• Total outlay of Budget 2009-10 is Rs2.489 trillion
• Rs50 billion allocated for the displaced of operation in Malakand Division
• Inflation rate has declined to 14.4 percent and it will further decline to single digit in the next fiscal year
• Rs1.488 billion has been allocated for courts
• The best way to lower the poverty is to take the inflation down, which was 25 percent last year
• Rs1.488 billion has been allocated for courts
• Tax base will be broadened
• Property gains tax will be expanded
• CVT will be continued
• DGP growth expected to be 3.3 percent for 2009-10
• Salaries of armed forces will be raised from July 1
• Inflation target for 2009-10 will be 9%
• Rs 70 billion for Benazir Income Support Program for 09-10
• Fiscal deficit will be limited to 4.9 percent or Rs722 billion
• Current expenditure will be curtailed by 15.3 percent
• Carbon surcharge will be introduced in FY10
• Withholding tax on domestic vehicles ended
• Rs2.2 billion allocated for environment
• Tax target raised to Rs 2.17 trillion
• Rs23.1 billion for health.
• Duty on wind power plants withdrawn.
• Social protection net being introduced for farmers.
• Agriculture and value addition to be given special attention.
• Use of new technology in agriculture sector to be encouraged.
• Rs18 billion for PSDP which is 25 percent higher than the previous year
• CVT on property to be increased to 4 percent from 2 percent.
• Petroleum development levy to end in FY10.
• Government raises salaries of government of employees by 15 percent.
• Tax Collection Target has been set at Rs 1377.5 billion
• Current Expenditures are estimated at 1699.19 billion
• Allocation for People’s Works Program: Rs 28 billion
• Allocation for Workers’ Welfare Fund: Rs 10.8 billion
• Government and armed forces’ retired employees will receive 15 percent raise in their net pensions from July 1, 2009
• An increase of allowance equivalent to one basic pay, effective from July 1, 2009, has been approved for the military’s personnel deputed in the western part of the country. All the members of the armed forces will get the same from January 1, 2010.
• Rs 262 billion are for federal ministries
• Rs 38 billion are for Azad Jammu and Kashmir, FATA and Northern Areas
• Rs 60 billion are for Corporations
• Rs 60 billion are for Water Sector Development
• Rs 47 billion are for Dams Construction/Raising
• Rs 18 billion for Agriculture
• Rs 23.15 billion have been allocated for Health sector
• Rs 32 billion have been allocated for Education with Rs 22.5 billion for Higher Education
• Development Budget allocated for the Provinces: Rs 200 billion
• National Highway Authority will receive Rs 40.2 billion
• Rs 12.7 billion are for Railways
• Rs 70 billion are allocated for Transport and Communication
• Rs 85 billion have been allocated to overcome energy crisis and would be spent on Electricity, Gas and Water Supply projects.
• Rs 2.96 billion have been allocated for environment protection
• Rs 3.6 billion are for National Internship Program
• Rs 450 million for cultural development
• Rs 583 million for Sports
• Rs 300 m allocated for Postal Ministry in PSDP-2009-10
• Communications Division gets Rs.45971.990 million in PSDP 2009-10, NHA gets Rs 45706.090
• Govt allocates Rs.50.000 mln for NRB
• Rs. 3265.377 mln earmarked for 132 projects of Science & Technological Research Division
• Govt. allocates Rs 16709.980 mln for Food Agriculture Division
• Tax on imports raises to 4% from 2%.
• Rs12 billion allocated for Mangla dam
• Govt to set up export houses.
• Excise duty on cellular down to 19 percent
• Excise duty on CKD reduces by 5 percent
• SIM activation charges have been reduced from Rs500 to Rs250
• The funds for the science and technology being doubled
• Rs10 billion fund allocated for SMEs
• Govt to spend Rs4 billion on Benazir Tractor Scheme for small cultivators in next two years
• Rs47 billion allocated for water resources management under PSDP
• The govt not to increase tax on industry
• 600 filtration plants being set up
• sales tax abolished on wheel chairs
• Wind energy projects to be set up in and around Gharo
• Amount for wedding assistance raised from Rs5000 to Rs70000
• The limit of health insurance will be Rs25000 annually
• The retired govt employees and army personnel to receive new raised pension from July 1
• Rs60 billion allocated for water
• Rs12 billion for Pakistan Railways
• Rs250 levied as custom duty on mobile sets.
• Rs40 billion allocation for export investment fund.
• Rs166 billion for construction of dams
• Small and medium sized dams will be built

Text of Budget Speech (2010-11)

ISLAMABAD, Jun 5: Following is the text of the Pakistan’s fiscal budget 2010-11 speech delivered by Finance Minister Dr. Abdul Hafeez Sheikh.

“Madam Speaker!

1. Let me start by thanking Allah Almighty for granting me the privilege and the responsibility for presenting the Federal Budget, for the fiscal year 2010-11, the third budget of this Government. I also want to start by recognizing the historic role of this House.

This House is democratically elected. It has met high standards of parliamentary discourse and has passed landmark legislation. Above all, this House has restored the 1973 Constitution to its original purity. For this I want to congratulate you Madam Speaker, the Leader of the House, Prime Minister Yusuf Raza Gilani, the Leader of the Opposition, Chaudhry Nisar Ali Khan and all the members. It is only appropriate that the Constitution has been restored by a coalition led by the party of Shaheed Zulfikar Ali Bhutto, the architect of the 1973 Constitution who brought the leadership of the entire federation to come together in one of the shining moments of our history. I may also congratulate President Asif Ali Zardari for his leadership in making the passage of the 18th amendment possible. Let us also celebrate that Pakistan has again found collective solutions on key outstanding issues like 7th NFC Award, the granting of provincial rights and the abolition of the concurrent list.

Madam Speaker!

It is my intention to introduce in this budget a fresh approach to economic management that will complement these momentous political reforms with responsible economic and fiscal management.

The people clearly want a government that is capable of taking hard decisions and leading them to a bright future.

Madam Speaker!

3. These are extraordinary times. Over the last two years the world has gone through the worst recession since the 2nd World War. The global economy has contracted following the sub-prime crises in the USA. We have seen iconic names crash to the ground. AIG and Citi Group lost most of their capitalization; Lehman Brothers and other well known names vanished. This global storm ravaged many countries and continues to do so. No region of the world has been unaffected. Unemployment in the USA touched a 25 years high above 10 per cent. Currently, the downturn is severely affecting some European countries like Greece, Spain and Portugal which were thought to be more stable and are part of the EU. Greece alone has been recently bailed out by the IMF and the EU, with one of the largest rescue packages ever.

4. Pakistan’s economy also suffered due to the global down turn, the security situation in the neighborhood, and policy weaknesses. The fragility in our fiscal and balance of payments situation was exposed. The economy recorded an inflation rate of 25 per cent – the highest in the last three decades. Economic growth fell to 1.2 percent – the lowest in three decades. Pressures mounted on reserves. The exchange rate had to depreciate.

Madam Speaker!

5. In the face of this unprecedented economic crisis, your government had to take difficult, even unpopular decisions. These decisions included: (i) adjusting the price of those items, whose international prices had risen; (ii) curtailment of expenditures;

(iii) and adoption of a tight monetary policy. The government also had to enter into a programme with the IMF to secure balance of payments support and prevent a default.

6. Throughout the adjustment process, the weak segments of society and the poor were not forgotten. To name one example: The Benazir Income Support Programme was introduced. This program alone provides Rs.1,000 a month to support 3.5 million households.

Madam Speaker!

7. 1 am happy to report that we are seeing the beginning of an economic recovery. Inflation has moderated considerably although we still need to bring it down further. GDP growth has begun to turn upward reaching 4.1 percent in the outgoing year. Foreign Exchange Reserves have surpassed US$16 billion. Remittances are up sharply to a record level of US$ 8.5 billion. The premium on Pakistani debt has decreased substantially while our credit rating has improved. I am reminded of a famous quote of Shaheed Mohtarma Benazir Bhutto who once remarked: “…the success of a nation, as we head towards a new century, shall be based upon its level of exports, hard currency reserves, its per capita GNP, and creative genius of its citizens”.

Madam Speaker!

8. We seem to be heading towards this thought process of Shaheed Mohtarma. We have been successful in achieving a measure of macroeconomic stabilization, checking inflation, restoration of a growth momentum, effectively managing our international commitments, and developing innovative schemes for the disadvantaged. There are, however, areas where we could have done better: domestic resource mobilization, reform of public sector enterprises and in dealing with severe energy shortages. I also remain conscious that job creation is less than adequate.

Madam Speaker!

9. This budget represents several departures from the past. In making this budget, we have placed our faith in the people of Pakistan. Our first point of differentiation is that this budget is based on transparency in the budgetary process. We have had a widespread consultation with many segments of society. These consultations have included Economists, Chambers of Commerce. Consumer groups, Parliamentary Committees, Provincial Governments, media and industry representatives. All information, statistics and data have been openly shared. This budget has become, perhaps the most debated, scrutinized and commented upon budget in Pakistan’s history.

10. Keeping our faith in the public and honesty of approach, the second differentiating feature is that we have kept the budget realistic. This realism in budgeting will allow federal and provincial departments and institutions and other economic agents plan better. In this manner, expectations of participants in the economy are anchored and they have better predictability of their plans.

11. The third differentiating feature of the budget is that it is the first budget after the new NFC Award. The co-operation, partnership, and enhanced role for the provinces is an integral part of this budget, reflecting the will of the people. The additional transfer of financial resources to the provinces means more money for law and order, education, health, drinking water and municipal services. Correspondingly, this means reduced fiscal space for the federal government and an incentive for better management of its diminished resources. It also means that Federal Government spending on social sectors would be limited generally to tertiary levels of education and health with major responsibility for these sectors shifted to the provinces.

12. The fourth differentiating feature of the budget is that we are operating in the framework of international commitments. It is important that we as a sovereign nation keep our commitments and do not erode our international credibility. While maintaining our commitments we must ensure that we become self-reliant and less dependent on foreign loans and assistance.

13. The fifth and most important aspect of our current situation is that of security. We are faced with a situation where our armed forces, jawans, rangers, paramilitary, police and other security forces are sacrificing their lives and engaged in hardship for the safety of our land and citizens. I want to salute them all. I want them to know that this House and the whole nation is behind them. We will do all we can to support our valiant soldiers.

Madam Speaker!

14. Before turning to the objectives of the budget. I would like to place the budget in the perspective of economic management. In today’s world, economic management of a modern internationally open economy is a continuous year-long task. The budget is but one important instrument of economic management. However, the importance of this once a year ritual should not be overly exaggerated. There are important linkages between the budget and other instruments of government policies, including monetary; trade; pricing of agriculture, electricity, gas and petroleum products as well as various economic packages. We need to sharpen our understanding of the role of the government and its interventions and make them more effective. Ultimately results depend on the impact of a combination of these policies. This is what economic management is all about.

Madam Speaker!

15. The ultimate objective of the budget—indeed of all government endeavours—is to improve the welfare of the people. The citizens of Pakistan are at the center of the budget. In order to achieve this goal we have decided to lay primary focus on the following objectives:

16. Our First objective is that we must protect the economic recovery. Stabilizing the economy is a precondition for generating the momentum for growth. The recovery that has been achieved remains fragile. The dangers of slippage are high. The international situation remains fragile. The security concerns have not vanished. The budget deficit is still high. And we continue to remain dependent on external assistance. We will therefore continue to follow – indeed reinforce – fiscal austerity. Waste will be eliminated, expenditures tightly controlled, and the policy mix carefully managed for a strong and stable recovery.

17. The second objective is that we must check inflation. High inflation is devastating, especially for the poor. The best relief package we can offer is to do whatever we can to reduce inflation. Why did inflation rise? This issue is debated all the time. Different points of view are forwarded by experts. But on one point all agree – that “inflation is primarily a monetary phenomenon.” What this means, and is true for Pakistan, is that it is caused by excessive credit expansion. In our case, we have borrowed heavily, our borrowing continues to increase rapidly, including from the State Bank. All of us know such borrowing from the State Bank means a rise in the rate of inflation.

Madam Speaker!

18. The third objective is to achieve a measure of self reliance through better domestic resource mobilization. By this means we will be able reduce our reliance on loans. Indiscriminate borrowing over the last four years has brought us to a debt level of 55 percent of GDP which is approaching the limit under the Fiscal Responsibility and Debt Limitation Act. This borrowing by the government also means higher interest rates and crowding out of the private sector. If we do not control our expenditures, and raise resources, we run the risk of being permanently in debt. High fiscal deficits have also curtailed our development budget.

19. The fourth objective is the reform and enhancement of our social protection regime. Innovative schemes, better targeting of the subsidies for the needy and eliminating waste could allow rapid poverty alleviation.

20. The fifth objective is the reduction of the burden of public sector enterprises without which we will never be able to achieve a sustainable fiscal situation. All efforts to gain control of the economic situation are hostage to a few badly managed public sector enterprises. The productivity and efficiency of every sector of our economy is badly compromised because of the failure of the PSEs.

21. The sixth objective would be that the recovery must not be jobless. Employment generation will be an important test of our policies. Our youth, the largest segment of our population will expect this.

Madam Speaker!

22. The seventh objective would be to make the country fertile for investment. Our nascent recovery can only be sustained through increased investment and results by the private sector. Indeed the role of the government should be primarily that of facilitating investment. We want to be able to show the people of Pakistan that the growth rate achieved in many Asian countries can also be attained in Pakistan. In order to achieve growth, we must make Pakistan attractive for investment. Surveys of competitiveness and cost of doing business suggest that reforms need to be undertaken to improve governance and markets in Pakistan. In order to attract investment we also need to emphasize productivity and efficiency, given our limited resource availability.

Madam Speaker!

23. Let me now elaborate on two areas that have a direct bearing on some of the objectives listed above: energy and food security. Both these areas will be receiving greater attention and will be allocated greater amounts both in the Public Sector Development Program and from external assistance programs such as the Kerry Lugar, World Bank, Asian Development Bank and other bilateral assistance programs.

24. Madam Speaker! Energy shortages have darkened homes, closed down factories and shops, making life difficult and slowing down economic activity. The government is fully conscious of the difficulties faced by the people due to the prevailing energy crisis. The crisis has arisen because of poor policy choices in the past and underdevelopment of domestic energy sources such as hydel, coal, and natural gas. It is compounded by high oil prices and inefficiencies due to public sector management.

25. We have used a consultative approach with some success in dealing with immediate shortages. An Energy Summit was convened with the participation of all Chief Ministers and private sector stakeholders to frame a conservation plan for the electricity sector. As a result of the initiatives agreed during the summit, including the key issue of inter corporate circular debt, the nation witnessed some relief in load shedding. Nearly, 1000 MW was saved which brought some relief to domestic consumers as well as provided some extra energy to the industry.

26. Prime Minister’s Vision of the Power Sector contains a number of measures to increase supply, manage demand through energy conservation and take administrative measures to streamline the transmission and distribution of electricity. In the short-term, efficiency and conservation measures being undertaken are;

· Diversion of natural gas to power plants to improve their efficiency.

· Rehabilitation of generation and transmission infrastructure.

· Free distribution of 30 million energy savers

Madam Speaker!

27. We also propose to take measures to enhance the supply of electricity. In the medium and long-term we plan to create an optimal energy mix to produce energy at affordable prices through hydel, coal and renewable sources.

28. In order to secure private sector investment in the power sector in a transparent manner, an Energy Development Fund is being established in consultation with Asian Development Bank. The proposed fund is likely to be started with seed money of Rs. 20 billion.

29. We have also taken steps to increase the availability of gas and the Iran-Pakistan Pipeline project has finally been signed after 17 years of work. The Government is also committed to import LNG in a transparent manner.

30. I must stress that a deep structural reform effort is required in the energy sector if we are to provide affordable energy to the growing economy. We intend to take this action forward this year. In FY 2010-11, an allocation of Rs.131 billion has been made for hydel, thermal and nuclear energy projects to augment generation and improve transmission.

Madam Speaker!

31. The second area of our focus is food security, with emphasis on the development of agriculture and water resources. In this effort we will emphasize sharp increase in productivity. Agriculture must find more productive solutions based on more efficient markets that provide incentives for improved technology with better water and input utilization. In addition to food availability we seek to ensure that the poor have the means to purchase food, and this is critical in supporting the vulnerable. Without adequate purchasing power the poor may starve in the midst of plenty.

32. Our special programme for food security and productivity enhancement for smaller farmers, covering 13,000 villages starting with 1,012 villages in all provinces, has commenced successfully and is expected to gather momentum.

33. We are committed to managing our water resources better. Several initiatives have been taken. I would like to draw your attention to the raising of Mangla Dam, Gomal Zam Dam and Satpara Dam, which would be completed in FY 2010-11. This will substantially add to the availability of water.

34. Diamir-Basha Dam shall be launched as a mega project in FY 2010-11 which would generate 4500 MW electricity and store 6,450 MAF water. It is gratifying to share that the “resettlement chapter” has been conclusively settled by the Government which would now enable us to fast track this project.

35. As a testimony to our efforts at attaining food security the combined budgeted allocation in Development Budget 2010-11 for water, food and agriculture, livestock and dairy development sectors is in excess of Rs 40 billion.

Madam Speaker!

36. Let me now turn to the reform of PSEs, which is one of our important budgetary objectives. Lack of attention to this reform is subverting all efforts at stabilization and economic revival.

37. Pakistan’s public sector enterprises are inefficient and have very poor management, generating huge losses which are then passed on to the economy and the budget. Power sector enterprises alone cost the exchequer around Rs 180 billion in FY 2009-10 while Railways, PIA, TCP, PASSCO, Steel Mills, NHA and Utility Stores add an additional Rs 65 billion. The large loss of Rs.245 billion destabilizes the entire budgetary process exposing us to breaching our debt ceiling. As a result we are continually seeking external assistance. Not dealing with this issue makes our entire budgetary process and expenditure control unmanageable. It also leaves no room for development expenditure. This is an issue that we wish to address with some urgency in the coming year.

38. Let me commit that restructuring of the eight major Public Sector Enterprises would be the major objective of the Government during FY 2010-11. A restructuring model along with timelines, approved by the Cabinet will be implemented. I Hemorrhaging in the PSEs is causing a drag on our economy. We must make these PSEs financially solvent.

Madam Speaker!

39. I would now provide some details of the social protection program of the government which has linkages with our efforts to protect the poor and the vulnerable while driving growth.

40. At present, our subsidies regime does not distinguish between the rich and the poor, and much of our subsidy spending goes to the well-to-do groups in society that do not need it, We must ensure that only the poor receive public subsidies.

41. The government is deeply sensitive to the needs of the poor.

For the first time we have developed a subsidy program that clearly targets only the poor—the Benazir Income Support Programme (BISP). This will remain the government’s main

program for targeted cash grants to the poorest of the poor. Rs 46 billion would be disbursed in the outgoing year, and we will increase the outlays to Rs 50 billion next year to benefit four million families.

42. The Government will develop innovative schemes for benefitting the poor. In this connection, a health insurance scheme (Waseela-e-Sehet) has been introduced on a pilot basis to provide health insurance cover of Rs 25,000/- per family per year for hospitalization.

43. The government is fully conscious that beneficiaries of BISP need to graduate into income earning individuals. We are designing a comprehensive exit strategy based on international best practices. Several initiatives have already been taken. For example, Waseela-e-Haq provides self employment through setting up of small businesses. Vocational training to one person of a beneficiary family is also been launched.

44. In addition, Pakistan Baitul Maal shall continue to run pro-poor programmes with an allocation of Rs 2 billion.

Madam Speaker!

45. A landmark achievement of the government is giving ownership to workers in state-owned enterprises under Benazir Employees Stock Option Scheme. To empower the workers and give them ownership rights, 12% shares have been given to the workers in State-owned Enterprises. The scheme would help improve productivity and add value to the earnings of the workers.

Madam Speaker!

46. Our Government historically has been conscious of labour rights. Consequently, under the new Labour Policy for FY 2010-II the minimum wage of workers has been raised from Rs 6,000 to Rs 7,000. To ensure its implementation, it has been made mandatory for the employer to make salary payments to the workers through banks. Similarly, dowry grant for daughters of workers has been enhanced to Rs 70,000 and the facility would be available for all the daughters instead of two as was the previous policy. The wage threshold for receiving social security benefits by the workers has been raised to Rs 10,000/-.

47. Our youth is the future of the nation. A key goal of our economic policy is the development of skilled youth engaged in productive employment. For this we have developed the “National Internship Program’” which provides a one year internship to young unemployed postgraduates from all over the country. The interns work on various governmental projects and receive a monthly stipend of Rs. 10,000. Their employability increases after completion of their internship. More than 27,000 interns have benefitted in FY 2009-10. Rs 3.6 billion have been allocated in the budget for the National Internship Programme in FY 2010-11.

Madam Speaker!

48. I now present the Salient Features of the Budget 2010-11. i. The overall size of the budget, including provinces, is projected at Rs. 3259 billion which is 10.7% higher than the current year’s outlay. The total revenues are projected at Rs.2574 billion. This translates into a projected fiscal deficit of Rs.685 billion (4.0% of GDP). Gross federal revenues (tax and non-tax) are projected at Rs.2411 billion. ii. FBR collection is projected at Rs.1667 billion (tax-to-GDP ratio of 9.8%). iii. A sum of Rs.1033 billion will be transferred to the provinces under the 7th NFC Award eon current financial year. iv. The federal budgetary outlay is proposed at Rs.2229 billion (13.1% of GDP). v. As an austerity measure, a cut shall be imposed on all budgeted non-salary current expenditure which shall stand frozen at 2009-10 level.

Madam Speaker!

49. Government remains committed to capital investment necessary to support our growth. The size of the PSDP 2010-11 is Rs.663 billion including Federal Component of Rs.280 billion plus Rs 10 billion for Earthquake Rehabilitation (ERRA).

50. We have kept PSDP 2010-11 at a realistic level. This will facilitate predictable, timely and automatic releases for project implementing agencies.

51. We prioritized available resources for completion of ongoing projects and managed to complete 216 projects in transport, power and the social sectors which include;

a. Mansehra-Naran-Jhalkhad road,

b. Completion of 106 km of Nutal-Sibbi-Dhadar road,

c. 124 km of D.I.Khan-Zam Tower-Mughal Kot,

d. Procurement of 69 DE locos by Pakistan Railways

e. Doubling of track from Lodhran-Khanewal.

f. 72 MW Khan-Khawar Hydropower project is due for commissioning

this month g. Right Bank Outfall Drainage-Ill project is ready for commissioning h. Higher Education Commission completed 86 projects i. Ministry of Health expanded its Lady Health Worker’s programme from 90,000 to 104,000 workers.

52. Early completion of projects will be the key objective of PSDP in 2010-11. Some of the important projects marked for completion are as follows;

a. 300 MW Chashma Nuclear Power Plant

b. 1600-1800 Km of highways

c. 200 Km on Gwadar-Ratodero Road upto Hoshab,

d. Rahim Yar Khan-Bahawalpur Additional Carriageway (166 Km)

e. Gomal Zam dam.

f. Satpara dam

g. Impoundment of water in Mangla Dam which will add 3 MAP of

storage

h. Karachi Bulk Water Supply scheme,

i. Chaghi Water Management and Agricultural Development

j. Polytechnic Institute for Girls in Turbat

Madam Speaker!

53. We are also very serious about expenditure control. Some important steps that arc being taken in this regard are as follows: i. Obtain Cabinet approval for any supplementary grants beyond 10 per cent of the approved budget. ii. Present report on quarterly budget out turn to the National Assembly to ensure parliamentary oversight. iii. Streamline releases against PSDP allocations with upfront authority/release of funds to ensure smooth implementation of development projects. iv. Ensure that proposals for approval of ECC/ Cabinet having fiscal impact would be Budget neutral i.e. additional revenues or savings would be identified at the time of approval.

Madam Speaker!

54. After the passage of 18th amendment, a Transition Committee has been constituted with a mandate to oversee the transition of subjects to the provinces in the erstwhile concurrent list. The said Committee would finalize devolution of such subjects before June 2011. It is expected that the number of federal ministries and divisions would be reduced during this period creating some fiscal space.

Madam Speaker!

55. Allow me to submit the highlights of taxation proposals for the year 2010-11. The tax measures being proposed by the government are fair, just and equitable guided by the principle of ‘ability to pay’ set in context of a war economy.

Customs

56. No customs duty on any product will be increased. For twenty nine categories of products, customs duties will be simplified and reduced.

57. In order to reduce the price of vegetable ghee and oil, reduction in duty on import of Crude Palm Oil is proposed from Rs.9,000/MT to Rs. 8,000/MT. This measure will provide relief to the general public.

58. To provide relief to the sick, concessionary import of 6 additional medical raw materials and medicines is being proposed. The import of X-ray film is also proposed to be exempted from customs duty.

59. In order to address the energy crisis and to encourage use of Renewable Energy Resources, import of four dedicated items in use of these resources is proposed to be allowed at a concessionary rate of 5% import duty. The government has already allowed duty free import of Energy Saving Lamps. In order to encourage local manufacturers of these lamps, five more inputs used in their production arc being proposed to be exempted from customs duty.

60. In order to reduce the manufacturing cost of soap and detergent, duty rates on their raw materials, Coconut Acid Oil and Sodium sulphate are proposed to be reduced from 15% to 10%.

61. In order to encourage value addition and export of rice, its processing machines are proposed to be exempted from customs duty.

62. Road Sweeping Lorries imported by civic bodies are being proposed to be allowed at concessionary rate of 5% duty.

Sales Tax

Madam Speaker!

63. The Government of Pakistan is committed to reform the existing system of General Sales ‘fax. The existing General Sates ‘fax (GST) has degenerated into an unfair tax, with multiple rates (between 16% and 25 %), exemptions and domestic zero rated facilities for vested groups and the privileged. It has also contributed greatly to the opportunities for corruption and rent seeking. The proposed GST reforms, will address both policy and administrative shortcomings of our current GST to remove all the deficiencies listed above.

64. The proposed GST reform:

· Will eliminate multiple tax rates and replace it with a single lower rate of 15%.

· Will not apply on health, education and food items consumed by the poor.

· Will not apply to turnover less than Rs. 7.5 million per year where as the current threshold is Rs 5 million per year.

· Will be automated thus reducing possibilities of corruption and refund delay.

· Will broaden the tax base instead of burdening the existing tax payer thus introducing greater equity into the tax system

65. We expect the proposed GST reform to be in place by October 1, 2010 in consultation with all the provinces and other stakeholders.

66. Meanwhile as an interim measure the GST rates are proposed to be raised by 1 percentage point. Once the reform GST is in place the proposed single lower rate of 15 % will become effective. In addition, an accompanying relief measure of the GST reform will be the abolition of the current 1% Special Excise Duty presently levied on most items of imports and local manufacture.

Federal Excise Duty

67. FED incidence on all categories of cigarettes is proposed to be enhanced. It is also proposed to levy FED at Rs. 1 per filter rod of cigarettes. This levy is proposed to be adjustable by registered manufacturers which will also discourage illicit production of low quality and harmful cigarettes. It will generate additional revenue to cope with the health system costs of effects of smoking.

68. In order to fulfill Government’s obligation under the 7th NFC Award, the rate of FED on natural gas is proposed to be increased to Rs. 10 per MMBTU.

69. To discourage consumption of electricity intensive appliances, levy of FED @ 10% ad valorem on air conditioners and deep freezers is proposed.

Madam Speaker!

Income Tax

70. A number of relief measures in income tax have been proposed in the Finance Bill.

These are: Exemption limit for the salaried taxpayers to be enhanced from Rs 200,000 to Rs.300,000 benefiting approximately 430,000 taxpayers.

· Exemption limit for non – salary income is also proposed to be raised from Rs. 100,000 to Rs.300,000 per year benefiting approximately 350,000 taxpayers.

· Rate of income tax collected along with monthly electricity bill from industrial and commercial consumers is proposed to be reduced from 10% to 5%. This will provide a relief of Rs.4.5 billion to the 66,000 taxpayers.

· Under the Prime Minister’s Fiscal Relief Package to Khyber Pakhtunkhwa, FATA & PATA additional tax relief of about Rs. two Billion have been provided to benefit 300,000 taxpayers of this province.

· Instead of monthly withholding tax statements, now only quarterly withholding statement will be required to be e-filed. A large number of taxpayers will benefit from reduction in this sizeable compliance requirement which will further bring down the cost of doing business in the country.

· Taxation on interest free/concessionary interest loans provided by an employer is proposed to be waived. 71. In order to further facilitate taxpayers and to incentivize the foreign investment a number of steps are also proposed to be taken for improvement in Direct Taxes:

· rate of final withholding tax on non-specified payments to nonresidents is to be reduced from 30% to 20%

· Tax free payments to non-residents on profits on debt will be allowed 10% tax credit for balancing, modernization and replacement to all companies.

· A five per cent tax credit is proposed to be allowed to a company in the tax year of its enlistment.

· 10% withholding tax as final charge on profit on debt (in debt instruments), and also for the investment in government securities (treasury bills and PIBs) to allow hassle free compliance by nonresidents.

72. Number of taxation measures, aimed at rationalizing tax structure are proposed as below:

· It is proposed that income tax. be raised for the Association of Persons (AOPs) at a flat rate of 25% against the existing progressive rate averaging up to 20%. This step will encourage corporatization.

· Tax on short-term Capital Gains on stocks/ shares will be charged at 10% where shares arc held for a period less than six months and at 7.5% where they arc held for more than six months and less than 12 months. However, stocks held for over one year will not be subject to CGT.

· The withholding tax rate payable by commercial importers is proposed to be increased from 4% to 5%.

· A withholding tax on banking transactions including withdrawal through demand draft, pay order, RTCs, CDRs etc. will be charged at 0.3% where such transaction exceeds Rs.25000 in a day.

· Turnover tax on loss making companies and AOPs is proposed to be increased from 0.5% to 1%.

· Withholding tax on domestic air travel is proposed to be charged at 5% on gross value of the ticket

Madam Speaker!

73. I would now like to address the issue of compensation of government servants. The recommendations of the Pay and Pension Commission as adopted by the government would be implemented over the next three years.

The following decisions arc being announced for implementation with effect from 1st July 2010: a. Federal Government employees will be allowed an adhoc monthly allowance equal to 50 per cent of one month’s basic pay. This benefit would not be available to such federal government employees who are already in receipt of a monthly allowance equal to one month’s basic pay.

b. Medical allowance for employees in BS-1 to 15 would be doubled. For employees working in BPS-16 to 22, medical allowance will be allowed at 15% of monthly basic pay.

c. Pensioners who are retired after 2001 will be allowed 15% increase and those who retired prior to 2001 will be allowed 20% increase.

d. Pensioners who retired in BS 1 to 15 will be allowed medical allowance at 25% of pension drawn while those retired in BS 16 to 22 will be allowed medical allowance at 20% of pension drawn.

e. The minimum monthly pension is proposed to be raised from Rs.2000 to Rs.3000.

f. The rate of family pension is proposed to be enhanced from 50% to 75%.

g. A number of other minor allowances for employees in BS-1 to 16 namely, night duty allowance, conveyance allowance for late sitting staff, daily allowance and special pay are proposed to be raised substantially.

Madam Speaker!

74. I may now announce a new intervention which aims at employment generation for rural unskilled workers. Under this scheme the unskilled workers in rural areas would be guaranteed employment for one hundred days in a year. The main feature of this scheme would be carrying out of small local level works with a guaranteed daily wage equal to the minimum wage. A pilot scheme will be launched in 120 union councils in 12 least developed districts, and others that have suffered the most due to the security situation. A training element will also be added to provide skills that would facilitate absorption into the labour market. An amount of Rs 5 billion shall be provided for this programme, which shall be financed from the savings to be made by freezing the non-salary component of the non-development expenditure of the civil government at the level of last year. As many as 200,000 households are expected to benefit from this scheme in FY 2010-11.

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1. Keep Vista, Install XP and create a Double Boot (Recommended)
2. Remove Vista and have a clean Install of XP

Now, both the options have pros and cons, I will not get into them but to be short and simple, Option 1 is recommended keeping in view the various clauses and reasons. But any how, I will be explaining both options one by one.

1.  Creating Double Boot
Well, its not very difficult to do. But it is a bit time consuming and you need to own a copy of Windows XP. You must be ready for any kind of troubleshoot. And if you are not ready for it, then go for the clean install. You must backup your data before continuing with this procedure.

• Step 1 – Shrink Drive and Create Space for Windows XP
  • Now, there are three methods/ways of doing this. All are easy and work fine. For method 2 and 3, you do not need to burn a CD.
  • Method – 1 (GPartEd)
    • Our first step will be to shrink drive C and create space for Windows XP as most of the systems these days come with a single partition only. This will be done with the help of GParted. It can be download from here. Download it, burn it to a CD and boot the system from the disc. (The boot configurations can be changed from System BIOS. The CD/DVD Drive must be the selected as First/Primary Booting Device)
    • When you boot from the GParted LiveCD, depending on your system, you should just need to select the auto-configuration boot option.

• • • During boot, press Enter twice when prompted to select the keymap and language settings.
    • When the main GUI loads, right-click on the main Windows XP NTFS partition (depending on your setup, probably /dev/hda1) and select Resize/Move.

• • • Use the slider to reduce the partition size and free up enough room to install XP (at least 5GB) and click Resize/Move.
    • The changes haven’t actually been made, they’ve just been scheduled to run. To commit the changes and resize the partition, click Apply. GParted will ask to confirm the changes – hit OK and you are done with this Step.
  • Method – 2 (Windows Vista Builtin Feature – DISKPART)
    • Boot the machine from the Vista DVD. Select the appropriate language and then “Install Now”.
    • On the product key page, press SHIFT + F10 to launch a Windows PE 2.0 command window. Then type in DISKPART and press enter to get into the DISKPART utility.

• • • Now type in LIST VOLUME – this gives you a readout of the volumes available on the system. Select the main Windows XP volume by typing in SELECT VOLUME 0 (in most cases it will be Volume 0 – in our lab in was Volume 1).

• • • Now type in SHRINK. Vista will reduce the size the selected Volume by around 50%.
  • Method – 3 (Windows Vista Builtin Feature – Disk Management)
    • Open the Computer Management panel, which you can find under Administrative tools or by right-clicking the Computer item in the start menu and choosing Manage. Find the Disk Management item in the list and select that.

• • • Now you have to shrink your drive volume down by right-clicking on the main hard drive and choosing Shrink Volume.

• • • Now you can choose the size that you want to shrink, which really means you are choosing the size that you want your XP partition to be. Whatever you do, don’t just use the default. I chose roughly 10gb by entering 10000 into the amount.

• • • The next step might be confusing, because we need to change the cd-rom drive that’s invariably taking up D: at the moment, because we want to use D: for the Windows XP partition, but it’s already taken by the cd-rom drive. If you skip this step than XP will install onto the E: drive, which isn’t the end of the world, but it’s not quite as tidy.
    • Right-click on the cd-rom drive in the list and choose Change Drive Letter and Paths from the menu.

• • • Now we’ll change the CD drive to use E: by selecting that in the drop-down.

• • • Now we can create a new partition for XP to live on and make sure that the drive letter is set the way we want. If you do not create a partition now the XP install will do so automatically, but it’s easier and cleaner to do it this way.
    • Right-click on the Unallocated free space area and then select New Simple Volume from the menu.

• • • Follow through the wizard and select whatever options you’d like, making sure to use D: as the drive letter.
    • Now you will need to close out of disk management and reboot your computer. This is because we can’t do the next step until we reboot. (you can try, but it won’t work)
    • So we’ve come back from rebooting… open up Computer from the start menu and then right-click on the D: drive and select properties. Give your partition a meaningful name like “XP”. It would be wise to name the C: drive to “Vista” at this point as well.

• Step 2 – Install Windows XP
  • Now you need to insert your XP cd into the drive and restart it. You may have to configure your BIOS to enable booting from the CD drive. The boot configurations can be changed from System BIOS. The CD/DVD Drive must be the selected as First/Primary Booting Device.
  • Once you come to the screen where you can choose the partition to install on, then choose either the unpartitioned space or the new partition you created. Whatever you do, don’t try and install onto your Vista partition! See how much cleaner it is now that we’ve labeled each partition distinctly?

• • We’ll assume XP is completely installed at this point, and you will have lost your ability to boot into Windows Vista, so we’ll need to use the VistaBootPro utility to restore the Vista boot loader.
  • During the install you’ll be forced to install the .NET 2.0 framework. Open up VistaBootPRO and then click on the System Bootloader tab. Check the “Windows Vista Bootloader” and then “All Drives” radio buttons, and then click on the Install Bootloader button.
  • At this point, the Windows Vista bootloader is installed and you’ll only be able to boot into Vista, but we’ll fix that. Instead of manually doing the work, we’ll just click the Diagnostics menu item and then choose Run Diagnostics from the menu.
  • This will scan your computer and then automatically fill in the XP version.. click on the “Manage OS Entries” tab and then click in the textbox for Rename OS Entry, and name it something useful like “Windows XP”  or “The Windows That Works”
  • Click the Apply Updates button and then reboot your computer… you should see your shiny new boot manager with both operating systems in the list!
  • If you get an error saying “unable to find ntldr” when trying to boot XP, you’ll need to do the following:
    • Find the hidden files ntldr and ntdetect.com in the root of your Vista drive and copy them to the root of your XP drive.
    • If you can’t find the files there, you can find them in the \i386\ folder on your XP install cd
  • This is a critical piece of information: Windows XP will be installed on the D: drive, even in Windows XP… so you’ll need to keep that in mind when tweaking your system.
  • You can share information between the drives, but I wouldn’t recommend messing with the other operating system’s partition too much… it might get angry and bite you. Or screw up your files. What I do recommend is that you store most of your files on a third drive shared between the operating systems… you could call that partition “Data”

.

How to dual boot Vista and XP (with Vista installed first) — the step-by-step guide with screenshots Send to a friend Print Help more people find out about this story Del.icio.us StumbleUpon James Bannan19 December 2007, 4:00 PM Related how-tos: How to dual boot Linux and Windows XP (Linux installed first) — the step-by-step guide with screenshots How to dual boot Vista and XP (with Vista installed first) — the step-by-step guide with screenshots How to dual boot Windows XP and Linux (XP installed first) — the step-by-step guide with screenshots How to dual-boot Vista with Linux (with Linux installed first) — the step-by-step guide with screenshots How to dual-boot Vista with Linux (Vista installed first) — the step-by-step guide with screenshots How to dual-boot Vista with XP (with XP installed first) – step-by-step guide with screenshots How to dual boot Windows Vista and Windows 7 (Vista installed first) How to dual boot Windows XP and Windows 7 (XP installed first) UPDATED | Got a Vista PC and want to install XP so you can dual-boot between them? Here’s how to do it, in an easy, step-by-step format. Page 2 – Create Free Space for Windows XP We assume that before you start this tutorial, you have backed up the drive (partitions and data) that will host the two operating systems. Your first step will be to modify the Windows Vista system partition to make space for XP using GParted The GParted Live CD ISO is available here – burn it to CD and boot the system from the disc. The version we used was 0.3.7-7. When you boot from the GParted LiveCD, depending on your system, you should just need to select the auto-configuration boot option. Option 1 – Using GPartEd During boot, press Enter twice when prompted to select the keymap and language settings. When the main GUI loads, right-click on the main Windows XP NTFS partition (depending on your setup, probably /dev/hda1) and select Resize/Move. Use the slider to reduce the partition size and free up enough room to install XP (at least 5GB) and click Resize/Move. The changes haven’t actually been made, they’ve just been scheduled to run. To commit the changes and resize the partition, click Apply. GParted will ask to confirm the changes – hit OK and away you go. Option 2 – Using DISKPART Boot the machine from the Vista DVD. Select the appropriate language and then “Install Now”. On the product key page, press SHIFT + F10 to launch a Windows PE 2.0 command window. Then type in DISKPART and press enter to get into the DISKPART utility. Now type in LIST VOLUME – this gives you a readout of the volumes available on the system. Select the main Windows XP volume by typing in SELECT VOLUME 0 (in most cases it will be Volume 0 – in our lab in was Volume 1). Now type in SHRINK. Vista will reduce the size the selected Volume by around 50%. Option 3 – Using Disk Management Using the Disk Management GUI is really no different to using DISKPART (it’s the GUI frontend to the DISKPART utility), but using the GUI does mean that you can make the changes within Vista before rebooting to install XP, without needing to use the Vista DVD. Right-click on Computer and select Manage. In Computer Management, expand Storage and select Disk Management. Right-click the primary partition (the one you need to make space on) and select Shrink Volume The default values which Vista provides represent a fairly aggressive shrink – as long as the values will give you enough space to install XP, accept the defaults and select Shrink. Vista will churn away for a moment, and then you’ll see the newly-created free space on the primary disk. Now you can reboot and install XP. Continue to page 3: Now Install Windows XP Page 1 Intro Page 2 Create Free Space for Windows XP Page 3 Now Install Windows XP Page 4 Restore Vista Bootloader and Enable Dualbooting Page 5 Removing Windows XP Page 6 Fixing the Corrupt Bootloader Related stories Windows PE 2.0: a tiny version of Windows for system maintenance How to dual-boot Vista with XP (with XP installed first) – step-by-step guide with screenshots How to dual-boot Vista with Linux (with Linux installed first) — the step-by-step guide with screenshots The definitive dual-booting guide: Windows 7, Linux, Vista and XP step-by-step Inside Windows 7’s virtual ‘XP Mode’ Read more stories about James BannanRSSEmail Alert WindowsRSSEmail Alert MicrosoftRSSEmail Alert dual bootRSSEmail Alert Windows XPRSSEmail Alert Windows VistaRSSEmail Alert Operating systemsRSSEmail Alert Post your comment <- General comment is required. Send me email alerts for new comments posted in this article Loading… First 50 Comments View All Comments (761) RSS feed Email alert rOcKnRoLL: I coppied the Vista’s root folder the folder Boot, and the files bootmgr, boot.ini, NTDETECT.COM and ntldr and pasted them to the root of my XP drive. I am using Dell Inspiron laptop, didn’t changed anything from the bios settings. I have tried the Vista bootloader Pro to reisntall the vista bootloader from the bootloader tab. Still I couldn’t fint the word ‘reinstall’, the tab has 4 or more radio buttons and all i can do is ‘install’ bootloader and as soon as i reboot my system it ends up in DOS prompting that file is corrupted, I have installed vista boot loader by clicking on a radio button says “All”. Now my question is I have done the same trick in my bosses computer (desktop) and nothing unusual happened. Why with my laptop then? I don’t wanna uninstall vista os, and i have another partition to install only xp os. But how can I get the bootmenu where I can choose which os to select? i will appreciate your replies. forgive my bad english i am international. 29 February 2008, 8:41 PM (1 year ago)report abuse Send to a friend reply bdon: is this comment after following the direction from this page or is is prior to. Because now im questioning if i should even do a dual boot on my inspiron 1505. when i go to disk management i see 4 partition 1.is a 47 MB healthy 2.is 10 gig Drive D: (primary partition). 3 is C: 100 gig OS partion 4.is a random 2 gig (healthy partition) so im guessing if i wanted to do a dual boot i would have to shrink the 100 gig OS? 29 February 2008, 8:41 PM (1 year ago)report abuse Send to a friend reply Jennifer: I saw Steve’s comment on problems with dual-booting Vista and XP on a notebook. I would like to ask some advice. Right now I’m torn between buying an Acer TravelMate 6592G which has a 15 inch screen and XP pre-installed or an Acer TravelMate 7720G with a 17 inch screen and Vista pre-installed. I prefer the 17 inch screen because I’m a graphic designer and this particular model also has a better processor etc. BUT, I use Adobe products that don’t run (well) on Vista. My computer salesman said it’s possible with the 17 inch model to do a dual-boot for Vista and XP, the bonus is it has two separate hard-drives so I wouldn’t need partitions. I am NOT a techie and would try dual-booting myself with the help of a tutorial, hoping all will go smoothly. But is there any guarantee it will run properly, if I do everything right? Can anyone give me some advice? I would really appreciate it! 29 February 2008, 8:41 PM (1 year ago)report abuse Send to a friend reply Anonymous2: http://apcmag.com/5485/dualbooting_vista_and_xp try this tutorial and i would go with the 17in if that is what you really want you can just dump vista and install Xp using this tutorial its for a Hp but its the best one to learn how to intregrate the SATA drivers www.nogodforme.com/HPDV6500T.htm i am not that big of a techie and i got it. 29 February 2008, 8:49 PM (1 year ago)report abuse Send to a friend reply Oooooops!: Ok, so I guess this stuff was a bit too much too chew. I got as far as creating the unallocated space, 2nd partition, on my hard drive. XP install disk does not see any hard drive and cannot continue. (RETREAT!)… but now I can’t even reclaim the 73gb hard drive space. a point in the right direction would be greatly appreciated. 29 February 2008, 8:41 PM (1 year ago)report abuse Send to a friend reply old noob (New user): your not the only 1 when trying to install xp on a pre installed vista machine I have made 43gig unallocated space but can not see the disk WINDOWS XP PROFEEIONAL SETUP Setup did not find any hard disk drives installed in your computer. running sata drive on a rca410L/800-M2 MB 04 May 2008, 6:40 AM (1 year ago)report abuse Send to a friend reply captain_bb (New user): i think u should check bios ang disable the SATA whick is enable coz of vista program. hope this will help 20 September 2008, 5:50 AM (12 months ago)report abuse Send to a friend reply uglymutt (New user): Its not rocket science, no need for any software to run a dual boot either, all you need in vista and xp, its so simple a caveman can do it.. already have vista installed just use the disc partition tool if you know anything about windows you know what I mean, then make a new partition and install xp on this new partition, then reboot and ohhh xp took over well you need to edit the boot loader so if you know anything xp does not see vista but vista can see xp so you need to input your vista disc and boot and select repair and go to command prompt so now if you know anything about windows it all started with DOS and you need to edit the boot loader to show xp and its so simple… no need to run all this extra software crap to confuse everyone and it don’t work like it should, if you know anything about windows then doing a dual boot is as simple and knowing how to play with yourself, OMG this tutorial is about as far out in space as you can get….. glad I know how to run windows…. good luck 26 January 2009, 1:23 PM (7 months ago)report abuse Send to a friend reply ChesterCopperpot: Because you CANNOT install OSX on any generic motherboard. You have to buy an Apple pc to install OSX. There has never been a real case of somebody installing OSX on any ol’ motherboard! And by the way, it is not illegal to dual-boot 2 versions of Microsoft…read the EULA one more time my friend… 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply IndustrialG33k: I have my Toshiba tri-booting with Fedora Core 6, Windows XP, and Mac OS 10.4.3. This has been possible for a couple years now… 29 February 2008, 8:42 PM (1 year ago)report abuse Send to a friend reply Keys (New user): Not true! You don’t need a mac to install Mac OS. It will install on an AMD or intel PC processor! I installed mac os on my 2nd partition as a dual boot – works perfectly (sound took a little bit to get working, but running well now that’s all sorted out) 08 August 2008, 12:50 AM (1 year ago)report abuse Send to a friend reply The Dude: Maybe because Macs are worthless pieces of crapola! 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Craig: Nice article, exactly what I have been searching for. My problem is this PC only came with a “restore” disk and so don’t have the option of doing a repair install to fix the corrupt bootloader. Anyone have any suggestions? 29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply drew: I had the same problem with my Sony VAIO n250e. You cannot do this without a vista install dvd. Don’t even try or you will be pulling your hair out. Even though theres other forums with information how to do this using vistaboot pro, I could never get that program working. I suggest you have someone download you a torrent of the dvd so you can get yourself an illegal copy. Your Vista key should be on the bottom of your computer. Good luck. 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Skippy: You can do it from XP. Install SP2, .NET Framework 2.0, then EasyBCD. Run BCD, click Manage Bootloader. Select Reinstall the Vista Bootloader, then click write. Reboot and it should boot into Vista. From there you can install and run BCD. Click ADD/Remove Entries, and add an entry for XP and save it. That should be it. 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Craig: I couldn’t boot into anything….Vista or XP. Now I have a copy of Vista so I got the repair done so I can boot into Vista. I downloaded EasyBCD and ran it per instructions. On reboot I get both options: Vista or XP but when I try to boot to XP, I get another error blah, blah, “File: \ntdlr”. XP never finished setting up?!?!? How do I get past this? Thanks 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Reuben: I am having the same problem. The dual boot is set up. I can run vista fine. I keep getting the “File: /ntdlr” is missing or corrupt. Any ideas? 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply James: copy ntdetect.com and ntdlr from the /i386 directory on the XP CD to your XP drive, eg, copy e:\i386\ntldr c:\ and copy e:\i386\ntdetect.com c:\ 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Cally: Just did that but I get the same error ?? 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply KWR: Two issues… EasyBCD did not set the boot drive properly after I added an entry for XP while running Vista. So add your entry and then click on “Configure Boot”. Select you Windows XP OS under “Entry-Based Settings” and note the drive location. Make sure it’s set to C:\. Even though I installed to a D: drive, the ntldr, boot.ini etc, were written to the C: drive. Since vista does not use these files I guess it’s ok to put them in the same directory…seems odd to me. At any rate, The boot entry has to be set to C:\ not D:\. 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply DW: Changing the drive letter to Point to C: worked (even though XP is installed on F:) Thanx allot… I needed to get this fixed for work 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply TheRealAnonymous: 1: BIG Help >Changing the drive letter to Point to C: >worked (even though XP is installed on F:) >Thanx allot… I needed to get this fixed >for work You need to stop thanxing and alloting and learn to spell. 29 February 2008, 8:40 PM (1 year ago)report abuse Send to a friend reply cmoohasdfa: Should the files bec opied to c:\ or f:\? 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply Anton Donchev Donchev: This was very, very, very helpfull information. I have no words to say THANK YOU !!! cheers and from meee )) 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply raj shekhar: Hurray, Follow these step my problem is resolved right now i have dual boot system very very thanks 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply Canifrou: Great! Thanx to all who helped. To get dualboot out of my new Toshiba laptop w/ VistaHP. I follow the steps of the article (http://apcmag.com/5485/dualbooting_vista_and_xp?page=1) and the downloads (EasyBCD). I got the Vista dualboot screen, Vista loaded ok, XP came with a error code re: NTLDR. I used EzBCD redirected XP to C drive and PRESTO! Thank you all. CHAU! 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply Kevin: I would just like to thank you for that wonderful bit of information. I have been searching all over the web for over 5 hours trying to sort my dual boot system out, and eventually i come across your post about copying the files from the xp disc onto the harddrive and now all is well. YIPPPEEE im so happy now im off to bed. Cheers once again. 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply ping182nz: Great tips from Skippy….this works great 29 February 2008, 8:39 PM (1 year ago)report abuse Send to a friend reply Heath: Top Tip, running OEM Vista Business with an asus recovery disc, only thing I had to do different was install .net framework 3.0…2.0 didnt work??? after that install easy BCD into XP repair MBR jump back into Vista install easy bcd there too and use as described…BEST TIP EVER!!! 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Intrepidman: Thank you so much. Your suggestion worked like a champ! 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply RickD43: Thank you, you are a lifesaver. Need XP as can’t get SQL Server running on bloody F%*ing Vista for some reason. 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Fullmetal (User): They have an SQL version for vista 12 July 2008, 4:57 AM (1 year ago)report abuse Send to a friend reply ThomasLHS: Thank you very much, Skippy! You’ve saved me a lot of trouble. Just spent the past 8 hours re-installing all my programs on XP only to discover I couldn’t boot into Vista! Followed your advise and it worked perfectly. Thanks again! Now I can finally get some rest… 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply dicko: Or you could just install MS Virtual Workstation 2007 which seems to run ok under Vista and is free. 29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply Mayclone: According to the MS website, virtual PC will not run with Vista Home Premium or Basic as host! 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply The17thsailor: HA! 29 February 2008, 8:40 PM (1 year ago)report abuse Send to a friend reply Callak: This is incorrect. I’m running a 64 bit version of microsoft virtual machine on windows vista ultimate 64 bit, but that doesn’t help me with my issue since I don’t reccomend using a virtual machine to run 3d graphics intensive programs. 29 February 2008, 8:40 PM (1 year ago)report abuse Send to a friend reply Nemo: I unsuccessfully tried to dual boot with my HP Pavillion Notebook which came with pre-installed Vista Ultimate. I desparately needed to have XP on my machine as I wanted to connect to my work via VPN. Nothing worked … then came trying this with MS Virtual PC 2007… gave me exacly what I was looking for. I can now run Visa as the Host OS and XP as Guest OS. Enjoying best of both worlds.. MS Virtial PC 2007 is highly recommended if you need both OS running in the same machine… 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Jazza: I do same on hp dv6589us and works okay but on vpc 2007 cannot use actual video driver, e.g., on a desktop with samsung 22″ monitor. but on laptop even though one reason I bought new one was for vista and dual core, etc., with vpc 2007 and xp I can make it look like my old laptop. BTW my new laptop has 4GB RAM so I allocate 2 to xp and could probably do more even. 29 February 2008, 8:48 PM (1 year ago)report abuse Send to a friend reply Luis: I installed MS Virtual PC 2007 and it is working fine with guess XP Pro, I have Windows Vista Business with 2 Gigas of Ram, and 256 of video ram, but virtual xp only reconize 4 megas !!, but i need more, since i run programas like photohop and corel draw..do you know a way to solve this problem. thank you in advance. 29 February 2008, 8:48 PM (1 year ago)report abuse Send to a friend reply Amit: Hi, My Laptop is preinstalled with Windows Vista Business. Now, I badly need to have XP on my laptop so that I can install a specific software that does not work with vista. Kindly guide me with detailed steps of how can I have Vista as the Host OS and XP as Guest OS using the MS Virtual PC 2007? Appreciate your immediate reply. 29 February 2008, 8:48 PM (1 year ago)report abuse Send to a friend reply rikis: hello, I have (finally) successfully installed (triboot) Ubuntu “Gutsy”, Vista “Home Basic” and XP in my Compaq Presario C700. The key here is that Hp does not ship the vista cd’s and instead uses a “Recovery partition” so once you install Xp (needles to say that the box came with Vista installed) there was no way to boot back into Vista. At this point there are two options: 1.- Boot into Xp, download and install Easy BCD and fix the Vista Bootloader with the option under the “Diagnostics Center” tab. Or 2.- Dowload and Burn a “Vista recovery CD iso image” and use it instead of the Vista DVD (the one that actually installs the operating system). I had some problem with the first option so I had to use the second… In case you guys are willing to try here is a link http://neosmart.net/wiki/display/EBCD/Repairing+the+Windows+Vista+Bootloader Regars, 29 February 2008, 8:48 PM (1 year ago)report abuse Send to a friend reply wilkie: i don’t get why you need to boot with vista disc just to shrink the drive. can’t you just do it within vista’s disk management as detailed below? http://www.bleepingcomputer.com/tutorials/tutorial133.html#shrink 29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply James Bannan: You can use the embedded tool or the DVD – there’s no actual requirement to do it either way.  I was just demonstrating the DVD method because it uses DISKPART from within Windows PE 2.0 and is just rather nifty. You could certainly use the GUI or DISKPART from within the OS. 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Baggy52: One question, how can I use the repair option without a disk? I have a laptop that came with the OS installed, and I am wondering how to get the the boot repaired without a disk. 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply JL: I was wondering this myself 29 February 2008, 8:49 PM (1 year ago)report abuse Send to a friend reply Frank vd Horst: You don’t need the DVD, and you don’t need to reboot. Just type diskpart in an cmd prompt and follow the guidelines as described. things will work fine, your system will automaticly reboot, and there you have your new space 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply Wes: I think this is a good step by step guide but I cannot understand why there would be a need to dual boot Vista with XP. If you have installed Vista and for some reason you need XP then you can have that XP install in a virtual environment instead without going the dual boot way. 29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply Hagar: Virtual environments have come a long, long way, but the more you work with them, you realize there are some things you just can’t expect to do. Especially for a gamer like myself – there’s no way you can run a game that won’t run under Vista (and there’s a bunch at this point) – in a virtual environment. Dual-booting gives you full native access to either O/S with no simulation layers and problems to get in the way. I’ve been doing it this way since Windows 95 and NT 3.51 – and there’s no better way to go! 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply JimmyConga: Gaming under Vista is pretty bad at the moment. That is one excellent reason to keep a native partition of XP on hand… 29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply View all comments (761)

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