KARACHI: Karachi Chambers of Commerce and Industry (KCCI) has termed the proposed budget for the fiscal year 2023-24 (FY24) a comparatively “balanced one” under the tough economic and political circumstances of the country.
Addressing their post-budget press conference at KCCI, Chairman Businessmen Group (BMG) Zubair Motiwala said that 50 to 60 percent proposals of Karachi chambers have been incorporated in the proposed budget.
He said he will look into details of the finance bill, and then can give a detailed response over the budget.
Motiwala who is also the Chief Executive Trade Development Authority of Pakistan (TDAP) welcomed the decision of formation of PM-led Export Council, requesting the government to make sure the participation of the medium sized enterprises (MSEs).
He said Rs1,150 total outlay of public sector development program (PSDP) is appreciable.
He said government has announced some good steps towards agriculture sector. Agriculture is the backbone of the country for food security. The announcement of conversion of 50,000 tube-wells into solar, duty reduction on the import of raw material of solar panels, batteries, and inverters are right steps towards energy mix in the country.
Zubair said the government should allow cotton import from neighbouring India.
He said KCCI had proposed wheeling policy, but this was missing in the budget speech.
Announcements related to education, youth skill development program, laptop scheme, etc., are the goods steps the government is taking.
However, he said: “It was not an export-oriented budget. The finance minister did not announce any concrete steps towards exports enhancement. Our cost of doing business is going up due to high electricity rates and unfriendly business environment in the country.”
He was of the view that the ad-hoc increment on salaries of government employees is a bit ‘too high’ under the tough economic circumstances.
However, Mohammed Tariq Yousuf President KCCI said that government seems more focused on Agri-based economy, which is a good approach. The allocation of Rs30 billion for the conversion of 50,000 tube-wells to solar power, proposal for the removal of import taxes and duties on hybrid seeds, and a five-year tax exemption on Agri-based industrial units in rural areas with a yearly turnover of Rs 800 million are good steps to improve economy and industry.
He said the government has given no assurance on reducing electricity prices. Industries are facing gas supply issues. The government should also pay attention towards the exploration of gas resources. “The budget is comparatively easy from what was being anticipated. No harsh measures have been taken,”
Former KCCI president Haroon Farooqi said that except agriculture, nothing was there in the budget speech for the rest of sectors. He proposed that agriculture sector should also come under the tax net. He termed the budget as ‘election budget, and it is not going to be the final budget’.
Business leader Javed Bilwani said the budget offers nothing for enhancing tax net and exports.
Former president KCCI A Q Khalil said the government has ignored Karachi, the revenue engine of Pakistan. Only Rs 17 billion have been earmarked for the much-needed K-IV water project. Karachi contributes Rs 5000 billion revenue to the national exchequer, but in return, the port city is not being given its due importance at the federation level, he said.
Copyright Business Recorder, 2023
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