be used further.
He said that the government paid the three-month electricity bills of SMEs itself.
Rs 50 billion was provided for agriculture. Fertilizers were made cheaper and subsidized for farmers. Factories were also subsidized, and over 600,000 companies benefited from it. Consumer utility bills were given relief for six months. The people have benefited from the reduction in the prices of petroleum products in the world.
According to the financial adviser, government expenditure remained below revenue, resulting in a primary surplus. In the current situation, the government needs taxes.
“If taxes are not met, debt will increase. When the government came, the dollars were gone. Dollars used for imports were lower than exports. Our current account deficit reached 30 billion, bringing it to 3 3 billion.
The finance adviser said salaries should not be increased just because of rising unemployment. Instead of raising salaries, the focus is on increasing employment.
On occasion, Federal Minister Hamad Azhar said that if the economy is in crisis, jobs will not be available. “Exports have increased due to the industrial wheel. It is expected to further improve employment opportunities.
Trade Adviser Razzaq Dawood said that attention had been paid to provide all facilities for the promotion of industrial activities. Efforts are being made to increase exports as much as possible. Concessions have also been given in taxes and duties to boost exports. Exporters were given facilities in terms of rebates. Tariff changes will also benefit.