'Budget proposals commendable'

Business Chamber of Commerce sources said that Budget 2014 has several commendable proposals that would enable the economy to proceed on the path of development.

"There are new revenue proposals on which we await further clarification before we comment on them. From a macro economic perspective and as a developing economy what the country has achieved in terms of GDP growth of 6.4% in 2012 is noteworthy," a Chamber spokesman said.

During the past 10 months of this year it has reached a percentage growth of over 7% and is steaming towards 8% in the medium term. Growth will reach this figure between 2014 and 2016 according to Budgetary projections.

This is an unusually high growth level considering global economic conditions which though improving have not recovered completely.

"The growth we achieved last year was in the face of rising oil prices and uncertain weather conditions. As a Chamber with a preponderance of exporters, we are relieved that there has been recent growth in exports.

"Such exports were affected by adverse conditions in the international markets," he said.

The budget has outlined proposals for export diversification and to explore access to three major Asian economies, China, Japan and India.

An attempt will be made to promote exports to Saudi Arabia, Australia, South Africa and Brazil.

"We are glad that this is to be undertaken and to an extent decreases our continued dependence on traditional export markets.

"The key proposal on intellectual property and purchase of such property rights and the attendant expenditure being subject to tax deductions should be pursued with vigour," the spokesman said.

"We support the idea of simplification of governance so as to facilitate transactions undertaken by the people. The government has also proposed a range of financial incentives to small businesses.

We are pleased about the exemption of all levies imposed by local authorities on traders whose turnover is less than Rs. 50,000," he said.

"We commend the proposed fast track development plan for youth in terms of skills education," the spokesman said.