June 07, 2006	Wednesday	Jumadi-ul-Awwal 10, 1427

KARACHI, June 6: Many people listened in disbelief when the State Minister of Finance, Omar Ayub Khan on Tuesday announced that the pension had been raised by 20 per cent for those who retired before 1977.

A simple calculation on finger tips showed that to benefit from government’s generosity, a pensioner would have to be around the age of 90. With the average life span of a Pakistani citizen already on the decline, from 64 to 60, everyone wondered how many of the grand old men would be around to collect the extra cash.

But someone put that question to Dr Salman Shah, the adviser on finance, during his press briefing on Tuesday. And that solved the riddle. The scheme was for any civilian who could climb up to the age of 90, but mainly for the army ‘jawaans’ who retire, not at the age of 60, but earlier as Junior Commissioned Officers (JCOs) and Non-Commissioned Officers (NCOs). For those older citizens, Rs1 billion had been set aside from the aggregate sum of Rs3.67 billion allocated for pensioners.

In its enthusiasm to win the hearts and minds of people, the government announced enhanced rates on National Savings Schemes (NSCs). The new and higher rates on Defence Savings Certificates, Bahbood Certficates, Regular Income Certificates and others would be applicable from July 1.

Now some bankers are sceptic. They say that it is already the norm to revise the rates every six months. The revision on the evening of June 30 was due, but that is always done keeping in mind the (Pakistan Investment Bond) PIB rates. They believe it unlikely for big investors to commit funds before end of June without first comparing them with the PIB rates. All that the minister did was to disclose, what has always been kept as a well-guarded secret until the evening of the last day of six months. But there would always be people difficult to please. One of them queried: how many people of the population of 150 million would walk up to the measured number of utility stores to purchase cheaper ‘daals’?

And finally, the minister brought a remarkable change in the way the budget had been pronounced over the past many decades. The last part of the budget speech for which the business and industrial community waits in eagerness “budget proposals” went missing.

It has been the norm to announce separately and in order the incentives, levies, taxes and exemptions on Income Tax; sales tax and excise duty. And it was thought to come about that way. But just before the 15 minutes recess for Maghrib prayers, the minister left the stock investors guessing when he said he would announce the details of imposition of some taxes on the stock exchanges after the prayers. When he resumed, the speech did not begin from where it had been dropped. No fiscal measures were announced.

Incidentally, even the budget documents also did not contain the new taxation measures on the stocks trade. Investors suspect that it was less of a divine guidance and more from the ‘seniors’ that the minister changed his tone. But at least for three times during his budget speech the youthful minister challenged that if anyone (meaning previous Governments) could claim to have taken so many measures for the poor masses, he should “come in front (samnay aaye)!