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Business Recorder
2 days ago
- Business
- Business Recorder
Balancing the books and the battlefield: Pakistan's fiscal strategy for FY2025-26
While public spending contracts, the Public Sector Development Programme (PSDP) remains protected approaching Rs 1.15 trillion through targeted public-private partnerships. Of this, Rs 253 billion is allocated to energy infrastructure, Rs 79 billion to transport and highways, and Rs 206 billion to vital water conservation and irrigation initiatives. Mega-hydropower projects like Dasu, Mohmand, Tarbela-V, and Suki Kinari are prioritized, alongside upgrades to the national transmission grid. These investments aim to reduce circular debt, enhance industrial productivity, and fortify Pakistan's resilience against climate-related shocks, an increasingly pressing national concern. A 5 billion rupees 'Kisan Package,' along with duty waivers on seeds and tax concessions for farm equipment, is expected to stimulate a 4.5 percent growth in agriculture. The support comes at a critical time as Pakistan faces recurring challenges of food inflation and climate-induced crop disruptions. Education receives over Rs 100 billion, with focused investments in federal universities, vocational training, and digital literacy. Meanwhile, healthcare spending approaches Rs 80 billion, earmarked for maternal and child health, expanded immunization programs, and construction of new hospitals in Islamabad and underserved region. Balancing the books and the battlefield: Pakistan's fiscal strategy for FY2025–26—I Civil servants are granted a 7.5–10 percent salary increase, while pension reforms shift towards a contributory model—an essential measure to contain the growing fiscal burden exceeding Rs 1 trillion annually. The salaried class—long burdened by inflation and stagnant wage growth—receives modest but meaningful relief in this year's budget. The government has revised tax slabs for salaried individuals, marginally increasing the income threshold for taxation to reflect inflationary pressures. While the relief may not be transformational, it offers breathing space to middle-income earners who have borne the brunt of indirect taxes and fuel hikes in recent years. Moreover, the budget refrains from imposing any new taxes on salaried income brackets, providing a measure of stability amidst broader tax reforms aimed at widening the net and reducing leakages in the informal sector. Muhammad Sheroz Khan Lodhi, Karachi Copyright Business Recorder, 2025
Business Recorder
28-06-2025
- Business
- Business Recorder
Lyari Expressway-IV
Moving forward: The Lyari Expressway situation presents an opportunity to modernize Pakistan's transportation infrastructure in line with contemporary business requirements. Digital toll collection represents a logical first step toward creating more efficient, user-friendly systems that serve both revenue collection needs and commuter convenience. Rather than viewing toll increases and service improvements as separate issues, integrated planning could address both concerns simultaneously. Modern toll collection systems typically pay for themselves through operational efficiencies while providing better service to users. Karachi's business community deserves transportation infrastructure that facilitates rather than hinders economic activity. The technology exists, proven models are available, and the economic justification is clear. What remains is the institutional will to implement solutions that serve 21st-century transportation needs. The question facing policymakers is whether Pakistan's infrastructure development will embrace proven technologies that enhance efficiency and user satisfaction, or continue with outdated systems that frustrate users while failing to maximize revenue potential. The Lyari Expressway could serve as a model for modernization - if authorities choose progress over status quo.—Concluded Farooq Mustafa Chaudhry Karachi Copyright Business Recorder, 2025
Business Recorder
26-06-2025
- Automotive
- Business Recorder
Lyari Expressway-II
Digital solutions: Pakistan already possesses successful digital toll collection infrastructure. The Frontier Works Organization's M-Tag system on major highways demonstrates that automated toll collection is not only feasible but operationally superior. The technology reduces processing time, minimizes human error, improves revenue collection accuracy, and provides valuable traffic data for infrastructure planning. International best practices further support digital transformation. Electronic toll collection systems worldwide have demonstrated reduced operational costs, improved traffic flow, and enhanced user satisfaction. Countries with similar economic profiles have successfully implemented such systems, suggesting that technological barriers are minimal. The business case for digital implementation becomes even stronger when considering revenue optimization. Automated systems reduce collection costs, minimize revenue leakage, and provide real-time financial monitoring capabilities that manual systems cannot match. Infrastructure maintenance challenges: While toll increases may be justified by rising maintenance costs, current service delivery raises questions about resource allocation effectiveness. Lyari Expressway-I Commuters report persistent issues with road cleaning, street lighting, and safety infrastructure maintenance. Most critically, safety barriers along elevated sections have been compromised, creating potential liability issues for the authority. The expressway's elevated bridge design requires particular attention to safety protocols. Missing or damaged barriers pose significant risks, especially given the 50-100 feet height differential above water channels. Addressing these safety concerns should be integral to any toll adjustment strategy. From a business continuity perspective, reliable infrastructure reduces transportation risks and associated insurance costs. Companies operating vehicle fleets particularly benefit from well-maintained highways with proper safety features. Farooq Mustafa Chaudhry Karachi Copyright Business Recorder, 2025
