Based on first assessment of the budgetary tax measures announced today, it appears to be an interim budget with short-term measures for certain sectors, but lacking measures to stabilize the economy. No specific measures were announced to support ambitious Revenue targets of Rs 9.2 Trillion, neither were specific bold measures to broaden the tax base in the country. However, positive measures for IT and agriculture sectors as well as for promotion of SMEs are appreciated.
There is an absence of measures to incentivize investment in manufacturing and other job-creating sectors and no special measures to attract large foreign investment in the country.
The substantial increase in salaries and pension of government employees, partially justified, will have a snowball effect on the economy and should have been accompanied by measures to improve productivity and reduction in huge cost of governance in Pakistan. Overall, there is a need for us to go through the details of the budgetary measures before giving any final comments as one needs to understand solid measures planned by the government to justify the projected economic growth.