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First Post
14 minutes ago
- Business
- First Post
Pakistan farmers threaten wheat cultivation boycott over 'unethical' farm tax
Sindh Chamber of Agriculture (SCA) alleged that a new 45 per cent income tax on farm earnings was introduced under pressure from the IMF and threatened of a widespread wheat cultivation boycott in protest read more In a development reflecting rising rural frustration at mounting economic pressures in Pakistan's farm belt and potentially spelling a world of trouble for food security in the cash-strapped nation, Sindh's largest agricultural body said it would mount a legal challenge against a new 45 per cent income tax on farm earnings, branding the levy 'unconstitutional, illegal and unethical'. The Sindh Chamber of Agriculture (SCA) warned of a widespread boycott of wheat cultivation in protest, escalating tensions between farmers and the provincial government. STORY CONTINUES BELOW THIS AD The chamber convened in Pakistan's Hyderabad on Tuesday (July 22) under the leadership of its patron-in-chief, Dr Syed Nadeem Qamar, to formalise its response. It alleged the tax was introduced under pressure from the International Monetary Fund (IMF), with the move drawing strong resistance from growers who argue that poor returns on crops leave no room for additional fiscal burdens, Dawn reported. Farmers attending the meeting said they were struggling to receive adequate prices for their produce and slammed the government's tax move as unjustified. The SCA responded by instructing farmers across Sindh to refrain from paying the new tax, adding that if authorities attempted arrests, 'millions of other farmers would also court arrest.' 'We are ready to face imprisonment, but will not pay the agricultural income tax,' the group's leaders declared. Participants vowed full-scale defiance, comparing their treatment unfavourably to industrialists, who they said had been granted tax exemptions. The SCA also declared a boycott of wheat cultivation for the 2025-26 season, citing inadequate support prices. Instead of sowing wheat, the SCA said farmers would switch to alternative crops such as mustard, nigella (kalonji), sunflower and other oilseeds. The group said growers were unable to recover their costs due to low wheat prices and declared 2025-26 a 'boycott year' for the staple crop. The chamber also raised alarm over a 40 per cent decline in cotton output, forecasting a total yield of no more than four million bales. It said that although the Sindh agriculture minister had pledged a support price of Rs11,000 per maund, farmers were currently receiving just Rs6,500. STORY CONTINUES BELOW THIS AD The SCA called for the immediate removal of an 18 per cent local tax on cotton and demanded a 25 per cent tariff on imported cotton to encourage domestic production. At the same time, it voiced concern over the surging cost of key inputs, noting a PKR 22 per litre jump in diesel prices and a PKR 600 increase in DAP fertiliser per bag over just a fortnight. Such rising costs, paired with stagnant farmgate prices, were pushing cultivators to the brink. The chamber warned that this squeeze signalled a 'deliberate destruction' of the agricultural sector and called on the authorities to reverse the price hikes on diesel, fertiliser, seeds and pesticides immediately. Farmers were urged to register for the government's Benazir Hari Card via local administrative offices to access welfare benefits. The chamber also demanded that existing subsidies of PKR 10,000 per acre– currently applied to sunflower and canola– be extended to mustard and rapeseed crops as well. STORY CONTINUES BELOW THIS AD The meeting included senior figures from Sindh's farming leadership, including Sindh Irrigation and Drainage Authority Chairman Kabool Khatian, general secretary Zahid Bhurgari and agricultural organisers from across the province.
Zawya
an hour ago
- Business
- Zawya
Kenya's debt costs to remain high due to local borrowing, Moody's says
Kenya's cost of servicing its debts is expected to remain stubbornly high, ratings agency Moody's said on Wednesday, as the government leans on the domestic debt market to fund its budget shortfalls. The East African nation has one of the highest debt interest costs to revenue ratio in the world, Moody's said, and spends a third of government revenue on settling interest payments. "Kenya will rely predominantly on the domestic market to meet its fiscal financing needs with approximately two-thirds of its financing, or just under 4% of GDP per year, from domestic sources," the agency said in an issuer report. "This reliance will continue to weigh on debt affordability, a key constraint in Kenya's credit profile." Finance Minister John Mbadi set the government's fiscal deficit for the financial year starting this month at 4.8% of economic output, narrower than the 2024/25 deficit of 5.7%, when he presented the budget to parliament last month. But Moody's said that target could slip as the government confronts acute fiscal pressures. "Kenya's revenue generation capacity remains structurally weak," Moody's said, citing missed revenue collection targets. The government needs to secure a new financing programme with the International Monetary Fund, the ratings agency said, to help it deal with annual external debt repayments that stand at $3.5 billion on average. The government will hold another round of talks with IMF officials in September in a bid to clinch the programme, the central bank chief Kamau Thugge said last month. "A successful IMF programme could anchor investor confidence and reduce external borrowing costs," Moody's said.
News18
2 hours ago
- Business
- News18
India On Track To Become Third-Largest Economy By 2028: Morgan Stanley
India is expected to more than double its GDP to $10.6 trillion by 2035, and three-five states might approach the $1 trillion GDP mark, says Morgan Stanley. India is on track to become the world's third-largest economy by 2028 and more than double its GDP to $10.6 trillion by 2035, according to the latest report by Morgan Stanley released on Wednesday. The report also highlighted the pivotal role that Indian states will play in steering this economic transformation. It said that by 2035, three to five Indian states — including Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka — are projected to approach the $1 trillion GDP mark, putting them among the world's top 20 economies in their own right. 'Based on the latest data, the top three states are Maharashtra, Gujarat, and Telangana," the report noted. It further highlighted Chhattisgarh, Uttar Pradesh, and Madhya Pradesh as the states that have shown the most significant improvement in economic rankings over the past five years. Over the next decade, India is expected to contribute 20% to global growth, becoming a major engine for earnings among multinational corporations, the report said. Morgan Stanley economists emphasized the importance of India's 28 states and eight Union Territories in achieving this ambitious growth. 'States not only manage their own finances but also compete for investments by designing policies and easing business conditions. Ultimately, every factory or business is set up in a specific state," the report stated. The report credited the progress to 'competitive federalism," where states operate with significant legislative and political autonomy, enabling them to frame their own industrial policies and compete for investments. The success of this model, it added, will determine India's rise as a global manufacturing hub, its ability to double per capita income within seven years, and whether it can sustain its capital market momentum. Over the last decade, India has significantly increased infrastructure investment. The Centre's capital expenditure has risen from 1.6% of GDP in FY15 to 3.2% in FY25, spurring major improvements in transportation and logistics. Highway networks have expanded by 60%, the number of airports has doubled, and metro systems have grown fourfold. These developments have been driven by major central schemes such as PM Gati Shakti, the National Infrastructure Pipeline, Bharatmala, Sagarmala, and UDAN, which have been executed alongside state-led initiatives. States also lead infrastructure spending in areas like power, water, and urban development. 'The Centre and states must continue to collaborate closely to meet India's economic ambitions," the report concluded. India has already surpassed Japan to become the world's fourth-largest economy according to IMF data, NITI Aayog CEO BVR Subrahmanyam announced in May 2025. According to the IMF, India's GDP is currently $4.187 trillion, overtaking Japan's $4.186 trillion. Meanwhile, a recent report by JP Morgan said India has emerged as a relatively safe haven among emerging markets (EMs) amid global trade uncertainties. The report highlighted that India is benefiting from a combination of falling inflation, improved system liquidity, and lower government borrowing, which are expected to support economic growth. The report adds that India is expected to post the highest GDP growth among countries in JP Morgan's global universe in 2025. Growth is also being supported by timely demand stimulus and measures that have strengthened urban household balance sheets. In addition, a recovery in the rural economy, further aided by a favourable monsoon, is adding to the positive outlook. It stated, 'India: Falling inflation, enhanced system liquidity and lower borrowing to boost growth. Timely demand stimulus and support to urban household balance sheet". JP Morgan's emerging markets strategists are constructive on several emerging market countries, including India, Korea, Brazil, Philippines, UAE, Greece, and Poland. Among these, India holds a 19 per cent weight in the MSCI EM Index and has been rated 'Overweight" (OW) by JP Morgan. tags : indian economy view comments Location : New Delhi, India, India First Published: July 23, 2025, 17:55 IST News business » economy India On Track To Become Third-Largest Economy By 2028: Morgan Stanley Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Reuters
2 hours ago
- Business
- Reuters
Kenya's debt costs to remain high due to local borrowing, Moody's says
NAIROBI, July 23 (Reuters) - Kenya's cost of servicing its debts is expected to remain stubbornly high, ratings agency Moody's said on Wednesday, as the government leans on the domestic debt market to fund its budget shortfalls. The East African nation has one of the highest debt interest costs to revenue ratio in the world, Moody's said, and spends a third of government revenue on settling interest payments. "Kenya will rely predominantly on the domestic market to meet its fiscal financing needs with approximately two-thirds of its financing, or just under 4% of GDP per year, from domestic sources," the agency said in an issuer report. "This reliance will continue to weigh on debt affordability, a key constraint in Kenya's credit profile." Finance Minister John Mbadi set the government's fiscal deficit for the financial year starting this month at 4.8% of economic output, narrower than the 2024/25 deficit of 5.7%, when he presented the budget to parliament last month. But Moody's said that target could slip as the government confronts acute fiscal pressures. "Kenya's revenue generation capacity remains structurally weak," Moody's said, citing missed revenue collection targets. The government needs to secure a new financing programme with the International Monetary Fund, the ratings agency said, to help it deal with annual external debt repayments that stand at $3.5 billion on average. The government will hold another round of talks with IMF officials in September in a bid to clinch the programme, the central bank chief Kamau Thugge said last month. "A successful IMF programme could anchor investor confidence and reduce external borrowing costs," Moody's said.
News18
3 hours ago
- Politics
- News18
Opinion: India Boosts Global Role With PM Modi's Foreign Visits
Last Updated: India is seeking to transition from aid receiver to agenda setter in the Global South India's Prime Minister Narendra Modi has just wrapped up a marathon visit to five countries in the last eight days. This has been his longest foreign visit in over a decade, covering Ghana, Trinidad and Tobago, Argentina, Brazil and Namibia. In fact, as of July 2025, Modi has undertaken 90 international trips to 78 countries, including visits to the United States to attend the United Nations General Assembly since May 2014. In the first seven months of 2025, he has visited France and USA (February 10-14); Mauritius (March 11-12); Thailand and Sri Lanka (April 3-6); Saudi Arabia (April 22); Cyprus, Canada and Croatia (June 15-19) and now Ghana, Trinidad and Tobago, Argentina, Brazil and Namibia (July 2-9). These foreign trips between 2014 and 2025 have certified him as India's most widely travelled Prime Minister by far. The latest international sojourn was aimed at firmly establishing India's footprint across the Global South. Modi attended the 17th BRICS Summit in Brasilia (Brazil), multiple bilateral engagements and received four national awards (27 overall since 2014). India's focus this time was on expanding her cooperation in critical minerals, energy and digital infrastructure. What did this trip in particular achieve? First and foremost, this eight-day trip was used by India to highlight the growing and menacing tentacles of terrorism, especially state-sponsored terrorism, without naming any specific nation, though it was clear as daylight that his sight was trained on a highly militarised and economically compromised Pakistan. Modi's message was clear and consistent – the international community must consciously abstain from politicising terrorism and avoid establishing an equation between victims of terror and sponsors of terrorism. 'India's stand is clear. Zero tolerance of terrorism and zero double standards on terrorism." The second takeaway was the expansion of cooperation in critical minerals. Several agreements were inked that reflected India's keen desire to explore and secure access through bilateral mechanisms to new critical mineral technologies in Africa and Latin America. There was a message in this strategic shift from India – that it was looking beyond China, its main bilateral partner and supplier in this sector, for alternatives. India's other underlying message to Beijing was this, that it is not entirely comfortable with China's move to weaponise minerals for self-benefit. Ghana and Namibia were two countries that India approached this time for possible bilateral cooperation in Diamonds, Manganese, Lithium and Rare Earths (Ghana), Uranium, Copper and Gold (Namibia). The third takeaway from this eight-day trip was India effectively cementing its leadership role of the Global South. Modi specifically highlighted the need for reform of global institutions like the UN, WTO, and the IMF, demanding that they be more representative of the multilateral character of the world community as well as a seat for India at the 'high table" of interaction. Finding common ground with some of these five countries who have risen from the ashes so to speak after experiencing the horrors of colonialism was another takeaway, besides reaffirming a commitment to take the BRICS agenda forward in spite of the US' bulldozing threats. India is seeking to tweak the Western dominance of the international order and dialogue to make it more representative. The fifth and final takeaway was energising the Indian Diaspora, which Modi sees as a key weapon driving India's foreign policy initiatives. The Prime Minister galvanised the Diaspora through announcements like grant of overseas citizenships to up to their sixth generation. The Global South refers to a grouping of developing and emerging countries—mostly located in Asia, Africa, Latin America, and Oceania. They share similar developmental challenges and desire greater representation in global decision-making platforms. The grouping's key areas of focus are climate change, reduction of external debt burdens, ending monopolisation of strategic minerals like lithium and rare earths to enhance access to green energy tech, improve access to digital infrastructure, and reduce the AI and Fintech divide that exists between the North and South. UPCOMING DIPLOMACY Soon after returning from the five-nation tour, PM Modi is set to embark on a two-nation state visit to the United Kingdom (July 23–24) and the Maldives (July 25–26). The agenda includes deepening economic, defence, education, and technology cooperation with the UK, and reinforcing India's strategic footprint in the Indian Ocean Region through enhanced ties with the Maldives. The follow-up visit to the UK and the Maldives underscores continuity—from Atlantic outreach to consolidating relationships across the Oceanic and regional theatres. India is seeking to transition from aid receiver to agenda setter in the Global South. At the core of its outreach is strategic diplomacy, economic cooperation, and cultural leadership, besides positioning itself as a trusted partner in an increasingly multipolar world. Its outreach must not be seen as an indulgent joyride, but a well-calibrated and essential assertion of India's role as a rising power. India's global message is this – that it is no longer ready to be spoken for, that it will speak, and if necessary, act for itself and shape the narrative. Bilateral pacts in trade, energy, defence, healthcare, agriculture, digital infrastructure, minerals, green energy and space technologies signal India's altering strategic intent. Reshaping global perceptions and consolidating international support for its many initiatives gives New Delhi a unique vantage point to reflect, learn and act. view comments Location : Jammu and Kashmir, India, India First Published: July 23, 2025, 17:28 IST News opinion Opinion: India Boosts Global Role With PM Modi's Foreign Visits Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
