Latest news with #Rs547
Express Tribune
29-06-2025
- Business
- Express Tribune
K-P budget leaves hopes in the dust
Where the budget for the fiscal year 2025-2026 shattered people's hopes of a new mega transit or development project for Khyber-Pakhtunkhwa (K-P), it simultaneously hit the province's ailing industry by imposing new fixed and additional taxes on the business classes. Reportedly, the total budget for the upcoming fiscal year has been estimated at Rs2119 billion while the annual total expenditure has been estimated at Rs1962 billion. The budget has been kept at a surplus of Rs157 billion while the allocation for the annual development program has been kept at Rs547 billion. Despite some tax relief, the scope of new taxes and old taxes has been expanded in the budget. According to the finance bill, a ten per cent property tax will be collected from institutions including government, semi-government, development finance, corporate, autonomous, public limited, public sector, private commercial, and distribution businesses, warehouses and guest houses in case of renting or leasing buildings or lands. Similarly, a fifteen per cent tax will be collected from all banks and financial institutions, five per cent from private hospitals, five per cent from medical stores and other businesses related to the health sector. Likewise, a five per cent tax will be levied on endowment land or property used for business purposes. In an interview with The Express Tribune, economist and lecturer at the University of Peshawar, Dr Sanam Khattak cautioned that the proposed tax increases in both the federal and provincial budgets may be too heavy for the province to bear. "Extending the tax net would not only impact the business community but would also increase the prices of daily commodities. Citizens are already burdened with multiple taxes like sales tax, duty tax, excise tax, TV tax, and numerous federal levies. Under such circumstances, the government should focus on offering tax relief rather than imposing further increases. With purchasing power drastically reduced, even the poorest families are struggling under inflationary pressure and taxes. Charging taxes on already unaffordable essentials goes against the principle of equity," explained Dr Khattak. Dr Khattak further explained that given low purchasing power, stagnant incomes and small industry closures, a budget focused on tax hikes presented new economic threats to the province. "While the government aims to boost revenue, increasing taxes under current economic strains may lead to a "bubble effect", with businesses already suffering from energy crises facing further losses," predicted Dr Khattak. Similarly, K-P Chamber of Commerce and Industry President Fazal Muqeem Khan opined that the increased taxes will not have a good impact on the business community. "Currently, half of the 500 factories in the Hayatabad Industrial Zone in Peshawar are closed while seventy per cent of industry in the Gadoon Industrial Estate Swabi is also nonfunctional. Facilities should be provided to small businesses and large units. The government should take interest in providing loans to traders from banks on easy installments, and not impose new taxes or increase the rate of old taxes," said Khan. Conversely, K-P Finance Advisor Muzammil Aslam expressed his satisfaction with the recent budget. "Due to the opposition government in the province, the federation is not paying us the arrears. The government has achieved 93 per cent of the revenue generation target in the province. No new taxes have been imposed in the budget while some taxes have been reduced," claimed Aslam. Criticizing the budget for rewarding its members, K-P Assembly Opposition Leader Dr Ibadullah claimed that the Assembly had not given even a single penny from the previous budget. "The opposition has been sidelined again. Development projects in the corruption-ridden province will again be a victim of corruption. The opposition was not even consulted in the preparation of this budget. The suggestions we had given were not discussed. This budget is nothing but a manipulation of words," lambasted Dr Ibadullah.
Arab News
20-04-2025
- Business
- Arab News
Pakistan's central bank launches ‘Go Cashless' drive at Karachi mall to promote digital economy
KARACHI: The State Bank of Pakistan (SBP) on Saturday launched its 'Go Cashless' campaign in the southern Karachi port city, aiming to promote digital payment solutions and accelerate the country's transition toward a cashless economy. The initiative, inaugurated by SBP Deputy Governor Saleem Ullah at a local mall in the Clifton neighborhood, is part of broader efforts to enhance financial inclusion and document the economy through increased adoption of digital transactions. 'This 'Go Cashless' campaign is not just an event,' he was quoted in a statement released by the central bank. 'It is part of a broader vision to accelerate Pakistan's transition toward a digital economy. The campaign, organized in collaboration with 12 leading financial institutions, seeks to educate vendors and customers about the benefits of digital payments. It is also designed to highlight the SBP's preference for a cash-lite economy where digital payments become the preferred choice for all, from small vendors to large retailers. Pakistan has witnessed significant growth in digital transactions in recent years. The SBP statement informed its instant payment system, Raast, processed over 892 million transactions amounting to Rs20 trillion ($72 billion) since its launch in 2021. In the second quarter of fiscal year 2025 alone, Raast handled 795.7 million transactions worth Rs6.4 trillion ($23.04 billion). The central bank highlighted mobile and Internet banking have also witnessed substantial growth, with a 62 percent increase in the number of transactions. Digital transactions grew by 35 percent in FY24, with volume increasing from 4.7 billion to 6.4 billion, and their value reaching Rs547 trillion ($1.97 trillion). The SBP's efforts align with Pakistan's broader economic reforms aimed at strengthening financial systems and increasing transparency. By promoting digital payments, the central bank can also document the economy more effectively and bring more individuals and businesses into the formal financial sector.
