Soaring costs hit Iftar gatherings
The soaring prices have cast a shadow over traditional Iftar gatherings, with a staggering 60-70 per cent decline in community Iftar meals organised by philanthropists and local groups.
The few remaining Iftars in the city are now overwhelmed with crowds of underprivileged citizens, including women, children, and labourers.
Due to severe financial constraints, the district administration and government institutions have entirely scrapped their Iftar arrangements.
The sharp rise in the prices of essential Iftar itemsfruits, vegetables, meat, milk, dates, and fried snackshas discouraged many donors who previously set up roadside Iftar stalls across the city.
In previous years, citizens would gather at intersections, distributing small packets of dates and fritters to passing motorists and pedestrians. This year, however, these young volunteers have disappeared, their charitable efforts crippled by inflation.
Even former Interior Minister Sheikh Rasheed, known for hosting 30 Iftar and Suhoor meals annually, has been forced to discontinue his long-standing tradition.
Political parties such as the PPP, PML-N, PML-Q, Jamaat-e-Islami, Awami Tehreek, and PTI, which previously arranged large-scale Iftars, have so far refrained from holding any such events.
Moving forward, they plan to organise only selective Iftar gatherings, limiting invitations to a chosen few.
With political Iftar events vanishing, many labourers and party workers have turned to mosques and Imambargahs for evening meals. However, unlike previous years, these religious spaces now only offer Iftar snacks without full meals.
For over 50 years, Iftar stalls were a common sight in bustling areas such as Murree Road, Faizabad, Sadar Bazaar, Moti Bazaar, and several neighbourhood streets.
Shopkeepers used to invite passersby to break their fasts with full meals.
Large mosques and public spaces, including Fawara Chowk, Liaquat Bagh, and Sunday Bazaar, hosted daily mass Iftars.
However, over the past three years, relentless inflation has dismantled these traditions.
The limited Iftars that do take place are now overcrowded, with double the expected number of people arriving, leaving many empty-handed.
The Citizen Action Committee's chairman, Zaheer Awan, lamented that inflation is consuming everything, including free Iftar meals once funded by the government.
"Even official institutions are financially crippled, and all government-funded Iftars have been banned," he added.
Lawyers, too, are feeling the pinch. Sardar Manzar Bashir, President of the District Bar Association, pointed out that hotel buffet prices have surged from Rs2,000-2,500 to over Rs5,000.
"Hosting an Iftar today costs anywhere between Rs1.5 to 2 million," he said.
Ghulam Qadir Mir, president of the Central Traders Association of Sabzi Mandi, suggested that the district administration and traders should collaborate to revive community Iftars. However, he admitted that large-scale arrangements are no longer feasible.
Even long-time community organizers have had to shut down operations. Tanveer Khan and Sharif Qureshi, who ran daily Iftars at Children's Park for 12 years, revealed that they could now only afford to host meals for one week.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Pakistan govt offers tax relief, cuts rates for salaried class
ISLAMABAD: The government has announced substantial tax relief measure in the federal budget (2025-26) for salaried class taxpayers, and reduced tax rates across all income slabs for salaried individuals, aiming to provide much-needed financial respite amid economic challenges. Tax rates for salaried individuals for income slab upto Rs.3,200,000 has been reduced to provide relief to lower and middle tiers income bracket. Similarly, surcharge rate is proposed to be reduced from 10% to 9% for salaried individuals only. The Finance Bill (2025-26) introduced a revised tax structure for salaried individuals, significantly lowering tax rates and amounts across various income brackets. Federal budget 2025-26: Cut in taxation rates for salaried people likely Income between Rs600,000 and Rs1.2 million: The tax rate has been set at 1%, with the tax liability on an income of Rs1.2 million reduced from Rs30,000 to Rs6,000. Income between Rs1.2 million and Rs2.2 million: The 15% tax rate imposed on annual income between Rs1.2 million and Rs2.2 million has been reduced by 4%. The new tax is set at 11%. This means, an employee earning up to Rs 2.2 million, who used to pay a maximum of Rs330,000 annually in tax, will now pay Rs242,000. Income between Rs2.2 million and Rs3.2 million: The tax rate has been lowered from 25% to 23%, providing relief to higher-earning salaried individuals. An employee earning up to Rs2.2 million, whose maximum tax was previously Rs550,000 per year, will now have Rs506,000 deducted annually. These reductions across all tax slabs reflect the government's commitment to supporting the salaried class, which has faced significant economic pressures due to inflation and rising living costs. When contacted, tax lawyer Waheed Shahzad Butt informed that salaried individuals, earning between Rs600,000 and Rs1.2 million annually, will get the largest relief as the Pakistan government proposed a one percent tax rate from the earlier five percent. The proposal means that individuals earning Rs1.2 million will pay Rs6,000 in taxes, down from Rs30,000. Additionally, the Pakistan government has proposed 11 percent income tax on taxpayers earning up to Rs2.2 million annually, a sharp four percent decline from the earlier 15 percent. Copyright Business Recorder, 2025
Express Tribune
3 hours ago
- Express Tribune
21% hike in defence budget
In response to mounting security threats and recent military escalation with India, the federal government on Tuesday proposed a substantial 21 per cent increase in the defence budget for the fiscal year 2025-26 – a move that garnered cross-party support. The proposed allocation of Rs2,550 billion marks a sharp rise from the outgoing fiscal year's original defence budget of Rs2,128 billion. The revised figure for the current year stands at Rs2,181 billion, reflecting the financial strain of last month's four-day military standoff with India, during which both countries exchanged missiles and drones for the first time since becoming nuclear powers. The increase in Pakistan's defence spending this year outpaces the average annual rise of 1015 per cent seen in recent years, driven largely by what officials term a "radically altered regional security environment". India's 2025-26 defence budget has been set at $78.7 billion — a 9.5 per cent increase — with $21 billion earmarked for the procurement of new military equipment. According to the budget documents, Pakistan's defence expenditure as a percentage of GDP will rise to 1.97 per cent, up from last year's 1.71 per cent. The figures exclude Rs742 billion allocated for pensions of retired military personnel and Rs300 billion for the Armed Forces Development Programme. A breakdown of the proposed Rs2,550 billion allocation shows: Rs846 billion set aside for salaries and employee-related expenses; Rs704 billion for operating expenses; Rs663 billion for procurement of arms, ammunition and related equipment — both domestic and imported — and Rs336 billion for civil works and infrastructure development. While all three services — the army, navy, and air force — will receive budgetary increases, the Pakistan Army continues to command the largest share due to its size and operational responsibilities. The budget hike comes in the wake of unprecedented hostilities last month, triggered by India's allegations that Pakistan was behind the Pahalgam attack. Pakistan categorically denied any involvement. The two countries exchanged drones and missiles before agreeing to a US-brokered ceasefire on May 10, which held despite India later rejecting Washington's mediation and insisting its military campaign — dubbed "Operation Sindoor" — was merely paused. During the conflict, Pakistan downed six Indian fighter jets and one UAV. Islamabad has since warned that any future violation of its sovereignty would be met with a swift and forceful response. India, under Prime Minister Narendra Modi, has adopted a more aggressive posture, declaring that any future attack could be treated as an act of war. Defence analysts argue that the strategic landscape has changed. With India effectively lowering the threshold for conflict, Pakistan's defence planners are increasingly focused on acquiring next-generation technologies, including fifth-generation fighter jets from China, advanced drones and cyber warfare capabilities. In past years, debates over balancing defence spending with development priorities were common. However, in the current context of heightened military alert and geopolitical uncertainty, the latest budget has drawn little public criticism. Experts warn that absent a credible peace process and sustained diplomatic engagement, the region risks being caught in a costly and dangerous arms race.
Express Tribune
3 hours ago
- Express Tribune
Anti-digital, pro-realty sector budget
Finance Minister Muhammad Aurangzeb on Tuesday unveiled a Rs17.6 trillion budget, which attempted to limit fiscal expansion but taxation measures were clearly self-contradictory that on one hand would promote cash economy and fossil fuels but discourage these too on the other. The government of Prime Minister Shehbaz Sharif also introduced new taxes on the digital economy, pensioners and clean energy. Some of these measures were contradictory to the stated policy to discourage the cash economy. However, the Finance Bill 2025-26, also gave incentives for clean energy by taxing the internal combustion engine cars and fossil fuels. Despite high poverty and high unemployment, the government proposed to drastically reduce import duties from raw materials to finished goods, which the industry feared would lead to de-industrialisation of Pakistan. The economy has been opened for the foreign competition by lowering protection available to local industries. The finance minister said that the maximum custom duty slab has been reduced to 15% while a five-year plan had been given to abolish additional and regulatory duties. The inaudible budget speech, which Aurangzeb, delivered in the midst of rowdy opposition, clearly lacked in giving any policy direction. While the Finance Division tried to meet the International Monetary Fund's (IMF) requirement to meet fiscal targets, the Federal Board of Revenue (FBR) was not able to come up with the clear taxation policy. The Finance Bill 2025-26 appeared to be the most confusing document that any government produced in years. It revolved around going after the economy of the youth and the 21st century business practices. The government has proposed 18% sales tax on import of solar panels but it imposed Rs2.5 per litre carbon levy on use of petrol, diesel and furnace oil, showing the lack of clarity on the part of the government. Likewise, it increased the tax on cash withdrawals from banks from 0.6% to 0.8% to discourage cash economy and generate more easy money but it also imposed a new tax on digital services platforms in the range of 0.25% to 5%. The government also increased sales tax on 850 cc cars of the middle class from 12.5% to 18%. A new tax has been introduced on pensioners where the monthly pension of Rs833,000 has been taxed at the rate of 5%. The FBR was once again lacking in determining the policy, whether the government wanted to promote digital economy or cash economy. FBR Chairman Rashid Langrial cancelled the media briefing on the Finance Bill 2025-26, which was tantamount to compromising transparency and the right of the people to know about the measures that impact their futures. In his budget speech, the finance minister surprisingly stated that the "rapid growth in the online business and digital market places was creating problems for traditional businesses, therefore, it is proposed that e-commerce platforms, couriers and logistic services should be taxed at the rate of 18%. A tax official told The Express Tribune that the FBR would earn Rs64 billion by taxing the digital economy. The Finance Bill 2025-26 showed that the economic managers preferred the 19th century economy by providing some relief on purchase of properties but taxed the digital platforms of the 21st century. It has also proposed to ban economic transactions of ineligible persons, which include ban on purchase of properties, cars and investment in securities by persons whose assets do not match these purchases. Through the Finance Bill, the government also amended a host of other non-tax laws besides introducing two new legislations, the Digital Presence Proceeds Act 2025 and the New Energy Vehicles Adoption Levy Act, 2025. There might be constitutional questions, whether the new laws can be introduced through the Finance Bill. The government has proposed a total of over Rs415 billion worth of tax measures in the budget, said the senior tax official. These include Rs292 billion worth of FBR-related measures, Rs111 billion additional earnings by imposing Rs2.5 per litre carbon levy on petrol, diesel and furnace oil and Rs9 billion worth levy on conventional cars. Finance Minister Aurangzeb said that the IMF had also accepted the Rs389 billion worth enforcement measures. But he admitted that the FBR's tax-to-GDP ratio would remain below the IMF target of 10.6% in this fiscal year. The government has proposed these measures to extract a minimum Rs2.2 trillion from the sluggish economy in a bid to achieve next fiscal year's Rs14.13 trillion tax target. The petroleum and carbon levy target has been set at Rs1.47 trillion for the next fiscal year on the back of Rs80 per litre levy. The finance minister also announced some respite for the lower to middle income group salaried persons. He said that on the annual income of Rs1.2 million, the tax rate will be 2.5%, down from 5%. In the cabinet meeting earlier, there was an exchange of words between the finance minister and the Communication Minister Abdul Alaeem Khan, who had asked the prime minister to further increase the salaries for the government employees. On that the finance minister stated that this would require additional resources, prompting Khan to say that he was not a street vendor, who did not know that this required additional money, said a member of the cabinet on condition of anonymity. The prime minister decided that in order to give a 10% increase in the salaries, the tax rate for the lower middle income group should be increased from the proposed 1% to 2.5%, said the sources. On annual income of up to Rs2.2 million, the government has proposed to reduce the rate from 15% to 11%, on annual income of Rs3.2 million, the rate is reduced from 25% to 23%. There is no relief for the annual salaried income earners of over Rs4.1 million. However, the fine on highest income earners has been reduced from 10% to just 9%, which the finance minister called was necessary to stop "brain drain". Advance tax on sale or transfer of immovable property has been increased from 3% to 4.5% on the value of Rs50 million property. The rate is jacked up to 5% from 3% on Rs100 million property while it is further increased to 5.5% from 4%, if the value exceeds Rs100 million. However, on the purchase of the property the rate is reduced from 3% to 1.5%, from 3.5% to 2% and from 4% to 2.5%, depending upon the value of the property. The economic transactions by the ineligible persons have been banned, if the value of the new purchases is more than 130% of the value of the total assets. Tight fiscal path In order to stay in the IMF programme, the government has proposed a fiscally tight budget, although it created room for political spending too. The government has proposed a budget deficit of Rs6.5 trillion or 5% of the size of the economy. The total size of the budget is Rs17.6 trillion, which is 7.3% less than this year's original budget due to relatively lower allocations for the interest payments in fiscal year 2025-26. The proposed budget deficit is 1.8% of the GDP or Rs2.4 trillion less than the original estimates of this fiscal year. The deficit may still be appearing large in absolute terms. But it is, for the first time, lower than this year's gap, both in terms of size of the economy and in absolute numbers. The defence budget has been proposed at Rs2.55 trillion, which is 21% or Rs436 billion higher than this fiscal year due to war with India. The armed forces development programme has been marginally increased to Rs300 billion, which is far lower than what the military had demanded. The government is projecting gross federal revenues at record Rs19.3 trillion for next fiscal year, higher by Rs1.5 trillion. The gross revenues are based on the FBR's tax target of Rs14.13 trillion and Rs5.2 trillion non-tax revenues. The non-tax income will mainly come from the Petroleum Levy where the government wants to collect nearly Rs1.5 trillion and the Rs2.4 trillion profit by the State Bank of Pakistan. Out of the Rs14.1 trillion FBR tax collections, the provinces will get Rs8.2 trillion as their shares in the federal taxes under the National Finance Commission (NFC) Award. This leaves the federal government with Rs11 trillion net revenues for next fiscal year, which will not be sufficient to meet the interest payments and inclusive of all defence spending. The government will borrow Rs6.5 trillion in the next fiscal year to finance the Rs17.6 trillion total federal budget. Under the IMF programme, the four provinces are also required to save Rs1.46 trillion from their revenues as cash surplus to bring down the national budget deficit to Rs5 trillion or 3.9% of GDP. This is steeper fiscal consolidation and would require all the five governments to meet all their revenue and expenditures related targets. The interest payments will eat 47% of the budget and the federal government's net income —after paying the provincial shares — will be Rs2.8 trillion more than interest payments. The next year's interest payments are estimated at Rs8.2 trillion, which is lower than this fiscal year due to substantial reduction in the interest rates. The finance minister announced a Rs716 billion BISP programme aimed at expanding the net to over 10 million beneficiaries and adding more children in the conditional cash transfer programmes.
