Finance Minister Ishaq Dar Saturday said that Super Tax imposed on rich individuals, Association of Persons (AoPs) and companies having over Rs 500 million would be extended for another year.
Addressing to a pre-budget seminar here, the Finance Minister said, “Super Tax will continue for another year to eradicate terrorism.”
He said it is not necessary that devolution of exchange rate helps exports and suggested exporters to explore some other option to increase the country’s export. He said 10,000 MW electricity would be put in the system by March 2018 as 25,000 energy projects are being implemented.
The Finance Minister said there should be no debate in the issue of Panama Leaks as the matter lies with the superior judiciary and urged the political parties to have a common economic agenda for continuation of economic stability.
“We should be committed towards development agenda,” the Finance Minister added. He said the government would utilise Rs 600 billion Public Sector Development Programme (PSDP) against budgetary allocation of Rs 700 billion for the current fiscal year. After achieving economic stability, the government focus would be on growth to create employment opportunities.
Dar said Large Scale Manufacturing (LSM) is doing well; however, there may be some issues in achieving estimated growth of agriculture sector. Dar said the government is striving to provide some relief to farmers through implementation of prime minister’s agriculture package of Rs 341 billion.
He said 10 percent fiscal space has been devolved to the provinces in the last NFC Award along with responsibilities including ministry of food and agriculture.
Dar stated that agriculture sector credit has been increased to Rs 600 billion in the current fiscal year and directed the State Bank of Pakistan to achieve the disbursement target of credit to the agriculture sector.
He said China Pakistan Economic Corridor (CPEC) is a game changer for the country and regional progress and recounted for raising the country’s foreign exchange reserves to $15.8 billion from $2.8 billion in 2015.
He said tax revenue target of Rs 3,100 billion has been set for the current fiscal year and remittances have registered an increase of 17 percent over the last few years and are going to cross $18 billion mark from $13.9 billion in 2013.
Dar promised that outstanding circular debt and refund to exporters would be settled and will be cleared by July 2016.
He said good governance, accountability and transparency are the party’s manifesto and no one can prove any corruption in projects implemented during the last 32 months. He said the government is committed to eliminating corruption, improve governance and bring about transparency.
Dar said Pakistan has the potential to become world leader and many other countries including Italy, Qatar and Saudi Arabia are looking towards making investment in the country.
The government has provided Rs 230 billion for operation in North Waziristan and reconstruction and rehabilitation of displaced persons, he maintained.