Text of Budget Speech

ISLAMABAD:  Following is the text of budget speech presented by Finance Minister Shaukat Aziz Saturday afternoon in National Assembly.

"Bismillahir Rehmanir Rahim

Mr. Speaker  

1.It is an honor for me to present before this august House the  annual budget of the federal government for the year 2003-04. Budget will be presented in two Parts.  In the first part,  I will present an analysis of the economic policies,' development programs and human development programs that our government has initiated. In the second part, I will give details of the tax strategy and put forward the tax proposals for next financial year.

Mr. Speaker

2.This is the first budget of our democratically elected government of Prime Minister Mir Zafarullah Jamali that came into power in November 2002.

The government has formulated a realistic program to ameliorate economy of the country'. The abilities of our nation are second to none, and if we pursue and implement the right policies, we can face any challenge. We can lake charge of our better future and can give a promising future to our present and coming generations.

Together we should play our part of a true Pakistani so that we take our country to those heights where our future outlook is assured and nobody can cast an evil eye on our existence; prestige of the country is glorified and Pakistan attains a respected and rightful place regionally and globally in the comity of nations.        

3.Economic stability, continuity and consistency of economic policies are the Government's highest priority.  Shifting moods and changing priorities through Li-turns would not improve the state of the economy. Instead, it will sprout an ambience of uncertainty.

4. Therefore, Government has decided to pursue the economic policies of the past three years that are gradually beginning to pay dividends and have laid the strong foundations to build upon our reform agenda. These policies will be continued. On this basis, we are initiating a program of second generation reforms that will bring forth more prosperity in the country and improve the living standard of our people.

Mr. Speaker

5. Pakistan is standing at an important crossroads. If we advance forward by implementing the right policies, the country's economy would grow rapidly; and if God forbid we do not execute the right policies, the economy will be derailed.

6.We do not aspire that Pakistan should again be humiliated by

carrying a begging bowl before international financial institutions. We wish to deal with them on the basis of equality and in a dignified manner. For this we have to do away with the beggar bowl syndrome and the culture of crises management.

Mr. Speaker

7. We are making a new beginning. It is an extremely important journey whereby we can transform the future of the people and the country. It is

therefore imperative that we stride forward in unity, irrespective of our

political affiliations or social attachment; and in a cooperative fashion by

strengthening one another in a true Pakistani spirit because our masses want to take charge of their future. They rightly ask that even after the hard work of 56 years, when would we be able to extricate ourselves of this imbroglio?

8. I have a firm belief that no global power can keep Pakistan at bay

if we move forward in acohesive manner.

Mr. Speaker

10. These statistics reveal that the economy has been stabilized and

country's economic sovereignty is being restored. This also tells that the

current program of IMF would inshaallah be our last one; and this would be a

major signal for achievement of an important milestone towards Pakistan's

economic sovereignty. Stability in the economy is the result of reforms

pursued in the country. I would like to mention here that these reforms began fifteen years ago, in which every government has made its contribution. But since continuity could not be sustained in the reform program, the desired results could not be achieved. However, under the leadership of President General Pervez Musharraf, reforms were implemented with consistency and without reversal of policies. Consequently, positive results are beginning to show.

Mr. Speaker

11.     Despite improvement in economic conditions, we are still confronted

with challenges. Among these, there are five challenges where we need to

concentrate.

These are:

(1)     Our GDP has to grow at an accelerated rate through investment in

public and private sector. This would reduce poverty and create employment for the poor.

(2)     We have to further increase expenditures on education, health and

human development.

(3)     Due to hemorrhaging in public sector enterprises, we cannot increase

expenditures commensurate with our requirements. This has to be corrected so

that more resources could be provided for human development.

(4)     There are still many areas in the country that lack roads, water,

power, gas and other basic infrastructure. We need to do a lot in this regard  and would  require additional  fiscal  space  for this purpose.

(5)     We have to further increase investment level. Our businessmen and

industrialists   have   played   a  prominent  role   in   economic

development. We have to focus on these challenges and formulate second

generation reforms to move forward. Today's budget is the first step towards

that direction. We anticipate cooperation from all in this journey.

Mr. Speaker

12.     This year's budget is a part of a three year macroeconomic framework

spanning from 2003 to 2006. At this moment, I am presenting key features and

important targets of this framework. Among the macroeconomic targets:

(1)     Increase in GDP to 6% by FY 2005-06.

(2)     Inflation to remain at 4.0% throughout to FY 2005-06.

(3)     Investment to GDP Ratio to reach 18%.

(4)     Fiscal deficit to reduce to 3% of GDP.

(5)     Current Account Deficit to remain in the vicinity of 1.8% of GDP.

(6)     Pakistan's   foreign  exchange  reserves  to  remain   minimum

equivalent to 28 weeks of imports

13.     These statistics reveal that we are already performing better in some targets and will improve the remaining in the years ahead.

Mr. Speaker

14.     Now I wish to give some details of the Annual Development Plan which

is an integral component of the budget and has the potential to increase the

growth rate of the economy.

15.     The National  Economic  Council  chaired  by the  Prime  Minister  Mir Zafarullah Khan and attended by four provincial Chief Ministers and federal ministers, has approved the annual plan of Rs. 160 billion. This program is 30% higher than the current Financial year's plan of Rs. 120 billion.

16.     This increase is unprecedented in the history of Pakistan and has been made possible due to decrease in debt servicing payments and increase in revenues.

17.     Development program has three important objectives

(1)     That we provide resources for education,  health and  poverty

reduction.

(2)      We  improve the availability of water  for agricultural  sector

through  construction  of  new  dams,  new  canals  and  by improvement in the present irrigation system.

(3)     Third aim is to improve our infrastructure which includes roads,

railways, electricity and gas supply.

Mr. Speaker

9. Since budget is an integral part of economic policy, it is imperative that I should apprise the House of the budget's philosophy and its key economic indicators. In this regard, the Economic Survey of Pakistan 2002-03 has already been released. Therefore, I will briefly touch upon some fundamental statistics:

(1)     By the grace of God, the country's Gross Domestic Product (GDP) during the current financial year increased by 5.1% and is better than this year's initial target of 4.5%. and previous year's revised GDP growth of 3.4%. This GDP growth is the highest in the last 8

years. This growth rate has taken Pakistan out of the low growth phase that the country was experiencing for the last five years; and today we have the highest growth rate in South Asia.

(2)     Per Capita income has increased by  12% on account of this

growth.

(3)     Each sector of the economy has played its due role in GDP growth.

Agriculture has grown by 3.8%. Large Scale Manufacturing has grown by 8.7% and Services sector by 5.2%. The performance of all these sectors has surpassed its targets.

(4)     Inflation remained 3.3%. which is better than the target of 4.0%.

This has brought stability in prices and supply of all items has increased. This is owed to continuity in economic policies and stability in exchange rates. (5)     Investment has reached  15.6% of GDP which shows that our private sector is gaining activity and investment is taking place in the textiles, engineering and the small and medium enterprise

sectors.

(6)     Foreign direct investment, during the first nine months of this year

has increased by over 100% and has touched about $700 million. 

(7)     Our foreign exchange reserves have reached $10.5 billion and these are equivalent to finance eleven month of imports. These reserves  have  given  us  economic  sovereignty  as  well  as strengthened investor's conFidence and exchange rate. Growth in

reserves has been due to increase in exports, which has been 21%:

Workers' Remittances have seen a historic increase, which would be more than $ 4 billion during this year; and this increase in reserves is also due to rescheduling of our external loans.

(8)     In addition our current account had a surplus of $ 3 billion: which

is a sign of economic recovery.

(9)     As a result of all the above policies, Pakistani Rupee vis-a-vis US

dollar has appreciated by 11% and this would have been even better but State Bank stabilized the dollar rate in a prudent manner to arrest any negative effect on our exports.

(10)   This year our tax collection has increased by 15% and we hope to

achieve this year's target Inshaallah.

(11)   Expenditures have been kept under control. Provision of sufficient funds was ensured for the key expenditures comprising education.

health, development programs and defense (12)   Our Fiscal deficit would be contained to 4.6% of GDP due to increase in our revenues and control in expenditures. (13)   I am pleased to announce that the colossal amount of funds that were  used  to  service  debt  liabilities,  have  been  curtailed substantially. These expenditures have come down from 66% to

36% of our revenues. This is an important improvement which has

provided additional fiscal space.

(14)   The mark-up rates have substantially declined. Due to our policies,

mark-up on Government's domestic debt has also come down significantly. Today, Government is paying less than 2% mark-up on treasury bills.

(15)   Banks and financial institutions are sufficiently liquid, which has

improved investment. Bank loans for the private sector have reached Rs. 120 billion this year as compared to Rs. 37 billion last year. Loans for agricultural sector have increased to Rs. 38 billion this year compared lo Rs. 35 billion last year.

(16)   Pakistan's stock market is on its way to attaining new heights. Today. Pakistan is rated among the few best performing markets of the world.

Mr Speaker

18.  For achieving these objectives, we are taking the following measures:

(1)      We  are  spending  increasingly  higher  share  of expenditures  on

poverty reduction. This year Rs. 161 billion have been expended and next year we will take these to Rs. 185 billion which is 15% higher. These expenditures include education, health, population planning, water supply and sanitation, rural development and housing. Now I would present few important points relating to development program.

(2) We have allocated Rs. 3.1 billion for education sector which is

80% higher compared to last year. Provision of Rs. 4.5 billion has

been made for higher education which is 20% higher compared to

previous year.

(3) In health sector, we have allocated Rs. 4 billion which are 20%

higher than previous year.

(4) We have kept Rs.4 billion for Tameer-e-Pakistan program which will be made available to the Parliamentarians. Electricity, gas, water supply and other small schemes will be completed under this program.

(5) Rs. 2.5 billion will be provided for food support program, which will provide cash subsidy to 1.2 million poor families.

(6) We have come a long way in the area of micro-finance. Khushali Bank has opened its offices in 35 districts, and 75,000 poor families have been disbursed an amount of Rs.  1.3 billion. Its offices are being opened in all districts. In addition to that, micro  finance operations of the Poverty Alleviation Fund. through private sector and NGOs are providing loans to thousands of poor people, the number which is increasing with time.

(7)Zakat program is also alleviating sufferings of I million poor.

(8)     Information  technology  remains  an  important  focus  of  the government. A large number of projects aimed at promoting IT and its education have been completed and many more are planned for the nest year. For this purpose an allocation of Rs.2 billion has been made.

(9)     Special importance has been given to agriculture and water sector. Rs. 17 billion have been earmarked which are 60% greater than previous year. Emphasis in this sector would be laid upon dams, new canals and lining of canals, which would improve water supply and generate employment for thousands of people.

(10)   In the infrastructure sector, we are providing sufficient funds to electricity, railways and roads. Rs.56 billion are being provided to this sector which includes construction of new roads and projects relating to gas supply, electricity and railways.

(11)   Gwadar port is a project of historical significance for Pakistan. Gwadar would  serve an important seaport  for  Pakistan. Afghanistan and Central Asia. Work on this project will be completed by the end of next year, through the cooperation of our friendly neighbor China.  Government has decided to declare Gwadar as a Special Economic Zone. All imports coming through this zone would be exempted from customs duty and sales tax alongwith sufficient concessions on income tax. Details relating to Gwadar Special Economic Zone would be released m the next few months.

19. Debt is a major economic ill afflicting our economy. Government has developed well a planned strategy to reduce the debt burden. Over the last three years, we have reduced  the burden of most expensive foreign  liabilities on Pakistan by nearly $3 billion from $37.9 billion as on 3 0-6-2000 to a projected level of $34.9 billion as on 30-6-3002. This represents a reduction of nearly 15%

in foreign  liabilities.  In addition, our external  debt has undergone a

major re- profiling, whereby the share of expensive debt has declined compared to soft term debt.  Both  these  initiatives  were  made  possible  through  a  combination  of rescheduling, increased availability of foreign exchange reserves and contraction of soft loans. We have developed a plan to retire expensive foreign loans worth $4.5 billion in the next few years. Due to this at least $1 billion worth of loans will be retired annually. 20.     On the domestic side we have achieved considerable success by reducing outstanding domestic debt as percentage of GDP for the second consecutive year. 

From 50.5% of GDP in 2000-01. the outstanding domestic debt has declined to 43.5% of GDP. This has been made possible by a massive reduction in the rate of return on government borrowing, which at present is less 2% for treasury bills. Consequently, the overall debt servicing burden has declined significantly from 64% of total revenues to only 36% of revenues. Clearly, this has provided the much needed additional Fiscal space which has allowed us to spend more on development budget.

21.Inflation was contained due to government policies and aggregate increase in prices remained 3.3% . Our prices are relatively low when compared to neighboring

countries. However electricity prices are sensitive to the  price of oil in global markets. Both WAPDA and KESC are trying to improve their performance. Government has provided an amount of Rs. 76.5 billion in subsidies to both WAPDA and KESC. Rs.53 billion have been earmarked in next year in this regard. The prices of electricity have not increased to the

extent as these could have in the absence of these subsidies. 

Prices of electricity are likely to be decreased in the next two to three years because there will be reduction in payment to IPPs. furnace oil  is being replaced with gas, Ghazi Barotha project would be  operational and electricity production through coal will begin  in Thar. These measures coupled with improvements in efficiency of  KESC and WAPDA, will have positive effect on prices. In  addition. Prime Minister has constituted Alternative Energy  Board which would promote electricity generation projects through  solar and wind energy. 

22.Government is laying special emphasis in creating employment opportunities. Public and private sector investment is required in this regard. As you know, this year we have increased our development budget by 30%, which is a historical increment. This would provide thousands of job opportunities. 

23.In addition to that, facilitations to SME sector and provision of micro credit would further provide job opportunities. This  year Overseas Employment Corporation assisted in providing jobs  to about 150.000 Pakistanis abroad. We  are striving in this  direction and it requires further efforts. We are enhancing private investment to create more  employment opportunities. 

24. Present improvement in economic indicators and continuity in policies have put forth a rising trend in private sector investment.  We hope that businessmen and industrialists of the country would  invest more and create additional job creating  opportunities. Proposals announced in the budget would  enhance investment in the country.

25. SME sector has a vital role to play in increasing  investment and creating job openings. Reduction in mark-up rates  and tariffs would further encourage investment in this sector. State  Bank is framing new prudential regulations for this purpose,  catering to special needs of this sector. SME Bank is also being  made more professional and proactive.

26.Expatriate Pakistanis arc playing a crucial role in  improving the economy. Remittances are likely to reach the record  limit of $4 billion, foreign Exchange Remittance Card scheme

is being streamlined and duty allowance for Silver Card is  being increased from $800 to $1,000 and for Gold Card from $1,500  to $2.000. In addition, in baggage allowance, duty free imports of  DVD, CD players, tape recorders, sewing machine and gas burners

are being included.

Mr. Speaker

27.     In any civilized society owning a house is a necessity  for every family. In Pakistan sufficient attention has not been  given to development of this sector which was due largely to the non-availability of Financing.

According to an estimate, there is a shortage of about 5.4 million  houses in Pakistan and this is rising every year. Provision of  financing is essential for the growth of this sector. Also,

because the sector holds strong backward and forward linkages  with other industries, its growth will unleash growth in  these related sectors. Government is there fore making

such arrangements with State Bank that would enable people get  loans to build or buy houses. As an important step we are  initiating a program whereby government employees ~ill

he provided guarantees lo obtain loans to housing from

House Building Finance Corporation .

28.  To develop Housing sector, government has decide to  provide some incentives which include:

(1)  25% reduction in excise Duty on cement.

(2)  Elimination of Excise Duty on wires and cables

(3)  Increase in limit of Tax exemption on Mark-up

(4)  Improvement in Lending Ratio.

(5)  Increase in maximum limit of loan

29.  Availability of loans on easy terms will result in development

of this sector. This will also result in increase in demand

of down-stream industries  and employment opportunities will

be created.

PART-II

Mr. Speaker

32. Now I come to the second part of the budget speech which

contains Ta Proposals. 

33.Tax  Policy and  administration have  been  an  important 

part  of Government's reform agenda. We have made considerable

progress in the direction and it would remain an area of prime focus

of our future efforts.

34.Important measures taken in the Tax Administration

reforms art follows:

INCOME TAX

35.New Income Tax Ordinance 2001 that has been made  effective in current year is a revolutionary measure which  would facilitate payment of taxes, minimize interaction

between tax officials and taxpayers and the discretionary  powers  of tax officials would be curtailed.

(1)  To facilitate payment of taxes, a Large Taxpayers Unit

has established in Karachi, and a number of Medium Taxpayer

are being opened in different cities. Provision for payment taxes

would be made available in

these units, in a friendly and professional ambience.

(2)  Under the new law all income tax returns will be on self-assessment

basis and audit mode is being adopted to replace the existing culture of assessment regime. Self-Assessment is easy, simple and transparent.

CUSTOM

36.     In the area of Customs, we have taken the following steps:

(3)  The objective of customs reforms is to discourage mis-declaration, under invoicing and smuggling which causes loss of billions of rupees to the

country.

(4)  Clearance of goods at the sea-port and airport would take 48 hours

instead of 8 to 10 days.

(5)  Procedure of customs clearance is being made easy  through computer

aided filing of import documents and system of risk management and self

assessment.

37.This would expedite clearance  of goods worth billions of rupees  at Karachi sea port and would facilitate our industrialists and businessmen. Pilot of the new system would commence this year which would be extended to the whole country from the next year.

SALES TAX

38.In the case of sales tax following measures are adopted;

(6)  Alternate Dispute Resolution System has started functioning. Panels have been formulated in the private sector through this system and these

panels would play an important role in addressing the issues related to

Sales Tax.

(7)  Through a number of reforms undertaken by the Government refund of sales tax is being simplified, and refunds to Gold and Silver Categories would be made in a single installment instead of multiple installments.

(8)  Although the reforms in tax refund system would cost a sum of additional Rs. 6 billion to the Government, we are implementing this to facilitate  the exporters so that our exports can be increased.

Here are some salient features of the Finance Ministers' budget 2003-2004 speech: 

• The total outlay of the federal budget 2003-04 is estimated at Rs 805 billion. 
• Around 5.1 percent increase in Gross Domestic Product.
• The agriculture yield has increased by 3.1 percent.
• Investment GDP increased by 15 percent.
• Investment at both small and medium level has improved by a substantial difference.
• Foreign exchange reserves have reached as high as US$ 10.5 billion.
• Rs4 billion have been earmarked for health.
• Rs4 billion have been allocated for the Tameer-e-Pakistan Programme.
• Rs3.1 billion have been allocated for education.

• CED on paper, paper board, wires and cables eliminated, reduced on cement

• Govt announces 15 % increase in salaries of employees  

• Rs160 billion allocated for the Public Sector Development Programme.

•  Easy construction or purchasing new house loans announced for the government employees.

• The nominal increase in the current expenditure has been made.
  Rs.53 billion has been earmarked for subsidies of electricity consumers.

• Rs.518 billion revenue target has been set for the next fiscal year. 

•  The 25 reduction in excise duty for cement announced.

Rs805.2 billion federal budget presented

ISLAMABAD: The government on Saturday announced National Budget 2003-04 with a total outlay of Rs. 805.2 billion, showing an increase of 8.5% over the budget estimates of 2002-03.

The resource availably during the next fiscal year has been estimated at Rs.767.3 billion against Rs.761.1 billion and Rs.828 billion in the budget and revised estimates of 2002-03 respectively.

Net Revenue receipts for the next budget have been estimated at Rs.513.5 billion, indicating an increase of 6.7% over the budget estimates of the outgoing fiscal year 2002-03. The capital receipts (net) for 2003-04 have been estimated

at Rs.36.7 billion against the budget estimates of Rs.35.9 billion in 2002-03.

The receipt from external resources in 2003-04 are estimated at Rs.159.1 billion. This shows a decrease of 5.8% over the revised estimates for 2002-03.

The overall expenditure during 2003-04 has been estimated at Rs.805.2 billion of which the current expenditure is Rs.654.2 billion and development expenditure at Rs.160 billion.

Current expenditure shows a decline of 4.2% from revised estimates of 2002-03. Development expenditure will increase by 21.5% in 2003-04 over the revised estimates of 2002-03. The share of current expenditure in total budgetary outlay

for the next fiscal years is 80.1% as compared to 83.6% over the

revised estimates for 2002-2003.

The expenditure on running of civil governments (inclusive of superannuation allowance and pension) is estimated at Rs.100.6 billion, indicating an increase of 8.6% over revised estimates of the outgoing fiscal year.

The provincial share in federal receipts is estimated at Rs.214.8 billion during the next fiscal year which is 11.4% higher than the revised estimates for 2002-03.

The size of public sector development programme (PSDP) for 2003-04 is Rs.160 billion. This shows an increase of 19.4% over the budget estimates for 2002-2003 and 21.5% over the revised estimates of 2002-03. 

Education gets Rs3107 millions 
ISLAMABAD: The government has allocated Rs3107. 102 million for education in Pubic Sector Development Programme (PSDP) According to budgetary documentary document released here Saturday.

Rs172. 050 million allocated to combat narcotics
ISLAMABAD: The Narcotics Control Division has been given Rs 172.050 million in the financial year 2003-04 for the eight ongoing and one new project.

Rs17b allocated for agriculture, water sector
ISLAMABAD:  The federal government has made a 60% increase for the agriculture and water sector with emphasis on building dams, new canals and lining of canals.  

Rs701.345 million allocated for Works Division
ISLAMABAD: A total of R 701.345 million have been allocated for the Works Division with no foreign aid in the budget 2003-04. 

Welfare spending up in Pakistan government's first budget

ISLAMABAD: Pakistan's Finance Minister Shaukat Aziz ignored rowdy opposition protests to deliver the eight-month old government's first budget Saturday, outlining boosts to welfare, development and infrastructure spending.

The 805-billion rupee (13.8 billion dollar) budget for year to June 2004

will see a 31 percent increase in public sector development spending to 160 billion rupees, Aziz said.

"This is an unprecedented increase in the development budget in a single

year," he said above a din of desk-thumping, foot stumping and angry chants from opposition MPs waging a campaign against President Pervez Musharraf's self-appointed rule.

"This will create more jobs and help eradicate poverty. We want to come out of debt trap, we want to end the culture of begging bowl." Higher than expected growth for the current financial year, which is estimated to come in at 0.6 percent higher than the targeted 4.5 percent -- according to figures for the first 11 months of the fiscal year -- would help fund the extra spending.

Increases in spending on education, health, and agriculture were also

flagged but no amounts were specified. Education last year won only a paltry 2.2 percent of the budget and economists have urged the government to at least double the figure in the new budget.

Also missing were figures for debt-servicing, which has swallowed the vast portion of the budget in recent years. Aziz only said that debt servicing had decreased "significantly." Direct defence spending remained steady at 160 billion rupees. "For the first time in the this country the defence and development budgets are equal," Prime Minister Zafarullah Jamali told reporters afterwards. "It provides reasonable amount for defence of the country."

Rs56 b allocated for infrastructure sector in budget

ISLAMABAD:  Finance Minister Shaukat Aziz Saturday said Rs.56 billion are being provided to infrastructure sector for construction of new roads and projects relating to gas supply, electricity and railways.

Announcing the Federal Budget 2003-04 in the Parliament House, he said work on Gwadar seaport project will be completed by the end of next year with the

cooperation of China.

He said the government has decided to declare Gwadar as a Special Economic Zone.

All imports coming through this zone would be exempted from customs duty and sales tax along with sufficient concessions on income tax, he added.
 

Rs2 b allocated for IT in budget

ISLAMABAD: Finance Minister Shaukat Aziz Saturday said Rs. 2 billion has been allocated to promote IT and its education in the country.

Announcing the Federal Budget 2003-2004 in the Parliament House here, he said, Information Technology  remains an important focus of the government.

A large number of projects aimed at promoting IT and its education have been completed and many more are planned for the next year, he said.

Bank loans for private sector reach Rs120 b this year

ISLAMABAD: Finance Minster Shaukat Aziz Saturday said bank loans for the private sector have reached Rs. 120 billion this year as compared to Rs37 billion last year.

Announcing the Federal Budget 2003-2004 in the National Assembly here, he said loans for agricultural sector have increased to Rs 38 billion this year compared to Rs35 billion last year. 

National Assembly session adjourned to meet again on Tuesday
ISLAMABAD: After the presentation of federal budget for the year 2003-04 by the Finance Minister Shaukat Aziz in the House, Speaker National Assembly adjourned the house to meet again on Tuesday.
  

Shaukat Aziz announces there will be no mini-budget 
ISLAMABAD: Federal Finance Minister Shaukat Aziz Saturday announced that there would be no-mini budget.

Wealth Tax law abrogated 
ISLAMABAD; Federal Government Saturday abrogated Wealth Tax Law aiming to end confusion about the payment of Wealth Tax. In his budget speech, Finance Minister Shaukat Aziz nnounced the abrogation of Wealth Tax Law. 

Senate session starts  
ISLAMABAD: Senate session started here Saturday  afternoon with the recitation of verses from the Holy Quran. Chairman Senate, Muhammadmian Soomro chaired the session.  

CED on paper, paper board, wires and cables eliminated, reduced on cement

ISLAMABAD: The government Saturday eliminated Central Excise Duty (CED) on paper, paper board, wires and cables while reducing  CED on cement by 25 per cent.

Announcing the budget for the year 2003-2004, Finance Minister Shaukat

Aziz said, to reduce the cost of stationery and books and to reduce the construction cost of houses the government had decided to eliminate CED.   

Budget debate duration extended to six days
ISLAMABAD: Speaker National Assembly Chaudhrt Amir Hussain extended duration of general debate on the Budget from five to six days.

He was presiding over the meeting of Business Advisory Committee today. The Speaker also accommodated the demand of opposition on cut-motions and enhanced the number of Ministries from five to six.

Punjab PA budget session on 14th
LAHORE: The budget session of the Provincial Assembly would be convened on coming Saturday, 14th of June, Punjab Agriculture Minister Arshad Khan Lodhi told this scribe here on Saturday. 

Pakistan Parliament paralyzed by protest as key debate on budget looms 

ISLAMABAD: Budget debates often are tedious affairs, filled with disagreements over numbers and the minutiae of policy, but Saturday's session of Pakistan's national Parliament promises to be much more lively.

Opposition parties angered over President Gen. Pervez Musharraf's dual role as civilian president and commander of the armed forces have refused to debate a single bill in months, harassing speakers off the podium and staging mass walkouts.

The opposition, led by a coalition of hardline Islamic groups, is promising more fireworks on Saturday. ``One thing is clear. We are going to protest,'' said Munawar

Hassan, secretary general of Jamaat-e-Islami, the largest group in the Islamic alliance. ``We don't think the government is eligible to present the budget.'' Farhatullah Babar, spokesman for the secular Pakistan People's Party, another leading opposition group, promised ``forceful protests'' if the government tries to present the budget.  

Budget to provide relief to common man: Jamali  

ISLAMABAD: Prime Minister Mir Zafar Ullah Khan Jamali Saturday said government has provided relief to the people in the federal budget as there is no new tax and salaries of government employees have been increased by 15 per cent.

Talking to newsmen after presentation of the budget in the National Assembly, Prime Minister assured that there would be no mini-budget and said that increase in the salary of employees, the government has to incur a sum of Rs. 120 to 150 million.

Referring to the protest by opposition members on the occasion of presentation of federal budget, the Prime Minister said the budget is not a personal thing, it is not related to government only but is budget of the whole nation.

The Prime Minister said that government has not increased the defence budget and categorically stated that this will not have any effect on  National defence capability.

He said the government has increased the allocation for development projects which will directly effect improvement the common man.

Answering a question about any pressure for not increasing defence budget, the Prime Minister made it clear that there is no pressure from any side on the government in this regard. He said there is no link of decision of not increasing the defence budget with regard to Confidence Building Measures with India.

Replying to a question about arrangements to present the budget in the National Assembly, the Prime Minister Mir Zafar Ullah Jamali said government managed all things before presentation of the budget which were visible today.  About the role of opposition in the assembly today, he said it is their own decision and added it was not good on part of the Opposition.