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Express Tribune
3 days ago
- Politics
- Express Tribune
Fazl rejects Trump Nobel nomination
Jamiat Ulema-e-Islam-Fazl (JUI-F) chief Maulana Fazlur Rehman has lashed out at the United States and Prime Minister Shehbaz Sharif's nomination of US President Donald Trump for the Nobel Peace Prize, asserting that peace and Trump cannot coexist. Speaking at a conference in Battagram on Sunday, the JUI-F emir sounded alarms over Washington's renewed efforts to rally Muslim countries behind it. "America is once again saying we should walk together this same America that has abandoned us many times before," he said. "Now it wants to unite on the basis of Prophet Ibrahim's lineage, but how can we forget the atrocities in Palestine, and the blood that was shed in Libya, Egypt, Syria and Jordan? How can we forget the injustices faced by Muslims?" The JUI-F emir said that the party stood with Iran against Israel and was ready to defend the Haramain. "We are determined to unite the Muslim Ummah." "When our country needs it, we will declare jihad and offer our lives for the defence of this nation," he added. The conference in Battagram drew a significant crowd, with senior JUI-F leaders and provincial office bearers present, including Maulana Abdul Ghafoor Haideri, Nasser Mahmood, Maulana Amjad Khan, Mufti Nisar Ahmed, Maulana Khurshid Ahmed, Maulana Ghulamullah, Bakht Nawaz Khan and Shah Hussain Khan. During their speeches, the JUI-F leaders also blasted the Khyber Pakhtunkhwa government, accusing it of unprecedented corruption and financial mismanagement. "The current provincial government has broken all records of corruption," Maulana Abdul Ghafoor Haideri said. "In just one year, Rs1.1 billion was spent on food and hospitality alone. Just imagine how much was siphoned off for personal and unofficial use." The leaders also expressed frustration over the worsening situation in Battagram. "People here are suffering badly. Elected representatives are busy filling their pockets while citizens are trapped in hunger, inflation, unemployment and lawlessness," one speaker said. Calling on voters to back the JUI-F at the ballot box, they said that if the public entrusted the party with power through the strength of their vote, they would change the face of this country. "We will use national resources for the welfare of the people and place Pakistan among the ranks of great nations." Tight security arrangements were made for the conference, with a heavy police presence and hundreds of JUI-F volunteers on duty.
Express Tribune
14-06-2025
- Business
- Express Tribune
Sindh CM shares grievances with centre in post-budget press conference
Listen to article Sindh Chief Minister Murad Ali Shah criticised the federal government for failing to meet its financial commitments to the province, while promising enhanced development and relief measures in the 2025–26 budget. Speaking at a post-budget press conference on Saturday, Shah said the provincial budget totalled Rs3.45 trillion, with a record Rs1.018 trillion allocated for development projects. He warned that these figures could change depending on whether the federal government meets its revenue transfer obligations. He announced that 1,460 development schemes, worth Rs590 billion, will be completed this fiscal year. This marks a record for the province. On public sector salaries, Shah confirmed a 12% increase for employees in grades 1–16 and a 10% raise for those in grades 17–22. Total expenditure on salaries and pensions will reach Rs1.1 trillion. Sector-wise, education has seen an 18% increase in budget allocation, healthcare 11%, local government 5%, and energy 16.5%. The transport department will receive Rs 59.6 billion, while agriculture will get Rs 22.5 billion. Rs132 billion has been earmarked for local bodies and Rs43 billion for irrigation. For Karachi alone, a dedicated budget of Rs236 billion has been allocated — excluding the Rs95 billion public-private partnership projects already underway. The CM made bold claims regarding rehabilitation efforts for flood-affected areas, stating that 500,000 houses have been completed, 850,000 are near completion, and 1.3 million are under construction. He said international institutions, including the World Bank, have recognised the effort as a global model of success. He also cited a massive rural drainage and water supply initiative worth Rs600 billion, which will be locally implemented and NGO-supervised. On taxation, Shah stated that no new taxes have been imposed. In fact, several taxes have been eliminated, including restaurant and entertainment levies. Third-party motorcycle insurance has been exempted, stamp duties reduced, and numerous administrative fees halved. In agriculture, the CM announced free laser levellers for small farmers and an 80% subsidy for large-scale cultivators. He also introduced cluster farming as a new model. The Sindh Institute of Child Health was described as the world's largest such network. Initiatives for persons with disabilities, youth development centres, and new school schemes were also unveiled. Shah openly criticised the federal government for excluding major Sindh projects — such as the K-IV water supply project, desalination plants, and other energy-related infrastructure — from the federal Public Sector Development Programme (PSDP). He warned that the Pakistan Peoples Party (PPP) would not support the federal budget if Sindh does not receive a fair share. 'We are not part of the federal coalition, only offering conditional support. If Sindh is not treated equally, we will withdraw our backing,' he said. Shah defended the procurement of helicopters and official vehicles, adding that a ban on new vehicle purchases would be enforced starting next year. Concluding his address, the CM said the Sindh government is working with clear direction and intent for public welfare — as reflected in the increased public mandate in the last election.
Business Recorder
13-06-2025
- Business
- Business Recorder
Aurangzeb tells Senate body: Govt eyes $2bn loan to boost reserves
ISLAMABAD: Amid expectation of borrowing $2 billion from commercial banks to shore up reserves to $14 billion by the end of outgoing fiscal year, the government only managed to utilise around 40 percent of the development funds of Rs1.1 trillion revised budget allocation for the outgoing fiscal so far. This was revealed by Finance Ministry while briefing the National Assembly Standing Committee on Finance and Revenue, which was also informed that government has proposed special relief allowance @50 percent to officers and 20 percent to JCOs/soldiers of armed forces in the budget 2025-26. The committee which met with Syed Naveed Qamar in the chair here on Thursday was also informed by the Finance Minister that from their perspective there is cushion to do more on the policy rate and hopeful that by end of calendar year, it would move to single digit as move forward. Post-budget presser: 'Have to get money from somewhere to provide relief somewhere', says Auranzgeb The briefing also revealed that Public Sector Development Programme (PSDP) has been revised downward for the second time in the outgoing fiscal year from Rs1.1 trillion to Rs967 billion, but it would also not be achieved, as confirmed by the Secretary Finance. Secretary Finance informed the committee that Rs662 billion under the PSDP has so far been utilised, which according to PTI leader and member committee Omar Ayub Khan was given a steroid injection in the last month and may have consequences on the overall economic indicators including GDP growth in the outgoing fiscal year. The lack of spending suggests a large part of PSDP — revised down from Rs1.4 trillion to Rs1.1trillion would remain unspent at the end of the fiscal year in June. The finance minister said that as far as inflows are concerned things are speed up in the last quarter. 'We have gone back to the commercial market in this fiscal year and are in the process of syndicating around $2 billion of commercial borrowing and expecting to shore up reveres from the current around $11-12 billion to $14 billion by end of the current fiscal year. Secretary Finance further said that non-tax revenue udder the head of State Bank of Pakistan (SBP) profit is budgeted at Rs2,400 billion for the next fiscal year down from Rs2,500 billion in the current fiscal year on the back of decrease in interest rate. The committee was skeptic about Rs105 billion budgeted from the Captive Power Plants (CPP) levy for the next fiscal year. Regarding the Petroleum Development Levey (PDL) Secretary Finance said that Rs1,468 billion are budgeted for the next fiscal year against Rs1,281 billion in the outgoing fiscal year. He said that there is no upper cap for PDL; however, after the addition of Rs2.5 per litre carbon levy, the government wants to restrict it to around Rs80-80.5 per litre. Omar Ayub Khan said that petroleum products of 2.1 billion worth Rs550 billion are smuggled, causing the national exchequer around Rs145 billion under the head of non-collection of PDL, where the Federal Board of Revenue (FBR) needs to strengthen enforcement. Secretary Finance informed that financing of federal deficit is budgeted for 2025-26 at Rs6,501 billion against the budgeted Rs8,500 billion for the outgoing fiscal year. External financing (net) is estimated at Rs106 billion for the next fiscal year compared to Rs666 billion for the current fiscal year. Further, domestic financing (net) is estimated at Rs6,308 billion for the next fiscal year compared to Rs7,804 billion for the current fiscal year. The finance minister stated that there were fake rumors in media of mini budget which became wrong. He informed the committee on fiscal discipline, economic growth and stability, social welfare and public services like relief for salaried class with reduction in the minimum tax rate and expansion in the Benazir Income Support Program (BISP) to Rs716 billion. The Minister of State and Secretary Finance briefed the Committee on policy measures adopted for the preparation of the Finance Bill 2025 and the government's financial proposals for the next financial year. The committee members expressed concerns to the tax-to-GDP ratio, revenue shortfall, taxes on solar panels, hybrid vehicles, carbon levy, petroleum levy, private sector lending and debt, SMEs, industrial and agricultural growth and targets, withholding tax (WHT) on ATMs and bank deposits, pensions, gender-specific allocations, health-specific allocations, electric vehicles, structural reforms, sales tax on cotton, public sector expenditure, defence spending, the widening current account deficit, and the negative growth rates observed in both the manufacturing and agricultural sectors. The discussion also highlighted the challenges of climate change and the need for social protection. The members expressed serious concerns regarding the inefficiency of Customs Intelligence and smuggling at borders. The chairman emphasised the importance of keeping the committee fully informed and desired that a comprehensive overview of both the structural reforms and the tariff reforms be prepared and shared with the committee members. The minister said that only Rs312 billion is budgeted from new taxes. He said that while international stakeholders had previously doubted Pakistan's ability to implement tax laws effectively, the government has now demonstrated that meaningful enforcement is possible. Talking about the tariff rationalisation which the committee was informed that it was a step aligning Pakistan's trade and industrial policy with global standards. The initiative marks the beginning of a phased plan towards a simplified tariff regime, ultimately targeting an average tariff rate of just over four per cent. 'Overall, there are 7,000 tariff lines. Additional customs duty has been removed on 4,000 lines, and in 2,700 of those, the customs duty has also been reduced,' the committee was informed. Of these, around 2,000 tariff lines are directly linked to raw materials and intermediary goods used by the exporters. The government's broader goal, according to Aurangzeb, is to reshape Pakistan's tariff architecture in a way that supports industrial growth and integrates the economy more deeply into global supply chains. Aurangzeb said an additional tax on fertilisers and pesticides was a benchmark but it was negotiated with the IMF on the directions of Prime Minister Shehbaz Sharif as it was a critical input into agriculture and should not be imposed. Secretary Finance said a modest 1.9 percent rise in government expenditure, crediting prudent financial management. He said, despite inflation, the government managed to contain subsidies and reduce debt servicing, while selectively increasing spending where necessary for national priorities. He further informed that Rs494 billion were allocated for tariff differential subsidy (TDS) in the budget 2025-26. Replying to a question the committee was informed that the government has budgeted Rs87 billion from privatisation admitting that Rs30 billion budgeted for the current fiscal year was not materialized on account of lower bids for PIA and Islamabad International Airport. The committee was informed that privatisation of Pakistan International Airlines (PIA) and the Roosevelt Hotel is scheduled for the next fiscal year, and privatization efforts for power distribution companies (DISCOs) and generation companies (GENCOs) will continue. The government has set inflation target of 7.5 percent for the next fiscal year. Regarding the fiscal deficit, the government projected a target of 3.9 percent of the GDP — or Rs5,037 billion — from the outgoing fiscal year's target of 5.9 percent. The primary surplus is targeted at 2.4 percent of the GDP against the budgeted two percent in the current fiscal, which has been revised to 2.2 percent. The government has set tax collection target for the FBR at Rs14,131 billion, an 8.95 percent increase from the current fiscal year of Rs12,970 billion and around 19 percent higher than the revised estimate of Rs11,900 billion. Non-tax revenue is estimated to be Rs5,147 billion for the next fiscal year against the budgeted Rs4,845 billion for the current fiscal year. Copyright Business Recorder, 2025
Express Tribune
12-06-2025
- Business
- Express Tribune
GDP figure based on old data
Listen to article Pakistan's Chief Statistician Dr Naeemuz Zafar said Thursday that the 2.7% economic growth estimate for this fiscal year is based on a 15-year-old livestock survey and assumes full utilisation of the Rs1.1 trillion development budget. While responding to questions about the controversy over this year's economic growth figure along with Planning Minister Ahsan Iqbal, Dr Zafar claimed that there would be no major downward revision in the 2.7% figure for the outgoing fiscal year. Iqbal also proposed a new formula for resource distribution under the National Finance Commission (NFC), moving away from the current population-centric model. The Pakistan Bureau of Statistics (PBS)'s chief statistician called objections to the 2.7% growth rate "unfortunate" and said if a committee is formed to investigate, the PBS is ready to appear. The government claims a 2.7% GDP growth this year, which independent economists have disputed, estimating it to be closer to 2%. A major objection concerns the 4.8% livestock sector growth. The livestock sector's 4.8% growth was based on a survey conducted back in 2010, admitted Dr Zafar, adding that there was no deviation from the standard methodology. When asked how the agriculture sector showed 0.6% growth despite a 14% output decline in major crops, Dr Zafar said the growth was driven by livestock, forestry and minor crops. The Gross Domestic Product (GDP) growth figure has been worked out in a transparent manner by following a methodology endorsed by the United Nations and the international financial institutions, he said. He also confirmed a new agriculture and livestock census has been completed but awaits the planning minister's approval due to his budget commitments. He added that the Household Integrated Economic Survey, Labour Force Survey, and agriculture census would be ready by October for the next National Accounts Committee (NAC) meeting. Leader of the Opposition Omar Ayub Khan raised the disputed GDP issue during the National Assembly Standing Committee on Finance meeting held on Thursday. In a statement, the statistician also stated PBS used the full Rs1.1 trillion federal Public Sector Development Programme (PSDP) figure for GDP calculationshighlighting a glaring methodological flaw. However, Finance Secretary Imdad Ullah Bosal told the same committee that against the Rs1.1 trillion PSDP allocation, only Rs662 billion had been spent so far. He added that by June-end, spending would remain below the revised Rs967 billion figure. When asked whether the GDP would be drastically revised in the next NAC meeting, Dr Zafar again said no major revision was expected. Speaking at the meeting, the planning minister said the country was on a path to steady economic recovery with a goal of sustainable economic growth. Iqbal added that Pakistan continues to face structural problems of fiscal constraints. Due to limited space, next year's federal PSDP will be just 0.8% of GDPdown from 2.6% seven years ago. The planning minister noted that the federal government's Rs11 trillion net revenues were barely enough to cover defence and debt servicing. "With limited tax contributions, people cannot hope for international standard facilities," said Iqbal. He also called for reforming the NFC award by shifting away from the predominantly population-based distribution formula with broader indicators like education and forestation. Iqbal is the second federal minister after the finance minister to propose a shift in the NFC criteria this week. Currently, 82% of total resources are allocated based on population, which Iqbal argued incentivises population growth, harming national interests. He said the Planning Commission would recommend shifting to a broader formula that rewards education and forest preservation. Prime Minister Shehbaz Sharif, he added, has decided to constitute a Pakistan Population Council, comprising provincial chief ministers, to design strategies for population control. Pakistan's annual population growth rate stands at 2.6% — nearly equal to this year's GDP growth rate. Responding to a question whether the Federal Board of Revenue (FBR) took him into confidence before imposing taxes on the digital economy, Iqbal said these were levied with the intent to create a level playing field for conventional retailers. Commenting on the upcoming PSDP, Iqbal said Rs230 billion had been allocated for Balochistan projects from the Rs1 trillion envelope. Despite limited resources, the government would invest more in water reservoirs. He said Diamer Basha Dam with 6 million acre-feet capacity and Mohmand Dam with 1 million acre-feet would be completed by 2030 to mitigate water shortages caused by potential Indian efforts to block Pakistan's share of water. Iqbal added that construction of Diamer Basha Dam would be advanced by two years with increased investment, aiming for completion by 2030 in response to regional water developments. Due to budget constraints, funding for the Higher Education Commission (HEC) has been reduced to Rs39.5 billion. Iqbal suggested provinces should bear the responsibility of funding universities.
Express Tribune
12-06-2025
- Business
- Express Tribune
PSX crosses 126,000 barrier for first time as record rally continues
Listen to article The Pakistan Stock Exchange (PSX) continued its upward momentum for the third consecutive day on Thursday, with the benchmark KSE-100 index reaching an all-time high of 126,025.99 points during intra-day trading. The index rose by 1,673.31 points, or 1.35%, in early trading, marking a new milestone for the bourse during the intra-day trading. The index reached a daily high of 126,055.32 and a low of 124,807.09. The previous close was recorded at 124,352.68. Trading volume was recorded at 113,574,464 shares, with a total value of 11,375,804,736. Earlier on Wednesday, PSX saw a significant rally, with the KSE-100 index soaring by 2,328 points (1.91%) to an all-time high of 124,352.68, fueled by investor optimism following the federal budget announcement. The budget, which maintained the status quo on equity taxation and increased withholding tax on bank deposits, was welcomed by market participants as it was seen as favourable for capital markets and the economy. Analysts highlighted that the budget's provisions, including projections of a 3.9% fiscal deficit and a Rs1 trillion federal PSDP, added to the bullish sentiment. Read more: PSX at new peak as budget sparks optimism Arif Habib Corp MD Ahsan Mehanti observed that stocks reached a new all-time high, led by across-the-board activity, as investors cheered the status quo on equity taxes and higher withholding taxes on bank deposits in the FY26 budget. Broad-based participation drove the rally, with strong gains in sectors like cement, oil and gas, banking, and fertilisers. Notable stocks such as Lucky Cement, Fauji Fertiliser, and Pakistan Petroleum saw significant gains. Investor confidence was further boosted by the avoidance of new taxes and the continuation of subsidies for key sectors. JS Global analyst Mubashir Anis Naviwala said that the stock market welcomed the budget with strong optimism, breaking all resistance levels to cross the 124,000 mark. A new historic intra-day high of 124,588 was reached before the index settled at 124,353, up 2,328 points. The market experienced a sharp rise in trading volumes, reaching 1.04 billion shares, with a value of Rs46.7 billion. The day's trading also saw a positive trend in shares, with 283 stocks closing higher. However, foreign investors sold shares worth Rs1.1 billion, as reported by the National Clearing Company.
