Finance Minister Muhammad Aurangzeb, flanked by Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kayani, Finance Secretary Imdadullah Bosal, FBR Chairman Rashid Mahmood Langrial, and Head of the Tax Policy Office Najeeb Memon, addressed a post-budget press conference on Saturday.
Economic Stability to Growth
The finance minister said that last year, when discussions were held about economic stability, the government had committed to moving from stability towards growth. He said this budget delivers on that commitment, with measures taken to shift from economic stability to economic growth.
Export Promotion Measures
Aurangzeb said steps have been taken in the budget to promote exports, including the abolition of advance tax and the proposed abolition of super tax for all exporters. A subsidy of Rs70 to Rs71 billion has been provided to ensure a conducive environment for exporters, who will also have access to financing at 4.5 per cent. He added that duties on the import of raw materials have been reduced to bring down production costs.
Rs18.8 Trillion Budget Outlay
On Friday, the finance minister unveiled a Rs18.8 trillion federal budget, proposing to significantly reverse punishing taxes imposed on the salaried class and the real estate sector while deepening economic liberalisation. The Rs18.8 trillion expansionary budget was 20% or Rs3.1 trillion higher than the outgoing fiscal year's revised outlay, indicating the government's intentions to shift the gear from consolidation to spending.
Despite significant contributions by four provinces, the federal government has announced a Rs7 trillion deficit, which is higher than this fiscal year and will be filled by taking more loans. The government also plans to get $23.4 billion foreign loans, including $2 billion through Euro and Panda bonds.
