_:2. The prices of energy also played role in price hike during the tenure of last government.
We had solved the power crisis to a large extent. The responsibility of deepening energy crises once again lies with wrong policy decisions of PTI Government during the last quarter to four years They leveled concocted allegations against very competitive LNG contract entered into by us, due to which many respectable leaders had to face jails We could have tolerated, had they managed economical LNG contracts. But instead of striking long term agreements at lowest rates that were available at that times due to Covid, they opted for costlier spot purchases. This is the reason we are compelled to buy LNG at high rates at the moment to meet our immediate needs. Despite all this, we were blamed and many honourable leaders, including myself, were sent behind bars, our sisters and daughters were dragged into it and they are still facing cases in courts.
- Towards the end of February, when Imran Khan led government sensed that they will have to leave then, they tried to create hurdles in the way of coalition government , but in fact these were landmines for the economy of Pakistan. The prices of petrol and diesel were reduced despite the fact that government was running on borrowed money. Because of that destructive act our country was caught in a grave economic situation. The rescue efforts are still going on.
- Keeping in view the high petroleum prices, Prime Minister Shehbaz Sharif has decided to bail out the low income classes. Under his directives, it has been decided to pay Rs 2000 p.m as assistance to families having monthly income less than Rs 40,000 p.m. The decision has been implemented w.e.f. June, 2022 and the additional assistance is being provided to existing beneficiaries of BISP automatically. Now 60 million more people will be added to it who will be paid Rs. 2,000 p.m. This financial assistance has been included in fiscal year 2022-23 budget. It is not necessary to own a car or motorcycle, people who travel in buses can also benefit from it.
- From 2013 to 2018 Pakistani currency remained stable but then due to miss governance of highest order the value of Pakistani Rupee fell by 61 percent and US dollar went from Rs 115 to Rs 189 between 2018 and 2022. Due to aftershocks of this economic mismanagement, it crossed the level of Rs 200 by now. But we have taken all necessary steps to stabilize our currency and we hope that In sha Allah it will become stable.
Budget Vision and Economic Priorities Mr. Speaker!
- Before going into the details of Budget, I would like to say something about the strategy and priorities of our government.
- Prime Minister Shehbaz Sharif believes that maximum relief should be given to the people during these hard times especially to those poor people who cannot withstand the storm of price hike. Government has taken many steps for providing assistance and subsidies in this respect but in order to continue it we will have to provide resources. For the purpose there can be a special tax on higher income earnings to redirect the wealth towards poor people, so tax can be imposed on such income or on articles which are used mostly by affluent people and are used less by middle class or poor people. In this way higher income people will have to face a nominal burden. Thus the rich can provide much needed relief to the poor.
Mr. Speaker!
- The budget philosophy of our government is to increase agricultural productivity so that not only cultivated land increases but per acre yield also increases. Especially cultivation of edible oil producing crops like maize, sunflower and canola be increased so that agricultural imports can be decreased as well as current expenditure deficit. On the other hand, we will develop industries whose products can be exported. In this way we will have valuable foreign exchange and it will help correct the balance of external payments on durable basis.
Mr. Speaker!
- It is imperative to improve the management of revenues being collected currently alongwith exploring the avenues for new sources. If the theft of revenues is curbed which has increased during last quarter to four years, we can increase revenue collection substantially. Moreover, we are making efforts to increase non tax revenues.
Austerity Measures
Mr. Speaker!
- Austerity is our first priority when it comes to expenditures.
Austerity in government expenditures is part and parcel of this budget. We are going to take concrete steps in this regard, we are not offering lip service. There will be a complete ban on purchase of vehicles. There will be a ban on purchase of furniture except for development projects. Petrol limit for government employees (officers) and Cabinet will be curtailed by 40 percent. There will be ban on foreign visits at Government expense except mandatory foreign visits.
Mr. Speaker!
- There is an allocation of Rs 530 billion in budget for next financial year like several other countries, we are going to establish Pension Fund, for which funds have been allocated.
Macro-economic Framework
- According to the vision of Prime Minister, our team has devised a medium term macro-economic framework to put the economy on track of growth. I firmly believe that the direction of our economy will be set right under his vision.
- A gigantic challenge before us is to achieve growth without current account deficit. Next year at least 5 percent growth will be achieved without a balance of payment problem. During the next year, GDP will be increased from Rs 67 trillion to Rs 78.3 trillion.
- Inflation: At present there the inflation stands at 11.7% which is the highest during the last 10 years. Government fully understands the reality that poor people are facing too many hardships. We are trying to lower prices by leveraging monetary and fiscal policy in a better way. Inflation will brought down to 11.5 percent during the next financial year.