24 - 30, 2002
RS742BN OUTLAY FOR 2002-03
Describing his fresh measures for 2002-03 as
'investment-friendly' and 'growth-oriented' Finance Minister Shaukat Aziz on
Saturday presented a highly modest budget of Rs742 billion against the current
year's revised budget of Rs773.3 billion, showing a reduction of 12.34 per cent
in the allocation for debt-servicing at Rs289.7 billion against Rs320 billion
allocated under this head in the revised budget for the outgoing year.
Total gross revenue receipts for the next year have been
estimated at Rs674.9 billion against the revised receipts of Rs632.8 billion,
and the overall budgetary deficit has been fixed at 4 per cent of the GDP
against 5.7 per cent recorded in the current year.
Allocation for defence in the next year's budget has been
lowered to Rs146 billion against Rs151.7 billion estimated in the revised budget
for the current year. The finance minister, however, promised to review the
allocation if and when the need arose during the course of the year in view of
the pressures on the borders.
The fiscal space created by debt-rescheduling granted by the
Paris Club in December 2001 on bilateral debt of about $10 billion seemingly
provided the finance ministry the room to effect a reduction of almost Rs31.3
billion in the current expenditure for the next year but in the face of
dwindling revenue-earning capacity of the CBR it was perhaps not thought wise to
pass this saving on to the development budget which has been fixed at Rs134
billion for the next year against the revised estimates of Rs124.7 billion for
the outgoing year.
Overall, however, current expenditure shows a decline of 2.3
per cent and development expenditure an increase of 3.1 per cent over the budget
estimates of the outgoing financial year.
According to the details, provinces will get Rs193.5 billion
during the next financial year which is 1.7 per cent and 10.5 per cent higher
than budget estimates 2001-2002 and revised estimates of 2001-2002,
NO NEW TAX IN RS84.9BN SURPLUS SINDH BUDGET
Sindh Finance Minister Abdul Hafeez Sheikh presented on
Thursday the first-ever revenue surplus budget of the province for the fiscal
year 2002-03, estimating a revenue income of Rs84.901 billion and current
expenditure of Rs 84.807 billion, showing Rs94 million surplus.
Keeping up with the traditions of the last two budgets, the
minister declared that the next budget, too, was tax free and that no increase
had been proposed in the rate of any provincial tax.
He said the current fiscal 2001-02 was ending in Sindh with a
revenue deficit of Rs5.96 billion. The revenue expenditure swelled to Rs77.66
billion against the originally anticipated Rs71.70 billion because of the
increase in the salary of the government employees announced in December. Total
revenue receipts in the outgoing fiscal year were estimated at Rs72.21 billion
while the size of the ADP was Rs4.50 billion.
CAR PRODUCTION SLOWS DOWN IN MAY
Car production of some assemblers has shown a decline in May
as compared to April figures despite clear warning from Commerce Minister, Abdul
Razzak Dawood two months back asking them to increase the production to overcome
According to figures of Pakistan Automotive Manufacturers
Association (PAMA), production of Honda Civic declined to 356 units in May as
compared to 415 units in April.
Production of Toyota Corolla dropped by 10.7 per cent to 625
units in May as compared to 700 units in April.
Dewan's Kia Classic and Spectra production plunged to 25
units in May from 243 units in April. Santro Plus production fell to 150 units
from 307 units in April while sales recorded at 173 units in May from 227 units
A total of 119 Suzuki Baleno were assembled last month as
compared to 124 units in April. Sales surged to 186 units last month from
April's 130 units.
SPI RECORDS INCREASE
The Sensitive Price Indicator (SPI) for the week ended on
June 13 for lowest income group up to Rs3,000 has registered 0.16 per cent
increase over the previous week, showing nominal hike in average prices of
The SPI for the week under review was recorded at 104.69 as
against 104.52 recorded in the previous week, according to Federal Bureau of
PMDC PRODUCING 0.3M TONS OF COAL
The Pakistan Mineral Development Corporation (PMDC) is
producing around 300,000 tons of coal annually, which is about 10 per cent of
the total production of 3 million tons of coal in the country.
This was stated by PMDC Managing Director, Brig (Retd)
Ishtiaq Ali Khan in an interview on Tuesday.
He said large deposits of coal, ranging from lignite to semi
bituminous in quality, have been discovered in all the four provinces of the
RS12BN TAX-FREE AJK BUDGET
The AJK's record deficit but tax-free budget for the fiscal
year 2002-2003, with a total outlay of Rs1,2073.5 million, was presented in the
AJK legislative assembly on Monday.
The budget allocates Rs8,773.5 million for non-developmental
expenditures, which is 1.63 per cent more than the revised budget of the ongoing
fiscal year, while Rs3,300 million, including a foreign aid of Rs412.6 million,
have been proposed for the developmental activities.
NO RELIEF FOR SUGAR INDUSTRY
The sugar industry, which is playing an important role for
the development of the rural/backward areas of the country, has not been given
relief in the budget.
A spokesman of the Pakistan Sugar Mills Association said on
Monday that this industry was paying more than Rs1.5 billion in taxes and was
among the largest employers in the country.
INFLATION ESTIMATED AT 4PC
The inflation rate during fiscal year 2002-03 has been
estimated at 4 per cent, almost double from the current rate of 2.6 per cent,
according to budget estimates.