KARACHI: Finance Minister Asad Umar has confirmed that the planned mini budget will be unveiled on January 23, 2019. This update came during his visit to the Karachi Chamber of Commerce and Industry (KCCI), where he elaborated on the government’s intentions behind this financial move.
Initially scheduled for January 21, the presentation of the supplementary finance bill was postponed to January 23 due to Prime Minister Imran Khan’s foreign visit. Minister Asad Umar emphasized that the mini budget’s primary objective is not to increase revenue but rather to promote investment and alleviate the tax burden on the business community.
Umar explained that enhancing investment is a key driver for economic growth and stressed that Pakistan’s savings rate is among the lowest in the world. The government’s priority, therefore, is to stimulate savings and investment in the country.
The Finance Minister pointed out that the current economic environment in Pakistan is consumption-driven, which has contributed to a significant trade deficit. He expressed the government’s commitment to improving exports as a measure to address this issue.
Notably, the mini budget is expected to target individuals with substantial incomes and assets rather than expanding the tax net to include a wider population.
Moreover, Asad Umar highlighted the government’s desire to increase trade with regional countries. He acknowledged challenges in improving trade with India, Iran, and Afghanistan due to various issues but emphasized Pakistan’s interest in fostering both political and trade relations with India.
The Finance Minister also hinted at potential tax concessions for the stock exchange in the upcoming mini budget, aiming to create a favorable environment for investment in the stock market.
During the KCCI meeting, Siraj Kassem Teli, Chairman of the Businessmen Group, raised various issues that needed immediate attention. One of the major concerns highlighted was the provision of gas supply to industries. He emphasized that while the government had assured gas availability for industries, gas utility providers had stopped the supply, causing disruptions.
Teli stressed the importance of uninterrupted gas supply, and the matter ultimately had to be resolved by the Prime Minister, who removed senior officials from both gas utility providers. He urged the Finance Minister to find a permanent solution to this issue. Additionally, Teli called for guaranteed gas supply to Sindh and the nationwide distribution of liquefied natural gas (LNG).
