DATE=6/12/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-233809
TITLE=PAK BUDGET (L)
BYLINE=SARAH HORNER
DATELINE=ISLAMABAD
CONTENT=
VOICED AT: 

INTRO: THE PAKISTAN GOVERNMENT IN ITS LATEST BUDGET (ANNOUNCED 
FRIDAY) HAS ANNOUNCED MEASURES TO COMBAT INTERNATIONAL SANCTIONS 
IMPOSED AGAINST PAKISTAN FOLLOWING ITS RECENT NUCLEAR TESTS. 
SARAH HORNER HAS THE DETAILS.

TEXT: PAKISTAN FINANCE MINISTER SARTAJ AZIZ ANNOUNCED THE 
COUNTRY'S LATEST BUDGET TO A ROWDY SESSION OF PARLIAMENT.

OPPOSITION MEMBERS -- PROTESTING PLANS TO BUILD A CONTROVERSIAL 
DAM ANNOUNCED THURSDAY -- SHOUTED AND THREW COPIES OF THE BUDGET 
ON THE FLOOR BEFORE WALKING OUT.  THEY LEFT THE MINISTER TO 
DELIVER HIS SPEECH TO ONLY HIS FELLOW PAKISTAN MUSLIM LEAGUE 
PARTY MEMBERS.

FOREIGN ANALYSTS WERE MOST INTERESTED IN DEFENSE SPENDING.  THIS 
WAS INCREASED BY EIGHT-POINT-FOUR PERCENT TO 145 BILLION RUPEES 
-- IN LINE WITH INFLATION, THUS  NO  INCREASE IN REAL TERMS.

THERE WERE EXPECTATIONS OF A BIG INCREASE IN DEFENSE SPENDING 
AFTER NUCLEAR TESTS IN RECENT WEEKS BY PAKISTAN AND NEIGHBORING 
INDIA PROMPTED FEARS OF AN ARMS RACE.

MINISTER AZIZ SAYS PAKISTAN IS PREPARED TO FACE THE CHALLENGES 
POSED BY INTERNATIONAL SANCTIONS IMPOSED ON PAKISTAN AFTER THE 
NUCLEAR TESTS AND HE SAYS SANCTIONS ARE A BLESSING IN DISGUISE 
FOR THE  COUNTRY.  HE SAYS THEY WILL STRENGTHEN, RATHER THAN 
WEAKEN, THE ECONOMY. 

THE MINISTER SAYS THE BUDGET IS INTENDED TO SHOW PAKISTANIS ARE 
READY TO MAKE ANY SACRIFICE TO SAFEGUARD NATIONAL AND SECURITY 
INTERESTS.

MR AZIZ CALLS HIS BUDGET ONE OF SELF-RELIANCE -- IN A COUNTRY 
WHERE LESS THAN ONE PERCENT OF THE POPULATION PAYS INCOME TAX. HE
ANNOUNCED THE INTRODUCTION OF A GENERAL SALES TAX AND MEASURES TO
COMBAT THE RAMPANT SMUGGLING THAT COSTS PAKISTAN BILLIONS OF 
DOLLARS EVERY YEAR.  THE MEASURES INCLUDE THE REDUCTION OF IMPORT
DUTIES ON ITEMS SUCH AS COFFEE, COSMETICS AND DOMESTIC 
APPLIANCES.

THE MINISTER SAYS A KEY GOAL OF HIS BUDGET IS TO MAKE PAKISTAN 
SELF-SUFFICIENT IN FOOD.  HE SAYS THE GOVERNMENT AIMS TO INCREASE
WHEAT PRODUCTION IN THE COMING YEAR TO 22.5 MILLION TONS.  THIS 
YEAR PAKISTAN PRODUCED 19 MILLION TONS.

IN AN EFFORT TO BOOST PRODUCTION, CREDITS AND LOANS TO FARMERS 
ARE TO BE INCREASED AND SALES TAXES ON FARMING EQUIPMENT ARE TO 
BE ABOLISHED.

MR. AZIZ SAYS THE GOVERNMENT WILL ALSO SPEED UP BANK REFORMS AND 
RECOVERY OF LOANS FROM DEFAULTERS. BILLIONS OF DOLLARS OF LOAN 
DEFAULTS HAVE SEVERELY HURT PAKISTAN'S ECONOMY.

PAKISTAN PRIME MINISTER NAWAZ SHARIF SAID AFTER THE SPEECH THAT 
HIS GOVERNMENT HAD PRESENTED A BUDGET THAT IS FRIENDLY TO THE 
POOR.

WHILE THE BUDGET WAS BEING ANNOUNCED, THE GROUP OF EIGHT 
INDUSTRIAL NATIONS MEETING IN LONDON AGREED TO POSTPONE ALL 
NON-HUMANITARIAN LOANS TO INDIA AND PAKISTAN.  (SIGNED)

NEB/SLH/GE

12-Jun-98 1:26 PM EDT (1726 UTC)
NNNN

Source: Voice of America
.