The budget 2023-24 is balanced with special focus on drivers of growth and is industry friendly under the present challenging economic environment.

Key suggestions submitted by Rawalpindi Chamber of Commerce and Industry (RCCI) have been added to the budget documents which was satisfactory, the chamber’s president, Saqib Rafiq, said.

The concept of prioritising the ‘five Es’ was a positive sign, the business community hopes that priorities set by the government will be carried forward by the subsequent governments too.

RCCI has always pushed for promoting non-conventional sectors like IT, gems, minerals, and tax exemption on the import of machinery for mineral development is good for diversification of the economy.

“We feel that tax exemption on solar panels will ease load at the national grid and help promote environment-friendly power generation.”

The Rs450 billion for Benazir Income Support Programme will help eradicate poverty and eventually promote business and commerce activities at the local level.

The Islamabad Chamber of Commerce and Industry (ICCI) is all out in favour of the federal budget and the measures taken by the government to contain the trade gap and rising inflation.

Keeping in view the economic crisis faced by the country and the external factors, the budget was a positive move for the economic recovery, ICCI President Ahsan Bakhtawari said.

He expressed confidence that initiatives taken to promote sectors such as agriculture, IT and construction will help steer the economy out of its current position.

He also supported the 35pc enhancement in salaries, saying it will improve the purchasing power of government employees who live in a significant number in Islamabad.

The ICCI also supports increase in pension amount disbursed through the EOBI.

Measures suggested to promote IT and IT exports is an encouraging sign as it is the field of the future and upcoming growth is all linked to a strong IT base.

Islamabad Industrial Association (IIA) President Ahmed Waheed, however, criticised the federal budget on the grounds that it reflected a traditionalist look and too much incentives had been given to the agriculture sector, which was actually a provincial subject after 18th amendment. The modern tools of economy include manufacturing that has been ignored in the budget. There is a need for reforms in FBR to develop the trust of industries and manufacturing sector.

Besides, Pakistan is dependent on import of raw materials and serious measures are needed to make raw material import cheaper as it was rendering exports uncompetitive. The energy shortfall solution is only a superficial measure because industries cannot be operated at solar power.

Mobile phone manufacturing sector that suffered due to the lack of production in recent past will revive after the budget, as overall confidence of business community had been restored. The budget also has another angle - with political stability the confidence of the business community will be restored, Pakistan Mobile Manufacturers Association (PMMA) Chairman Abdul Rehman said.

However, the measures announced in the budget should be implemented in its true letter and spirit while the challenges faced by the mobile manufacturing sector have to be addressed.

The association has been demanding the government reduce the cost of input for localisation of mobile phone accessories and parts that will eventually make exports competitive.

While the government wanted IT and IT service exports to rise to $4.5 billion in the next fiscal year, it is expected to be less than $3 billion in the current fiscal.

“But how will we achieve it? There is nothing new in this budget to help enhance IT exports. The current tax rate has been maintained for the next three years, but this was actually a high tax that led to decline of exports,” Pakistan Software Houses Association (P@SHA) Chairman Zohaib Khan said

There were some incentives for the freelances, but the freelancers are reluctant to get registered with the FBR and this too is a negative sign. The authorities have to understand and convert Pakistan into a modern economy that is based on R&D, service sector, IT etc.

Mr Khan said it was essential that policy commitments were made by the state for at least 10 years.

Published in Dawn, June 10th, 2023