PESHAWAR, June 11: Industrialists from the NWFP have termed the federal-budget for the fiscal year 2007-08 ‘a jugglery of words’ and say that it offers little to reduce poverty or improve economic growth.
President Pakistan-Afghan Chamber of Commerce and Industry Senator Ilyas Ahmad Bilour termed the budgetary proposals as ‘multinational budget’ which had been designed to protect a few industries.
He said that only a few industrial units that manufacture certain specific items have been provided protection in the budget at the cost of the whole manufacturing sector.
During the last one year, industrial growth remained at its lowest level, which should have been targeted in the budget through policy measures. But instead, the ratio of sales tax and one per cent surcharge on imports have been imposed that would further damage the manufacturing sector in years to come, he said.
Mr Bilour said the budget had provided no relief to the poor masses and claimed that the provision of pulses at subsidised rates in utility stores would not benefit the downtrodden strata of the society, adding that this step would only push the country towards becoming a ‘controlled economy’.
He said the government should have slashed duties on ghee, sugar and other edible items to provide immediate relief to the masses.
Former President Sarhad Chamber of Commerce and Industry (SCCI) Ghulam Sarwar Mohmand complained that the budget contained nothing for the social uplift of the NWFP and FATA.
He said the geographical location of the NWFP and adjacent tribal areas could be utilised to gain access in Afghanistan and Central Asian Republic markets.
Currently, he said, the volume of formal and informal trade with Afghanistan was more than $2 billion that could be doubled if proper attention was given to this area.
He said the federal government should have announced a special package for the industrial sector of the NWFP and adjoining tribal areas to attain market access across the border.
He identified hydel power generation and mineral as avenues to mitigate the backwardness of NWFP, but regretted that it too was ignored in the budget.
Mr Mohmand also expressed reservations over what he called meagre resource allocations for the health, education, social welfare and human resource development sectors.
SCCI Executive Member Zahid Khan Shinwari said that the increase in the ratio of sales tax and imposition of one per cent import surcharge would increase production costs.
He said that the NWFP deserved a special package but instead incentives were given only to a few selected industries of Punjab and Sindh.
Mr Shinwari criticised the taxation policy and said that the agriculture and stock market sectors were once again not brought under the tax net. Similarly, the ratio of indirect taxes was still higher than direct taxes, he added.