Federal budget is based on unrealistic estimates therefore it may not serve the purpose of economic development amid the recession, experts observed during a “Post Budget” seminar organized by KBC of Institute of Cost and Management Accountants of Pakistan (ICMAP).
The event was hosted by Former Chairman and Current member KBC 2019-21 -Tariq Hussain while participants included President PBIF Mian Zahid Hussain, Chairman APTMA Sindh-Balochistan Chairman Zahid Mazhar, President Pakistan Economy Watch (PEW) Dr. Murtaza Mughal and Former VP FPCCI Saqib Fayyaz Magoon.
The participants said that the current size of the federal government is unsustainable and it will add to debt and deficits as resource availability is scarce and it will lead to mini-budgets. It is fiscally irresponsible to present a three trillion rupee deficit budget and it should not sail through without questions, they added.
The participants noted that problems like poverty and inequality cannot be addressed if the Rs2.9 trillion out of total federal revenue of Rs3.9 trillion is used to service debts. 650 billion for PSDP is a peanut for developing country like Pakistan.
The revenue collection target does not take into account coronavirus impact on the economy, production, consumption, and exports, the business leaders noted.
Mian Zahid Hussain and Dr. Murtaza Mughal noted that how come the government can enhance revenue when the overall GDP of the country is contracting and estimates of expenditure, resource allocation and revenue generation is not according to the ground realities.
The recent moves of the government suggest that it is not providing the environment needed for businesses to sustain in this pandemic situation, they said, adding that cost of doing business should be reduced.
Zahid Mazhar said that export markets for the Pakistani textile sector are expected to contract by 40 percent. He called upon the government to stop collection of turnover tax and that interest rates should be reduced to help businesses survive the pandemic.
Faisal Mobeen Member KBC welcomes the participants and Muhammad Sajid member KBC of ICMAP conducted the seminar.
