June 12, 2008	Thursday	Jamadi-us-Sani 07, 1429

KARACHI, June 11: Within very limited fiscal options and virtually no control on the international factors -- that dictate prices of almost all goods and services in the domestic market, the federal budget’s initiative to launch Rs34 billion poor support programme looks a big and bold step towards social justice.

Federal Finance Minister Naved Qamar announced on Wednesday his government’s plan to reach the poorest of the poor with Rs1,000 every month in accordance with a Nadra designed computerised data under Benazir Income Support Programme. “Let’s hope the programme benefits real needy and poor of the country and is not confined to supporters of the ruling party only,’’ remarked a business leader.

“People will judge the success of the programme if it is transparent and all information about its distribution and delivery system is shared with the people through media regularly,’’ Dr Qazi Masood of a well known private consultancy the Social Development and Policy Centre (SDPC) said.

For the first time, in last several years, the government has addressed the income distribution issue in the new budget. Inequality in income distribution has emerged as a big social, political and economic problem in Pakistan during last many years and the size of the programme looks too modest. “But then still it is an initiative,’’ Dr Qazi said.

What fascinates many economists and social activists is not only the support of Rs1,000 a month to the poor and needy but the programme to give training, medical insurance and subsidy on food to the holders of Benazir Income Support Programme.

Also to attract attention of the economists and social activists are other programmes of the budget, which are Peoples Works Programme, formation of a Human Resources Development Commission, National Internship Programme, Peoples’ Employment Programme and special programmes for welfare and development of women.

“It is a pro poor and pro agriculture programme,’’ Siraj Kassim Teli, a former president of Karachi Chamber of Commerce and Industry said. “We have a strategic advantage in agriculture as compared to many other countries’’ he pointed out while regretting that for long agriculture was ignored, which pushed up food import bill to new heights and threw majority of rural population in abject poverty.

Teli hoped that 300 items identified as luxury goods on which import duty is being increased, include the beverages. Import of all such beverages and juices should be discouraged as Pakistan’s bottling industry is coming to age and there is lot of scope for progress of fruit juices industry in the country.

He, however, did not approve of increase of GST from 15 per cent to 16 per cent across the board as it is going to push up the cost of doing business in Pakistan.

Fawad Ejaz Khan, a senior leader of leather industry wondered whether the government had provided for the R&D subsidy for apparels, fabric and home textiles because the finance minister skipped this issue altogether. “There is no word on export competitiveness of our goods in international market’’ he said.

Businessmen are skeptic on government’s projection of mobilising Rs1.25trn taxes.