Budget 2023-24 receives ‘mixed reaction’ from trading community

ISLAMABAD: The federal budget for the fiscal year 2023-34, presented by Minister for Finance and Revenue Ishaq Dar, evinced mixed reactions from the trading community, ARY News reported on Friday.

Finance Minister Ishaq Dar presented the federal budget for Fiscal Year 2023-24 with a total outlay of Rs14.5 trillion.

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

The budget is being keenly watched as the government is caught between a painful fiscal adjustment reforms agenda set by the IMF, and to make room for any relief to the people ahead of a national election scheduled in early November.

Karachi Chamber of Commerce

Addressing a press conference, Tariq Yousuf – President of Karachi Chamber of Commerce – termed the Budget 2023-24 ‘non-friendly’, saying that it was very difficult to run this budget next year.

Tariq Yousuf noted that there was no mention of reduction in energy tariff, adding that the federal government would fail to reach the targets set in the budget.

Meanwhile, vice chairman Anjum Nisar said that the country’s exports will likely to be less than $30 billion, adding that the target of Federal Bureau of Revenue (FBR) will not be achieved.

Taking over the presser, AK Khalil criticised the government for allocating “only Rs17 billion” for Karachi. “The city which runs the country has been ignored in the budget”, he added.

FPCCI

In a statement, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) said that no special measures were announced in the new budget.

It noted that the information technology (IT) sector should be given incentives like the textile industry. “Exports would increase if IT sector is given special incentives”, the FPCCI added.

The federation also raised questions over the tax targets set in the Budget 2023-24, saying that tax targets could not be achieved this year as well. “More burden was put on the taxpayers instead of increasing the tax net,” he said.

Pakistan Business Forum

Meanwhile, Pakistan Business Forum – in a statement – expressed ‘disappointment’ over the federal budget, saying that no measures were taken to restore business confidence.

It also expressed concerns over the increase in rate of super tax, saying that 18 percent sales tax was imposed on essential items. “Export target was set at $30 billion which is insufficient”, it added.

“Rs200 billion new taxes were imposed amid the rising inflation,” the forum said. However, it lauded the announcement of removal of import duty on agricultural products.

Hyderabad and Sialkot chambers

Hyderabad and Sialkot chambers of commerce have lauded the budget 2023-24, terming it a ‘positive move’.

“The government has presented a positive budget in such financial difficulties”, said Vice President of Faisalabad Chamber.