Pakistan engaged with China for relocation of industries to CPEC SEZs: Finance Minister
FEDERAL MINISTER FOR FINANCE & REVENUE, MR. SHAUKAT TARIN, DELIVERING BUDGET 2021-22 WIND UP SPEECH IN THE NATIONAL ASSEMBLY, ISLAMABAD ON JUNE 25, 2021.
Islamabad: Pakistani Finance Minister Shaukat Tarin has told the National Assembly that Pakistan was engaged with China for relocation of their industries to Special Economic Zones (SEZs) being step up under the China-Pakistan Economic Corridor (CPEC).
The minister said Pakistan was establishing SEZs under the CPEC to promote investment opportunities. “We are engaged with China for relocation of their industries to these zones. The investment from other countries will also be brought in these SEZs,” he said.
Tarin expressed satisfaction over the growth of the Information Technology (IT) sector, saying the aim was to bolster their exports to up to US $ 8 billion in the next two to three years.
Turning to the power sector, the finance minister said there will be no increase in the tariff and this has also been conveyed to the International Monetary Fund. He was confident that the flow of circular debt will start reducing from the next fiscal year. He said that sufficient funds have been earmarked for the construction of dams in the country.
Winding up discussion on the budget for next fiscal year 2021-22 in the National Assembly, the finance minister said, “We are heading towards an inclusive and sustainable growth.”
The Finance Minister said that Prime Minister Imran Khan took bold and difficult decisions to steer the economy in the right direction. “Despite Covid-19 challenge, we achieved a growth of four percent during the current fiscal year due to the interventions made in different sectors, including industries, housing and construction and agriculture,” he added.
Tarin also announced a series of relief measures for different sectors. He said the tax relief earlier given to the auto sector for vehicles up to 850cc is being extended to 1000cc vehicles.
The minister said there will be zero tax on the registered IT platforms while only two percent for the unregistered ones. He said there will be 17 percent tax on the value added products of gold.
He further said the tax collection for the next fiscal year had been fixed at Rs 5,800 billion. “We are bringing changes in the tax system and introducing automation,” he added. He said that 12 withholding taxes have been withdrawn as these are regressive in nature.
The finance minister said US $1.1 billion have been earmarked for the purchase of anti-Covid vaccine. Five billion rupees have been set aside for the development of the e-voting system.
As regards to the industrial sector, he said incentives of Rs 40 billion will be given with an aim to increase the competitiveness of this important sector of the economy.
