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Express Tribune
4 days ago
- Business
- Express Tribune
Govt approves Rs1tr uplift budget
The government on Monday approved a Rs1 trillion federal development budget and set the economic growth target at 4.2% for the next fiscal year, as Planning Minister Ahsan Iqbal said that the development budget cuts could compromise economic growth and delay strategic projects. The Annual Plan Coordination Committee (APCC) approved a record Rs4.1 trillion national development outlay, primarily backed by a Rs2.8 trillion financing envelope from the four provinces. Despite limited resources, the Sindh government secured Rs86 billion from the federal Public Sector Development Programme (PSDP), leveraging its alliance with the ruling coalition. "The Pakistan Peoples Party took advantage of being an ally of the government that is dependent on its vote for the budget," said a cabinet minister. Planning Minister Ahsan Iqbal, speaking after chairing the APCC meeting, said the Rs1 trillion PSDP includes Rs120 billion earmarked for the N-25 Quetta-Chaman-Karachi expressway. He confirmed that the committee had also approved a 4.2% growth target and a 7.5% inflation target for the fiscal year 2025-26. These recommendations will now be submitted to the National Economic Council for final approval, said Iqbal. He identified top-priority projects for the upcoming year, including the Diamer Basha Dam, the Karakoram Highway, the Hyderabad-Sukkur Motorway, and the N-25 Expressway from Karachi to Quetta. However, he expressed concern that the remaining Rs880 billionafter accounting for the expresswaywould be inadequate, potentially compromising future economic growth. He added that enhancing the development budget would be impossible without a significant increase in tax revenues. "The water sector is our priority but due to limited resources and with current allocation, it will take 20 years to complete the Diamer Basha dam project," said Iqbal. He maintained, however, that the government would strive to allocate maximum resources to ensure its completion within the next three to four years. Ironically, despite increasing threats from India over water security, the federal water sector allocation has been slashed by 45%or Rs119 billionbringing it down to Rs140 billion for FY2025-26. The planning minister reiterated that the commodity-producing sectors are expected to grow by 4.4%, led by a 4.5% recovery in agriculture and 3.5% growth in large-scale manufacturing. Exports are projected at $35 billion, while foreign remittances are expected to exceed $39 billion. "I am thankful to overseas Pakistanis who, despite calls to the contrary, sent $10 billion in additional remittances over the past two years," he added. The Rs1 trillion federal PSDP was finalised by a committee formed by Prime Minister Shehbaz Sharif. According to the APCC working paper, this year's development outlay is Rs300 billionor 8%higher than the previous year's budget. The four provincial governments are set to increase development spending by 28% from their own resources – enabled by substantial revenues under the 2010 National Finance Commission (NFC) award. Despite the record outlay, the Rs1 trillion federal PSDP is actually Rs400 billion lower than the originally approved budget for the current fiscal year. To fund this, the federal government plans to borrow Rs270 billion externally. The four governments plan to spend Rs2.8 trillion, higher by Rs609 billion or 28% over this year's original budget. Provincial governments will borrow Rs802 billion, while state-owned companies will spend another Rs288 billion outside the federal budget. Punjab leads provincial spending with a proposed Rs1.19 trillion allocation41% higher than last year. Khyber-Pakhtunkhwa (K-P) follows with Rs440 billion, reflecting a 63% increase. Sindh will spend Rs887 billion, up 7%, and Balochistan plans to spend Rs280 billion, marking an increase of Rs32 billion. KP's Finance Advisor, Muzzammil Aslam, criticised the federal government for allocating disproportionately less funding to his province compared to Sindh. "Only Rs3 billion were allocated to K-P, while Sindh received Rs47 billion. Punjab got Rs15 billion," he said. In response, Iqbal clarified that Rs70 billion has been allocated for K-P's merged districts and that the federal government is cutting back on spending for projects that fall under provincial jurisdiction. The APCC decided not to include any new provincial-nature projects in the PSDP due to fiscal limitations and imposed a moratorium on the approval of projects costing up to Rs1 billion until the International Monetary Fund (IMF) programme concludes. Despite these constraints, 30-40% of PSDP funds are still being directed to provincial-nature projects, which the planning ministry said has significantly hampered progress on large-scale national initiatives. In contrast, funding for the National Highway Authority (NHA) has increased by Rs49 billion, or 27%, to Rs229 billion. However, to accommodate the political priorities of coalition partners, the government has proposed sharp reductions in water and power sector budgets. The power sector's funding is down 41%or Rs72 billionto Rs104 billion. The federal education ministry's budget is reduced by 27% to Rs20 billion, while the Higher Education Commission will face a 32% cut, reducing its budget to Rs45 billion. Still, the government has retained Rs50 billion for parliamentarians' schemes under the Sustainable Development Goals Achievement Programme. 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. Iqbal stated that the ministry has identified 183 slow-moving or problematic projectsmostly under the DDWPthat should be capped or closed by June 2025. "By capping or closing these projects, around Rs1 trillion could be saved, freeing up Rs100 billion immediately for fast-moving projects," he said.
Time of India
30-05-2025
- Time of India
MCOCA against dacoits who targeted windmill site in Beed
Chhatrapati Sambhajinagar: Beed district police have invoked the Maharashtra Control of Organised Crime Act (MCOCA) against a gang of dacoits involved in a high-profile theft on April 7 when they looted equipment worth ₹12.9 lakh from Avada company's wind turbine installation site at Vida village in Kej taluka. Tired of too many ads? go ad free now The site's watchman, Akash Bhaskar Jadhav (26), and his colleague, Abhijit Dundhav, filed a complaint in this regard. Jadhav said the incident occurred on April 7. Around 11.45pm, 14 unidentified people arrived at the location. When the complainants confronted them, four of them assaulted the duo with wooden sticks and tied them up. The remaining 10 climbed up a ladder into the wind turbine's structure and stole key components — including a rotor cable (Rs2 lakh), starter cable (Rs8.1 lakh) and earthing cable (Rs2.8 lakh) — together worth Rs12.9 lakh. An FIR was filed under IPC section 310 (2) at Kej police station and a detailed investigation launched. On April 14, the Kej police and Beed's local crime branch teams arrested four of the accused — Baban Sardar Shinde (40) of Nandurghat, Dhanaji Ravji Kale (23) of Terkheda in Dharashiv, Mohan Hari Kale (30) and Lalasahab Sakharam Pawar (26) of Dasmegaon. Six other members of the gang have been identified and are absconding. Police recovered stolen property — including copper wire and a four-wheeler — worth Rs9 lakh from the arrested men. Beed superintendent of police Navneet Kanwat said, "Investigations revealed that the gang has carried out 11 serious crimes in Beed and Dharashiv districts, including armed robberies, burglaries and grievous assaults within Kej, Neknur, Dhoki and Vashi police station limits." Kej police inspector Vaibhav Patil prepared a proposal to invoke MCOCA based on the criminal history and organised nature of the gang. The proposal was submitted to Kanwat on May 13 and forwarded to special IG Virendra Mishra at Chhatrapati Sambhajinagar, who granted the sanction on May 29. "Subsequently, MCOCA sections 3 (1) (ii), 3 (2) and 3 (4) were invoked. The case has been transferred to assistant SP Kamlesh Meena of Kej for further investigation," said Kanwat.
Business Recorder
24-05-2025
- Business
- Business Recorder
Pakistan budget 2025-26: Rs2.8 trillion defence budget proposed citing ‘war-like situation' with India
With Pakistan scheduled to unveil its federal government budget for fiscal year 2025-26, 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, owing to a 'war-like situation' with neighbouring India. The tax advisory firm gave the proposal in its report 'Budget 2025-26 a rare catalyst for course correction', released on Saturday. 'The budgeted defence expenditure stood at Rs2,122 billion for FY25 while the actual expenditure till March 2025 was Rs1,424 billion. [However], due to the ongoing war situation with the neighbouring country, defence spending may increase by up to 50% in the Q4FY25,' read the report. The firms noted that in the previous three years, defence expenditure in the last quarter accounted for 36% of the annual total defence expenditure made throughout the fiscal year. Pakistan budget 2025-26: expenditure likely to fall by massive Rs2 trillion, says report 'Given the current regional tensions and the need to ensure Pakistan's defence preparedness, we estimate total defense spending to reach Rs2.4 trillion by June 2025.' Moreover, it also proposed to enhance the defence budget to Rs2.8 trillion in FY26, reflecting a 32% increase when compared with the outgoing FY's budget, 'due to the war situation with the neighbouring country and the new recruitment of army personnel'. In its report, Tola said that the upcoming budget serves as a great opportunity for course correction. 'It is a rare catalyst to realign the direction of our economy.' It said that the upcoming budget theme should focus on creating a balance between stability and economic growth. 'Therefore, economic and fiscal reforms should be framed in a manner that puts the economy on a path of steady growth.' Tola estimate the budget expenditure for FY26 to be around Rs17.2 trillion, lower than the Rs18.9 trillion budgeted by the government in FY25. The decline in expenditure comes amid an expected reduction in markup payments, which are likely to reduce to Rs7.5 trillion in FY26, compared to Rs9.8 trillion originally budgeted for FY25. IMF, govt to continue FY26 budget discussions 'over the coming days' The tax advisory estimated the federal development budget (PSDP/public sector development programme) at Rs950 billion for FY26, far lower than the Rs1.4 trillion budgeted in FY25. The report estimated the FBR revenue collection at Rs13.5 trillion for FY26. 'As per our estimates, if the FBR collects around 11.9 trillion in FY25, given our inflation estimates at 10.0% and estimated GDP growth at 3% in the upcoming FY26, then the FBR might collect only Rs13.5 trillion worth of tax revenue.
Express Tribune
24-03-2025
- Business
- Express Tribune
IPP deals to result in thin tariff cut
The government has estimated power tariff reduction of only Rs0.50 per unit following revision in agreements with seven independent power producers (IPPs). However, officials of the Power Division claimed that total savings would be Rs920 billion over the entire life of the private-sector IPPs. The savings comprise capacity payments to the IPPs, but the amount is very low when compared with the annual capacity charges of Rs2.5 trillion to Rs2.8 trillion paid to the IPPs. At a public hearing held on Monday to review the revised tariff, the National Electric Power Regulatory Authority (Nepra) was informed that consumers would enjoy a relief of Rs0.50 per unit following revision in agreements with seven IPPs. The government has signed revised agreements with the seven IPPs, which included Nishat Power, Nishat Chunian Power, Saif Power, Sapphire Electric, Engro Power, Narowal Energy and Liberty Power Tech. During the hearing, a question was asked as to whether the IPPs were forced to revise their tariff agreements. Power Division officials dismissed such allegations, saying that the seven IPPs had voluntarily agreed to revise agreements without any pressure. They revealed that the IPPs like Orient Power did not agree; therefore they were not part of the petition pertaining to the revised electricity tariff. However, they said that the government was locked in talks with all those IPPs, which were reluctant to revise agreements, in a bid to reach a mutually agreed deal. So far, the government has signed agreements with 29 IPPs, which have agreed to revise power tariffs. Regarding the impact on consumers, government officials said that the tariff would be reduced up to Rs0.50 per unit for seven IPPs. They elaborated that the reduction in tariff was related to the electricity sales volume. If there are low sales, this impact will be wiped out and in case of increased sales, there will be a higher reduction. Interveners asked questions about the fixing of furnace oil price at Rs165,000 per ton. They opposed the fixing of furnace oil price, saying that there was no consumption of furnace oil in Pakistan, which was why refineries had exported one million tons of oil. However, the government officials said that any reduction in the price of furnace oil would be passed on to consumers. Price fluctuations have been linked with the Karachi Inter-bank Offered Rate (Kibor), which was earlier 4.5%, but now it has come down to Kibor plus 1%. The interveners also questioned the potential of passing on tariff relief to the consumers. They said that there were reports that the International Monetary Fund (IMF) had refused to allow the government to pass on the relief to the consumers following revision in agreements with the IPPs. Seven power companies have waived the late payment surcharge worth Rs11.19 billion. Nishat Power has waived Rs1.77 billion, Nishat Chunian Power Rs1.84 billion, Saif Power Rs1.6 billion, Sapphire Electric Rs1.39 billion, Engro Power Rs1.7 billion, Narowal Energy Rs1.5 billion and Liberty Power Tech Rs1.35 billion. These IPPs were facing action due to excessive savings, prompting Nepra to issue notices to them, but they were challenged in court. Now, a settlement has been reached and Nepra will withdraw the notices. The government will recover the previous excess profits up to 2023 from these IPPs. According to an application submitted to Nepra, the operation and maintenance components of Nishat Chunian Power and Liberty Power Tech shall be revised as per the amendment agreement. For the remaining IPPs, the NEP-approved operation and maintenance costs for the quarter ended September 30, 2024 shall continue. Indexation shall be lower than 5% per annum or the average NCPI for the preceding 12 months. The indexation shall follow the existing mechanism, provided that the PKR/USD depreciation shall be allowed only up to 70% of the actual depreciation per annum. As many as 100% appreciation shall be passed on to the consumers. Regarding, operation and maintenance components for foreign cost of working capital, there will be seven-day inventory at 100% load factor (residual fuel oil – RFO) and 15-day receivables at 15% load factor (gas). RFO price has been set at Rs165,000 per ton, excluding sales tax. Sales tax, currently included in the existing CWC component, shall be removed. The spread over Kibor on CWC has been revised from 2% to 1%. The revised CWC in future shall be indexed at Kibor plus 1%. The maximum limit of insurance component shall be capped at 0.9% of the allowed engineering, procurement and construction (EPC) cost.
Express Tribune
23-03-2025
- Express Tribune
Three shops burgled despite tight security
A burglary incident at three shops near Empress Market, despite strict security measures, has exposed the flaws in the police's foolproof security arrangements. The shops and markets accessible through the passageway were sealed after a thorough search and sweep by the police to ensure the security of the main procession commemorating the martyrdom of Hazrat Ali (RA). However, despite this, the incident of looting millions of rupees, mobile phones, and other goods from the three shops raises questions about the police's performance. The targeted shops included a mobile phone store and a dry fruit shop. The suspects broke the shutters and locks to enter the shops. President of the Karachi Mobile and Electronics Dealers Association Minhaj Gulfam expressed strong resentment over the incident, calling it highly shocking. He demanded immediate arrest of the accused and the recovery of stolen cash, mobile phones, and other valuables. Speaking to The Express Tribune, Minhaj Gulfam revealed that thieves made off with Rs2.8 million in cash, mobile phones worth Rs four million, and other goods. He lamented that traders in the city are frequently targeted by robbers and thieves. On Friday afternoon, robbers also snatched Rs550,000 in cash from a trader on Abdullah Haroon Road in the Preedy police station jurisdiction. Despite foolproof security for the central procession, the burglary has shocked traders, proving that criminals have no fear of the police and law enforcement agencies. The shopkeepers have contacted the police, and legal proceedings are underway. Minhaj Gulfam warned that if the police fail to provide protection and traders continue to suffer losses, they will stage a protest against the authorities.
