2011-12

Budget

Proposals

By

MQM

 1^st set of proposals _________

investment industrialization and employment generation.

1-     Resolve and Address the Energy Crisis.

2-     Review the Monetary Policy and Create environment to Reduce the Markup Rates.

3-     Take measures to Reduce the Cost of Production. e.g. Control Inflation and reduce the rates of Gas and Electricity and Prices of Petrol.

4-     Take measures for Drastic Improvement in Law & Order and Security situation in Pakistan. Improvement in Karachi’s Law & Order is also sine quo non for Pakistan’s stability.

5-     Establishment of DFIDS in Pakistan to support and Finance Projects especially Mega Projects in Pakistan.

6-     Consistency in Government Economic Policies.

7-     Industrial Machinery imported or locally manufactured should be exempted from all Taxes and Duties.   

8-     One Window Operation for Investments and Easy & Secured Investment Opportunities for the Overseas Pakistanis.

2^nd SET OF PROPOSALS_______

OPTIMIZATION OF AVAILABLE RESOURCES.

The Budget 2011-12 has to be a Pro People  & Economy Friendly Budget_______

It is high time that a common man on street and a Salaried Class Pakistani gets some Relief this time. If the Finance Manager (Government) removes the Injustices and Discrimination in the system of Taxation, there is a strong possibility to optimize the available Resources.

There is a Potential of Additional Mobilization of Rs.800 – 1200 Bn, through Good Governance, Efficient Tax Collection, Plugging Leakages, Curbing Corruption and Broadening of DIRECTBASE.

MQM thus submits some steps from its CHARTER OF ECONOMY for being considered for the Budget 2011-12.

1.         Every Taxable Income Must be taxed. For a sustainable Economic Development, the need of the hour is to broaden the base of Direct Taxes. And Taxable income from all sectors of Economy must be Taxed_________ This measure can yield at least Rs. 200 bn of additional resources.

2.         Plugging Leakages & Corruption in Public Sector + Reforms in BR.

             Curbing Corruption in Public Sector and preventing leakages in FBR can accrue additional Resources to the tune of Rs. 600-750 Bn.

3.         Austerity Measures, Reduction in Non Development Expenditure and Elimination of VIP and VVIP Cultures.        Rs. 50 Bn can be saved if appropriate measures of austerity are taken.

4.         PSEs Reforms

            Induction of Professional People as Members in the Policy Boards and Management of Pak Steel , PIA, PRs etc and other reform treatment in such PSEs can help  save Rs. 200-300 bn of National Exchequer. e.g Public Private Partnership Models.

5.         Prevent the Misuse of Afghan Transit Trade (ATT) and Curb Smuggling and under invoicing. This effort can enable our national kitty earn an additional Rs. 100-200 bn. Moreover this will help our local Industry to grow also. Use of Railway Mode of Transportation in Regional Trade will help not only boost Regional Trade but will also elevate Pakistan Railway from the straits in which it is in.

6.         Appointment of an Independent Commission to recover politically motivated cases of LOAN WAIVERS.

7.         Support Price Mechanism for the Purchase of Agricultural commodities and that too also at a very exorbitantly high price be withdrawn and instead Free Market Economy Principle should apply. This factor alone is responsible for CROWDING OUT of investment in Private Sector.

 3^rd SET OF PROPOSALS _______

 SOCIO ECONOMIC Reform / DEVELOPMENT AGENDA.

Only that development and progress is sustainable that which is knowledge based and People Participatory _______ so to Revive Pakistan’s Economy and take it to new strides following steps are very essential for the consideration of the concerned for the Budget 2011-12.

1.      a)   Land Reforms and Distribution of Government land amongst Landless      Peasants.

b)  Agricultural Reforms to provide incentives to the small farmers and rural women.

c) Promotion of Cooperative farming

2.      a)   Promotion of Organized Micro Finance effort.

b)  Promotion of Venture Financing.

3.      a)   Promotion of Small and Medium Enterprises (SMEs)

b)     Patronize Domestic & Agro based Industry.

4.      Encouraging Low Cost Housing Schemes e.g. Public Private Partnership Models and Investment from Overseas Pakistanis.

5.      Promotion of Value Addition & Labour Intensive Industry in Pakistan

6.      Promotion of Models based on Public Private Partnership (PPP)

4^th set of proposals _________

Direct Incentives for a Common Man.

1-     (a) Minimum Salary of a Pakistani citizen in any employment should be atleast Rs. 10,000/-.

(b) Government Employees’ Salary should also be raised to the extent of Rate of Inflation.

2-     Create Social Safety nets. e.g. National Security Schemes to cover Health, Education, Wage differential between actually paid and minimum wages fixed, involuntary unemployment and old age benefits.  This is the Welfare State Concept of Quid-e-Azam Mohammad Ali Jinnah.

3-     Budgetary allocation for Education and Health to be atleat 5,5 % of GDP. Without bigger Investment in HUMAN resource Development, we can not build a knowledge based Economy.

4-     Rationalization of Patrol, Gas and Electricity Prices on the basis of the status of the consumer.

5-     Social Accountability 8000 Model be adopted by Corporate Sector to ensure basic needs of life to employees working in such organizations. 

6-     Measures to increase the Pension amount for the Pensioners.

7-     Incentives for Overseas Pakistanis for Smooth, Quick and Easy Transfers of Foreign Remittances back home.

5^th set of proposals __________

Important Mega Projects for different Cities of Pakistan.

Ø      Government of Sindh and Federal Government to accord approval to the increase in existing Water Supply from 1200 Cusec (600 MGD) to 2400 Cusec (1200 MGD) to alleviate and ease Water shortage for Karachi and also meet future needs of the city.

Ø      The Federal Government at the earliest funds for K-4 Project In the 2011-12 Budget for additional supply of 100-150 MGD.

Ø      Federal Government to allocate funds in 2011-12 Budget for Mass Transit Program (Corridor-I & II) on soft-loan or BOT basis and commence work at the earliest. e.g for Karachi and Lahore.

Ø      Simultaneously the Karachi Circular Railway (KCR) be upgraded and revival be done in association with Japan/Jaica and other donor Agencies. The allocation be made in the Budget for 2011-12.

Ø      Allocation for Water & Sewerage Infra Structure Development Project for Scheme 33, Karachi.

Ø      Allocation for Water & Sewerage Infra Structure Development Project for Orangi Town, Karachi. 

Ø       Budgetary allocation for a project for Improvement of Coastal Environment.

Ø      Budgetary allocation for Desalination / Recycling Plants for Karachi, Faisalabad, Quetta etc. 

Ø      Block allocation for the City and District Governments of atleast 10 (Primary & Secondary) cities in Sindh, 15 (Primary & Secondary) cities in Punjab, 07 (Primary & Secondary) cities in Khyber Pukhtoon Khawa and 05 (Primary & Secondary) cities in Balochistan.

Ø      Block allocation for Special Development of the backward areas of Southern Punjab.

Ø      Block allocation for various projects (including Small Dams, Mineral Exploration, Flood Protection etc) for Azad Kashmir and Gilgit Baltistan Northern Areas. The commitment for the Rehabilitation of Ataabad Lake Victims in Gilgit Baltistan should be fulfilled on priority basis.

Ø      The Government should allocate proper funds for the Rehabilitation of the affectees of Diamir Bhasha Dam and that the disbursement of such funds should be Impartial, Just and Equitable.