BUDGET 2005-06

June 13 - June 19, 2005 
ISSUE # 24 

The agenda of the budget is to encourage and activate all the economic contributors by offering incentives, duty cut, exemptions and more flexible tax regime. Apparently, one gets an impression that the Central Board of Revenue (CBR) may find it hard to achieve the revenue target of Rs 690 billion at the end of the year due to tax cut and scaling down customs duties, however, the authors of the budget have taken a well calculated risk to increase revenues by creating an enabling environment for doing business and boost investment.



After the crash of stock market in March, the volatile behaviour still continues and there is an urgent need to revisit the market. It has become necessary to understand the factors, which have the potential to directly impact the market movement. It has also become imperative to understand the strength of various stakeholders. The most spontaneous response is, there is nothing like free float and small investors are conspicuous by their absence in the country. The daily trading volume is purely an outcome of traders' activity and buying/selling of the portfolio managers.

Pakistan is feared to lose drastic cut in revenues from agricultural exports owing to failure to meet the quality standards determined by the World Trade Organization (WTO).
The grave situation has prompted the government to approach the Asian Development Bank (ADB) for an additional support of Rs 1.8 billion to ensure the quality requirements of the choosy markets around the world.