APCMA, cement cos: CAT asked to annul Rs6.35bn CCP penalty
ISLAMABAD: All Pakistan Cement Manufacturers Association (APCMA) has appealed the Competition Appellate Tribunal (CAT) to annul Rs 6.35 billion penalty imposed by the Competition Commission of Pakistan (CCP) on APCMA and cement companies on alleged price fixing and collusion.
The Competition Appellate Tribunal (CAT) heard the cement cartel case on Thursday, where Attorney Rashid Anwar, representing the APCMA, articulated his arguments and denied the accusations of price fixing and collusion.
APCMA's legal representative submitted that there is a competitive landscape within the cement sector, characterised by differing prices. He described the CCP's decision against cement companies as unjust, pointing out that the Commission had imposed a significant fine on these firms in 2009, even while they were incurring losses.
Cement makers: CCP keeps up efforts to combat cartelisation
Rashid Anwar argued that the Competition Commission did not conduct a proper geographical analysis of cement companies. He said that the quota sharing agreement between the cement companies was signed in 2003 for two years, which had expired by the time the Commission's decision came. He argued that the CCP did not have reasonable grounds to raid the offices of the APCMA and its member companies. He requested the tribunal to invalidate the decision of the CCP.
Later, the tribunal postponed the hearing of the case until May 22 following the conclusion of APCMA attorney's arguments.
At the next tribunal session, attorneys representing different cement firms including former Attorney General Khalid Javed Khan, Yousuf Khosa, and Shahbaz Khosa, will put forth their arguments to the tribunal. Once they conclude, CCP's legal representatives will defend the Commission's ruling. It should be noted that the CCP had found evidence of alleged agreements and collusion concerning cement price determination (price fixing) involving the APCMA in 2009.
Copyright Business Recorder, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
6 hours ago
- Express Tribune
Sindh to unveil Rs1t budget for 2025-26
Chief Minister Murad Ali Shah will present the provincial budget worth Rs1,018 billion in the Sindh Assembly today (Friday). The development budget allocation is proposed to rise from Rs493 billion to Rs520 billion, and Rs55 billion may be allocated for district-level development projects. Acting Governor of Sindh Awais Qadir Shah has summoned a session of the Sindh Assembly at 3pm. Prior to the assembly session, the provincial cabinet will meet at 10am to approve the budget for the new fiscal year 2025-26. According to sources, the Sindh budget is expected to include an increase in the tax collection rate. Government employees may receive a 10 per cent salary increase, while pensions are likely to be raised by seven per cent. The new fiscal year is also expected to see the launch of new transportation projects, and the overall development budget has been increased. The budget anticipates Rs366 billion in foreign funding and Rs76 billion from the federal Annual Development Programme (ADP). The non-development budget is projected at Rs two trillion. Out of this, Rs400 billion will be allocated to 3,642 development projects, including Rs331 billion for 3,161 incomplete projects and Rs119 billion for 481 new development schemes. After transferring funds from the current fiscal year, the total annual development programme will reach Rs 1,264 billion. In comparison, the development budget for the current year was Rs 1,165 billion. Full funding will be released for 1,350 projects. Of the 27 projects funded by foreign donors, Rs 366 billion has been allocated, including Rs 44 billion as the Sindh government's share. Additionally, the federal government will provide Rs 76 billion as matching funds for 10 projects. Sector-wise allocations include Rs 102 billion for education, Rs 45 billion for health, Rs 83 billion for irrigation, and Rs 132 billion for local govts. The works and services sector is allocated Rs 143 billion, while the energy sector will receive Rs 36 billion. Additionally, Rs 22 billion has been set aside for agriculture and livestock, Rs 59 billion for transport, Rs 24 billion for public health engineering, and Rs six billion for culture, tourism, sports, and youth affairs. Furthermore, Rs 160 billion is proposed for various departmental development schemes. This includes 1,168 schemes across 10 departments such as home, agriculture, prisons, and energy. Rs 80 billion is suggested for 675 schemes under the Works and Services Department, including jails. The Home Department may receive Rs 11 billion, Health Rs 51 billion, and School Education Rs eight billion. In addition, Rs 9.7 billion is proposed for 60 schemes in Agriculture, Supply, and Prices; Rs 4.9 billion for 38 schemes in Livestock and Fisheries; and Rs 2.8 billion for 44 schemes in Culture, Tourism, Archives, and Antiquities. For Sports and Youth Affairs, 210 schemes may receive Rs 6.5 billion. The Services, General Administration, and Coordination Department may get Rs 39 billion for 77 schemes. Rs 1.8 billion is proposed for Industries and Commerce, while Rs 0.4 billion is set aside for two schemes in the Investment Department. The Energy Department is suggested to receive Rs 12.8 billion for 16 schemes, and Rs 12.7 billion is planned for 28 schemes under the Planning and Development Department.
Business Recorder
7 hours ago
- Business Recorder
Budget 2025-2026: Pakistan govt has no vision beyond fiscal survival
The federal budget for financial year 2025-26 presented on June 10, 2025, in the National Assembly, has laid bare both the ambitions and contradictions of Pakistan's fiscal strategy. The total revenue receipts, estimated at Rs 19,278,090 million, are up from Rs 16,802,123 million in the revised estimates of 2024-25, reflecting a significant increase of over Rs 2.47 trillion. Tax revenue target has been set at Rs 14,131,000 million, with direct taxes amounting to Rs 6,902,000 million and indirect taxes Rs 7,229,000 million. The share of indirect taxation remains worryingly high, pointing to the regressive nature of revenue mobilization framework. The total non-tax revenue stands at Rs 5,147,090 million, supported primarily by petroleum levy (Rs 1,468,395 million), State Bank's surplus profits (Rs 2,400,000 million), and dividends (Rs 206,134 million). Dominance of petroleum levy in non-tax receipts suggests fiscal reliance on consumer end fuel prices, with inflationary consequences for the common man. The markup receipts from provinces and public sector enterprises are estimated at Rs 283,810 million and Rs 188,000 million respectively, showing a recovery from the preceding year's underperformance. Capital receipts, including recovery of loans and domestic debt receipts, are estimated at Rs 17,274,113 million. Domestic debt receipts alone are Rs 16,671,113 million, reflecting continued borrowing to meet budgetary shortfalls. Repayment of domestic debt is projected at Rs 14,007,189 million, yielding net domestic debt receipts of Rs 2,663,924 million. Reliance on treasury bills, accounting for Rs 8,430,000 million of the floating debt, reflects the government's short-term borrowing preference with implications for interest rate volatility. The external receipts have been estimated at Rs 5,777,554 million, marginally down from the revised Rs 5,833,308 million in 2024-25. Project loans from federal and autonomous bodies total Rs 215,719 million, with programme loans and other loans amounting to Rs 4,413,510 million. The sustainability of external borrowing remains under strain given the increasing repayment obligations, as evidenced by Rs 5,472,222 million allocated to foreign loan repayments. Gross federal resources have been computed at Rs 28,532,694 million, with a deduction of Rs 8,205,723 million for the provincial share in federal taxes, resulting in net federal resources of Rs 20,326,971 million. Cash surplus expected from provinces is Rs 1,464,000 million, while privatization proceeds have been ambitiously pitched at Rs 86,550 million, a more than tenfold increase from Rs 8,000 million in the previous year. Total estimated resources thus stand at Rs 23,848,112 million, which equals the total proposed expenditure. The current expenditure on revenue has been set at Rs 16,286,045 million, which includes Rs 12,210,851 million under public services, Rs 2,557,950 million for defence services, and Rs 734,187 million for social protection. The defence budget sees an increment of Rs 368 billion, raising critical questions about prioritization amidst economic distress. The allocation for education stands at Rs 112,683 million and for health at Rs 31,975 million, barely increasing from revised estimates and falling short of international benchmarks. The current expenditure on capital accounts is estimated at Rs 5,787,114 million, a dramatic surge from Rs 3,398,098 million last year, due to ballooning foreign loan repayments. The total current expenditure sums up to Rs 22,073,159 million. The development expenditure has been reduced to Rs 1,774,953 million, with Rs. 590,774 million allocated for revenue account and Rs 1,184,179 million for capital account, suggesting fiscal consolidation at the cost of long-term growth. Total expenditure stands at Rs 23,848,112 million, with Rs 16,876,819 million on revenue account and Rs 6,971,293 million on capital account. Debt servicing constitutes domestic Rs 8,207,250 million and Rs 1,009,322 million for foreign debt, totaling Rs 9,216,572 million, representing 38.6 percent of total current expenditure. The burden of debt repayment limits fiscal flexibility and crowds out essential public services. The policy measures embedded in the Finance Bill 2025-26 under the Customs Act of 1969, Sales Tax Act of 1990, and Income Tax Ordinance of 2001 introduce a wide range of changes. Tariff rationalization initiative eliminates outdated slabs and introduces new 5 percent, 10 percent, and 15 percent slabs, reducing additional customs duty (ACD) rates and regulatory duties across thousands of PCT codes. Digitization pushing through centralized assessment units, cargo tracking systems, and customs modernization aligns with global best practices, yet its effectiveness hinges on implementation. The Sales Tax Act amendments propose taxing e-commerce through e-Bilty and cargo tracking definitions and shifting collection responsibility to banks and couriers. Expansion of the Third Schedule to include imported coffee, cereal bars, and chocolates underlines the government's attempt to formalize retail tax collection. Withdrawal of exemptions on solar panels and industrial units in the erstwhile FATA/PATA marks a move toward harmonized taxation but may generate backlash from impacted sectors. The income tax measures include a new digital transaction proceeds levy, increase in tax on dividends to 25 percent, and enhancement of tax on debt income from 15 percent to 20 percent. Tax burden on non-filers and pensioners earning above Rs 10 million has also increased. Relief measures offer marginal reduction in salaried class tax rates and extend exemptions to the erstwhile FATA/PATA. The procedural tightening on cash transactions and property valuations aims to expand the formal economy. The fiscal framework for 2025-26 reveals a strategy focused on aggressive revenue mobilization, enhanced digitization, and expenditure rationalization. The projected revenue receipts of Rs 19.28 trillion against an expenditure of Rs 23.84 trillion still leave a fiscal deficit, to be bridged by Rs 5.78 trillion in external receipts and Rs 2.66 trillion in net domestic borrowing. The macroeconomic implications of such debt-driven budgeting include inflationary pressures, exchange rate vulnerabilities, and heightened interest obligations. The common citizen faces a dual burden. Increase in petroleum levy, withholding taxes, and indirect taxes will translate into higher prices of essentials. The limited allocation for health, education, and social welfare undermines human development prospects. The disparity between current and development spending, with the former constituting over 92% of total expenditure, reveals a short-term orientation at the cost of long-term growth. The government must revisit its budgetary priorities. The tax policy should shift from indirect to direct taxation to promote equity. The expenditure side must see rationalization of defence and administrative costs, while enhancing allocations to education, health, and job creation. The privatization target of Rs. 86.5 billion must be accompanied by transparency and accountability. The success of digital enforcement, customs reform, and tax policy overhaul will depend on institutional capacity, governance, and political will. The federal budget 2025-26 represents both a fiscal necessity and a political choice. The numbers reflect economic urgency, but the distribution reflects entrenched priorities. The path forward demands more than arithmetic; it requires structural reform, inclusive planning, and a vision beyond fiscal survival. Copyright Business Recorder, 2025
Business Recorder
8 hours ago
- Business Recorder
Budget boosts agri loans, but growth uncertainty remains
LAHORE: While the budget 2025 continues to present agriculture as the backbone of Pakistan's economy - contributing 24% to the national GDP - experts and stakeholders expressed concerns that real growth and resilience in the sector remain uncertain. The government has introduced several policy initiatives aimed at improving agriculture and strengthening climate resilience. These include an increase in agricultural loans from Rs 1,785 billion to Rs 2,066 billion, digital refinancing of up to Rs 100,000 for small farmers without collateral, and the establishment of the National Seed Development and Regulatory Authority to support climate-compatible seed systems. In addition, the National Agriculture Biotechnology Policy and National Seed Policy 2025 are in the final approval stages, aiming to improve innovation, seed quality regulation, and private sector involvement in research and development, according to Aamer Hayat Bhandara, a progressive farmer and co-founder of Agriculture Republic. A National Agriculture Committee is also being formed to improve coordination between federal and provincial governments - acknowledging that agricultural execution primarily falls under provincial jurisdiction. However, the Economic Survey of Pakistan reported just a 0.56% growth rate in the agriculture sector which is considered 'disheartening' for a country where millions depend on farming. 'Despite agriculture being frequently mentioned in policy debates, the lack of a long-term, consistent strategy continues to hold back meaningful progress. Relying solely on policy announcements is risky - especially when climate change, water inefficiency, and weak farmer support remain unresolved,' said Bhandara. He emphasized that real change will come only when policies are implemented effectively and reach the grassroots level. Meanwhile, the Kissan Board Pakistan (KBP), a small farmer advocacy group, criticized the budget for ignoring the agricultural community. They argued that inadequate subsidies for crop procurement and indirect taxes on farming inputs would further strain farmers. KBP President Sardar Zafar Hussain Khan, General Secretary Dr. Abdul Jabbar Khan, and Secretary Information Haji Muhammad Ramzan, in a press conference, pledged to continue advocating for farmers' rights. They warned that unless agriculture is placed at the top of the national agenda, economic progress will remain limited. Pakistan Kissan Ittehad (PKI) President Khalid Khokhar and Aamer Hayat Bhandara also pointed out inconsistencies in tax policies. They called for the removal of the 18% GST on local cotton, arguing that it creates an unfair advantage for imported, tax-free cotton. Removing the tax would support local growers and help revive domestic cotton cultivation. Experts noted that climate change featured prominently in both the Economic Survey and the federal budget speech. The government has secured $1.4 billion through the IMF's Resilience and Sustainability Facility (RSF) to invest in climate-resilient infrastructure, seed systems, and risk management. Encouragingly, no new taxes have been imposed on fertilizers and pesticides, protecting farmers from additional costs amid ongoing IMF reforms. However, the imposition of GST on solar energy technologies has drawn widespread criticism for threatening clean energy access in agriculture. For many smallholders, solar-powered tube wells, cold storage units, and off-grid irrigation systems remain the only viable options amid high electricity costs and climate challenges. Making these technologies more expensive, experts warned, could hinder the country's goals for climate adaptation in rural areas. Copyright Business Recorder, 2025
