Dr Baig terms budget 2021-22 balanced

KARACHI: Former SVP FPCCI and secretary information United Business Group, Dr Mirza Ikhtiar Baig, has termed the budget 2021-22, a balanced budget.

Dr Mirza Ikhtiar Baig said under the prevailing situation of Covid-19 pandemic and pressure from the IMF, the budget highlighted core economic issues and their redressal. He appreciated the reduction in indirect taxes, withdrawal of 12 withholding taxes, reduction in sales tax, capital gain, and incentives for SMEs and IT sectors that would provide relief to the common man.

He said these initiatives could increase confidence of the investors in stock market. Dr Baig expressed concern on long period of 6 to 7 years to control circular debts already crossed Rs2,400 billion, in which 40 percent of the capacity charges are payable to government owned power plants, one of the main reason for increase in the circular debts.

The business leader said the government should reduce and contain them on priority but it seems that it wanted to transfer the issues to the next government. He said the proposed private sector committee to privatise or restructure the state owned loss-making enterprises, without having any mandate, would not be successful as under the prevailing law. He further said the power lies with the privatization board and formation of a private sector committee, after three years in the government, is not comprehensible.

He agreed with the government’s strategy to the revive agriculture sector and export-led growth for revival of the economy as Pakistan is becoming net importer of food items and important crops like wheat, sugar, edible oil, cotton, whereas at one time it was the net exporter of the food items in the region.