Budget-Highlights

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ISLAMABAD, June 3 (APP): Finance Minister Ishaq Dar Friday presented the federal budget for 2016-17 in the Parliament.
Following are the highlights:
• Economic Growth 4.71%, highest in past eight years
• Per Capita income up to $1,561, growth of 17%
• Inflation 2.82%; lowest in a decade
• FBR Revenue target of Rs 3104 to be achieved; 60% increase in three years
• Fiscal Deficit down to 4.3% in 2015-16
• Exports declined by 11% recorded at $18.2 billion
• Imports at $32.7 billion; savings from oil import around 40%; diverted to increased import of machinery.
• Cumulative growth of 40% in machinery over last three years.
• Remittances were $16 billion in 2015-16; target for 2016-17
$19 billion
• Exchange Rate stable at Rs 104.70 per dollar
• Foreign Exchange Reserves increased to historic $21.6 billion
• Current Account Deficit maintained at 1% of GDP over three years

• Fiscal Deficit to be reduced to 3.8% of GDP for 2016-17
• Debt to GDP to be brought down to 60% of GDP in next 2 years
• 10,000 MW electricity to be added by March 2018
• Unemployment reduced to 5.9%;
• Poverty down by 29.5% in 2014 from 64.2% in 2001
• BISP program expanded from Rs 40 bln in 2012-13 to Rs 102 bln in 2014-15; increase to Rs 115 bln in 2016-17
• Number of BISP beneficiary families to increase to 5.6 mln
• Budget for Bait-ul-Mal doubled from Rs 2 bln to Rs 4 bln
• Rs 61 bln allocated for 969 MW Neelum-Jhelum Hydro Power
Project
• Rs 16.5 bln allocated for completion of 1410 MW Tarbela-IV
• Rs 60 bln allocated for two LNG power plants at Baloki and Haveli
Bahadurshah to produce 2400 MW
• Rs 188 bln, an increase of 18%, allocated for construction of roads,
bridges, highways
• Rs 34 bln allocated for Lahore-Abdul Hakeem Section (230 km)
• Rs 19 bln for Multan-Sukkur Section (387 km)
• Rs 2.5 bln for Sukkur-Hyderabad Section (296 km)
• Rs 16.5 bln for Thakot-Havelian Section (118 km)
• Rs 22 bln for Burhan-Halka on M-1
• Rs 14 bln for procurement and manufacture of new rail locomotive engines; 800 coaches, 2000 wagons to be repaired
• Total Rs 79 bln for higher education including Rs 21.5 bln
allocated 122 HEC projects; Rs 58 bln for HEC; showing 11% increase
• In health sector Rs 22.4 bln allocated for health programs including PM National Health Insurance Programme
• Rs 100 bln allocated for housing, rehabilitation and return of temporarily displaced persons
• EXIM Bank to be established
• Rs 6 bln allocated to operationalise trade policy
• Pending Sales tax refunds till April 30, whose RPOs approved, will be paid by Aug 31, 2016
• Textiles, leather, sports goods, surgical goods and carpets to be made part of zero-rated tax regime from July 1, 2016

• Tax and duty concessions of Rs 15 bln for agriculture sector will continue for 2016-17
• Urea price further decreased from Rs 1800 per bag to Rs 1400 and incur subsidy of Rs 36 bln
• Price of DAP to be decreased to Rs 2500 per bag from July 1,
2016 incurring subsidy of Rs 10 bln
• Agriculture credit to be raised to Rs 700 bln for small farmers
• Rs one bln to be allocated for Credit Guarantee Scheme for small farmers
• Concessional Electricity Tariff to be cut to Rs 5.35 per unit from Rs 8.85 on off-peak for agriculture tube wells
• Rate of duty on import of machinery for dairy livestock poultry sector reduced to 2% from 5%
• Customs duty on incubators, breeders, machinery for animal feed reduced from 5% to 2%
• Customs duty on import of fish feed pellet, water aerators reduced from 5% to 2%
• Fish feed subject to 10% duty; shrimp feed duty 20% to be exempted
• Duty of 10% on live baby fish to be removed
• Sales tax of 7% on pesticides to be abolished
• Custom duty on LED light manufacture reduced from 20% to 5%
• Relief on import of solar panels to be extended to June 2017
• Sales tax on import of dumper truck for Thar Coal
• Rs 20 bln allocated for various ongoing PM Special Schemes