Hammad Azhar says considering Senate recommendation for 10pc salary raise

ISLAMABAD: Minister for Industries and Production Hammad Azhar, while winding up debate on federal budget on Thursday, fell short of announcing raise in salaries and pensions of the government employees.

The minister, however, said the government was considering recommendations of Senate as proposed by finance committee of the upper house. The Senate, while adopting 40 amendments, as proposed by its standing committee on finance, had also recommended 10% increase in salaries and pensions.

Hammad Azhar, however, expressed the confidence that the Federal Board of Revenue (FBR) tax collection target of Rs4.96 trillion, set in the budget 2020-21, would be met.

The minister, while responding to criticism of the opposition for setting ambitious targets, said those who were considering the target as ambitious should know that during the pre-COVID period, the tax collection was increasing at a rate of 17 per cent, compared to the last year.

He pointed out that normally tax collection during last quarter of the financial year remains highest as compared to the first three quarters, but unfortunately outbreak of corinavirus affected the overall economy and revised tax target of Rs4.8 trillion could not be achieved.

Hammad focused his winding up speech on achievements of Pakistan Tehreek-e-Insaf (PTI) government.

The minister pointed out that the incumbent government inherited a weak economy, but due to its concerted efforts, the government succeeded in stabilising the economy which was evident from the fact that all international financial institutions were praising Pakistan government performance on economic front prior to outbreak of COVID-19.

He said the virus affected the whole world and the world economy was projected to be slowed down, causing loss of $12 trillion.

In such a worst situation, the government had to present a tax-free budget, he said adding that presenting a tax-free budget while enhancing allocations for development as well as education and health budgets in the face of coronavirus shows the true leadership of Prime Minister Imran Khan.

Hammad Azhar said the government achieved remarkable success during the last fiscal year especially in its first nine months while all financial needs had been equated as per resources in this federal budget 2020-21. The minister said the government tried to minimise the impact of COVID-19 on the economy by pursuing a prudent strategy.

He said the government reduced the current account deficit by 73% , trade deficit 31% and fiscal deficit by 3.8% in the first nine months of current fiscal year. He said it is also for the first time that our primary surplus remained positive.

He said Foreign Direct Investment also doubled from one billion dollars to two billion dollars and refunds of Rs250 billion were also made to the businesses. To cope with the situation, the government gave a mega stimulus package and under this the payments were made to all the provinces.

The minister said that Rs75 billion were allocated for bulk purchases of personal protective equipment. He said cash assistance of Rs12,000 each had been given to 16 million people in addition, the government also paid the electricity bills of small and medium enterprises for three months.

Hammad Azhar said the government opted for phase-wise lifting of lockdown to protect the livelihoods of the vulnerable groups. The minister said that no new tax had been imposed rather a several taxes had been abolished.

He said the Customs duties on 1,600 tariff lines of different raw materials had been abolished. More than 10 withholding taxes have also been waived off. He said Rs661 billion had been set aside for the annual Public Sector Development Programme.

He said Balochistan had been given the biggest share in the PSDP followed by Sindh. The minister categorically stated that the federal government had not withheld the amounts of the provinces under the National Finance Commission and an amount of Rs88 billion had been additional given to the Balochistan.