The finance minister Abdul HAfiz SHeikh announced on Saturday a five-year tax holiday on loan-free equity investments, called for checks and oversight of defence expenditures and identified the rising debt servicing as a major challenges for the country.
There is a crisis-like situation on the one hand where the government has to create a balance between income and expenditures and, on the other, people expect relief and job creation.
“The govt has not been much successful in creating more jobs and achieving higher growth targets,”But an effort had been made in the budget to provide incentives for investment. He said there had been a demand to facilitate investors who wanted to set up new factories and businesses. “Therefore, it has been decided that there will be no tax at all for five years for those who invest their own money without raising loans of any kind.”