Latest news with #Rs86
Express Tribune
02-06-2025
- Business
- Express Tribune
Govt approves Rs1tr uplift budget
The government on Monday approved a Rs1 trillion federal development budget and set the economic growth target at 4.2% for the next fiscal year, as Planning Minister Ahsan Iqbal said that the development budget cuts could compromise economic growth and delay strategic projects. The Annual Plan Coordination Committee (APCC) approved a record Rs4.1 trillion national development outlay, primarily backed by a Rs2.8 trillion financing envelope from the four provinces. Despite limited resources, the Sindh government secured Rs86 billion from the federal Public Sector Development Programme (PSDP), leveraging its alliance with the ruling coalition. "The Pakistan Peoples Party took advantage of being an ally of the government that is dependent on its vote for the budget," said a cabinet minister. Planning Minister Ahsan Iqbal, speaking after chairing the APCC meeting, said the Rs1 trillion PSDP includes Rs120 billion earmarked for the N-25 Quetta-Chaman-Karachi expressway. He confirmed that the committee had also approved a 4.2% growth target and a 7.5% inflation target for the fiscal year 2025-26. These recommendations will now be submitted to the National Economic Council for final approval, said Iqbal. He identified top-priority projects for the upcoming year, including the Diamer Basha Dam, the Karakoram Highway, the Hyderabad-Sukkur Motorway, and the N-25 Expressway from Karachi to Quetta. However, he expressed concern that the remaining Rs880 billionafter accounting for the expresswaywould be inadequate, potentially compromising future economic growth. He added that enhancing the development budget would be impossible without a significant increase in tax revenues. "The water sector is our priority but due to limited resources and with current allocation, it will take 20 years to complete the Diamer Basha dam project," said Iqbal. He maintained, however, that the government would strive to allocate maximum resources to ensure its completion within the next three to four years. Ironically, despite increasing threats from India over water security, the federal water sector allocation has been slashed by 45%or Rs119 billionbringing it down to Rs140 billion for FY2025-26. The planning minister reiterated that the commodity-producing sectors are expected to grow by 4.4%, led by a 4.5% recovery in agriculture and 3.5% growth in large-scale manufacturing. Exports are projected at $35 billion, while foreign remittances are expected to exceed $39 billion. "I am thankful to overseas Pakistanis who, despite calls to the contrary, sent $10 billion in additional remittances over the past two years," he added. The Rs1 trillion federal PSDP was finalised by a committee formed by Prime Minister Shehbaz Sharif. According to the APCC working paper, this year's development outlay is Rs300 billionor 8%higher than the previous year's budget. The four provincial governments are set to increase development spending by 28% from their own resources – enabled by substantial revenues under the 2010 National Finance Commission (NFC) award. Despite the record outlay, the Rs1 trillion federal PSDP is actually Rs400 billion lower than the originally approved budget for the current fiscal year. To fund this, the federal government plans to borrow Rs270 billion externally. The four governments plan to spend Rs2.8 trillion, higher by Rs609 billion or 28% over this year's original budget. Provincial governments will borrow Rs802 billion, while state-owned companies will spend another Rs288 billion outside the federal budget. Punjab leads provincial spending with a proposed Rs1.19 trillion allocation41% higher than last year. Khyber-Pakhtunkhwa (K-P) follows with Rs440 billion, reflecting a 63% increase. Sindh will spend Rs887 billion, up 7%, and Balochistan plans to spend Rs280 billion, marking an increase of Rs32 billion. KP's Finance Advisor, Muzzammil Aslam, criticised the federal government for allocating disproportionately less funding to his province compared to Sindh. "Only Rs3 billion were allocated to K-P, while Sindh received Rs47 billion. Punjab got Rs15 billion," he said. In response, Iqbal clarified that Rs70 billion has been allocated for K-P's merged districts and that the federal government is cutting back on spending for projects that fall under provincial jurisdiction. The APCC decided not to include any new provincial-nature projects in the PSDP due to fiscal limitations and imposed a moratorium on the approval of projects costing up to Rs1 billion until the International Monetary Fund (IMF) programme concludes. Despite these constraints, 30-40% of PSDP funds are still being directed to provincial-nature projects, which the planning ministry said has significantly hampered progress on large-scale national initiatives. In contrast, funding for the National Highway Authority (NHA) has increased by Rs49 billion, or 27%, to Rs229 billion. However, to accommodate the political priorities of coalition partners, the government has proposed sharp reductions in water and power sector budgets. The power sector's funding is down 41%or Rs72 billionto Rs104 billion. The federal education ministry's budget is reduced by 27% to Rs20 billion, while the Higher Education Commission will face a 32% cut, reducing its budget to Rs45 billion. Still, the government has retained Rs50 billion for parliamentarians' schemes under the Sustainable Development Goals Achievement Programme. Currently, 1,071 development projects with a total cost of Rs13.4 trillion are under implementation. These projects require an additional Rs10.2 trillion to be completed, and the planning ministry estimates it would take more than a decade to finish them all. Iqbal stated that the ministry has identified 183 slow-moving or problematic projectsmostly under the DDWPthat should be capped or closed by June 2025. "By capping or closing these projects, around Rs1 trillion could be saved, freeing up Rs100 billion immediately for fast-moving projects," he said.
Business Recorder
24-05-2025
- Business
- Business Recorder
NAB recovers, disburses over Rs88bn during 1st quarter of 2025
The National Accountability Bureau (NAB) recovered and disbursed over Rs88 billion during the first quarter of 2025 (January–March), it said in a press release on Saturday. The recoveries included direct recoveries worth Rs2.085 billion and indirect recoveries amounting to Rs86 billion, involving public and private lands associated with cases of illegal transfer and occupation. 'The disbursed amounts were returned to the relevant affected entities,' the statement read. Regarding indirect recoveries, NAB (Balochistan) retrieved state land measuring 340 acres of Chiltan Park and 250 acres of Forest department which translate into Rs6.45 billion, NAB (KPK) secured Rs0.56 billion in case titled inquiry against officers/officials of University of Swabi, Revenue and Forest departments, NAB (Lahore) recovered Rs70.87 billion in three mega cases including Employees Cooperative Housing Society, State Life Insurance Employees Cooperative Housing Society and Sarwar Omega Villas, NAB (Multan) recovered Rs0.013 billion in GFS 7 wonders housing Scheme while NAB(Sukkur) recovered 610 acres of NHA land worth of Rs8.53 billion. Housing scam victims: NAB Lahore disburses Rs1.34bn Regarding disbursement of direct recoveries, NAB transferred Rs9.72 million directly to the federal government, Rs10.80 million to provincial governments and Rs73.51 million to different department/financial institutions, etc. Further, a significant portion amounting to Rs19.90 billion has been directly distributed to 19,105 victims of various scams, according to NAB statement. This includes Rs72.04 million to 4,778 affectees of National House Building and Road Development Corporation by NAB (Rawalpindi), Rs1.168.26 billion to 11,855 affectees of Eden Housing Case by NAB (Lahore), Rs405.08 million to 989 affectees of SHG & Others case by NAB(Lahore), Rs111.08 million to 496 affectees of Arain City case by NAB (Rawalpindi), Rs109.15 million to 452 affectees of Toyota Motors Gujranwala case by NAB (Lahore), Rs23.56 million to 246 affectees of Gulshan-e- Rehman case by NAB (Rawalpindi) Rs12.07 million to 99 affectees of THG case by NAB (Lahore), Rs47.31 million to 60 affectees of Gilani Housing Corporation by NAB (Rawalpindi), Rs. 3.631 million to 78 affectees of Ahmed City Housing Scheme by NAB (Lahore) and Rs38.59 million to 52 affectees of other various scams. 'The recoveries made in the first quarter of 2025 has taken the NAB's overall recovery amount since its inception to Rs6.236 trillion, of which 62.92% (Rs3.92 trillion) were recovered in last 18 months. 'These recoveries were made from individuals and entities through plea bargains, voluntary returns and settlements,' the statement read.
Business Recorder
28-04-2025
- Business
- Business Recorder
MoF tells PD: Power sector subsidies tied to fiscal space
ISLAMABAD: The Ministry of Finance (MoF) has reportedly informed the Power Division (PD) that the allocation of power sector subsidies for the fiscal year 2025-26 will depend on the availability of fiscal space, well-informed sources in the Finance Division told Business Recorder. In a letter titled 'MEFP for EFF 2024-27 – Circular Debt (CD) Target for FY 2025-26,' the Power Division had sought indicative allocations for the upcoming fiscal year to bridge the circular debt gap. According to the Corporate Finance (CF) Wing of the Finance Division, budgetary allocations for the power sector in FY 2025-26 will be finalized through the standard budgetary process in consultation with the Budget and CF Wings of the Finance Division, keeping in view the prevailing fiscal constraints. Energy sector reforms: Govt makes new commitments to IMF Regarding the issue of advance subsidy, the Finance Division has already shared its stance with the Power Division to clarify its position. Sources revealed that the Finance Ministry did not endorse the Power Division's proposal to release an advance subsidy of Rs224 billion to address power sector cash flow and liquidity concerns, arguing that adequate funds have already been provided. On March 25, 2025, the Power Division shared a draft summary with the Finance Ministry for submission to the Economic Coordination Committee (ECC), requesting the release of the advance subsidy. However, the Finance Division responded that sufficient funds—amounting to Rs633 billion—had already been allocated under various budgetary heads in line with the Power Division's requirements. According to the Finance Ministry, a sum of Rs509 billion has also been allocated under Finance Division's Demand No 45 of CFY 2024-25 as per the requirement shared by Power Division during the budgetary process, as per the following break-up; (i) TDS-KE (arrears) Rs88 billion; (ii) Fata (arrears) Rs86 billion; (iii) additional subsidy Rs120 billion; and (iv) GPPs/IPPs (equity) Rs215 billion. The Finance Ministry further stated that as is clear, ample funds are available in the budget for the liquidity requirements of the power sector. The Finance Ministry, however, has recommended that the funds be utilised in the same manner as allocated in the budget. Therefore, the Finance Ministry has not supported release of funds of Rs171 billion in the form of either advance subsidy or equity as proposed in the summary. Alternatively, the sum of Rs174 billion could be released on account of 'arrears of subsidy in respect of TDS-KE (Rs88 billion) and Fata (Rs86 billion)' against verified claims. The sources said, the Finance Ministry's recommendation is based on the following factors: an amount of Rs264 billion, released as advance subsidy for TDS-Discos in the previous years, still remains to be adjusted against actual claims, as per the following details;(i) stimulus package Covid-19/TDS Discos: advance Rs106.890 billion - claims Rs91.107 billion- balance Rs15.783 billion;(ii) PM Relief Package/TDS-Discos: advance Rs69.225 billion- claims Rs60.437 billion- balance Rs8.788 billion;(iii) future claims FY 2021-22/TDS Discos- Rs100 billion – claims Rs o - balance Rs100 billion;(iv) future claims FY 2021-22/TDS Discos: advance Rs50 billion - claims 0- balance Rs50 billion;(v) flood relief package/TDS Discos: advance Rs24 billion- claims 0- balance Rs24 billion;(vi) flood relief package/TDS Discos: Rs10.340 billion- claims Rs 0 – balance Rs10.340 billion; and (v) revised claims for the period of November 2020 to October 2023/TDS Discos: Rs55.487 billion - claims Rs 0 – balance Rs55.487 billion. This shows that the amount of total advances were Rs415.942 billion, of which, claims were of Rs151.544 billion and balance of Rs264.398 billion. The Finance Ministry has further stated that advance subsidy amount to Rs170 billion, released on account of TDS-KE till December 2024, also remained to be adjusted. ECC in its decisions of October 15, 2020 and July 16, 2021 had directed that reconciliation of subsidy claims be carried out, which is still pending. During the audit of FY2023-24 the AGP has raised observations that the previous advances provided against KE-TDS have not been adjusted before authorizing new/fresh advances. The sources said, Finance Ministry has recently suggested to Power Division to consider reconciliation through third party to establish the exact payables/receivables position, which is also important in the context of the upcoming privatisation of certain entities. 'The relief extended to the protected categories for first three months of FY 2024-25 was required to be funded through savings of PSDP 2024-25 as per the Cabinet's decision, 'Finance Ministry said supporting Technical Supplementary Grant (TSG) for subsidy for subsidy from PSDP to Power Division. The Finance Ministry was also of the view that funds may be utilized against actual verified claims of Discos and K-Electric after completion of all codal formalities as provision of advance subsidy on that account is not required. Copyright Business Recorder, 2025
Express Tribune
15-04-2025
- Business
- Express Tribune
Industry backs early approval of solar projects
Listen to article Stakeholders from the industry and the government have voiced strong support for the early approval of centralised solar projects while citing their competitive tariffs and potential to reduce national electricity costs and subsidies. At a public hearing convened by the National Electric Power Regulatory Authority (Nepra) on K-Electric's (KE) auction evaluation reports for its 120-megawatt and 150MW solar projects in Deh Halkani and Deh Metha Ghar, respectively – both located in Sindh – the stakeholders shared their views on the proposed tariffs and project execution. The Request for Proposals (RFP) for KE's 640MW renewable energy projects had been floated early in 2024. In December 2024, Nepra conducted hearings on the power utility's 150MW solar projects in Winder and Bela (Balochistan), followed by hearings in February for its 220MW hybrid project in Dhabeji. Company officials highlighted that they had assessed the reduction in KE's generation cost through the addition of 120MW and 150MW projects and the expected displacement of power generation based on expensive fuel. It was ascertained that annual savings would be Rs3,477 million while aggregate savings over 25 years would go up to Rs86,937 million. These projects will also help realise foreign currency savings of $765 million in the entire time frame. KE officials emphasised that the bidding process had been carried out transparently and in accordance with the regulatory guidelines. They mentioned that the inclusion of both physical and electronic submissions pointed out the company's dedication to fairness and openness throughout the process. The officials stressed that the bidding process, which yielded a tariff bid from Kapco, followed Nepra's guidelines and was conducted transparently, including advertisements in the international and local newspapers. Nepra voiced concern over the justification of accepting a single bid and asked why a second round was not initiated. KE responded that procedural delays impacted feasibility timelines and may have deterred other bidders. KE said that the decision was based on comparative benchmarking with similar projects and the urgency of delivering low-cost energy to consumers. Nepra also discussed the prudence and assumptions underpinning the business plan, particularly regarding the debt-equity structure and fuel displacement figures. KE officials responded that all the standard prudency checks had been observed, with estimated annual fuel savings of Rs1.6 billion and Rs1.8 billion from these projects, alongside potential annual foreign exchange savings of over $30 million. They added that across KE's full portfolio of 640MW of renewable energy projects, expected savings could reach up to Rs12 billion per annum. The proposed tariff is levelised – not cost-plus – and was defended as competitive and economically justified under the current market conditions. KE reiterated that the associated transmission infrastructure had already been assessed with support from the World Bank and necessary NOCs were secured. The proposed tariff structure was lauded, with hearing participant Rehan Javed describing it as very good and advantageous for both consumers and the government. He emphasised the affordability of the tariff and stressed the need for expediting approvals pertaining to the right of way and transmission infrastructure. It was suggested that Hesco and Sepco should also be involved in future planning to encourage industrial growth in the south and reduce transportation costs. Another participant requested Nepra to share the timeline for issuing a decision on KE's renewable energy projects so that the benefit could be passed on to consumers; to which Nepra member assured that it would be announced within two months. Transaction Adviser to the Government of Sindh Irfan Yousuf expressed confidence in the competitiveness of the process and emphasised that it was conducted transparently and provided all bidders with an equal opportunity to participate.
Express Tribune
11-02-2025
- Business
- Express Tribune
Gold prices continue recording highs; rupee gains 5 paisa
Listen to article KARACHI: Gold prices in Pakistan continued their upward trend, aligning with rising international rates. On Tuesday, the price of gold per tola rose by Rs100, maintaining a record high of Rs303,100 in the local market. Similarly, the price of 10 grams of gold increased by Rs86, reaching Rs259,859, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This increase followed Monday's sharp surge of Rs4,000 per tola, setting a then-record high of Rs303,000. Internationally, gold prices also climbed, with APGJSA reporting a rate of $2,904 per ounce (including a $20 premium), marking a $1 increase during the day. Adnan Agar, Director of Interactive Commodities, mentioned the market saw a correction of $40 to $50 after its recent highs. He noted that while rapid price increases often lead to corrections, this one appeared short-lived. Agar pointed out that if gold prices correct to $2,868 and rebound, new highs could follow. However, if prices remain above $2,910, the market is likely to continue its upward momentum. A drop below $2,900 could lead to further corrections. Agar linked the rally in gold prices to inflation concerns and geopolitical developments in the Middle East. He warned that if prices climb unchecked, a sharp decline may follow. The upcoming US economic data will play a key role in determining the next movement in gold prices. Meanwhile, the Pakistani rupee strengthened slightly against the US dollar, closing at 279.17 in the interbank market, gaining 5 paisa, as reported by the State Bank of Pakistan. On the global front, the US dollar gained strength after US President Donald Trump announced significant tariff increases on steel and aluminium imports. He said reciprocal tariffs on other countries were to be announced in the coming days.
