
Non-developmental schemes: SCBAP concerned over allocation of enormous funds in budget
ISLAMABAD: The Supreme Court Bar Association of Pakistan (SCBAP) expressed concern over allocation of enormous funds for non-developmental schemes in the upcoming budget.
SCBAP President Mian Muhammad Rauf Atta, in a statement, issued by his office on Thursday, said these schemes must be strictly controlled and actively discouraged, as they create a clear pathway for corruption.
'It is also concerning to note that federal government has taken significantly higher loans compared to the previous year — a move that could have dire consequences on the economy,' he added.
The SCBAP chief stated that in order to discuss these issues, the association will call a meeting of its Executive Committee soon, and announce further course of action.
The SCBAP demanded that the increase of toll rates be withdrawn immediately; saying if this does not happen then the association will challenge this decision on appropriate forums in competent Court of law.
He stated, 'The SCBAP firmly believes that the NHA's move to drastically increase toll taxes for motorways and highways is tantamount to extortion from an already burdened public grappling with prevalent inflation.' 'This imposition of an additional 50 percent tax is entirely unjustifiable and deserves unequivocal condemnation.'
The NHA, a day ago, announced a 50 percent increase in toll taxes for vehicles without M-Tag or with low balance, effective 15 June 2025, as part of a move to implement a 100 per cent M-Tag system across the country's motorways.
Further, this move is a classic example of how a non-political figure, primarily concerned with property business, is given the responsibility to govern serious matters instead of genuine political leaders who should prioritize the welfare of the populace.
Rauf stated that a critical examination of this decision shows that same is the case here where a Ministry of Communications is being run by a person, who is known for his property business and NHA falls under the purview of the same ministry. Rather than addressing its own flaws and inefficiencies, the NHA has chosen to further exploit the public by raising toll charges, which is utterly unacceptable.
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
a day ago
- Business Recorder
Non-developmental schemes: SCBAP concerned over allocation of enormous funds in budget
ISLAMABAD: The Supreme Court Bar Association of Pakistan (SCBAP) expressed concern over allocation of enormous funds for non-developmental schemes in the upcoming budget. SCBAP President Mian Muhammad Rauf Atta, in a statement, issued by his office on Thursday, said these schemes must be strictly controlled and actively discouraged, as they create a clear pathway for corruption. 'It is also concerning to note that federal government has taken significantly higher loans compared to the previous year — a move that could have dire consequences on the economy,' he added. The SCBAP chief stated that in order to discuss these issues, the association will call a meeting of its Executive Committee soon, and announce further course of action. The SCBAP demanded that the increase of toll rates be withdrawn immediately; saying if this does not happen then the association will challenge this decision on appropriate forums in competent Court of law. He stated, 'The SCBAP firmly believes that the NHA's move to drastically increase toll taxes for motorways and highways is tantamount to extortion from an already burdened public grappling with prevalent inflation.' 'This imposition of an additional 50 percent tax is entirely unjustifiable and deserves unequivocal condemnation.' The NHA, a day ago, announced a 50 percent increase in toll taxes for vehicles without M-Tag or with low balance, effective 15 June 2025, as part of a move to implement a 100 per cent M-Tag system across the country's motorways. Further, this move is a classic example of how a non-political figure, primarily concerned with property business, is given the responsibility to govern serious matters instead of genuine political leaders who should prioritize the welfare of the populace. Rauf stated that a critical examination of this decision shows that same is the case here where a Ministry of Communications is being run by a person, who is known for his property business and NHA falls under the purview of the same ministry. Rather than addressing its own flaws and inefficiencies, the NHA has chosen to further exploit the public by raising toll charges, which is utterly unacceptable. Copyright Business Recorder, 2025


Express Tribune
2 days ago
- Express Tribune
SCBAP terms toll hike by NHA 'extortion', vows legal challenge
Listen to article The Supreme Court Bar Association of Pakistan (SCBAP) has issued a strong statement condemning the National Highway Authority's (NHA) recent decision to increase motorway and highway toll taxes by 50%, calling it an act of 'extortion' and vowing to challenge the decision through legal means. In a press statement released on Wednesday, SCBAP President Mian Muhammad Rauf Atta termed the tax hike 'entirely unjustifiable' and demanded its immediate withdrawal. READ MORE: SCBAP rejects Indus canal plan, calls for fair water sharing 'The imposition of an additional 50% tax is a move that deserves unequivocal condemnation,' he said, adding that if the decision is not reversed, SCBAP will challenge it through legal forums in a competent court of law. The bar association also criticised the leadership of the Ministry of Communications, under which the NHA operates. It questioned why a non-political figure primarily known for his involvement in the property business was given charge of a ministry responsible for public infrastructure. 'This is a classic example of how a person with private business interests is handling public matters that require genuine political leadership concerned with the welfare of the people,' the statement read. SCBAP said the ministry should focus on addressing inefficiencies within the NHA rather than placing an additional burden on the public through increased toll charges. The decision, it said, is 'utterly unacceptable.' The association intends to challenge the decision through legal means if it is not withdrawn immediately. The statement further raised alarm about the upcoming federal budget, expected next week, criticising the allocation of large sums to non-developmental schemes. SCBAP warned that such allocations pose a significant corruption risk and must be discouraged. READ MORE: IHC seeks NHA fund details for Bhong Interchange 'It is concerning to note that the federal government has taken significantly higher loans compared to the previous year,' it added. 'This move could have dire consequences for the economy.' SCBAP announced it will soon convene a meeting of its Executive Committee to discuss these public concerns and determine a further course of action. NHA enforces 50% toll hike for non-M-Tag vehicles starting June 15 Earlier, the NHA announced a 50% increase in toll taxes for vehicles without M-Tag or with low balance, effective 15 June 2025, as part of a move to implement a 100% M-Tag system across the country's motorways. The decision, notified under Section 10(2)(vii) of the NHA Act 1991 as amended in 2024, applies to key motorways including M-1, M-2, M-3, M-4, M-5, M-9, M-14, and E-35. The notification details revised toll rates incorporating a 50% penalty for non-compliant vehicles. According to the NHA, the new toll for cars on the Islamabad–Lahore (M-2) motorway has been fixed at Rs 1,800, while tolls for Lahore–Abdul Hakeem (M-3) and Pindi Bhattian–Multan (M-4) have been set at Rs 1,200 and Rs 1,600 respectively. Multan–Sukkur (M-5) tolls for cars now stand at Rs 1,800, and the rate for DI Khan–Hakla (M-14) has been raised to Rs 1,000. Meanwhile, cars travelling on the Hassanabdal–Mansehra Expressway (E-35) will pay Rs 450. Heavy vehicles will also face steep charges. Two- and three-axle trucks on the Lahore–Islamabad route will be charged Rs 7,900, while articulated trucks will be charged Rs 10,200. Motorists have been urged to ensure timely M-Tag registration and sufficient account balance to avoid the fine. M-Tag facilities are available at motorway toll plazas and authorised service centres nationwide.


Business Recorder
5 days ago
- Business Recorder
Weak dollar reprises its role as ‘carry' trade funder
MUMBAI: The U.S. dollar's weakness since the start of Donald Trump's presidency has made it the preferred funding currency for popular 'carry' trades, fuelling heavy flows into higher-yielding emerging market currencies. Dollar-funded carry trades in the Indonesian rupiah , Indian rupee , Brazilian real , Turkish lira among other currencies, are back in vogue, fund managers said. In a typical currency carry trade, investors use cheap-to-borrow currencies to fund investments in those with better yields. Returns are boosted if the borrowed currency weakens. The dollar, traditionally less favoured than the Japanese yen or Swiss franc for such trades, has become the funding currency of choice as Trump's trade war stokes recession worries and an investor retreat from U.S. Treasuries. Carl Vermassen, a portfolio manager at Zurich-based asset manager Vontobel, has added to carry trades on the rupee and rupiah. 'Emerging market local currency was basically shunned for the simple reason: to avoid local currency risk at a time of an almighty dollar,' he said. 'But, given most investors deem U.S. exceptionalism to have ended, things are changing.' Claudia Calich, head of emerging market debt at M&G Investments, also expects dollar weakness to persist and support carry trades. The London-headquartered fund oversees more than 312 billion pounds ($423.5 billion) and favours the rupee and Philippine peso for carry positions within Asia and the Brazilian real and Mexican peso in Latin America. Intra-day update: rupee strengthens against US dollar The more investors rush back into dollar carry trades, the deeper the dollar's losses are likely to be, analysts said. The dollar index has fallen 8.5% so far this year, dropping below the critical 100 mark in mid-April for the first time in nearly two years. It was last seen at 99.30. That means investors are finding good carry not just in the likes of the rupee and rupiah, whose yields are above those in the United States, but even those with low interest rates such as the South Korean won . The won has led gains in Asian currencies this year with a 6.7% rally against the dollar. The yield advantage over dollars, or the 'carry', measured by the three-month tenure is 2% on the Indian rupee and 1.2% for Indonesia's rupiah. Brazil's real gives a much higher carry at 9% but is far more volatile, meaning the trade could go horribly wrong if the currency depreciates, instead of appreciating. The future expected 3-month volatility, also called implied volatility, for the real is 8.1% compared with 4.7% for the rupee. Goldman Sachs said carry trades were 'a big theme' in recent meetings with its New York clients, with interest growing in Latin American and European markets. 'If volatility settles some more, we will start to hear more about dollar-funded carry trades,' ING Bank said. 'This could be a story for this summer.' Huge inflows Since 'FX carry trades' typically involve investments in bond or money markets in these destinations, analysts expect to see heavy flows into emerging markets. Data for April shows investors bought bonds worth $8.92 billion, the highest for any month since last August, in South Korea, India, Indonesia, Thailand and Malaysia. While some of those flows could have been straight real-money investments into these markets, analysts say carry trades also boomed. In South Korea, foreign investors bought $7.91 billion in bonds, the most since May 2023. Tom Nakamura, vice-president and head of fixed income & currencies at Canadian fund AGF Investments, finds carry trades in Turkey attractive since the central bank's adoption of more orthodox monetary policy. Turkey's benchmark rates are at 46%.