Islamabad: Finance Minister (FM) Muhammad Aurangzeb has said increase in their pay has been given to salaried class as per the existing resources and ratio of inflation.

Stern steps will be taken for recovery of taxes next year. If legislation is not complete in this regard then more taxes will have to be levied.

Salary of members of parliament has been increased after 9 years. Had this increase been made every year then no one would have felt it as excessive.

Pakistan economy is heading towards revival gradually. Government has started reforms at large scale to fortify economy and enhance revenue, he remarked.

Tariff reforms were not made since the last three decades. Now they are being enforced on priority basis so that the economy could be raised on durable basis.

Relief was given to people in the budget whatever we could give maximum, he said this while holding post budget press conference here in ministry of planning on Wednesday.

He pointed out custom duty has been reduced to zero in 4000 tariff line and custom duty has been reduced in 2000 tariff line. Raw material includes therein. This will lead to enhance exports.

We have reduced super tax for salaried class.

What tax we were to impose on fertilizer and seed in agriculture sector this year we have not levied. We had held talks with IMF in this regard which remained successful and this tax was not slapped.

He stated inexpensive loans will be provided to small farmers.

This factor had come to open during collection of loans from international institutions that tax laws are not implemented. This will be implemented this year.

We will reach 10.9 tax to GDP next year. Forceful steps will be taken for recovery of tax. If legislation will be required to be enacted in this regard then we will do it and we will stop the existing vacuum in system.

He remarked salaries and tax are linked to inflation. Pension reforms are being discussed. We are striving for development in agriculture sector.

He added increase in salaries and pension should be bench marked. If inflation is receding then there should be increase or decrease in pension and salaries this way.

Government expenses have increased by 2 percent.

What government is giving it is giving by obtaining loan. If we don't cut our expenses then our loans will continue to surge this way.

We have made framework of E-commerce at local level so that those doing business at small level could take part in it.

Those sitting outside the country send their products to Pakistan without paying sales tax which leaves impact on national economy. Tax will now be imposed on the goods coming from abroad to Pakistan.

There will be no such thing with reference to NFC which is done without the consultation of the provinces. Consultation meeting of NFC will take place in August. Nothing will be done without the consultation of provinces.

About 10 privileges have been placed in budget for youths. We will provide proper environment for business instead of jobs.

Tax to GD ratio has increased by 5 percent. Prime Minister himself is seeing the matters of FBR.

He indicated reforms are being brought in taxation system through technology.

During the present year number of individual tax filers has increased two time.

Imports have surged by 12 percent this financial year. 16.5 percent increase has been witnessed in the imports of machinery.

10 billion dollars increase in foreign remittances has been recorded during the last two years.

Foreign exchange reserves are likely to reach 37 to 38 billion dollars by the end of this year, he indicated.

Talking about power sector he said agreements have been signed with banks to abolish circular debt. New boards have been appointed in all DISCOs. Energy reforms are yielding positive results.

He admitted the loss of government institutions has surpassed by Rs one trillion. However 34 institutions have been handed over to privatization commission so that their loss could be curtailed.

Development budget has crossed 4000 billion rupees. Provinces and federation will spend over Rs 3000 billion out of it.

Emphasizing on food security and storage he said Electronic ware houses are being set up in Punjab so that farmer could get better price.

Declaring PASCO corruption hub he announced to end affiliation of government with this institution.

Competition with India is continuing on economic front. India tried to stop IMF program. With the help of friendly countries Pakistan not only acquired EFF program but also we got approved climate financing program.

Special focus will be placed on the project to counter climate change next year.

Our credibility has enhanced before international fiscal institutions. Pakistan is now heading towards a durable development.

Protection was provided to agriculture sector under the directive of prime minister and no tax was levied.

About pension reforms he said pension will be linked to inflation.

Responding to a question he said if you are talking about increase in the pay of government employees then ministers salary should too be increased.

To a question he said the salary of members of parliament was increased in 2016 last time. Had the increase been made regularly then so much big increase would not have been made which has been made recently.

We are considering how the government expenses can be curtailed.

I have not seen any thing coming from up to down. Our budget starts from deficit.