Budget 2018-19: Govt slashes PSDP, raises defence spending to Rs1.1 trillion

Outgoing PML-N govt presents a sixth full-term budget amid a raucous protest by opposition leaders.
Dawn.com Published April 27, 2018

The outgoing PML-N government's newly appointed Finance Minister Miftah Ismail presented a sixth full-term budget in the National Assembly on Friday amid a raucous protest staged by opposition leaders calling for a budget covering only the remaining three months of the incumbent government's tenure.

"This is a historic moment for the parliament that the 6th budget is being presented. A government cannot run for a day without the budget. The provincial governments cannot decide their budgets without approval of the federal budget," Ismail explained.

"We cannot interrupt the 5.8 per cent GDP growth. However the next government will have the right to make changes to the budget," he assured the opposition.

Salient features of Budget 18-19

  • The budget hikes current expenditures and cuts development
  • Bank borrowing estimated at Rs1,015.3bn, roughly 2.6 times the borrowing last year
  • Defence budget experienced a 19.5pc increase from last year

"Today's budget is a reflection of Nawaz Sharif's vision. We are missing him here today."

"In 2013 the PML-N government came to power and set up a programme for the economy. We faced certain challenges under the leadership of Nawaz Sharif. Serving the public was our only motivation," he added.

During Ismail's address, members of the opposition continued their protests through uninterrupted chanting. They surrounded his dais and threw papers in the air. Opposition members ripped apart copies of the budget while PML-N members encircled Ismail's dais to keep the protesters at a distance.

The budget speech began with the finance minister recounting the government's new tax package, through which it has lowered tax rates considerably.

Ismail said the government is using data mining and other technologies to catch tax thieves.

"We have given people one last chance to declare their domestic assets. We will catch them and prosecute them if they do not avail our tax amnesty package," he asserted.

"Due to high economic growth in the last five years, the size of the economy has increased unusually. It has risen from Rs22,385 billion in 2013 to Rs34,396 billion in 2018. The per capita income during this time has risen from Rs129,005 to Rs180,204," Ismail announced.

In the aftermath of the 7th NFC, the provinces have been issued an extra Rs2,500bn in eight years, and the federal government will have a reduced share in the NFC, he said.

Budget strategy 18-19

  • Expenditure for the government in FY18-19 has been set at Rs5.246 trillion.

  • The target GDP growth rate for the upcoming fiscal year has been set at 6.2pc against FY17-18's target of 6pc.

  • The government intends to keep inflation to below 6pc.

  • The intended tax to GDP ratio is 13.8pc, while net public debt is targeted to be contained at 63.2pc of the GDP. The budget deficit is also targeted to be contained at 4.9pc of GDP.

  • A $15bn target for forex reserves has been set in FY18-19.

  • As part of the budget strategy, social protection programmes will be continued in the upcoming fiscal year.

"Our macroeconomic policy aims to address the imbalances of the external account, while protecting economic growth," the finance minister said.

"Over the medium-term we propose to continue reduction of fiscal deficit, maintain a cautious monetary stance, and embark upon next generation of reforms for strengthening investment climate, export promotion, and energy sector. Priority should be accorded to reducing losses in the public-sector enterprises and expanding tax base."

Explore the complete Budget in Brief 18-19 document here.

Revenue

The total tax revenue target is Rs4,888.6bn, of which the FBR taxes comprise Rs4,435bn.

"This target will be achieved through improved tax steps and improved tax administration. The tax base is being expanded and the per cent of tax is being reduced," the finance minister said.

With the tax rates reduced for all tax brackets, the government expects the tax net will see a considerable increase as it estimates the revenues from direct taxes to increase next year, Ismail said. It also expects indirect taxes to increase by about Rs280bn, he added.

The non-tax revenue target has been set at Rs1,246bn, according to a copy of the budget 18-19.

The provincial share in tax revenue will be increased from Rs2,316bn to Rs2,590bn, Ismail added.

Expenditure

As expected, the budget hikes current expenditures and cuts development. This is the first PML-N budget to do so. The hike in current expenditures is roughly 20pc, while development expenditure has been cut 20pc.

The share of current and development expenditure respectively in the total budgetary outlay is 80.6pc and 19.4pc. Current expenditure has been estimated at Rs4,780.4bn, while development expenditure is set at Rs1,152.1bn.

Interest payments are expected to rise 18.9pc to Rs1,620.2bn. The government has also tried to keep everyone happy, jacking up the budget for defence expenditures by 19.6pc to Rs1,100bn; pensions by 37.9pc to Rs342bn; and the civil government’s operational budget by 23pc to Rs463.4bn.

Salaries and pensions

A 10pc ad-hoc relief allowance will be provided to civil and armed forces employees with effect from July 1, 2018, according to the budget speech 18-19.

A 10pc increase across-the-board is also being proposed for pensioners, Ismail said.

Considering the difficulties of low-paid pensioners, the minimum pension is being increased to Rs10,000 from the current Rs6,000.

Similarly, family pension will also be increased to Rs7,500 from Rs4,500 previously.

The minimum pension of pensioners above the age of 75 will be Rs15,000.

Defence

The defence budget has been set at Rs1,100bn from a revised budget estimate of Rs999bn in the previous year and a 19.5pc increase over the budgeted amount for last year.

The increase in the defence budget for 18-19 is the highest since the PML-N took over in 2013.

PSDP

The size of the FY18-19 PSDP has been estimated to be Rs1,650bn, of which Rs850bn has been allocated to the provinces, while Rs800bn has been allocated to the federal government.

According to the Budget Speech 18-19 document, "Additional resources of Rs230bn [in the PSDP] will be financed through autonomous organisations, public-private partnerships, and other means. Investments in the water, road infrastructure, electricity sectors and the China-Pakistan Economic Corridor (CPEC) will be protected."

Under the PSDP, Rs47bn has been allocated to the Higher Education Commission, Rs37bn for basic health and Rs10bn for the PM's Youth Programme.

Development expenditure outside the PSDP has been estimated at Rs180.2bn for FY18-19, which is 18.4pc higher than FY17-18 estimates.

Financing the deficit

The government intends to restrict the overall fiscal deficit to Rs1890.2bn or 4.9pc of the GDP, down from the revised estimates for the year 2017-18 which stood at 5.5pc, Ismail said.

While the government expects to raise 33.4pc more in external loans, it also faces a 137.7pc jump in repayments as loans mature. In maturing loans, long-term foreign loan repayments will rise 110pc to Rs601.8bn from last year, while repayments of short-term loans will jump 337.7pc to Rs174.2bn compared to Rs39.8bn a year ago.

To finance its Rs1,890bn deficit, therefore, the government will jack up borrowing from local banks by 160.2pc — from Rs390bn to Rs1,015bn — to finance its expenditures.

The government also plans to float Sukuk bonds. The government additionally expects to generate Rs200bn from the auction of treasury bills over the last year's budgeted figure, according to the Budget 18-19 document.

Exports

"Going forward, we plan to rationalise subsidies and concurrently reduce cost of production. We are making a beginning through this budget."

  • Five export sectors namely textiles, leather, sports goods, surgical goods and carpets shall continue to remain in zero-rated sales tax regime.

  • Reduced mark-up rates shall continue to be available as per SBP policy under Long Term Finance Facility and Export Refinance Facility respectively.

  • Incentives under various schemes of Textile Policy 2014-19 shall remain available during FY2018-19. Ministry of Commerce is also working on Strategic Trade Policy Framework 2018-23. An amount of Rs.10 billion is being allocated for various schemes under these policies.

  • Tariffs on various lines, which are mainly industrial raw materials, are proposed to be reduced. Details shall be presented in Part-II of Finance Bill. Tariff Restructuring shall increase competitiveness of exports and help in reducing the current account deficit.

  • Refunds: We are moving towards zero-rating of import materials for export sector which will significantly reduce creation of new refund claims. Refund claims currently pending will be cleared in a phased manner over the next 12 months starting 1st July 2018. After July 1, 2018 all new refund claims will be paid as per the time stipulated in law and regulations on monthly basis and there will be no delay.

Remittances

To further encourage remittances through formal channels, the government has decided to introduce a prize scheme for overseas Pakistanis. All home remittance transactions sent through commercial banks, exchange companies and other financial institutions will be included in monthly lucky draws. Details of the scheme are being finalized and shall be announced shortly by State Bank of Pakistan.

Social support

"The government will continue investment in social protection and the Benazir Income Support Programme, and will take steps for the underprivileged communities through targeted subsidy schemes. Rs125bn has been allocated to the BISP, while Rs189bn has been set aside for total subsidies. Rs10bn has been proposed for PM's Youth Scheme," the finance minister said said.

The federal government also intends to provide income support to more than 5m families, and has allocated funds to the Baitul Maal and Poverty Alleviation Fund for this purpose.

To further encourage remittances through formal channels, the government has introduced an incentive under which all home remittance transactions sent through commercial banks, exchange companies and other financial institutions will be included in monthly lucky draws, according to the Budget Speech 18-19.

Karachi package

The government announced a Rs25bn special package for development in Karachi.

"Since coming to power, the PML-N government successfully increased businessmen's trust and promoted economic activities in Karachi," the Ismail said.

"So far Rs16bn have been spent on the Green Line project in Karachi, but the Sindh government has been unable to issue contracts for the purchase of buses. Today I propose that if the Sindh government is unable to purchase the buses for Karachi, the federal government is ready to do so," the finance minister said.

"To address Karachi's chronic water shortages, the government is announcing large-scale desalination scheme to make sea water usable. This plant will be constructed through the private sector and will provide 50 million gallons of water a day," according to the budget speech.

Rs5bn will be allocated for the construction of roads, fire brigades and bridges in the coming fiscal year. Rs8bn will be set aside for expansion of the Expo Centre, he added.

'100.100.100' education package for children

A special package called the 100.100.100 programme focusing on children's development was announced by Ismail.

"This is the federal government’s commitment to ensure that 100pc of Pakistani children will be enrolled in schools, 100pc of children will be retained in schools and finally, 100pc will graduate from schools," he said, adding that the government would also pay for the transportation of female students to school.

"Even after 70 years, we the leaders of Pakistan have failed the children of Pakistan. We have denied them the light of education. No more. Even though education is a devolved subject, the federal government will help, both financially and administratively, each and every province to achieve this goal," Ismail asserted.

"This is not about politics and parties. This is a national commitment that I make today to the children of Pakistan. We will educate you. And we will insist on 100 100 100."

PM's Health Programme

The PM's National Health Programme, under which 3,000,000 families across Pakistan are already receiving coverage, will be extended to all districts in the country and will help us achieve the Sustainable Development Goals, Ismail announced.

"A survey will be held every two to three years to provide us better statistics," he added.

Another special package amounting to Rs10bn ─ along with a supplementary grant if necessary─ was announced for children's health.

"Thirty per cent of Pakistani children are stunted due to malnutrition and inadequate food, the finance minister said. "It will be tolerated no more," he said, adding that stunting would end by 2020. "This is the prime minister's promise."

PSDP

Energy

Key budgeted investments in the power sector, amounting to Rs138bn, are proposed as follows:

  • Rs27.5bn allocated for installation of two 600MW coal-fired power projects in Jamshoro, Sindh
  • Rs76bn have been allocated to the Dasu Hydro Power Project for stage one in Kohistan, KP
  • Rs32.5bn have been allocated to the Neelum Jhelum Hydro Power Project
  • Rs13.9bn have been allocated to the Tarbela Fourth Extension Hydro Power Project

"The government wants to introduce renewable energy in all sectors," Ismail said. "It is proposed that the 16pc duty on charging stations for electric cars be ended."

The customs duty on the import of electric cars is proposed to be reduced from 50pc to 25pc in addition to exemption from regulatory duty of 15pc, according to the budget speech.

Water

Overall, investment in the water sector will be increased from Rs36.7bn in 2017-18 to Rs79bn in 2018-19.

Rs 23.7bn will be allocated to the Diamer Bhasha dam. The dam will have 6.4 million acre feet live storage capacity and an installed power capacity of 4,500MWs. It will cost Rs474bn in total.

Roads

In the Budget 2018-19, an allocation of Rs310bn is proposed for projects including:

  • Khuzdar-Shahdadkot Motorway
  • 230km of the Lahore-Multan Motorway
  • 62km of the Gojra-Shorkot Motorway
  • 64km of the Shorkot-Khanewal Motorway
  • 91km of the Sialkot-Lahore Motorway
  • 57km of the Hazara Motorway

Rail projects

Under the China-Pakistan Economic Corridor, the government has finalised a plan to increase the speed of trains on the Main Line-I from Peshawar to Karachi by three times, according to the Budget Speech 18-19.

"The project envisages a doubling of the track from Karachi to Peshawar, and from Taxila to Havelian. This requires an investment of more than $8bn. This will enable people to travel from north to south in 12 hours or even less," the speech said.

Development of Gwadar

31 projects for the development of Gwadar are part of the proposed PSDP 2018-19 with an estimated cost of Rs137bn. They include:

  • Gwadar airport and its access road network
  • Improving port facilities
  • Development of a desalination plant for provision of clean drinking water
  • Upgradation of existing 50-bed hospital to 300 beds
  • Development of infrastructure for Gwadar export processing zone
  • Construction of a CPEC Institute
  • Construction of dams

Tourism

Highlighting the dismal state of hotel facilities at "excellent tourist spots", Ismail proposed customs duties on "cost-effective" imported pre-fabricated structures (not locally manufactured) be reduced from 20pc to 11pc "for the setting up of new hotels/motels in hill stations including Azad Jammu and Kashmir, Gilgit Baltistan and the coastal areas of Balochistan.

The use of pre-fab structures was suggested by Ismail as an alternative to the construction of hotels, which he said is "time consuming, with greater capital cost."

Agricultural sector

Agricultural production is slated to increase, Ismail said, with the government intending to continue implementing an agricultural policy in FY18-19 "until we end the tradition of subsidies".

Estimated loans to the agriculture sector will increase to Rs1,100bn, he said.

"A second green revolution is needed for advancement in the agriculture sector," the minister explained. "The next federal government will leave all decisions regarding subsidies to the provincial governments while the federal government's focus will be on providing a favourable environment for research and development, an increase in production, access to markets and improvement in technology."

"I am happy to announce that while we had proposed a 3pc sales tax on fertiliser, the PM has approved sales tax of 2pc only on the recommendation of Sikandar Bosan, the food security minister."

The 2pc reduction in GST on agricultural machinery has been proposed from 7pc to 5pc, while a relaxation in dairy and livestock taxes has also been proposed.

"Pakistan is the 5th largest cotton grower in the world but lags behind in exports of cotton products," Ismail observed. "In order to improve the quality and quantity, the subject of cotton has been handed over to the Ministry of Food Security and Research from the Textile Ministry."

"The govt is starting an Agricultural Support Fund with Rs5bn which will support research on new kinds of seeds and plants in order to increase agri output," the minister said, adding that another Rs5bn had been set aside for the promotion of agri technology.

Entertainment

The customs duty on import of drama and film-making equipment is being reduced to 3pc, and sales tax is being brought down to 5pc.

A revolving fund will be set up to financially support the film industry and needy artists, Ismail said.

A 50pc rebate on income tax for five years is being announced for people and companies investing in film projects, and income tax will be rebated at the rate of 50pc on foreign films being produced in Pakistan.

The government has also proposed the construction of 100 sport stadiums all over the country on a cost-sharing basis with provincial governments.

Other proposals

The government has proposed the federal excise duty on locally produced cigarettes "be enhanced in respect of Tier-1, Tier-2 and Tier-3 to Rs3,964, Rs1,770 and Rs848 per thousand cigarettes respectively, according to the budget speech.

Review of PML-N's performance

"Today we are the 24th largest economy in the world," Ismail told the lower house, reviewing the government's performance over the last five years.

"The GDP growth rate was 5.4pc last year ─ it has now grown to 5.8pc, the highest in 13 years," he recalled.

Explore: 'GDP to grow 5.8pc in FY17-18': PML-N govt unveils election year report card

"In the last five years, inflation has been kept below 5pc which was up to 12pc when we took over. The budget deficit will remain restricted to 5pc this year," he said.

"The State Bank policy rate was 5.7pc which was the lowest in decades, coming down from over 9pc. The lowest interest rate in history has brought an increase in businesses" he explained.

"Exports have been under pressure... Imports have increased 17pc because of high machinery imports," he said, adding that the current account deficit had increased Rs12bn in the first nine months of FY17-18.

"The government has made all efforts, and I am sure that foreign exchange reserves will be higher in June than they are today. In the ongoing year, foreign investment has risen from $1.9bn to $2.1bn."

Opposition's reservations

The opposition wants the government to present a budget only for one quarter, saying that the rulers cannot snatch the right of deciding a budget from the next government expected to come into power in August, after the general elections.

"I understand the pain for democracy and Constitution," said Prime Minister Shahid Khaqan Abbasi while addressing the Parliament. "We want to present the budget for continuity of the system. Whichever party comes can change the budget."

Addressing the opposition's reservation about Miftah Ismail, the newly appointed finance minister, presenting the budget, he said: "It is the cabinet's decisions and nothing unconstitutional about this."

'No right to present full-term budget'

At the outset of the session, Opposition Leader in the National Assembly Syed Khursheed Shah protested against the outgoing PML-N presenting a full-term budget instead for the remaining three months of its tenure.

Opposition Leader in the National Assembly Syed Khursheed Shah speaks in National Assembly on Friday. — DawnNewsTV
Opposition Leader in the National Assembly Syed Khursheed Shah speaks in National Assembly on Friday. — DawnNewsTV

"Unfortunately, the government is snatching the right of the next assembly with today's budget," said Shah. "My wish is that whichever party wins the elections, has the right to present the budget."

"This government has no ethical right to present the budget for the entire year."

"This mandate is given when a person comes into Parliament after being elected," he continued. "What pains me is that Nawaz Sharif champions the narrative 'vote ko izzat do' [respect the vote], yet you [PML-N] are destroying the honour of vote."

"You had an elected minister, Rana Afzal, but you brought in a person with no mandate through wrong interpretation of the Constitution," said Shah referring to the appointment of Miftah Ismail as the finance minister on Friday morning.

"I always say respect the Parliament and make it supreme; but once again, you are making decisions outside the Parliament. This is the first time an un-elected person is presenting the budget."

"Could PM Abbasi not have presented the budget? Even the chief minister has presented budget in the past," pointed out Shah.

Shah Mehmood Qureshi of Pakistan Tehreek-i-Insaf (PTI) shared the same sentiments as Shah, saying: "Instead of an elected minister, you [PML-N] are giving the mandate to present the budget to an un-elected person."

"A new tradition is being set," he alleged. "The leader of the opposition has said there is no moral justification for the government to present the full-year budget."

He highlighted that the budget being presented had not been endorsed by the National Economic Council (NEC). "Three CMs — of Sindh, KP and Balochistan — walked out from the meeting. What kind of democracy and government is this where three provinces are strongly expressing their distrust of the Public Sector Development Programme (PSDP), yet you want to endorse it."

Speaker Ayaz Sadiq urged the opposition leaders to keep their statements short so that the "group picture of MNAs" could be taken while there was still light.

Comments (80) Closed
Concerned Citizen
Apr 27, 2018 05:49pm
In my opinion Budget is crucial for smooth running of governments. If people have an ambiguity than please have a look at US recent government shutdowns. No doubt an elected member should have presented but whatever they did was within law. And politicians should look for general good of people. A defined financial path for year of elections certainly empowers care taker government and gives time to new governments to adjust.
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Ahmed
Apr 27, 2018 05:54pm
What a sad budget
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Jk
Apr 27, 2018 05:54pm
If noon league comes again there will major changes in this comic presentation.
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Ob
Apr 27, 2018 05:55pm
"Today's budget is a reflection of Nawaz Sharif's vision. We are missing him here today." Goof bit of apple polishing. Well done newly appointed Finance Minister. The above sentence alone has wiped out any respect people had for your academic achievement.
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Humayun
Apr 27, 2018 05:55pm
24th largest economy in the world? Population wise?
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Alba
Apr 27, 2018 05:55pm
Pakistan's people were surveyed to be one of the world's happiest people. Apparently the politicians are not. They are never happy.
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Mahmood
Apr 27, 2018 05:58pm
Deceptions, creative accounting, fudgeing the numbers and cloaking the real problems behind fancy charts and graphs. That's what we should expect from the new budget. Call me cyncical, but I simply do no trust a single official in this government and what they promise. I take everything put out by them with a pinch of salt. The truth may be somewhere in between. Or may not be truthful at all. Only time will tell.
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SkyHawk
Apr 27, 2018 05:59pm
Who gave right to an un-elected person Mr.Muftah Ismail to present full term budget right before elections?
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Art KP
Apr 27, 2018 06:01pm
This is not budget, this a plan and conspiracy theory to paint next govt as a bad guy in public opinion. PMLN govt is future MQM London.
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A&A
Apr 27, 2018 06:03pm
“Ismail said the government is using data mining and other technologies to catch tax thieves” Please look around you can see a lot next to you....
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LetPeacePrevail
Apr 27, 2018 06:03pm
Shah sahab, should the people stop breathing as well and wait till for to next government allows and directs them how to do so? What a great leadership. True test of the system is its ability to continue working despite the fact who is at the helm. The captain may adjust course but the county must progress and that comes with economy, govt. budget is an important wheel on this vehicle - steering wheel. Peace
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ABE
Apr 27, 2018 06:11pm
So, how much Tax did this himself, paid last year? I am more concerned about tranparency and everyone fulfilling their duties truthfully! If we later found out that he evaded taxes or cooked up the books to avoid paying any tax, than his own credibility will be questionable.
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Desi Dimag
Apr 27, 2018 06:14pm
How much you are going to borrow?
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RAHMAN SHAIKH
Apr 27, 2018 06:15pm
What great job are the elected members doing that unelected can't do ?Elected are just interested in salaries and don't even bother to attend and those who do attend have no agenda except to promote chaos.
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SkyHawk
Apr 27, 2018 06:23pm
"Due to high economic growth in the last five years, the size of the economy has increased unusually. It has risen from Rs22,385 billion in 2013 to Rs34,396 billion in 2018. The per capita income during this time has risen from Rs129,005 to Rs180,204," Ismail announced. Pakistan, drowned deep in foreign debts and liabilities, is sinking deeper and deeper with each passing moment, almost on the verge of economic collapse. Pakistan's economy can not and will not survive the maturity of over $89bn in external debts and liabilities this year.
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Suleman
Apr 27, 2018 06:24pm
This budget is a joke! A finance minister appointed for the purpose of presenting the 2018/19 budget. What is PML(N) up to? Why put Miftah in an embarrassing situation?
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Taimur
Apr 27, 2018 06:25pm
@Humayun Yes, 24th largest economy despite corruption and terrorism. Just imagine if we get rid of this curse then where shall we stand in the world. Get rid of the current political and religious leadership, give opportunity to honest people who do not sell dreams and religion
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Falcon1
Apr 27, 2018 06:34pm
How much of this budget a sheer fantacy and how much is real? When the auidit is done by the IMF, we will surely know the truth! What percentage is 'missing' or 'unaccounted for'?
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Truth
Apr 27, 2018 06:39pm
@Taimur Where did you come up with this fanciful number!? Pakistan ranked at # 41 in terms of GDP in 2017. #24 last year was Poland. Don't confuse a European country - no matter how small, with third world economy of a country mired in corruption and mismanagement.
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Adil
Apr 27, 2018 06:42pm
An unelected person has been tasked to present the budget for next year...so much for'vote ko izzat du'!!
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Bitter Truth
Apr 27, 2018 07:04pm
42% of Pakistani population is illiterate but they have no shame in spending Rs 1.1 trillion on defence!!! Just think if Pakistan maintains good relations with neighbours than this entire money can be spent on education.
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Zane
Apr 27, 2018 07:09pm
Sad state of affairs, 30% of the money will go to pay the interests on the debt this gov't has taken in last 4 years.
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talax
Apr 27, 2018 07:16pm
@Concerned Citizen 4 months' budget should have been more than enough. They didn't need to announce it for a tenure that they possibly might not see in power. It creates confusion for the people if a heavy revision occurs by the next government.
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Ps
Apr 27, 2018 07:16pm
Nobody even seems to question why defense is reading up all resources
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Rashid lodhi
Apr 27, 2018 07:23pm
In prima facie, budget will have beneficial effects on government employees and business community.
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Dr Mughal - UK
Apr 27, 2018 07:24pm
“Today's budget is a reflection of Nawaz Sharif's vision. We are missing him here today." Which vision are you talking about Mr Miftah Ismail? You mean corruption???
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Taimoor sultan
Apr 27, 2018 07:32pm
So many critics commenting here. When was the last time any of you said something positive about the economy or politics of Pakistan? It's easier said than done. IK doesn't have a magic wand nor did Benazir or any other elected government of the past. Pakistan should be proud of its achievements. The threat of terrorism, extremism and foreign interest in destabilising the country has done nothing to dampen the spirits of our nation. The divide in Pakistan is not so much of the rich and poor but of people who do something to make a difference and people who do nothing but criticise and pass negative comments.
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Shamin
Apr 27, 2018 07:37pm
First time, an un-elected, hourly interim FM presenting budget! What joke on the sanctity of vote!
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optimist
Apr 27, 2018 07:42pm
Why so much on defense at the expense of health, infrastructure and education. In this nuclear era there will be no large scale war.
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Patriot
Apr 27, 2018 07:46pm
"Due to high economic growth in the last five years, the size of the economy has increased unusually. It has risen from Rs22,385 billion in 2013 to Rs34,396 billion in 2018. The per capita income during this time has risen from Rs129,005 to Rs180,204," Ismail announced. Such deceitful data presentation to make a fool of public. USD to PKR was close to 90 at start of 2013, and stands at 115 today. Which means pak economy stood at $248b compared to 295$ today. Over a period of 5 years that amounts to a rough gdp growth of 3.5 percent. And when one talks about the size of an economy, it’s always absolute numbers not PPP terms. Therefore Pakistan ranks 42nd and not 24th. Numbers don’t lie, people do.
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Iqbal
Apr 27, 2018 07:48pm
Govt is pulling down in the roads of Soviets. We must understand that India is a power of different league. We shouls not try to match them and outspend on defence. Once war started they will catch us by neck within days..
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Tariq
Apr 27, 2018 07:52pm
A budget based on borrowed money and no details of re payments sums up the story. And people here are celebrating and cheering. What a joke I being made of people.
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Meesaq
Apr 27, 2018 07:56pm
Relief to salaried class not announced
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Shoaib
Apr 27, 2018 08:03pm
Opposition is protesting well they are doing it for the last 5 years. Nothing new.
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Adnan Ahsan
Apr 27, 2018 08:16pm
@Meesaq Both military and civil pensions and salaries are set to increase in the coming year.
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IaB
Apr 27, 2018 08:17pm
Defence budget is surely going to DHA, AWT and other housing schemes!
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M. Asghar
Apr 27, 2018 08:24pm
A delusional budget under the choking shadow of a debilitating foreign debt!
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Gaz
Apr 27, 2018 08:25pm
Checked all lists and Pakistan is either 41st or 43rd so yes this educated guy has now become a proper Noon leaguer an expert lier by saying Pakistan is 24th largest economy.
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Gaz
Apr 27, 2018 08:28pm
@Taimoor sultan but Musharraf did because in 9 years he trippled the size of Pakistan economy from 60 billon dollars to 180 dollars. The democrats did not even double it 10 years.
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Ali
Apr 27, 2018 08:29pm
What is the reason why our defense expenditure continues to sky rocket but our citizens are deprived of basic security? A country where people dont have access to basic health and education should not splurge on defense. What a disappointment.
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alla bux
Apr 27, 2018 08:31pm
So much on defense and so little on education and health. Pakistan story never changes. Population figures are all wrong. Our population is over 215 million at the last count per our official census. Our per capita GDP has actually shrunk. But we use whatever figures are convenient to us. Fudging at its best.
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Attaullah
Apr 27, 2018 08:38pm
The budget is good for the country and the people of pakistan. A good relief for salaried class in term of income tax.
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NACParis
Apr 27, 2018 08:41pm
Budget nothing but political stunt to fool poor Pakistanis by Nawaz
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Javed
Apr 27, 2018 09:11pm
This should be a teachable moment that the financial year should be syncronised with the calendar year to avoid such confusion in future.
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MONIER
Apr 27, 2018 09:13pm
Statistics can be manipulated and used to make misleading results
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Political connoisseur
Apr 27, 2018 09:18pm
As far as Mifta Ismail is concerned, he is well educated in Finance, he has a good job record at IMF. He can deliver good to Pak, provided he is not on payroll of IMF.
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Iqbal
Apr 27, 2018 09:44pm
Any budget which is vision of a corrupted persom ( Nawaz) is not acceptable to masses as well as parliament.
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naim
Apr 27, 2018 10:40pm
The budget says nothing about decreasing the imports or increasing exports. On the contrary, the budget minister in his speech was threatening to seize people's dollar accounts in the country by blaming them to be instrument of money laundering. He will do a great service to the enemy if he actually adopts this policy.
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Ayesha Sadozai
Apr 27, 2018 10:53pm
A poor show. The only sensible budgeting for Pakistan must include drastic reductions/cuts in military spending and in non-developmental overheads. This budget, however, goes about doing just the opposite.
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cuban
Apr 27, 2018 11:14pm
Lower taxes, borrow more, and raise defense spending. That really make sense to anyone? At some point in time Pakistan is going to have to come to grips with reality - spending money on the military doesn't create wealth and we can't keep borrowing to fund things that don't create wealth.
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Irfan
Apr 27, 2018 11:35pm
A cut in developmental expenditure cuts and a hike in defence expenditure.what are our priorities?why don't we defend our ppl from diseases, illiteracy and poverty. 60 percent of ppl living below poverty line in Pak but the priorities of govt are in stark contradiction. Hope sanity prevails among the poor.
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Anand
Apr 27, 2018 11:44pm
No one will invade a country that is a asset to the World and not a threat. Time has come to increase invests in positive growth segments: Infrastructure, Education, Industry, Foreign Relations
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Mehmood
Apr 27, 2018 11:54pm
There is nothing wrong in presenting budget for a year and does it matter if presenter is nonelected. What matters is his capability and what is being presented. He has done a good job in limited space he had.
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Javed
Apr 28, 2018 12:59am
This budget means little because a supplemental will be coming out after the elections anyway.
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Imran
Apr 28, 2018 01:12am
What about the budget to repay all those loans from past 20/30 years?
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ARIF
Apr 28, 2018 01:27am
Such a high jump in defense expenditure means that the situation is still not good.
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Majnu
Apr 28, 2018 01:33am
How many of you know that Rs.999bn with Dollar to PKR at 105 last year is the same as Rs.1100bn with Dollar to PKR valued at 115.6 both of them roughly sum to the same estimate $9.5 billion.
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Bitter Truth
Apr 28, 2018 01:37am
@Gaz funny!!! Where did u get these kind of figures source please
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Shafiq Shah
Apr 28, 2018 01:37am
Not a good budget. Expected Revenue Rs.4435 billion. Expected Expenditure Rs.5933 Billion. Deficit of Rs.1500 bn. Question: How to meet. Answer: By printing money. Net result flood of inflation.
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Rehman
Apr 28, 2018 02:03am
As per this budget, our annual military budget of Rs. 1100 billion (or 1.1 trillion) is 21% of our total budgeted expenditure of Rs. 5.246 trillion for next year. That amounts to 21% of our annual expenditure. That is a stupendously huge amount for a developing nation like ours. It is no surprise that at the end we are left with no money to spend on other nation-building activities such as health, education, etc. There is no prospect of our economy improving as long as we spend such a large amount on defense and military alone.
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Bleed Green
Apr 28, 2018 02:13am
@RAHMAN SHAIKH that doesnt mean you opt to neglect the norms and rules and invite non-elected person to the most powerful stage of the country just to show the budget It just shows the incompetence of govt and their "Don't care anymore" attitude. Sad
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Bleed Green
Apr 28, 2018 02:20am
"he said, adding that the current account deficit had increased Rs12bn in the first nine months of FY17-18." Its $12bn not Rs12bn, Please get your facts straight Mr.Miftah Ismail. Exports are almost dropped by $6bn as compared to 2013. Your govt have done a terrible job. Stop fooling the poor people of Pakistan.
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Shah
Apr 28, 2018 03:46am
Better on defence then in the politicians private pockets as I have lost all faith in government helping the poor.
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Robert
Apr 28, 2018 05:23am
@Ayesha Sadozai I totally agree with you. It is the economic development that matters. Pakistan is getting about 5% growth per year which is good but not good enough. It needs to double that so the people-- the real owners of Pakistan-- can have better standard of living . Let us not forget that the former Soviet Union did not had any shortage of military hardware but the country fell apart because of economic reasons.
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Your Friend
Apr 28, 2018 05:46am
Rs47bn Higher Education Commission Rs37bn for basic health And Rs 1100 bn for defence Where are we heading??? Growth is 5.8 % Good!!!
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Mo
Apr 28, 2018 06:51am
@SkyHawk other elected officials have given him right....-;)
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Himmat
Apr 28, 2018 07:37am
@Ayesha Sadozai Defence budget must be increased to maintain balance with neighbours.
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R
Apr 28, 2018 07:47am
Spend more budget on education that forgotten as usual. Earmark 30% at least and see what miracle happens within few years.
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ayesha
Apr 28, 2018 07:53am
Rs 1.1 trillion is justva fraction of what our neighbours are spending on defence. Also all our tech is either brought from outside or on lease .
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Ekansh
Apr 28, 2018 08:47am
It is the common person that will suffer.
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fRedIndian
Apr 28, 2018 08:47am
That’s like US$ 10 Billion! One third of the debt servicing liability for 2018! What a bad move.
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Arif Jan
Apr 28, 2018 08:59am
If this type of budget had presents 2 or 3 year back, N league should get some sympathy of people.
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Ali Vaqar Awan
Apr 28, 2018 10:23am
Still budget continues to be non people friendly budget as per usual. We ordinary public continue to suffer.
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Saud BUKHARI
Apr 28, 2018 10:56am
The defence expenditure increase is insufficient. It should have been increased by 25% at least. Our enemy is increasing its defence spending by 30% every year.
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Indian
Apr 28, 2018 11:03am
Good going
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Ali
Apr 28, 2018 11:41am
Excellent budget, I was talking with my colleagues all praised the budgets, especially reduction in taxes,---- however, one thing although done in good faith may have adverse effect on construction and real estate business---it is the ceiling of 4 millions rupees that a non-filler is allowed to buy property---- ask any real estate agent, he will tell you that the main buyer of property is expatriate Pakistani----the first thing any expatriate do after earning is to build or buy roof over his head in Pakistan----this ceiling of 4 million rupees would be harmful for expats---Government should reconsider the ceiling---or place in practical and workable procedures that would excempt expats from the ceiling.
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KAMESH
Apr 28, 2018 02:47pm
For Child Education.. For Industries, For Production, For Manufacturing, For Basic Infrastructure, For Amenities, For Women empowerment, For Science Research, For Medical Research, For Energy Sector, For Water Management, For Sewage Management, For Space Science, For Medical Science, For Information Technology, For Economical Development....??? nothing ... But for Defence... !!! Growth is neglected...
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BakhT
Apr 28, 2018 04:57pm
@Saud BUKHARI : Such a sad state of Pakistan and you Mr. Bukhari - Indian Defence budget went up by 7.8% of their allocated budget last year.
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Adil Jadoon
Apr 28, 2018 07:20pm
No one pays tax in that country. The system is set up to encourage corruption but asking huge amounts in taxes and duties to ensure no man woman or child will pay that amount to the govt. but a reasonable amount to the corrupt!
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SHAHID SATTAR
Apr 28, 2018 07:41pm
Whom are you trying to befool? That hype you used is something we have been hearing year after year for so long we could have verbatim quoted you, and that too, ahead of you. If only you could be more truthful and instead of painting a rosy picture, just for once, spoke the bitter truth.
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