ISLAMABAD, June 6: The next budget will mainly focus on a relief package to bring down prices, as well as industrial production, human resource and infra-structure development.
Speaking at a pre-budget function, organised by the Press Information Department, Adviser to Prime Minister Dr Salman Shah said here on Wednesday that increase in salaries, pensions and schemes for skilled and un-skilled labour would be some of the key features of the budget, to be presented in the National Assembly on June 9.
He said the relief package would mostly focus on depressing prices of some of the essential commodities and small projects for creating employment in the depressed areas of the country.
He said that for infrastructure development more funds will be allocated for rehabilitation of existing roads, construction of new roads and construction of new dams.
To a question, he said there was no dearth of financing, but the only thing required is consensus of provinces over construction of big dams. However, he said that construction on Neelum-Jehlum dam would start soon after the budget.
He said the budget would also announce some measures for increasing productivity of industries. There is a need to increase the competitiveness of the industries to compete with other countries, he added.
Answering a question, the advisor said government will curtail the financial deficit to less than three per cent over the next five to seven years and will also bring down the debt-to-GDP ratio to nearly 20 per cent over the next five to seven years. "The endeavors to curtail financial deficit and debt-to-GDP ratio are aimed at saving more funds for public welfare sectors of health and education," he said in reply to a question about public debts.
Mr Shah said government had managed to drastically decrease "debt-to-GDP" ratio from 100 per cent in 1998-99 to the currently 52 per cent, adding that the same ratio next year should be 49 per cent.
"We are bringing down this ratio by 5 per cent annually at the average and will slash it to nearly 20 per cent in the next five-seven years," he said, further disclosing that the ultimate target was to achieve one of the top ratings, like BBB etc." The advisor said Pakistan is already in the B-1 or B-plus grading and when we achieve the rating like BBB, it will mean that our economy has attained Investment Grade Quality which will open up doors of all kinds of investments for us.
He said the financial deficit currently stood at 4.2 per cent from the nearly seven per cent in the late 90s.
"It is a great leap forward for us," he said and added that due to spending on earthquake rehabilitation, the financial deficit would remain at 3.5 per cent over the next three years, but after that the target would be brought down to less than three per cent.
To a question, he ruled out the impact of the current judicial crisis on economy. He said until there is any breakdown, he did not see any impact on economy.