ISLAMABAD: Announcement of federal budget for Fiscal Year (FY) 2016-17 has been disturbed, due to the ongoing tussle between the government and opposition over Panama leaks probe.
According to proposed schedule of Finance Ministry, the budget was to be presented in the Parliament on May 27, but Federal Finance Minister Ishaq Dar has said that it would be tabled on June 3, a private TV channel reported.
National Economic Council (NEC) meeting which was scheduled in the first week of May was also cancelled due to the current political situation in the country. Meeting of Annual Plan Coordination Committee to compile recommendations about development projects in Fiscal Year 2016-17 is pending as well.
On the other hand, authorities are working to better incentives for foreign investors in the upcoming budget. Statistics of the last six years show that direct foreign investment was quite dismal in the country however, USD 3.522 billion investment is expected in FY 2015-16.
The massive foreign investment for the upcoming financial year is mainly through China-Pakistan Economic Corridor (CPEC). Different power and infrastructure projects will add to the total foreign investment in Pakistan.
CPEC is a historic USD 46 billion investment by China in Pakistan. A network of highways is being laid in different parts of the country to boost trade with Asian countries.
However, neighbouring India is trying to hinder the project ever since a formal announcement was made. In March, an Indian spy linked with Research and Analysis Wing (RAW) was arrested in Balochistan who confessed that his task was to destabilize the economic corridor.
Kulbhushan Jadhav, a serving naval officer had confessed to links with terrorists and target killers in Karachi in a video statement that was made public.
Meanwhile, according to sources, the government is expected to announce withdrawal of subsidy and exemption in taxes in order to beef up tax collection. However, an increase of about 10% is expected in the salary of the civil servant.
