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Business Recorder
8 hours ago
- Business
- Business Recorder
PTI says budget will enrich elite at the cost of masses in Pakistan
ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) on Friday launched a scathing attack on the recently passed Federal Budget for 2025-26, denouncing it as a 'banker's blueprint' crafted to enrich the elite at the expense of the masses. Speaking at a presser, the opposition leader in National Assembly Omar Ayub, flanked by Asad Qaiser, Gohar Ali Khan, and other senior party leaders, condemned the budget as a 'giveaway written by a banker, for his banker buddies'. 'This is not a people's budget; it's a banker's business plan,' Ayub said. 'The hybrid regime plans to borrow another Rs6,300 billion from local banks, allowing four or five bank owners to graduate from billionaires to trillionaires. Meanwhile, the nation sinks deeper into debt.' Ayub accused the government of both fiscal cruelty and political repression, warning that the prices of essential commodities such as flour, sugar, and lentils would soar under the new fiscal measures. 'They couldn't even face the opposition in Parliament. Both the finance minister and the prime minister evaded accountability.' Moreover, Ayub claimed that former MNA Ijaz Chaudhry was abducted in the dead of night, while former Prime Minister Imran Khan and his wife Bushra Bibi remain in jail as hostages of political vendetta. He said several senior PTI leaders including Shah Mehmood Qureshi, Omar Cheema, Hassaan Niazi, and Yasmin Rashid and others were imprisoned without bail. However, Asad Qaiser accused the government of reducing Parliament to a rubber stamp. MNA Sanaullah Mastikhel criticising the powerful energy lobbies, alleged that Independent Power Producers (IPPs) were 'untouchable profiteers' who have plundered the nation for decades under successive governments. 'These IPPs have become a cartel, bleeding the country dry through inflated capacity payments and ironclad contracts. They get paid whether they produce electricity or not while the average Pakistani is left in the dark, both literally and financially.' Masti accused the government of shielding these corporate giants while the public suffers from rolling blackouts and sky-high electricity bills. 'Every time the people tighten their belts, these energy barons loosen theirs. And now, with this budget, the same crooks are getting even more incentives. It is daylight robbery, institutionalised.' He demanded an open audit of all IPP contracts and called for a complete overhaul of the power sector. Copyright Business Recorder, 2025
Business Recorder
13 hours ago
- Business
- Business Recorder
PTI says budget will enrich elite at the cost of masses
ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) on Friday launched a scathing attack on the recently passed Federal Budget for 2025-26, denouncing it as a 'banker's blueprint' crafted to enrich the elite at the expense of the masses. Speaking at a presser, the opposition leader in National Assembly Omar Ayub, flanked by Asad Qaiser, Gohar Ali Khan, and other senior party leaders, condemned the budget as a 'giveaway written by a banker, for his banker buddies'. 'This is not a people's budget; it's a banker's business plan,' Ayub said. 'The hybrid regime plans to borrow another Rs6,300 billion from local banks, allowing four or five bank owners to graduate from billionaires to trillionaires. Meanwhile, the nation sinks deeper into debt.' Ayub accused the government of both fiscal cruelty and political repression, warning that the prices of essential commodities such as flour, sugar, and lentils would soar under the new fiscal measures. 'They couldn't even face the opposition in Parliament. Both the finance minister and the prime minister evaded accountability.' Moreover, Ayub claimed that former MNA Ijaz Chaudhry was abducted in the dead of night, while former Prime Minister Imran Khan and his wife Bushra Bibi remain in jail as hostages of political vendetta. He said several senior PTI leaders including Shah Mehmood Qureshi, Omar Cheema, Hassaan Niazi, and Yasmin Rashid and others were imprisoned without bail. However, Asad Qaiser accused the government of reducing Parliament to a rubber stamp. MNA Sanaullah Mastikhel criticising the powerful energy lobbies, alleged that Independent Power Producers (IPPs) were 'untouchable profiteers' who have plundered the nation for decades under successive governments. 'These IPPs have become a cartel, bleeding the country dry through inflated capacity payments and ironclad contracts. They get paid whether they produce electricity or not while the average Pakistani is left in the dark, both literally and financially.' Masti accused the government of shielding these corporate giants while the public suffers from rolling blackouts and sky-high electricity bills. 'Every time the people tighten their belts, these energy barons loosen theirs. And now, with this budget, the same crooks are getting even more incentives. It is daylight robbery, institutionalised.' He demanded an open audit of all IPP contracts and called for a complete overhaul of the power sector. Copyright Business Recorder, 2025
USA Today
3 days ago
- Business
- USA Today
3 reasons I'll be taking Social Security long before age 70
A bit of number-crunching and realistic strategizing suggests I'm better off with a little less of this benefit money now, rather than a little more of it later. Waiting as long as you possibly can to claim Social Security retirement benefits makes superficial sense. Holding off until you max out these benefits at 70 years of age adds roughly 25% more to your payment than you would have received by claiming at your official full retirement age (FRA) of between 66 and 67, maxing out your monthly payment. Conversely, claiming at the earliest-possible age of 62 will cause your monthly check to be 30% less than your intended payment if you started benefits on reaching your FRA. (Adjust accordingly for filing dates between those two extremes.) There's a case to be made, however, for claiming Social Security earlier rather than later, despite the adverse impact it will have on the size of your eventual payment. I'm thinking about making that choice myself in the not-too-distant future — and there are three specific reasons. See if they apply to your situation as well. 1. Payment cuts may be coming sooner than later The underfunding of Social Security is a tired and over-politicized debate that's likely to be resolved before it's allowed to become an actual problem. But on the off chance that it truly will force across-the-board payment reductions in the foreseeable future, claiming earlier will allow me to collect 100% of whatever age-adjusted amount I'm owed for a longer period of time. In other words, I'd rather have all of a smaller amount I'm due for longer, rather than risk getting only part of everything I'm owed after waiting. That's a net win for me. The most recent assessment of the program's health comes from the nonpartisan Committee for a Responsible Federal Budget, published in early June. It suggests that — without any changes in the meantime — Social Security recipients will see a 19% to 23% reduction in their payments come 2034. I still won't be eligible for any benefits by then, although I'll be getting close. But if the Committee's projection is off by even just a few years, a reduction will impact me. That's why I'm watching the matter closely, since I could at least get a few years' worth of fully due benefits under my belt before suffering a reduced payment because of the program's solvency problems. Note that I can afford to think like this because of the other two reasons I'm also considering claiming Social Security well before I turn 70. 2. I can get a better return on the money The effective return on your money tied up by Social Security is fair — but not great — at roughly 2.5% last year, to round out a 40-year average of around 6%. You can typically expect a return of about 2% above any given year's rate of inflation (although 2023 was a stark exception that exacerbated the program's solvency problems). That's not to suggest your eventual benefits payments are determined by the returns the Social Security Administration (SSA) achieves on what's currently a $2.7 trillion pool of assets. They're not. While higher interest rates certainly help grow this fund, which exclusively owns government-issued bonds, the bulk of the payments the program is making to retirees right now are funded by the FICA taxes that workers are currently paying into Social Security; its assets are mostly just a buffer to smooth out ebbs and flows in peoples' taxable incomes. Higher interest rates earned by this pool of money simply help keep the program flexible. Even so, once you turn 62 and become lifetime-eligible for at least some Social Security benefits, your risk-versus-reward math changes. There may not be many additional advantages in waiting all the way to age 70 to file. (That's particularly true if your highest-earning 35 years are in the rearview mirror, rather than ahead of you.) If you can put this money into the stock market and earn something closer to its average annual gain of about 10%, for instance, you may be better off in the long run even if you just end up converting this accumulated stash into an annuity, for another stream of lifetime income. Most guaranteed lifetime-income annuities currently offered by private insurance companies are paying between 4% and 6% per year for people starting payments in their 60s, while folks starting to annuitize their nest eggs in their 70s can lock in rates on the order of 8% or more. Not bad. But if annuities aren't your thing, that's OK. This is one example to compare to Social Security's lifetime income benefits. You can turn cash into reliable income in other ways, like owning quality dividend stocks. You just need the flexibility that the cash can provide, but Social Security doesn't offer. 3. I don't mind payment reductions due to work-based income Finally, while I'll likely end up starting my Social Security retirement benefits well before I turn 70, I'm also likely to continue working (at least on a part-time basis) well after I initiate benefits. Anyone who's looked into this already knows the risk here: Earning work-based taxable income after you've already begun receiving benefits could reduce those payments. This year, for anyone who's not yet at their full retirement age, the SSA will impose a $1 reduction in full-year retirement benefits for every $2 above and beyond $23,400 that they earn in taxable income. Note that these rules change slightly for the year in which you reach your full retirement age. For people reaching their FRA in 2025, the Social Security Administration will deduct $1 in benefits for every $3 earned above $62,160. Both income thresholds are regularly raised. So the concern is a reasonable one — anyone under their FRA who's earning enough work-based income could easily end up completely negating their Social Security payment. Here's what many people don't realize about this rule: You're not actually losing money. The SSA credits your future benefits accordingly, raising them to reflect the amount of money you didn't end up receiving in the meantime. Still, why would you bother claiming benefits, knowing your work-based compensation would likely mean you don't end up collecting much — if any — Social Security yet? That's a legitimate argument against the idea, if you're under your FRA and don't want to deal with the headache of ever-changing annual income, or keeping the SSA informed. If you've already reached your FRA (around age 67), though, you've got the best of both worlds. Not only can you earn as much as you want on the job during this time without undermining your current Social Security payments, but if you're earning enough taxable income, you may even end up bolstering your future monthly benefit. Just be careful if this is your plan and you're currently under your full retirement age. See, once the SSA recalculates what it owes you each month based on your prior year's income, you're stuck with that payment for a whole year until it's recalculated and adjusted. Also know that the reporting process can be a bit of pain if you're self-employed, especially when your income and work schedule are inconsistent. Contact the SSA for details if that applies to you. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Business Recorder
4 days ago
- Business
- Business Recorder
Budget neglects ports, shipping and logistics: analyst
KARACHI: Budget 2025-26 study shows that not much has been discussed, allocated or disbursed for ports, mini sea ports, handling terminals, shipping , logistics, warehousing and supply chain, etc, said Ateeq Ur Rehman economic & financial analyst. He said in the recent Federal Budget, Rs17.6 trillion has been planned, the tax revenue has been projected as Rs14307 billion, the direct taxes are expected as Rs6470 billion, the sales tax Rs4943 billion, customs duty Rs1741 billion, federal excise duty Rs1153 billion, Rs1311 billion petroleum levy and Rs2584 billion as non tax revenue. The expenditures included as debt servicing / Interest Rs8685 billion, defence Rs2414 billion and public sector development Rs1065 billion. However, custom duty exemption and reductions has been discussed on import of shipping containers, cranes, port handling equipment, cold storage and warehouse machinery. This is highly appreciable. To my understanding discussing, encouraging and incentivizing modernization and developments of general ports, fishing harbours and mini sea ports are necessary for the fast growth of economy. Giving tax relief will help the submission of provisions for development of maritime sector, including the progress for better dredging, berths, storage spaces and port infrastructure. Further this will also attract foreign direct Investment, local Investment and public private partnership. Most importantly we cannot ignore the required efforts for the development of institutional capacity at ports, shipping, logistics, etc. This requires proper frame work and target achieving potentials to serve the existing and expected clientele including land locked countries. The purpose built warehousing , cool chains , silos and processing units, if categorized as Industry needs relief for their expansion from 'Additional Taxes'. The Government need to support shipping / logistic sector including public and multimodal transport and provide ways to reduce the growing freight charges. These growing freight charges have become, by and large a real impediment in the growth of business, production and exports. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business
- Business Recorder
FPCCI's BMP says budget lacks strategy to revive economy
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel (BMP) has raised strong concerns over the Federal Budget, calling it a document full of theoretical optimism but lacking the concrete execution strategy required to address Pakistan's deep-rooted economic and industrial challenges. The BMP leadership said the government missed a critical opportunity to push forward structural reforms and provide the private sector with practical relief to overcome prevailing financial hardships, rising production costs, and export stagnation. BMP Chairman and former FPCCI President Mian Anjum Nisar said the budget failed to outline any viable roadmap for industrial expansion, job creation, or meaningful growth in the manufacturing sector. He regretted that instead of facilitating businesses, the budget has prioritised tax revenue goals without fixing fundamental issues affecting productivity and competitiveness. He stressed that Pakistan's economic revival is not possible without the active engagement and support of the business community, which continues to feel sidelined despite repeated promises of stakeholder-driven policy. Nisar criticised the government's excessive reliance on indirect taxation and short-term fiscal tools, warning that such an approach will only widen inequality and hinder long-term economic planning. He pointed out that the government has introduced aggressive tax measures without corresponding reforms in documentation and enforcement, creating fears of harassment among already compliant businesses. He strongly opposed granting tax authorities unchecked powers, such as freezing business accounts without prior notice, terming them anti-business and contrary to the spirit of voluntary compliance and trust-building. He said that the Rs1,000 billion earmarked for development spending is inadequate to meet the pressing infrastructure needs of Pakistan's economy, especially in industrial zones, ports, logistics corridors, and power transmission lines, adding unless these funds are used transparently with strict project prioritisation, they will have minimal impact. He urged the government to revive long-stalled industrial and transport infrastructure projects, which are essential to improving supply chains and reducing the cost of doing business. He also expressed serious disappointment over the continued neglect of value-added sectors, particularly textile, apparel, and light engineering, which are the backbone of Pakistan's export economy. Nisar reiterated the BMP panel's longstanding demand for the revival of the zero-rated regime and the removal of procedural hurdles in sales tax refunds. He noted that working capital remains stuck in refund cycles, which creates a liquidity crisis for exporters already struggling with thin margins and delayed shipments. He called for a complete rethinking of the country's tax strategy. Instead of placing more burdens on the formal sector, the government should broaden the base by targeting untaxed segments and expanding documentation through rational incentives. The business community has long urged for a simplified and predictable tax regime with reduced compliance costs, which remains unmet in the current budget. The panel emphasized that a true economic turnaround can only be achieved through structural reforms, reduced dependency on IMF programs, and the formulation of a long-term industrial policy. It pointed out that over reliance on remittances, foreign loans, and import-based revenues is unsustainable and exposes the country to repeated cycles of crisis. BMP urged the government to shift from short-term fire fighting to institutional capacity-building, export diversification, and innovation-led growth. BMP reaffirmed its commitment to standing with Pakistan's business community and offering constructive solutions, but stressed that the government must match its words with action and work hand in hand with stakeholders to lift the economy from stagnation toward sustainable, inclusive growth. Copyright Business Recorder, 2025
