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Express Tribune
13 hours ago
- Business
- Express Tribune
Provinces demand NFC, agri tax review
The National Economic Council on Wednesday approved an enlarged national development outlay of Rs3.9 trillion, as some of the provinces have demanded reviewing the National Finance Commission and reopening the agriculture income tax issue with the International Monetary Fund. The NEC-approved the federal Public Sector Development Programme 2025-26 shows the government's political priorities to appease allies and spend more on roads. It approved reduced budgets for Pakistan's space and atomic energy programmes, health and education but increased allocations for the Sindh-specific projects and the parliamentarians' schemes. Headed by Prime Minister Shehbaz Sharif, the NEC also set the economic growth target at 4.2% and inflation at 7.5% for the next fiscal year 2025-26. The NEC is the nation's constitutional body having mandate to approve the macroeconomic and development plans. The NEC also expressed concerns over growing population and showed resolve to find a solution, as the economic growth in this fiscal year was almost equal to the population growth rate. The NEC approved the Rs1 trillion for the federal Public Sector Development Programme and Rs2.9 trillion for the provincial annual development plans. The cumulative budgets of Rs3.9 trillion negate the harsh fiscal ground realities, as the federal government even went to the extent of further reducing some critical proposed allocations to make room for more politically oriented development spending. As against its earlier plan to allocate Rs50 billion for discretionary spending on the parliamentarians schemes, the allocation has been approved at Rs70 billion, showed the NEC document. Not only that, the federal government further increased the spending on provinces' development project from three-day old allocation of Rs93.4 billion to nearly Rs106 billion. The room has been created by further reducing the spending on health and education from the level approved by the Annual Plan Coordination Committee on Monday. The Higher Education Commission's allocation is drastically reduced to Rs39.4 billion whereas the Ministry of health's budget is cut to Rs14.3 billion. To make room for political projects, the allocation for power sector projects was reduced from the earlier proposed Rs104 billion to Rs90 billion. But the water sector allocation has been increased to Rs133 billion, from earlier proposed Rs119 billion. Compared to the budget approved by the APCC on Monday, the Space & Upper Atmosphere Research Commission's (SUPARCO) budget has been reduced from Rs24.2 billion to just Rs5.4 billon while the Pakistan Atomic Energy Commission's budget is reduced from Rs4.7 billion to Rs781 million. The budget has been finalised by a committee comprising Deputy Prime Minister Ishaq Dar and PM's political Advisor Rana Sannuallah Khan. Such large allocations for the provincial projects are in breach of commitments to the IMF for reducing federal expense on provincial projects. The sources said that some of the NEC members discussed the low agriculture sector growth of mere 0.6% in this fiscal year and urged to change the economic policies, including high cost of inputs. The participants of the meeting said that Sindh asked to review the agriculture income tax and take it up with the IMF. Finance Secretary Imdad Ullah Bosal did not comment on the question whether the Ministry of Finance will take up the matter with the IMF. The four provincial governments have passed the new agriculture income tax laws but these have not yet been enforced. There is high chance that the IMF would not entertain any such request. The Khyber Pakhtunkhwa government took up the issue of delay in reopening the NFC award, as the provincial government is demanding higher share in the light of merger of the tribal districts. The prime minister assured the K-P government to convene the NFC meeting in August. However, the government has further reduced the K-P merged districts allocation from Rs70 billion to Rs65.4 billion that had been approved by the APCC on Monday. The Punjab government raised the issue of higher taxes on agriculture machinery. The NEC approved Rs2.86 trillion for the four provincial governments, with the highest spending outlay of Punjab worth Rs1.2 trillion. Khyber-Pakhtunkhwa will spend Rs417 billion. Sindh government plans to spend Rs995 billion and the Balochistan government is proposing Rs280 billion for development. The proposed development allocations by the four provinces are roughly Rs860 billion more than what the IMF has included in its plan. It means either the provinces will not be able to spend the entire allocations or the IMF cash surplus target will not be met. The NEC also reviewed the implementation of the annual plan for this fiscal and approved the economic targets for the next fiscal. It also took a review of the implementation of the PSDP for the current fiscal year, taking note of low utilization of the funds. The NEC also discussed the progress report of the CDWP & schemes approved by CDWP and ECNEC in the past one year. The NEC authorized the publication of 13th Five Year Plan 2024-29 and approved the URAAN Pakistan Implementation Framework. Exports are projected at $35.3 billion, while foreign remittances are expected to exceed $39.4 billion in the next fiscal year. Imports are projected at $65.2 billion with the current account deficit estimated at $2.1 billion for the next fiscal year. Currently, 1,071 development projects with a total cost of Rs13.4 trillion are under implementation. These projects require an additional Rs10.2 trillion to be completed, and the planning ministry estimates it would take more than a decade to finish them all. The NEC also approved to publish the Five-year economic plan 2024-29. The NEC was told that 13th Five-Year Plan has been updated as a result of stakeholders' consultations and is ready for publication the five year's plan is aimed at a balanced regional and equitable development, enhance export orientation of the economy - vibrant SMEs sector - social protection and poverty alleviation - improve the quality of human resources - moving into the knowledge economy - adaptation and mitigation strategy to combat climate change. The Prime Minister had launched 'URAAN Pakistan' on 31st December, 2024 and the NEC on Wednesday approved its implementation framework.
Business Recorder
2 days ago
- Business
- Business Recorder
Indian aggression: Gandapur felicitates nation for befitting response
PESHAWAR: Chief Minister Khyber Pakhtunkhwa, Ali Amin Khan Gandapur, while addressing a jirga in Peshawar, extended felicitations to the entire nation for a befitting response to Indian aggression and said that founding chairman PTI Imran Khan, despite being unjustly imprisoned, united the entire nation against Indian hostilities—proving himself a true leader. Expressing his gratitude to Imran Khan and his supporters, Ali Amin Gandapur said their unwavering stand was instrumental in defending Pakistan. 'We have demonstrated national unity above political differences for the sake of the country's sovereignty and integrity,' he said. The Chief Minister also called on the federal government to avoid imposing taxes on the erstwhile FATA and PATA regions, arguing that the local population is not financially capable of bearing such burdens. 'These areas have been severely affected by the war on terror and require significant investment,' he emphasized. Highlighting the sacrifices of people from merged districts, the chief minister urged the federal government to fulfill all promises made to them. He demanded immediate release of compensation funds for displaced persons from these regions and called for an end to drone strikes in Khyber Pakhtunkhwa, citing civilian casualties. He also demanded for the immediate inclusion of the merged districts' share in the National Finance Commission (NFC) award. 'We are not asking for another province's share—we're demanding our rightful due,' he said. The Chief Minister further urged the federal government to release all pending dues owed to Khyber Pakhtunkhwa, including net hydel profits and the province's full share in the tobacco cess. 'These are the rightful entitlements of our people,' he asserted. In his address, the Chief Minister urged the reinstatement of the traditional jirga system to sustainably resolve disputes in the merged districts. He also demanded Khyber Pakhtunkhwa's inclusion in peace talks with neighbouring Afghanistan, warning that excluding the province would render the negotiations incomplete. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Business
- Express Tribune
CM makes pitch for K-P role in talks with Kabul
Khyber-Pakhtunkhwa Chief Minister Ali Amin Khan Gandapur has demanded that the K-P government be made a part of peace talks with neighboring Afghanistan, warning that excluding the province would render the negotiations incomplete. Addressing a jirga in Peshawar, K-P Chief Minister Gandapur extended felicitations to the entire nation over a befitting response to Indian aggression, saying that PTI founding chairman Imran Khan, despite being unjustly imprisoned, united the entire nation against Indian hostilitiesproving himself a true leader. Expressing his gratitude to Imran Khan and his supporters, Gandapur said their unwavering stance was instrumental in defending Pakistan. "Despite political differences, we have forged national unity for the sake of the country's sovereignty and integrity," he said. The chief minister also called on the federal government to avoid imposing taxes on the erstwhile FATA and PATA regions, arguing that the local population is not financially capable of bearing such burdens. "These areas have been severely affected by the war on terror and require significant investment," he emphasized. Highlighting the sacrifices of people from merged districts, the chief minister urged the federal government to fulfill all promises made to them. He demanded immediate release of compensation money for people displaced from these regions and called for an end to drone strikes in Khyber Pakhtunkhwa, citing civilian casualties. He also demanded immediate inclusion of the merged districts' share in the National Finance Commission (NFC) award. "We are not asking for another province's share — we're demanding our rightful due," he said. The chief minister further urged the federal government to release all pending dues owed to Khyber Pakhtunkhwa, including net hydel profit and the province's full share in tobacco cess. "These are the rightful entitlements of our people," he asserted. In his address, the chief minister urged the reinstatement of the traditional jirga system to sustainably resolve disputes in the merged districts. He also demanded Khyber Pakhtunkhwa's inclusion in peace talks with neighboring Afghanistan, warning that excluding the province would render the negotiations incomplete.
Business Recorder
3 days ago
- Business
- Business Recorder
No high population growth blackmail, please
EDITORIAL: Ahsan Iqbal, the Minister for Planning Development and Special Initiatives, on the occasion of the launch of Asian Infrastructure Report 2025 by the Chinese-led Asian Infrastructure Investment Bank (AIIB) remarked on the need to revisit the major criteria for resource distribution, notably population, under the 2010 National Finance Commission award. Three extremely disturbing observations are in order. Firstly, the last NFC award was 25 years ago and this in spite of Article 160 of the constitution which stipulates that 'within six months of the commencing day and thereafter at intervals not exceeding five years, the President shall constitute a National Finance Commission consisting of the Ministers of Finance and Provincial Governments, and such persons as maybe appointed by the President after consultation with the Governors of the Provinces.' Thus while three NFC awards subsequent to the 2010 award should have been agreed and implemented all administrations representing the three national parties have been unable to reach a consensus and instead have relied on Clause 6 which states that in the event that an order has not been issued by the President because there have been no recommendations by the NFC 'the President may, by order, make such amendments or modification in the law relating to the distribution of revenues between the Federal Government and the Provincial Governments as he may deem necessary or expedient.' Secondly, the consensus on 2010 NFC award was reached after the Punjab government agreed to a percentage decrease in population as the major criteria — an agreement supported by the then Punjab Chief Minister Shehbaz Sharif for reportedly the then PPPP-led government's agreement to amend the constitution to allow for a third-time prime minister. Population component of the award was reduced to 82 percent, poverty and backwardness 10.3 percent, revenue collection or generation 5 percent and inverse population density 2.7 percent. This, in turn, accounted for Punjab's share to decline from 57.88 percent to 51.74 percent, for Sindh share to rise from 23.28 percent to 24.55 percent, Khyber Pakhtunkhwa to rise from 13.54 percent to 14.62 percent and Balochistan's share to rise from 5.3 percent to 9.09 percent. There is a need to further reduce the population component of the NFC award as correctly stated by the Planning Minister as the NFC must not incentivise population growth, which is considered a major reason behind the lack of focus of all provincial governments to reduce population growth and thereby improve the percentage benefitting from social and physical infrastructure. In fact, the opposite has happened; in order to maximize the share of resources under the NFC, the number of seats in the National Assembly and quotas in federal job allocations the population figures have been grossly exaggerated. The result is that the results of all censuses carried out post-1972 (the third census was conducted, replacing the planned 1971 census due to political circumstances) have been contested and rejected by various parts of society in various parts of the country. They have been rejecting the results of censuses as being flawed, if not entirely false. Nevertheless, one can draw a lesson or two from India where the share of population in distribution of resources was significantly reduced in the NFC; and other criteria such as distance factor, tax generation, fiscal discipline, infrastructure index, forest and ecology, etc., have been introduced in the NFC. The number of seats in the Lok Sabha (lower house of parliament) stands frozen (initially frozen by Indira Gandhi for 25 years and the freeze then extended by another 25 years by Atal Behari Vajpayee. It is due to expire within the present tenure of the incumbent government); and it is unlikely to be changed on the basis of the upcoming census. In this regard, it is important to note that a number of political parties have demanded prime minister Narendra Modi give a categorical assurance in Parliament that the freeze on the number and state-wise distribution of seats in Lok Sabha will be extended for another 30 years beyond 2026. It is therefore desirable in our own national interest as well that the weight of population within the NFC formula is reduced significantly to arrest the proclivity to overstate and grossly exaggerate the population figures at the time of the national census. Needless to say, carrying out national census and announcing NFC award every 10 years are constitutional obligations and it is matter of national shame that successive governments in the country have miserably failed in fulfilling this mandatory obligations under the supreme law of the land, the supreme law that they swear to uphold under the sacred oath that they take upon assuming office of the State. They must not ignore the fact that population growth is a huge liability. In other words, a large population base with high population growth is a ticking time bomb, to say the least. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
PM says issues facing Balochistan will be resolved
QUETTA: Prime Minister Muhammad Shehbaz Sharif Saturday said the issues faced by the people of Balochistan would be resolved amicably and funds would be made available for the development and progress of the largest province. Addressing a grand Jirga of Balochistan here, he said all provinces were like brothers and would equally share resources of the country. The federal government was spending Rs 70 billion on the solarisation project in Balochistan, he said, adding Rs 150 billion would be diverted for the building of highway N25 in Balochistan. These funds would be acquired from the amount which the government was collecting after the lowering down of prices of petroleum products in the international market. India has intensified 'terrorism campaign' inside Pakistan through proxies, says PM Shehbaz The prime minister said the government would allocate Rs 1000 billion for the Public Sector Development Programme (PSDP) this year and 25 percent or Rs 250 billion from the fund would be for projects in Balochistan. He said federal funds were the right of people of Balochistan and every penny would be spent transparently on the progress and prosperity of the province. As chief minister of Punjab, he said, he has allocated ten percent quota for the students of Balochistan in different schemes of Punjab including laptop schemes and scholarships in the foreign and provincial educational institutions. In the past, Rs two billion were allocated for a heart hospital in Balochistan, he continued. He recalled that Punjab had agreed to give part of its funds from the National Finance Commission (NFC) Award to Balochistan in view of its development needs as the province had a larger area. In today's value, the funds diverted to Balochistan amounted to Rs 160 billion, he explained. The NFC award was signed in Lahore in 2010 after three days of discussions among the national leadership including President Asif Ali Zardari, the then prime minister Syed Yousaf Raza Gilani and Nawaz Sharif, he added. He said in the tenure of Nawaz Sharif lot of development projects were undertaken in Balochistan and President Zardari initiated Aghaz-e-Haqooq-e-Balochistan. He said the elders of Balochistan decided to become part of Pakistan under the leadership of Quaid-e-Azam Muhammad Ali Jinnah. Talking about incidents of terrorism in Balochistan, he said terrorists were blood thirsty and were against the progress of Pakistan and were undertaking heinous acts at the behest of foreign elements. He said terrorists in Balochistan were foreign agents who had resorted to barbarity but they would not be tolerated by the government and armed forces of Pakistan. He assured that social and economic justice would be delivered to the people of Balochistan. Referring to the latest incidents in Sorab, he said the country could not make progress without peace. Talking about conflict with India, he said on the midnight of May 6 and 7 and May 10 India attacked Pakistan but with the grace of Allah, the armed forces of Pakistan bravely defeated the enemy, who will remember its failure forever. He thanked people of Pakistan for showing unity and standing with the Pakistan army shoulder to shoulder during the conflict. As prime minister he was witness to all the events of the short duration war, he said adding as a brave and sagacious leader Field Marshal Syed Asim Munir led Pakistan armed forces to a victory against India and made the nation proud and the success was akin to avenging the events of 1971. He said now the enemy was scared and the friendly countries were more confident after success of Pakistan. He recalled that Pakistan conducted six nuclear explosions in response to five detonations of India in 1998, adding Nawaz Sharif was leader of the nation on that momentous occasion, which fortified the defence of Pakistan. Field Marshal Chief of Army Staff Syed Asim Munir, Acting Governor Balochistan Governor Abdul Khaliq Achakzai, Chief Minister Balochistan Mir Sarfraz Bugti and high ranking military and civil officials attended the event. Prime Minister Muhammad Shehbaz Sharif Saturday stressed that the threats faced by Pakistan were no longer confined to conventional warfare and highlighted the need for preparedness across multiple domains. He was addressing officers at the Command and Staff College here. Joined by Chief of Army Staff Field Marshal Syed Asim Munir, Balochistan Chief Minister Mir Sarfraz Bugti, Federal Ministers Ahsan Iqbal and Attaullah Tarar, Balochistan Corps Commander Lt Gen Rahat Naseem Ahmed Khan, and DG ISPR Major General Ahmed Sharif Chaudhry, the Prime Minister outlined a comprehensive vision for national resilience. 'Pakistan's threats are no longer limited to traditional warfare,' said PM Sharif. 'Our military, political, and economic institutions must be equally prepared to face hybrid challenges, from border security to economic sabotage.' He paid tribute to the Pakistan Armed Forces for their valour and professionalism, citing the response to the Pulwama incident as an example of national strength. 'While India targeted innocent civilians, our Air Force responded with precision, striking seven high-value targets,' he said, adding that the incident proved Pakistan's operational readiness on land and in the air. The Prime Minister strongly criticised India's propaganda and its attempt to weaponize events like the Pulwama attack. He emphasised that Pakistan responded firmly, diplomatically and militarily. 'India tried to make water a weapon, but we have drawn a red line. Pakistan will never allow its water rights to be violated,' he added. He praised the leadership of Field Marshal Asim Munir and Air Chief Marshal Zaheer Ahmad Babar for their strategic foresight, asserting that Pakistan's armed forces and people stand united against any aggression. 'The recent tensions have only boosted the morale of our nation and forces,' he remarked. He noted that when he assumed office for 16-month tenure, the country was facing severe challenges, but none were insurmountable. 'Our focus remains on the economy, reforms, and counterterrorism,' he said. He pointed to significant achievements since the beginning of economic reforms in March 2024. 'Tax revenue has increased by 28% compared to last year. The introduction of a faceless assessment system at Karachi Port has improved transparency. Inflation has dropped from 38% to single digits. The Pakistani rupee is now stable,' he added. Shehbaz Sharif also emphasized the government's zero-tolerance policy on corruption, crediting tough decisions and anti-smuggling measures for economic stabilization. 'We are introducing modern technologies, including crypto regulation and blockchain, to align Pakistan with the global financial landscape,' he announced. He reaffirmed Pakistan's strong ties with countries like China, Saudi Arabia, Turkiye, Qatar, and the Gulf states. 'Our strategic friendships have endured every test. These nations stood by us in our most difficult times,' he said. The Prime Minister called for collective national effort and hard work to join the ranks of great nations. 'Success comes from perseverance. Together, we will transform Pakistan into a model for the world,' he declared. Copyright Business Recorder, 2025
