June 19, 2008	Thursday	Jamadi-us-Sani 14, 1429

MULTAN, June 18: Traders, growers and industrialists of southern Punjab have expressed mixed reaction over the budget for 2008-09.

Chairman Economics Department of Islamia University, Bahawalpur, Professor Dr Karamat Ali said that 80 per cent of budget had been allocated for expenditures on defense, establishment and debt servicing, both domestic and external.

He said that there was a need for the elite class of the country to come forward and sacrifice for the nation because it has already earned enough as compared to its capacity.

He said that despite the government announced increase in salaries and pensions but 20 per cent increase in basic salaries was insufficient while the inflation rate was crossing the figure of 15 per cent.

Dr Karamat said that only the poorer community remained deprived of any relief from the government while all other groups, including investors, industrialists and farmers had always enjoyed various kinds of subsidies

He said that there was a need to form long-term policies to avoid any worst economical crisis and government should reduce the defense and establishment expenditure and should concentrate on resolving problems of poverty and unemployment.

Khawaja Muhammad Shoaib of Farmers’ Vision Forum (FVF) said that apparently the budget was farmers’ friendly and it was the demand of FVF that sales tax should be made zero rated on pesticides.

He also welcomed increase in subsidy on phosphate and potash fertilisers from Rs470 to Rs1,000 per bag but said that it must be ensured that it should reach the farmers in real sense.

Secretary General Rahim Yar Khan Chamber of Commerce Abdul Rauf said that there was nothing in the budget to facilitate the industrial sector.

He said that despite increase in mark up rates the government did not announce any measures in the budget to ensure growth in the industrial sector.

Syed Muzaffar Abbas Gardezi, a progressive farmer, said that inflation would rise due to levying of direct taxes and the people would be forced to pay additional cost on petrol, electricity and food items.

An agricultural expert said that small farmers got relief in the budget because the government has directed the ZTBL to withdraw cases against the small farm loans defaulters