Mujtaba heaps praise on federal, Punjab govts for improvement in economy

LAHORE: Provincial Finance Minister Mujtaba Shuja-ur-Rehman Monday said that inspiring economic progress has been made by both the federal and Punjab governments during the past eight months with a good improvement in economic indicators. He highlighted that the Punjab government had presented a tax-free budget of 5.5 trillion rupees aimed at facilitating businesses.

He was speaking at the Lahore Chamber of Commerce and Industry (LCCI). LCCI President Mian Abuzar Shad presented the address of welcome while Senior Vice President Engineer Khalid Usman, former President Muhammad Ali Mian and Executive Committee Members also spoke on the occasion.

The Minister congratulated LCCI President Mian Abuzar Shad for winning LCCI polls with thumping majority.

The Provincial Minister credited Prime Minister Shehbaz Sharif and Chief Minister Maryam Nawaz, along with their teams, for improving the overall economy. He mentioned that the stock market had set records, interest rate was stabilized around 17 percent and inflation, which had been around 30 percent for three years, had decreased to approximately 11-12 percent.

LCCI President Mian Abuzar Shad congratulated the Provincial Finance Minister on the historic budget for Punjab. He emphasized that traffic, which accounts for 83 percent of the pollution, is responsible for smog, while industries contribute only seven percent. He stressed that closing industries is not a solution; instead, installing environment-compliant modern equipment in industries is crucial.

The Minister said the value of the dollar had stabilized around 280 rupees and was expected to decline further next year. He observed a shift in investment from real estate to manufacturing.

Mujtaba Shuja-ur-Rehman stated that the announced projects in the budget had already begun. By the end of next year, the first phase of the Nawaz Sharif Hospital in Sargodha will commence operations in cardiology and the first phase of the Nawaz Sharif Cancer Hospital in Lahore is set to be operational by 2025 and provide free treatment for the underprivileged.

He also discussed various initiatives including a free heart surgery programme for children, e-bike programme for 30,000 students initiated by Chief Minister Maryam Nawaz successful school nutrition programs and field hospital projects.

He mentioned the ongoing shortage of 80,000 teachers in Punjab, with efforts underway to fill these gaps. He also indicated a focus on addressing the shortage of doctors. He said IT education and film city projects in Lahore had been inaugurated while only IT sector of Punjab had the export potential of $2 billion.

Under the “Dastak” programme, 60 services will be available at the doorstep and the opening of solar tube wells planned by the end of this year. The “Sharm Farming Project,” which has export potential, has also been launched, alongside the Green Tractor Scheme providing a subsidy of 1 million rupees per tractor. The “Apni Chhat” programme offers interest-free loans up to 1.5 million rupees.

The Provincial Minister emphasized that the industry is not being pressured regarding environmental issues but is encouraged to comply with regulations. A budget of 300 billion rupees has been allocated for road restoration under the “Prosperous Punjab” initiative.

Mian Abuzar Shad highlighted the need for vertical buildings to address space shortages and pointed out that Punjab has a sales tax rate of 16 percent on services, compared to 13 percent in Sindh. He urged for an immediate reduction of this rate in Punjab and advocated for the elimination of the Punjab Infrastructure Development Cess.

He also criticized the Federal Board of Revenue’s significant increases in property valuation rates in 56 cities across the country, calling for a review of this decision. Mian Abuzar Shad reiterated that Punjab’s industries contribute 50 percent to the GDP.

Senior Vice President Engineer Khalid Usman suggested reducing utility prices for industries and emphasized that SMEs in the country receive less than 6% of private sector financing, with approximately 65 percent of SMEs based in Punjab. He urged for the provision of collateral-free loans at favourable rates for SMEs to access technology.

Former Lahore Chamber President Muhammad Ali Mian also discussed the issues faced by the trading community and potential solutions in detail. He urged the Finance Minister to allocate funds for infrastructure development in the market.

Copyright Business Recorder, 2024