KARACHI: Business leaders have termed the federal budget 2013-14 announced on Wednesday as a balanced budget.

Commenting on the budget, President of Karachi Chamber of Commerce and Industry (KCCI) Haroon Agar, other business leaders Siraj Kassem Teli and Haroon Farooqi appreciated the welfare schemes including expansion of Ashiana Housing scheme, provision of loans to youths for small business and Income Support Programme.

They also appreciated the budget proposal for construction of Karachi-Hyderabad Motorway which will prove a baseline for the progress of Sindh.

They appreciated the proposed measures for resolution of energy crisis in the country and for revival of Pakistan Railways.

The business leaders however opposed the increase in General Sales Tax from 16 per cent to 17 per cent.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has described the budget as very good in the prevailing circumstances.

However, the top leadership of trade and industry representing the entire country through FPCCI expressed their reservations over the increase in sales tax rate, maintaining that it will ultimately put a burden on the common man.

Vice Chairman, Confederation of South Asian Chambers of Commerce and Industry and former president FPCCI Tariq Sayeed praised the budget and hoped that it will help in giving boost to trade and industry leading to economic prosperity and development in the country.

He noted that the government has taken various positive decisions and announced programmes for the uplift of economic and social sectors.

These included elimination of secret funds, youth and women development/ empowerment programmes and initiatives, cut in government expenses, re-launching of income support programme and enhancing its fund to Rs 75 billion from Rs 40 billion, enhancing the allocation of funds for health and education, incentives and exemptions for giving momentum to industrialisation and for increasing the exports, end of SROs culture which, he maintained, is a big source of corruption.

“The budget is very ambitious which will require very serious and practical efforts to achieve the targets,” he remarked.

The business tycoon however expressed his reservations over the increase in sales tax rate to 17 per cent.

“We expected cut in sales tax to 10 per cent from 16 per cent,” he said.

President FPCCI Zubair Ahmed Malik said that overall it is a good budget in the present social and economic scenario of the country.

He, however, said he will give his detailed reaction on the budget on Thursday at a press conference at the Federation House after a thorough study.

Vice President of SAARC Chamber of Commerce and Industry (SCCI) and former president FPCCI, Iftikhar Ali Malik said the budget is a great hope for the business community and the people in general.

Being representative of the country at SAARC Chamber, he especially supported the government's decision to take initiatives and engage with regional countries on economic and social fronts.

He advised the business community to thoroughly study the national budget and identify the anomalies, if any, which will be taken up with the concerned government authorities through the FPCCI platform for their redressal.