Budget neglects ports, shipping and logistics: analyst
He said in the recent Federal Budget, Rs17.6 trillion has been planned, the tax revenue has been projected as Rs14307 billion, the direct taxes are expected as Rs6470 billion, the sales tax Rs4943 billion, customs duty Rs1741 billion, federal excise duty Rs1153 billion, Rs1311 billion petroleum levy and Rs2584 billion as non tax revenue.
The expenditures included as debt servicing / Interest Rs8685 billion, defence Rs2414 billion and public sector development Rs1065 billion.
However, custom duty exemption and reductions has been discussed on import of shipping containers, cranes, port handling equipment, cold storage and warehouse machinery. This is highly appreciable.
To my understanding discussing, encouraging and incentivizing modernization and developments of general ports, fishing harbours and mini sea ports are necessary for the fast growth of economy.
Giving tax relief will help the submission of provisions for development of maritime sector, including the progress for better dredging, berths, storage spaces and port infrastructure.
Further this will also attract foreign direct Investment, local Investment and public private partnership. Most importantly we cannot ignore the required efforts for the development of institutional capacity at ports, shipping, logistics, etc.
This requires proper frame work and target achieving potentials to serve the existing and expected clientele including land locked countries. The purpose built warehousing , cool chains , silos and processing units, if categorized as Industry needs relief for their expansion from 'Additional Taxes'.
The Government need to support shipping / logistic sector including public and multimodal transport and provide ways to reduce the growing freight charges. These growing freight charges have become, by and large a real impediment in the growth of business, production and exports.
Copyright Business Recorder, 2025
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