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Business Standard
23-05-2025
- Business
- Business Standard
Centre denying Kerala its rightful share in tax devolution: CM Vijayan
Kerala Chief Minister Pinarayi Vijayan on Friday slammed the Centre, accusing it of denying the State its rightful entitlement in the tax devolution. The Chief Minister said that if the tax share had been allocated fairly, Kerala would have received an additional Rs2,282 crore in 2022-23 and Rs2,071 crore in 2023-24, respectively. "In the financial years 2022-23 and 2023-24, Kerala's share in the total own tax revenue generated by all Indian states was 3.7%. However, the tax devolution Kerala received from the Union government during the same period was only 1.53% and 1.13%, respectively. Based on Kerala's population share, the rightful entitlement should have been 2.7%," Vijayan said at a public event to mark his government's fourth anniversary. "If the tax share had been allocated fairly, Kerala would have received an additional Rs2,282 crore in 2022-23 and Rs2,071 crore in 2023-24. This is not an extra demand -- it is Kerala's rightful share," he added. The Chief Minister said that his government presented this "injustice" before the 16th Finance Commission and made efforts to bring together other states to raise a collective voice. "But the discriminatory attitude of the Union Government continues. Even in the 2024-25 financial year, the Centre has restricted state borrowings by Rs3,300 crore under the pretext of guarantee limits," he added. "It is not just a denial -- false propaganda is being spread to justify this bias, portraying Kerala's financial management as poor. This is far from the truth. We've made consistent progress. Kerala's Gross State Domestic Product (GSDP) has risen from Rs5.6 lakh crore in 2018 to Rs13.11 lakh crore today. In 2016, per capita income was Rs1.48 lakh; now it is significantly higher. These figures reflect our economic growth and resilience," he added. The Chief Minister said that despite deliberate roadblocks and financial restrictions from the Centre, Kerala has successfully implemented major projects. " We have enhanced our domestic revenue and continued to push development initiatives forward," he said. "Another important point is expenditure. The share of total government expenditure borne by the state governments is increasing. For the current financial year, the state's contribution is estimated to be around 70%. While the Centre's burden is decreasing, the responsibilities of states like Kerala are growing," he added. He said that Kerala has consistently shown improvement in many economic sectors. "We have managed to keep going. That is the strength of our economic policy. Whether it's in infrastructure, IT, or public welfare, Kerala has consistently shown improvement. Kerala was home to the country's first IT park with 640 companies. Although others advanced faster in recent years, our government, since coming to power in 2016, has worked to regain leadership in this domain, and we are seeing results," he said. He said that Kerala has progressed significantly since 2016, when he assumed office as the Chief Minister. "The LDF has now completed nine continuous years in office -- a rare achievement. When we compare the situation in 2016 to now, it's clear that Kerala has progressed significantly," he said. "During this time, we have achieved results we can be proud of. In 2016, we released a manifesto after carefully studying Kerala's condition. Except for a few items, nearly all promises have been fulfilled. We released a progress report, and the people have endorsed it. Today, on completing the fourth year, we will present the latest progress report," he added. The Chief Minister said this was a unique moment for Kerala. "In a democratic nation like ours -- and across the world -- no other government has presented a report card of achievements in such a transparent manner," he said. "Despite this, there is a persistent wave of negative propaganda claiming that Kerala is in economic ruins and no projects are progressing -- that we are a state adrift. Such falsehoods are being systematically spread. However, these narratives do not reflect reality," he added. The Chief Minister said that the data from the Reserve Bank of India showed Kerala's debt-to-GSDP ratio has actually improved. "In 2022-23, the gap between the state's debt and its internal revenue was 35.3%, and in 2023-24, it further dropped to 34.2%. This shows better financial management. In contrast, in 2023-24, Bihar's ratio was 39.3%, Punjab's in 2023-24 was 47.6%, and West Bengal's was 38.3%. The central government itself has a ratio of 56%," he said. "Kerala's relatively low and improving ratio proves we are managing our finances wisely. These are not empty claims -- they are backed by credible data from RBI," he added.
India Gazette
23-05-2025
- Business
- India Gazette
Centre denying Kerala its rightful share in tax devolution: Pinarayi Vijayan
Thiruvananthapuram (Kerala) [India], May 23 (ANI): Kerala Chief Minister Pinarayi Vijayan on Friday slammed the Centre, accusing it of denying the State its rightful entitlement in the tax devolution. The Chief Minister said that if the tax share had been allocated fairly, Kerala would have received an additional Rs2,282 crore in 2022-23 and Rs2,071 crore in 2023-24, respectively. 'In the financial years 2022-23 and 2023-24, Kerala's share in the total own tax revenue generated by all Indian states was 3.7%. However, the tax devolution Kerala received from the Union government during the same period was only 1.53% and 1.13%, respectively. Based on Kerala's population share, the rightful entitlement should have been 2.7%,' Vijayan said at a public event to mark his government's fourth anniversary. 'If the tax share had been allocated fairly, Kerala would have received an additional Rs2,282 crore in 2022-23 and Rs2,071 crore in 2023-24. This is not an extra demand -- it is Kerala's rightful share,' he added. The Chief Minister said that his government presented this 'injustice' before the 16th Finance Commission and made efforts to bring together other states to raise a collective voice. 'But the discriminatory attitude of the Union Government continues. Even in the 2024-25 financial year, the Centre has restricted state borrowings by Rs3,300 crore under the pretext of guarantee limits,' he added. 'It is not just a denial -- false propaganda is being spread to justify this bias, portraying Kerala's financial management as poor. This is far from the truth. We've made consistent progress. Kerala's Gross State Domestic Product (GSDP) has risen from Rs5.6 lakh crore in 2018 to Rs13.11 lakh crore today. In 2016, per capita income was Rs1.48 lakh; now it is significantly higher. These figures reflect our economic growth and resilience,' he added. The Chief Minister said that despite deliberate roadblocks and financial restrictions from the Centre, Kerala has successfully implemented major projects. ' We have enhanced our domestic revenue and continued to push development initiatives forward,' he said. 'Another important point is expenditure. The share of total government expenditure borne by the state governments is increasing. For the current financial year, the state's contribution is estimated to be around 70%. While the Centre's burden is decreasing, the responsibilities of states like Kerala are growing,' he added. He said that Kerala has consistently shown improvement in many economic sectors. 'We have managed to keep going. That is the strength of our economic policy. Whether it's in infrastructure, IT, or public welfare, Kerala has consistently shown improvement. Kerala was home to the country's first IT park with 640 companies. Although others advanced faster in recent years, our government, since coming to power in 2016, has worked to regain leadership in this domain, and we are seeing results,' he said. He said that Kerala has progressed significantly since 2016, when he assumed office as the Chief Minister. 'The LDF has now completed nine continuous years in office -- a rare achievement. When we compare the situation in 2016 to now, it's clear that Kerala has progressed significantly,' he said. 'During this time, we have achieved results we can be proud of. In 2016, we released a manifesto after carefully studying Kerala's condition. Except for a few items, nearly all promises have been fulfilled. We released a progress report, and the people have endorsed it. Today, on completing the fourth year, we will present the latest progress report,' he added. The Chief Minister said this was a unique moment for Kerala. 'In a democratic nation like ours -- and across the world -- no other government has presented a report card of achievements in such a transparent manner,' he said. 'Despite this, there is a persistent wave of negative propaganda claiming that Kerala is in economic ruins and no projects are progressing -- that we are a state adrift. Such falsehoods are being systematically spread. However, these narratives do not reflect reality,' he added. The Chief Minister said that the data from the Reserve Bank of India showed Kerala's debt-to-GSDP ratio has actually improved. 'In 2022-23, the gap between the state's debt and its internal revenue was 35.3%, and in 2023-24, it further dropped to 34.2%. This shows better financial management. In contrast, in 2023-24, Bihar's ratio was 39.3%, Punjab's in 2023-24 was 47.6%, and West Bengal's was 38.3%. The central government itself has a ratio of 56%,' he said. 'Kerala's relatively low and improving ratio proves we are managing our finances wisely. These are not empty claims -- they are backed by credible data from RBI,' he added. (ANI)
Business Recorder
12-05-2025
- Business
- Business Recorder
Price deregulation improves access to medicines, helps stabilise industry
KARACHI: The price deregulation of non-essential medicines in early 2024 has improved access to medicines and brought much-needed stability to the pharmaceutical sector, creating space for sustainable and long-term industry growth. The policy shift, aimed to create a market-driven approach while addressing longstanding challenges in the sector, provided flexibility to pharmaceutical firms, allowing them to adjust prices in line with market conditions. By aligning prices with inflation and currency fluctuations, companies have managed to stabilise production of medicines that were previously at risk of becoming unavailable due to pricing constraints, according to experts. Contrary to the skepticism surrounding price deregulation, the past year has proven it to be a correction rather than a market free-for-all. Essential medicines—listed under the National Essential Medicines List (NEML)—remain under strict government's price controls, ensuring continued affordability for vulnerable populations. However, by removing artificial price ceilings on non-essential medicines, the government restored confidence among manufacturers and revived production lines. 'This (deregulation) was not about letting prices run wild, but it was about saving healthcare industry on the verge of collapse and increasing access of patients to genuine medicines at market price,' said a former Pakistan Pharmaceutical Manufacturers' Association (PPMA) chairman. 'Deregulation has balanced sustainability with patient access.' With production becoming financially viable, many life-saving but previously discontinued drugs are now back on shelves. The volume of medicines sold rose by 3.79% year-over-year, according to IQVIA data dated February 2025, countering claims that higher prices have reduced access. Stable supply chains have also curtailed the rise of unregulated and counterfeit substitutes that had filled the void during previous shortages. Deregulation brings innovation, investment The economic impact of deregulation has been supportive. In the first quarter of FY25, the sector recorded a 5.6-fold increase in profitability, jumping to Rs5.6 billion from Rs1 billion in the same quarter of FY24, according to Topline Research. The growth was driven by improved margins, reduced financing costs, and greater production efficiency. The profitability has translated into increased investment. PPMA member companies are rapidly upgrading their manufacturing facilities to meet WHO PQ and PIC/S standards. The improvements can position Pakistan to significantly expand exports to regulated markets across Asia, the Middle East, and Africa. PPMA officials estimate that Pakistan's pharmaceutical exports significantly surged to $500 million in the first half of FY25, suggesting having potential to reach $1 billion in full-year FY25 and $5 billion in the next five years, provided deregulation and policy stability remain in place. 'Global buyers are now viewing Pakistan as a reliable, high-quality supplier,' a PPMA spokesperson said. 'This is a major shift from just two years ago.' According to industry sources, Pakistan and Afghanistan are to reach an understanding in the healthcare sector, enabling Islamabad tap around $500 million export potential in the neighbouring country. Stock performance soars Market sentiment has surged in response to these developments. The pharmaceutical sector's value climbed 194% year-to-date, far outpacing the KSE-100 Index (which rose 84%), it was learnt. For the first time in years, pharma stocks are among the top-performing equities at the Pakistan Stock Exchange (PSX). Haleon posted a staggering 436% gain year to date, Glaxo rose by 362%, Macter gained 315%, while AGP is expected to continued performing well this year; 2025. PPMA continues to advocate for a rule-based, transparent pricing mechanism for the sector, while ensuring that essential drugs remain affordable and accessible. The association is also calling for strengthened collaboration with the Drug Regulatory Authority of Pakistan (DRAP) and the Ministry of Health to prevent market abuse, reinforce public trust, and build a more innovation-driven ecosystem. 'This is not just a recovery story—it's a growth story,' said the former PPMA chairman. 'The reforms have given Pakistan's pharmaceutical industry a new identity: competitive, credible, and caring.' Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Automotive
- Business Recorder
Treet Corporation: Charging ahead or facing headwinds?
Treet Corporation Limited (PSX: TREET) has delivered a robust financial performance, marked by strategic initiatives aimed at leveraging improving economic conditions. However, several critical challenges and risks must be considered alongside these positive developments. During 1HFY25, TREET posted an unconsolidated topline of Rs6.5 billion, representing a 16 percent year-over-year increase compared to Rs5.6 billion in 1HFY24, driven primarily by a 22 percent YoY increase in prices. Earnings for the period significantly rebounded to Rs647 million from a loss of Rs206 million during 1HFY24, buoyed by a notable profit of Rs594 million from the sale of shares in Treet Battery Ltd. (TBL). Following this divestment, the company's holding in TBL now stands at approximately 82-83 percent. Economic indicators indeed point to recovery, resulting in heightened consumption and a favorable investment climate, positively impacting the battery industry. The automotive segment has notably benefited from declining financing rates, prompting increased vehicle sales and thus boosting demand for vehicle batteries. Passenger car sales alone rose 51.3 percent during the first half of FY2025, reaching 46,398 units due to surging remittances and lower interest rates. While Treet's Daewoo maintenance-free vehicle batteries, employing advanced Korean technology, appear strategically aligned with these growth trends, sustaining competitive advantage amidst heightened industry rivalry remains critical. TBL specifically reported revenues of Rs4.2 billion, marking a 16 percent YoY increase driven by a significant 22 percent rise in sales volume, reaching 350,000 units. Management is also exploring entry into the Lithium-Ion battery market, pending the results of an ongoing feasibility study. Additionally, with decreasing net metering buyback rates, the company expects growing demand for backup-based solar setups, identifying solar energy as a promising growth avenue. Moreover, demand for backup power solutions is projected to grow in the second half of FY2025 due to historically higher temperatures and limited grid reliability. Although Treet Batteries has sufficient spare capacity and advanced manufacturing facilities, maintaining high-quality products and reliable after-sales service remains vital for market share expansion. Internationally, Treet's export strategy, covering 40 countries—including key markets such as China, Saudi Arabia, and Africa—is strengthened by its recent establishment of physical presence in the Middle East, complemented by an impending warehousing agreement. However, geopolitical tensions and global economic volatility necessitate careful management and strategic flexibility. Treet's pharmaceutical subsidiary, Renacon, also exhibited robust growth, recording revenues of Rs801 million in 1HFY25, up 24 percent YoY from Rs643 million in the previous year. This growth was fueled by a 17 percent increase in sales volume and a 6.4 percent increase in average unit prices. Renacon maintains a dominant market share (60-65 percent) in dialysis solutions locally and charges premium pricing compared to competitors. Nevertheless, profitability is anticipated to experience short-term pressure due to borrowing costs associated with the new production facility. Furthermore, Renacon aims to boost the international market presence by registering dialysis solutions in 10 countries. Financially, Treet Batteries holds impressive gross margins and an efficient cash conversion cycle relative to competitors, but maintaining this performance amid fluctuating input costs and potential supply chain disruptions presents ongoing challenges. Additionally, while Treet's product diversification into shaving foam and disposable razors highlights strategic intent, penetrating new markets and maintaining brand loyalty will demand careful execution. Given these promising yet challenging developments, will Treet Corporation Limited effectively adapt to shifting market dynamics and competitive pressures to secure its future growth? Time will tell.
Express Tribune
21-03-2025
- Business
- Express Tribune
ECC clears Rs2b grant to resolve media advertisement dues
Listen to article The Economic Coordination Committee (ECC) has approved several financial grants including a Technical Supplementary Grant (TSG) of Rs2 billion from the Ministry of Information and Broadcasting's allocated budget of Rs5.6 billion. The grant will be used to clear outstanding advertisement dues owed to media houses, according to an official statement. The decisions were made during an ECC meeting chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Friday. In addition to the media-related grant, the ECC approved a TSG of Rs430 million for the Ministry of Defence to execute SAP schemes in Punjab for the current fiscal year. The Committee also sanctioned Rs250 million as government-paid-up capital for the Jinnah Medical Complex & Research Centre (JMC&RC) in Islamabad to support the establishment of a 1,000-bed academic medical centre. However, the ECC instructed JMC&RC to submit a detailed breakdown of expenditures and planned activities before requesting additional allocations. Further, the ECC reviewed a proposal from the Finance Division regarding the phasing out of the State Bank of Pakistan's (SBP) long-term financing facility (LTFF) for Exim Bank. It was decided that the SBP's Rs330 billion LTFF portfolio would transition gradually to Exim Bank, with an initial Rs1 billion allocated through a TSG to cover the LTFF subsidy for FY 2025.
