Government Sets Direction To Streamline Dwindling Economy

ISLAMABAD, (UrduPoint / Pakistan Point News - 11th Dec, 2018 ) :With a focus to reach out to the poor, the Pakistan Tehreek-e-Insaf government despite inheriting worst financial and current account crisis has taken major policy initiatives for financial discipline and long-term socioeconomic development.

After inheriting deteriorating macroeconomic indicators, the PTI government remained successful in straight-lining the key financial areas including taxation, governance, fiscal management, and industrial sectors.

While briefing to Prime Minister Imran Khan about the performance of finance ministry during first 100 days of the government, Minister for Finance Asad Umar said that in order to improve governance, all unlawful appointments had been removed including presidents of National Bank of Pakistan, Zarai Taraqiati Bank Ltd, SME Bank and First Women Bank, besides two deputy governors of State Bank of Pakistan (SBP), and chairperson with two members of Competition Commission of Pakistan (CCP).

He said the government also made merit-based appointments by selecting new NBP President, Chairperson Benazir Income Support Programme (BISP), two Commissioners of Securities and Exchange Commission besides revamping policy board of SECP, hiring two new members of SBP Board and constituting for the first time the Federal Board of Revenue (FBR) Board.

In a bid to protect the vulnerable communities, the government initiated "Sehat-ka-Insaaf" programme for Islamabad Capital Territory and erstwhile FATA amounting to Rs.1.5 billion, he said.

Under Workers' Welfare Board, the finance minister said, an amount of Rs 4.5 billion was allocated for completion of 8,276 low-cost houses which are under construction, while the government also announced construction of additional 10,000 units.

Furthermore, the minimum pension rate of EOBI pensioners has also been increased by 10 percent to benefit, 350,000 pensioners, whereas GST on petrol was reduced from 15 percent in May to 8 percent in December this year, while on diesel, the GST was reduced from 27.5 percent in May to 13 percent in December.

"In order to provide maximum relief to the downtrodden people, Tandoors were exempted from gas price increase whereas low gas consumers have also been protected from high gas price increase as it increased 10 percent to 25 percent for upto 300m3 consumption per month against 143 increase in gas price for high end gas consumers" the minister added.

Meanwhile, the government also cut GST on LPG from 17 percent to 10 percent and abolished regulatory duty of Rs.4,669 per tonne which resulted in reduction of LPG cylinder average price from Rs.1600 to Rs.1100.

For sustaining the continuously decreasing exports, economic support package for targeted export industries was introduced under which gas price was reduced for 5 zero-rated export sectors including textiles, jute, leather goods, sports, and surgical goods.

Customs duty was also reduced on import of raw materials for value-added export sector.

Further the government also revived industrial support package for all industry by decreasing electricity price of Rs 3 per unit, besides fixing electricity rate for export sector at 7.5 cents per unit.

For broadening the tax base, FBR took several initiatives to identify potential tax payers by sending over3,000 notices to high net worth non-filers, whereas 20,000 notices are in pipeline.