Budget 2020-21 focuses on providing relief to people: Hafeez Shaikh

ISLAMABAD: Advisor to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh has reiterated that the budget presented for the fiscal year 2020-21 focused to cope with the coronavirus impact and to provide relief to the public.

Addressing the post-budget press conference today (Saturday), Abdul Hafeez Shaikh said that the budget 2020-21 was made keeping in mind the coronavirus situation in the country.

He said, “The government also had a series of firsts, such as no borrowing from the State Bank of Pakistan, decreased imports and an increase in foreign investment of nearly 137 percent in the country.”

 “No supplementary grant was given to any department, and current account deficit was reduced from $20 billion to $3 billion,” he added.

The Adviser said that the world institutions including the IMF, World Bank, and Asian Development Bank are appreciative of the financial discipline shown by the present government.

However, he said that coronavirus has affected the country’s economy badly. “We have suffered a loss of Rs 700 billion in revenue due to the coronavirus outbreak,” Hafeez said. He also said, “The estimated loss to the GDP due to the coronavirus is Rs 3 trillion.”

Commenting on the budget, he said that the basic pillar of the presented budget 2020-21 was that no new taxes were imposed in it rather concessions worth Rs40-50 billion have been given in taxes and duties to support the industrial sector and create job opportunities.

He also pointed out that the federal government has decreased its own expenditures keeping in view the problems faced by the poor segments of the society. “In this regard, the government has enhanced the allocations for Ehsaas Programme,” he added.

Speaking about the loans, Hafeez said that the incumbent government took loans to clear the loans taken by previous governments. “The PTI government paid back Rs2700 billion of loans in 2019 and this year we will pay back Rs2900 billion rupees,” he claimed.

Referring to the taxes, the finance advisor informed that massive relief has been given to different sectors in taxes especially to the construction industry.

The finance advisor said, “Duty on hospitality sector is being reduced from 1.5 percent to 0.5 percent.  Taxes and duties are being abolished on the testing kits of coronavirus and cancer.”

He said the government also tried its level best to pass on the benefit of lowering petroleum prices to the people.

It is worth mentioning here that Minister for Industries Hammad Azhar yesterday presented the budget for the fiscal year 2020-2021 in National Assembly.