
Half of population below poverty line: Khaqan
KARACHI: Shahid Khaqan Abbasi on Wednesday said that the half of Pakistan's population has reached below the poverty line, but rulers are only engaged in increasing their own salaries.
Former prime minister addressing a press conference AT Karachi Press Club here said that the ongoing tax system has not been based on justice and urged for changing this taxation system. 'This tax system is compelling people to tax evasion.'
He said that the budget doesn't offer any reforms or changes any mechanism. 'The situation could not be improved if no reforms introduced.'
He urged government to cut its expenditures down instead of decreasing the Public Sector Development Programme (PSDP).
Khaqan said that no relief will be possible until the government doesn't reduce its expenditure. 'This budget has proved that this system could not be run,' he said. He said the salaried class is paying Rs600 billion tax and additional burden are also piled over them. He suggested for a tax system in which all people pay taxes.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
8 hours ago
- Express Tribune
Pakistan, Saudi Arabia to enhance tech collaboration
Minister of State for IT and Telecommunication, Shaza Fatima Khawaja: PHOTO: APP Federal Minister for IT and Telecommunication Shaza Fatima Khawaja held a high-level meeting with Saudi Minister for Communications and Information Technology Engineer Abdullah Al-Swaha to enhance collaboration in emerging technologies, artificial intelligence (AI) and digital infrastructure. The two sides discussed the establishment of the Pakistan Digital Corridor to China and Central Asia to strengthen global connectivity. They emphasised the need for cooperation in AI and computing technologies, reaffirming their commitment to strategic partnerships. Shaza Fatima highlighted a Rs4.8 billion project approved under the Public Sector Development Programme (PSDP) to train over 7,000 Pakistani youth in semiconductor technologies. She reiterated Pakistan's support for Saudi Arabia's National Semiconductor Hub, expressing confidence in the kingdom's leadership in the tech domain. Discussions also covered collaboration under Saudi Arabia's National Technology Development Programme and ways to foster partnerships between Pakistani and Saudi companies. Shaza Fatima outlined Pakistan's cybersecurity successes and the strong role played by its armed forces in recent geopolitical developments. She reaffirmed that Pakistan remains a committed partner in Saudi Arabia's growth and success.


Express Tribune
16 hours ago
- Express Tribune
Govt admits poor SOE governance
The government's fiscal support to SOEs – through grants, subsidies, loans and other injections – exceeded Rs600 billion in six months, equivalent to nearly 10% of total revenue receipts. photo: FILE Listen to article In a rare statement, a cabinet body on Friday admitted that poor governance concerns persisted with low transparency in government-owned companies while their cumulative losses increased further to a record Rs5.9 trillion by December last year. The statement issued by the Ministry of Finance after a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) appeared to be a serious charge sheet about the poor performance of SOEs during the July-December 2024 period of the current fiscal year, particularly the power sector performance. The energy-sector circular debt, comprising power and gas, jumped to Rs4.9 trillion by December last year. "Governance concerns persist, with low levels of transparency in beneficial interest disclosures under Section 30 (of the SOEs Act) and other compliance gaps," stated the Ministry of Finance. Finance Minister Muhammad Aurangzeb chaired the meeting. The statement added that "the lack of strategic alignment in business plans and operational inefficiencies across SOEs were identified as critical areas requiring urgent reforms". Muhammad Aurangzeb reaffirmed the government's commitment to strengthening the governance, operational efficiency and financial sustainability of key public sector entities, it said. The finance minister stressed the importance of aligning business plans with national priorities and addressing operational challenges in a timely and coordinated manner. The cabinet committee reviewed the performance of government entities during the first half of current fiscal year, which also coincided with the first year of the government of Prime Minister Shehbaz Sharif. "The cabinet committee noted with concern the staggering cumulative losses of SOEs amounting to Rs5.8 trillion," said the finance ministry. It added that Rs342 billion in additional losses were incurred in just the last six months - equating to a daily loss of Rs1.9 billion. Aurangzeb "emphasised that issues such as inefficiencies in DISCOs' (distribution companies) operations, slow network upgrades by National Transmission and Despatch Company, unfunded pension liabilities and low governance standards continue to erode fiscal space and undermine investor confidence". The finance minister stressed the importance of timely reforms, particularly in power and energy sectors, where circular debt has crossed Rs4.9 trillion, it added. The government reiterated the resolve to bring greater transparency, financial discipline and accountability to the SOE landscape. The finance ministry said that the Central Monitoring Unit gave a detailed briefing on a biannual report on the federal SOE performance covering the period from July to December 2024. The report included a detailed overview of the state of affairs and key challenges confronting state-owned enterprises, including cumulative losses amounting to Rs5.8 trillion, with Rs342 billion being incurred in just six months. The committee was told that circular debt in oil, gas and power sectors crossed Rs4.9 trillion, severely affecting cash flows and asset valuations. The government's fiscal support to SOEs – through grants, subsidies, loans and other injections – also exceeded Rs600 billion in six months, equivalent to nearly 10% of total revenue receipts. In addition, unfunded pension liabilities in DISCOs and other SOEs, estimated at Rs1.7 trillion, remain off the books, as in the case of railways' pension obligations, the meeting was told. It was highlighted that government guarantees currently stood at Rs2.2 trillion, while rollover costs and financial restructuring liabilities further compound fiscal pressures. The finance minister emphasised that directors representing the government on boards of SOEs must exercise due diligence and play an active role in safeguarding the financial health and operational performance of the entities through informed and responsible input. In a recent meeting of the National Assembly Standing Committee on Finance, Muhammad Aurangzeb said that government nominees on SOE boards were performing below requirements and they needed to pull their socks up. The cabinet committee also approved new nominees on various boards. It approved the appointment of chairman of the Quetta Electric Supply Company (Qesco) board, constitution of the board of directors of the Independent System Market Operator, appointment of independent director/chairman on the board of Gujranwala Electric Power Company (Gepco) and independent director on Genco Holding Company Limited (GHCL). It approved the nomination of independent directors on the board of Multan Electric Power Company (Mepco), Power Information Technology Company and the constitution of the board of Energy Infrastructure Development and Management Company. The cabinet body approved the winding up of three subsidiaries of the Ministry of Railways, which included RAILCOP, PRACS and PRFTC.


Express Tribune
2 days ago
- Express Tribune
Bilawal explains why PPP supports federal budget
Pakistan People's Party (PPP) Chairman Bilawal Bhutto Zardari on Thursday outlined his party's reasons for supporting the PML-N-led ruling coalition's second budget, saying key amendments were made based on PPP's input. Addressing the National Assembly ahead of the budget's passage, Bilawal explained why the PPP Parliamentarians – a major coalition partner – had decided to back the finance bill, despite earlier objections. The PPP's support comes just days after it strongly criticized the federal budget, accusing the government of discriminating against Sindh and threatening to boycott the approval process. A similar standoff occurred last year between the PPP and the PML-N, which the PTI had described as a "fixed fight" meant to deflect public scrutiny. Nevertheless, things remained largely calm between the PPP and the PML-N during this year's budget session. In his speech, Bilawal noted that the government had increased funding for the Benazir Income Support Programme (BISP), a welfare scheme introduced by his mother & former premier Benazir Bhutto, by 20 per cent. The PPP leader criticized the previous PTI government for attempting to undermine BISP in every budget and commended the incumbent Prime Minister Shehbaz Sharif for consistently increasing its funding since assuming office. The PPP chairman further noted that the government raised the income threshold for tax exemption from Rs600,000 to Rs1.2 million annually. Additionally, he highlighted that the tax on solar panels was reduced from 18 per cent to 10 per cent following objections raised by PPP members. Bilawal also welcomed the decision to curtail the Federal Board of Revenue (FBR)'s arrest powers. Under the new policy, arrests in tax cases can now only be made in instances of proven fraud and not at the inquiry stage. Moreover, such offences have been declared bailable. "These are the reasons why the PPP is supporting this budget," he said. Earlier, the PPP chairman chaired a meeting of PPP parliamentary party, attended by all PPP lawmakers. During the session, PPP members briefed Bilawal on their proposals regarding the federal budget. He was also informed about the amendments incorporated into the budget as a result of PPP's input. Bilawal was given a detailed briefing on the acceptance of the party's demand for a 20% increase in the budget of the BISP program, a party statement said, adding he was also apprised that the tax on solar panels has been slashed by nearly 50% in response to PPP's consistent advocacy. Bilawal was also informed about how the government withdrew the controversial amendments related to FBR's powers to arrest owing to PPP's strong reservations. On PPP's suggestion, the PPP lawmakers were told that the federal budget now includes a 10% increase in government salaries and a 7% rise in pensions. Moreover, PPP legislators were briefed that the party secured complete income tax exemption for salaried individuals earning up to Rs100,000 per month. Another key achievement highlighted during the briefing was the restoration of budgetary allocations for universities in Sindh following PPP's demand.