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First Post
6 days ago
- Business
- First Post
What developed India's defence budget may look like
India's defence budget may rise nearly fivefold to Rs 31.7 trillion by 2047, says a report by CII and KPMG. The country aims for self-reliance by 2032 and top-five exporter status by 2038. Challenges include budget limits, import reliance, and skill gaps. read more India's defence budget is projected to grow significantly over the next two decades. According to a recently released report by the Confederation of Indian Industry (CII) and KPMG India, the budget could rise nearly fivefold to Rs 31.7 trillion (lakh crore) by 2047, up from Rs 6.81 trillion in 2025-26. India aims to enhance self-reliance in defence production by 2032, become a top-five global exporter by 2038, and lead in cutting-edge defence technologies by 2045. However, challenges remain, including budgetary constraints, regulatory hurdles, dependence on imports for critical technologies, and a shortage of skilled manpower. STORY CONTINUES BELOW THIS AD The vision for India's defence industrial sector in a developed India by 2047 is ambitious, aiming for self-reliance, becoming a major exporter, and achieving global leadership in critical niche technologies. It has been outlined in the CII-KPMG India report, titled 'Atmanirbhar, Agrani, and Atulya Bharat 2047'. The percentage of India's total GDP spent on defence is also expected to increase significantly. The report projects that the percentage of total GDP spent on defence will rise from 2 per cent to 4-5 per cent by 2047. This indicates a greater emphasis on defence expenditure relative to the overall size of the economy. Beyond the overall budget, the vision for 2047 includes projections for other key areas of the defence sector: Defence production is anticipated to experience substantial growth, reaching Rs 8.8 lakh crores by 2047, a notable increase from Rs1.6 lakh crores in 2024-25. The document also mentions aspirations to achieve Rs 3 lakh crore in defence production by 2029. Defence exports are projected to see a dramatic rise, reaching Rs 2.8 lakh crores in 2047. This is a significant leap from Rs 30,000 crores in 2024-25, reflecting the ambition to become a major exporter. The capital expenditure of the budget is expected to increase from 27 per cent to 40 per cent by 2047. This suggests a greater focus on investments in modernising the armed forces and developing indigenous military technologies. STORY CONTINUES BELOW THIS AD Total R&D spend is projected to increase from 4 per cent to 8-10 per cent by 2047. This aligns with the strategic vector of achieving global leadership in critical niche technologies and the need for increased investment in defence R&D. The document notes that leading nations spend 10-15 per cent of their defence expenditures on R&D. These projected milestones are linked to the achievement of key strategic vectors outlined in the vision. These are like conditions to be met for achieving the 2047 goals: Achieve enhanced self-reliance in defence capabilities by 2032: This involves reducing dependence on foreign suppliers and fostering indigenous development through R&D and manufacturing. Become a major exporter by 2038: The aim is to be among the top five global exporters of defence equipment and technology through expanding international partnerships and promoting Indian products. Achieve global leadership in critical niche technologies by 2045: This focuses on pioneering advancements in cutting-edge technologies like AI, quantum computing, and cyber defence through collaboration and substantial R&D investments. Achieving this transformative vision requires collaborative efforts from various stakeholders, including government bodies, the armed forces, academic institutions, industry leaders, and global partners. The document emphasises the need to address critical gaps in areas such as R&D, talent development, production capabilities, regulatory frameworks, partnerships, and infrastructure development to realise these goals. The projected defence budget and related milestones for 2047 reflect a strong commitment to transforming India's defence sector into a self-reliant, globally competitive powerhouse.
Business Recorder
21-05-2025
- Politics
- Business Recorder
Use of ministry's building: Senate panel briefed about non-payment of rent by NAB
ISLAMABAD: The Senate Committee on Housing and Works was briefed on Tuesday about the non-payment of rent since March 2021 by the National Accountability Bureau (NAB) for the use of a building of the Ministry of Housing and Works in Federal Lodges, Wafaqi Colony, Dhana Singh Wala, Lahore. It was revealed that a total of Rs480 million outstanding has not yet been paid by the NAB to the ministry, and the building has still not been vacated. It was further informed that the decision on the matter is pending with the Prime Minister's Office. The committee found that no agreement had been signed between the two departments. The chairman expressed serious displeasure over the negligence of the Ministry of Housing and Works. Senator Saifullah Abro urged departments to discourage such practices and to maintain clear documentation when signing agreements. The chairman directed both departments to settle the matter within one month, warning that if they fail to implement the committee's decision, the officers involved in the negligence will be summoned and punished. The meeting of the Senate Standing Committee on Housing and Works, chaired by Senator Nasir Mehmood, convened Tuesday to identify the reasons for delays in CDA and FGEHA projects, and the unauthorised utilisation of government accommodations by other departments without approval or payment of rent. The chairman of the committee commended the input of all committee members regarding the vacation of illegally possessed accommodations of the Ministry of Housing and Works in Wafaqi Colony, Lahore, by the Punjab Police. He informed that the Punjab Police had illegally occupied the said accommodations since 1990 and had never paid a single penny in lieu of using them. Punjab Police submitted the compliance report over the directions passed by the committee and upon the directions of the committee, the Punjab Police paid Rs1.6 million in rent, up to the year 2024 and assured the committee that the remaining rent would be paid in the upcoming financial year. While briefing on the progress of the construction of Islamabad Jail, the chairman CDA informed that the project was handed over by PWD to CDA with a revised cost of Rs7.4 billion on 26-06-2024. In Phase I, the construction of the Admin Block and boundary wall has been completed up to 98 percent, and roads and infrastructure up to 75 percent. He added that delays in funding from the Ministry of Planning and Development caused the project's delay. The committee expressed concern over the delay in fund disbursement by the Ministry of Finance and other concerned authorities and directed that the ministries of Planning and Development and Finance be summoned to brief the committee on the delay in releasing funds to the Ministry of Interior for CDA projects. The chairman, upon the request of the chairman CDA, recommended for hiring the human resources required to operate the jail. On the issue of malfunctioning of lifts in the Shaheed-e-Millat Building, the chairman CDA stated that only one out of five lifts was operational. Another lift had been repaired, but three were still not working. However, CDA has urgently issued a tender notice of Rs120 million for the repair of the three lifts. The Committee was informed that in the Shaheed-e-Millat Building and other government offices, some lifts are specifically reserved for VIPs/senior officers, and public or government employees are not allowed to use them. The committee took serious notice of this VIP culture in government buildings and directed CDA to eliminate such practices and ensure all lifts are accessible to the general public. The joint secretary, Ministry of Housing and Works, briefed the committee on the seniority list for the allotment of government accommodations to federal employees. He informed the committee that the ministry has a backlog of 26,000 applications, while there are only 17,000 houses available in Islamabad. The committee found the briefing insufficient and directed the ministry to provide a list of illegal allotments and the names of officers involved in such unlawful practices. The committee also ordered the discontinuation of all functions of the Restoration Committee and directed the ministry to submit a report at the next committee meeting. The committee also noted that FGEHA is not awarding tenders uniformly to firms, is not seriously pursuing its projects, and has failed to deliver completed projects to end users. Senator Saifullah Abro criticized the rising costs of FGEHA projects caused by delays on their part, with the burden passed on to the end users. The committee directed FGEHA to submit a list of all ongoing projects, including complete details and associated costs. The meeting was attended by senators, Bilal Ahmed Khan, Saifullah Abro, Husna Bano, Khalida Ateeb, Saifullah Sarwar Khan Nyazee, and HidayatUllah Khan. Copyright Business Recorder, 2025
Business Recorder
24-04-2025
- Business
- Business Recorder
‘Rs1.6trn to be saved': NEPRA says to discontinue dollar-based indexations for four power plants
The National Electric Power Regulatory Authority (NEPRA) has decided to discontinue the dollar-based indexations for four power plants, Business Recorder learnt on Thursday. The plants include Haveli Bahadur Shah, Balloki, Northern Power Generation Company Limited (NPGCL), and Central Power Generation Co. Ltd (CPGCL) power plants. These prudent measures will result in a projected saving of Rs1.6 trillion over the life of the projects, including Rs22 billion in the current financial year alone The decision was taken in a public hearing held on Thursday at the headquarters in Islamabad, NEPRA said in a press release. 'In a landmark move, NEPRA has decided to discontinue dollar-based indexations for these plants, transitioning instead to rupee-based indexations fixed for the entire useful life of the power projects. Renewable energy push: Nepra may approve tariff of KE's 2 PV solar projects 'This strategic revision aims to curb foreign exchange exposure and reduce tariff volatility for consumers,' the press release read. 'Further reforms include capping the indexation for Operations & Maintenance (O&M) costs to 70% of rupee devaluation, down from the previous 100%. Local O&M expenses will now be indexed to either 5% or the 12-month average of the National Consumer Price Index (NCPI), whichever is lower.' NEPRA also announced to rationalise the return on equity (ROE) structure. 'Plants will now receive 35% of the ROE as fixed, with the remaining 65% linked directly to the actual operation of the plant — a significant departure from the previous 100% guaranteed ROE model. 'These prudent measures will result in a projected saving of Rs1.6 trillion over the life of the projects, including Rs22 billion in the current financial year alone,' it said.
Express Tribune
16-04-2025
- Business
- Express Tribune
PSX ends two-day rally on profit-taking
Listen to article The Pakistan Stock Exchange (PSX) ended lower on Wednesday, snapping a two-day winning streak, as the benchmark KSE-100 index fell around 750 points on the back of profit-taking at higher levels. Despite the early momentum that pushed the index above 117,424, late-session selling, particularly in large-cap exploration and production (E&P) stocks, reversed gains. The market also failed to recover the "Monday Tariff Gap," signalling a bearish near-term bias. Among active stocks on the index, 25 advanced while 71 declined. UBL (+0.87%) stood out, reporting a 125% year-on-year (YoY) jump in 1QCY25 earnings per share (EPS) to Rs29.34 along with a dividend of Rs11 and a two-for-one stock split. "Stocks closed sharply lower in the earnings season amid 3.5% contraction in large-scale manufacturing (LSM) growth for February 2025 and investor fears over the outcome of US-China tariff war," said Ahsan Mehanti of Arif Habib Corporation. "Rupee instability and the dismal data of cement sales for March played the role of catalysts in bearish close at the PSX," he added. At the end of trading, the benchmark KSE-100 index posted a decline of 755.40 points, or 0.65%, and settled at 116,020.11. Arif Habib Limited (AHL), in its report, wrote that the market failed to recover the "Monday Tariff Gap" and witnessed a downside displacement, reflecting a bearish near-term bias. Key gainers included UBL (+0.87%), Engro Fertilisers (+1.28%) and MCB Bank (+0.94%) while Mari Petroleum (-2.51%), Pakistan Petroleum (-1.75%) and PSO (-2.43%) were the major drags on the index, it said. UBL reported strong 1QCY25 results with EPS of Rs29.34 (+125% YoY) and a dividend per share of Rs11. It also announced a two-for-one stock split. The performance was driven by a 200% YoY rise in net interest income and a Rs1.6 billion provisioning reversal. Meanwhile, AHL said, Pakistan planned to boost imports of cotton and soybean from the US in an effort to reduce its trade surplus and avoid potential US tariffs. "Technicals show a downside move from the key gap zone (117.6k118.6k), with the high-on-day at 117.4k, reinforcing the bearish outlook." Topline Securities reported that the bourse had a hot and cold session, which reflected a mix of optimism and caution among investors. The market opened on a strong footing, gaining 648 points in early trade. However, the momentum fizzled out in the second half as profit-taking took centre stage, it said. The index slipped to the intra-day low of 999 points and closed at 116,020, down 755 points. The volatility could be largely attributed to the ongoing trade tensions between the United States and China, which reignited concerns about global economic stability and impacted investor sentiment, Topline added. JS Global analyst Muhammad Hasan Ather said that the KSE-100 index snapped the two-day winning streak to close lower at 116,020 (-0.65%). Stocks carried the momentum in early trade to test levels above 117,424 on the benchmark index, however, late selling wiped out the gains, eventually dragging the market into the red, mainly led by large-cap E&P stocks. Bank and cement stocks kept the excitement going as investors rode the market. With external accounts strengthening and a robust liquidity, the momentum was expected to remain strong, especially in banking and export-driven sectors, he added. Overall trading volume was recorded at 481.8 million shares compared with the previous session's tally of 479.5 million. The value of shares traded during the day was Rs38.5 billion. Shares of 451 companies were traded in the ready market. Of these, 140 stocks closed higher, 260 declined and 51 remained unchanged. Cnergyico PK led the volume chart with 35.6 million shares, losing Rs0.02 to close at Rs8.51. It was followed by The Bank of Punjab with 25.5 million shares, declining Rs0.06 to close at Rs11.11 and Fauji Foods with 25.3 million shares, gaining Rs0.10 to close at Rs15.91. During the day, foreign investors bought shares worth Rs222 million, according to the NCCPL.
Express Tribune
15-04-2025
- Business
- Express Tribune
Industry backs early approval of solar projects
Listen to article Stakeholders from the industry and the government have voiced strong support for the early approval of centralised solar projects while citing their competitive tariffs and potential to reduce national electricity costs and subsidies. At a public hearing convened by the National Electric Power Regulatory Authority (Nepra) on K-Electric's (KE) auction evaluation reports for its 120-megawatt and 150MW solar projects in Deh Halkani and Deh Metha Ghar, respectively – both located in Sindh – the stakeholders shared their views on the proposed tariffs and project execution. The Request for Proposals (RFP) for KE's 640MW renewable energy projects had been floated early in 2024. In December 2024, Nepra conducted hearings on the power utility's 150MW solar projects in Winder and Bela (Balochistan), followed by hearings in February for its 220MW hybrid project in Dhabeji. Company officials highlighted that they had assessed the reduction in KE's generation cost through the addition of 120MW and 150MW projects and the expected displacement of power generation based on expensive fuel. It was ascertained that annual savings would be Rs3,477 million while aggregate savings over 25 years would go up to Rs86,937 million. These projects will also help realise foreign currency savings of $765 million in the entire time frame. KE officials emphasised that the bidding process had been carried out transparently and in accordance with the regulatory guidelines. They mentioned that the inclusion of both physical and electronic submissions pointed out the company's dedication to fairness and openness throughout the process. The officials stressed that the bidding process, which yielded a tariff bid from Kapco, followed Nepra's guidelines and was conducted transparently, including advertisements in the international and local newspapers. Nepra voiced concern over the justification of accepting a single bid and asked why a second round was not initiated. KE responded that procedural delays impacted feasibility timelines and may have deterred other bidders. KE said that the decision was based on comparative benchmarking with similar projects and the urgency of delivering low-cost energy to consumers. Nepra also discussed the prudence and assumptions underpinning the business plan, particularly regarding the debt-equity structure and fuel displacement figures. KE officials responded that all the standard prudency checks had been observed, with estimated annual fuel savings of Rs1.6 billion and Rs1.8 billion from these projects, alongside potential annual foreign exchange savings of over $30 million. They added that across KE's full portfolio of 640MW of renewable energy projects, expected savings could reach up to Rs12 billion per annum. The proposed tariff is levelised – not cost-plus – and was defended as competitive and economically justified under the current market conditions. KE reiterated that the associated transmission infrastructure had already been assessed with support from the World Bank and necessary NOCs were secured. The proposed tariff structure was lauded, with hearing participant Rehan Javed describing it as very good and advantageous for both consumers and the government. He emphasised the affordability of the tariff and stressed the need for expediting approvals pertaining to the right of way and transmission infrastructure. It was suggested that Hesco and Sepco should also be involved in future planning to encourage industrial growth in the south and reduce transportation costs. Another participant requested Nepra to share the timeline for issuing a decision on KE's renewable energy projects so that the benefit could be passed on to consumers; to which Nepra member assured that it would be announced within two months. Transaction Adviser to the Government of Sindh Irfan Yousuf expressed confidence in the competitiveness of the process and emphasised that it was conducted transparently and provided all bidders with an equal opportunity to participate.
