Federal Budget 2016-17 is in the final stage of formulation, and the government has ensured the new opportunities for the Federal Government employees. Chances for the pay increase up to 10 to 20% are high subject to suitable finalization of terms and conditions with IMF.
According to officials at Federal Ministry of Finance, recommendation for increasing salaries and pensions from 10 to 20% are under consideration. It will take the additional expense of approximately fifty billion rupees.
In addition to several new opportunities, the government is going to withdraw the several tax reliefs as per the instructions of the IMF. As per the instructions of IMF, the new taxes of worth PKR 300 billion will be imposed. After the failure of immunity tax scheme imposed by the government, the government will bring the businesspeople in the tax net.
However, various reliefs will be given on the investment in the country. Tax breaks and exemptions are expected to grant for investment in the automobile industry, agriculture machinery manufacturing, and pharmaceutical products. For this PKR 600 billion are decided for the export development fund. Various promotional shows for Pakistani products will be organized worldwide.
Budget 2016-17 (Estimate)
- Total – 44 trillion
- Defense – 900 billion
- Development – 850 billion
- Tax Collection Target – 3600 billion
- GDP Target – 6%
- Export Development Fund – 600 billion
Federal Minister for Finance Senator Ishaq Dar will table the Budget 2016-17 on June 03, 2016.