KARACHI: The Finance Supplementary (Second Amendment) Bill, 2019, presented by the PTI government, is perceived to have a nominal impact on revenue collection, with a predominant focus on stimulating industrial growth.
According to Rehmatullah Khan Wazir, former Member of the Federal Board of Revenue (FBR), the supplementary budget seems to have minimal input from the FBR, emphasizing its orientation towards economic development.
Commenting on the bill, Wazir noted that it appears to be more of an economic package rather than one with significant provisions aimed at boosting revenue. The second mini-budget, presented in the parliament on January 23, 2019, claimed to prioritize the promotion of investment, industrialization, and agriculture.
Wazir, in an interview with PkRevenue.com, stated that the reform package primarily focuses on growth, investment, and relief measures. He emphasized that it carries limited provisions with a pro-revenue impact. The former FBR Member pointed out that the package aims to reduce the cost of doing business, particularly for exportable goods, and anticipates that it will spur economic activities.
“It would promote the banking/financial market, stock market, SMEs, agriculture, FDI, and renewable energy projects such as solar and wind energy projects. Above all, it would restore the confidence of local and foreign investors,” said Wazir.
While acknowledging the potential short-term losses for the government, Wazir believes that in the long term, the measures introduced in the supplementary budget will contribute to revenue generation. The emphasis on economic growth and investment-friendly policies aligns with the government’s broader agenda of fostering a business-friendly environment, attracting foreign investment, and supporting key sectors of the economy.
The Finance Supplementary Bill is seen as a strategic move to address economic challenges, enhance competitiveness, and create an enabling environment for businesses to thrive. As Pakistan seeks to position itself as an attractive destination for both local and foreign investors, such measures are crucial to stimulating economic growth and building a resilient and sustainable economy.
The effectiveness of the provisions introduced in the supplementary budget will become clearer in the coming months as businesses, investors, and policymakers assess their impact on various sectors of the economy. While immediate gains may be limited, the long-term vision of the government is aimed at fostering a robust and dynamic economic landscape for Pakistan.
