SUNDAY MARCH 04: Hafeez sees around four percent growth in fiscal year 2012: CGT implementation to be finalised in April

KARACHI: Finance Minister Dr Abdul Hafeez Shaikh on Saturday said Pakistan's economy is progressing towards self-reliance and the country's GDP growth will remain around four percent in the current fiscal year. "After a gap of three years, the country's GDP growth rate at four percent will be a sign of strength for our national economy," he said while talking to media at Jinnah International Airport, Karachi on the occasion of Karachi-Lahore inaugural flight of Bhoja Air.
The minister said the economy is progressing towards self-reliance with positive growth in the country's revenues, exports and remittances. "Our tax revenue has increased by 27 percent in FY12 over the last fiscal year," he said, adding that the average monthly remittances have crossed $1 billion mark while the country's exports are also increasing.
He pointed out that government has allocated Rs 300 billion for development and 74 percent funds have already been released. The provinces have been given additional Rs 900 billion under the NFC Award. Later, talking to reporters at Lahore Airport, the Finance Minister said that all details regarding Capital Gains Tax on share trading would be finalised in April 2012.
When asked about his announcement regarding implementation of CGT on capital market, he said there are some issues about the implementation of this tax on shares trading. "We are working on it and hopefully all details would be sorted out by April this year," he said. All incomes should be under the tax net, he added. Regarding energy crisis, the finance minister said the government is working on various options to resolve this issue. The government has initiated various projects including construction of Diamir-Bhasha Dam, Pak-Iran Gas Pipeline Project and Thar Coal Project to address the power shortage in the country, he said, adding that the government is also focusing on good governance in the public sector entities to improve their performance.
Speaking at a ceremony on the occasion of Karachi-Lahore inaugural flight of Bhoja Air held at a local club in Lahore, the finance minister said it is a good day that a private sector airline is re-launching its operations in the country. The rising economy and increasing air traffic has encouraged the airline to re-launch its operation in the country, he said and added that the entry of Bhoja Air would enhance competitiveness in the airline industry. He said more than 1000 new job opportunities would be available and connectivity between different cities across the country would increase after re-launch of operations of Bhoja Air.
He hoped the airline would do good business due to increasing air traffic and improving country's economy. He assured the management of Bhoja Air that of all possible support. "We are there in the government to facilitate you," he said. He said the private sector can play important role in the economic growth of the country.
Speaking on the occasion, Arshad Jalil, Managing Director of Bhoja Air said it is a good day for them as they are re-launching operations. "We are starting with four Boeing 737-200 and one 737-400 aircraft on four domestic routes," he said. From March 15, 2012 there would be daily flights on Karachi-Lahore, Karachi-Islamabad, Karachi-Multan, and Karachi-Sukkur, he said.
He said the company's operations on international routes would start from April 15, 2012. Muhammad Farouk Bhoja, Chairman Bhoja Air told Business Recorder that the airline is re-launching its operations after a gap of almost 12 years.
"Besides the four domestic routes ie Karachi to Lahore, Islamabad, Multan and Sukkur; we also have five international routes including UAE, Qatar, Kuwait, UK and USA," he said. He said air traffic is increasing at the average rate of 12 percent every year and hoped his company will do good business. Bhoja Air is now third operational private sector airlines in the country after Air Blue and Shaheen Air.