ISLAMABAD:
Finance Minister Senator Ishaq Dar here on Wednesday took pains to
dispel the impression that the new budget was for the rich and ignored
the poor. He insisted that the government had taken steps to make the
poor self-reliant and stand on their own feet, and that no one will be
allowed to increase the prices of commodities in the name of budget.
Yet, in his post-budget press conference, the finance minister was evasive, did not allow stinging questions and took up most of the time repeating the text of his budget speech, so much so that a senior journalist lost temper and walked out of the briefing.
Ishaq Dar said the federal budget’s main thrust was on increasing exports and that was why the government had taken the revolutionary step of establishing the EXIM Bank of Pakistan, which will act as a catalyst in improving exports.
However, he dispelled the impression that the budget was for the rich only and not for the poor, saying the government had imposed taxes on the rich and taken many relief steps to cater to the vulnerable segments of the society.
He said if the benchmark of $2 a day income was kept in view, then 90 million people were living below the poverty line in Pakistan and the government was very concerned about them as this was the class which needed the utmost attention of the government.
“To this effect, the government has increased the allocation for the Benazir Income Support Programme to Rs118 billion from Rs75 billion under which the monthly stipend for the poorest of the poor has been increased to Rs1,500 from Rs1,200. We have decided to make them stand (self-reliant) on their feet and to this effect the government will take many initiatives.”
However, the minister did not mention at what speed the middle class was getting squeezed and why poverty was on the increase.The minister also did not say why he did not increase the CGT (Capital Gains Tax) on securities and also avoided to reply to questions about the impact of the mammoth reduction in subsidy for electricity consumers by Rs80 billion from Rs245 billion to Rs156 billion.
The press briefing was regulated in a way that no concerned journalist could raise pertinent and precise questions and when some of them tried to highlight some critical issues, the minister adopted an evasive attitude and kept on repeating what he wanted to highlight.
The minister consumed most of the time in repeating the budget speech and left insufficient time for the question-answer session. During his speech, one senior journalist lost temper and left the press briefing. It seems all was done in a deliberate attempt to avoid the stinging questions.
The minister also skipped the question on money laundering that was raised in the context of MQM leader Altaf Hussain, but the questioner took up the issue, pinpointing that some ‘influential’ people who were also involved in money laundering in the past were still in the government.
However, the minister only said that the government would facilitate him (Altaf Hussain) as he was of the Pakistani origin and added that the government was in the process of updating the money laundering law in Pakistan in the light of recommendations of financial action task force.
When pointed out that in the budget there was no mention of PTCL proceeds of $800 million that Etisalat owes to Pakistan, the minister said that this was a seven-year-old dispute under which 131 properties of PTCL were to be handed over to the said company and out of 131, only 32 properties were left which are to be handed over as they all could not be transferred. “I have exerted pressure on the company through diplomatic quarters so that the company should pay $600 million out of $800 million to Pakistan and I hope that I will be able to resolve this issue soon.”
Mentioning the major steps for growth in exports, the minister said that the setting up of the EXIM Bank of Pakistan will enhance the export credit and reduce the cost of borrowing for the export sector on a long-term basis and will help reduce their risks through export credit guarantees and insurance facilities. The bank will provide liquidity to exporters.
Under the Exports Refinance Facility (ERF), he said the government, through the State Bank of Pakistan, had arranged to reduce its mark-up rate on exports finance from 9.4% to 7.5%, which will bring it in line with the rate prevailing in the countries competing with Pakistan, which will reduce the financial cost of exporters by 2%.
He also said the State Bank of Pakistan had arranged long-term finance facility to reduce its mark-up rate on long-term financing facility for 3-10 years duration from around 11.4% to 9% from July1, 2014, which will reduce the financial cost of exporters by 2.4%.
Dar said that drawback for local taxes and levies will be given to exporters of textile products on the FOB values of their enhanced exports if increased beyond 10% (over the last year’s exports) at the following rates: the duty drawback to be given to exporters on garments by 4 percent, made-ups 2 percent and processed fabric 1 percent. “Mark-up rate for export refinance scheme of the State Bank of Pakistan is being reduced from 9.4% to 7.5% from 1st of July 2014.”
To a question, the minister said that in the first phase many SROs valuing Rs130 billion had been withdrawn. He also repeated many proposals that were given in his budget speech on Tuesday.
Yet, in his post-budget press conference, the finance minister was evasive, did not allow stinging questions and took up most of the time repeating the text of his budget speech, so much so that a senior journalist lost temper and walked out of the briefing.
Ishaq Dar said the federal budget’s main thrust was on increasing exports and that was why the government had taken the revolutionary step of establishing the EXIM Bank of Pakistan, which will act as a catalyst in improving exports.
However, he dispelled the impression that the budget was for the rich only and not for the poor, saying the government had imposed taxes on the rich and taken many relief steps to cater to the vulnerable segments of the society.
He said if the benchmark of $2 a day income was kept in view, then 90 million people were living below the poverty line in Pakistan and the government was very concerned about them as this was the class which needed the utmost attention of the government.
“To this effect, the government has increased the allocation for the Benazir Income Support Programme to Rs118 billion from Rs75 billion under which the monthly stipend for the poorest of the poor has been increased to Rs1,500 from Rs1,200. We have decided to make them stand (self-reliant) on their feet and to this effect the government will take many initiatives.”
However, the minister did not mention at what speed the middle class was getting squeezed and why poverty was on the increase.The minister also did not say why he did not increase the CGT (Capital Gains Tax) on securities and also avoided to reply to questions about the impact of the mammoth reduction in subsidy for electricity consumers by Rs80 billion from Rs245 billion to Rs156 billion.
The press briefing was regulated in a way that no concerned journalist could raise pertinent and precise questions and when some of them tried to highlight some critical issues, the minister adopted an evasive attitude and kept on repeating what he wanted to highlight.
The minister consumed most of the time in repeating the budget speech and left insufficient time for the question-answer session. During his speech, one senior journalist lost temper and left the press briefing. It seems all was done in a deliberate attempt to avoid the stinging questions.
The minister also skipped the question on money laundering that was raised in the context of MQM leader Altaf Hussain, but the questioner took up the issue, pinpointing that some ‘influential’ people who were also involved in money laundering in the past were still in the government.
However, the minister only said that the government would facilitate him (Altaf Hussain) as he was of the Pakistani origin and added that the government was in the process of updating the money laundering law in Pakistan in the light of recommendations of financial action task force.
When pointed out that in the budget there was no mention of PTCL proceeds of $800 million that Etisalat owes to Pakistan, the minister said that this was a seven-year-old dispute under which 131 properties of PTCL were to be handed over to the said company and out of 131, only 32 properties were left which are to be handed over as they all could not be transferred. “I have exerted pressure on the company through diplomatic quarters so that the company should pay $600 million out of $800 million to Pakistan and I hope that I will be able to resolve this issue soon.”
Mentioning the major steps for growth in exports, the minister said that the setting up of the EXIM Bank of Pakistan will enhance the export credit and reduce the cost of borrowing for the export sector on a long-term basis and will help reduce their risks through export credit guarantees and insurance facilities. The bank will provide liquidity to exporters.
Under the Exports Refinance Facility (ERF), he said the government, through the State Bank of Pakistan, had arranged to reduce its mark-up rate on exports finance from 9.4% to 7.5%, which will bring it in line with the rate prevailing in the countries competing with Pakistan, which will reduce the financial cost of exporters by 2%.
He also said the State Bank of Pakistan had arranged long-term finance facility to reduce its mark-up rate on long-term financing facility for 3-10 years duration from around 11.4% to 9% from July1, 2014, which will reduce the financial cost of exporters by 2.4%.
Dar said that drawback for local taxes and levies will be given to exporters of textile products on the FOB values of their enhanced exports if increased beyond 10% (over the last year’s exports) at the following rates: the duty drawback to be given to exporters on garments by 4 percent, made-ups 2 percent and processed fabric 1 percent. “Mark-up rate for export refinance scheme of the State Bank of Pakistan is being reduced from 9.4% to 7.5% from 1st of July 2014.”
To a question, the minister said that in the first phase many SROs valuing Rs130 billion had been withdrawn. He also repeated many proposals that were given in his budget speech on Tuesday.
LODI:
The shareholders of Italy's Banco Popolare on Saturday gave final
approval to a 1.5 billion euro ($2.1 billion) capital increase to be
launched on March 31.