ISLAMABAD
\nMinister for Planning Ahsan Iqbal has confirmed that the defence budget will be increased in the upcoming fiscal plan, while also assuring that the government intends to provide relief to the public.
\nHe added that there was no pressure from the International Monetary Fund (IMF) regarding the finalisation of the budget.
\nAddressing a delegation of engineers led by the Institution of Engineers Pakistan (IEP) Secretary General, Engineer Ameer Zameer, Iqbal said that water-related projects are being prioritised in response to India\u2019s water-related aggression.
\nHe added that dedicated funds would be allocated to such projects on a priority basis to ensure the country\u2019s long-term water security.
\nIqbal said the government will ensure the early completion of all hydro-related projects, including the Diamer-Bhasha Dam, to prevent India from taking advantage.
\nIqbal clarified that the delay in the upcoming federal budget is due to the prime minister\u2019s foreign visit and the Eid holidays, not due to any pressure from the IMF. He stressed that there was no IMF pressure on the budget, and the government was committed to offering relief to the people.
\nHe also stated that the security situation demands an increase in the defence budget and announced the introduction of a paid internship programme for young engineers.
\nThe planning minister reassured the engineers that their demands would be incorporated into the upcoming budget and expressed satisfaction that the IMF was content with the government\u2019s economic policies.
\nRegarding political matters, he said the country remained united following the recent military success against India. He criticised the PTI founder, saying the response to COAS Field Marshal Syed Asim Munir\u2019s recognition for exemplary leadership has not been positive from Imran Khan.
\nHe concluded by stating that the government will not take any step that harms national unity or cohesion.
\nMeanwhile, Pakistan and the IMF continued parleys for finalising the upcoming budget amid FBR\u2019s proposal to reduce rates of taxable slabs of salaried income by 2.5%. The IMF staff inquired about the \u2018alternate measures\u2019 only on the income tax side to bridge the gap of Rs56 billion arising due to the proposed relief for the salaried class in the next budget.
\nAlthough, the IMF did not agree to increase the taxable ceiling from Rs0.6 million to Rs1.2 million but there is a proposal under consideration to decrease the rate of this slab to just a token rate of 1% from the existing rate of 5%. For all remaining slabs up to 35%, the maximum slab is proposed to be reduced to 32.5%.
\nThere is a surcharge for income earners of Rs1 million per month at a rate of 10%. There is also a Super Tax on higher income brackets, so it is proposed to be reduced gradually. On the expenditure side, it is under consideration to increase the salaries of defence\/military officials, and different proposals are under consideration in this regard. The civilian side salary and pension will also be increased, but it will be in line with the proportion of CPI-based inflation.
\nKeeping in view pressing requirements of the overall defence budget as well as increasing their salaries, the FBR\u2019s tax collection target for the next budget might be jacked up from Rs14.05 trillion to Rs14.2 trillion, but the finalised revenue collection figure was still underway because it hinges upon expenditure side requirements of the Ministry of Finance.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Minister for Planning Ahsan Iqbal has confirmed that the defence budget will be increased in the upcoming fiscal plan, while also assuring that the government intends to provide relief to the public. He added that there was no pressure from the International Monetary Fund (IMF) regarding the finalisation of the budget. Addressing a delegation […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-480824","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n