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GDB Oppening Date Tuesday, June 25, 2013 Closing Date Thursday, June 27, 2013

The Case:

Pakistan is one of the developing countries in Asia. Its economy is suffering from high inflation and unemployment from the last few years. According to budget 2013-2014:

Ø  Prime Minister’s house expenditures has been decreased by up to 45%

Ø  Rs. 3 billion has been earmarked for PM’s laptop scheme

Ø  During a one year training program, youth below the age of 25 and holds a masters degree will receive a stipend of Rs.10,000 per month

Ø  Rs.340 billion has been allocated for development projects

Ø  Rs. 8 billion for social welfare

Ø  Salaries and pensions have been raised by 10%

Ø  Minimum pension has been raised from Rs.3000 to Rs.5000 (approximately 67% increment)

Ø  General Sales Tax (GST) has been increased from 16% to 17%




Keeping in view the budget estimates, discuss whether this budget will be helpful in solving the problems of unemployment and inflation, or not?

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Replies to This Discussion

Please Discuss here about this GDB.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.

Salient points of Pakistan Budget 2013-2014 »
  • The average rate of inflation stood at 13 percent in last five years.
  • The burden of national debt witnessed a whopping increase of 250 percent to reach Rs14284 billion.
  • Dollar rose to Rs100 from 60.
  • The average rate of inflation remained 13 percent in past five years
  • Pakistan’s circular debt increased to 250 percent in past five years
  • Growth rate remained 1 pc
  • Dollar valued soared to Rs100 from Rs60
  • Pension increased to 10 percent. The minimum pension will be Rs5000 from Rs3000
  • Rs75 billion allocated from Income Support Programme
  • Proposal for 75 bn allocation for Income Support Program
  • Growth rate stood at 1 percent
  • Plan to give 5 Rs 5 lac Qarze Hasna.
  • Prime Minister House expenditures being brought down by 45 percent.
  • Tax exemption of luxury cars to be abolished.
  • Pakistan’s economy suffered a loss of 2 percent each year due to energy crisis.
  • Sale tax being increased from 16 pc to 17.
  • Circular debt amounting to more than Rs500 billion will be eliminated in 60 days.
  • Ban on purchase of new vehicles for Prime Minister office.
  • Prime Minister Laptop scheme to be initiated
  • Five percent additional tax imposed on non-registered power consumers.
  • Exemption of 25 percent on 1800 cc to 2500cc vehicles.
  • Customs duty on water filtration equipment to be decreased.
  • Pension being increased by 10 percent.
  • People works program renamed as Tamir-e-Watan Pakistan program.
  • Ministers discretionary funds abolished.
  • Economy grew by around 3.
  • Economy was on auto pilot.
  • 1481 billion tariff subsidy paid.
  • 1200 cc hybrid cars exempted form duty tax.
  • Non registered power consumers 5 % sales tax.
  • 1800-2500 cc cars 25 % concession.
  • 1200-1800 cc cars 50% duty reduction.
  • 3G license auction soon.
  • SBP borrowing to de reduced.
  • Targeted inflation rate for FY 2013-14 is 9.5.
  • Pension up by 10% from 3000-5000
  • GDP target for FY 2013-14 is 4.8 percent.
  • Tax revenue target: 2.475 billion.
  • Non-tax income: 800 billion
  • Power subsidy: 185 billion.
  • Small business loans up to Rs200,0000 with 8% markup.
  • Investment ratio to be increased by 20 percent.
  • Income Support Program: 75 billion.
  • Qaraz-e-Hasna (Soft loan): Rs500,000.
  • Fiscal deficit targeted at 8 percent of GDP.
  • The entire subsidy policy to be reviewed.
  • Rs340 billion earmarked for development projects.

PPP leader Raza Rabbani says people are being burdened with taxes to an unbearable level.


ISLAMABAD (Dunya News) - Parliamentary Leader of Pakistan Peoples Party in the Senate Raza Rabbani urged government to bring big fish into the tax net.


He said the federal budget for the next fiscal year after passage from Parliament will increase inflation and unemployment in the country.


Sharing recommendations of the Parliamentary Group of the party with media on Monday‚ he said the budget of each Ministry should be placed before the respective Standing Committees of Parliament‚ at least six weeks before the Budget session.

Rabbani said that provincial rights are being violated by amending Sales Tax Act.


Raza Rabbani proposed that all those clauses presented in the Finance Bill‚ 2013 to reward and reform tax officials should be dropped.


He said the budge was in contradiction of the spirit of the federation. People are being burdened with taxes to an unbearable level, he pointed out.


“We strongly condemn the government’s plan to privatize national institutions. We are also not in favour of approaching the International Monetary Fund (IMF),” he said.


Rabbani opined that the international lenders attach strings whenever approached.


“It will be up to the party to decide whether it wants to fight the violations of the 18th Amendment in the house or takes the matter to the Supreme Court.”

As per my understandings

-- Due to decrease in parliament exp it will help to decrease inflation & saved money will be invested to reduce unemployment.

-- Laptop schemes are good for broad exposure it will reduce unemployment.

plz discuss your main points only..

Hassan Ali hmm thanks for sharing 

Thank YOu ,,... 

But we need to discuss some more points...

infect all

If we discuss the points one by one, it will be more helpful ..

 As per my opinion in first point if prime ministers house expenses will decrease they can spend that money in development projects which in return can somehow decrease the rate of unemployment. 

we must read the speeches made on budget and the programs of different talk shows this will help u


No doubt if the federal government will reduce its expenses like prim minister house expenses then it could be use to some other projects and unemployment problem can be solved much than before.

And if there is demand to pull inflation than the government should charge higher amount of taxes and also felicitate more with the help of subsidies to firms by which they could meet up the problems of excessive demand and cost problem. this will surely help to solve the inflation problem in Pakistan. 

look every analyst has its own view, buut majority of economist in the world and in pakistan both are agree that it is Good budget and it is indication that government showing non reluctant policy on foreign states and that is why the only way of revenue is tax and govt indicate that we will come up with tax policy according to new monetarist policy it is the forst step to words the good way and will benefit in longterm that is why it is although Good policy and keeping the interest rate low automaticaly increase the investment so may business cycle run and unemployment ratio will decrease, as in this budget intererst rate is decreased. So it is Good budget according to several anaylst beacuse you do not have any window more further so keep this policy would be good.

Nida Ali, One like from my side!!!


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