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Business Recorder
4 days ago
- Business
- Business Recorder
NA body informed: Govt decides to launch M-6 project on a priority basis
ISLAMABAD: The National Assembly Standing Committee on Economic Affairs was informed on Tuesday that government has decided to launch the Motorway (M6) on a priority basis in the development programme of the next fiscal year. Officials from the Ministry of Economic Affairs informed the committee that the ministry had proposed foreign financing of Rs500 billion. The ministry estimates that a rupee cover will be required for financing of Rs400 billion. The meeting of the Standing Committee was held under the chairmanship of Atif Khan, which was informed that negotiations are underway with the Islamic Development Bank and the Saudi Fund for financing the motorway. Secretary Economic Affairs Division Dr Kazim Niaz said that launching the M6 Motorway is currently the government's top priority. The Islamic Development Bank will provide $500 million for two sections of the M6 Motorway. Talks are being held with the OPEC Fund and the Saudi Fund for Development for other sections. Talks are also being held with the Asian Development Bank (ADB). It is hoped that the Saudi Fund for Development will take up one section. Committee member Mirza Ikhtiar Baig said that the development of Karachi and Sindh depends on these two projects. The real purpose of building the motorway will be fulfilled by connecting the motorway with the port. The secretary Economic Affairs Division said that a new Country Partnership Strategy is being prepared with the Asian Development Bank. The committee was informed that important projects will be completed in the next fiscal year to improve the electricity transmission system. The committee was also informed that $460 million financing was available for Khyber Pakhtunkhwa Economic Corridor. The provincial government has to take several steps to get funding from the World Bank. This is an important project, the provincial government should resolve all issues quickly, secretary Economic Affairs Division added. In the last three years, short-term debt has been reduced and long-term debt has increased, he added. As the country's economic situation has improved, it has also become easier to obtain loans and set terms. Commercial loans are available for short periods and at high interest rates. In the last three years, the debt-to-GDP ratio has decreased to 67 percent, the secretary EAD added. The committee postponed the briefing on development projects in the absence of the planning minister and planning secretary. The Power Division has 82 development projects, said Special Secretary Power Division Arshad Majeed. Of these, 77 percent of the financing is allocated for transmission projects. Most of the projects of the Power Division are being carried out by NTDC, said Majeed. We thought that power generation would increase, said NTDC officials, adding that due to solarisation, the demand for power has decreased in the last five years. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Construction of Sindh motorways ‘top priority', says Aleem Khan
Federal Minister for Communications Abdul Aleem Khan on Monday said construction of motorways in Sindh was a top priority of the government. Talking to the media in Karachi, Aleem Khan announced that the M-6 and M-10 motorways would be launched simultaneously, according to a press release shared by the Press Information Department (PID). 'The M-6 is Pakistan's lifeline which was unfortunately neglected by previous governments,' he added. The minister emphasised that the motorway would be incomplete in its utility without being connected to the C-Port and that both the M-6 and M-10 would be linked to the Karachi Port to ensure full functionality. Highlighting the significance of the M-6 Project, Aleem Khan shared that it was a nearly Rs400 billion initiative comprising upon five sections, each approximately of 60 kilometers long. 'There is no better opportunity for investment than this project.' He further said financing had already been secured for two sections while discussions for the remaining three were ongoing. 'We will finalise the feasibility report and present it to the prime minister within the next 15 days.' Motorways from Karachi to Hyderabad and from Hyderabad to Sukkur would be completed as early as possible while working on the N-25 Highway from Karachi to Quetta was also scheduled to begin later this year, the minister said. 'Karachi's challenges are not just provincial—they are national issues and we will address them on a priority basis,' he emphasised. Replying to questions, the federal minister stressed that his focus was on delivering progress rather than engaging in blame games. 'My effort is to prioritise the launch of motorway projects in Sindh, similarly, we are committed to completing the Kaghan-Naran Motorway.' Aleem Khan said the National Highway Authority (NHA) recorded 'unprecedented growth' in revenue over the current fiscal year and attaining the target from Rs64 billion to Rs110 billion while the additional income would be utilised into improving road infrastructure and constructing new motorways. To ensure road safety, the minister said strict measures were being implemented against dangerous driving on motorways. 'Drivers exceeding 150 km/h are not only being fined but also facing FIRs,' Mandatory use of M-Tags was helping reduce long queues, and staffing shortages in motorway police were being addressed, he added. Regarding his visit to Karachi, Aleem Khan mentioned that he, along with the Federal Secretary Communications and Chairman of the NHA held meeting with the Chief Minister of Sindh and assured full support from his ministry. He also held a meeting with the business community led by Arif Habib, where investors expressed interest in participating in the development of Sindh's motorways and road networks, the PID statement read. The minister noted that a joint team was being formed to focus on additional options for the Lyari Expressway in Karachi, including improvements to interchanges and exploration of further development projects.
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.
Express Tribune
22-05-2025
- Business
- Express Tribune
Super tax hearing adjourned
A five-member Constitutional Bench of the Supreme Court, led by Justice Aminuddin Khan, adjourned the hearing on a case concerning the imposition of super tax until Tuesday. During the hearing, counsel for a company argued that Section 4B should be aligned with the income tax law. He pointed out that a 4 per cent super tax is imposed on banking companies, even if their income is as low as Rs10. In contrast, an individual earning over Rs400 million is subjected to a 3 per cent super tax. Justice Hasan Azhar Rizvi observed that the super tax was abolished in 2002 for all companies except banking institutions.
Business Recorder
22-05-2025
- Business
- Business Recorder
Budget 2025-26: Pakistan govt likely to bring YouTubers, freelancers into tax net
Pakistan government is projected to impose new taxes including on the income of freelancers, vloggers, and YouTubers, aiming to raise additional taxes worth around Rs500-600 billion in the upcoming budget for the financial year 2025-26, according to a research report issued on Thursday. In its report titled 'Pakistan Federal Budget FY26 Preview', Topline Research said the government was expected to give a revenue collection target of Rs14.1-14.3 trillion to the Federal Board of Revenue (FBR), showing a year-on-year growth of 16-18% in tax collection in FY26 compared to FY25. Out of this required 16-18% growth, 12% would be achieved through autonomous growth driven by real gross domestic product (GDP) growth of 3.6% and inflation of 7.7%. 'The remaining 4-5% growth translates into additional tax measures of Rs500-600 billion,' the report estimated. The budget presentation for FY26 is scheduled for June 2, 2025. Various institutions have recommended government for taxing income from social media platforms like YouTube, Tiktok amongst others. The initial proposal by the Institute of Cost and Management Accountants of Pakistan (ICMAP) was to implement tax rate of 3.5% on social media income. The institute expects additional collection of Rs52.5 billion (from social platforms), the report mentioned. Tax on pensioners Besides, the government is contemplating to impose a tax rate on pensioners in range of 2.5-5% on monthly pension of over Rs400,000 per month, the report said, citing media reports. Last year, the government also tried to consider taxing this area. 'However, we believe, in FY26 budget government will impose a tax, aiming to raise Rs20-40 billion from this.' In the first nine month of the ongoing fiscal year 2024-25, Pakistan has already spent Rs673 billion on pension cost, annualising to Rs0.9-1 trillion, the report said. The Pakistan Bureau of Statistics (PBS) has already adapted a key measure wherein GST (general sales tax) on few commodities would be calculated based on the prices published by it. For example, in case of sugar, the GST was being calculated on Rs72.22 per kg while the market price surged to Rs150/kg. This change in base for GST calculation can fetch additional Rs70-80 billion annually. 'We expect this change to be incorporated in FY26 finance bill.' Tax on ultra processed food items (health tax) is widely being circulated to 'bring health awareness and to reduce prevalence of obesity, type 2 diabetes, stroke, dental caries, cardiovascular disease and blood pressure'. As a first step, the government is planning to increase FED (federal excise duty) on such items (like biscuits snacks) by 20% with objective to take total FED to 50% by FY29. 'We expect government to impose this tax in addition to increase in FED on cigarettes as well.' The government has informed the International Monetary Fund (IMF) regarding removal of non-filer category. It has submitted a bill to the parliament, which if approved will restrict non-filers from engaging in key economic transactions such as vehicles and real estate purchase, according to the report. The bill was taken under discussion by Senate committee and there were some technological changes required in FBR system to effectively implement this. 'We believe, this section 114C would be introduced in budget, however, after the debate, some changes in threshold levels or some relaxation in year 1 of its implementation cannot be ruled out.' The government has also informed the IMF to considering imposing petroleum development levy (PDL) on furnace oil (FO) in addition to the levy already collected on petrol and diesel, Topline Research said. Furthermore, the government also plans to increase PDL by Rs5/liter on petrol and diesel (HSD) in form of carbon tax to be implemented gradually in 2 years. 'If this is implemented, we believe government can collect additional Rs35-80 billion from PDL on FO sales assuming no changes on GST front and PDL imposed is in range of Rs40-78/liter.' 'IMF has assigned to collect a minimum Rs295 billion from retailers in the first half of FY26 (till Dec 2025) and has also added this as Indicative Target. We believe, government will take steps like increase in advance taxes on distributors etc to satisfy this IMF requirement,' the report said. In October 2024, IMF report mentioned some tax measures for Pakistan including increase in FED by 5% on fertiliser and pesticide. 'With this step, government can raise incremental amount of over Rs30 billion it estimated. 'In our view, likelihood of increase in FED on both the products is high since this is IMF requirement.' Among other tax measures, elimination of concessionary or reduced GST rate on remaining products is 'highly likely', removal of exemptions for FATA/PATA region is likely, implementation of agriculture income tax is likely by provincial governments, and increase in GST on luxury items like appliances aircraft, ships, jewellery, cosmetics, cigarettes, high-end mobile phones is also expected in FY26 budget. In addition to this, the government is considering giving tax relieves to salaried people and real estate sector, reduce duties on import of vehicles or relaxation of age limit from 3 years to 5 years, and announce subsidy on housing finance, the report said.
