Latest news with #Rs550
Business Recorder
17 hours ago
- Business
- Business Recorder
Over Rs550m ‘irregularities' detected in ANF
ISLAMABAD: Over Rs550 million in financial irregularities within the Anti-Narcotics Force (ANF), unauthorized retention of 335 confiscated vehicles, misuse of over 220 kanals of government land, premature payment of Rs20.5 million in cash rewards, and irregular rent payments amounting Rs5.7 million was exposed by the Auditor General of Pakistan's (AGP) Audit Report for 2024-25. These findings underscore systemic weaknesses in the ANF's operations and a persistent disregard for government financial rules, particularly in the organization's regional directorates in Karachi and Peshawar. One of the most troubling findings centers around the Regional Directorate of ANF in Peshawar, which has failed to auction or transfer hundreds of kanals of land and several valuable properties confiscated in narcotics-related cases, even years after the courts had ruled in favour of the government. Not only have these properties remained idle, but some have been repurposed for unauthorized use, including staff residences and vehicle parking facilities. Notable properties include a house in Faisal Colony, Peshawar; 'Muhammad Manzil' at Khyber Bazaar; and vast lands in Mouza Kamobh and Mouza Malkandher. These properties, meant to be auctioned or transferred to government departments under the relevant disposal rules, have instead been informally occupied by the ANF. The audit viewed this prolonged misuse as a direct violation of the Frozen or Forfeited Drug Assets Disposal Rules, 2010, and recommended immediate corrective measures, including public auction or lawful transfer, along with fixing responsibility on the officials involved. Similarly, the directorate failed to auction 335 confiscated vehicles — despite court decisions having been finalized in favour of the government. These vehicles, seized from smugglers and drug dealers, were lying unused till June 2024. The audit expressed concern over the risk of deterioration and potential misuse of these assets, stating that the delay has caused avoidable losses to the government. Under the Disposal of Vehicles Rules, such assets should have been sold through open bidding to ensure transparency and optimal returns. The report also uncovered an irregular expenditure of Rs5.7 million by the Regional Directorate in Karachi, paid as rent for an office building at a rate higher than what was approved by the Ministry of Housing and Works. Despite clear instructions that any enhanced rental agreement must be approved by the Finance Division along with proper documentation — including space entitlement, owner consent, and a certified property map — the ANF entered into an agreement and made payments without fulfilling these conditions. The audit declared this a violation of financial procedures and urged that the expenditure be regularized through the Finance Division and such practices be immediately discontinued. Another serious issue pertains to the disbursement of Rs20.516 million in cash rewards by the ANF Peshawar office to raiding parties and informers during the 2023-24 financial year. These payments were made immediately after raids were conducted, even though many cases were still under judicial process. In some instances, suspects were later acquitted or granted bail. The audit noted that there was no mechanism in place to evaluate the performance or outcomes of these raids, making such early rewards highly questionable. It emphasized that any reward system must be linked to legal outcomes and measurable performance indicators, and recommended the establishment of a formal evaluation framework to ensure accountability and fairness in reward distribution. In nearly all cases cited, the ANF failed to respond to audit queries or convene Departmental Accounts Committee (DAC) meetings, despite multiple reminders sent between November 2024 and January 2025. This lack of response further underscores the internal governance and oversight failures within the organization. The audit recommended that the government take urgent steps to enforce financial discipline in the ANF by regularizing irregular expenditures through the proper authorities, ensuring the timely auction or transfer of confiscated properties and vehicles, establishing a robust performance-based reward system, and holding accountable those responsible for prolonged misuse and administrative neglect. In a time of fiscal constraint, the audit stressed that public assets must be managed transparently and in strict accordance with laws to avoid further losses to the state. Copyright Business Recorder, 2025
Express Tribune
21-07-2025
- Business
- Express Tribune
Are stabilisation measures backfiring?
Under the emerging situation, the people are facing unemployment and underemployment and this scenario is grave from the socio-political point of view. photo: file Listen to article The stabilisation measures have impacted the real economy a great deal. The market economy has been growing slowly, as indicated by the statistics of GDP. The current account surplus from July to May 2025 remained around $1.8 billion. This surplus has been achieved at the expense of imports, where deliberate attempts have been made to scale down imports in the last couple of years. In addition, remittances of around $38 billion also helped in achieving the surplus. The massive import compression, started in FY2023 to stabilise the economy, has produced results. This compression played an important role in bolstering the foreign exchange reserves held by the State Bank of Pakistan (SBP), which have crossed $14 billion. If the economy operates at the current level, foreign exchange reserves will cover around 2.5 months of merchandise imports, since imports remained around $58 billion in FY2025. Apart from rollover of commercial loans from China, the SBP intervened in the foreign exchange market to fulfil the target of foreign exchange reserves agreed with the International Monetary Fund (IMF). On the monetary front, the SBP has kept the policy rate at 11% to attract international financial capital. This high rate will attract hot money to finance the current account in the event it turns into deficit. The growth in imports is linked with the growth in the real economy, which will turn the current account surplus into a deficit. As the level of aggregate demand is low, business firms cannot sell their products to consumers. Furthermore, the level of aggregate demand remained low owing to regressive taxation and high energy costs. The gas prices have been revised upward in FY2026, while electricity prices are already at an elevated level. The higher international crude oil prices have started to affect the masses. The salaried class has paid around Rs550 billion in income tax in FY2025, and the tally would remain around this level in the current financial year. All these measures have reduced the purchasing power of consumers. Many firms have invested in treasury bills, bonds, and Sukuk, since these firms intend to remain liquid. A whopping Rs13.5 trillion has been parked by the corporate sector in bills, bonds, and Sukuk till December 2024. Business firms did not enhance investment in the capital development of the country. As a result, the index of the Large-Scale Manufacturing sector has decelerated by 1.2% in the eleven months of FY2025. The government did spend around Rs1,050 billion through the Public Sector Development Programme (PSDP) in FY2025. The tight-fisted Ministry of Finance (MoF) allowed the release of a large chunk of the budgeted funds in the last quarter. The development funds have been diverted from development projects to meet the primary budget surplus. The tight fiscal and monetary policies have also reduced the level of economic activity a great deal. The high debt servicing cost has further reduced the fiscal space of the government. Under the Extended Fund Facility (EFF), the government intends to bring down the fiscal deficit to around 6%. This reduction in the fiscal deficit can be achieved by scaling down development expenditure. The impact of low development expenditure has already affected the cement, steel, glass, and allied manufacturing sub-sectors. In addition, the construction sector remained dull in the outgoing financial year. In a nutshell, stabilisation measures have started to implicate the masses a great deal. Under the emerging situation, the people are facing unemployment and underemployment. The level of unemployment is high for university graduates. This situation is grave from the socio-political point of view. Will policymakers take stock of the situation? THE WRITER IS AN INDEPENDENT ECONOMIST
Time of India
03-07-2025
- Automotive
- Time of India
30 New E-Buses Remain Idle As Charging Infra Not Ready
1 2 3 Nagpur: Even as Nagpur Municipal Corporation (NMC) has inducted 30 new air-conditioned electric buses into its Aapli Bus fleet on June 22 with much fanfare in the presence of chief minister Devendra Fadnavis, the vehicles remain idle due to absence of charging infrastructure. These buses are part of the long-pending 250 e-bus project sanctioned by Fadnavis in 2023. Though delivered by Hansa Vahan India Pvt Ltd, which is implementing the project in partnership with Pune-based EKA Mobility, the firm's permanent charging depot at Wathoda is still under construction and will take another four to six months to become operational. To avoid further delay in deploying the new buses, the firm has approached existing Aapli Bus operators — EV Trans and PMI Electro Mobility — for temporary access to at least three charging points each at either their Wadi or Lakadganj depots. NMC has also temporarily allotted space at Matrushakti E-Depot in Lakadganj for setting up provisional charging stations. The arrival of these 30 e-buses increases Nagpur's electric bus fleet from 230 to 260, and the overall Aapli Bus fleet to 539, including 150 midi buses, 45 mini buses, and 237 standard diesel buses procured under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme. Many of the diesel buses have already crossed their 15-year lifespan. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like "밤새 나던 종아리 쥐가 사라졌어요!', 막힌 혈관 찌꺼기 싹~ 청소한 "이것.' 대박이네!! 카이스트 건강비결 더 알아보기 Undo In the first phase, NMC scrapped 123 such buses and plans to phase out more as new electric buses arrive. The goal is to gradually replace the ageing fleet with zero-emission alternatives. The Rs550 crore electric bus project faced multiple delays on account of several factors, including the enforcement of model code of conduct for the Lok Sabha and state assembly elections. The project gained traction only in 2024 after NMC awarded the contract to Hansa Vahan. In addition, NMC expects the first batch of 150 e-buses under Pradhan Mantri e-Bus Sewa scheme to arrive next month and has sent a proposal for another 240 e-buses. "We aim to fully electrify the city's public transport fleet by 2029," a senior official said.
Express Tribune
22-06-2025
- Business
- Express Tribune
Pakistan's moment for structural reforms
Listen to article After years of economic stagnation and firefighting to avert default, the government is finally pivoting towards long overdue structural reforms, buoyed by a markedly improved macroeconomic outlook. Inflation, which had surged to 38% in mid-2023, has plunged to a six-decade low, prompting the central bank to slash interest rate from 22% to 11%. The exchange rate has stabilised around Rs280 per dollar, foreign currency reserves now cover nearly three months of imports and falling global oil prices have eased fiscal pressures. With this breathing space, the government is seizing the opportunity to take bold decisions and advance long-pending reforms. Among the boldest reforms underway is the overhaul of Pakistan's import tariff regime. The government has rolled out a five-year plan to transition from one of the most inward-looking and protectionist economies to a more open, export-oriented model akin to East Asian success stories. The reform sets an ambitious target: reducing the maximum tariff rate from over 100% to just 15%. This includes the complete removal of regulatory duties, currently ranging from 5% to 90%, and additional customs duties of up to 7%. Pakistan's current tariff structure is not only excessively high but also deeply fragmented, riddled with exemptions and privileges extended to favoured sectors and industries. These special treatments cost the government an estimated Rs550 billion annually, nearly half of all customs revenue. Removing such distortions will help level the playing field, especially for small and medium enterprises (SMEs) that form the backbone of the economy. Lower tariffs will lower input costs for domestic manufacturers, enhance competitiveness and encourage firms to target export markets. A detailed analysis shows that these changes are likely to increase productivity, attract foreign investment and stimulate job creation. Consumers will also benefit through greater access to high-quality, affordable products. In short, this is not just a trade policy shift; it is a foundational move to unlock economic dynamism. Complementing tariff reform is a drive to cut red tape. The government has finalised 63 regulatory reforms aimed at simplifying and digitising business procedures. These will be rolled out over the next 15 to 90 days, easing compliance and reducing the cost of doing business. The power sector, long a major constraint on growth and fiscal stability, is undergoing significant reform. Following a review of independent power producer (IPP) contracts, a key breakthrough has been the approval of a financial restructuring plan to eliminate Rs1.275 trillion in circular debt through an agreement with commercial banks. Electricity tariffs have been reduced by over 30% for industry and by more than 50% for 18 million protected households. Distribution companies (DISCOs) are now overseen by professional boards and improved governance has already cut losses by Rs140 billion in just nine months. Debt management has seen a breakthrough with Pakistan's first debt buyback programme. Debt worth Rs1 trillion has been repurchased, saving over Rs850 billion in interest payments under refinancing arrangements. Combined with fiscal consolidation and restrained development spending, the overall fiscal deficit has narrowed to 5.6% of GDP in FY2025, down from 6.9% in the previous year. State-owned enterprises (SOEs), long a major fiscal drain costing over Rs1 trillion annually, are finally on the path to reform. Privatisation is gaining real traction: five serious investor consortiums have expressed interest in acquisition of Pakistan International Airlines (PIA), slated for privatisation in FY2025-26. Meanwhile, the process is advancing steadily for seven electricity distribution companies and two generation companies (Gencos). Reforms in the pension system, a politically sensitive area, have also begun. These include linking pension increases to the Consumer Price Index (CPI), limiting pension duration to 10 years after a pensioner's death (for spouses only), capping multiple pensions and requiring pensioners re-employed in the public sector to choose between a salary or a pension. Pakistan now stands at a rare moment of opportunity. The economic fundamentals are stabilising, inflation is down, the rupee is steady and fiscal discipline is improving. At the same time, a coherent set of structural reforms is being rolled out, targeting tariffs, electricity, SOEs, debt and the business environment. These are not cosmetic changes, but deep, systemic shifts designed to make the economy more competitive, equitable and future-ready. What matters now is persistence. Reforms will face resistance from vested interests, from inertia within institutions and from shifting political winds. But if this momentum can be maintained, Pakistan could finally escape the cycle of boom and bust and move towards sustained, inclusive growth. The writer is a Senior Fellow with the Pakistan Institute of Development Economics (PIDE). Previously, he has served as Pakistan's ambassador to WTO and FAO's representative to the UN at Geneva
Express Tribune
19-06-2025
- Business
- Express Tribune
Salaried class slams 719% rise in tax burden
Listen to article Representatives of the Salaried Class Alliance Pakistan have raised serious concerns over the proposed Finance Bill 2025-26, calling it unfair to the country's most tax-compliant group. Speaking at a press conference at the Karachi Press Club on Thursday, alliance members Bilal Farooq Alvi, Rizwan Hussain, Adeel Khan, and Lesha Fazal said salaried individuals have seen their tax contributions rise from Rs76.44 billion in FY2018-19 to over Rs550 billion in FY2024 -25 — a jump of nearly 719%. They said this increase reflects inflation and policy changes, not real income growth. Key concerns include taxation on pension funds, increased taxes on bank and mutual fund profits, and the continued 10% surcharge on high-income earners, while undocumented sectors remain untaxed. They urged the government to raise the tax-free salary slab to Rs100,000 per month, restore earlier slab rates, reduce the top slab to 32.5% and the second-highest to 27.5%, and keep the lowest slab at 1% as per the budget speech. They also demanded the reinstatement of tax credits for insurance, education, and investments, removal of the 10% surcharge, and equal treatment of all taxpayers.
