Islamabad, June 04, 2014 (PPI-OT): The Federal Budget 2014-15 has given a sense of confidence to the business community as they feel it will create enabling conditions for better growth of business activities.
The government has announced many good incentives in the budget including reduction in markup on export finance and long-term financing for exporters, reduction in corporate tax rate on new investment in manufacturing, construction and housing projects, incentive packages for textile and agriculture sectors that could help in growth of businesses and fast economic revival. Allocation of sufficient budget to cope with energy crisis is very encouraging as energy was the core reason for the slow growth economy.
Shaban Khalid, President, Islamabad Chamber of Commerce and Industry addressing a post-budget press conference said that government has taken some constructive and concrete measures to lessen the problems of private sector, which is a source of satisfaction. However, he said enhancing sales tax on steel sector needs revision as it could hurt the growth of steel industry.
He said improving forex reserves, maintaining inflation to single digit are positive achievements of the government. Increasing PSDP to Rs.525 billion will help in addressing issues of dilapidated infrastructure. He said construction of Lahore-Karachi motorway and improving Pakistan Railways are expected to bring down cost of doing business, facilitate easy movement of goods and provide low cost transportation facilities.
Shaban Khalid said establishment of EXIM bank will go a long way in improving country’s exports as it will take care of the financing needs of exporters. He said incremental incentives to exporters will also help in improving exports. He said agriculture sector needs more incentives as it absorbs 43 percent of labor force and its growth will contribute in stemming the migration of labor from rural to urban areas.
He said measures announced for expanding tax net are laudable as our country badly needs to improve base of tax net for reducing fiscal deficit and enhancing spending on social sector. Government intentions to increase direct tax and decreasing indirect tax are expected to promote progressive tax system in the country. Giving raise to public sector employees will provide relief. He was optimistic that the overall impact of the budget will be positive on the growth of economy and help in achieving progressive growth target of the economy.
For more information, contact:
Islamabad Chamber of Commerce and Industry
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Tel: +9251 225 0526 and 225 3145
Fax: +9251 225 2950
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