ISLAMABAD: Minister for Finance Senator Mohammad Ishaq Dar said on Monday the upcoming budget 2015-16 would bring encouraging incentives for the betterment of the overall economy and for generation of employment opportunities.
He was chairing a meeting at the Federal Board of Revenue (FBR) that discussed the budget proposals for the upcoming financial year 2015-16. The minister had a detailed discussion with the FBR team on proposals related to the different sectors of the economy.
The chairman FBR briefed the minister on different proposals prepared in consultation with the stakeholders and the relevant ministries.The minister said, “This budget will Inshallah bring encouraging incentives for the betterment of the overall economy and for generation of employment opportunities.
“With this budget, the people of Pakistan will acknowledge the development-oriented approach of the PML-N government. We have tried to incorporate the suggestions from different sections of the economy in this budget and this is the most appropriate time to boost investment in areas which have the potential to grow at an exponential rate when the interest rates are historically low and we have more space available for encouraging the development works,” he remarked.
The minister also directed the FBR that the committee on PM’s Low Cost Housing Scheme should also be consulted and the positive input from their side should be included in the proposals before the budget is finalised.
Meanwhile, in a statement Ishaq Dar welcomed the announcement by the State Bank of Pakistan (SBP) to reduce its policy rate from 8 percent to 7 percent and said it would spur business and economic activities in the country.
He said the SBP decision was a manifestation of an improvement in macroeconomic conditions as reflected in multi-year low inflation and considerably improved external account.
Ishaq Dar said the historical reduction in the interest rate was now expected to be translated into significant decline in the market interest rates. “With already a significant decline in inflation containing increase in cost of production, the decline in interest rate provides a golden opportunity to the industry and other borrowers to expand their current business activities and increase their investment in Pakistan,” he said.