PDWP approves five uplift schemes worth Rs12bn
According to an official statement, the approved projects include the establishment of Garment Cities in Punjab at an estimated cost of Rs. 4,184.498 million, and the setting up of a Project Management Unit (PMU) for the revamping of DHQ/THQ hospitals in the province, with an allocation of Rs. 1,717.299 million.
The PDWP also sanctioned funds for the construction of a Population Welfare House in Punjab at a cost of Rs. 1,388.359 million, and the widening of the metalled road from (N-55) Chowkiwala to the Atomic Energy Project (17 km) in District D.G. Khan, which will cost Rs. 1,153.230 million.
Additionally, the rehabilitation of the Khushab-Muzaffargarh road (District Boundary Khushab to Daal More) in District Jhang was approved with a budget of Rs. 3,647.238 million. The meeting was chaired by senior officials from the Planning & Development Board, including Secretary P&D Rafaqat Ali, Chief Economist Masood Anwar, board members, and other senior officers.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
11 hours ago
- Business Recorder
Positive indicators & challenges ahead
The recent indicators of Pakistan's economic performance point to a cautious but welcome recovery, signaling a phase of renewed optimism for future. The economic growth rate of 2.68 percent for fiscal year (FY) 2025 although modest, is a marked improvement over the contraction of the previous fiscal year. Inflation has dropped dramatically to 4.5 percent from an alarming average of 23.4 percent last year, a development that reflects the positive outcomes of tighter monetary policy, fiscal consolidation, and relative currency stability. The country's foreign policy has witnessed some fine-tuning, with Islamabad actively engaging global powers and regional allies to forge partnerships that support both its diplomatic relevance and economic aspirations. The government has strategically managed its relations with the United States, China, Russia, Saudi Arabia, and Iran in recent months, maintaining a careful balance that is essential in a rapidly shifting geopolitical environment. With the United States, Pakistan has resumed structured dialogues on trade, security, and climate. With China, ties remain robust through continued collaboration under the China-Pakistan Economic Corridor (CPEC), which is slowly shifting focus from infrastructure to industrialization and digital connectivity. Engagements with Russia have seen improvement, particularly with energy cooperation and regional security dialogues. Strengthening of economic and political relations with Saudi Arabia—marked by investment pledges in refinery and mining sectors—and a reset with Iran on border security and energy trade represent a strategic shift that aligns Pakistan with multiple economic axes. These relationships are not only symbolic but also open doors to investment, trade facilitation, and technology transfer, all of which are critical for economic rebound. Sustaining these strategic partnerships will require reinforcement of institutional stability, ensure consistency in policies thus providing economic certainty to international stakeholders. The sanctity of contracts, transparency in regulatory frameworks, and efficient dispute resolution mechanisms must become hallmarks of Pakistan's investment environment. The country must also foster its diplomatic agility, engaging in multilateral platforms while retaining the sovereignty of its economic and political decisions. A sustained engagement strategy can further leverage these international relationships into tangible economic benefits such as enhanced FDI, concessional financing, technology sharing, and access to diversified markets. Pakistan's internal economic challenges remain formidable, especially with lingering issues related to energy sector payments. A contentious dispute between the Power Division and the State Bank of Pakistan (SBP) over repatriation of Rs. 431 billion owed to Chinese power sector projects has revealed institutional friction that could undermine investor confidence. The Chinese coal-fired projects like Port Qasim and Sahiwal have been pressing the Ministry of Finance for clearance of long-standing dues. While SBP maintains that no directives have been issued to delay payments, and only a US$26.5 million profit payment is pending with one commercial bank, the Power Division contests this narrative, claiming substantial non-energy payments have remained stuck in the system for years. Depreciation of the rupee has only exacerbated the situation by diminishing the dollar value of repayments. During a recent sub-committee meeting on reforms, chaired by the Petroleum Minister, this matter took center stage. The divergence between SBP and Power Division made it impossible to issue clear recommendations, particularly in the absence of NEPRA's inputs. The committee rightly emphasized core investment principles, such as legal sanctity, contract enforcement, and policy consistency, which remain essential for attracting foreign capital. The situation with the Chinese power companies not only highlights the need for institutional harmony but also underscores the urgency of reforms in financial governance. In a more forward-looking development, the Board of Investment (BoI) has embarked on promoting six Special Economic Zones (SEZs) to Chinese investors. The plan includes showcasing success stories and offering developed land with basic amenities to entice investment. 3,000 acres are ready for development at Pakistan Steel Mills (PSM) and 700 acres at Allama Iqbal Industrial City (AIIC), while other SEZs also hold substantial potential. Establishing Service Level Agreements (SLAs) to define clear timelines and expectations is a step in the right direction. If implemented effectively, this can create a predictable investment climate and reduce bureaucratic delays that often frustrate investors. BoI's push for regulatory simplification is equally noteworthy. Its Business Facilitation Center (BFC) initiative, regulatory guillotine, and updates to Companies Act, 2017 are commendable. Approval of two reform packages by the Cabinet Committee on Regulatory Reforms (CCoRR) has reportedly reduced the cost of doing business by Rs 250 billion, while three more packages are in the pipeline. These steps indicate seriousness in removing hurdles for domestic and foreign investors alike. By integrating 20 departments with SECP and streamlining food standards and medical device approvals, BoI is beginning to address one of the most deeply rooted challenges in Pakistani economy — overregulation and poor coordination between federal and provincial agencies. Improvement in port operations and cold chain logistics, as reported by the Ministry of Maritime Affairs, presents a new frontier for trade facilitation. Reduction in consignment clearance times by up to 48 hours is notable, although lack of precise data on cold storage costs requires consideration. The recommendation to shift vetted consignments to the green channel, along with establishment of one-window operations, grievance redressal mechanisms and Service Legal Agreements (SLAs) at ports, can dramatically reduce transaction costs and improve competitiveness in the export sector. However, challenges remain in governance. The long-standing vacancy for the Chairman of Karachi Port Trust (KPT) is an example of administrative inefficiency that needs urgent attention. High-performing economies do not operate with leadership gaps in critical institutions, and Pakistan must prioritize merit-based appointments and institutional continuity to ensure smooth functioning of its trade infrastructure. Prime Minister Shehbaz Sharif's directive to eliminate bureaucratic and institutional impediments within the Federal Board of Revenue (FBR) reflects a recognition that meaningful reform must begin at the heart of the revenue machinery. His satisfaction over increase in tax-to-GDP ratio is justified, as it signals an emerging fiscal stability. The Prime Minister has called for the continued implementation of structural changes and emphasized technology integration to modernize customs clearance, increase transparency by abolishing FBR-owned Pakistan Revenue Automated Limited (PRAL) within six months, and reduce inefficiencies. FBR's initiatives, such as the launch of Urdu-language income tax return form, establishment of digital enforcement stations and a faceless customs system, indicate a transition towards a modern revenue ecosystem. The implementation strategy is reportedly advancing in line with established targets, aided by strong coordination between federal and provincial governments. Emphasis on public engagement through the Ministry of Information and Broadcasting is also timely. Involving the public in reform discourse builds trust and increases voluntary compliance. Rollout of a Centralised Assessment Unit (CAU) represents a shift from conventional, often arbitrary practices to data-driven assessments that are vital for fairness and efficiency. The broader macroeconomic indicators further validate that Pakistan's economy, while still vulnerable, is turning a corner. Fiscal deficit for FY2025 has been curtailed to Rs 6.16 trillion, or 5.4 percent of GDP, down from previous year's 6.8 percent. A remarkable achievement was the primary surplus of Rs 2.7 trillion, reflecting tighter control over non-development expenditure and improved revenue mobilisation. Equally notable is the contribution of provincial governments, which posted a combined surplus of Rs 921 billion—almost double the previous year. This intergovernmental cooperation shows increasing maturity in fiscal management providing the federal government greater room to allocate resources towards development spending and social programmes. On the external side, current account surplus of US$ 2.1 billion is a milestone—the first annual surplus in 14 years and the largest in 22 years. This reversal from a US$ 17.4 billion deficit just a few years ago speaks volumes about the effectiveness of external financing discipline and the critical role of remittances. Remittance inflows grew by nearly 26 percent, reaching US$ 38.3 billion, proving to be a cornerstone of Pakistan's foreign exchange stability. This inflow reflects the resilience and confidence of the Pakistani diaspora, a resource that must be engaged more systematically through diaspora bonds, investment windows, and real estate opportunities. The dramatic reduction in inflation from 23.4 percent to 4.5 percent has not only eased household pressures but also helped restore consumer and business confidence. This success underscores the value of monetary discipline, stable exchange rates, and resilient supply chains. Nevertheless, sustaining this low-inflation environment will depend heavily on prudent fiscal policies, resilience against external shocks, and climate-proofing agricultural and industrial supply chains. To transform this emerging stability into long-term growth, Pakistan must broaden its tax base through reforms that promote equity and efficiency. Tax policy must shift from regressive indirect taxes towards direct taxation of high-income earners, property, and non-filers. Strengthening digital footprint of economy through integration of NADRA, SECP, and utility data can bring informal sector into the net without increasing harassment. To attract meaningful investment, the country must institutionalize ease-of-doing-business reforms beyond paperwork and focus on implementation. Investment promotion must be sector-specific, targeting agro-processing, renewable energy, IT exports, and value-added textiles—sectors where Pakistan holds comparative advantages. Clear land titles, industrial zoning, access to finance, and skilled labor are all prerequisites for such investment to materialize. Required growth will only come from a policy environment where consistency, transparency, and accountability form the core of economic governance. Political stability and continuity of reform, even across governments, will build long-term investor confidence. If Pakistan can stay on this course of fiscal consolidation, institutional strengthening, and external engagement strategies, it will not only recover from past turbulences but also establish a more resilient, inclusive, and globally competitive economy. (Huzaima Bukhari & Dr Ikramul Haq, lawyers and partners of Huzaima & Ikram, are Adjunct Faculty at Lahore University of Management Sciences (LUMS), members Advisory Board and Visiting Senior Fellows of Pakistan Institute of Development Economics (PIDE) and Abdul Rauf Shakoori is a corporate lawyer) Copyright Business Recorder, 2025
Business Recorder
11 hours ago
- Business Recorder
PSX: new records galore
KARACHI: The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Wednesday, as bullish sentiment persisted across the board amid strong buying from local mutual funds. The benchmark KSE-100 Index propelled to another record making an all-time closing high of 145,647.14 points which was 558.64 points or 0.39 percent higher than the previous close at 145,088.50 points. During the intra-day trading, the index touched a peak of 146,081 points while its low during the session was 145,250 points. On Thursday, BRIndex100 closed at 14,922.06 points which was 65.89 points or 0.44 percent higher than previous close and the total volume remained 544.037 shares. Meanwhile, BRIndex30 closed at 42,579.54 points which was 236 points or 0.56 percent higher than previous close with 256.164 million shares changed hands. According to market observers, the upward momentum was largely driven by renewed institutional interest—particularly strong inflows from local mutual funds. Analysts at Topline Securities remarked that the positive trajectory from earlier sessions continued as confidence remained intact among investors, helping sustain the buying spree across key sectors. Index-heavyweights played a central role in powering the index higher, with major contributions from Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), Engro Fertilizers (EFERT), Systems Limited (SYS), and Oil and Gas Development Company (OGDC). These five scrips alone added approximately 738 points to the benchmark's gain. Volume activity remained robust, with the ready market recording a turnover of 712.5 million shares—slightly lower than the previous session's 788.46 million shares. However, the traded value increased to Rs 55.7 billion from Rs 52.7 billion a day earlier. Meanwhile, overall market capitalization rose to Rs 17.376 trillion, up from Rs 17.343 trillion, reflecting an addition of over Rs 32 billion in investor wealth. The broader market, however, displayed a mixed breadth. Out of 483 companies traded in the ready market, 221 posted gains, 235 closed lower, and 27 remained unchanged. Similarly, in the futures segment, 165 advanced while 154 declined. Among the volume leaders Pakistan Petroleum Limited (PPL) topped the chart with a robust turnover of over 33 million shares, closing the day at Rs 189.74. It was followed by WorldCall Telecom, which saw 25.3 million shares traded and settled at Rs 1.43. Fauji Foods Limited also featured prominently among the most active stocks, recording a turnover of nearly 24 million shares and closing at Rs 16.04. Notable gainers in the ready market included Rafhan Maize Products, up Rs 81.85 to Rs 9,679.12, and Al-Abbas Sugar, which climbed Rs 39.47 to Rs 1,119.37. On the losing side, PIA Holdings-B tumbled by a massive Rs 1,078.10 to close at Rs 29,857.80, while Nestle Pakistan fell Rs 530.57 to Rs 9,037.58. Sector-wise, oil & gas exploration, fertilizers, banking, and technology shares led the charge, benefiting from positive earnings expectations and sustained macroeconomic optimism. The BR Automobile Assembler Index declined by 122.54 points, or 0.52 percent, to settle at 23,543.71 points, with a total traded volume of 4 million shares. The BR Cement Index also ended in the red, shedding 43.55 points, or 0.38 percent, to close at 11,387.56 points on a turnover of 25.76 million shares. In contrast, the BR Commercial Banks Index posted a modest gain of 103.87 points, rising by 0.24 percent to finish at 42,548.34, with a hefty volume of 98.28 million shares. The BR Power Generation and Distribution Index remained largely flat, dipping slightly by 8.51 points, or 0.04 percent, to end the session at 22,866.24 points, on a turnover of 35.17 million shares. Meanwhile, the BR Oil and Gas Index surged 229.5 points, marking a 1.78 percent increase to reach 13,147.39, with 95.05 million shares traded. Similarly, the BR Technology and Communication Index advanced by 57.5 points, or 1.75 percent, to close at 3,346.55, supported by a strong turnover of 77.47 million shares. According to Ahsan Mehanti of Arif Habib Corporation, stocks closed at a new record high as investors responded positively to a 17 percent year-on-year surge in export data for July 2025. He noted that rupee stability, rising global crude oil prices, a rally in international equity markets, and expectations of a favorable outcome in the US-Pakistan tariff deal also served as key catalysts behind the bullish close at the PSX. Copyright Business Recorder, 2025
Business Recorder
11 hours ago
- Business Recorder
‘Overseas Pakistanis are entitled to import vehicles under gift scheme'
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday categorically clarified that only overseas Pakistanis are entitled to import vehicles under gift or transfer of residence schemes, which do not involve any outward remittance of foreign exchange from Pakistan. The FBR has also announced that all luxury vehicles have been assessed by Customs under the Faceless Customs Assessment (FCA) at higher assessed values without causing any loss of revenue. According to details released by the FBR on Thursday, Pakistan Customs has gradually expanded the scope and coverage of its Faceless Customs Assessment (FCA) to facilitate trade and minimise human interface in the clearance of goods from ports. Launched in December, 2024, the FCA has deprived many who thrived on the gains made from the old system. They have actively been maligning the FCA to secure its roll back. One such example is reported stating that Audit report has revealed large scale clearance of luxury vehicles at highly under-invoiced values in the FCA. In particular, example of a 2023 Toyota Land Cruiser has been given that was allegedly assessed at a petty value of Rs 17,635, in the FCA thereby causing huge loss to national exchequer. On the contrary, it is clarified that the said vehicle was assessed at Rs 10.05 million and an amount of Rs 47.2 million was recovered in duty and taxes. In fact all such vehicles have been assessed by Customs under the FCA at higher assessed values without causing any loss of revenue. The issue of trade based money laundering has also been alleged in import of these vehicles ignoring the fact that only overseas Pakistanis are entitled to such imports under gift or transfer of residence schemes. These schemes do not involve any outward remittance of foreign exchange from Pakistan. Besides, import of used vehicles in the same manner has been taking place even before the launch of the FCA. It is also important to mention that internal reviews and Audit of the FCA, which are often time quoted out of context, are being conducted by the FBR itself to ensure that gaps in this new system are timely identified and addressed. Copyright Business Recorder, 2025
