The challenge facing the financial
sector, after the Supreme Court judgement regarding Riba, is re-engineering
of the existing system according to Islamic conjunctions. The other issues facing the
commercial banks are: heavy dependence on T-Bills as source of income, lack of innovative
financial products to suit needs of various income groups, fierce competition in resource
mobilization, shrinking spread and slow pace of economic recovery. There is a suggestion
to increase paid-up capital requirement of commercial banks to one billion rupees. Can the
increase in paid-up capital requirement lead to mergers and acquisitions?
of Wealth Tax, duty free import of computer equipments for growth of information
technology, poverty reduction programme and income tax relief to the low-income groups and
salaried class are some of the outstanding features of the budget. The CBR related revenue
target has been fixed at Rs435 billion, which is higher, by Rs84 billion as compared to
the target of Rs351 billion set during the previous year.
Like elsewhere in
the world transport sector is the chief culprit of air pollution in Pakistan. The high
lead and sulfur content in the motor fuel used in Pakistan poses immense danger to health
of millions of people, particularly in the cities. The government's plan to reduce the
lead and sulfur content in motor fuel though late is nevertheless welcomed as a sort of
beginning as much still remains to be done.