Budget

Asad Umer presents Mini Budget for Ongoing fiscal Year

Finance Minister Asad Umer presented the Amendments in the budget in the National Assembly Session on Wednesday for ongoing fiscal Year.

Finance minister Asad Umer presented the amendments in the budget today in the session of the National assembly.

“You do not need to be an economic expert to realize the economic conditions of Pakistan”

He lamented on the last government

Prime Minister Imran Khan and other top-tier of all political parties were in attendance to the national assembly session.

Imran Khan also shed lights on his visit to Karachi and regarding providing nationality to Bengali and Afghan people living in Pakistan for more than 50 years.

Foreign Minister Shah Mehmood Qureshi also made a speech and without a single doubt Foreign minister’s speech was a great balance of political battle and development.

And in the end, while presenting the amendments in the budget, Umer recalled that the deficit had increased from 4.1 from PPP’S government to 6.6 Percent at the end of the last government’s tenure.

“We are facing the same issues what we were facing five years before, the country stands at the same place where it was before five years back”

He also said that the facial deficit could touch 7.2 Percent in FY19.

He said that the current account deficit has increased from 2.5 billion dollars in 2012-13 to 18 Billion dollars in 2019.

“In the five year’s terms of the last government, the foreign debt has been increased by 34 billion dollars, and on the other hand, the foreign exchange reserves continued to decline rapidly.

The launch of new iPhone has made PTI’S government mull over as at least 2, 3 billion dollars goes away from Pakistan in terms of purchasing the phones.

Either they will have to ban the Importing of high-ended smartphones or at least put a heavy duty on them and they went for the letter.

Key Points:

  • The government has withdrawn to increase the energy prices, the Gas prices would be increased by ten percent but they also would hit the high consumption users.
  • The relief of at least five billions has given to export industry
  • Minimum pension has been increased to 10,000 rs
  • Duty on the expensive mobile phones to be increased
  • Duties on 1800 cc vehicles are set to be increased by 20 percent
  • Taxes on tobacco to be increased, while in the previous budget the tobacco prices were declined
  • WHT on banking transactions for non-filters would be increased to 0.6 percent
  • Non-filler would be able to buy the vehicles now; the ban has been lifted now

Finance minister also shed light on the announcement of the health cards.

PTI’s government successfully executed the plan in KPK and there this only thing provided them a great margin to win in KPK
Finance Minister said that this Health Card would benefit about 4.5 million people with 540,000 RUPEES being provided per family in Fata and Islamabad.

This will be in the form of that “Sehat card”, and this would cover up the medical expenses of a family, and a poor would be able to get the medical facility even in the premium hospitals in the country.

He added more that same scheme would go for the Punjab People, and the provincial government is going to introduce the infrastructure very soon in the province as well.

In the ending month of the term of PML-N, they too introduced the same types of plans, but due to a deficit of the budget, the plan could not be executed, and the cards went wasted.

Finance Minister promised to take the other parties with him, he added
“We need to decide, not the government, but the parliament together, if we want to continue like that”
“He also shows the difference between the projected budget and actual budget expenditure of the last government, and that is a whopping amount of 890 Billion dollars.

He added

“The government overestimated revenues by 350 Billion rupees; they understated the expenditure of 250 billion rupees knowingly. There is a difference of 890 billion rupees.”

He made it clear that this is the difficult time, and we are going to take some bold steps, and we are trying to make that burden to fall on those who can bear it without breaking their banks.

The poor are already over-stressed with the ongoing mess, and we are not going to fall that burden on them.”

He also made it clear that bailout is not the solution for our deteriorated economy, the Country grows when economic grounds and our industry grows, our people grow”

The proposed amendments in the Budget also included the removal of Regulatory duty on raw materials used by the exports.

Taxes:

  • Budget deficit to bring down to 5.1 percent
  • Federal development budget cuts by 250 bn rupees
  • Increased federal excise duty on imports of 1800 cc cars, and duties on expensive mobile phones
  • Taxes relief has been revoked for a salaried person earning more than 200,000 per month
  • The tax rate for highest income tax slab increased from 15 percent to 30 percent
  • Custom duty increased for more than 5000 luxury items
  • Sehat Cards Approval for FATA and Islamabad capital territory

And he also cleared out the buzz on increasing the energy prices, he stressed the major five portions which are included in increasing our exports will get the energy on the regional rates.

He also told that we have already provided 5.4 billion rupees for the completion of the housing scheme for laborers and expenditures.And as soon as they are built, we will go ahead and start working on 10,000 more.

He added that the government has taken bold steps and we are all eyes on reviving the textile industry in Faisalabad where the machinery was being sold on scrap rates and we have given them 54 bn benefits for the textile industry.

We have the only priority, protect the poor, and protect the exports.

During his speech, he also shed light on the issues of farmer facing in increasing the Urea and other equipment necessary for farming.

He said the 6,7 billion rupees subsidy has been approved for the formers, and provision of urea would be ensured to increase the production and to take the imports up to 100,000 tons from abroad.

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