The business community has termed the Federal Budget 2007-08 as a relief package for general public and election budget and said it did not come up to their expectation. They appreciated relief package given to general public, increase in salary of government servants and pensioners, pension increase of EOBI, incentive package for agriculture sector and food subsidy.
Talking to newsmen after listening the budget speech of State Minister for Finance, Omar Ayub Khan on Sturdy, President Karachi Chamber of Commerce and Industry (KCCI) Majyd Aziz said that the budget was overall better than last year''s.
He said that the only concern of business community was increase in labour minimum wages that would hit the cost of production adversely. Majyd Aziz said the budget was a good relief package for general public, which deserves this package.
He said that the government had adopted no measures to curtail down food inflation. Now it was time that government must adopt measures to curtail down food inflation.
He said the business community was expecting from the government to announce reduction in income tax, sales tax and other taxes. The KCCI president said that they were also expecting that the government would do something for addressing energy crisis but nothing was observed in the budget.
Regarding relief package through utility stores, Majyd Aziz said it was good step, adding that instead of providing relief through utility stores a comprehensive place should be made to curtail down the prices. Utility store network was very small and establishing 5,000 more utility stores would take time, he added.
He also appreciated Rozgar scheme and added that it''s scope should be increased. All banks should be allowed to provide loan under Rozgar scheme, he demanded. About group companies sharing losses, he said it was an appreciable step, which was practised all over the world.
Referring to textile sector, he said, it was expected that government would announce some concrete measures to save this sector but very little had been done in this regard. KCCI former president, Siraj Kassim Teli said that the budget was overall a relief package for general public.
He appreciated increase of pension under EOBI, pension of government officials and increase in their salaries. He termed the budget as best election budget and said government deserves to present such a budget keeping in mind of coming elections.
He said the KCCI presented very limited suggestions this year, few of them had been accepted. Former President of KCCI, Zubari Motiwala said that providing huge subsidy might increase inflation.
He said inflation was bad for the country but not bad always. Explaining his point of view, he said that inflation increases trade activities. He said that the subsidy provided on kitchen items should be passed on to general public and should not be misused.
He welcomed move of reducing tax on stock exchange. KCCI leader Haroon Farooki said that the budget was lacking in providing relief in-respect of cost of doing business in the country. He said that the increase in minimum wages would directly hit cost of industrial production.
He said that local industrial products were already un-competitive in local markets as compared to imported items. KCCI sub committee on construction and housing Chairman Munir Sultan termed the budget public friendly. Regarding construction of 250,000 houses in four provinces of Pakistan, he said that there was a shortage of approximately 7 million housing units in the country. Constructing only 50,000 housing units in each province in five years was not enough.
He demanded of the government to lift ban on allotment of plots and initiate low-cost housing schemes in collaboration with businessmen and developers. KCCI Vice President Saqib Naseem emphasised the need of proper utilisation of allocations made for relief package.