"\u003chtml xmlns:o=\"urn:schemas-microsoft-com:office:office\"\r\nxmlns:w=\"urn:schemas-microsoft-com:office:word\"\r\nxmlns=\"http://www.w3.org/TR/REC-html40\"\u003e\r\n\r\n\u003chead\u003e\r\n\u003cmeta http-equiv=Content-Type content=\"text/html; charset=windows-1252\"\u003e\r\n\u003cmeta name=ProgId content=Word.Document\u003e\r\n\u003cmeta name=Generator content=\"Microsoft Word 11\"\u003e\r\n\u003cmeta name=Originator content=\"Microsoft Word 11\"\u003e\r\n\u003clink rel=File-List href=\"2012J35_files/filelist.xml\"\u003e\r\n\u003ctitle\u003eBUDGET SPEECH 2012-13\u003c/title\u003e\r\n\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:DocumentProperties\u003e\r\n  \u003co:Author\u003eAdil Hafeez\u003c/o:Author\u003e\r\n  \u003co:Template\u003eNormal\u003c/o:Template\u003e\r\n  \u003co:LastAuthor\u003eAdil Hafeez\u003c/o:LastAuthor\u003e\r\n  \u003co:Revision\u003e2\u003c/o:Revision\u003e\r\n  \u003co:TotalTime\u003e0\u003c/o:TotalTime\u003e\r\n  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div.MsoNormal\r\n\t{mso-style-parent:\"\";\r\n\tmargin:0in;\r\n\tmargin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:12.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-fareast-font-family:\"Times New Roman\";}\r\n /* Page Definitions */\r\n @page\r\n\t{mso-page-border-surround-header:no;\r\n\tmso-page-border-surround-footer:no;}\r\n@page Section1\r\n\t{size:8.5in 11.0in;\r\n\tmargin:1.0in 1.25in 1.0in 1.25in;\r\n\tmso-header-margin:.5in;\r\n\tmso-footer-margin:.5in;\r\n\tmso-paper-source:0;}\r\ndiv.Section1\r\n\t{page:Section1;}\r\n--\u003e\r\n\u003c/style\u003e\r\n\u003c!--[if gte mso 10]\u003e\r\n\u003cstyle\u003e\r\n /* Style Definitions */\r\n table.MsoNormalTable\r\n\t{mso-style-name:\"Table Normal\";\r\n\tmso-tstyle-rowband-size:0;\r\n\tmso-tstyle-colband-size:0;\r\n\tmso-style-noshow:yes;\r\n\tmso-style-parent:\"\";\r\n\tmso-padding-alt:0in 5.4pt 0in 5.4pt;\r\n\tmso-para-margin:0in;\r\n\tmso-para-margin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:10.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-ansi-language:#0400;\r\n\tmso-fareast-language:#0400;\r\n\tmso-bidi-language:#0400;}\r\n\u003c/style\u003e\r\n\u003c![endif]--\u003e\r\n\u003c/head\u003e\r\n\r\n\u003cbody lang=EN-US style=\u0027tab-interval:.5in;text-justify-trim:punctuation\u0027\u003e\r\n\r\n\u003cdiv class=Section1\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027margin-bottom:.1in;text-align:center;\r\nmso-pagination:none;page-break-after:avoid;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eBUDGET SPEECH 2012-13\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027margin-bottom:.1in;text-align:center;\r\nmso-pagination:none;page-break-after:avoid;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eBy\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027margin-bottom:.1in;text-align:center;\r\nmso-pagination:none;page-break-after:avoid;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eFederal Finance\r\nMinister\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027margin-bottom:.1in;text-align:center;\r\nmso-pagination:none;page-break-after:avoid;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e[1-6-2012]\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027margin-bottom:.1in;text-align:center;\r\nmso-pagination:none;page-break-after:avoid;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003ePART-I\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027margin-bottom:.1in;text-align:center;\r\nmso-pagination:none;page-break-after:avoid;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eBismillahir Rehmanir\r\nRaheem\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.8pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eMadam Speaker\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.8pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eI want to start by thanking Almighty\r\nAllah for giving me the responsibility to present the fifth budget of the\r\nelected government. This is a historic occasion. The nation should be proud of\r\nthis achievement. The world can see that democracy is thriving in Pakistan.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.8pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThis Parliament has made landmark\r\nlegislations, and I want to appreciate the Leader of the House, Prime Minister\r\nYousuf Raza Gilani for making the parliament the centre of political life of\r\nthe nation. It is appropriate that he has become the longest-serving Prime\r\nMinister in the history of our nation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.8pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eI also want to acknowledge the\r\ncontributions of the leadership of the opposition and all the political\r\nparties, who have worked for the success of democracy.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.8pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAnd I want to recognize your role Madam\r\nSpeaker also. The leadership that you have provided to this House and that Mr.\r\nFarooq Naek provided as Chairman of the Senate is noteworthy.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.8pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAbove all, we must recognize the wisdom\r\nand sagacity demonstrated by the President Asif Ali Zardari in leading the\r\ncountry during this transition. He returned the powers of the President to the\r\nparliament. He adopted reconciliation in national politics. History will\r\nremember the leadership of our times for their role in making Pakistan strong.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eIn 2008, this nation began a new journey.\r\nDemocracy made a come back. The people elected this Parliament. The rule of law\r\nwas established. A President was elected unanimously. Politics of\r\nreconciliation was introduced. The Constitution was restored. The Judiciary has\r\nbeen active. The media has been free. The Leader of the Opposition became the\r\nChairman of the Public Accounts Committee. Institutions were strengthened. The\r\nprovinces were empowered. The Eighteenth Amendment gave them more authority.\r\nThe Seventh NFC Award gave them more resources. Eighteen Ministries were\r\ntransferred to the provinces. The concurrent list was abolished. Normal\r\npolitical activity was allowed in FATA. Gilgit-Baltistan was granted new\r\nadministrative status. As a nation, we have managed the challenges of an\r\ninherited economic crisis, regional conflict, global turmoil, and the great\r\nfloods of 2010 - this shows the resilience of the Pakistani nation. It\u0027s a\r\ntestimony to the will of our people to overcome adversity and realize their\r\ndestiny. Let me salute the Armed Services of Pakistan, the Para-Military and Police,\r\nthe FC for the innumerable sacrifices they have rendered in protecting our\r\ncountry. Above all, let me acknowledge the men and women of Pakistan for their\r\nlove for the country and their willingness to work hard who make it strong.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eWhat we inherited?\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eIt is important that we must realize the\r\neconomic situation that this government inherited, when the people entrusted\r\nthem with this responsibility in 2008:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eReal GDP growth had slowed down;\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:8.0pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eHeadline\r\nCPI 12-months inflation had been rising since 2006 and peaked at 25 percent in\r\nOctober, 2008;\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eExternal current account deficit 8  percent\r\nof GDP\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(4)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eFiscal deficit rose to 7.6 percent\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(5)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eGross reserves declined from $16 billion to\r\n$6 billion.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:8.0pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(6)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eKarachi\r\nKSE-100 index dropped by one third, prompting exchange authorities to closedown\r\nthe market.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:8.0pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(7)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eWithin\r\nmonths, the rupee had depreciated from sixties to the eighties.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThere was no escape from starting a Fund\r\nprogram, which we received\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eas\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ewe\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ehad\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003equeued\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eup\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eearly\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ebefore\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003ecountries\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eaffected\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eby\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003e2008 financial crisis approached the Fund for support. Although we have\r\nnot achieved all of our objectives, the program helped us in stabilizing the\r\neconomy. For the last nearly two years, when Pakistan specific calamities have\r\naffected us, we managed the economy without funding from the IMF. Rather we\r\nhave repaid $1.2 billion of the loan amount.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eDuring the last four years, we have faced\r\nvolatility in international prices, the\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003egreat\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003efloods\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eof 2010,\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003edevastating\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003erains\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ein\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eSindh and parts of Balochistan and adverse security situation. These\r\nhave caused slow-down\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ein\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eforeign\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003einvestment.\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eIt\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eis\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eremarkable\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ethat our domestic\r\nbusinesses have continued to perform, and also\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003esucceed\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ein\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eholding\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eon\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eto\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003etheir\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eforeign\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ebuyers\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eunder\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003ethese\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ecircum-stances.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe world economic outlook remains weak\r\nparticularly in the Eurozone where considerable amount of our trade and\r\ninvestment is focused. It is not clear how the Eurozone crisis will play out.\r\nInternational oil prices and trade and investment from Eurozone will be\r\naffected depending on how this crisis is unfolded.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eDespite such daunting challenges, it is\r\nthe resilience of our economy and the strength of our people that we have\r\nmaintained growth in the economy. The growth rate in the last two years has\r\naveraged around 3.4% compared to less than 2% in the previous two years. This\r\nis a reasonable performance and the current year growth of 3.7% shows an upward\r\ntrend.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWith grace of Allah, we have succeeded in\r\nachieving economic stabilization and are now confident that growth will soon\r\nresume to its potential. It will now share elements of the economy showing\r\nstability and note some of our continuing challenges.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eEconomic Achievements\r\nof the Government\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eMadam Speaker\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eOur primary goal has been to stabilize\r\nthe economy.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eMacroeconomic\r\nstability\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAt the outset, let me state that Pakistan\r\nhas a stable macroeconomic framework. We have maintained a stable external\r\nposition which we have managed in the absence of IMF disbursement during the\r\nlast two years. We have returned $1.2 billion in loans from the IMF. Yet we\r\nhave adequate reserves, our exchange rate is relatively stable, our exports\r\nhave again performed remarkably well and our remittances are increasing. Our\r\nhigher imports are primarily due to global price oil shock and we are not alone\r\nis facing this external challenge.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eContinuing reforms\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWe have continued with economic reforms.\r\nThose who thought the end of Fung program would lead to irresponsible economic\r\nmanagement and loss of discipline have been proven wrong. In the last two\r\nyears, we have displayed more fiscal discipline than even in the past.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe following are the key reforms\r\nundertaken during this period:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eSales\r\ntax exemptions, except those on food items, agriculture produce, education and\r\nmedicines, have been removed.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eZero-rated\r\nregimes eliminated on domestic sales; expanding coverage.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eSales tax rate reduced from 17% to 16%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(4)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eAll special excise duties have been removed.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(5)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003e392\r\nregulatory duties have been abolished.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(6)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eMajor\r\nrationalization in excise duties; FEDs have been eliminated or rates decreased.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(7)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eFocus\r\nof tax policy has been shifted to enforcement, audit and diligent follow-up of\r\ncourt cases.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(8)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eAusterity\r\nin expenditures was continued for the second consecutive year and current\r\nexpenditures, other than those for defense and debt servicing, have been kept\r\nconstant, or in some cases, brought down in nominal terms; Civilian Government\r\nexpenditure 10% than last year.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(9)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003ePoverty\r\nreducing and social safety net expenditures have been increased while ensuring\r\nthe targeting.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(10)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eDevelopment\r\nexpenditures have also been protected and fully utilized.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(11)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003ePublic\r\nsector reforms have moved forward with the appointment of professional managers\r\nin PIA, Pakistan Steel Mills, GENCO, DISCOs and reconstitution of the Board of\r\nDirectors of most of these entities.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eMore reforms in other public sector\r\ncorporations are underway;\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(12)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eDebts\r\nparked outside budget were brought into books and commodity debt significantly\r\nreduced.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(13)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eInterest\r\nrate brought down by 200 bsp by Central Bank in response to easing of\r\ninflationary pressure.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eNational Finance Commission Award and its\r\nimplications\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eOne of the revolutionary steps adopted by\r\nthis government is finalization of the 7th NFC Award. It is a watershed in\r\nfederal provincial relationship. Through this award, federal government gave a\r\nmuch larger share of federal taxes to the provinces. The combined effect of\r\ndivisible pool transfers and other related grants to the provinces,\r\nGilgit-Baltistan, AJK and FATA comes to nearly 70% of divisible pool. To\r\nappreciate the extent of such transfers, note that in 2009-2010 Rs.633 billion\r\nwere transferred to the provinces which have risen to Rs.1204 in 2011-2012, a\r\ndoubling of the amount in two years.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThis huge transfer of resources imposed\r\nmajor adjustment for the federal government in the short-run. While we grapple\r\nwith this challenge, we are confident that higher transfers will enable the\r\nprovinces to provide health, education and other services now exclusively in\r\ntheir responsibility.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003e18th Amendment and its implications\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eIt again goes to the credit of this\r\nParliament for passing the 18th Constitutional Amendment with consensus.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThis Amendment has devolved eighteen\r\nministries to the provinces. The combination of higher autonomy and larger\r\nresources will allow provinces to better serve the people.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eWelfare measures and poverty reduction\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eDespite the challenges we have faced, the\r\nwelfare of the poorest segments of population was always in our minds.\r\nInsulating and protecting them from the vagaries of swinging economic\r\nconditions is an important goal of economic policy.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe flagship program of the government in\r\nthis regard is the Benazir Income Support Program (BISP). It is a program\r\nrecognized as one of the best international practices. The program aims at\r\ncovering nearly 7 million vulnerable households in the country for provision of\r\nRs.12,000 per year. Women are the recipient of cash support in the family,\r\nunderstandably as they are the ones managing the households.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe program has many additional features\r\nthat allow funds for training, health insurance and small business to graduate\r\nfrom the program.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.0pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eApart from this, we have undertaken a\r\nnumber of initiatives to broaden the social safety net programs for the aid and\r\nsupport of the poor and calamity affected population. Pakistan Poverty\r\nAlleviation Fund, Bait-ul-Maal, Citizen Damage Compensation Program (CDCP),\r\nprovision of low-mark-up loans for affected farmers etc. are some of the\r\nprograms through which hundreds of billions of additional funds have been\r\nprovided to mitigate the sufferings of the poor.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThere are other programs of support. We\r\nare providing electricity at one-sixth the cost of production to about eight\r\nmillion lifeline families whose consumption is below 50 units per month.\r\nInstead of paying Rs.600 per month, they need to pay less than Rs.100. The\r\ntotal subsidy given on electricity on consumption under 700 units in a month\r\ncomes to around Rs.180 billion annually. We are giving a subsidy of at least\r\neight billion rupees per year for sugar. In addition to this, are the\r\ncontinuing poverty alleviation programs like the Bait-ul-Maal, under which Rs.\r\n1000 billion have been distributed to the poor over the past four years.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWe have been giving employment\r\nopportunities for the educated unemployed. In the National Internship Program,\r\n100,000 Masters Graduates were provided training in high demand areas. We\r\nfacilitated the employment of at least 1.6 million Pakistanis abroad during the\r\nlast four years. We created hundreds of thousands of jobs in the public sector.\r\nAnd, we converted thousands of contract employees into permanent employees to\r\ngive them security.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAs part of Peoples Government\u0027s legacy,\r\nempowerment of women has also been one of our primary concerns. We have\r\nempowered women in several ways. During the last four years, the parliament has\r\npassed no less than 24 bills to protect women\u0027s rights and to empower them.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003ePrices\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eA key objective of economic policy is to\r\nmaintain price stability. Inflation is affected by the international oil and\r\ncommodity prices, seasonality and shortages in agriculture produce and\r\ngovernment expenditures financed through printing of money. In our country,\r\nmuch of the inflation is either because of international prices and supply\r\nshocks.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe explosive inflation nearly 25% in\r\nlate 2008 is now firmly behind us. There is gradual decline in the rate of\r\ninflation during the last four years. This year it has been brought down to 11%\r\nand we are targeting single digit inflation for the next fiscal year. In fact,\r\nthere has been a decline in inflation for three years in a row. Due to our\r\nausterity last year, we froze nominal expenditure of government in the current\r\nyear the running of the civilian government is 10% less than last year.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eTax collections\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eIn the first four years of our\r\ngovernment, tax collections will be doubled from about Rs.1008 billion in June\r\n2008 to nearly Rs.2000 billion in June 2012.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eMuch of this growth has been achieved in\r\nthe last two years, where tax revenues rose from Rs.1327 billion to Rs.1950\r\nbillion representing an increase of 46% during the period. Such a collection\r\nperformance is unprecedented in country\u0027s history. This was done while reducing\r\nthe rate of sales tax, eliminating a large number of special excise duties and\r\nnearly abolishing all regulatory duties on imports, to facilitate production\r\nand growth.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eBy the grace of Allah, this performance\r\nhas been achieved by going after those who were outside the tax net, by\r\nstrengthening the enforcement regime, by massively improving the tax\r\nadministration, vigilant follow-up of cases under litigation and carefully\r\nauditing the performance of the withholding agents.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eAgriculture\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAgriculture Sector is the backbone of\r\nPakistan economy. Despite two consecutive floods, the sector has rendered\r\noutstanding performance in the last two years. This year, in particular,\r\nagriculture sector has given more production in all the major Khareef crops, namely\r\nrice, cotton and sugarcane, which have recorded unprecedentedly good\r\nproduction.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eFor the agriculture sector, we have spent\r\nthis year nearly Rs.50 billion in subsides on fertilizer when local production\r\nwas not possible due to gas shortages. We have also helped sugar growers by\r\nprocuring sugar from domestic sources. This has enabled sugar mills to make\r\ntimely payments to sugar growers. As a result of our policies, Pakistan is now\r\nexporting wheat and sugar.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eIndustry\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAfter sluggish performance in recent\r\nyears, industrial sector has begun to record positive growth. Industry will\r\ngrow by 3.4% compared to 3.1% last year. However, this is still below its\r\npotential as excess capacity remains in the industrial sector which will pick\r\nup as the economy gains further pace.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThis growth has been registered despite\r\nshortages of electricity and gas. Prominent sub-sectors where growth has been\r\nregistered are sugar, cement, automobiles, textiles and chemicals. The\r\ngovernment has given incentives to industry, opened regional and international\r\nmarkets and provided facilitation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003ePower sector\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003ePower sector remains a source of concern\r\nfor the government. Electricity is mostly generated through furnace oil because\r\nof limited gas availability. Thus, the cost of generation has risen as the international\r\nprices of oil rise. For 18 months oil price is averaging about $110 per barrel,\r\nunprecedented in country\u0027s history. We have not passed the full impact of\r\nhigher cost to the consumers and shared the burden costing us roughly Rs. 250\r\nbillion. The total amount of subsidies to power sector in the last five years\r\nis Rs.1250 billion. This is a huge burden on country\u0027s fiscal system. After NFC\r\naward, federal resources cannot carry this burden for too long.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eTariff subsides are not the only problem\r\nwith the power sector. There are system losses, non-collection of dues,\r\ninterest charges on delayed payments and host of management issues. Government\r\nis undertaking reforms to set the system right, but these are painful reforms\r\nand will not be implemented overnight.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe government has added 3500 MW to the\r\nsystem. Regarding hydroelectric power, we are working on numerous projects such\r\nNeelum-Jehlum (1000 mw), Kohala (1000 MW), Jinnah (100), Munda-Dam,\r\nKurram-Tangi, 4th Extension of Tarbella Hydroelectric power station (1400 MW)\r\nwhich will add some 5000 MW of cheap electricity to the national grid.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWork is in progress on Pak-Iran gas\r\npipeline as well as Turkmenistan-Afghanistan-Pakistan-India pipeline, both of\r\nwhich will bring as much as 2 BCF gas for Pakistan. Simultaneously, we are\r\nfinalizing plans for import of LNG that would provide another 0.5 BCF gas.\r\nProjects in solar, nuclear, wind and Thar coal are also being pursued.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eFull impact of petroleum prices\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWe have also tried to give consumer\r\nrelief by not passing all the increases in international prices. Government had\r\nto sacrifice its revenues to the tune of Rs.70 billion to prevent prices from\r\nrising to the international level\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eDevelopment expenditure\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAs economic growth is picking up, we have\r\nto sustain its momentum and accordingly we are significantly raising the\r\noverall public sector investment. This year the National Economic Council (NEC)\r\nhas approved an Annual Development Plan (ADP) from Rs.730 billion to Rs.873\r\nbillion reflecting an increase of Rs.120 billion or 25% from last year. The\r\nfederal share of ADP is planned at Rs.360 billion, representing an increase of\r\nRs.60 billion from Rs.300 billion last year, or 20%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThis year the entire Rs.300 billion\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ewere\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003ereleased\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eand\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eutilized\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003ein the Federal PSDP.\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eAt\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ethe\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003efederal\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003elevel,\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ewe\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003ehave\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ecompleted\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eover\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003e200 projects during the year including such important projects like\r\nChashma Nuclear, Khan Khowar Hydro, Rainee Canal Phase-I and roads etc.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe development strategy of the\r\nGovernment is not to spread available resources too thinly across numerous\r\nprojects, but to concentrate on completion of projects to deliver benefits to\r\nthe public at the earliest. The core priorities of the Government in next\r\nyear\u0027s PSDP include:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eCompletion of ongoing projects\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eRegional balance, with a focus on\r\nunderdeveloped areas\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eProjects with welfare of women and children\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(4)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eInfrastructural\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003edevelopment,\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eespecially\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ein\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ethe\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eenergy\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003eand\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003ewater\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(5)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eProjects in higher education\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eI will now share with you the PSDP allocations\r\nthat have been approved by the NEC for the Next Financial Year:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eOut\r\nof the total Federal PSDP outlay of Rs.360 billion, the Government has\r\nallocated Rs.346 billion or 96% to ongoing schemes.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eRs.69\r\nbillion for power sector and Rs.115 billion additional by federal entities like\r\nWAPDA and electric companies.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eWater\r\nSector has been allocated Rs.48 billion.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(4)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eRs.44\r\nbillion will be spent for the social sector.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(5)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eRs.37\r\nbillion have been provided for special areas, including FATA, Gilgit-Baltistan\r\nand AJK.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(6)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eRs.16 billion have been allocated for higher\r\neducation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(7)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eRs.84\r\nbillion for Transport and Communications sector including Rs.51 billion for NHA\r\nand Rs.23 billion for Railways.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eFocus on Regional development\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eAn important objective our development\r\nstrategy is to ensure balanced regional growth. Federal government is\r\nresponsible for special needs of Balochistan, and all needs of\r\nGilgit-Balitstan, FATA and AJK from its own programs.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eBalochistan\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eIt is important for the Parliament as\r\nwell as people of Balochistan to know what have done by way of special efforts\r\nto make for the past deficiencies in our obligations toward Balochistan:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\nshare of Balochistan was increased in the divisible pool to 9.09 percent.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eIn\r\nthe first year after the NFC Balochistan\u0027s resources were doubled.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\ngovernment also accepted the right of Balochistan to the payment of Rs.120\r\nBillion in royalty from the sale of gas between 1954 to 1991.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(4)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\nFederal Government is financing 11,500 jobs for the educated Baloch youth.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eIn addition, the Balochistan Package also\r\nincludes:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eInternships for 15000 youths\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eProvision\r\nof Agriculture Tubewell Subsidy of Rs.4.00 billion\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eFilling of 2400 vacant posts in Federal\r\nGovernment\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(4)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eRegularization\r\nof all contractual employees from Balochistan\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(5)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eSignificant share of Balochistan in the\r\nFederal PSDP.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eGilgit-Baltistan (GB)\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eIn\r\n2009, the longstanding dream of a more participatory system of governance was\r\nintroduced in GB. The offices of Governor, Chief Minister, and Ministers have\r\nbeen created. A Gilgit-Baltistan Council, democratically elected and headed by\r\nthe Prime Minister, has been introduced.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\nfinancial allocation for GB has been enhanced to bring this part of the country\r\ninto the mainstream. The block development allocation for GB has been raised to\r\nRs.16 billion during the period of Democratic Government.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eOther initiatives for GB\u0027s development\r\ninclude:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003eAppointment of 5,000 police officials\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003e100% increase in the salaries of GB police\r\nforce\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:.1in;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan style=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003eMonthly\r\nfinancial support for 50,000 households under Benazir Income Support Program\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003eRoyalty of Diamer-Bhasha Dam for local\r\npeople\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003ePSDP mega projects worth Rs.10 billion\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan style=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003eImprovement\r\nof the Sust Dry Port to enhance trade links with China\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003eExpansion of Gilgit and Skardu airports\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003eSubsidy on 150,000 metric ton wheat\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e  \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e     \u003c/span\u003eAllocation of Rs.5.5 billion for\r\ninstitutional capacity-building\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eFederally Administered Tribal Areas\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe People\u0027s Government fully realizes\r\nthat the Federally Administered Tribal Areas are amongst the most\r\nunder-developed areas of Pakistan and that sustained affirmative action is\r\nrequired to bring this region at par with the rest of the country. The\r\nGovernment is also alive to the extremely difficult circumstances that the\r\npeople of the area are passing through. It is for the accelerated development\r\nof the people of FATA that the Government provided over Rs.110 billion to FATA\r\nover the past four years. These allocations also included subsidies for wheat\r\nand electricity. For the next financial year Rs.17 billion have been allocated\r\nin the PSDP, Rs.10 billion for power subsidy and Rs.11 billion for current\r\nspending.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eAJK\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eIn the same spirit, the People\u0027s\r\nGovernment has paid special attention to the welfare of the people of Azad\r\nJammu and Kashmir. Over the past four years, the Government has provided Rs.72\r\nbillion in budgetary and development support. For the next financial year, Rs.\r\n12 billion have been allocated for development and Rs.16.5 billion have been\r\nallocated for current expenditure. A ways and means loan of Rs.8.5 billion is\r\nin addition to this. It must be mentioned that the Government is also executing\r\nmega hydel power projects like the Neelum-Jhelum in AJK, which will play a\r\npivotal role in the development of the area.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eRemittances from overseas Pakistanis\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe most outstanding support Pakistan has\r\nenjoyed is from its expatriate community. They have remitted unprecedented\r\namounts in the last two years. From about $9 billion in 2009-10 to over $13\r\nbillion this year, there is an increase of 45% in two years.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eLet me also dispel a misgiving some\r\npeople have tried to create regarding such extraordinary increase in remittances.\r\nMore than 75% of remittances are less than $500 per month, showing the\r\nfamily-help nature of such transfers. Also, we have not made any changes in\r\nforeign remittances regulatory regime, which is the same that was framed some 3\r\ndecades ago. However, we have set up the Pakistan Remittance Initiative and\r\ncontacted more than 300 foreign financial institutions to participate in\r\nremittance business and establish counter-part arrangements with Pakistani\r\ninstitutions. Also, we have encouraged global corporations engaged in money\r\ntransfer business to come to Pakistan and do business here. These initiatives\r\nare behind the outstanding performance of\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eforeign remittances that have helped stabilize the Balance of Payments situation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eImports, exports and balance of payments\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003ePakistan has experienced phenomenal\r\nperformance in exports in the last two years. Last year, exports increased by\r\n28%, crossing the $25 billion mark. This year, in spite of global downturn, we\r\nwill be able to maintain this high level of exports.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eOur imports are likely to rise 15% this\r\nyear, primarily due to higher oil prices. We had to import about 1.2 million\r\ntons of urea at a price of more than $500 dollar per ton, costing a large sum\r\nof nearly $700 million. This was imperative to save our agriculture sector\r\nwhich otherwise would have suffered immensely because of less domestic\r\nproduction.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWe have still not received nearly $1.2\r\nbillion in Coalition Support Fund, which had an effect both on our external\r\nreceipts as well as on the budget.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eFiscal Situation\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWe recognize the importance of fiscal\r\nrestraint and the need for fiscal balance. To achieve this, we have followed\r\nausterity on the expenditure side and extraordinary mobilization of taxes on\r\nthe revenue side. However, the policy of not passing the entire burden of oil\r\nprice increased and electricity prices and to preserve the safety nets for the\r\nvulnerable groups, have added to government expenditures. The reduced fiscal\r\nspace, post NFC has also curtailed government\u0027s ability to maneuver in the\r\nshort run.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eWe had targeted a fiscal deficit of 4% in\r\nthe budget. However, for the reasons outlined above, the deficit is projected\r\nto be 5.5%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eBudget Estimates for 2012-13\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:6.5pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eLet me place before the House the salient\r\nfeatures of the Budget 2012-13:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(1)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\noutlay of the federal budget for FY 2012-13 is proposed to be Rs.2,960 billion,\r\nwhich is 0.6 % higher than the revised outlay of Rs.2,940 billion for the\r\noutgoing financial year.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(2)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\ngross federal revenues have been estimated at Rs.3,234 billion during FY\r\n2012-13 as compared to Rs.2,732 billion budgeted for Financial Year 2011-12,\r\nreflecting an increase of 18.3%\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(3)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eF.B.R.\r\nis expected to generate Rs.2,381 billion, reflecting an F.B.R. tax to GDP ratio\r\nof 10.1%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(4)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eOut\r\nof federal revenue collections, a sum of Rs.1,459 billion will be transferred\r\nto the provinces under the 7th NFC Award as compared to Rs.1,203 billion during\r\nthe Current Financial Year, which means an increase of over 21.3%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(5)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\nnet federal revenues are estimated at Rs.1,775 billion during Financial Year\r\n2012-13 in comparison to the Rs.1,529 billion budgeted in Financial Year\r\n2011-12, which indicates an increase of 16.1%\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(6)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThis\r\nis expected to produce a federal budget deficit of Rs.1,185 billion\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(7)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eProvincial\r\nsurplus is estimated at Rs.80 billion during Financial Year 2012-13\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(8)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eThe\r\nconsolidated fiscal deficit is estimated at Rs.1,105 billion or 4.7% of the GDP\r\nas against 5.5% of the GDP in Financial Year 2011-12, excluding debt\r\nconsolidation of Rs.391 billion, which is 1.9% of the GDP.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:7.7pt;\r\nmargin-left:.5in;text-align:justify;text-indent:-.3in;mso-pagination:none;\r\npage-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(9)\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003eAllocation\r\nto Benazir Income Support Program will be enhanced from Rs.50 billion this year\r\nto Rs.70 billion next year\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e(10)\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eRs.10 billion will be allocated to Export\r\nDevelopment Fund\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eBenefits for the vulnerable groups/safety nets\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:7.7pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe Government has planned several\r\nfar-reaching new initiatives for Financial Year 2012-13 to benefit those groups\r\nwho deserve the special care and attention of the State. Let me share some of\r\nthese initiatives with you:--\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eA targeted subsidy on food items will be\r\ngiven by the Government to help lower income consumers through the Utility\r\nStores Corporation. Under this scheme, BISP cardholders will be given a special\r\nadditional discount of 10 percent at utility stores on essential food items,\r\nincluding sugar, ghee, rice, dall channa, dall moong, and wheat flour. This\r\nmeans that the poor will be able to buy these items at 17 percent below their\r\nmarket rates. To give the poor easy access to this concession, the Government\r\nalso plans to establish 2000 new utility stores. The scheme is expected to\r\nbring immediate relief to 35 hundred thousand families.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eTo generate job opportunities, one\r\nhundred thousand unemployed educated youth will be given an opportunity to work\r\nand develop their skills through internships and technical training. Under the\r\nNational Internship Programme, 40,000 internships, in both government and\r\nprivate sector organizations, will be offered to Master\u0027s Degree holders and\r\nanother 40,000 to Bachelor\u0027s Degree holders. In addition, 20,000 Bachelor\u0027s\r\nDegree holders will be trained in skills that are in demand home and abroad.\r\nThis intervention is estimated to cost the Government Rs.9.5 billion in\r\nFinancial Year 2012-13.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe province of Balochistan and the\r\nregions of FATA and Gilgit-Baltistan comprise the most underdeveloped areas of\r\nPakistan. The Federal Government is already implementing a number of\r\ndevelopment projects in these areas for special dispensation, but we need to\r\ntake further affirmative action for their socioeconomic uplift, so as to bring\r\nthem at par with the rest of the country. The Federal Government has,\r\ntherefore, decided to promote higher education in Balochistan, FATA and\r\nGilgit-Baltistan by paying the tuition fees of all students studying for\r\nmasters and Ph.D in reputable universities of Pakistan. This measure is\r\nexpected to cost the Government Rs.500 million annually.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eRelief to Government Employees\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eThe People\u0027s Government has always made\r\nan effort to ensure that Government servants do not face acute hardships on\r\naccount of low public sector salaries vis- -vis the private sector. To ensure\r\nthat the Government acquires and retains competent civil servants who can serve\r\nthe citizens of Pakistan with peace of mind, our Government has increased pay\r\nby more than 100% during the last four years. Similar relief has also been\r\nprovided to pensioners. And now, I am pleased to announce that in the Next\r\nFinancial Year, an ad hoc relief allowance of 20% in pay and pension is being\r\ngiven. This is the fifth successive increase in pay and pension given by this\r\nGovernment.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027margin-bottom:8.6pt;text-align:center;\r\nmso-pagination:none;page-break-after:avoid;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003ePART-II\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:8.6pt;text-align:justify;mso-pagination:\r\nnone;page-break-after:avoid;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-bottom:.1in;text-align:justify;text-indent:\r\n.2in;mso-pagination:none;page-break-after:avoid;tab-stops:.5in;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003eLet me now turn to the Part-II of my\r\nspeech which relates to tax proposals\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eTAXATION PROPOSALS\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eAs a country; we have not been successful in\r\nmobilizing revenues. Success on this front has eluded all governments.\r\nConsequently, our tax system is characterized by following features:-\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027font-family:Wingdings;mso-bidi-font-family:Wingdings\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003c/span\u003eThe overall Tax-GDP Ratio is less than\r\n10% (FBR at 8.6%, \u003csup\u003e-\u003c/sup\u003eoverall at 9.6% in FY11);\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;mso-pagination:\r\nnone;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027font-family:Wingdings;mso-bidi-font-family:Wingdings\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003c/span\u003eOnly \u003cspan style=\u0027letter-spacing:1.1pt\u0027\u003eabout\r\n\u003c/span\u003ethree million people pay income taxes\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027font-family:Wingdings;mso-bidi-font-family:Wingdings\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003c/span\u003eAbout 50% of registered corporate\r\ntaxpayers and withholding agents file tax returns\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027font-family:Wingdings;mso-bidi-font-family:Wingdings\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003c/span\u003eOnly around 100,000 persons are\r\nregistered under sales tax\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027font-family:Wingdings;mso-bidi-font-family:Wingdings\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003c/span\u003eUnder-invoicing and undervaluation have\r\nbecome a norm in our business practices\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;tab-stops:.5in;mso-layout-grid-align:none;text-autospace:\r\nnone\u0027\u003e\u003cspan style=\u0027font-family:Wingdings;mso-bidi-font-family:Wingdings\u0027\u003e \u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003c/span\u003eCollusion between the taxpayers and tax\r\ncollectors persists despite reforms\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eWe are acutely\r\naware of the centrality\u003c/span\u003e \u003cspan style=\u0027letter-spacing:1.0pt\u0027\u003eof \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003erevenue mobilization in\u003c/span\u003e country\u0027s economic\r\ndevelopment and sovereignty. For\u0027 this reasons, we have thus taken difficult\r\ndecisions to broaden the tax net, to bring in sectors that were enjoying\r\nexemption, to identify new taxpayers and to make sure that the rich abide \u003cspan\r\nstyle=\u0027letter-spacing:1.1pt\u0027\u003eby \u003c/span\u003elaw and contribute towards achieving\r\nthis very important national goal. As I mentioned earlier, our government has\r\ncollected an unprecedented amount of taxes during its tenure and particularly\r\nduring the last two years. This success is the result of the resolve of the\r\ngovernment and the co-operation of the business community. The good news is\r\nthat the overall Tax-GDP Ratio \u003cspan style=\u0027letter-spacing:1.1pt\u0027\u003eis \u003c/span\u003eexpected\r\nto improve from 9.6% in 2010-11 to 10.3% in the current fiscal year. A lot more\r\nneeds to be done to build upon this good result.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eWhile we have tried to meet the national goal of\r\nraising revenues, we have also ensured that this is achieved without extra\r\nburden on the existing honest taxpayers. We do not want those who are paying to\r\nbe burdened further. We want to lessen the load on the honest tax partners. In\r\nfact, our approach is to reduce taxes and rates so the people and businesses\r\nare not faced with too many taxes, or high rates. We only want to go after\r\nthose who are powerful, well connected, and well organized and simply do not\r\npay taxes at all.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eLet me share the good news with all honest taxpayers\r\n--- salaried employees, individual businesspersons, corporations, --- there is\r\nno extra burden on you. There is only relief for you. You have done your duty\r\nto be an honest taxpayer. We will now do our duty to give you relief.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eThe government has ensured that the interests of the\r\nsalaried class and public servants are protected. Every year, we have increased\r\nsalaries, allowances, pensions and other benefits of government employees. We\r\nhave also given tax cuts to the salaried persons and tax payers in the lower\r\nbrackets.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eLet me draw your attention to our provisions for\r\nIncome Tax.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eIn 2009-2010, we increased the basic income tax\r\nexemption limit from Rs. 100,000 to Rs.300,000, benefiting 1.2 million\r\ntaxpayers in the lower brackets. Last year, we raised this exemption to\r\nRs.350,000. In continuation of this fiscal support to the salaried class, the\r\nbasic exemption limit for Income Tax is being further enhanced to Rs.400,000\r\nthis year. Similarly, the exemption limit for business individuals and\r\nAssociation of Persons (AOPs) is also being enhanced to Rs.400,000. This will\r\nbenefit many taxpayers.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eWe have also decided to reduce the tax slabs to 5\r\nonly. Importantly, a major relief will be that only the portion of income exceeding\r\na tax bracket would be charged at the higher tax rate. A taxpayer with an\r\nincome of Rs.35,000 per month previously paying Rs.10,500 would only pay\r\nRs.1000 as tax. Apart from fundamentally simplifying the income tax system,\r\nthis measure will provide relief of Rs.8 Billion and benefit all existing\r\nincome tax payers by reducing the effective income tax rate.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eUnder the present scheme of taxation, if an employee\r\nobtains a loan from \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003ethe \u003c/span\u003eemployer at a\r\nconcessional rate, it is taxed at 13%. In order to facilitate such employees,\r\nit is proposed that such loans up to Rs.500,000 shall be exempt from income\r\ntax. Loans above this limit shall be taxed at the maximum rate of 10%.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eAs a relief measure to pensioners, \u003csub\u003e,\u003c/sub\u003eamount\r\nreceived from approved income payment plans or annuity plans invested from any\r\nbalance of voluntary pension schemes upon retirement will be exempt from tax if\r\ninvested for a period of ten years.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eThe tax collection has improved due to the\r\ncooperation of law abiding businesses and individuals. The government\r\nappreciates them. To recognize them, a taxpayers\u0027 Honour Card is being\r\nintroduced. It willentitle its holders to concessions and facilities at various\r\npublic and private forums such as NADRA, Passport offices, Airports, Customs,\r\nImmigration, FBR and, other public offices. FBR will also honour them by\r\ndisplaying their names on its official Web Site.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eWe want to give incentives in income tax to promote\r\nbusiness activity and lessen the burden on our business. I turn to some of the\r\nimporta\u003csup\u003ent\u003c/sup\u003e measures. These represent the acceptance of demands from\r\nthe Chambers of Commerce and Business Community.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eUnder the existing income tax structure, the\r\nbusinesses are being taxed at the minimum rate of 1% of their turn over, even\r\nif they are reporting losses. To mitigate the hardship faced by registered\r\nbusinesses the rate of minimum tax on turnover in this budget is being reduced\r\nfrom 1% to 0.5%. We should consider moving away from this method of collection\r\nentirely in the near future.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eThe government wants to phase out the presumptive tax\r\nregime (PTR) in three years. We are thus reducing the rates of tax from 5% to\r\n3% or commercial importers, from 1% to 0.5% for exporters and from 3.5% to 2.5%\r\nfor suppliers to give them the incentive to opt out of the PTR.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eWithholding tax on profits paid on intra-group debt\r\nis being abolished.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eCurrently there is a withholding tax on cash\r\nwithdrawals if they exceed Rs.25000 per day. This limit is being enhanced to\r\nRs.50,000 per day.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eTo rationalize the rates of depreciation, the value\r\nof vehicles is being enhanced to Rs.2.5 million, while the initial rates for\r\nnew buildings are being reduced to 25%.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eCapital Markets are important for economic\r\ndevelopment of a \u003csup\u003ec\u003c/sup\u003eountry. To develop them and give confidence to the\r\ninvestors, the changes made through the Finance (Amendment) Ordinance, 2012 may\r\nbe incorporated into the Statute through the Finance Bill.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eTo encourage the Capital Markets, exemption on the\r\nprofit and gains of a Venture Capital Company and Fund is being extended upto\r\nthe year 2024.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eTo promote investment in securities and insurance,\r\nthe limit of \u003csup\u003einv\u003c/sup\u003eestment as a proportion of taxable income is being\r\nincreased from 15% to 20% and from Rs.500,000 to Rs.1 million, which ever is\r\nlower.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eThe required\r\nretention period of shares is being reduced from 3 years to 2 years.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eTo encourage a\r\ncompetitive market for Retirement Schemes, transfer of funds between retirement\r\nfunds will \u003c/span\u003ebe \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eexempt from tax.\r\nFurther, retirement funds shall be exempt from withholding tax provisions on\r\nCapital Gains Tax.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eDividends received\r\nby banks from money markets and income funds will be taxed progressively over a\r\nperiod of two years as normal business income. Dividends will be taxed at 25%\r\nin tax year 2013 and at 35% from \u003c/span\u003etax \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eyear\r\n2014 onwards to eliminate tax arbitrage.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eTo bring certain\r\nundocumented sectors into the tax net, manufacturers are being made withholding\r\nagents to collect 1% adjustable tax on sales made to distributors and dealers.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eSALES TAX\u003c/span\u003e\u003c/b\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.1pt\u0027\u003e \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eLet me turn to\r\nsales tax.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eThis government\r\nhas reformed the general sales tax system last year, by eliminating zero\r\nrating; reduction of the multiplicity of rates; and expanding coverage to all\r\nsectors except food, health, and education. This process of reform must\r\ncontinue, to realize the full potential of this task.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eTo avoid\r\nmultiplicity or rates and decrease the burden on the consumers, all GST rates\r\nabove 16% are being brought down to 16%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eTo discourage\r\nfraudulent refunds and streamline local supply chains in plastic, sprinkler,\r\ndrip and spray equipment, mono filament yarn and net cloth, and remeltable\r\nscrap, it \u003c/span\u003eis \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eproposed to eliminate\r\nzero-rating of these items. These items shall, \u003c/span\u003ehowever, \u003cspan\r\nstyle=\u0027letter-spacing:-.1pt\u0027\u003ebe exempted from sales tax.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eLocal waste: paper\r\nis one of the major inputs used in the manufacturing \u003c/span\u003eof \u003cspan\r\nstyle=\u0027letter-spacing:-.1pt\u0027\u003epaper. The waste paper is collected and supplied\r\nby the unorganized sector, leading \u003c/span\u003eto a \u003cspan style=\u0027letter-spacing:\r\n-.1pt\u0027\u003ehigh rate of abuse through a market for flying invoices. To curb this\r\npractice, it is proposed \u003c/span\u003eto \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eexempt\r\nlocal supply of waste paper from sales taxes.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eCotton-seed \u003c/span\u003eis\r\n\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003ezero-rated while Cotton-seed-oil is exempt\r\nfrom sales tax. The mills producing Cotton-seed-oil are, therefore, not\r\nrequired to issue any sales tax invoice and their production remains\r\nundocumented. The Oil and Ghee manufacturing units using undocumented purchases\r\nmay suppress their production \u003c/span\u003eto \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eevade\r\nsales \u003c/span\u003etax. It is proposed to zero-rate Cotton-seed-oil to keep it in the\r\ndocumented sector and provide level playing field to the tax compliant Oil and\r\nGhee manufacturing units.\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eThe current sales tax of the steel sector, fixed in 2008,\r\nis at the rate of Rs.6 per unit of electricity consumed. To harmonize it with\r\nthe current market prices, this rate is being enhanced to Rs.8 per unit of\r\nelectricity consumed.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eSmuggling of goods causes injury to the local\r\nindustry, and discourages legal imports. High rates of duties and taxes on\r\nthese goods provide incentive for under invoicing. It is being proposed that\r\nsales tax on black tea be reduced from 16% to 5% to encourage legal import of\r\ntea.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eFEDERAL EXCISE \u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eLet me turn to Federal Excise Duty.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eTo bring prices down and give incentives to the\r\nprivate sector, the Government intends to phase out Federal Excise Duty (FED)\r\nin the next two years. To ensure this, FED was abolished on 15 items, last\r\nyear, and the rates were brought down on many more. The Government intends to\r\nfurther eliminate FED on the additional 10 items including base lube oil,\r\nlubricating oils, filter rods, and skin care products.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eThe Dairy Industry has great potential in Pakistan.\r\nPakistan is the fifth largest producer of milk in the world. But a very large\r\nquantity of local milk is never processed. To promote investment in dairy\r\ndevelopment, it is proposed to abolish Federal Excise Duty leviable on\r\nlivestock insurance.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eTo develop capital markets, FED on services rendered\r\nby Asset Management Companies is also being abolished.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eTo boost the construction activity and generate jobs,\r\nlast year, the FED on cement was reduced from Rs.750/ PMT to Rs.500/ PMT. This\r\nyear, it is being further reduced from Rs.500/ PMT to Rs.400/ PMT.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eFED is leviable on foreign travel to or from\r\nPakistan. However, collecting FED on foreign travel into Pakistan is\r\npractically difficult and not in conformity with international best practice.\r\nTherefore, it is proposed that FED may be collected on embarkation of\r\npassengers from Pakistan.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.35pt\u0027\u003eCUSTOM DUTY \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eRelief\r\nMeasures: \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eI now turn to\r\nCustom Duty.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eThe government\r\nwants to reduce the tariffs, simplify procedures and create a conducive\r\nenvironment for boosting the economic activities. In order to reduce the prices\r\nand to provide relief to general public, the highest tariff rate is being\r\nreduced from 35% to 30%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eEducation is the\r\nmain priority of the government. Therefore, to make text books, exercise books,\r\npencils, pens and inks available at cheaper prices, customs duty on 18 raw\r\nmaterials and 9 components for manufacturing of stationery items are being\r\nexempted.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eNew tariff\r\nheadings are being created in the Pakistan Customs Tariff, to align our tariff\r\nstructure with export partner countries (e.g. USA, EU). This measure shall\r\neliminate operational problems of exporters, particularly textiles.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eThe Government is\r\nfully aware of the hardships being faced by the people of Pakistan because of\r\nenergy shortages. To mitigate people\u0027s suffering, it is being contemplated to\r\nprovide fiscal relief on the import and installation of alternate energy\r\nsources, UPS and generators.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eMadam \u003c/span\u003eSpeaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003ePromotion of the\r\nConstruction Industry generates economic activities in thirty eight downstream\r\nindustries. To promote the use of scrap of rubber and shredded tyres as a\r\nsubstitute fuel by manufacturing plants, such as cement, duty on scrap of\r\nrubber and shredded tyres is being reduced from 20% to 10%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eTo ensure\r\navailability of medicines at affordable prices, customs duty on 88\r\npharmaceutical raw materials is being reduced from 10% to 5%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eTo promote\r\nenergy-efficient Hybrid Electric Vehicles (HEVs), the rate of duty and taxes\r\npresently applicable to HEVs and their batteries \u003c/span\u003eis \u003cspan\r\nstyle=\u0027letter-spacing:-.1pt\u0027\u003ebeing reduced by 25%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eIn order to\r\nencourage legal import of self-copy and self-adhesive papers, their high rate\r\nof customs duty is being reduced to 10%.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eAdministrative Measures\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eTo\r\nalign Pakistan Customs Tariff with international conventions, it is being\r\nupdated in conformity with the latest WCO nomenclature.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eNew\r\ndepartments are being created in Customs to deal exclusively with Transit trade\r\nissues, including the prevention of smuggling.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eTo\r\nseparate the judicial functions from the executive in Customs, offices for\r\nadjudication are being created in the Customs department to address this\r\ndemand.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eThe\r\ngovernment provides incentives to the local industry through reduced rates of import\r\nduties through SROs. These complicated procedures are being simplified and the\r\nanomalies are being rectified. These measures will reduce the cost of doing\r\nbusiness.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eConcluding Remarks\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cb\u003eMadam Speaker,\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eWe\r\nhave given a budget that will build hope and lay the foundation of a better\r\ntomorrow in which not only economic stability will be maintained but growth\r\nwill be accelerated. Our young population is our assurance for a strong and\r\nprosperous Pakistan, provided we can create job opportunities for the use of\r\ntheir capabilities. Growth is the answer and this will be our main focus during\r\nthe year.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eThere\r\nis no limit to the economic potential of Pakistan. The challenge is to create\r\nthe enabling environment in which this can be realized. May Allah bless this\r\ncountry and our people. Ameen!\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003ePakistan Zindabad\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e1-6-2012\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003c/div\u003e\r\n\r\n\r\n  \r\n\u003c/head\u003e\r\n \r\n\r\n\u003c/html\u003e\r\n"