Latest news with #Rs540
Express Tribune
03-04-2025
- Business
- Express Tribune
Poultry prices remain sky-high in Hazara
Even after three days of Eidul Fitr, poultry prices in various districts of the Hazara region have not decreased, maintaining an all-time high surge witnessed during the last two days of Ramazan. Despite the issuance of official price lists by the district administrations of Abbottabad, Mansehra, and Battagram, poultry and meat are still being sold at inflated rates in several areas, raising concerns among consumers. According to the latest price list, chicken is being sold at Rs540 per kg, while breeder chicken is priced at Rs400 per kg. In Mansehra, the price of farm chicken has been fixed at Rs545 per kg, whereas in Battagram, it has reached Rs555 per kg, making it the highest in the region. However, reports indicate that in several parts of Mansehra and other districts, poultry meat is being sold at significantly higher rates than the official prices. Consumers have expressed frustration over the lack of enforcement by the district administrations and have urged authorities to take strict action against profiteers. Poultry traders, on the other hand, attribute the price hike to increased demand during the Eid holidays, supply chain disruptions, and rising feed costs. Local residents have called upon the relevant authorities to conduct strict price monitoring and ensure that the official price lists are implemented effectively to provide relief to consumers.
Express Tribune
22-03-2025
- Business
- Express Tribune
Govt moves to abolish hidden subsidies
The government on Monday approved to transfer Rs330 billion worth subsidized export financing schemes from the central bank to the federal exchequer as part of its commitment with the International Monetary Fund to abolish hidden subsidies and bring transparency. The Economic Coordination Committee (ECC) of the cabinet took the decision to move the long-term financing facility from the State Bank of Pakistan's balance sheet to the Export-Import Bank (Exim) bank. The ECC also approved Rs1 billion subsidies for financing the scheme for the remainder of this fiscal year. Finance Minister Muhammad Aurangzeb chaired the ECC meeting. Under the $7 billion bailout package, Pakistan has assured the IMF that it would end the central bank's involvement in the refinancing schemes and completely transfer these schemes by the year 2028. With the fresh decision, about 30% of the total subsidized schemes are being shifted to the Exim Bank. A Finance Ministry handout stated that the ECC discussed a summary presented by the Finance Division regarding the phasing out of the State Bank of Pakistan's long-term financing facility (LTFF) to Exim Bank. The ECC decided that the SBP's LTFF portfolio of Rs330 billion would be phased out to the Exim Bank, with an allocation of Rs1 billion through a Technical Supplementary Grant to meet the LTFF subsidy requirement for the new portfolio for FY 2025. The long-term facility is offered to the exporters at 3% lower than the policy rate and the government also pays 2% interest cost to the Exim bank for managing the scheme. According to the Memorandum for Economic and Financial Policies (MEFP), the government has assured the IMF that it will refrain from involvement, or influence in, decisions allocating credit. It will also refrain from sectoral disbursement targets and instead accelerate work to remove barriers to credit in the respective sectors. Till a few years ago, the central bank was highly subsidizing the Export Facilitation Scheme and the Long-Term Financing Facility, which had made the tight monetary policy ineffective and created monetary transmission issues. The government was required to prepare an action plan for better targeting of the subsidized schemes by end-December 2024 and starting its implementation by end of this month. The IMF had been informed that the commercial banks have managed the transition smoothly and capacity at Exim Bank has been strengthened sufficiently. The commercial banks are handling the Export Finance Scheme from their own liquidity but the Finance Ministry is paying the interest rate differential from the budget. In addition to handling the Rs330 billion transferred portfolio, the Exim Bank will also handle a fresh long-term financing portfolio of Rs210 billion, bringing the total size of these subsidized loans to Rs540 billion. The taxpayers will bear the subsidy cost of Rs91.5 billion on the total Rs540 billion portfolio till the year 2036 when these loans would mature. The ECC also approved a summary from the Ministry of Information and Broadcasting, seeking a supplementary grant of Rs2 billion from its allocated budget of Rs5.6 billion. The approved grant will be used to meet the liabilities of payments for outstanding advertisement dues owed to media houses, according to the Finance Ministry. The ECC further approved a proposal from the Ministry of Defence for a supplementary grant of Rs430 million for the execution of schemes in the province of Punjab during the current financial year. The Committee also approved the allocation of Rs250 million as the government's paid-up capital for the operations of the Jinnah Medical Complex & Research Centre (JMC&RC) Company. This allocation will support the establishment of a state-of-the-art, 1,000-bed academic medical centre in Islamabad, it added. However, the ECC directed the company to provide a detailed breakdown of the expenditures and activities to be covered by the approved Rs250 million before seeking further allocations. The ECC also approved a summary from the Finance Division for a supplementary grant of Rs24.6 million or $87,671at an exchange rate of Rs280.1 per dollar to Mrs. Lia Bomba of JAED Textile Pvt Ltd, Sydney, Australia, in compliance with the instructions of the Supreme Court of Pakistan.
Express Tribune
14-03-2025
- Express Tribune
FIA raids Nadia Hussain's house over bribery allegations against officer
Listen to article The Federal Investigation Agency (FIA) has initiated an inquiry under the Prevention of Electronic Crimes Act (PECA) against model and actress Nadia Hussain after she accused an FIA officer of demanding a bribe on social media. Sources revealed that the FIA Cyber Crime Team also conducted a raid at Hussain's house. FIA officials clarified that the officer in question was not part of their staff but rather a fraudster as the scammer had used the profile picture of an FIA officer and contacted Nadia Hussain, demanding a bribe. The actress was informed that the fraudster, who claimed to be an FIA official, had specifically used a photo of an officer as his display picture on social media. Authorities advised her to report the incident to the Cyber Crime Reporting Center in Karachi. FIA officials revealed that the fraudster is from Vehari and would be apprehended soon. However, rather than following the guidance, Hussain chose to make a public statement on social media. Making unfounded accusations on social media is considered a criminal act under the law. In response, the FIA's Cyber Crime Wing in Karachi has officially launched an investigation under the PECA Act. FIA officials stated that no individual should be allowed to spread baseless propaganda without evidence. They further stated that Hussain's allegations not only contradicted the facts but also attempted to damage the reputation of a legitimate institution, which is a serious offense. It's important to note that the FIA Corporate Crime Circle in Karachi had recently arrested the former CEO of Bank Alfalah Securities, Atif Mohammad Khan, on March 8 in connection with a Rs540 million embezzlement case. The accused was found to be involved in financial fraud, abusing his authority as CEO. Atif Mohammad Khan is also Hussain's husband.
Express Tribune
04-03-2025
- Business
- Express Tribune
IMF talks begin amid tax challenges
In the first half of FY25, the economic slowdown, exchange rate stability, lower-than-expected inflation, and sluggish LSM recovery led to a revenue loss of Rs338 billion. photo: file Listen to article Pakistan has made a strong start in talks with the International Monetary Fund (IMF), and the tax shortfall is expected to be significantly lower than Rs1 trillion due to anticipated large recoveries in court, Finance Minister Muhammad Aurangzeb said on Tuesday. Aurangzeb stated that the shortfall would be considerably less than Rs1 trillion and that the government would take several steps, including ensuring recoveries from court cases. He spoke to The Express Tribune after the formal opening of Pakistan-IMF negotiations, which will continue until March 14. However, sources revealed that the global lender had been informed that, due to lower-than-projected autonomous growth, the Federal Board of Revenue (FBR) suffered a loss of approximately Rs450 billion by February. No further shortfall on this account is expected until June. Additionally, another Rs540 billion in losses are anticipated due to weak responses to policy measures. The government has struggled to break the strong lobby of traders and the real estate sector. This results in a total revenue shortfall of Rs990 billion, stemming from low economic growth, weak enforcement against traders and real estate, and overestimations of new tax measures introduced in the budget. Despite these setbacks, the IMF was informed that some of these losses would be recovered through court cases related to tax matters. The government set an annual target of Rs12.97 trillion, and after adjusting for these losses, collections are expected to fall below Rs12 trillion, sources said. The finance minister expressed optimism about the talks, stating that the government expects a positive outcome. He also confirmed that Pakistan would discuss the framework for the next budget with the IMF during the ongoing negotiations to create fiscal space for relief measures. "We had a good start in talks today, and the Fund also had productive meetings in Karachi on Monday with the Pakistan Banks Association and the Pakistan Business Council," Aurangzeb said. For the first time, the IMF is holding separate meetings with the State Bank of Pakistan (SBP) and the federal government in different cities, deviating from the previous good practice of conducting all negotiations in one location. Pakistan and the IMF are conducting talks from March 3 to 14 for the first review of the $7 billion package. The discussions will gauge the implementation of agreed conditions for the July-December period of the current fiscal year. A successful review will pave the way for the release of the second loan tranche of over $1 billion. Following a separate meeting in Karachi with the SBP governor, IMF Mission Chief to Pakistan Nathan Porter opened talks with the finance minister in Islamabad. In his briefing, Porter discussed the FBR, the power sector, and the Pakistan Sovereign Wealth Fund (PSWF). He also acknowledged the introduction of agricultural income tax laws in the provinces. On Tuesday, the IMF team held multiple rounds of discussions with the FBR regarding tax collection performance during the current fiscal year. The FBR's eight-month revenue shortfall stood at Rs606 billion, which could rise to nearly Rs1 trillion by June if corrective measures are not taken. The IMF was informed that the government aims to recover approximately Rs300 billion from the Rs4 trillion stuck in court cases. An additional Rs100 billion is expected to be generated by lowering taxes on beverages and cigarettes, sources said. Prime Minister Shehbaz Sharif, during a special open cabinet meeting, stated that the government is working expeditiously to secure court decisions in tax cases involving Rs4 trillion. He highlighted the Rs23 billion recovered in the windfall income tax case, which was ruled in the government's favour by the Sindh High Court last week. The prime minister directed authorities to recover at least Rs500 billion from the Rs4 trillion stuck in court cases by June. Attorney General for Pakistan Mansoor Awan informed the cabinet that the legal team would closely monitor these cases. Awan further stated that tax cases have been delayed due to outdated legal procedures adopted by the FBR. However, with the prime minister's intervention, these mechanisms have been revised. Despite this, the government has provided a conservative estimate of Rs300 billion in recoveries to the IMF, FBR officials said. However, the Supreme Court of Pakistan recently ruled against the government in multiple tax cases, indicating that not all pending cases may be decided in favour of the tax authorities. In the past, the IMF has been sceptical of the government's claims regarding revenue collection from pending court cases and enforcement measures. The IMF's scepticism has often been validated. It remains unclear whether the IMF will accept the government's claim that Rs300 billion will be recovered this time. If the IMF does not accept the government's projections, the Ministry of Finance will need to find alternative ways to reduce expenditures. Development spending has already been curtailed and may face further cuts. According to the FBR's analysis, in the first half of the fiscal year, the economic slowdown, exchange rate stability, lower-than-expected inflation, and sluggish recovery in large-scale manufacturing led to a revenue loss of Rs338 billion. By the end of February, this gap had widened to Rs450 billion, sources said. The government assured the IMF that the economy is expected to recover from March onward, preventing further revenue losses due to autonomous growth in the March-June 2025 period. Aurangzeb told The Express Tribune that many policy measures did not yield the expected revenue results.
