KARACHI: Business community on Friday received the budget positively, saying it was not as tough as expected given the plight of the economy.
“The enhancement of tax exemption limit for salaried class from existing Rs600,000 to Rs1.2 million is a step in the right direction under the grim economic circumstances,” said Shabbir Hassan Mansha, Vice President Federation of Pakistan Chambers of Commerce and industry (FPCCI), recording his budget reaction.
“This move will benefit the salaried persons and accelerate the business and commercial activities in the country.”
Mansha said the government had also announced plans to accelerate infrastructure development activities at special economic zones, which would attract both local and foreign investment.
“The previous governments have time and again announced development of Port Qasim for the last 25 years but to no avail.”
He said the government should bind Port Qasim Authority to develop the port for attracting investment.
“The finance minister did not announce any practical steps for food security, which is one of the major challenges faced by the country, ” the FPCCI head said.
The government should have come up with a policy related to cold storage facilities, which would actually benefit the farmers.
“Our farmers are forced to dispose of perishable fruits and vegetables due to non-availability of proper cold storage in the country.”
Mansha said the government had announced some incentives on import of plants and machinery, which was a good step to promote industrialisation, but no incentive was announced for corporate farming.
“Drip irrigation technology will help cultivate deserted land as it consumes seven times less water, while modern farms will enhance production.” He also lauded the withdrawal of sales tax on seeds and urged the government to regulate this sector, arguing the inferior quality or seeds was damaging crops, causing huge financial losses to farmers.
Muhammad Idris, President Karachi Chamber of Commerce & Industry (KCCI), termed the budget as positive for the country and thanked the new government for presenting a good budget in just two months.
“Although details are still to come out, the budget vibes seem positive,” said Idris talking to the media after the federal budget announcement.
He commended the government for removing duty from solar panels import by agreeing to the demand of industry. Idris also praised the government for introducing an alternate dispute resolution (ADR) mechanism which, he said, was a longstanding demand of the industry.