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Business Recorder
26-05-2025
- Business
- Business Recorder
Motorways in Sindh top priority of federal govt: Aleem
KARACHI: Federal Minister for Communications Abdul Aleem Khan has said that the construction of motorways in Sindh is a top priority of the government, and the M-6 and M-10 motorways will be launched simultaneously, as the M-6 is Pakistan's lifeline, which was unfortunately neglected by previous governments. Talking to the media along with Arif Habib chairman Arif Habib Group here on Monday, he said that a motorway will be incomplete in its utility without being connected to the Ports and both the M-6 and M-10 will be linked to the Karachi Port to ensure their full functionality. Highlighting the significance of the M-6 Project, the minister informed that it is a nearly Rs 400 billion initiative comprising upon five sections, each approximately kilometres long. 'There is no better opportunity for investment than in this project,' he pointed out. Aleem Khan said that financing has already been secured for two sections while discussions for the remaining three are ongoing. 'We will finalise the feasibility report and present it to the Prime Minister within the next 15 days,' he added. The federal minister further said that the motorways from Karachi to Hyderabad and from Hyderabad to Sukkur will be completed as early as possible while work on the N-25 Highway from Karachi to Quetta is also scheduled to begin later this year. 'Karachi's challenges are not just provincial, they are national issues and we will address them on a priority,' he emphasized. Replying to the questions, Khan stressed that his focus is on delivering progress rather than engaging in blame games. 'My effort is to prioritise the launch of motorway projects in Sindh; similarly, we are committed to completing the Kaghan-Naran motorway,' he said. He informed that the National Highway Authority (NHA) has recorded unprecedented growth in revenue over the current fiscal year and attaining the target from Rs 64 billion to Rs 110 billion while this additional income will be utilised into improving road infrastructure and constructing new motorways. To ensure road safety, he said that strict measures are being implemented against dangerous driving on motorways. 'Drivers exceeding 150 km/h are not only being fined but also facing FIRs,' he added. Mandatory use of M-Tags is helping reduce long queues, and staffing shortages in motorway police are being addressed,' Aleem Khan said. Regarding his visit to Karachi, the minister mentioned that he, along with the Federal Secretary Communications and Chairman of the NHA held meeting with the Chief Minister of Sindh and assured him of full support from his ministry. He also held a highly productive meeting with the business community led by Arif Habib, where investors expressed interest in participating in the development of Sindh's motorways and road networks. Additionally, he noted that a joint team is being formed to focus on additional options for the Lyari Expressway in Karachi, including improvements to interchanges and exploration of further development projects. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
Pakistan rupee depreciates to 17-month low against US dollar
Rupee's Performance Against US Dollar Since 04 March 2025 The Pakistani rupee declined further against the US dollar, depreciating 0.03% in the inter-bank market on Thursday to hit 17-month low. At close, the local currency settled at 282.06, a loss of Re0.09 against the greenback. On Wednesday, the Pakistani rupee closed the day at 281.97. The rupee was previously recorded at 282 level against the US dollar on December 27, 2023. 'A rise in import demand has put pressure on the currency,' Sana Tawfik, head of research at brokerage Arif Habib, said. Internationally, US fiscal concerns and a tepid auction of Treasury bonds slapped the US dollar to a two-week low versus the yen on Thursday, while President Donald Trump tried to push his sweeping spending and tax-cut bill through Congress. The lacklustre 20-year bond sale reinforced the 'Sell America' narrative, weighing on not just the US dollar but Wall Street as well, with traders already jittery after Moody's cut the US triple-A credit rating last week. Bitcoin pushed to a fresh all-time high on Thursday, partly as investors sought out alternatives to US assets. Gold also benefitted, reaching an almost two-week top of $3,325.79 and putting it within $175 of April's record peak. The US dollar slipped to 143.27 yen early in Asia, the weakest level since May 7. Bitcoin was last 1.6% higher at $110,049.82, after earlier reaching a record high of $110,636.58. Oil prices, a key indicator of currency parity, fell 1% on Thursday after a report that OPEC+ is discussing a production increase for July, stoking concerns that global supply could exceed demand growth. Brent futures fell 64 cents, or 1%, to $64.27 a barrel by 0800 GMT. US West Texas Intermediate crude dropped 59 cents, or 1%, to $60.98. Inter-bank market rates for dollar on Thursday BID Rs 282.06 OFFER Rs 282.26 Open-market movement In the open market, the PKR lost 15 paise for both buying and selling against USD, closing at 283.09 and 284.15, respectively. Against Euro, the PKR lost 2 paise for buying and 3 paise for selling, closing at 320.07 and 322.77, respectively. Against UAE Dirham, the PKR lost 6 paise for buying and 5 paise for selling, closing at 77.15 and 77.55, respectively. Against Saudi Riyal, the PKR lost 6 paise for buying and 2.05 rupees for selling, closing at 75.46 and 77.85, respectively. Open-market rates for dollar on Thursday BID Rs 283.09 OFFER Rs 284.15
Business Recorder
12-05-2025
- Business
- Business Recorder
Arif Habib expects super tax cut in upcoming budget
Arif Habib, the founder and CEO of Arif Habib Corporation Limited, expects a reduction in the super tax in the upcoming budget for the fiscal year 2025-26. Talking to media persons at the Pakistan Stock Exchange (PSX) on Monday, Arif Habib shared that Prime Minister Shehbaz Sharif, in a recent meeting held just a few days ago, has indicated that in the upcoming budget, further relief will be provided to various industries as well as the salaried class. 'I think we can also expect a reduction in the super tax in particular,' said Habib. The federal government will present the next fiscal year's budget on June 2. Commenting on the ongoing cross-border tensions, Arif Habib maintained that India 'wrongly accused' Pakistan and misled its people. 'As a result, it is not only facing backlash from its public but is also under severe criticism in its parliament. On the other hand, Pakistan has emerged as a hero,' he said. The chief executive said the Pakistan stock market reacted 'very positively' amid a series of favourable developments for the country. 'Pakistan has received several good news items one after another — including the approval of the International Monetary Fund (IMF) programme, a reduction in the policy rate,' the business magnate said. The PSX staged a strong comeback on Monday, driven by a convergence of positive developments, including a ceasefire agreement between India and Pakistan, as well as the IMF's approval of crucial funding. The benchmark KSE-100 Index surged nearly 10,000 points during the trading session. Habib added that Pakistan is progressing on the economic front and has shown the world that it is a strong and capable country. In a surprise and much-awaited move, Pakistan and India have agreed to a temporary ceasefire on Saturday. US President Donald Trump confirmed that India and Pakistan agreed to a 'full and immediate ceasefire,' amid both countries launching strikes and counter-strikes against each other's military installations. He also expressed willingness to work with both countries to find a solution concerning Indian Illegally Occupied Kashmir.
Express Tribune
25-02-2025
- Business
- Express Tribune
Govt invokes nationalisation order
NIT, in which the government has only 8.9% shares, had offloaded its 23% shareholding in PECO, which the government termed illegal. photo: FILE Listen to article The bureaucracy is trying to take over management of a publicly listed company by invoking the "notorious" 53-year-old Nationalisation and Economic Reforms Order of Zulfikar Ali Bhutto that torpedoed the economy, revealed proceedings of a parliamentary committee meeting. In order to stop further destruction of Pakistan Engineering Company (PECO), the existing shareholders complained to Prime Minister Shehbaz Sharif and Special Investment Facilitation Council (SIFC) National Coordinator Lt General Sarfraz Ahmad, Arif Habib, one of the key shareholders, told the National Assembly Standing Committee on Privatisation on Tuesday. The State-Owned Enterprises (SOEs) Act empowers boards to appoint managing directors of government-owned companies but the government wants to exercise this right in case of a public listed company by invoking the Nationalisation and Economic Reforms Order of 1972, revealed Arif Habib, who owns a 25% stake in PECO. PECO affairs have to be managed under the Companies Act 2017. Then president Zulfikar Ali Bhutto had promulgated the Nationalisation and Economic Reforms Order in 1972 to nationalise industries. This is considered a key reason behind the destruction of Pakistan's private sector and it took 20 years before former prime minister Nawaz Sharif liberalised the economy. "I explicitly conveyed to the board of directors that the company's affairs have to be governed by Economic Reforms Order 1972," said a letter written by a joint secretary of the federal government. Pakistan had enacted the SOEs Act in 2023 as part of its commitments to the World Bank and the International Monetary Fund to free public sector companies from the clutches of bureaucracy and politicians. Habib said that he had taken up the matter with the prime minister and SIFC's Lt General Sarfraz Ahmad. On Tuesday, he also met Minister for Economic Affairs Ahad Cheema on the instructions of the PM. The hurdles created by the bureaucracy in smooth functioning of the economy and businesses were one of the reasons for setting up the SIFC – a hybrid civil-military body. Privatisation Commission Secretary Usman Bajwa said that the cabinet had decided in August last year to place Peco on privatisation list. PECO has been part of the privatisation programme since the 1990s and yet the small company could not be privatised, said Arif Habib. Bajwa said that until the issue of selling 23% shares by National Investment Trust (NIT) in the stock market back in 2003 remained unresolved, the entity could not be privatised. He added that in July 2023, the Cabinet Committee on Privatisation had set up a three-member secretaries committee to resolve the share sale issue but its report had not yet been finalised. The mentioning of just two examples – the 2003 alleged illegal share sale and the 2023 secretaries committee underscores the bureaucracy's attempts to maintain the status quo. The SIFC last month removed a federal secretary, who did not move a summary seeking permission of the Economic Coordination Committee (ECC) for export. NIT, in which the government has only 8.9% shares, had offloaded its 23% shareholding in PECO, which the government termed illegal. In 2004 – a year after the sale, Arif Habib bought those shares and he currently holds 25% shareholding. Usman Bajwa said that the Ministry of Industries had not provided clarity on the sale of 23% shares and "terms it an illegal transaction". "We are not proceeding with PECO privatisation until this 23% sale issue is resolved," he stressed. "People say Pakistan is not progressing. Can it progress when small issues like the sale of shares remain unresolved for decades," questioned Arif Habib. He mentioned that the National Accountability Bureau (NAB) conducted two separate inquiries on the sale of shares and gave the clean chit. "The government does not feel and raise the real issues the company is facing, which are either privatisation or its revival," said Arif Habib. There used to be a time when the company had 25,000 employees and the Chinese PM visited it in 1964, but now it has been restricted to two plots, he said. Habib pointed out that the government "appoints managing directors, who do not know the basics of PECO business". One MD did not even know the price of electric towers and sold them below production cost, he added. The financial crisis follows years of catastrophic mismanagement under former MD Mairaj Anis Ariff, a nominee of the Ministry of Industries whose tenure saw the company incur losses exceeding Rs1.2 billion, according to the board. Standing Committee Chairman MNA Farooq Sattar said that PECO could not be left in the current state of affairs and the Ministry of Industries should have proved its case before NAB. He told the Privatisation Commission to resolve all outstanding issues in the next 40 days. Sattar said that the government should find a solution to the payments owed by PECO. Arif Habib proposed that the government could recover its loans by selling one property located in Lahore. The government should also make a decision whether it wants to privatise PECO or revive it. Arif Habib called for setting up a garments city on the piece of land in Lahore. The company has a monopoly over manufacturing high-voltage transformers, provided it is revamped.
Express Tribune
16-02-2025
- Business
- Express Tribune
Consensus eludes revival of real estate sector
ISLAMABAD: Prime Minister Shehbaz Sharif has deferred a decision on a tax incentive package to revive the real estate sector, as the issues of giving subsidy to boost construction activities and an amnesty on disclosing source of income remain undecided. Once again, the tax authorities opposed the proposal from a businessman to give Rs50 million equivalent amnesty to first-time home, shop or office buyers due to a constant ban by the International Monetary Fund to give amnesty. The housing sector task force met with Prime Minister Shehbaz Sharif on Friday and shared with him the recommendations to reduce property transaction taxes and abolish the federal excise duty; the government sources told The Express Tribune. Even a filer pays about 8% of the value of the property in taxes on the purchase of property. There was a consensus on lowering the taxes by and large, but the key issues remained undecided, the sources added. The FBR chairman backed the proposal to abolish the 3% federal excise duty and said that the "unjustified" levy has already been disputed by the taxpayers and the matter is also agitated in courts. The FBR is demanding 3% duty on homes that were built in the past and have been sold more than once which is beyond the scope of law. The prime minister has tasked Minister for Economic Affairs Ahad Khan Cheema to fine tune the package, besides taking the IMF on board, said the sources. The meeting discussed lowering taxes on property sale and purchase, abolishing federal excise duty, whether to give interest-rate subsidy to take loans for home construction and should the first-time buyer be given the Rs50 million worth amnesty on an unexplained income, according to the people privy to the discussions. Some members of the task force expressed concerns that the incentive package may result in parking money in the real estate sector and can again fuel the speculative activities. Arif Habib, Pakistan's one of leading businessmen, suggested that the first-time home buyer should not be asked the source of income of up to Rs50 million. However, FBR Chairman Rashid Langrial opposed the proposal and said that it would be tantamount to giving tax amnesty, which the IMF would not allow. Due to the large size of the informal cash-based economy, the corporate sector and banks are reluctant to undertake major construction projects, explained Arif Habib. He said that his proposal did not strictly fall in the definition of the amnesty as it would be limited only to the first-time genuine buyers. The large size of the informal economy is resulting in either declaring the values of the property at lower than actual price or the people use cash to avoid scrutiny. The prime minister instructed that the government officials should sit with Arif Habib and aim at finding a solution. It emerged from the meeting that the business community would meet with the IMF next month to take up the Rs50 million amnesty scheme agenda for a discussion. "It seems that there is a consensus on givig relief to the real estate sector," FBR Chairman Rashid Langrial said last week in a meeting of the National Assembly Standing Committee on Finance that had deferred the legal amendment requiring upfront disclosure of the source of buying the property. The housing sector task force had been constituted by the prime minister after the real estate sector activities slowed down due to heavy taxes and the overall slugging economic growth. Pakistan's economy grew at only 0.9% rate in the first quarter of this fiscal year. The prime minister expressed the desire that the real estate sector package should aim at promoting the construction and economic activities in the country. The meeting discussed giving interest rate subsidies to enable the lower and middle-income groups to take bank loans for home construction. The Economic Affairs Minister has been asked to come up with the recommendations by next week. Former prime minister Imran Khan had also given the interest-rate reduction subsidy for the lower middle-income group, which helped many to have their own shelter. The central bank has set the policy rate at 12% but the home loans are still very expensive ranging over 17%. The prime minister has not yet made a move to lessen the fiscal woes of the salaried class, which paid Rs285 billion in income tax during July-January period of this fiscal year. The Rs285 billion payments are Rs100 billion more than the last year. This is also much more than the government's annual target of additional tax collection from the salaried class. The National Assembly Standing Committee on Finance this week delayed the approval of an amendment bill, which proposed a ban on the purchase of properties without upfront disclosure of the source of the money for buying the asset. The delay in the approval of the Tax Laws Amendment Bill provided a major relief to the realty sector that could now undertake property transactions without the requirement of upfront disclosure of the source of the purchase. The government official said that no relief package for the real estate sector has been finalized and the consultations with the provinces and the IMF have also not yet commenced. The real estate sector largely remains unregulated. Vast fertile agricultural lands are converted into housing societies; many of those do not have regulatory approvals and are doing illegal business. There is also more availability of plots in the market than the actual demand due to very high prices. There is also an issue of overselling of apartments and the plots and the solution to this is to allow the construction projects investment through escrow accounts.
