ISLAMABAD, June 6: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday described the federal budget as a ‘balanced one’ and hoped that the subsidies announced for food items would provide relief to the common people.

Addressing at a press conference here FPCCI president Chaudhry Muhammad Saeed said that the budget was people and business friendly, but he could not elaborate on the actual impact of the budgetary measures in attracting new investment in the country.

When asked how the measures announced in the budget would help in attracting investment, the FPCCI president said that the new investment could only be attracted in those areas where investors expect profitability.

He said that during the last two years no big industry was established in the country. He did not give any reason but added that new investment was made in the telecom sector.

Accompanied by the president of Islamabad Chamber of Commerce and Industry (ICCI) Abdul Rauf, he said that judicial system of the country was one of the biggest hurdles in attracting investment.

While commenting on the budget, the FPCCI president hoped that the measures taken by the government for agriculture sector would promote the rural areas of the country.

He said that most of their proposals had been incorporated in the budget 2006-07, however, the proposal seeking reduction in the sales tax rate was not accepted.