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Express Tribune
14-07-2025
- Business
- Express Tribune
IMF slams tax-free sugar import
The International Monetary Fund (IMF) has reacted to a major breach of the $7 billion programme and conveyed its reservations about the government's decision to import 500,000 metric tonne of sugar by waiving taxes, in violation of written commitments. The development came as sugar prices officially hit Rs200 per kg for the first time in the country's history, according to the Pakistan Bureau of Statistics' (PBS) inflation bulletin released last Friday. Government sources told The Express Tribune that the IMF did not accept Pakistan's plea that the tax-free sugar import was justified due to a food emergency. The Federal Board of Revenue (FBR) had written to the IMF on behalf of the government. The supply situation tightened due to the government's earlier decision to export 765,000 metric tonnes of sugar. Sources said the IMF's reaction aligned with the finance ministry's assessment, which had forewarned of the $7 billion programme being "detracted" by two breaches. Pakistan is now in serious breach of the IMF programme after it violated written commitments not to grant preferential tax treatment or engage in commodity purchases. The Ministry of Finance, FBR, and IMF did not officially comment on the development. However, officials involved said the IMF had taken exception to the government's move to bypass it when deciding to import sugar, breaching two programme commitments. This marks the first test for the new IMF Mission Chief to Pakistan, Eva Ghirmai, and how she handles the situation. The government bypassed the IMF and swiftly waived taxes and issued an import tender, a move likely to create further mistrust between both sides, said the sources. Last week, the federal cabinet approved the import of 500,000 metric tonnes of sugar, waiving nearly all applicable import taxes to mitigate the negative impact of its earlier decision to allow sugar exports. The tax waiver was intended to reduce the imported sugar price by an estimated Rs82 per kilogram. With all applicable duties and taxes, the import price is estimated at around Rs245 per kg, though the exact price will be known once the government receives bids by this Friday. Federal Minister for National Food Security and Research Rana Tanveer Hussain stated that, due to a food emergency, the federal cabinet approved the import of 500,000 metric tonnes of sugar to stabilise local prices with immediate effect. Following the cabinet decision, the FBR issued three notifications to completely waive import duties and apply a nominal 0.25% sales tax and withholding tax rate, mainly for record-keeping purposes. The tax waivers apply to both private importers and the Trading Corporation of Pakistan (TCP), in breach of the IMF agreement. According to the FBR notification, "Pursuant to the Cabinet Decision, the withholding tax under section 148 shall be collected at the rate of 0.25% of the value of commercial import of sugar up to 500,000 tonnes by Commerce Division through TCP or private sector." The sales tax rate was reduced from a cumulative 21% to 0.25%, and duties were fully exempted. IMF programme documents state, "Do not grant tax amnesties, and do not issue any new preferential tax treatment, including exemptions, zero rating, tax credits, accelerated depreciation allowances, or special rates." The government proceeded with the sugar import despite its commitment to the IMF to phase out federal and provincial price-setting for agricultural commodities by the end of FY2025-26. The TCP has already issued a tender to import 300,000 metric tonnes of sugar, with a bid submission deadline of July 18. The government also committed that by December 2025, it would review relevant legislation underpinning market interventions and prepare recommendations on addressing issues like market abuse and anti-competitive behaviour through competition policy and less protectionist trade policies, according to sources. Sources said that after the cabinet waived taxes via circulation of the summary, the finance ministry raised objections with the Prime Minister's Office. According to insiders, the finance ministry stated that the summary for sugar import was approved by the Cabinet without input from the finance minister. The finance minister, last week, did not respond to a request for comment on whether he raised the issue with the prime minister. Sources said the ministry informed the PM that the waiver of duties and taxes on sugar imports violated Pakistan's agreement with the IMF. It reiterated that the government had agreed not to issue any new tax exemptions or preferential treatment. The ministry's concern was that these breaches could detract from the IMF programme. Sources said that, following the IMF's response, the government was evaluating options to manage the situation. These include TCP backing out of the imports entirely and withdrawing the tax waiver for the private sector. However, no final decision has been made. Sources added that the food minister again met with the Pakistan Sugar Mills Association (PSMA), which assured him it could meet domestic needs by starting the crushing season early. The government anticipates a sugar shortfall of 535,000 metric tonnes in OctoberNovember this year. The government of Prime Minister Shehbaz Sharif had earlier exported 765,000 metric tonnes of sugar, which pushed local prices from under Rs140 to Rs200 per kg.
Time of India
03-07-2025
- Politics
- Time of India
Maha govt approves Rs445 crore relief for disaster-hit farmers
Nagpur: The Maharashtra govt approved Rs445 crore in financial aid for farmers affected by natural disasters during the 2023–24 fiscal year, disbursing Rs245 crore through direct bank transfers. Tired of too many ads? go ad free now Relief and rehabilitation minister Makarand Jadhav-Patil informed the state assembly that the remaining funds would be transferred within the next few days. "Farmers are the backbone of our economy and govt will never abandon them in times of crisis," Jadhav-Patil said, assuring that compensation would meet the standards set by the National Disaster Response Fund (NDRF). He said that immediate assistance is provided following field inspections and damage reports, as mandated under relief protocols. The announcement followed a legislative discussion initiated by MLA Siddharth Kharat, with contributions from multiple legislators across party lines. The discussion highlighted crop and property damage due to extreme weather, particularly in Buldhana's Mehkar, Lonar, Chikhli, and Sindkhed Raja talukas, where rainfall above 65mm impacted over 50,000 hectares of soyabean, cotton, pulses, and vegetables crops. At least 73 houses were partially damaged, and two fatalities were reported. Jadhav-Patil assured that damage assessments were underway, and relief would be distributed as soon as reports were submitted. He reiterated that the govt would act swiftly to extend aid and revive rural livelihoods affected by erratic climate events. Deputy chief minister Ajit Pawar, addressing the House, underscored the govt's readiness to discuss all issues concerning the state's farmers. Tired of too many ads? go ad free now "We are fully aware of their hardships and are committed to addressing them. This govt is not afraid of accountability or debate," he said. "Farming is the spine of our economy. Protecting farmers' interests is a top policy priority." Pawar emphasised that no crisis, be it climatic or economic, would see the state turning its back on farmers. He assured that the govt would extend support under all circumstances, reiterating that the current administration considers itself "a govt of farmers, for farmers."
Time of India
29-06-2025
- Business
- Time of India
PWD to miss RTO Flyover deadline of July 31, likely to complete work by August
1 2 Nagpur: The National Highway (NH) division of the state public works department (PWD) is set to miss the deadline for the much-awaited RTO flyover on the busy Amravati Road once again, as multiple important works are yet to be completed. The PWD was supposed to complete the works by July 31 but is now likely to open the flyover to the public by August. The PWD has missed the deadline earlier too, as they were supposed to complete the flyover by March but received an extension until July 31. On Sunday, TOI visited the spot and observed that the PWD has started the work of the retaining wall for the landing of the flyover in front of RTO. However, the bridge reconstruction work is yet to be completed. The PWD has also almost completed the road concretisation work below the flyover from University Campus to Bole Petrol Pump. The PWD has already finished the construction of the 2.85 km long RTO flyover, which starts from University Campus Square and lands near the RTO on the bustling Amravati Road. However, the landing work is pending. For the landing work, the PWD needed to reconstruct a decades-old bridge near the RTO to accommodate the landing. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo "We have completed two of the three phases of the bridge at RTO and Ravi Nagar. The final phase will be completed in the next 15 days, and simultaneously, the retaining wall's work in front of the RTO will also be completed within the same time period. We will first complete the retaining wall on the Law College Square to Bole Petrol Pump Square side. The road from Bole Petrol Pump to Law College Square will be closed for traffic after the third phase of bridge reconstruction starts," said a PWD official. Interestingly, the PWD has also completed the road concretisation work below the flyover. "Now only the work of squares, including Law College, Ravi Nagar, Bharat Nagar, and Futala, is remaining," said the official. According to PWD sources, the department has sought permission from the garden department of Nagpur Municipal Corporation (NMC) to cut four heritage trees that are blocking the road below the flyover but were granted oral permission to cut only one tree. "We are awaiting permission to cut one tree, which is right in the middle of the road between Law College Square and the Bole Petrol Pump stretch. We planned a 7-metre road, which would have accommodated two vehicles at a time, but since the permission for three trees was denied, it would create a bottleneck. At the spot, the width has been reduced to 4.5 metres, so if a truck or bus passes from there, other vehicles will not be able to pass," said the PWD source. The flyover is being built at a cost of Rs245 crores. It was proposed along with the Wadi Flyover as part of the Rs478 crore Amravati Road Traffic Improvement Project (ARTIP) to reduce traffic congestion on the bustling Amravati Road. Both flyovers are a vital part of the ARTIP, which is spearheaded by the Ministry of Road Transport and Highways (MoRTH).
Business Recorder
07-06-2025
- Business Recorder
PFA launches crackdown ahead of Eid
LAHORE: An enforcement team of the Punjab Food Authority on Friday carried out a grand operation against the adulteration mafia in the Karol Ghati area and seized a large quantity of counterfeit cold drinks. The food safety teams discarded 180 litres of fake cold drinks and confiscated prohibited substances being used to manufacture spurious beverages. An FIR has been lodged against the unit. Director General Asim Javaid said that the food safety team recovered 3,900 ready-to-sell fake cold drink bottles, 250kg sweetener, 4,000 empty bottles, 60kg bottle caps, 200kg labels, chemicals, filling machines, gas cylinders, and drums. In a separate action, the teams inspected 14 food points near Multan Road, Daewoo and Jinnah Terminals. Three food outlets were fined a total of Rs245,000 for violations of food safety regulations. The DG said that banned and hazardous chemicals were being used to replicate well-known cold drink brands. All stock prepared for Eid supply was destroyed. He added that the violators failed to produce valid medical and training certificates for workers, while the premises were found unhygienic and insect-infested. He warned that consumption of fake beverages could cause severe stomach, liver, and kidney issues. He said the PFA has adopted a zero-tolerance policy against hazardous and substandard food products. Copyright Business Recorder, 2025
Business Recorder
31-05-2025
- Business
- Business Recorder
Ogra slashes LPG prices for June
ISLAMABAD: In line with a decline in oil prices globally, the Oil and Gas Regulatory Authority (OGRA) has issued a notification for the reduction in LPG prices for June 2025. The OGRA has reduced the price of a domestic LPG cylinder by Rs55 and a commercial cylinder by Rs210. There has been a reduction of Rs3,921 per metric ton in the government's production price. LPG prices down by Rs6.15 per kg Now, LPG will be available at Rs241 per kg instead of Rs245 per kg, a domestic cylinder will be available at Rs2,838 instead of Rs2,893, and a commercial cylinder will be available at Rs,10,920 instead of Rs11,130. The LPG producer price is linked with Saudi Aramco-CP and US$ dollar exchange rate. As compared to previous month, Saudi Aramco-CP has decreased by 2.67 per cent. The average dollar exchange rate has slightly increased by 0.35 per cent resulting to decrease in LPG consumer price by Rs54.60/11.8 kg cylinder (1.88 per cent). The per kg decrease in LPG consumer price is Rs4.62. Copyright Business Recorder, 2025
