. .

 5. TRADE  6. GULF



June 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, respectively.


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 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 demand.

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 in April.

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.


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 kitchen items.

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 Statistics.


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 country.


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.


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.


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.