Muhammad Ali Tabba
CEO of Lucky Cement

For me, this is a balanced budget. Realtors are not happy because the sector is almost undocumented and undervalued. In future, the property value has to be declared very close to the market value. For the textile sector, I believe the government will announce an export package soon.

Ahmed Kuli Khan Khattak
CEO of Ghandhara Nissan

The whole process of this budget is illegal. No previous government has done this. It is a last-ditch effort of the present government to make the maximum of a lost cause.

Shabbar Zaidi
Senior partner and chairman of A.F. Ferguson & Co

I think this is a significant budget as far as the correction of the tax regime is concerned. Some major steps have been taken for bringing in the untaxed into the tax net. A major amendment has been made with respect to the property acquisition. Moreover, the wrong system of property evaluation has been abolished.

The second important step is the evolution of the presumptive tax on importers. Presumptive tax is basically a red law. It promotes fund augmentation.

Thirdly, the incidence of tax on the corporate sector by opponent shares and the saturation of the reserves has gradually been abolished, and it’s a step in the right direction. The rates of the companies are going to be reduced in a­­­­ phased manner which is a great idea.

Another positive step is that the budget target has only been increased by 11 per cent which is quite reasonable compared to the last year. It’s a reasonable, achievable target.

Abdul Razak Diwan
Director of Gatron Industries Ltd

I believe that the budget impacts each sector in a different way, which is why I am giving a sectoral breakdown below:

Textiles (Positive)

The government has maintained the zero-rating status of the sector, whereas it has also proposed an improved mechanism to clear outstanding and new rebates.

Refund claims currently pending will be cleared in a phased manner over the next 12 months starting 1st July 2018.

After 1st July 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.

The Long-Term Financing Facility (LTTF) and Export Refinance Facility (EFS) at lower rates will too continue; however, there was no mention of Export Finance Scheme (EFS).

The finance minister also mentioned that the government is set to announce another export-related policy, which we believe will bode well for the textile sector.

Tyres (Positive for General Tyre and Rubber Company, Service Industries)

Chemicals (Positive for Lotte Chemical Pakistan)

The withdrawal of customs duty on two catalysts, ie hydrogen bromide (11pc) and palladium on carbon (3pc), for use by the PTA industry is a positive step.

Gas distribution (Positive)

To address cash flow issues of gas distribution companies, it is proposed that the rate of sales tax may be reduced from 17pc to 12pc on import of LNG and supply of RLNG.

Banks (Neutral)

Withholding tax on banking

transactions for non-filers will be reduced to 0.4pc from 0.6pc, which could

potentially increase overall banking transactions.

Autos (Negative)

Non-filers shall not be permitted to purchase new motor vehicles manufactured in Pakistan or new imported vehicles.

Steel (Negative)

Increase in sales tax on electricity to Rs13 per unit from Rs10.5 per unit will have negative impact.

Syed Nabeel Hashmi
Auto parts exporter and former chairman of Papaam

In my opinion, the budget for 2018-19 is negative for the automotive sector. The reduction in duty and exemption from regulatory duty on electric cars will put pressure on local car assemblers. The government should have announced special tariffs for completely knocked down kits (CKDs) of electric vehicles to encourage their local production. The import duty on completely built-up units (CBU) should have remained at the existing level.

The decision to allow import of vintage and classic cars on a flat duty is liable to be misused.

The measures restricting non-filers from purchasing new locally assembled vehicles will push them towards used cars, thus incentivising imports over the domestic industry. This decision is not understandable when the auto sector has contributed significantly towards the overall growth this year.

The tax cuts for individuals and businesses are a positive step. Probably, the government had no option in the election year but to give a budget that is supportive of the industry. In the last five budgets, the government has done nothing but hurt the manufacturing sector and honest taxpayers.

Kaiser Waheed
Former chairman of Pakistan Pharmaceutical Manufacturers

At its core, this is a populist budget and that is what has been said in the media as well. It is an election-year budget. Concrete steps have not been taken and the gap between expenditures and revenue has been widened.

The pharmaceutical industry totally rejects this budget. It saddens us that the businessman who presented the budget and who knows how important the premise of national health is for the country did not, as per my knowledge, give importance to any of the pharmaceutical industry’s suggestions.

The revenue minister quite vehemently stressed the importance of our proposals regarding machinery, equipment and BMR. However, Finance Minister Miftah Ismail, who illegally presented the budget, opposed all our amendments.

On behalf of the Pakistan Pharmaceuticals Manufacturers’ Association (PPMA), we condemn his refusal to consider any of our suggestions. The pharmaceutical industry was envisaging that in this budget, if our recommendations were accepted, pharmaceutical exports could touch $1 billion in the upcoming two to three years.

Gohar Ejaz
Senior Aptma group leader

It is a disappointing budget for the textile industry. The government has neither announced any policy measures on energy pricing nor has it continued the export package.

How is the government planning to meet the current account deficit when it has discontinued the current policy, which resulted in a 10 per cent growth last year after four years of continuous fall?

Published in Dawn, The Business and Finance Weekly, April 30th, 2018