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Express Tribune
26-05-2025
- Business
- Express Tribune
'Open trade may hurt key sectors'
The Ministry of Industries has cautioned the federal government that its aggressive trade liberalisation plan may hurt at least 15 major job-creating sectors, urging phased implementation that excludes imported finished goods in the initial stage. The warning came the day Prime Minister Shehbaz Sharif convened a meeting of the National Economic Council (NEC) on June 9 to approve development and macroeconomic targets for the next fiscal year, just a day ahead of the federal budget announcement. The timing may challenge the planning ministry's ability to publish relevant documents based on NEC decisions just hours before the budget is presented. According to sources, during a recent meeting of the steering committee overseeing the implementation of the new National Tariff Policy, multiple ministries advised against fully opening the economy to foreign competition in the upcoming fiscal year. Finance Minister Muhammad Aurangzeb chaired the meeting, although no official statement was issued afterward. The government plans to significantly reduce import duties starting next fiscal year as part of its broader trade liberalisation agenda. However, domestic industries have expressed reservations, prompting the prime minister to form a steering committee under Aurangzeb to review the potential fallout. Sources said the Ministry of Industries urged the steering committee on Monday to reconsider the decision, recommending a gradual reduction in tariffs that starts with raw materials and intermediate goods rather than finished products. The finance minister, however, stated that such decisions fell outside the steering committee's purview and should be raised directly with the prime minister. Some members disagreed, arguing that assessing the impact on vulnerable industries was well within the committee's mandate. Under the current plan, customs duty slabs will be reduced to four levels: 0%, 5%, 10%, and 15%, down from the existing five-tier system that tops out at 20%. The Ministry of Industries informed the committee that most industries fear the new policy may force closures. It identified at least 15 sectors likely to be adversely affected, including chemicals, polyester, iron and steel, automobiles, and ceramicsall of which are major job generators. There are also concerns that a sudden opening of the economy could lead to a surge in imports, triggering a balance of payments crisis. The country's foreign exchange reserves are already under pressure, with the rupee's value slipping close to Rs284 against the US dollar. Additionally, difficulties have emerged in opening some letters of credit due to major debt repayments this month. If external account pressure increases, the government may be forced to devalue the rupeea move in line with recommendations from the International Monetary Fund (IMF). The Ministry of Commerce had initially proposed a six-tier duty structure0%, 3%, 6%, 9%, 12%, and 20%but the prime minister did not agree. During the steering committee meeting, some members advocated for duty reductions on raw materials and intermediate goods first, cautioning against cutting tariffs on finished goods too soon. However, liberalisation proponents argued that deferring reductions on finished goods would make them harder to implement later during the five-year rollout. The steering committee ultimately decided to revise the duty reduction plan by initially lowering tariffs on raw materials and intermediate goods only. A key point of contention was whether the estimated Rs200 billion in lost duties should be distributed across all duty slabs, including additional customs and regulatory duties. While relevant ministries pushed for a prudent rollout plan, private sector representatives called for uniform reductions across the board. As per the government's plan, additional customs duties will be abolished over four years, starting with the upcoming budget, while regulatory duties will be phased out over five years. The Fifth Schedule of the Customs Actcovering imports of capital goods and industrial raw materialswill also be scrapped in five years. One technical debate centered on why the duty on Purified Terephthalic Acid (PTA), a raw material used to produce other raw materials, was excluded from the reduction plan, even though a duty reduction for Polyester Staple Fiber, which is derived from PTA, was included. New plan Meanwhile, Prime Minister Shehbaz Sharif has convened the NEC meeting on June 9 to approve the Annual Development Plan and set macroeconomic targets for FY2025-26. The NEC, chaired by the prime minister and comprising the four provincial chief ministers, is responsible for approving federal and provincial development plans. Sources said the government plans to set the GDP growth target at 4.2% for the next fiscal year, up from the disputed 2.7% figure for the current year. The initial draft of the new annual plan projects a cautiously optimistic outlook, with agriculture expected to post modest gains and the industrial sector poised for a stronger rebound. This is expected to be driven by improvements in large-scale manufacturing, better energy supply, and stability in the construction sector. The Annual Plan 202526 is aligned with the "URAAN Pakistan" strategy, which aims to boost foreign exchange earnings through higher exports, increased remittances, and greater foreign direct investment. It is based on the export-led 5Es Framework, which prioritises diversification, global competitiveness, import substitution, innovation, Small and Medium sized Enterprises (SMEs) development, and cluster-based industrial growth to reinforce the "Made in Pakistan" brand. With these strategies, Pakistan seeks sustainable growth and greater resilience against external shocks.
Time of India
06-05-2025
- Business
- Time of India
Nagpur civic body struggles as property tax arrears hit Rs 938 crore in 2025
NAGPUR : The cash-strapped Nagpur Municipal Corporation (NMC) continues to struggle with its finances with property tax arrears soaring to a staggering Rs938 crore at the end of the 2024-25 financial year. As per NMC data, over 67% of property owners have defaulted on paying their property tax, leaving the civic body high and dry. While the NMC collected about Rs318 crore in property tax in the last fiscal year, the unpaid dues are almost three times of recovered amount, revealing a severe compliance and enforcement gap. Out of 6.87 lakh total properties registered within the municipal limits, 4.6 lakh failed to pay tax in the last financial year. NMC's property tax target was Rs325 crore but it ended up recovering only Rs284 crore, excluding tax from govt properties. Ashi Nagar zone reported the highest number of defaulters, with 1.08 lakh out of 1.19 lakh properties not paying their dues. This zone alone accounts for nearly Rs169 crore in arrears. Mangalwari and Laxmi Nagar zones followed closely with 51,813 and 40,729 defaulting properties, respectively. Arrears in Mangalwari stand at a whopping Rs159.6 crore, while Laxmi Nagar owes Rs153 crore. These three zones together account for almost half of NMC's total pending dues. Dhantoli zone has lowest number of defaulting properties, but it still accounts for Rs50.9 crore pending dues. Of 22,521 properties in the zone, 10,034 defaulted in property tax payment. Gandhibag recorded 14,906 defaulters from 27,459 properties, with pending dues of Rs18.9 crore — the lowest arrear amount among all zones. Sataranjipura also showed relatively better compliance, with 26,273 properties defaulting out of 42,039, adding up to Rs32.9 crore in unpaid taxes. Overall, the total number of defaulters across all 10 zones is 4,60,685 with cumulative arrears at Rs938.7 crore. Civic officials acknowledge that the growing tax default trend is undermining the municipal corporation's ability to fund infrastructure and basic services. Despite several awareness drives and notices issued to property owners, enforcement measures have remained largely ineffective. According to sources, officials are reportedly planning stricter recovery actions, including sealing of properties, publication of defaulter lists, and possible legal action. However, without systematic reforms and a stronger administrative push, the civic body's financial health may continue to decline under the weight of unpaid dues.
Time of India
05-05-2025
- Business
- Time of India
NMC Stares At Over Rs938 Crore In Property Tax Arrears
Nagpur: The cash-strapped Nagpur Municipal Corporation (NMC) continues to struggle with its finances with property tax arrears soaring to a staggering Rs938 crore at the end of the 2024-25 financial year. As per NMC data, over 67% of property owners have defaulted on paying their property tax, leaving the civic body high and dry. While the NMC collected about Rs318 crore in property tax in the last fiscal year, the unpaid dues are almost three times of recovered amount, revealing a severe compliance and enforcement gap. Out of 6.87 lakh total properties registered within the municipal limits, 4.6 lakh failed to pay tax in the last financial year. NMC's property tax target was Rs325 crore but it ended up recovering only Rs284 crore, excluding tax from govt properties. Ashi Nagar zone reported the highest number of defaulters, with 1.08 lakh out of 1.19 lakh properties not paying their dues. This zone alone accounts for nearly Rs169 crore in arrears. Mangalwari and Laxmi Nagar zones followed closely with 51,813 and 40,729 defaulting properties, respectively. Arrears in Mangalwari stand at a whopping Rs159.6 crore, while Laxmi Nagar owes Rs153 crore. These three zones together account for almost half of NMC's total pending dues. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Start Here - 2025 Top Trend Local network access control Esseps Learn More Undo Dhantoli zone has lowest number of defaulting properties, but it still accounts for Rs50.9 crore pending dues. Of 22,521 properties in the zone, 10,034 defaulted in property tax payment. Gandhibag recorded 14,906 defaulters from 27,459 properties, with pending dues of Rs18.9 crore — the lowest arrear amount among all zones. Sataranjipura also showed relatively better compliance, with 26,273 properties defaulting out of 42,039, adding up to Rs32.9 crore in unpaid taxes. Overall, the total number of defaulters across all 10 zones is 4,60,685 with cumulative arrears at Rs938.7 crore. Civic officials acknowledge that the growing tax default trend is undermining the municipal corporation's ability to fund infrastructure and basic services. Despite several awareness drives and notices issued to property owners, enforcement measures have remained largely ineffective. According to sources, officials are reportedly planning stricter recovery actions, including sealing of properties, publication of defaulter lists, and possible legal action. However, without systematic reforms and a stronger administrative push, the civic body's financial health may continue to decline under the weight of unpaid dues. |
Time of India
25-04-2025
- Business
- Time of India
NMC commissioner reads riot act to lax officials
Nagpur: Nagpur Municipal Corporation (NMC) commissioner Abhijeet Chaudhari has warned officials of stern action if they failed to achieve the property tax recovery target after the civic body failed to meet last year's target. In a high-level review meeting held on Friday, Chaudhari issued firm directives to officials, setting an ambitious target of Rs400 crore in property tax recovery for the 2025-26 financial year. Last year, NMC aimed to collect Rs325 crore property tax, but recovered only Rs284 crore. Chaudhari called for a detailed audit of why targets weren't met, pointing out that some zones collected less than 50% of their assigned goals. He instructed that notices be issued to underperforming officers and employees, demanding explanations. As part of the revamped strategy, around 3.25 lakh property tax bills will be sent out via post, while the remaining 4 lakh bills will be hand-delivered by municipal staff. To avoid miscommunication, officials have been told to update the addresses and mobile numbers of property owners. Chaudhari also stressed the importance of identifying and reassessing undervalued or under-assessed properties across all zones, calling for active involvement from assistant commissioners. "Each zone has its discrepancies. It's time we fix those," he said, urging officials to step up efforts in rehabilitating taxable properties. The NMC has also initiated a new campaign to identify new properties for tax inclusion, and GIS data compilation has been made a top priority. NMC has introduced a chatbot for providing information about property tax to help citizens access information related to their dues. Moreover, special instructions have been given to ensure tax is collected from govt properties, with Chaudhari insisting that "Aatacha Paath Purawa" — documentation and proof — be completed without delay. "Performance will be monitored closely, and action will be taken against those who don't meet expectations," the commissioner warned, signalling a no-nonsense approach going forward.
