Latest news with #Rs2.55
Business Recorder
a day ago
- Business
- Business Recorder
KATI concerned at imposition of 18pc GST on imported solar panels
KARACHI: The President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi, has termed the Federal Budget 2025-26 disappointing, stating that it neither meets the requirements of the industrial sector nor fulfils the expectations of the general public. Junaid Naqi said that the budget remains heavily reliant on indirect taxation, particularly sales tax, which continues to increase the cost of doing business and contributes to inflation. He pointed out that the government has set an ambitious revenue collection target of Rs14.131 trillion and a non-tax revenue target of Rs5.167 trillion, both of which, he claimed, are disconnected from ground realities. Naqi further highlighted that while the government has projected GDP growth at 4.2% and inflation at 7.5%, the proposed measures to achieve these goals are inadequate and unrealistic. Expressing serious concern over the persistent exemption of the agricultural sector from the tax net, Naqi emphasized that despite contributing 26% to the national GDP, agriculture accounts for less than 1% of the total tax revenue, exposing a glaring imbalance in the fiscal framework. He noted that while the overall budget outlay stands at Rs17.6 trillion, the business community had hoped for balanced and fair policies that would ease the burden on existing taxpayers. Instead, he said, the government has once again placed the weight of fiscal adjustments on the industrial sector without offering sufficient relief to offset rising costs of production. While allocations include Rs2.55 trillion for defense and Rs1 trillion for the Public Sector Development Programme (PSDP), Naqi lamented the absence of tangible initiatives to promote industry, exports, or employment generation. The KATI President also raised concerns over the proposed 18% sales tax on solar panels and the imposition of heavy petroleum levies and a carbon tax, warning that these steps will further inflate prices and escalate the cost of doing business. While acknowledging minor adjustments such as the reduction in super tax rates and changes in income tax slabs, Naqi asserted that the overall budget fails to restore investor confidence or provide meaningful support to the business community. Calling for urgent reforms, he urged the government to reduce its dependence on indirect taxes and focus on broadening the tax base through direct measures. 'Without fundamental tax reforms, sustainable economic recovery will remain out of reach,' he said. Naqi concluded that the current budget falls short of addressing the aspirations of both Pakistan's industrial sector and its citizens. He urged the government to adopt a realistic, inclusive, and growth-oriented fiscal strategy moving forward. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Pakistan increases defence spending by over 20% after recent clashes with India
Pakistan has announced to raise its defence budget significantly by over 20% as the government allocated Rs2.55 trillion for the incoming fiscal year (FY26). The increase in budget spending comes at a time when tensions between neighbouring Pakistan and India remain high. Finance Minister Muhammad Aurangzeb announced Pakistan's federal budget 2025-26 'for a competitive economy' on Tuesday, targeting a modest 4.2% growth for the coming fiscal year, compared to 2.7% expected in the outgoing FY25. 'The country's defence is our top priority,' said Aurangzeb during his address, as he lauded the role of the country's leadership, especially the armed forces, for their role against recent clashes with India. Pakistan had allocated Rs2.12 trillion for defence in the FY 2024-25. Its defence budget was raised by 16.4% last year. Addressing the federal cabinet meeting, Prime Minister Shehbaz Sharif said that Pakistan is now in a take-off position, and all economic indicators are satisfactory. 'After defeating India in a conventional war, now it has to surpass it in the economic field as well,' the PM said. 'If there is passion and desire, nothing is impossible; everyone will have to work together day and night to move forward,' he added. Earlier, Tola Associates, a tax advisory and consultancy firm, has proposed to raise the defence budget to Rs2.8 trillion, reflecting a 32% increase as compared to the last fiscal, 'due to the war situation with the neighbouring country and the new recruitment of army personnel'. Ties between Pakistan and India nosedived after a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK) last month that New Delhi said was backed by Islamabad. Pakistan denied involvement, but intense fighting broke out when India struck what it said were 'terrorist camps' in Pakistan. They agreed on a ceasefire, which has largely held.
Business Recorder
30-04-2025
- Business
- Business Recorder
OMCs and dealers: Body reviews matter of revision in margins
ISLAMABAD: The 8th meeting of the Standing Committee on Energy (Petroleum Division) of the National Assembly was held on Tuesday in the Parliament House, Islamabad. The meeting was chaired by Syed Mustafa Mehmood, MNA. At the outset, the committee confirmed the minutes of its previous meeting held on 27th February 2025 and welcomed the Federal Minister for Energy (Petroleum Division) for his presence. The Ministry of Energy (Petroleum Division) presented a detailed report on the implementation status of the committee's previous recommendations. During the briefing, several queries were raised by the members and were addressed by the minister along with the concerned officers. A comprehensive presentation was also made on the concerns of the Pakistan Petroleum Dealers Association (PPDA). The committee also reviewed the matter of revision in margins for Oil Marketing Companies (OMCs) and dealers, in light of the ECC's decision dated 6th September 2023, based on PSO's operating cost. Representatives of the PPDA highlighted the current government-provided margins—Rs1.20 per litre on petrol and Rs2.55 per litre on diesel—stating that several operational costs are not accounted for in the current structure. The issue regarding the conversion of CNG filling stations into petrol pumps was discussed, and the minister clarified that such cases would be examined individually under the existing petroleum policy. However, he added that there would be no immediate revision in the policy. The committee decided to defer further deliberation on this matter to its next meeting. Addressing concerns regarding fuel quality, the minister pointed out challenges related to GST and LPG margins. He stated that OGRA is empowered to oversee these matters and that relevant issues would be addressed in the upcoming budget. In response to a question, the minister referred to a survey conducted by Mari Petroleum Company Limited in 2003-04 in parts of Balochistan and assured that OGRA would brief the committee in the next meeting. The OGRA chairman informed that petroleum prices are set every 15 days with ECC's approval, with 50 per cent of petroleum products being sold by PSO, and prices based on market demand and supply. Committee members questioned why petroleum prices remain the same across the country despite geographical and logistical differences. The minister assured that any corrupt practices in price determination would be investigated. It was decided that the PPDA's issues, particularly those falling under OGRA's jurisdiction, would be discussed in detail at the next meeting. The Minister advised the PPDA to submit fact-based recommendations to OGRA for further evaluation and onward submission to the Cabinet. An incident involving a fire caused by gas exploration in a housing society in Karachi was also discussed. The minister stated that a committee would be formed at the ministry level to investigate the matter. He noted that the restructuring of the mineral sector could significantly contribute to national income, and a separate committee was being formed to address systemic issues in this area. In response to a question, the minister clarified that there are no current plans to merge the Survey of Pakistan with the Geological Survey of Pakistan, but the committee directed the ministry to submit a detailed brief on the matter. Issues related to mines and minerals were also discussed at length. The committee resolved to convene a dedicated meeting to thoroughly examine these issues and develop recommendations. Additionally, the committee sought province-wise data on value addition and volume of minerals and gemstones, stressing that the matter should be discussed with provincial governments at the federal level. The committee requested a written report from the Government of Sindh on the aforementioned Karachi fire incident. On the issue of smuggling, the committee recommended digitalisation of systems to improve control and requested details of smuggled items at border areas, along with information on Iranian oil exports to other countries, to be submitted at the next meeting. The meeting was attended by members of the National Assembly including Sardar Ghulam Abbas, Anwarul Haq Chaudhary, Mian Khan Bugti, Haji Jamal Shah Kakar, Syed Naveed Qamar, Asad Alam Niazi, Salahuddin Junejo, Muhammad Moin Aamer Pirzada, Gul Asghar Khan, Muhammad Nawaz Khan, Mujahid Ali, and Shahid Ahmad. The concerned officers of the ministry and position holders of PPDA were also present. Copyright Business Recorder, 2025
