Prime Minister Shaukat Aziz terming the Budget 2007-08 as growth and development-oriented on Wednesday said it provides incentives and relief to all segments of society, including the businessmen and industry through simplification of tax procedures and rationalisation of duties.
"We want the traders, businessmen and industry to flourish, that is why efforts have been made to simplify the tax system through various measures", the Prime Minister told a delegation of the Lahore Chamber of Commerce and Industry (LCCI) Executive Committee, which called on him here at the PM House.
The delegation led by LCCI President Shahid Hassan Sheikh comprising Senior Vice President Yaqub Tahir Izhar, Vice-President Mubasher Sheikh and members of the LCCI Executive Committee.
PM's Adviser on finance Dr Salman Shah and CBR Chairman Abdullah Yousaf were also present in the meeting. The delegation hailed the government for presenting a relief-oriented and business-friendly budget, with a particular mention of the measures such as raise in salaries, upward revision in minimum wages, record allocations for development, support to the agriculture sector and an incentives package for retailers.
The Prime Minister said the government wanted to facilitate the businessmen and industry, with measures being taken to remove tax-evasion and create a true tax culture in the country through simplification of procedures for collection of taxes and duties.In this respect, he also referred to the installation of a state-of-the-art machine at Karachi Port for pre-clearance of the goods and products for their onward export to the United States.
The Prime Minister hoped that with various tariff and non-tariff measures announced in the new budget along with a subsidy of around Rs 70 billion for electricity, the cost of doing business in Pakistan, which was already less in the region, will further decline.
He, however, said there was a need to focus on productivity for which the government has initiated various skill enhancement programmes with the allocation of huge funds. The Prime Minister said the prices of essential kitchen items like flour, rice, ghee and cooking oils were also lower in Pakistan, when compared with the neighbouring countries. For example, he said, the price of flour, which is around Rs 22.50 per kg in New Delhi was available in Pakistan at an average rate of Rs 13 per kg.
Shaukat Aziz said with most of the economic indicators showing positive trends, the country's economy was performing well and Pakistan was on the path of growth, development and prosperity.
About electricity shortage, the Prime Minister said, owing to sustained growth in economy and the enhanced consumption level due to increase in sales of electrical appliances, there was a gap in demand and supply.
He, however, said the government was taking every step to meet the demand. The Prime Minister mentioned various ongoing and new projects, including Ghazi Brotha, Chashma Nuclear Power Plant, Mangla raising, and others which after completion will help remove the gap in demand and supply.
Shaukat Aziz also said as a short-term measure the government has imported two power producing units, each having 150 MW capacity, to meet the energy shortage. Besides, he said, the UAE will also give Pakistan some power generators as a gift.