ISLAMABAD, May 26: Prime Minister Shaukat Aziz on Thursday said that the coming budget would envisage relief to civil servants, reduction in tax rates, expansion of tax base and rationalization of import tariffs. Talking to reporters at the PM Secretariat, he said the thrust of the next year’s budget would be on consistency of economic policies and on improving living standards of average citizens.

He declined to comment when asked whether the relief would also be provided to the general public, but said “we would do something for all the people”. Mr Aziz said the reform process would continue as it had resulted in higher growth rates this year, estimated at 8.35 per cent of GDP which may slightly go up when final data is ready.

A source close to the prime minister said that Pakistan was now among top three fastest growing economies in the Asian region and added that this would be formally announced when final estimates of other countries were available. In reply to a question on inflation, the prime minister said that a meeting of the Economic Coordination Committee of the cabinet had earlier in the day discussed the problem.

“It (inflation) is getting better as a result of improved supplies of essential commodities,” he said and added that the government had moved fast in this direction. He said as a result of the decision to import prices of tomato had come down significantly and “our own tomatoes have also started arriving” in the market.

Asked about measures to promote investment, he said “overall environment is the best incentive for investment” and added that the World War-II concept of creating zones through incentives had gone as most of such zones, based on economic feasibility, had turned into ruins.