Federal Minister of industries and production Hammad Azhar has presented the budget for the fiscal year 2020-21 in National Assembly.
Government has set total size of budget at Rs7.14tr.
While presenting the budget, he said, “No measures have been taken in the past to curb money laundering” “Our goal is to revive the economy”
Azhar said that 6 billion has been allocated for the Ministry of Climate Change.
He further announced that SBP will allocate Rs 800 billion for individual loans. Hammad Azhar continued, “Has taken all possible steps to improve the growth rate”
Here are the highlights of the budget 2020.
- 14 points of FATF have been completely implemented whereas 11 are being implemented.
- Rs 1 billion have been allocated to financially support artists.
- Rs 650 billion have been allocated for PSDP.
- For projects related to coronavirus, 73% for ongoing projects and 27% for new projects have been allocated.
- Rs. 70 billion have been allocated for the fight against coronavirus and other natural disasters. Rs 80 billion have been allocated for energy and power.
- Significant financial resources are being provided for water resources especially Diamer Bhasha, Mohmand and Dasu.
- The reserves of the State Bank of Pakistan declined from $18bn to $10bn due to the failed policies of the past.
- FBR revenue rises 17%
- Rs 40 billion has been allocated for Pakistan Railways to provide affordable transport to the people.
- The budget deficit had reached the highest level of 2300 billion
- The coronavirus pandemic caused our GDP to shrink by Rs3,300bn,
- The burden of Rs 5,000 billion has been incurred due to heavy debt repayments of the past.
- The current account deficit was at an all-time high of 20 20 billion
- The economic crisis is inherited
- The cooperation of the people is needed to achieve the desired goals
- Permission has been granted to make mobile phones in Pakistan
- Sales tax is being reduced for making mobile phones in Pakistan
- The tax to GDP ratio is 11%, which is less than what it has been in the past 20 years
- The tax rate on double cabin vehicles has also been increased
- The rate on caffeinated beverages has been increased from 13 to 25 percent
- The rate of imported cigarettes has been increased from 65% to 100%
- Educational institutions that charge an annual fee of more than Rs 200,000 will have to pay 100% more tax.
He also informed that advance tax on auto rickshaws, motorcycle rickshaws and motorcycles up to 200cc has been abolished.
He also told the assembly about CNIC, “The condition related to National Identity Card has been increased from Rs 50,000 to Rs 1 lakh”.