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Business Recorder
04-07-2025
- Business
- Business Recorder
NA panel told: Uplift budget of MoNFS&R curtailed due to fund crunch
ISLAMABAD: The National Assembly Standing Committee on National Food Security and Research was informed that development budget of the ministry had been significantly reduced from Rs24 billion to Rs4.7 billion due to fiscal constraints imposed by the federal government under its obligations to the International Monetary Fund (IMF), leading to the curtailment of various planned projects. The committee met under the chairmanship of Syed Tariq Hussain, which considered agenda item regarding the point of order raised by Asad Qaiser, MNA and former Speaker of the National Assembly, concerning the challenges faced by tobacco growers and the need for a comprehensive policy to address their concerns. It was informed that tobacco is a significant cash crop in Pakistan, cultivated over approximately 55,000 hectares with an annual production of 186,000 tons. Of this, KPK contributes significantly, with 32,936 hectares under cultivation and annual production of around 97,385 tons making it the primary contributor to Pakistan's exportable tobacco. Despite its importance, tobacco growers face financial hardship. The crop spans eight months, and the cost of cultivation on one hectare reaches approximately Rs1.9 million, while farmers report an average monthly profit of only Rs3,700. Contributing factors include delays in announcing the indicative price, lack of government procurement, poor performance of the Pakistan Tobacco Board (PTB), insufficient federal oversight, lack of research and development, and failure by the Ministry of National Food Security and Research to appoint or nominate PTB members. The Pakistan Tobacco Board informed the committee that it had conducted meetings with stakeholders and that tobacco is currently being purchased using a weighted average method. The board also claimed to address concerns regarding pricing, rejections, and related matters. However, the committee expressed concern over the PTB's lack of performance and coordination with growers. The committee issued several directives to ensure comprehensive follow-up. The Pakistan Tobacco Board, the Ministry of National Food Security and Research, the KPK Agriculture Department, and the Federal Board of Revenue (FBR) were instructed to present detailed information in the next meeting, including the current tobacco taxation policy, CESS collected over the last 10 years, utilisation details of collected CESS and the policy framework under which it was used, CSR activities undertaken, and the breakdown of CESS collected by the federal government and shared with provinces, including under which budgetary heads. The committee directed the secretary of the Ministry of National Food Security and Research to constitute the Pakistan Tobacco Board within one month and submit a report to the committee. Additionally, the secretary was instructed to convene an emergency meeting of the board to address the outstanding issues faced by tobacco growers and to provide a follow-up report within one week. The Federal Board of Revenue (FBR) is to be invited to the next meeting to present details specifically related to CESS collection. The Pakistan Agricultural Research Council (PARC) was also assigned the task of outlining its support initiatives for tobacco growers and presenting a proposal for establishing a research centre aimed at improving the quality and productivity of tobacco crops. The committee directed the Pakistan Tobacco Board, along with the relevant provincial and federal government authorities and representatives of tobacco growers, to hold a joint consultation and submit a comprehensive report addressing all unresolved issues prior to the next meeting. To further facilitate discussions on this matter, the committee granted Shehram Khan Tarakai, MNA, the status of Special Invitee for all future proceedings related to tobacco issues. The committee raised concern with the ministry over the exclusion of several schemes previously discussed and recommended by the committee, in particular the proposed Dates Research Centre at Khairpur, to be established in collaboration with Shah Abdul Latif University. In response, the secretary explained that the ministry's development budget had been significantly reduced from Rs24 billion to Rs14 billion, then to Rs7 billion, and finally to Rs4.7 billion due to fiscal constraints imposed by the federal government under its obligations to the IMF, leading to the curtailment of various planned projects. The committee reiterated its directive to the Pakistan Agricultural Research Council (PARC) to visit Khairpur along with the concerned Member and to submit a feasibility report before the Committee, so the project may be pursued through re-appropriation of funds. In relation to Agenda Item No 4, the Pro Vice-Chancellor of Muhammad Nawaz Sharif University of Agriculture, Multan briefed the committee on the university's ongoing and planned research initiatives, their impact on national food security, collaborations at both national and international levels, and the utilisation of research funds. Key innovations highlighted included the development of hybrid wheat varieties that can increase crop yield by up to 20 per cent, and self-irrigating wheat with modified leaf angles to channel water directly to the roots while minimising evaporation. Additionally, they are working on drillers expected to be commercialised within the next three years, aimed at increasing wheat productivity to 80–100 maunds per acre. Other areas of research include pulse production, digital marketing platforms for post-harvest handling and market access, fruit value addition, soil-less vegetable farming, salinity adaptation in the Southern Indus Basin, cotton and vegetable seed research, and the establishment of a National Crop Genomics and Speed Breeding Centre. The committee appreciated the university's efforts and emphasised the importance of making research outcomes accessible to farmers. It stressed that practical application of these innovations is critical to enhancing agricultural productivity and ensuring national food security. Furthermore, the committee urged the ministry to present a comprehensive 20-year agricultural development plan. Despite the research and efforts underway, major crop production has declined by 17 per cent, highlighting the urgent need for a long-term strategy that addresses the growing challenges of pollution, climate change, and sustainability in the agriculture sector. Copyright Business Recorder, 2025
Business Recorder
02-07-2025
- Business
- Business Recorder
Tobacco board proposal raises concerns among stakeholders
LAHORE: The proposal aimed at devolving the Pakistan Tobacco Board (PTB) to provincial control has stirred significant concern among stakeholders in the agriculture, trade, and policy sectors. The move, largely driven by the Khyber Pakhtunkhwa (KP) government was actively discussed in the April 28 Council of Common Interests (CCI) meeting. While the devolution plan is presented as a constitutional shift in line with the 18th Amendment, experts caution that the impact on national revenue, exports, and regulatory cohesion could be severe. The PTB currently plays a critical role in setting industry standards, supporting rural growers, and ensuring traceability in one of Pakistan's most heavily taxed sectors. 'Tobacco is a key contributor to rural employment, national revenue, and export income. Timely policy action is critical to protect the interests of growers and ensure a stable investment climate,' commented Rana Tanveer Hussain, Federal Minister for National Food Security and Research. It may be added that the KP is home to a significant number of unlicensed tobacco manufacturers. Analysts warn that transferring oversight to provinces could weaken enforcement, embolden tax evasion, and provide undue advantage to actors who already operate outside the formal economy. 'This move risks undoing years of progress on controlling the black market,' said Abdul Rafay, Spokesperson at Collation of Hope, a policy and advocacy group. 'If provincial bodies with conflicting interests gain control, we could see a sharp rise in illicit trade and loss of investor confidence.' The debate around PTB's future continues, but for many in the industry, the stakes go far beyond administrative restructuring. What's at risk, they argue, is the integrity of one of Pakistan's top revenue-generating sectors. Copyright Business Recorder, 2025
CTV News
28-05-2025
- Business
- CTV News
Uber now available B.C.-wide
Uber signage during a product unveiling event in New York, on May 14. Starting Wednesday, ride-hailing giant Uber is now available across British Columbia. The company launched service in 2020 for just Metro Vancouver, and its applications to the Passenger Transportation Board to operate in other regions were denied. After the PTB approved Uber's application for a licence transfer from another company in 2023, it began operating in Kelowna, Greater Victoria and the Fraser Valley. The licence transfer to Uber from Vancouver-based ReRyde, which had approval to operate outside the Lower Mainland but wasn't actively providing ride-hailing services, gave the American company permission to operate across B.C. Uber teased the expansion late last year, and it was made official on May 28. Now in theory, anyone from Port Renfrew to Fort Nelson can open the Uber app and request a ride, but there of course need to be signed-up drivers working in the area. To up its presence, the company is offering $500 bonuses to drivers who sign up in a newly covered city and take 10 trips in the first four weeks. With files from CTV News Vancouver's Ian Holliday
Business Recorder
21-05-2025
- Business
- Business Recorder
Tobacco exporters meet Jam Kamal
ISLAMABAD: A delegation of leading tobacco exporters met with Federal Minister for Commerce Jam Kamal Khan on Monday to discuss ways to enhance Pakistan's tobacco exports and address challenges related to tariffs and regulatory frameworks. During the meeting, exporters appreciated the government's ongoing efforts to promote trade and highlighted the significant contribution of the tobacco industry to employment, rural development, and export earnings. They shared that with targeted facilitation, tobacco exports have the potential to increase substantially, supporting national revenue goals. Exporters pointed out that the current tax structure, which includes a Federal Excise Duty (FED) of Rs390 per kg, Provincial Excise Duty (PED) of Rs50 per kg, Federal Tobacco Cess of Rs15.15 per kg, and a Provincial Development Cess of Rs25 per kg totals Rs480.15 per kg. They said this cost poses a challenge particularly for smaller exporters and suggested that a more competitive taxation model would help enhance Pakistan's position in the global tobacco market. The exporters emphasized that tobacco, like other agricultural commodities such as sugarcane, cotton, and citrus, should be supported through market-based policies. They noted that annual price adjustments are mandatory under current regulations, which can affect competitiveness in export destinations. Minister Jam Kamal Khan acknowledged the concerns raised and reiterated the government's commitment to balanced and growth-oriented policies. He remarked that optimal revenue generation comes not only from taxation but also from encouraging industry expansion and boosting exports. He noted that similar concerns have also been raised by other sectors, such as beverages, regarding the impact of high taxation on consumer demand and revenue collection. The exporters also called for the revival of the Pakistan Tobacco Board (PTB) to support coordinated efforts in export promotion and policy facilitation. In response, the Minister proposed the establishment of a Sectoral Council for Tobacco, similar to other existing sectoral councils, to provide a structured platform for industry dialogue and representation. Copyright Business Recorder, 2025
Business Recorder
20-05-2025
- Business
- Business Recorder
Pakistan's tobacco exporters urge competitive tax model, cite challenges for smaller firms
Pakistan tobacco exporters have warned that the current tax structure 'poses a challenge', especially for smaller players, and urged the government to adopt a more competitive taxation model. A delegation of leading tobacco exporters raised these concerns during a meeting with Federal Minister for Commerce Jam Kamal Khan on Monday, read a statement released by the commerce ministry on Tuesday. During the meeting, exporters pointed out that the current tax structure—which includes a Federal Excise Duty (FED) of Rs390 per kg, Provincial Excise Duty (PED) of Rs50 per kg, Federal Tobacco Cess of Rs15.15 per kg, and a Provincial Development Cess of Rs25 per kg—totals Rs480.15 per kg. 'They said this cost poses a challenge, particularly for smaller exporters and suggested that a more competitive taxation model would help enhance Pakistan's position in the global tobacco market,' read the statement. The exporters emphasised that tobacco, like other agricultural commodities such as sugarcane, cotton, and citrus, should be supported through market-based policies. They noted that annual price adjustments are mandatory under current regulations, which can affect competitiveness in export destinations. Kamal acknowledged the concerns and reiterated the government's commitment to balanced and growth-oriented policies. He remarked that optimal revenue generation comes not only from taxation but also from industrial expansion and boosting exports. Tobacco revenue can increase by bringing illicit trade into tax net Kamal noted that similar concerns have been raised by other sectors, such as beverages, regarding the impact of high taxation on consumer demand and revenue collection. The tobacco exporters also called for the revival of the Pakistan Tobacco Board (PTB) to support coordinated efforts in export promotion and policy facilitation. In response, Kamal proposed the establishment of a Sectoral Council for Tobacco, similar to other existing sectoral councils, to provide a structured platform for industry dialogue and representation. The minister further informed the delegation that a revenue policy committee has been made independent of the revenue collection mechanism—an important step toward more informed and consultative policymaking. Meanwhile, exporters appreciated the government's ongoing efforts to promote trade and highlighted the significant contribution of the tobacco industry to employment, rural development, and export earnings. They shared that with targeted facilitation, tobacco exports have the potential to increase substantially, supporting national revenue goals. Exporters appreciated Kamal and expressed confidence that with continued government support, the industry could significantly increase its export footprint, read the statement. Pakistan's tobacco exports reached $158.35 million in the current fiscal year (July–April), with promising growth in markets such as Belgium, UAE, Greece, and the Philippines.
