Govt admits price hike, revenue shortfall in NA

ISLAMABAD: Admitting dearness during the period from July to December, 2020, the government informed the National Assembly on Thursday the Sensitive Price Indicator (SPI) and Consumer Price Index (CPI) are recorded at 14.9 percent and 11.1 percent respectively.

In written reply to a question, the Ministry of Finance said that rise in inflation is mainly due to delay in policy adjustments required during the financial year 2018. The government has to take difficult decisions of upward adjustment in overdue gas and electricity prices, market-based exchange rate adjustments, increase in interest rates etc. to correct the macroeconomic imbalances.

Furthermore, increase in international commodity prices like palm oil, soyabean oil, crude oil, pulses etc. also played a role in increase in dearness.

The House was further informed that the Federal Board of Revenue (FBR) faced revenue shortfall of Rs211.1 billion upto November, 2019 during the ongoing fiscal year. The minister for revenue in a written reply said that the FBR collected Rs1,617.4 billion against target of Rs1,828.5 billion during this period.

The FBR collected Direct Tax Rs626.7 billion against target of Rs557.5 billion; Sales Tax Rs763.8 billion against Rs698.3 billion, Federal Excise Duty Rs111.4 billion against Rs98.2 billion and Custom Duty Rs336.7 billion against the target of Rs263.4 billion.

The National Assembly was also informed that 13 projects worth about 11 billion dollars have been completed under the China Pakistan Economic Corridor (CPEC) project.

Parliamentary Secretary for Planning and Development Kanwal Shauzab told the House during question hour that another 13 CPEC related projects worth eighteen billion dollars are under implementation whilst 21 billion dollars projects are in the pipeline.

The parliamentary secretary said 46 percent work on the Gwadar East Bay expressway has been completed. She said the New Gwadar International Airport is being built with the Chinesegrant which will be the largest airport in Pakistan.

Minister of State for Parliamentary Affairs Ali Muhammad Khan told the House that 124,587 people availed the Assets Declaration Scheme launched by present government last year. He said over Rs62 billion were recovered under this scheme. Ali Muhammad Khan told the House that the federal government has allocated Rs152 billion during the current fiscal year for the development of tribal districts.

Parliamentary Secretary for Commerce Aliya Hamza Malik told the House that the country’s exports have enhanced by 4.79 percent during the first five months of current fiscal year. She said that trade deficit stands reduced by thirty five percent which is a big success.

The SBP Banking Services Corporation Amendment bill was also laid in the House Thursday. Responding to a calling attention notice, Minister for Power Umar Ayub said that Rs300 million have been approved for the upgradation of a grid station in Chitral District and electrification of adjoining areas there. He said the PTI government is determined to the development of Chitral.

Umar Ayub said Pakistan is a peace loving country and Prime Minister Imran Khan has promoted the positive and soft image of Pakistan by opening the Kartarpur corridor. He said the Sikh community across the world is recognising and acknowledging this very positive step of Pakistan. He said the world on the other hand is criticising discriminatory steps of Indian government against minorities and demanding withdrawal of its citizenship act. Minister for Communications Murad Saeed said the benefits of economic stability achieved by the country in the year 2019 will now be transferred to the masses. He pointed out that the government has launched Sehat Insaf Card scheme under which the card holders can get medical treatment up to Rs720,000 at the public and private hospitals. He said the process to distribute 5.7 million Sehat Insaf cards has been started.

He said 53480 people would be provided with these cards in the federal capital by March this year. He said the distribution of these cards to all the families in tribal districts will be ensured during the current year.

The minister said the government has now launched a relief package worth Rs6 billion through Utility Stores for provision of essential commodities to the people at reduced rates.