ISLAMABAD-The government has prepared the budget on harsh conditionalities of the International Monetary Fund (IMF) while slashing the subsidies and ignoring the local context of country regarding poor socio-economic conditions and worsening law and order situation. Analysing strengths and weaknesses of the federal budget 2009-10, the experts on Thursday at a seminar forecast a tough year ahead for the people and government of Pakistan. Former State Minister for Finance Omar Ayub Khan, Dr Abid Qaiyum Suleri, Executive Director of the Sustainable Development Policy Institute (SDPI) and economic expert Dr Sajjad Akhtar analysed the different aspects of budget at a seminar titled 'Challenging Times and Budget 2009-10 jointly organised by SDPI, Sungi Development Foundation and ActionAid Pakistan. The former state minister predicted that increase in electricity tariff and imposition of carbon surcharge would only fuel inflation while there were no incentives announced for agriculture, industry and services sectors. On increase of external loans during June 2008 to March 2009, he said only IMF debt increased from $1.34 billion to $4.39 billion during this period which accounts 78 per cent of the total debt increase adding that subsequent debt servicing will put a further strain on our budget. Replying to a question, Omar Ayub Khan said the agriculture sector and stock exchange have not been included in the tax net and all the taxes that have been imposed by the government are ant-industry. On agricultural income tax should be levied but due to political pressure from within the government no government so far has been able to do so as all the land lords themselves are part of the government. He said dams are to be built but in this uncertain security situation allocations for the construction of Bhasha dam and sending the foreign engineers into that area is dangerous and questionable. Dr Abid Suleri said that a quick analysis of the federal budget reveals that the fiscal year ahead would be tough both for the people as well as for the government of Pakistan. He said that the people would see increase in their economic sufferings, whereas the government, due to various external and internal constraints was bound to take measures that would reduce its popularity. He said that the budgeted revenue collection target of Rs1.37 trillion for next year seemed a bit ambitious as hike in global fuel prices, deteriorating industrial growth, declining foreign direct investment, energy crisis, full scale war in NWFP, quasi war in Balochistan, and shadows of terrorism spreading all over the country would create serious difficulties.