Latest news with #Rs42
Express Tribune
2 days ago
- Business
- Express Tribune
Railways posts Rs83b revenue
Listen to article Pakistan Railways has announced earning a record-breaking Rs83 billion in revenue during the first eleven months of the current financial year FY25, showing a growth of 7.8% over the corresponding period. According to the Railways spokesperson, this is the highest revenue collected by the organisation in any similar eleven-month period in its history. Federal Railways Minister Muhammad Hanif Abbasi hailed the achievement as historic, stating that "through hard work and dedication, we will put Railways back on its feet." The revenue breakdown shows passenger trains contributed Rs42 billion, while freight services generated Rs29 billion. Other income sources, including property leases and commercial activities, added Rs12 billion. Regional performance varied significantly, with Karachi Division emerging as the top performer — earning Rs13 billion from passengers and a substantial Rs25 billion from freight. Lahore Division reported Rs10 billion from passengers but less than Rs1 billion from freight. Both Rawalpindi and Multan Divisions earned Rs4 billion each from passengers, totalling Rs8 billion combined. This performance represents a notable improvement over the same period last year, when revenue stood at Rs77 billion. The current figures suggest Pakistan Railways might surpass its full-year target of Rs88 billion with one month remaining. This financial milestone comes against a backdrop of persistent challenges. For years, Pakistan Railways has struggled with aging infrastructure, frequent service disruptions, and safety concerns that have eroded public confidence. Many mainline tracks and bridges date back to the British colonial era, causing speed restrictions and delays. The organisation still operates at a significant operational loss when accounting for full infrastructure maintenance costs, despite this revenue increase. While the Rs83 billion revenue demonstrates progress in financial management and operational efficiency, industry analysts said this represents recovery rather than transformation. Sustained investment in infrastructure modernisation, consistent service quality, and resolution of long-standing debt issues are still needed before Pakistan Railways can be considered fully revitalised. "The revenue achievement offers hope, but the organisation's journey to becoming a truly modern, reliable, and profitable national transport service has just begun," they added.
Business Recorder
3 days ago
- Business
- Business Recorder
FBR links cut in FED on juices with submission of post-dated cheques
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood has linked reduction of federal excise duty (FED) on juices from 20 to 15 percent in budget (2025-26) with submission of post-dated cheques of the FED to be collected in the next fiscal year. During the meeting of National Assembly Standing Committee of Finance held here on Thursday, juice industry pleaded case for reduction in the FED on juices in the coming budget. The FBR chairman, Thursday, conveyed to the juice industry to deposit post-dated cheques of the FED in case FBR proposed reduction of FED on juices from 20 to 15 percent in budget (2025-26). 'High tax on packaged juices stifles growth, hurts economy' The industry was surprised to hear such a strange proposal from the tax authorities of submission of the post-dated cheques. The industry representatives stated that how post-dated cheques could be submitted of the FED to be collected on sales to be taken place during the next fiscal year. The FBR chairman responded that it is the claim of the industry that the reduction in FED would increase volumes and ultimately raise tax collection during next fiscal year. The industry should submit post-dated cheques to substantiate its claims. The FBR chairman added that 'we have to impose taxes in cases where we will give relief to the taxpayers to overcome the revenue shortfall. In case of relief to any sector/industry, there should be some alternate proposal to generate same amount of revenue.' Fruit Juices Council's representative Aatika Mir informed the committee that 20 per cent FED (on top of existing 18 per cent GST) imposed on the formal packaged juice industry since 2023, continues to stall the juice industry's growth. Decreasing sales' volumes of 45 per cent have also meant that in 2024-25, the government's revenue projections fell short of expectations. The Fruit Juice Council, a body representing the formal juice industry, is asking for a reduction in the FED imposed on the juice industry. In line with local regulations, fruit drinks have minimum five per cent fruit content, nectars have 25 per cent—50 per cent fruit content, and pure juices have 100 per cent fruit content. Fruit-based juices are a healthier option and are promoted as such by Food Authorities since they contain the goodness of fruits. Punjab and Sindh Food Authorities allow the sale of fruit-based juices in educational institutions while restricting sales of any other beverages. Industry crash after 20 per cent FED imposition (in addition to 18 per cent GST), she pleaded. Following a strong growth trajectory, the sales were projected to grow to more than Rs71billion in 2022-23. However, with the imposition of 20 per cent FED on juices (in addition to 18 per cent GST) since the Annual Budget 2023-24, industry sales have plunged by 45 per cent. Sales over the last year have fallen to around Rs42 billion. Aatika stated that the decline in sales has led to the industry being unable to utilise its installed production capacity, with no new investments in the last three years. This shrinking business size has also negatively impacted fruit farmers and pulp processors since the fruit procurement volumes have dropped to below 2017 procurement volumes; only 20,233 tons of mangoes were purchased last year vs 31,000 tons purchased in 2017-18. In addition, the imposition of 20 per cent FED (in addition to 18 per cent GST) is impacting affordability of the products produced by documented players. This means consumers are effectively paying around 42 per cent of the price as taxes on a pack of juice. This has resulted in a large proportion of consumers shifting to low-priced, low-quality and possibly unsafe alternatives offered by the undocumented sector, which is more than 25 per cent of the industry size. The formal packaged juice industry also shows great potential for increasing exports. Currently, packaged juices are exported to more than 30 countries across the world, with the potential to increase them. However, if the industry fails to get back on the growth trajectory, exports will also end up suffering. The Fruit Juice Council has requested the government to reduce the FED rate on the formal juice industry to 15 per cent. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
SHEC's CIEC Chairman urges universities to enhance internal revenue amid budget constraints
HYDERABAD: Dr Sarosh Hashmat Lodi, Chairman of the Charter Inspection and Evaluation Committee (CIEC) of the Sindh Higher Education Commission (SHEC) and former Vice-Chancellor of NED University Karachi, has emphasized the need for public sector universities to reduce expenditures and explore internal revenue streams to navigate growing financial challenges. Speaking at a dinner hosted in his honour at Sindh Agriculture University (SAU), Tandojam, Dr Lodi pointed out that while the federal government has not increased university budgets over the past eight years, the Sindh government has stepped up with a proposed allocation of Rs42 billion for provincial universities. However, he warned that fiscal challenges are likely to intensify, urging universities to adopt more sustainable financial strategies. 'Increasing student fees is not a viable option for public sector universities, as they are often the only accessible avenue for quality education for students from underprivileged backgrounds,' he said. 'In my new role, I am committed to supporting the enhancement of academic and research standards across institutions, along with addressing structural and operational issues.' Dr Lodi also highlighted the vital role of universities in producing leadership across all sectors and called for efforts that yield long-term, generational benefits for the country. Speaking on the occasion, Meritorious Professor and former Vice Chancellor of SAU, Dr A Q Mughal, praised Dr Lodi's financial reforms at NED University, which have contributed significantly to its current financial stability. He noted that Dr Lodi has been a consistent supporter of universities across Sindh, facilitating improvements and institutional strengthening. SAU Vice Chancellor Dr Altaf Ali Siyal shared that the university is currently grappling with financial constraints. 'A special grant request of Rs670 million has been submitted to the Sindh Government and SHEC to clear outstanding gratuities of retired staff since 2022,' he informed. Dr Siyal acknowledged Dr Lodi's instrumental role in resolving key issues at SAU, including the long-standing delay in promotions of meritorious professors. He expressed hope that university graduates would be able to secure viable market opportunities and emerge as successful entrepreneurs in the evolving job market. Copyright Business Recorder, 2025
Express Tribune
23-05-2025
- Business
- Express Tribune
Provinces owe Rs161b for electricity charges
Say balancing of payments alone does not constitute economic planning. PHOTO: BLOOMBERG A Senate panel was told on Friday that the provincial governments have not yet paid a total of Rs161 billion that they owe to the federal government for electricity charges. The Senate Standing Committee on Power convened on Friday to discuss key issues including adjustments of provincial power dues through the National Finance Commission (NFC) and the privatisation of power distribution companies (DISCOs). During the meeting, the committee chairman, Senator Mohsin Aziz, said that the provinces claim that the federal government has not cleared pending dues. The Power Division officials stated that the provincial governments had not paid a total of Rs161 billion. Punjab owes the federal government Rs42 billion; Khyber Pakhtunkhwa, Rs10 billion; Sindh, Rs68 billion and Balochistan, Rs42 billion. The officials clarified that the amount is for power supplied to provincial departments, while federal dues may relate to hydel power adjustments. Minister for Power Awais Leghari said the matter was discussed with the Finance Ministry recently and that he has written to all provincial chief ministers for settlement of dues. Leghari informed the committee that following the reconstitution of DISCOS' boards, losses have been reduced by Rs140 billion as of March, adding that the government has assured the IMF of its commitment to privatise the DISCOs. "The government's role is not to run power distribution companies. The goal is to privatise all DISCOs within the next three years. In the first phase, three DISCOs will be privatised. A financial advisor is already working on the process and has submitted a due diligence report," he said. Leghari expressed confidence that the privatisation of the three companies will be completed within the next six months, although the committee chair noted it may be by June next year.
Express Tribune
23-05-2025
- Business
- Express Tribune
Govt to wind up idle depts in budget
Listen to article Days before the presentation of the federal budget, Prime Minister Shehbaz Sharif has instructed ministries to identify redundant government organisations that can be wound up in the budget to save money and to also sort out the issue of power sector subsidies. Government sources told The Express Tribune that after taking a briefing on the new budget, the prime minister constituted about half-a-dozen committees to address major pending issues. The committees have been constituted 10 days before the presentation of the budget in the National Assembly. Finance Minister Muhammad Aurangzeb is scheduled to present the budget on June 2 in the National Assembly. The prime minister asked him to sort out all pending issues by Saturday. The sources said that the ongoing discussions with the International Monetary Fund are expected to conclude today with the most crucial meeting between the IMF, the Federal Board of Revenue and the finance ministry. They said that the FBR remained the thorny issue in the talks and a couple of meetings were also tense in which the IMF staff questioned the credibility of the commitments given by the FBR at the time of the staff level discussions in March. The sources said that after the briefing on the budget, the prime minister decided to constitute the committees to resolve the pending issues. He set the deadlines till May 24 for the ministries aimed at concluding the budget exercise in time. The sources said that the prime minister has instructed all the ministries to review the pink book to identify redundant and dysfunctional organizations and recommended winding up as part of the government's downsizing and cost-cutting agenda. The deadline is May 24th. The prime minister had constituted a cabinet committee on reducing the size of the government, which undertook the exercise in five different phases. However, the results remained below the government's own expectations. The federal rightsizing committee is now expected to complete the review of the purpose and rationale of various state-owned enterprises, which will be completed by end-December 2025. In a briefing to the Senate Standing Committee on Finance last month, the Cabinet Division stated that the drive to reduce government expenditures by abolishing posts would save Rs36 billion annually. It further informed that one-fifth of the savings were ensured by cutting the lowest pay grade-1 posts of gardeners, sweepers and peons. About 40,000 positions have already been either abolished or declared dying positions in the public sector. Out of these 11,558 positions that were either abolished or declared dying belonged to Pakistan's lowest pay scale 1. This is equal to 29% of the total positions that are being abolished. The average salary of pay scale one is Rs42,888 and peons, gardeners and sweepers are recruited in this scale. The committee was informed that abolishing all these nearly 40,000 positions would save annually Rs36.3 billion. But 19% or Rs7 billion savings were against the lowest pay scale 1. The PM also instructed the Finance Minister to submit contours of key budget initiatives and priorities that will form the narrative component of the Budget Speech. The instructions have also been issued to the media publicity wing of the government and the ministry to ensure favourable narrative, the sources added. In an important development, the PM also instructed the Planning Minister and the Finance Minister to hold consultative meetings with relevant ministries to deliberate on proposed plans, projects, and initiatives for the fiscal year 202526. The committee has been tasked to finish the job by today (Friday) and ensure that only those projects are added in the Public Sector Development Programme that can be fully funded in the midst of scarcity of the resources. The sources said that the Deputy Prime Minister Ishaq Dar is expected to chair a meeting today (Friday) to finalize the next year's PSDP. The development budget size remains uncertain, as the Planning Ministry and the coalition partners have termed the Rs921 billion proposed size insufficient. The sources said that the PM asked the concerned party that the agreed-upon proposals, along with a summary of key initiatives from all important ministries, should be submitted for his consideration. The sources said that one of the outstanding issues is how much money should be allocated for discretionary spending under the parliamentarians programme. The original allocation for this fiscal year was roughly Rs50 billion but the chances are the spending will be higher than this, contrary to cuts against other ministries. For the next fiscal year, the government is facing pressure to allocate a larger pie for these schemes, known as SDGs Achievement Programme. Ishaq Dar on Thursday chaired the 45th meeting of the Steering Committee on SDGs Achievement Programme (SAP). Dar stressed the importance of involving local communities in identifying basic development infrastructure projects. He emphasized the Government's resolve to ensure that resources are utilized in the best interest of Pakistan's citizens, aligning them with the Sustainable Development Goals (SDGs). It was decided that unallocated funds will be surrendered while the implementing agencies were directed to utilize the allocated funds efficiently and responsibly. However, the unspent money is hardly Rs2 billion, said the sources. The PM has also asked the Finance and Power ministries to sort out the issue of the quantum of power subsidies. A meeting between both the ministries took place on Thursday but the issue remained unresolved, said a senior ministry official. The government has allocated Rs1.04 trillion for power subsidies for the next fiscal year, which is equal to 0.8% of the GDP. The sources said that the Power Division was asking for roughly Rs180 billion more on account of share from the petroleum levy. Shehbaz Sharif had increased the levy rate by Rs10 per liter to reduce the cost of electricity by Rs1.71 per unit. The PM instructed that the Power Division and Finance Division should further fine-tune the proposal regarding allocation of Petroleum Development Levy (PDL) for providing tariff subsidies, said the sources. The PM asked the Petroleum Division to take lead and sort out the issue of input tax adjustments of the refineries. The Petroleum Division has been asked to sort out the issue in consultation with the Finance Division and Revenue Division by Saturday.
