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Express Tribune
23-04-2025
- Business
- Express Tribune
10m Pakistanis at risk of acute food insecurity: WB
The World Bank cautioned on Wednesday that nearly 10 million Pakistanis could face acute food insecurity during the current fiscal year, with poverty levels expected to rise. The warning came as the bank also revised Pakistan's economic growth forecast downward to 2.7%, citing tight economic policies that are suppressing national output. In its flagship biannual Pakistan Economic Update report, the Washington-based lender noted that the government is likely to miss its annual budget deficit target. Additionally, the country's debt burden is projected to increase both in absolute terms and as a proportion of GDP. "With climatic conditions impacting overall agricultural production of key crops such as rice and maize, nearly 10 million people, mostly in rural areas, are expected to experience high levels of acute food insecurity in FY25", said the World Bank. The report brings back the focus on issues that are not frequently discussed in the official meetings – the food insecurity, poverty, unemployment and decreasing real wages. The report underlined that "key sectors for the pooragriculture, construction, and low-value added servicesexperienced low or negative growth, causing stagnant real wages". Combined with population growth of around 2% this is expected to push approximately 1.9 million more individuals into poverty in this fiscal year. Not only that, the employment-to-population ratio is at 49.7%, which reflects low labour market engagement, particularly among youth and women, said the WB. The report stated that social protection expenditures have not kept pace with inflation, constraining resources available to the poor for food, health, education, and other critical items, with negative implications for human capital and labour productivity. It said that 37% of youth and 62% of women are not in education, employment, or training. "Despite nominal daily wages nearly doubling for low skilled workers, such as masons, painters, plumbers, and unskilled workers, real wages remained stagnant or even slightly decreased," according to the lender. As a result, poverty headcount, even at the official national poverty line, would slightly increase. The World Bank said that while using the national poverty line of Rs3,030 per adult equivalent per month in 2013-14, or Rs8,231 in 2024 prices, the projected poverty headcount rate is 25.4% for this fiscal year. Sluggish economic growth The World Bank said that the economic growth is expected to remain at 2.7% in this fiscal year, which is in line with the forecasts made by the International Monetary Fund (IMF) and the Asian Development Bank (ADB). It means the government will miss its 3.6% economic growth target, which Finance Minister Muhammad Aurangzeb had described in the budget as achievable. Pakistan's key challenge is to transform recent gains from stabilisation into economic growth that is sustainable and adequate for poverty reduction," said Najy Benhassine, World Bank Country Director for Pakistan. He emphasised that high-impact reforms to prioritise an efficient and progressive tax system, supporting a market-determined exchange rate, reducing import tariffs to boost exports, improving business environment and streamlining public sector would signal strong reform commitment, build confidence, and attract investment. The World Bank said that the growth was expected to pick up in the next fiscal year to only 3.1% and then to 3.4% in 2027. The three years' growth projections were lower than the government's this fiscal year's annual target of 3.6%. The report stated that inflation was projected to decline to 5% this year, reflecting a subdued demand, lower commodity and energy prices, and a stable exchange rate. For this fiscal year, Pakistan's current account is projected to achieve a surplus of 0.2% of GDP or $800 million, the first annual surplus in 15 years, driven by stronger worker remittances, said the World Bank. This will help offset a widening trade deficit as import growth outpaces export growth. The current account is expected to return into a deficit of 0.5% in the next fiscal year, it added. Missing budget deficit target As against the government's budget target of 5.9% of the GDP, the World Bank said that the deficit is projected to remain at 6.8% of GDP in this fiscal year. It means the government will spend Rs1.1 trillion more than the budget target. The lender said that still the primary budget balance is anticipated to reach a surplus of 1.9% of GDP in FY25, primarily due to SBP profits. It said that gross financing needs will remain elevated throughout the forecast period, reflecting maturing short-term debt, repayments to multilateral and bilateral creditors, and upcoming Eurobond maturities. Public debt, including guaranteed debt, is projected to reach 74.6% of GDP in this fiscal year, up from 72.7% of the last year, said the lender. Way forward The World Bank urged Pakistan to restore the functioning of the interbank foreign exchange market alongside the fully market determined exchange rate. It has also asked for taking further measures with government right-sizing, including eliminating redundant or unproductive positions or agencies and sought review of public sector compensation, including monetisation and simplification of in-kind benefits to reduce costs and enhance transparency. It stressed the need for implementing parametric pension reforms to substantially reduce future liabilities and facilitate transition to a contribution-based system over time. "Pakistan's economy has turned the corner and stabilised. Yet, the economic outlook remains fragile and any implementation delays in structural reforms or shifts in economic stabilisation could dampen the nascent recovery and intensify external pressures," said Anna Twum, lead author of the report. Risks remain high due to elevated debt levels, policy and global trade uncertainties, and exposure to climatic shocks, said Twum. The World Bank has also urged the implementation of the recently revised Agriculture Income Tax and reforms in the property valuation to address systematic current undervaluation. It sought reduction in the number of zero-rated items under the fifth schedule, which means imposing more taxes. The World Bank recommended elimination of preferential treatments under the income tax ordinance, and conduct ex-ante cost assessments for new exemptions, evaluate past exemptions, and institute sunset clauses.
Express Tribune
04-03-2025
- Business
- Express Tribune
Punjab Auqaf stuck in a raw deal
The monthly rent of commercial shops, houses and offices located in the business centers of Lahore, especially in areas like Anarkali and Neela Gumbad, is at least Rs0.1 to Rs0.2 million for a one to two marla area. Surprisingly, in the same areas, there are the properties of the Punjab Auqaf Department and other state departments, which are given on rent for just a few thousand rupees. Several properties of the Punjab Auqaf Department in the Jallo Mor area of Lahore have been rented by local shopkeepers for many years; however, the tenants of these properties only pay a few thousand rupees to the government per month even though they collect a much larger amount themselves from their own lessees. Such a situation is not only seen in Lahore but in all districts of Punjab, where the properties of the Punjab Auqaf and other government departments, including shops, residential houses and agricultural land worth billions of rupees, are often given on rent at measly rates. Civil society representative and lawyer, Abdullah Malik believed that the rents of government properties should also be according to the market value but unfortunately, this does not happen. 'The rents of the properties of the Evacuee Trust Property Board, Azad Jammu and Kashmir, Auqaf Department and other departments are very low compared to the market rate. In fact, many properties are occupied. For instance, there are many tenants in the Shah Chirag Building adjacent to the Lahore High Court on Mall Road who may not even pay rent. These properties should be auctioned, and their lease period also needs to be reduced,' said Malik. According to the details received by Express Tribune, the notified area of Punjab Auqaf Organization is more than 74,964 acres, of which 29,907 acres five kanals and 11 marlas are cultivable while 45,056 acres, four kanals and three marlas are uncultivable. Similarly, there are 1,426 residential houses, 6,179 shops and 590 other properties, all of which have been given on monthly rent/lease by the department. Although these properties should have an annual rent amounting to Rs568,368,000, during 2024, the department was able to collect only Rs330,231,547 since the rents of these properties are less than the market value. The rent of shops attached to Jamia Masjid Neela Gumbad is Rs100 per square foot, while the rent for shops in Jamia Masjid Hanafia Farooqia Islampura is Rs65 per square foot. Similarly, the rent of shops in Jamia Masjid Peshawari is Rs130 per square foot, and in Jamia Masjid Tajdara Ambia Sabzazar, it is Rs150 per square foot. Likewise, the rent of properties at Jamia Masjid Madina Purani Anarkali is Rs150 per square foot while the rent of shops at Jamia Masjid Aali Nawan Kot is Rs60 per square foot. Punjab Auqaf Secretary Dr Tahir Raza Bukhari claimed that the rents of the Waqf properties were in accordance with the rates fixed by the concerned Deputy Commissioner/District Administration however, they wanted to bring the rents of these properties up to the market value. 'Proposals in this regard have been prepared and sent to the provincial cabinet. Similarly, land in some cities will be leased under public-private partnerships,' informed Dr Bukhari. Reportedly, Punjab Auqaf has now decided to fix the rents of its properties according to the market rate, with 25 per cent imposed every three years and new rents after six years.
Yahoo
07-02-2025
- Politics
- Yahoo
Legislature day 14: Debates over class size and newborn relinquishment you need to tune in for
SALT LAKE CITY (ABC4) — The session continues as the Legislature enters into its 14th day as committees are set to debate Utah's class sizes and newborn relinquishment policies. Here are bills, votes, and hearings you need to tune in for. Since yesterday the Legislature has passed seven new bills that will go to the Governor for signing. Bringing the total up to 33 bills passed this session. With two voting sessions scheduled today for both houses at 11 a.m. and 2 p.m., bills continue to move up each chamber's reading calendar. In the House, H.B. 129 — or Adoption Records Access Amendments — has made its way up the reading calendar. This bill would allow adopted individuals to access the records related to their adoption when they turned 18 years old. We're also tracking H.B. 128, which clarifies that minors are also subject to charges related to weapon possession on school property. H.B. 231 is also waiting for a vote on the House floor, which would mandate run-off elections in the state for primary elections. With yesterday's passage of H.B. 269, the House will have to approve the added Senate amendment before it can move forward to the Governor. In the Senate, S.B 142 — or App Store Accountability Act — a bill that would regulate app stores and how minors access them and apps, waits for a vote on the second reading calendar. S.B. 24, which would make child torture a separate crime, remains circled along with S.B. 11, which would change how certain ballots are mailed in the state. Having passed 2nd reading, S.B. 54, which would ban nicknames and regulate how names appear on ballots, now waits for a final vote in the Senate. As far as hearings go for today, there are four that we are watching. Starting today at 3:40 p.m., the first hearing is the Senate Health and Human Services Committee, which will hear a presentation and debate regarding S.B. 57 — or Newborn Relinquishment Amendments — which is a bill that designates new areas where someone can relinquish their child and designates required care and equipment to use in an 'anonymous relinquishment.' The second hearing we are watching is that of the Senate Education Committee. Which is set to hear S.B. 32, which would set certain regulations for how many teachers there need to be for a certain number of students and requires local school districts to draft policies that reflect this. The next hearing we are watching is the House Political Subdivisions Committee. This committee will be hearing debate on H.B. 262, which sets 'education requirements' for those serving on HOA boards. Also, on the agenda is H.B. 88, which allows for the building of single-family dwellings in urban municipalities. Finally, the last hearing you should tune in for is the House Government Operations Committee, which will hear three bills of note. The first is H.B. 270, which makes reforms to who can access voter registration data and reforms the 'private' designation in statute. The second is H.B. 292, which regulates where you can place political signage, and criminalizes violators. Lastly, H.B. 299 will be heard, which modifies deadlines and how time is calculated in the election code. For more updates on the 2025 General Session, visit Inside Utah Politics! Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
