Pakistan's tax exemptions rise to $21 million, economic survey shows
Unveiled by Finance Minister Muhammad Aurangzeb on Monday, the Economic Survey of Pakistan 2024-25 documents various economic developments and indicators in a fiscal year.
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Time of India
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- Time of India
Pakistan hikes defence spending by 20% in budget amid tensions with India
Pakistan PM Shehbaz Sharif ISLAMABAD: Pakistan on Tuesday increased its defence budget by 20%, allocating Rs 2,550 billion ($9 billion) for the fiscal year 2025-26, amid tensions with India. Finance minister Muhammad Aurangzeb presented the Rs 17,573 billion worth federal budget for the fiscal year 2025-26 in the National Assembly. He also presented the budget document as a finance bill in the National Assembly. Last year, the govt allocated Rs 2,122 billion for defence, reflecting a 14.9% increase over Rs 1,804 billion budgeted for the fiscal year 2023-24. The defence sector expenses are the second-biggest component of the annual expenditure after the debt payments. The govt allocated Rs 8,207 billion for debt servicing, which constitutes the single biggest expense. The increase in the defence expenditure is expected to get the broad support of the lawmakers during the budget debate and voting on the finance bill. Aurangzeb also announced a 4.2% GDP growth target for the economy which is higher than the 2.7% achieved in the current year ending on June 30. He said that debt and interest servicing would cost Rs 8,207 billion.
Time of India
an hour ago
- Time of India
'Speed up unclaimed deposit refunds': FM Nirmala Sitharaman asks RBI, Sebi to standardise KYC
MUMBAI: FM Nirmala Sitharaman has called on financial regulators to expedite the return of unclaimed assets that have accumulated across banks, insurers, mutual funds, and pension accounts. The FM stressed a coordinated approach to reconnect rightful owners or heirs with dormant funds while chairing the Financial Stability & Development Council (FSDC) meet here on Tuesday. The plan includes district-level outreach camps involving multiple agencies. The FSDC functions as the main platform for dialogue between the finance ministry and regulators. Tuesday's meeting was attended by RBI governor Sanjay Malhotra, Sebi chief Tuhin Kanta Pandey and ministry officials. These assets have grown due to outdated contact details, incomplete documentation, or unreported deaths. Unclaimed bank deposits reached Rs 78,213 crore as of March 2024, rising 26% from the previous year. RBI holds these balances under its Depositor Education and Awareness Fund. SBI alone accounts for over Rs 8,000 crore of this amount. Stockbrokers and other Sebi-regulated entities hold an additional Rs 500 crore in unclaimed assets, spread across idle funds and securities. Several demat accounts and mutual fund units remain inaccessible because of incomplete nominations or lack of awareness. Based on a review of cybersecurity rules, and suggestions from Financial Sector Assessment Programme 2024-25, the FSDC discussed creating a dedicated cybersecurity plan. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 5 Dividend Stocks for May 2025 Seeking Alpha Read Now Undo This area has received emphasis in the wake of the surge in cyberattacks following the India-Pakistan conflict. The council also discussed expanding both the access and coverage of factoring services as well as the use of account aggregators which improves financial inclusion and can reduce unclaimed assets. It also discussed creating frameworks to assess and improve the responsiveness of regulations and proposed prescribing common KYC norms to enable digital onboarding, especially for NRIs, PIOs and OCIs in Indian markets. She said the asset recovery process must be simplified, especially for NRIs, PIOs, and OCIs. Sebi, RBI, Irdai, PFRDA, and the corporate affairs ministry have been asked to work together to reduce procedural hurdles. A standardised KYC framework and uniform nomination systems are part of the plan. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Print
11 hours ago
- The Print
Pakistan raises defence spending by 19% but slashes overall federal budget
In Pakistan, unlike in the case of India, pension is not part of the defence budget. In the new budget, the defence allocation stood at 14.5% of Pakistan's total federal budget and around 2.2% of its GDP, which is projected at $411 billion (Rs 34.3 lakh crore). New Delhi: Pakistan, which has an overall debt of USD 274 billion, Tuesday raised its defence budget by a whopping 19 percent even as it cut its overall budget by 7 percent. Finance Minister Muhammad Aurangzeb unveiled the federal budget for fiscal year 2025–26 which stands at PKR 17.573 trillion (Rs 5.27 lakh crore), down 6.9% from the previous year. However, Aurangzeb announced a significantly increased allocation of PKR 2.55 trillion (approx Rs 76,500 crore) for defence, up from PKR 2.12 trillion (approx Rs 63,600 crore) in the outgoing fiscal. In FY25, Pakistan had allocated PKR 2.1 trillion (approx Rs 63,600 crore) for defence. Additionally, PKR 563 billion ($1.99 billion) was earmarked for military pensions, which are not included in the official defence budget. The new defence allocation accounts for 14.5% of Pakistan's total federal budget and around 2.2% of its GDP, which is projected at $411 billion (Rs 34.3 lakh crore). Including military pensions, total military-related expenditure for last year stood close to PKR 2.66 trillion (Rs 79,800 crore), or about 3.2% of GDP. In contrast, India's defence budget for 2025-2026 was marked at Rs 6.57 lakh crore, nearly nine times Pakistan's defence outlay and higher than Pakistan's entire federal budget. However, India's defence spending, which includes pensions, amounts to merely 1.9% of its GDP. The finance minister began his address tabling the budget in the National Assembly on Tuesday by announcing: 'This budget is being presented at a historic time when the nation showed unity (and) determination,' he said, hinting at the hostilities between India-Pakistan last month. 'The spirit with which we protected our national sovereignty, we need to ensure our financial security in the same way,' the minister said, as he outlined a series of economic reforms and fiscal targets. The country's Planning Minister, Ahsan Iqbal, had already hinted on Saturday that the government would be hiking its defence budget for the 2025-26 fiscal year. 'It is our national duty to provide the armed forces with whatever they need in this budget to bolster their capacity and defend our country in the future. It has been proven that we have a dangerous neighbour (India) who attacked us in the night, but we gave them a befitting response,' he was quoted as saying by Pakistan's Dawn. Also read: Pakistanis unhappy with govt accepting IMF demand to liberalise economy—'it's a death warrant' Big defence spend but slow growth and high debt The budget was presented a day after Aurangzeb unveiled the Pakistan Economic Survey 2024–25, which showed the country's economy had grown 2.5% in FY24 and was projected to grow 2.7% in FY25. While that marks a recovery from the -0.2% contraction in 2023, the growth remains below historical averages and lower than the 3.6% initially targeted for this year. The country's total debt now stands at PKR 76 trillion (approx $274 billion or Rs 22.89 lakh crore), of which PKR 51.5 trillion (Rs 15.45 lakh crore) was domestic and PKR 24.5 trillion (Rs 7.35 lakh crore) was sourced externally. In nominal terms, Pakistan's economy is estimated to have grown to $411 billion (Rs 34.3 lakh crore), still far below its regional peers. Aurangzeb, however, called the upcoming fiscal year a 'turnaround story' and projected a modest but stabilising recovery. He said global GDP growth was expected at 2.8%, placing Pakistan's outlook within a comparable international frame. The budget comes under the watchful eyes of the International Monetary Fund (IMF), with which Pakistan remains engaged under a reform-linked bailout programme. Amidst the 87-hour India-Pakistan conflict earlier last month, the IMF had cleared immediate disbursal of $1 billion on 9 May to Pakistan for economic reforms under a package approved last year and another $1.4 billion to reduce vulnerabilities to natural disasters. As part of this programme, Pakistan has committed to raising revenue and cutting its fiscal deficit. Subsequently, The 2025-2026 budget has set an ambitious tax revenue target of PKR 14.131 trillion (approx Rs 4.24 lakh crore), an 8.95% increase over last year's goal. However, the Economic Survey acknowledged the challenge of meeting this target amid sluggish growth and new trade tariffs from the US, Pakistan's largest export destination. Aurangzeb also announced on Tuesday, moves to procure cheaper energy by shutting down expensive power plants and attracting foreign investment from countries like Turkey in the oil and gas sector, underscoring Pakistan's deepening ties with Turkey. Pakistan's Parliament will now begin debating the budget on Friday, 14 June, after a two-day recess. Discussions will continue until 21 June, followed by debate and voting on grant demands and motions on 24 and 25 June. The Finance Bill 2025 is expected to be passed on 26 June, with supplementary grants taken up the next day. (Edited by Viny Mishra) Also read: Pakistan's economic reforms a pushback against elite but it may backfire
