Business Community out-rightly rejected the federal budget 2009-10, terming it a budget of bankers and prepared on the dictation of World Bank and International Monitory Fund (IMF). The businessmen of the twin-cities called it a disappointing and anti-poor budget, which not only would discourage investment but also have negative impact on the overall economic steering.
At an emergency meeting the Rawalpindi Chamber of Commerce and Industry (RCCI) rejected the budget, terming it against the business and trade community. Addressing a press conference, RCCI President Asad Mashadi said that it was a fact preparation of a perfect budget under the present circumstance was not possible. However, he said, the government completely ignored the fruitful recommendations sent by the business community.
The government, he said, neither incorporated the recommendations of business community nor gave any incentive to the industrial sector. He said that after the budget it was clear that the there was no chance of investment and the government would itself face serious difficulties in term of job creation and achieving revenue targets.
The RCCI President pointed out that though the government increases some allocations in health, education and for Benazir Income Support Programme but again the funds were shifted from PSDP, which would have negative impact on the economic situation. With non-availability of incentives for the Auto mobile and construction sectors in the budget, unemployment would increase as these sectors have significant role in provision of employment and reducing poverty, he added.
Mashadi welcomed the decision to increase 15 percent in the salaries of the government employees, but, he said, it is much less as compare to the current ratio of inflation, which has increased from 20 to 35 percent and likely it would further increase in the coming days.
He was of the view that the government again ignored the textile sector, which is disappointing. Assad said that Rs 70 million has been allocated for Benazir Income Support Programme, which would have no role in overcoming unemployment. This amount, he said, should have been allocated for overcoming the unemployment instead of distributing it in the shape of cash.
The new revenue target amounting Rs 15 billion from the oil sector would further increase petroleum products prices and the burden would be passed on to consumers, he maintained. Commenting on the budget, former President Islamabad Chamber of Commerce and Industry, Ijaz Abbasi said that the budget was very hard for the poor masses and business community. This is neither people friendly nor business friendly budget, he added. He added that the entire budget was made at the dictation of IMF and World Bank.
The further said that the new taxes on service and real estate sectors would further aggravate poverty and unemployment. Instead of taxing these productive sectors, the non-development expenditure should have been curtailed for providing relief to the masses. Due to imposing new taxes on the service and real estate sector, he said, unemployment would further increase. In short, he said, this budget is not people friendly budget, but it is for the International Banks.