Rs 503bn circular debt will be cleared within two months: Dar
The finance minister spoke on budgetary proposals in the National Assembly today.
ISLAMABAD (Web Desk) - Finance Minister Ishaq Dar on Saturday said that circular debt of over five hundred billion rupees will be cleared within sixty days, adding that Rs 326 will be cleared before the 30th of this month.
Winding up the debate on budgetary proposals in the National Assembly on Saturday‚ he said the government has announced several measures in the budget to gear up economic activities and generate employment opportunities for the youth.
The Finance Minister said that under the medium term plan‚ it has been decided to enhance investment to twenty percent ratio of GDP. This will create numerous opportunities for the skilled workers and youth.
He said volume of annual development plan has been increased to 540 billion rupees from 360 billion rupees‚ which is a record fifty percent increase.
The Minister said the Benazir Income Support Programme will continue and its volume has been increased to seventy-five billion rupees from forty billion rupees. He said now the beneficiaries of the programme will get 1200 rupees per month.
Regarding minimum wage‚ the Finance Minister announced to enhance the minimum wage to ten thousand rupees as was announced by Punjab and Khyber-Pakhtunkhwa provinces. He said on the demand of the members‚ tax slabs have been rationalized to put minimum burden on low income groups.
About the steps taken for the welfare of farmers‚ he said subsidy on fertilizers has been increased to 30 billion rupees from ten billion rupees. He said arrangements have also been made to ensure import of fertilizers on time.
Referring to the visit of IMF delegation to Pakistan‚ the Finance Minister said the government will have to contact IMF and other financial institutions to retire the debt taken by the previous government. He said we will have to pay over three billion dollars debt during the next financial year.
Regarding the demand to withdraw one percent increase in GST‚ the Minister said the country is passing through difficult economic situation and there is a need to put the country on the path of fiscal discipline and self-reliance. He made the commitment that GST rate will be reduced once the country s resources allowed us to do so.
The Finance Minister said it has been decided to impose ten to fifteen percent withholding tax on rental income in place of 17.5 percent. He said the tax rebate for researchers‚ teachers and non-profitable institutions is being revised to forty percent from seventy-five percent.
About tax on Hajj operators‚ he said it is not a new tax and we have only increased its rate to 3500 rupees from 2500 rupees. He clarified that this tax is not on Hajjis but on the income of tour operators.
