Prime Minister Shahid Khaqan Abbasi on Tuesday said that sustained income and revenue streams will benefit the country instead of obtaining loans, Radio Pakistan reported.
The premier said this while chairing a meeting of the federal cabinet in which the Finance Division presented the Budget Strategy Paper for financial years 2018-19 to 2020-21 and briefed about the macroeconomic indicators of current fiscal year, 2017-18.
The finance secretary briefed the cabinet that the budget strategy for FY 2018-19 to 2020-21 is based on four broad targets, which are sustained growth momentum, ensuring fiscal consolidation, managing balance of payments and ensuring debt sustainability.
It was informed that the recently announced Economic Reforms Package, including lowering tax rates, widening tax base, real estate reforms, local amnesty and tightening of foreign exchange regime, will help increase revenues and reduce the deficit.
The Budget Strategy Paper was discussed at length by the cabinet and several cabinet members provided useful suggestions for incorporation in the upcoming budget proposals.
At the end of the meeting, the federal cabinet approved Budget Strategy Paper for Fiscal Year 2018-19 to 2020-21.
ECNEC clears Diamer Bhasha dam
The Executive Committee of the National Economic Council (ECNEC), chaired by PM Abbasi, approved various energy, poverty alleviation, railways and access to justice projects with specific costs.
The Diamer Basha Dam Project (only dam component) was approved at a total rationalised cost of Rs474 billion.
The dam will have a 6.4 million acre-feet (MAF) storage capacity and installed power capacity of 4,500 MW. After completion, the project will increase national water storage capacity of Pakistan from 38 days to 45 days and will enhance life span on downstream reservoirs, including Tarbela Dam.