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Long Run Production and budget

By: Naba Hashmi (Karachi)
The sales budget shows the Quantities of each product that the company plans to sell and the intended selling price.
It provides the predictions of total revenue from which cash receipts from customers will be estimated, it also
supplies the basic data for constructing budget for production costs, and for selling, distribution and administrative
expenses. The sales budget is therefore the foundation of all other budgets, all are ultimately dependent on the
volume of sales.
The sales volume is based on working of marketing employees. If employment is increased for advertisement of the
products, the volume of sales increases ultimately.

Volume of Production
The advancement of economy is based on long running industries. Budget of production should be prepared for
long time. Volume of production must be increased. If rate of employment increases in the industries,
living standard of the people is raised. Economy of the state gets developed.
The production department of a company is vital for long
term benefits of the natural resources.
Long term benefits of natural resources in the light
of Holy Quran.
Indeed, in the creation of the heavens and
the earth and the alternation of the
night and the day are signs for those of
understanding. (Surah al Imran 190).
Who remember Allah while standing
or sitting or [lying] on their sides and give
thought to the creation of the heavens and the
earth, [saying], “Our Lord, You did not create this
aimlessly; exalted are You [above such a thing]; then protect us from the punishment of the Fire. (Surah al Imran 191).

Tax reforms are the need of the hour

Tax is the main source of revenue for the government. The government has actually two types
of taxes, direct and indirect.

Besides having huge potential for business, Pakistan is facing revenue problems. Reasons
Syed Mehdi are that PAKISTAN has actually failed to form an efficient and prudent tax policy. And mist of
(Multan) Pakistan economy is shadow economy (informal economy). Undocumented economy has also
Reg # 20120226 played its role in driving Pakistan towards debt-strapped economy. Fiscal deficits are actually
by-product of informal and tax failing economy.
Now, there is a dire need to do some judicious and
deliberate reforms in tax system. Documentation
of economy, efficient training of staff, restraining
smugly of goods and e-tax system could
lessen up the PAKISTAN’s fiscal deficit.
Pakistan has to build trust among public
that their taxes are utilized for social
welfare and reduce public and tax
authority’s direct interaction.
One cannot undermine the
business potential of Pakistan,
but there is dire need of
bonafide and prudent
directions and will.

ICMA Pakistan’s Students’ e-Magazine 19 Volume 2.1 | February 2020