Budget: 2012-2013

The Pakistan federal budget of Fiscal year of 2012–2013 was the federal budget of Pakistan for the fiscal year beginning from 1 July 2012 and ending on 30 June 2013

The budget was formally presented on 1 June 2012 by Finance Minister Dr. Abdul Hafeez Sheikh during a National Assembly session. The budget was a milestone in the context that this was the first time in the history of the country that a democratically elected government presented its fifth budget during its tenure.[2] Work on budget and recommendation on spending request was completed by Hafeez Sheikh to the government of the Pakistan Peoples Party with the cabinet being led by Prime Minister Yousaf Raza Gillani.

Salient points of Pakistan Budget 2012-2013

  • Budget session begins under the chair of Dr Fehmida Mirza
  • Finance Minister Hafeez Sheikh delivered budget speech amid opposition protest.
  • The economy the government inherited in 2008 was very unstable, unbalanced and in bad shape. Foreign exchange reserves were down and the value of the rupee was falling swiftly because of which the business fraternity had lost confidence. The oil prices in the international market had reached a historic peak of $145 in July 2008. In September 2008 due to the global economic crisis the developed world was facing depression. The growth rate of developed economies had on average fallen by 2.8%.
  • The opposition members clashed with the treasury benches.
  • In such conditions the present government assumed responsibilities in March 2008. During political change the external shocks of the rising oil and food prices on a large scale, global economic chaos, large scale expenditure on security and policies created a crisis situation.
  • In the last four years despite the challenges like a decline in the global economy especially in the developed countries, economic commotion, devastating floods of 2010, more than usual rainfall in 2011, successive increase in oil prices and the ever changing security situation, the government achieved a lot.
  • The government provided additional resources of 138 billion rupees to the deserving underprivileged in accordance with the Benazir income support program.
  • In four year 119 billion rupees were given collectively to railways.
  • The government is working on several fronts. Recently an energy policy was formulated which will improve supply of energy. The government is rebuilding the electricity distribution companies keeping in mind increase in their profits.
  • In respect to subsidies the government in the last four years has so far:
    • Given a subsidy of more than a 1000 billion to consumers of electricity to give relief to the poor.
    • 104 billion rupees petroleum subsidy.
    • 110 billion rupees were given for subsidies on urea.
    • 137 billion rupees were spent for nutritional aid.
  • To keep the petroleum prices down the present government gave an exemption of 136 billion rupees in reference of petroleum levy
  • The government provided additional resources of 138 billion rupees to the deserving underprivileged in accordance with the Benazir income support program.
  • The estimated economic growth for the current year (2011-12) is 3.7%.
  • Rs70 billion have been earmarked for for BISP.
  • Export Development fund would get Rs10 billion.
  • For the purpose of tax simplification the government
    • Improved the procedure of the tax system.
    • The level of application of income tax was increased from 100,000 to 350,000.
    • Increased the tax base.
    • Empowerment of the tax department.
    • Elimination of the special excise duty.
    • Start of a systimetic elimination of the federal excise duty.
    • Elimination of regulatory duties on 392 items
  • Finance Minister announces withholding tax to be imposed on daily withdrawals above Rs. 50,000.
  • The ratio of tax to GDP in fiscal year 2011 is 9.6% whereas the ratio of FBR is 8.6%.
  • The Finance Minister ended his speech at 06:31 pm.