Latest news with #Rs270
Business Recorder
5 hours ago
- Business
- Business Recorder
Rs415 billion in losses raise alarms over tobacco enforcement
While regulators tighten the noose around Pakistan's formal tobacco sector, the real threat is expanding in plain sight. Illicit cigarette brands—untaxed, unregulated, and widely available—have captured more than half the market. They pay nothing, follow no rules, and yet continue to grow. The law is chasing what is visible, not what is dangerous. The formal industry, despite contributing nearly Rs270 billion in taxes each year, now controls only 46 percent of the market. The remaining share belongs to illegal operators selling cigarettes at a fraction of legal prices. This thriving black market is causing an annual loss of over Rs415 billion revenue that could have supported healthcare, education, or debt relief. Instead, it is being lost to unchecked trade networks and lack of enforcement. Much of the blame lies with those who claimed to champion public health. Campaign for Tobacco-Free Kids and Vital Strategies ran campaigns targeting the regulated industry while staying silent on the illicit trade that now dominates the market. Last year, the government shut down both INGOs for operating without registration, funding local entities without approvals, and engaging in policy circles unlawfully. Their work, once seen as advocacy, is now under scrutiny for policy interference and regulatory evasion. 'This is not about tobacco anymore,' said Fawad Khan, spokesperson for Mustehkam Pakistan. 'It is about survival. When lawbreakers take over the market and face no consequences, the whole system starts to collapse. We are rewarding the illegal and punishing the legal—and everyone in the country is paying for it.' At the same time, the IMF continues to push Pakistan to broaden its tax base and reduce leakages. But fiscal targets cannot be met if entire sectors remain outside the net. Experts argue that unless enforcement expands to include illegal trade, even the most disciplined revenue policies will fall short. The issue is no longer about raising taxes—it is about applying them fairly.
Business Recorder
3 days ago
- Business
- Business Recorder
Budget 2025-26: Rs1trn planned for PSDP, says Ahsan Iqbal
Planning minister Ahsan Iqbal said on Monday the government would propose Rs1 trillion for Public Sector Development Programmes (PSDP) in the upcoming federal budget for the financial year 2025-26. The development came as the Annual Plan Coordination Committee (APCC) met in Islamabad under the chairmanship of Ahsan Iqbal to review the progress of the PSDP 2024–25 and finalise recommendations for the upcoming PSDP 2025–26, said a statement from the Planning ministry. The meeting brought together high-level federal and provincial representatives, including secretaries, principal accounting officers, and planning officials from Gilgit-Baltistan and Azad Jammu & Kashmir. Due to fiscal discipline agreed with International Monetary Fund, the government is constrained to not increase PSDP While addressing the participants, Planning minister emphasised that despite limited fiscal space and competing demands, the government 'remains fully committed to sustaining development momentum through strategic realignment of resources and policy reforms'. 'The Finance Division, after consultations with the IMF, has firmed up an Indicative Budget Ceiling of Rs1 trillion for the federal PSDP, including Rs270 billion in foreign aid,' Ahsan said. He noted that when the current government assumed office in early 2024, it inherited an economic landscape marked by 'constrained revenues, pressing foreign obligations, and structural imbalances'. Budget 26: govt looking to boost export of 'made in Pakistan' mobile phones, say assemblers During the meeting, a review of PSDP 2024–25 was presented. It was noted that the National Economic Council had approved a National Development Outlay of Rs3.79 trillion, which included Rs1.40 trillion for the federal PSDP, Rs2.09 trillion for provincial annual development programes, and Rs196.9 billion for state-owned enterprises (SOEs). 'However, due to financial constraints, the federal PSDP was later reduced to Rs1.100 trillion.' As of May 31, 2025, Rs1.036 trillion had been authorised for release, and Rs596 billion had been utilised. A total of 1,071 projects were included in the PSDP, with an approved cost of Rs13.427 trillion, of which Rs3.216 trillion had already been spent by June 2024. 'A throw-forward liability of Rs10.216 trillion remains, underscoring the urgent need for project rationalisation and financial discipline.' The minister highlighted that there was a dire need to increase the development budget of the country, which had direct bearing on growth and job creation. 'However, due to fiscal discipline agreed with International Monetary Fund (IMF), the government is constrained to not increase PSDP. The only way to increase development spending is to increase the revenues by increasing tax/GDP ratio from 10% to 16-18%,' he said. 'By being lowest tax paying economy we can't aspire to grow'. The minister informed that the government had undertaken reforms to overhaul tax administration. 'To ensure maximum value for the investment in development sector, the ministry has taken multiple reviews of project performance, including quarterly and mid-year reviews for better investment efficiency.' Over 118 slow-moving or redundant projects, mostly approved at the Departmental Development Working Party (DDWP) level, were recommended for capping or closure, potentially 'saving Rs1.000 trillion and freeing resources for high-impact initiatives'. Moreover, the Planning Commission facilitated re-appropriations of Rs84 billion to fast-moving projects and critical interventions, while Rs80 billion were reallocated through TSGs for emergent national priorities such as the solarization of tube wells in Balochistan. Looking ahead to FY 2025–26, the minister announced that the proposed PSDP had been restructured in line with core principles of sustainability', impact, and equity'. 'The Finance Division, after consultations with the IMF, has firmed up an Indicative Budget Ceiling of Rs1.000 trillion for the federal PSDP, including Rs270 billion in foreign aid.' The PSDP 2025–26 portfolios have been developed following extensive consultations with ministries and provinces through Priority Committee meetings and high-level reviews chaired by the deputy prime minister and advisor to the prime minister. 'The final recommendations reflect a strict prioritisation of ongoing high-impact, foreign-aided, and near-completion projects. In total, 1,120 projects have been included in the proposed PSDP, of which a significant number are designed to be completed within the next 3–4 years if fiscal space is maintained.' Pakistan faces serious challenge of water security therefore Diamer Bhasha Dam is given top priority, according to the statement. 'Hyderabad-Sukkur Motorway will be started during 2025-26. Balochistan will get highest share in development funds of nearly Rs250 billion.' The minister further informed that sectoral allocations had been finalised with Rs644 billion allocated to infrastructure, including Rs332 billion for transport and communications and Rs144 billion for energy. FBR may impose 18% sales tax on locally-manufactured cars A total of Rs150 billion has been proposed for the social sector, including Rs63 billion for education and higher education and Rs22 billion for health. Special areas like AJK and GB will receive Rs63 billion, while Rs70 billion has been allocated for merged districts of Khyber Pakhtunkhwa. Science and IT sectors have been allocated Rs53 billion, while Rs9 billion has been proposed for governance, according to the statement. Moreover, production sectors, including food, agriculture, and industries, are expected to receive Rs11 billion. In addition, SOEs have submitted development plans amounting to Rs288 billion, with major contributions from entities like WAPDA, NTDC, OGDCL, and others. The minister informed the participants that one of the 'most serious challenges' had been the increasing tension and security risks following the events of May 7, 2025, when hostilities broke out along the eastern border with India. 'This conflict has led to increased defense spending requirements and exerted additional pressure on the already limited development budget.' He acknowledged the dilemma faced by the government: choosing between critical national defense and the developmental needs of the people. However, he reassured participants that the government remained committed to maintaining a careful balance. The minister stated that the strength of a nation 'lies not just in its defense capabilities, but also in the health, education, and economic empowerment of its citizens'. 'The government will not allow Pakistan's development journey to be derailed. Instead, it will adopt innovative planning, smart budgeting, and rigorous monitoring to ensure that the needs of both defense and development are addressed.' The APCC also deliberated on critical policy reforms. It endorsed the proposal to stop at-source deduction of Cash Development Loans (CDL) from the PSDP funds, saying the practice hampered project cash flows and delayed implementation. 'The committee reiterated the policy that provincial nature projects should be funded by provinces, except in cases involving strategic national interest or implementation in deprived regions. 'Furthermore, the APCC recommended imposing a moratorium on DDWP-level project approvals during the tenure of the IMF programme, except in exceptional cases with full justification and review by the CDWP. It was also proposed that no development funds be diverted to recurring expenditures during the fiscal year.' 'We are not just managing a budget—we are shaping the future. The world may see limitations, but we see opportunities,' Ahsan said.
Express Tribune
24-05-2025
- Business
- Express Tribune
Prices soar ahead of budget announcement
As the federal budget for the fiscal year 2025-26 approaches, the prices of essential food items in the open market have begun to rise sharply. Shoppers and vendors alike are reporting noticeable increases in the cost of basic commodities such as sugar, flour, rice, pulses, cooking oil, and ghee. The supply of these goods has also reportedly decreased, compounding the problem and fuelling further speculation over price hikes. Market sources suggest that traders have begun stockpiling items that are expected to be taxed at higher rates in the new budget. This hoarding is contributing to artificial shortages and pushing prices upward across multiple categories of daily necessities. According to current market trends, the price of live chicken has reached Rs415 per kilogramme, while chicken meat is selling at Rs650 per kilogramme. Eggs, previously priced at Rs270 per dozen, have risen to Rs290. Mutton is being sold at Rs2,400 per kilogramme, and beef at Rs1,400 per kilogramme. Fresh milk is now Rs220 per litre, and yogurt is available for Rs240 per kilogramme. Grains and pulses have also seen substantial increases. Rice is priced at Rs400 per kilogramme, split chickpeas at Rs380, and white chickpeas at Rs390 per kilogramme. Cooking oil and ghee are being sold at Rs510 and Rs500 per packet, respectively. Vegetables and fruits are similarly affected. Potatoes, onions, and tomatoes are now selling at Rs50 to Rs60 per kilogramme. Garlic is priced at Rs200, ginger at Rs600, and lemons have reached Rs800 per kilogramme. Green chilies are available at Rs150 per kilogramme, while a bundle of fresh coriander is being sold for Rs30. Among other vegetables, okra is priced at Rs160 per kilogramme, arvi at Rs200, radish at Rs40, and peas at Rs200 per kilogramme. Seasonal fruits have also experienced an uptick. Apples range between Rs300 to Rs350 per kilogramme, guavas at Rs200 to Rs250, apricots and loquats at Rs200, and mangoes between Rs200 to Rs300 per kilogramme. Watermelons are being sold at Rs50 per kilogramme, while melons and cantaloupes are priced at Rs100. Peaches are fetching Rs200 to Rs300 per kilogramme, cherries at Rs300 per box, and bananas at Rs200 to Rs240 per dozen. Consumers fear that these prices may rise even further once the budget is formally announced, as uncertainty over new tax policies and supply disruptions continue to drive inflation in household goods.
Time of India
14-05-2025
- Business
- Time of India
After Rs 270cr loss in finance panel grants, NMC seeks relaxed norms
Nagpur: The city was deprived of over Rs270 crore in sanctioned grants under the 15th Finance Commission , primarily due to the absence of an elected general body and failure to meet certain conditions such as mandated 15% annual increase in property tax. The issue was flagged by former mayor Dayashankar Tiwari at the recently concluded 16th Finance Commission meeting held in who represented the city, highlighted the growing financial burden on Nagpur Municipal Corporation (NMC) due to its high share in central govt-funded projects. He cited the Rs900 crore Pora River Pollution Abatement Project where NMC's share is 50% (around Rs479 crore). To meet this obligation, NMC is taking a loan of Rs450 crore, despite the project having a three-year completion timeline. In contrast, under the Rs1,927 crore Nag River Pollution Abatement Project , NMC's share is only 15% (around Rs290 crore), and with an eight-year deadline, the civic body may be able to manage its contribution more comfortably. Against this backdrop, Tiwari urged the commission to reduce NMC's share in future centrally-funded projects to ease fiscal pressure on the the 15th Finance Commission, the central govt sanctioned Rs243.70 crore for the city's Air Quality Improvement Programme and Rs 357.27 crore for water and sanitation works. However, only Rs132.60 crore was released for air quality projects and Rs198.44 crore for water and sanitation — both before the NMC's general body was dissolved on March 4, 2022. The remaining Rs270.93 crore — Rs111.10 crore for air quality and Rs 158.83 crore for sanitation — has not been released argued that eligibility for 15th Finance Commission funds required the presence of elected representatives and a 15% annual hike in property tax. However, municipal elections have not been held in Maharashtra since 2022, and administrative limitations — including staff deployment for Lok Sabha and Assembly elections, and manpower shortages — prevented the mandated tax a result, NMC did not receive grants under the 15th FC for the years 2023-24, 2024-25, and 2025-26. Tiwari urged the commission to relax such stringent conditions, arguing that cities should not be penalised for circumstances beyond their control. He called for a more flexible policy to ensure essential public projects are not stalled due to technical non-compliance.
Express Tribune
02-05-2025
- Business
- Express Tribune
Shaza Fatima says Starlink launch on track for December
Shaza also revealed that Chinese satellite internet firms, including Galaxy Space and Shanghai Space, have expressed interest in entering the Pakistani market. PHOTO: APP Listen to article Minister of State for Information Technology Shaza Fatima Khawaja has dismissed speculation over licencing delays for Starlink, stating that the satellite internet provider is on track to launch in Pakistan by December 2025. Speaking informally to reporters on Friday, the minister said that a consultant has been appointed by the Pakistan Space Activities Regulatory Board (SUPARCO) to draft regulatory frameworks for Low Earth Orbit (LEO) satellites, with the rulebook expected to be finalised by June. 'There is no delay in Starlink's licensing. The process is ongoing and structured,' she said, noting that Starlink has remained in contact with Pakistani authorities and is expected to spend the next five to six months building infrastructure ahead of its operational debut. Shaza also revealed that Chinese satellite internet firms, including Galaxy Space and Shanghai Space, have expressed interest in entering the Pakistani market. However, she clarified that no formal applications have yet been submitted. 'Our space policy is open and non-exclusive,' she added. 'We will facilitate any company that meets the criteria and comes forward.' Addressing the broader telecom sector, the minister acknowledged financial challenges, citing an average revenue per user (ARPU) of Rs270, the lowest in the region. She attributed the strain to currency fluctuations and rising electricity prices. The minister noted that the upcoming spectrum auction could help improve telecom services and confirmed that companies had submitted budget proposals for the next fiscal year, which are being reviewed in coordination with the Ministry of Finance. On the ongoing shutdown of social media platform X in Pakistan, Shaza rejected public claims that the move curtails freedom of expression. 'X has not engaged with the IT Ministry since the ban,' she stated, suggesting that any communication has likely occurred only with the Pakistan Telecommunication Authority (PTA). 'X is not in compliance with Pakistani laws,' she added, while noting that other platforms remain in contact and respond to government requests.
