Last Updated on 23/01/2022
A total of Rs 2,135 billion has been allocated for PSDP, which is 37% more than last year.
Federal Finance Minister Shaukat Tareen presented the budget for the financial year 22-2021 in the National Assembly.
As soon as the budget speech began in the National Assembly sitting chaired by Speaker Asad Qaiser, the noise started from the opposition benches, and slogans were chanted.
Addressing the budget session, Finance Minister Shaukat Tareen said that it was an honor for him to present this third budget of the PTI government.
Under the leadership of Prime Minister Imran Khan, we have brought the fleet of the economy out of many storms and brought it to shore. There are difficulties but the economy has been given a solid foundation.
He further said that they have faced these difficult situations and are on the way to success. This success would not have been possible without the exemplary leadership of the Prime Minister.
“Everybody knows what conditions we inherited, we were facing bankruptcy due to huge debts,” he added.
Delivering a budget speech, the Federal Minister said that we have a current deficit of ڈالر 20 billion in current dollars, 25 25 billion in imports, during which exports grew by minus 0.4 percent while imports grew by 100 percent.
He further said that the interest rate was artificially kept low and all the loans were taken from the SBP which created a severe imbalance in the financial volume, the volume of loans from the SBP reached a dangerous level of Rs. 70 trillion. went.
The finance minister said the budget deficit was 6.6 percent of GDP, the highest in five years, and foreign exchange reserves were largely boosted by borrowing.
Which was 6 6 billion in June 2013 and increased to 20 20 billion at the end of 2016, but in the last two years of the PML-N government, it dropped sharply to just 10 10 billion Debts had risen sharply.
Highlights of Budget Speech 2021-22:
Federal excise duty imposed on mobile phone calls, internet data usage, and SMS messages longer than 3 minutes
- Announcing 10% ad hoc relief for all federal employees from July 1, 2021
- 10% increase in pension for all employees
- The minimum monthly salary has been raised to Rs 20,000
- No new tax will be levied on the salaried class.
- Exemption from federal excise duty and reduction of sales tax on locally made 850 cc vehicles
- Permission for zero-rating for exports of IT services
- Elimination of federal excise duty on fruit juice
- Exemption on import of art and printing papers used in printing and publishing of Holy Quran
- Rs 900 billion has been allocated for the Federal Public Sector Development Program (PSDP) with a 40% increase.
- Rs 12 billion allocated for the agriculture sector
- Rs 118 billion allocated for power transmission
- Rs 14 billion allocated for climate change mitigation projects
- Proposal to allocate Rs
- Rs 100 billion allocated for Code 19 Emergency Fund
- Rs 12 billion allocated for a special grant to Sindh
The finance minister said that in the last two years of the Muslim League, there were only 10 10 million left till June 2018. During this period, the external debt increased.
“This is a story of catastrophe, after which we will be responsible for reviving the economy,” he said.
He said that despite this, the growth rate of 5.5 percent was beaten and loans were taken without thinking.
The Finance Minister said that we have to make all these payments otherwise the country would have defaulted.
He said that we are presenting a real scene, instead of standing in the graveyard and digging graves, the nation should be taken to the light.
The finance minister said it took some time for the economy to recover because of Corona.
He said that the government of Prime Minister Imran Khan was not afraid of a difficult decision due to which the current account deficit of Rs 20 billion was turned into a surplus of 800 800 million in April 2019.
The Finance Minister said that a policy of reduction in expenditure and austerity was adopted.
“We are moving from stability to economic growth,” he said.
The finance minister said Corona had delayed economic growth by a year.
He said that Pakistan had to face two waves of Corona.
The Finance Minister said that the rate of economic growth has been recorded in every sector.
He said that the production of all other agricultural commodities except cotton has increased tremendously while the industrial growth has also been extraordinary.
The Finance Minister said that the major industrial sector recorded a growth of 9% as against negative 10 in the past.
“We managed to stem the spread of the Corona epidemic, although we experienced a third wave between March and May, but we did not shut down business,” he said.
He said that 12 million families were helped through Ehsas program.
He said that 11.5 million families were assisted in the first year.
The Finance Minister said that the historical level of remittances has been recorded.
He said that remittances would reach 29 29 billion this year, all as a result of overseas Pakistanis’ reliance on Imran Khan.
He said that the historic increase in crop production had earned farmers Rs. 3,100 billion as against Rs. 2,300 billion last year, which increased their income by 32%.
Shaukat Tareen said that the growth in large-scale manufacturing was signaling a resumption of pre-existing employment code and even further increase in employment as it was unprecedented in the last one decade.
He said the growth in the services sector is a reflection of the improvement in employment, especially through online shoppers through e-commerce.
He said that despite Code-19, per capita income has increased by 15% in the last one year.
He said that the tax collection has increased tremendously by 18% due to the extraordinary performance of the economy. The tax collection has crossed the psychological limit of Rs 4,000 billion.
In his budget speech, he said that 75% more money has been given in refunds as compared to last year.
“Exports are much higher now than in the past,” he said.
He said that the balance of payments has been controlled and surplus has been created, food items had to be exported after the destruction of crops.
Shaukat Tareen said that remittances have increased by 25% to Rs 29 billion and have increased with improvement.
He said that more than three months is enough for imports in the public treasury, the dollar is being traded at Rs 155.
He said that Pakistan has become a country of food deficit, food commodity is at the highest level in the world market.
Shaukat Tareen said that a comprehensive plan has been formulated to increase agricultural production and ensure food security in collaboration with the provinces.
The Finance Minister said that the increase in exports is very important to get out of the ongoing crisis in the balance of payments and to avoid going to the IMF program, again and again, so we are announcing substantial concessions for this sector and a We are trying to build platforms where industries will be relocated, jobs will be created and exports will increase.
Housing and construction
Shaukat Tareen said that at present there is a shortage of at least 10 million residential houses in Pakistan. The Prime Minister’s Housing and Construction Package has boosted many economic activities in the sector and related industries.
The Finance Minister said that the government is taking the following steps for the promotion of this program, in this regard a new Pakistan Housing Authority has been set up to coordinate policymaking and its implementation.
He said that the government is taking the following steps for the promotion of this program, in this regard a new Pakistan Housing Authority has been set up to coordinate policymaking and its implementation.
The Finance Minister said that a tax rebate package for housing schemes has been specially clarified under this initiative, besides the government is giving a subsidy of Rs. 300,000 to help low-income people build houses. ۔
He said that for the first time in Pakistan mortgage financing has been introduced, all the provincial governments are allocating land to support this initiative and launching housing projects and encouraging private sector housing schemes.
The Finance Minister said that the banks are participating in the people’s money laundering program and in this regard, the banks have received requests for Rs. 100 billion, out of which Rs. 70 billion has been approved and the payment process is underway.
Public Sector Development Program
He said that the budget for Public Sector Development Program is being increased from Rs. 630 billion to Rs. 900 billion.
He said that the development budget was increased by more than 40%.
The Finance Minister said that our vision under PSDP is very simple, we will invest in a more profitable program which will improve livelihood and discourage corruption.
He said that this time the National Economic Council has approved a historic development budget of Rs. 2,135 billion, which is 33 percent more than the budget envisaged by the council for the previous year.
“Our government has given extraordinary priority to the agriculture sector,” Shaukat Tareen said, referring to food security.
He said that this year there was a huge production in wheat, rice and garbage.
That is why the National Agriculture Emergency Program has been announced, the Finance Minister said.
The program aims to modernize livestock and agriculture, he said.
“Apart from this, the livestock, fisheries and fisheries sectors will be revived while we have allocated Rs 12 billion for agriculture next year,” he said.
In addition, he said, there was a proposal to allocate Rs 1 billion for the Locust Heart and Food Security Project.
He said that Pakistan was rapidly suffering from water scarcity and Prime Minister Imran Khan wanted to build small dams.
He said that construction of three big dams would be among our priorities in which Rs. 57 billion has been allocated for Dasu Hydropower Project.
He said that Rs. 23 billion has been allocated for construction of Diamer-Bhasha Dam while Rs. 6 billion has been allocated for Mohmand Dam.
The Finance Minister clarified that an allocation of Rs. 14 billion has been proposed for the semi-Jhelum power project.
The Finance Minister said that 17 projects worth 13 13 billion have been completed under the Pak-China Economic Corridor (CPEC) while 21 projects worth 21 21 billion are underway.
In addition, 26 strategic projects worth 28 28 billion are under consideration, he said.
The Finance Minister said that ML-1 is a major project costing 9. 9.3 billion which will be completed in three phases.
Shaukat Tareen said that we are deprived of the ability to provide electricity to all consumers so our investment priorities will be to meet this challenge.
He said that Rs. 118 billion has been allocated in the budget for this purpose.
The Finance Minister said that Rs. 16 billion has been allocated for the K1 and K2 projects in Karachi and the fifth expansion of Tarbela Hydropower Plant.
He said that the government has launched special development package for the backward areas for which Rs. 100 billion is being allocated and it includes dozens of projects.
Introducing the budget, the Finance Minister said that improvement in water resources is our goal to meet the demand of the agricultural sector, for which Rs. 19.5 billion has been set aside.
He said that Rs. 54 billion has been earmarked for the development of KP integrated districts, out of which Rs. 30 billion is for the next 10-year development plan.
He said that the government believes in public-private partnership, the authority has 50 projects in different phases with a total cost of Rs 2,000 billion, including rail, health, logistics and other projects.
He said that 6 more projects worth Rs. 710 billion would be launched this year for which the government would pay Rs. 61 billion in viability funds.
He said the Billion Tree Tsunami Plan is aimed at tackling the challenge of climate change, and is allocating Rs. 14 billion in the current financial year.
He said that the Prime Minister gives priority to the social sector, which includes health, education, sustainable development goals, climate change and other sectors and is allocating funds of Rs. 118 billion in this regard.
The federal minister said that a special grant of Rs 12 billion would be provided to Sindh.
He said that Rs. 5 billion would be allocated by the federation for the 2022 census.
Earlier, a special meeting of the Federal Cabinet chaired by Prime Minister Imran Khan was held in Islamabad in which budget proposals were discussed and approved.
#Budget2021 What PM Imran Khan says:
video via @AbdulqadirARY pic.twitter.com/qmFL6Z9NAe
— Imran Ghazali (@ImranGhazaliPK) June 11, 2021
Budget Speech: Key Features of Budget, GDP Deficit / Expenditure, Development Expenditure, Inflation Product, National Economic Survey,