Latest news with #Rs2.3
Express Tribune
a day ago
- Business
- Express Tribune
Govt walks a tight rope
FDI in various sectors, including power, oil and gas exploration, financial, and petroleum refinery sectors, witnessed a 6.4-fold increase, reaching $211 million in December 2023 compared to $33 million last year. photo: afp Listen to article The government will walk a tight fiscal rope in the next fiscal year, too, as it plans to unveil the second budget on Tuesday envisaging a federal budget deficit of Rs6.2 trillion or 4.8% of size of the economy. The total size of the budget is expected to be around Rs17.6 trillion, which is 7.3% less than this year's original budget due to relatively lower allocations for the interest payments in fiscal year 2025-26, according to the Finance Ministry's budget estimates. The government sources said that the proposed budget deficit is 2% of the GDP or Rs2.3 trillion less than the original estimates of this fiscal year. The deficit may still be appearing large in absolute terms. But it is, for the first time, lower than this year's gap, both in terms of size of the economy and in absolute numbers. The tight budget envisages fiscal consolidation of 2% of GDP, as the government is planning to set the budget deficit target at 4.8% of GDP, the sources said. This will be 2% of GDP or Rs2.6 trillion lower than this fiscal year's target. Finance Minister Muhammad Aurangzeb will deliver his second budget speech on June 10. The expenditure path is known to be narrower and predicted. However, it seems that the government may again adopt the business as usual approach on the revenue front, which is unsustainable and puts the country's marginalized salaried class and corporate sector at risk of being insolvent. The fiscal consolidation is the need of the hour but it will drastically reduce the government's ability to spend due to no space left for any productive spending after making payments for the interest servicing and defense. However, whatever space is left is not prudently used and the sources said that the quality of spending becomes poorer with large allocations for provincial projects, discretionary spending on the schemes recommended by the Parliamentarians at the expense of space technology and atomic energy programmes. The sources said that the fiscal consolidation is again planned to be achieved by putting more burden on the people, directly as well as indirectly. The government is projecting gross federal revenues at record Rs19.4 trillion for next fiscal year, higher by Rs1.6 trillion. The gross revenues are based on the Federal Board of Revenue's tax target of Rs14.13 trillion and Rs5.2 trillion non-tax revenues. The non-tax income will mainly come from the Petroleum Levy, which the government wants to increases to nearly Rs100 per liter, and the profit by the State Bank of Pakistan. The sources said that like this fiscal year, the FBR may remain the weak area in the next fiscal year, too, despite the required growth to achieve the goal will be far lower than this year. The new tax collection target will become challenging from first day of next fiscal year because the FBR will not be able to achieve even the downward revised target of Rs12.3 trillion, said the sources. This will erode the base of new tax target. Prime Minister Shehbaz Sharif tried everything to put the FBR house in order but all those measures backfired. The FBR's ability to predict revenue estimates is also not up to the mark and this year the World Bank experts helped in projecting numbers, said the sources. Out of the Rs14.1 trillion FBR tax collection, the provinces will get Rs8 trillion as their shares in the federal taxes under the National Finance Commission award, the sources added. This leaves the federal government with Rs11.4 trillion net revenues for next fiscal year, which will not be sufficient to meet the interest payments and inclusive all defense spending, according to the government sources. The government will borrow Rs6.2 trillion in the next fiscal year to finance the Rs17.6 trillion total federal budget. Under the IMF programme, the four provinces are also required to save Rs1.33 trillion from their revenues as cash surplus to bring down the national budget deficit to Rs4.8 trillion or 3.7% of GDP, the sources said. This is steeper fiscal consolidation and would require all the five governments to meet all their revenue and expenditures related targets. The four provinces have indicated nearly Rs2.9 trillion for their development spending in the next fiscal year. This is Rs850 billion more than what the IMF has allowed to spend to the four provinces under the national fiscal framework. Punjab has indicated Rs1.2 trillion record spending on development, followed by Rs995 billion by Sindh.
Express Tribune
5 days ago
- Business
- Express Tribune
Key infrastructure projects face delays
Two major signal-free road infrastructure projects in Rawalpindi, worth over Rs6.5 billion, have missed their completion deadlines, causing significant inconvenience to residents. These include the Nawaz Sharif Flyover at Khawaja Corporation Chowk on Adiala Road and underpasses on Mall Road at KTM Chowk, Mall Plaza, and the pedestrian underpass at Medicine Market. While the flyover at Khawaja Corporation Chowk has been completed, carpeting and beautification work remains pending. Punjab Chief Minister Maryam Nawaz had set a deadline of May 31 for its completion, but the project remains unfinished. This project alone costs Rs2.3 billion. Similarly, the Rs4.38 billion underpasses and pedestrian underpass project on Mall Road, originally set for completion in 45 days, remains incomplete even after 100 days. As a result, access to key locations including hospitals, the Mega Medicine Market, PIA, State Life, and Cantonment offices has been disrupted. Zahid Bakhtawari, President of Anjuman Shehriyan Rawalpindi, criticised the delay, sayinag the situation has become unbearable for patients and businesses. Promises made to complete the work in 45 days have not been fulfilled. PML-N MNA from Cantt, Malik Abrar Ahmed, stated efforts are ongoing to prevent further delays. He emphasized that in high-level meetings, authorities have been directed to speed up the work. If both projects are completed within the next 15 days, a joint inauguration could be held, pending the Chief Minister's schedule. While C\&W Department officials had earlier confirmed the May 31 deadline, they are now unwilling to comment on the delay.
Business Recorder
22-05-2025
- Automotive
- Business Recorder
Honda Atlas Cars' posts Rs2.7bn profit in 2025
Honda Atlas Cars (Pakistan) Limited (HCAR) registered a profit of Rs2.7 billion for the year ended March 31, 2025, a significant increase of 16% on a year-on-year basis. HCAR's financial statements, which were made available at the Pakistan Stock Exchange (PSX) on Thursday, showed that the company's profit stood at Rs2.3 billion in the same period last year. The automaker's earnings per share (EPS) stood at Rs18.97 during the year, compared to Rs16.34 last year. A final cash dividend for the year ended March 31, 2025 at Rs8 per share i.e. 80%. The increase in profit can be attributed to an increase in sales. During the year, HCAR's sales clocked in at Rs78.06 billion, compared to Rs55.07 billion in SPLY, an increase of 42%. Honda Atlas Cars' profit-after-tax up 295% YoY in Oct-Dec While the company's cost of sales also rose to Rs71.4 billion in 2025, an increase of 41%. Consequently, the company's gross profit increased by nearly 48%, clocking in at Rs6.7 billion in 2025, as compared to a gross profit of Rs4.5 billion in SPLY. As a result, HCAR's gross margins improved to 8.5% in 2025, compared to 8.2% in the last fiscal. Meanwhile, as per HCAR's latest financial results, the automobile company witnessed a jump in its administrative expenses, which stood at Rs1.9 billion in 2025, up by 28%, as compared to Rs1.5 billion in SPLY. On the other hand, HCAR's other income registered a decline of over 56%, amounting to a meagre Rs988 million in 2025, in comparison to Rs2.25 billion in 2024. The automaker saw its finance cost lowered by 15%, standing at Rs1.04 billion in 2025, as compared to Rs1.2 billion in SPLY. The company posted a Profit before Taxation (PBT) of Rs3.27 billion in 2025, up by 19% YoY. Incorporated in Pakistan as a public limited company in 1992, HCAR commenced its commercial operations in 1994. The company was formed as a result of a joint venture between Honda Motor Co., Ltd., Japan and Atlas Group of Companies, Pakistan.
Express Tribune
14-05-2025
- Business
- Express Tribune
Multibillion-rupee road projects near completion
Construction on two key road infrastructure projects worth over Rs6.5 billion in Rawalpindi is 80 per cent complete. The projects include the Nawaz Sharif Flyover at Khawaja Corporation Chowk and the Mal Road underpasses at TM Chowk and Mall Plaza Chowk. According to officials, the completion of these projects is crucial to improving traffic flow in the city, with Punjab Chief Minister Maryam Nawaz setting a deadline of May 31 for their full completion. Efforts are underway to ensure that both projects are finished and opened to traffic by the given deadline. The Communication and Works (C\&W) Department is overseeing the construction of the Nawaz Sharif Flyover at Khawaja Corporation Chowk on Adiala Road, which is valued at Rs2.3 billion. The road infrastructure upgrade, being carried out by the FWO contractor firm under the consultancy of Nespak, has reached 80 per cent completion. Similarly, the Mal Road underpasses project, worth Rs4.39 billion, involves the construction of underpasses at TM Chowk and Mall Plaza Chowk to eliminate traffic signals, as well as the construction of an underground pedestrian walkway near the Medicine Market. Both projects are expected to ease traffic congestion in Rawalpindi, and work continues day and night to meet the May 31 deadline. Additionally, the C&W department is planning the construction of flyovers and underpasses at Kacheri Chowk, Qasim Market Chowk, and Chairing Cross Chowk, which will further streamline traffic along Mal Road and Peshawar Road. Once completed, these projects will create a signal-free route from Kacheri Chowk to the motorway junction.
Business Recorder
25-04-2025
- Business
- Business Recorder
Pindi's development projects: CM Maryam expresses satisfaction
LAHORE: Chief Minister Punjab Maryam Nawaz Sharif reached Rawalpindi city, visited various ongoing development projects and expressed happiness over the expected completion of the biggest project in the history of Rawalpindi by May 31. She visited the Rawalpindi GPO Underpass and Muhammad Nawaz Sharif Flyover Project. The Chief Minister reviewed construction quality of the project and also inspected ongoing construction activities. She responded to the enthusiasm of the workers working on the project by waving her hand. She directed to ensure construction quality in the project under any circumstance and directed to plant two trees on the dual sides of the roads. Two more underpasses will be built to make Rawalpindi's Mall Road signal-free. Two lakh vehicles will be able to easily pass through the underpass on a daily basis. The construction of the underpass will make it easier for AFIC and MH patients to cross the road. The Mall Road will be made signal-free for 26 kilometers. Muhammad Nawaz Sharif Flyover will be completed at a cost of Rs2.3 billion and the underpass project will be completed at a cost of Rs4.38 billion. The construction work of Muhammad Nawaz Sharif Flyover project has been completed by 85 percent and the construction of the underpass project has been completed by 60 percent. Secretary C&W gave a detailed briefing about the ongoing project. It was informed in the briefing that installation of piles of the overhead bridge of Muhammad Nawaz Sharif Flyover project has been completed. 56 girders of the flyover have been prepared, 32 girders have been installed on the flyover. The construction work of 7 drains of Muhammad Nawaz Sharif Flyover is ongoing and boundary wall of the flyover has also been completed. The Chief Minister also reviewed construction activities of the underpass at Mall Road GPO Chowk. The construction of 2093 piles and girders of the underpass has been completed. A special path for pedestrians has also been included in the project. Construction work is underway on 56 development projects in Rawalpindi Division. The completion of Muhammad Nawaz Sharif Flyover will enable citizens to have direct access to the motorway and Rawalpindi Ring Road. 79,000 vehicles will benefit after the completion of Muhammad Nawaz Sharif Flyover. Member of National Assembly Ms Tahira Aurangzeb, Senior Minister Marriyum Aurangzeb, Chief Secretary Zahid Zaman Akhtar and other senior officials were also present. Copyright Business Recorder, 2025
