PESHAWAR: Federal Government allocated a huge amount of Rs 57 billion under its PSDP program 2023-24 for seven merged tribal districts of Khyber Pakhtunkhwa (KP) on Thursday.

A special focus will be given to the sectors including education, sports, health, road infrastructure, youth empowerment, IT, energy, and agriculture to speed up the development process.

“A significant provision regarding an extension of sales and customs tax’s exemption in provincial and federally administered tribal areas were included in the budget till June 30, 2024,” said Z.A Malik, former Chairman, the Economics Department, University of Peshawar while talking to reporter on Thursday.

“This significant tax exemption for another year was landmark relief to people of erstwhile Fata and PATA, however, there is a need to closely monitor it so that only local residents benefited from it,” he added.

Zahid Shinwari, former President Sarhad Chamber of Commerce and Industry (SCCI) said that a record increase in budget for ex-Fata uplift was a good endeavor of the Government.

Effective measures were proposed for Khyber Pakhtunkhwa (KP) and Balochistan provinces to enhance the effectiveness of anti-trafficking efforts and bring those involved in smuggling under the law, he informed.

As many as 45,000 young people across the country are currently undergoing IT training, and this number is expected to increase with the implementation of the new initiatives.”

He said the provision of 100,000 laptops on a merit basis to deserving individuals would help research activities and online learning.

The Rs14,460 billion budget for 2023-24 marked a significant increase of 4,958 billion rupees compared to the previous year’s budget of 9,502 billion rupees, which was expanded by 34 percent within a year.

“Only the tax collection target for the upcoming fiscal year is set at 9,200 billion rupees. The Federal Board of Revenue will collect 3,759 billion rupees in direct taxes, with an additional 5,441 billion rupees expected from indirect taxes.”

He said the import of machinery, equipment, and inputs required for the manufacturing of inverters and batteries for solar panels and related equipment were exempted from customs duty.

Professor Dr Z.A. Malik said, “Information technology has made deep inroads in all sectors and the government’s proposal to allow duty-free import of IT and related equipment up to one percent of their export earnings is a positive decision.”

It would also facilitate access to advanced technology for expanding businesses and SMEs, he added.

He said people of erstwhile Fata would also facilitate exempting the agriculture sector from customs duty on the import of seeds for sowing which would help farmers to have better access to quality seeds and cheap fertilizers.

He said the exemption of the import of prawns for breeding purposes in commercial fish farms and hatcheries from custody duties would increase fish production in KP.

He said KP’s cold water reservoirs in Malakanad, Hazara and Parchinar Kurram district were most suitable for trout fish farming and Pakistan could earn substantial revenue by facilitating farmers to increase the trout production.

Malik said that Gomal Zam Dam in South Waziristan has been completed while work on the Kurram Tangi dam in North Waziristan was underway that would hopefully be ready by December next year.

The government’s allocation of Rs 97.098 billion for Education Affairs and Services in the federal budget for the fiscal year 2023-24 would help bring out school children under the education net and increase enrollment.

The bulk of the allocated funds, amounting to Rs. 76.589 billion has been designated for Tertiary Education Affairs and Services.

The federal government has also proposed an allocation of Rs24.21 billion for the healthcare sector for the financial year 2023-24 to uplift the sector under the public sector development budget.

“The adjustments in duty and tax exemptions besides mega development projects have reflected the government’s strong commitment to fostering economic growth, promoting sustainable practices, and supporting key sectors of the economy, he ended.