Budget 2016-17

Finance Minister Ishaq Dar Friday presented the federal budget for 2016-17 in the Parliament.

Following are the highlights:

Ø  Economic Growth 4.71%, highest in past eight years

Ø  Per Capita income up to $1,561, growth of 17%

Ø  Inflation 2.82%; lowest in a decade

Ø  FBR Revenue target of Rs 3104 to be achieved; 60% increase in three years

Ø  Fiscal Deficit down to 4.3% in 2015-16

Ø  Exports declined by 11% recorded at $18.2 billion

Ø  Imports at $32.7 billion; savings from oil import around 40%; diverted to increased import of machinery.

Ø  Cumulative growth of 40% in machinery over last three years.

Ø  Remittances were $16 billion in 2015-16; target for 2016-17
$19 billion

Ø  Exchange Rate stable at Rs 104.70 per dollar

Ø  Foreign Exchange Reserves increased to historic $21.6 billion

Ø  Current Account Deficit maintained at 1% of GDP over three years

Ø  Fiscal Deficit to be reduced to 3.8% of GDP for 2016-17

Ø  Debt to GDP to be brought down to 60% of GDP in next 2 years

Ø  10,000 MW electricity to be added by March 2018

Ø  Unemployment reduced to 5.9%;

Ø  Poverty down by 29.5% in 2014 from 64.2% in 2001

Ø  BISP program expanded from Rs 40 bln in 2012-13 to Rs 102 bln in 2014-15; increase to Rs 115 bln in 2016-17

Ø  Number of BISP beneficiary families to increase to 5.6 mln

Ø  Budget for Bait-ul-Mal doubled from Rs 2 bln to Rs 4 bln

Ø  Rs 61 bln allocated for 969 MW Neelum-Jhelum Hydro Power
Project

Ø  Rs 16.5 bln allocated for completion of 1410 MW Tarbela-IV

Ø  Rs 60 bln allocated for two LNG power plants at Baloki and Haveli
Bahadurshah to produce 2400 MW

Ø  Rs 188 bln, an increase of 18%, allocated for construction of roads,
bridges, highways

Ø  Rs 34 bln allocated for Lahore-Abdul Hakeem Section (230 km)

Ø  Rs 19 bln for Multan-Sukkur Section (387 km)

Ø  Rs 2.5 bln for Sukkur-Hyderabad Section (296 km)

Ø  Rs 16.5 bln for Thakot-Havelian Section (118 km)

Ø  Rs 22 bln for Burhan-Halka on M-1

Ø  Rs 14 bln for procurement and manufacture of new rail locomotive engines; 800 coaches, 2000 wagons to be repaired

Ø  Total Rs 79 bln for higher education including Rs 21.5 bln
allocated 122 HEC projects; Rs 58 bln for HEC; showing 11% increase

Ø  In health sector Rs 22.4 bln allocated for health programs including PM National Health Insurance Programme

Ø  Rs 100 bln allocated for housing, rehabilitation and return of temporarily displaced persons

Ø  EXIM Bank to be established

Ø  Rs 6 bln allocated to operationalise trade policy

Ø  Pending Sales tax refunds till April 30, whose RPOs approved, will be paid by Aug 31, 2016

Ø  Textiles, leather, sports goods, surgical goods and carpets to be made part of zero-rated tax regime from July 1, 2016

Ø  Tax and duty concessions of Rs 15 bln for agriculture sector will continue for 2016-17

Ø  Urea price further decreased from Rs 1800 per bag to Rs 1400 and incur subsidy of Rs 36 bln

Ø  Price of DAP to be decreased to Rs 2500 per bag from July 1,
2016 incurring subsidy of Rs 10 bln

Ø  Agriculture credit to be raised to Rs 700 bln for small farmers

Ø  Rs one bln to be allocated for Credit Guarantee Scheme for small farmers

Ø  Concessional Electricity Tariff to be cut to Rs 5.35 per unit from Rs 8.85 on off-peak for agriculture tube wells

Ø  Rate of duty on import of machinery for dairy livestock poultry sector reduced to 2% from 5%

Ø  Customs duty on incubators, breeders, machinery for animal feed reduced from 5% to 2%

Ø  Customs duty on import of fish feed pellet, water aerators reduced from 5% to 2%

Ø  Fish feed subject to 10% duty; shrimp feed duty 20% to be exempted

Ø  Duty of 10% on live baby fish to be removed

Ø  Sales tax of 7% on pesticides to be abolished

Ø  Custom duty on LED light manufacture reduced from 20% to 5%

Ø  Relief on import of solar panels to be extended to June 2017

Ø  Sales tax on import of dumper truck for Thar Coal

Ø  Rs 20 bln allocated for various ongoing PM Special Schemes