
Kurram peace restored: 979 bunkers dismantled
Advisor to the Khyber-Pakhtunkhwa Chief Minister on Information and Public Relations, Barrister Muhammad Ali Saif, announced that peace has been successfully restored in Kurram District through the diplomatic and determined efforts of Chief Minister Ali Amin Khan Gandapur.
According to Saif, the region has been cleared of bunkers and weapons, with a total of approximately 979 bunkers belonging to both parties destroyed. Additionally, 86 villages have been disarmed, and all confiscated weapons and ammunition have been placed in government custody.
He emphasized that the main source of tension between the two sides was the presence of bunkers and weapons. Addressing the conflict, the chief minister allocated his personal helicopter for humanitarian aid. Through 338 helicopter sorties, 29,140 kilograms of medicines were delivered to the affected areas. Moreover, 9,290 individuals, including patients, were safely evacuated to Peshawar and other locations.
Saif added that development work in the area is now progressing rapidly and Rs100 million has been approved for the repair of the Tall-Parachinar Road.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
3 days ago
- Express Tribune
Caution urged on foreign advice
Listen to article Amid Pakistan's heavy reliance on foreign consultants to run its economy, an independent think tank has advised the government to choose a path between a truly home-grown economic model and a foreign lender-driven policy agenda. The Tola Associates policy advice came in the middle of a major shift in national tariff policy, where foreign consultants are advising a complete opening of the economy. However, the concerned economic ministries oppose this due to potential adverse implications for businesses and jobs. Pakistan's economy is currently bipolar, and policymakers must choose between home-grown recipes and the International Monetary Fund's (IMF) policy prescriptions, according to the report released on Thursday. The report suggests that home-grown policies should aim to keep policy rates closer to the inflation rate to reduce debt servicing, maintain the currency at its true value, stimulate growth, and reduce the fiscal deficit. In contrast, the IMF's policies focus on monetary tightening, import-led growth, and tariff reduction, which have consequently led to high inflation and suppressed economic growth, the report stated. The government has agreed on a plan to lower import tariffs by almost half over the next five years. In the first year alone, this would result in a Rs200 billion negative impact on revenues. While the IMF has no objection to the steep reduction in import revenues, it is unwilling to allow much-needed relief to all segments of the salaried class. The relief for the salaried class may not even cost Rs100 billion, nearly half the fiscal cost of liberalising the economy — a move that also carries employment risks. The Tola Associates report stressed that next year's economic strategy must prioritise introducing targeted policy measures for industrial development. These include rationalising interest rates for industrial borrowers, reducing electricity tariffs, abolishing export financing schemes on semi-finished and finished goods, and implementing a balanced tariff structure on raw materials. Encouraging import substitution and offering performance-based subsidies — particularly in key sectors such as textiles, leather, and engineering goods - is critical, the report added. However, past experiences suggest that import substitution policies have shown limited results, and the country must shift toward implementing export-focused policies. The report also highlights how efficient crop production could enhance exports by an estimated $2.2 billion. Increasing cotton yields, boosting rice exports, and reducing input costs to return to wheat surplus status were among the key recommendations. Based on its estimates, the report stated that if the current account deficit stays within the government's FY25 target of 0.4% of GDP, the exchange rate should ideally stabilise around Rs272 per US dollar. Including incorporated valuation adjustments for FY25, the rate should not exceed Rs282, it added. However, market fundamentals indicate that the rupee is under pressure, with importers struggling to find adequate dollar liquidity at reasonable rates. Major players like Pakistan State Oil (PSO) and Pak Arab Refinery Company (PARCO) are being forced to pay higher interbank rates. According to Tola Associates' estimates, Pakistan can achieve a current account surplus of 0.1% of GDP by improving cash crop yields in the next fiscal year. If that surplus is realised, the currency could appreciate by up to Rs23, leading to a 4.6% drop in inflation. This, in turn, would create room to reduce interest rates, cut debt servicing costs, and open up significant fiscal space, the report added. Pakistan can substantially bring down interest rates in the next fiscal year to single digits. A 1% reduction in the policy rate could lower the debt servicing cost by Rs515 billion. Aligning interest rates with inflation could allow for a 4.6% rate cut, saving up to Rs2.4 trillion in interest expenses, according to the report.


Business Recorder
4 days ago
- Business Recorder
Better news
At its current pace, cement offtake this year is likely to end up roughly at the same level as last year. Domestic dispatches are estimated to have declined by around 6 percent, but total dispatches have been buoyed by a 24–25 percent rise in exports. Despite muted local demand, cement companies have remained largely profitable, thanks to strong domestic pricing and controlled coal costs. The upcoming budget, however, could bring even better news. After quietly dissolving former Prime Minister Imran Khan's flagship initiative—the Naya Pakistan Housing Development Authority (NAPHDA)—Prime Minister Shehbaz Sharif now appears poised to introduce a housing finance subsidy, echoing Mera Pakistan Mera Ghar (MPMG) scheme in structure, but likely introduced with less fanfare. In its four years of operation, NAPHDA had planned 156,000 housing units, of which only about 58,000 were completed. Of these, 31,000 were financed through MPMG. Given the original target of 5 million homes, progress has been disappointing. It's worth noting, however, that many of the projects under NAPHDA were not initiated by the authority itself but were pre-existing schemes absorbed into its portfolio. The current administration does not appear keen on launching a massive, centrally managed housing initiative—which, considering NAPHDA's bureaucratic pitfalls and Pakistan's fiscal constraints is probably wise. Instead, the government is planning a modest, targeted mark-up subsidy for 200,000 homes. That's a small and manageable start. Banks already have mechanisms in place to assess mortgage applications, owing to their experience with MPMG. According to BR estimates—since the SBP did not disclose borrower figures—approximately 78,000 mortgages were issued between 2020 and 2022, tied to Rs100 billion in loan disbursements (read: 'Now you see it, now you don't'). With limited data, it's difficult to assess the full impact of the scheme. But if Sharif's plan delivers financing for 200,000 homes through the formal banking channel, it would be more than double of what the MPMG ever achieved. And double is better, right? One cannot possible say. The fact is, whether a subsidy scheme will be impactful and add valuable output to the housing market or not, is a question for another day or another political era.. We will have to wait for the Budget 2026 announcement to see the exact modalities of the subsidy—who the scheme will target, and how it will be executed. What's certain increase housing credit will spur demand for construction materials, and cement stands to gain the most which the industry will undoubtedly welcome.


Express Tribune
5 days ago
- Express Tribune
IMF rejects wealth tax, chicken duty
Listen to article The International Monetary Fund (IMF) has objected to the government's contentious proposals to impose a capital value tax on moveable assets and to slap a 5% federal excise duty on one-day-old chicks — measures that underscore the business-as-usual approach of the tax machinery. While the IMF did not endorse the tax on moveable assets and one-day-old chicks, it did agree to the imposition of a tax on digital services aimed at raising Rs10 billion in revenue, according to sources in the Federal Board of Revenue (FBR). There is also a budget proposal to increase the tax on dividend income of mutual funds from 15% to 20%. The withholding tax on interest income may also go up from 15% to 20%, according to officials of the FBR. Among the proposals that may be announced on budget day is the withdrawal of income tax exemption for venture capital companies and funds, according to senior FBR officials. The income tax exemption for the cinema business may also be withdrawn. There has so far been no relief in reducing the income tax rates for the highest slab of 35%, and the 10% surcharge on monthly incomes exceeding Rs500,000 may also remain, said FBR sources. However, the IMF has agreed to reduce the income tax rates for the remaining four slabs, providing some relief on monthly incomes below Rs500,000. It has not agreed to increase the income tax exemption threshold to Rs1.2 million but has approved cutting the rate from 5% to 1%. The sources said that the government wanted to reintroduce the wealth tax in the form of a capital value tax on all moveable assets, excluding shares of listed companies. The proposal had also been presented at the level of Prime Minister Shehbaz Sharif, said FBR officials. The proposal to impose tax on moveable assets such as cash and gold was also shared with the IMF, said the officials. However, the IMF did not endorse the proposal on the grounds that the government should tax income instead of taxing wealth. The FBR wanted to target cash balances in banks to raise revenue, according to FBR officials. Through the Finance Act 2022, the government had introduced a 1% CVT on foreign assets worth over Rs100 million owned by resident Pakistanis, but it has been challenged in the courts. The finance ministry and the FBR on Tuesday gave a briefing to PM Sharif about the budget contours, including measures that the IMF has cleared so far, the sources added. Some issues were still outstanding, including the relief for the real estate sector and the capital value tax. President Asif Ali Zardari on Tuesday convened a National Assembly session for June 10, where Finance Minister Muhammad Aurangzeb will deliver his second budget speech. The Economic Survey of Pakistan is expected to be unveiled on June 9, the third day of Eid. The FBR also wanted to introduce a 5% federal excise duty on one-day-old chicks, but the IMF did not support the idea. It pointed out that, on one hand, the FBR claims there are high taxes on food in Pakistan, and on the other hand, it recommends such proposals. Proposals like the tax on one-day-old chicks and moveable assets indicate that the FBR has run out of ideas. The IMF's concern was that taxing one-day-old chicks was not aimed at broadening the tax base; rather, it targeted a specific industry, said the sources. The FBR did not conduct any study before proposing the tax on chicks, which are an essential food item. The measure was rooted in a tax case involving just one company among hundreds, revealing the shallowness of the proposal. Last month, President Zardari issued the Tax Laws Amendment Ordinance, 2025, and one of the reasons was a poultry sector company. The government inserted a new section, 175C, in the Income Tax Ordinance through ad hoc legislation. The sources said that proposals to impose a 5% federal excise duty on all processed foods — including chips and biscuits — were also considered. Effectively, the 5% FED means the sales tax rate will increase to 23%, and after adding further tax and withholding taxes, the overall cost of taxation will jump to 29%. The prime minister was not in favour of doubling the federal excise duty on fertiliser and raised the issue with the IMF at the highest level. However, during last month's talks, the IMF asked the government to fulfil its commitment to increase the tax, said the sources. The sources said there was still a likelihood that the government may double the federal excise duty on fertiliser to 10% and introduce a 5% excise duty on pesticides in the budget. The sources said the prime minister was told that the budget numbers had been locked with the IMF. The FBR's annual target is likely to be Rs14.130 trillion, and the non-tax revenue target is Rs4 trillion. This brings the total tax and non-tax revenue target to Rs17.1 trillion. The federal government has been allowed to allocate Rs1.186 trillion in budget subsidies, including Rs1.036 trillion for the power sector. For IMF programme purposes, the federal development budget may be Rs873 billion, while provincial budgets are estimated at Rs2.1 trillion — about Rs700 billion less than what the four provincial governments indicated in the Annual Plan Coordination Committee meeting. The IMF has allowed all federal and provincial governments to spend Rs22 trillion on current expenditures. The total expenditures by all five governments for IMF programme purposes are estimated at Rs25 trillion for the fiscal year 2025-26.