BML 4.93 Increased By ▲ 0.03 (0.61%)
BOP 14.66 Decreased By ▼ -0.05 (-0.34%)
CNERGY 7.06 Increased By ▲ 0.03 (0.43%)
CPHL 88.85 Decreased By ▼ -0.34 (-0.38%)
DCL 12.74 Increased By ▲ 0.03 (0.24%)
DGKC 185.57 Decreased By ▼ -0.88 (-0.47%)
FCCL 50.99 Decreased By ▼ -0.06 (-0.12%)
FFL 16.95 Increased By ▲ 0.01 (0.06%)
GCIL 28.09 Increased By ▲ 0.39 (1.41%)
HUBC 164.32 Increased By ▲ 3.01 (1.87%)
KEL 5.04 Increased By ▲ 0.03 (0.6%)
KOSM 6.89 Decreased By ▼ -0.18 (-2.55%)
LOTCHEM 21.41 Increased By ▲ 0.02 (0.09%)
MLCF 95.03 Increased By ▲ 0.39 (0.41%)
NBP 153.80 Decreased By ▼ -0.44 (-0.29%)
PAEL 43.80 Increased By ▲ 0.14 (0.32%)
PIAHCLA 20.31 Increased By ▲ 0.64 (3.25%)
PIBTL 11.26 Increased By ▲ 0.06 (0.54%)
POWER 15.15 Increased By ▲ 0.02 (0.13%)
PPL 179.31 Increased By ▲ 0.79 (0.44%)
PREMA 39.92 Decreased By ▼ -0.27 (-0.67%)
PRL 31.00 Increased By ▲ 0.02 (0.06%)
PTC 23.87 Decreased By ▼ -0.03 (-0.13%)
SNGP 117.00 Increased By ▲ 0.66 (0.57%)
SSGC 43.10 Increased By ▲ 0.83 (1.96%)
TELE 7.93 Increased By ▲ 0.02 (0.25%)
TPLP 9.94 Decreased By ▼ -0.02 (-0.2%)
TREET 25.30 Increased By ▲ 0.64 (2.6%)
TRG 55.66 Decreased By ▼ -0.01 (-0.02%)
WTL 1.42 No Change ▼ 0.00 (0%)
BML 4.93 Increased By ▲ 0.03 (0.61%)
BOP 14.66 Decreased By ▼ -0.05 (-0.34%)
CNERGY 7.06 Increased By ▲ 0.03 (0.43%)
CPHL 88.85 Decreased By ▼ -0.34 (-0.38%)
DCL 12.74 Increased By ▲ 0.03 (0.24%)
DGKC 185.57 Decreased By ▼ -0.88 (-0.47%)
FCCL 50.99 Decreased By ▼ -0.06 (-0.12%)
FFL 16.95 Increased By ▲ 0.01 (0.06%)
GCIL 28.09 Increased By ▲ 0.39 (1.41%)
HUBC 164.32 Increased By ▲ 3.01 (1.87%)
KEL 5.04 Increased By ▲ 0.03 (0.6%)
KOSM 6.89 Decreased By ▼ -0.18 (-2.55%)
LOTCHEM 21.41 Increased By ▲ 0.02 (0.09%)
MLCF 95.03 Increased By ▲ 0.39 (0.41%)
NBP 153.80 Decreased By ▼ -0.44 (-0.29%)
PAEL 43.80 Increased By ▲ 0.14 (0.32%)
PIAHCLA 20.31 Increased By ▲ 0.64 (3.25%)
PIBTL 11.26 Increased By ▲ 0.06 (0.54%)
POWER 15.15 Increased By ▲ 0.02 (0.13%)
PPL 179.31 Increased By ▲ 0.79 (0.44%)
PREMA 39.92 Decreased By ▼ -0.27 (-0.67%)
PRL 31.00 Increased By ▲ 0.02 (0.06%)
PTC 23.87 Decreased By ▼ -0.03 (-0.13%)
SNGP 117.00 Increased By ▲ 0.66 (0.57%)
SSGC 43.10 Increased By ▲ 0.83 (1.96%)
TELE 7.93 Increased By ▲ 0.02 (0.25%)
TPLP 9.94 Decreased By ▼ -0.02 (-0.2%)
TREET 25.30 Increased By ▲ 0.64 (2.6%)
TRG 55.66 Decreased By ▼ -0.01 (-0.02%)
WTL 1.42 No Change ▼ 0.00 (0%)
BR100 15,100 Increased By 41.1 (0.27%)
BR30 43,391 Increased By 460 (1.07%)
KSE100 148,892 Increased By 77.2 (0.05%)
KSE30 45,214 Increased By 8 (0.02%)

The budget is a challenge for the government in order to gain either political strength for the government or set the economic plan for future. The budget demonstrates the government's emphasis on attempting to improve the socio-economic condition of the masses through higher outlays on welfare, agriculture and health.
There should be priority on the national issues and allocation of funds for various key sectors and the role and extent of IFIs. Increase in tax to GDP ratio, downwards pressure on inflation and reducing fiscal deficit are the main challenges for the government in the next budget. Pakistan's present tax system has narrow tax base along with tax evasions too.
It does not support to raise tax to GDP ratio which has now declined to 9.5 percent and stagnating around less than 10% since many years. Tax to GDP ratio was 12% in 1980 and increased to 13% in 1990s now it is lower even in the region where average is 15% while in Europe it is ranging between 24 to 44 percent. Tax administration in Pakistan has targeted to raise ratio to 15-18 percent tax GDP in the coming 5 years.
In the past the promises of bringing Agriculture sector in to tax net, have been made but did not work. Now it has been warned by IMF that there is no escape, if Pakistan wants to continue with IMF program, it has to go for agriculture tax. It is observed that developing countries are gradually reducing the subsidies from their farmers while developed countries have been providing huge amount of subsidies to their farmer, which distort global production and trade.
These subsidies in developing countries discourage the competitive farmers to cultivate. There is a need to prepare an action plan to avoid the possible impact of expected crises and a long-term strategy is also required to increase the agricultural productivity in Pakistan.

Copyright Business Recorder, 2009

Comments

Comments are closed.