The highly anticipated annual budget for the fiscal year 2019-20 is finally here. Some of the salient features and highlights revealed so far are mentioned below:
- Sales tax of 17% restored for five export-oriented sectors.
- Minimum monthly salary set at PKR 17,500.
- GST maintained at 17%.
- 3% VAT reduction on mobile phone imports.
- Tax on immovable property decreased from 2% to 1%.
- Non-Filers can now purchase property.
- PKR 200 billion subsidy on electricity for consumers that use less than 300 units of electricity per month.
- 10% decrease in salaries of Cabinet.
- 5% duty imposed on LNG.
- 10% tax will be imposed on milk, cream, and flavored milk items.
- Corporate tax rate fixed at 29% for the next two years.
- 2.5% excise duty imposed on 1000cc cars and above.
- Food items supplied to bakeries and restaurants will be taxed at 4.5%
- Depreciation and brought forward losses excluded for calculation of super tax of banking, insurance, oil, and mineral exploration companies.
- Sales tax on sugar increased from 8% to 17%.
- 3% duty waived on 19 basic medical products.
- FED on Cigarettes increased to PKR 5,200/1000 sticks for the upper slab and to PKR 1,650/1000 sticks for the lower slab.
- Tax on cold drinks increased from 11.25% to 14%.
- 17% federal excise duty imposed on branded cooking oil.
Commerce and Textile
Rs. 100 million for one new scheme of the Ministry of Commerce has been allocated and Rs. 202.828 million has been earmarked for Textiles Industry Division in one ongoing and two new schemes in the Public Sector Development Programme (PSDP) 2019-20 for the promotion of trade and commerce in the country.
Going into the details, the government has allocated Rs. 100 million for re-modeling and expansion of Karachi Expo Centre, Component-1 to develop and promote the local industry and to attract the foreign and local investment in the country.
IT & Telecom Division
The government has allocated Rs 7.341 billion for 29 ongoing and new development schemes of Information Technology and Telecom Division in the Public Sector Development Programme (PSDP) for the fiscal year 2019-20.
According to the annual PSDP, the government has allocated Rs 1.466 billion for the 10 ongoing and Rs 5.864 billion for 19 new development schemes.
According to the document, for ongoing schemes a sum of Rs 600 million for the expansion, upgradation of NGMS (3G/4G) services and seamless coverage along KKG, Rs 474 million for replacement of GSM network of AJK, and Rs 100 for establishing technology parks development project (TDP) at Islamabad, respectively, have been earmarked.
The federal government has allocated Rs 36.821 billion for 42 projects of Finance Division under the Public Sector Development Program (PSDP) for the upcoming fiscal year 2019-20.
According to the budgetary document, Rs 7.938 billion have been allocated for 23 ongoing development projects, Rs 3.609 billion for 14 new schemes and Rs 25.273 billion for 5 ongoing development projects located in merged districts of Khyber Pakhtunkhwa.
Among the ongoing schemes, the government allocated Rs 1 billion for the construction of Sibbi Rakhni Road via Maiwand (Tall-Kohlu) section Sibbi, whereas Rs 1 billion have been earmarked for Necessary Facilities of Fresh Water Treatment, Water Supply, and Distribution project Gwadar.
An amount of Rs. 29047 million has been earmarked under the Public Sector Development Programme (PSDP) for the ongoing and new schemes of the Higher Education Commission (HEC) during the fiscal year 2019-20.
Around Rs. 24887 million has been allocated for ongoing schemes, while, Rs. 4160 million has been allocated for new schemes.
Climate Change Ministry
The federal government has allocated an amount of Rs 7.579 billion for various new and ongoing schemes under the Climate Change Division under the Public Sector Development Programme (PSDP) 2019-20.
According to PSDP 2019-20, the government has allocated an amount of Rs. 7.515 billion for the new schemes and Rs. 64.200 million for the ongoing schemes of the Climate Change Division.
Among new schemes, the government has allocated Rs. 15 million allocated for the establishment of the Climate Change Reporting Unit in the Ministry of Climate Change and an amount of Rs. 7.5 billion for Ten Billion Tsunami Programme Phase-1 up-scaling of Green Pakistan Programme (Revised).
In ongoing schemes, the government has allocated an amount of Rs 20.000 million for Climate Resilient Urban Human Settlements Unit, 3.200 million for establishment of Geomatic Centre for Climate Change, Rs16.000 million for the establishment of Pakistan WASH Strategic Planning and Coordination Cell and Rs25 million allocated for the sustainable land management project to combat desertification of Pakistan SLMP-II.
The federal government has allocated Rs 135.24 million for three ongoing and new projects each for Narcotics Control Division for the fiscal year 2019-20.
According to the upcoming Public Sector Development Programme (PSDP), the government has earmarked Rs 76.71 million and Rs 58.52 million for new and ongoing schemes, respectively.
Under new schemes, the government has specified Rs 50 million for the establishment of a Model Addiction Treatment & Rehabilitation Center in the country.
Rs. 74,236.350 million for various ongoing and new power projects has been allocated under the Public Sector Development Programme (PSDP) for the next fiscal year 2019-20.
According to the budget documents, Rs. 68,143.947 million has been earmarked for the ongoing year while Rs. 6,092 million has been allocated for 17 new schemes in the PSDP 2019-20.
Other than that, the government has earmarked a sum of Rs. 120,768.352 million for various ongoing and new hydel projects under the Public Sector Development Programme (PSDP) for the next fiscal year 2019-20.
An amount of Rs.120,071.352 million has been allocated for ongoing 12 hydel projects while Rs. 697 million has been set aside for five new schemes in the PSDP 2019-20.
An amount of 2,843.094 million has been allocated for 43 ongoing projects of Housing and Work Division for the fiscal year 2019-20 under the Public Sector Development Programme (PSDP).
The financial allocation includes Rs. 300.000 million for dualization and improvement of Mandra Chakwal Road (64 KM).
Industries and Production
The government has allocated Rs. 2,343.293 million for different development projects of the Ministry of Industries and Production.
In PSDP 2019-20, the government intends to spend an amount of Rs. 971.330 million on the national strategic program for acquisition of industrial technology including feasibility (knowledge economy initiatives).
The government has set aside Rs. 456 million for different ongoing and new development schemes of Defence Division under the Public Sector Development Programme (PSDP) 2019-20.
According to the data released by the Ministry of Planning, Development, and Reform, the government has released Rs 410.367 million for four ongoing schemes, including Rs. 208.235 million for Procurement of 03 Nos. Latest Printing Machines for modernization of Survey of Pakistan.
While Rs. 80.632 million have been allocated for Construction of Office Complex including Boundary Wall for Survey of Pakistan Lahore, Rs. 61 million for Procurement/Construction of 6 Maritime Patrol Vessels MPVs for PMSA and Rs. 60.500 million for Establishment of FG Degree College for Boys at Kohat.
In addition, Rs. 1,700 million has been allocated for the two ongoing schemes of Defense Production Division under the Public Sector Development Programme (PSDP) 2019-20.
National Food Security
The government has allocated an amount of Rs 12,047.516 million for various development projects of the Ministry of National Food Security and Research in Public Sector Development Program (PSDP) 2019-20.
It would be used for 16 ongoing and 24 new developmental schemes under PSDP 2019-20 for the uplift of agriculture and livestock sectors in the country.
Rs. 1,393 million will be spent on the completion of 16 ongoing developmental projects, whereas Rs. 10,653.988 million will be spent on 24 new developments schemes during the current fiscal year.
The government has allocated Rs 581.812 million for six ongoing and new schemes of the Petroleum Ministry to achieve self-sufficiency in the energy sector.
According to the PSDP, an amount of Rs 433.852 million has been earmarked for four ongoing schemes, out of which Rs 416.535 would be spent to acquire four drilling rigs with accessories for the Geological Survey of Pakistan, Rs 3.655 million for appraisal of newly discovered coal resources of Badin Coal Field and its adjoining areas of Southern Sindh, Rs 10.553 million to explore and evaluate coal in Nosham and Bahlol areas of Balochistan, and Rs 3.109 million for exploration and evaluation of metallic minerals in Uthal and Bela areas of district Lasbela.
Under the new budget, the government has set aside Rs 1,266.505 million in the Public Sector Development Programme (PSDP 2019-20) for 16 ongoing and new development schemes of the Aviation Division.
According to the PSDP document, an amount of Rs 1028.532 million has been earmarked for seven ongoing projects of the Division, out of which Rs 100 million would be spent for construction of Airport Security Force Camp (ASF) at Islamabad International Airport, Rs 100 million for construction of Rain Harvesting Kasana Dam, Rs 23.532 million for establishment of Specialized Medium-Range Weather Forecasting system in the country, Rs 160 million for installation of Weather Surveillance Radar at Karachi, Rs 50 million for installation of Weather Surveillance Radar at Multan, Rs 555 million for new Gwadar International Airport (NGIA) project and Rs 40 million for Reverse Linkage project between Pakistan Meteorological Department and Mamara Research Centre of Turkey.
This is a very strategy budget which will bring fruit in the long run for Pakistan. Unlike earlier introduced budget which benefits the earlier governments with short term gains, this budget will overall play a vital roll in revenue generation for the current government which will ultimately leads to the human development projects, creating enough stimulus for the years to comes, that will drive both investment and prosperity in Pakistan. Inshallah.