Following are the new initiatives proposed in the federal budget for fiscal year 2017-18 which was unveiled by the Finance Minister Senator Muhammad Ishaq Dar in the National Assembly on Friday:
WELFARE
- Welfare scheme for family of martyrs – CDNS – preferred profits will be offered
- Scheme for disabled persons – CDNS – preferred profits will be offered
- Loan write-off of widows – HBFC – upto Rs 500,000
- Facilitating elderly, widows and pensioners – CDNS – IT, on-line connectivity, and alternative service delivery mechanisms – ATMs, mobile, etc.
- Overseas Pakistanis – non-convertible bond, an exclusive sector in Islamabad by CDA
- BISP Beneficiary Graduation Programme – Grants to willing self-employed individuals – Rs 50,000 grant per family will be provided to 250,000 families in the first phase
- Provision of off-grid solar solutions in sparsely populated areas, especially Balochistan
AGRICULTURE
- Continuation of subsidized electricity for agri-tube wells
- Single-digit (9.9%) mark-up rate for farmers utilizing loans up-to Rs 50,000
- Continuation of subsidy on electricity to low-income and low-usage customers
- Credit to agriculture sector – increased from Rs.700 billion target of the current year to Rs.1,001 billion
FINANCIAL INCLUSION
- Financial inclusion – loans to low-income segments through micro-finance banks, exemption from WHT on branchless banking agents
INFORMATION TECHNOLOGY
- Setting up of an IT Park
- IT export houses/companies shall be allowed to open Foreign Exchange Accounts in Pakistan
- Reduction of the withholding income tax on cell phone call from 14% to 12.5% and Federal Excise Duty from 18.5% to 17% Smart/android phones – custom duty to be reduced from Rs 1,000 to Rs 650
- Import duty is being reduced on mobile telecom products
- The start-up software houses shall be exempted from Income Tax for the first 3 years
- Exports of IT services from Islamabad and other Federal territories shall be exempted from Sales Tax
OTHERS
- Minimum wage of labour increased from Rs 14,000 per month to Rs 15,000 per month
- Pakistan Baitul Mal allocation increased by 50% from Rs 4 billion to Rs 6 billion
- Risk sharing guarantee scheme – house building finance
Source: APP
