Latest news with #Rs85
Time of India
9 hours ago
- Politics
- Time of India
KMC suspends 3 officials in Rs85L drainage scam claim
Kolhapur: Civic administrator K Manjulekshmi has suspended three Kolhapur Municipal Corporation (KMC) officials following allegations of their involvement in an Rs85 lakh scam related to drainage pipe laying work in the Badbade Mala area of Kasba Bawda. The suspensions come after former KMC corporator and Shiv Sena district coordinator Satyajit alias Nana Kadam on July 21 alleged that officials and a contractor colluded to submit fraudulent bills for uncompleted development work. Manjulekshmi has also formed a committee, comprising additional commissioner Shilpa Darekar and city engineer Ramesh Maskar, to investigate the matter thoroughly and submit a report within 48 hours. According to Kadam, the tender for laying drainage pipes was finalized in 2021 for an estimated cost of Rs2.4 crore. "A private contractor from the Kasba Bawda area was awarded the contract with an 18-month deadline. While the contractor submitted bills in five stages and received payment for four, a "fake Measurement Book (MB)" was prepared for the fifth bill without the completion of the remaining work. This allegedly led to the KMC disbursing approximately Rs85 lakh to the contractor based on these fraudulent documents," Kadam said. Replying to these allegations, the contractor concerned on July 26, via email, wrote to the chief minister, KMC administrator, district superintendent of police and the anti-corruption department, claiming that the bill has been taken as advance for the work done on the drainage pipeline. He also shared screenshots of the payments given to several KMC officials. After this, the KMC registered a case against the contractor, whereas an immediate inquiry was imposed against the civic officials concerned. The KMC, in a press release, said junior engineer, public works department assistant superintendent and senior clerk have been suspended. Manjulekshmi said, "The contractor has admitted in writing that he forged signatures. Therefore, Rs 85 lakh will be recovered from him. Also, criminal proceedings have been ordered in this case. The investigation of the officials, employees, bill approvers and others involved in this serious matter of fake bill approval and the entire process is ongoing."
Time of India
21-07-2025
- Politics
- Time of India
Kadam alleges Rs85 lakh scam in drainage work
Kolhapur: Satyajit Kadam, former KMC corporator and Shiv Sena district coordinator, on Monday publicly accused civic officials and a private contractor of Rs85 lakh scam related to a drainage work. Kadam, at a press conference, claimed that fake bills were submitted and payments were processed for work that was never completed. "A tender worth Rs2.4 crore was awarded in 2021 to a private contractor from Kasba Bawda for laying drainage pipes between Jadhav House and Badbade Mala in Ward No 2, Kasba Bawda (East)," he said. However, apparently only 40% of the work has been done even though the deadline expired three years ago. "The remaining 60% of the work is still pending. I have presented the evidence of this... to the KMC administrator, who has promised an investigation and strict action," he said. "The contractor demanded bills in 5 stages, of which KMC paid 4. Without completing the remaining work, a fake Measurement Book (MB) was prepared for the fifth bill, and KMC paid the approximate amount of Rs85 lakh to the contractor," Kadam added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Sticky Sweet Treat Is Healthier Than You Think – 15 Reasons to Add It to Your Diet! Learn More Undo The former corporator went on to say that due to the corrupt administration, drainage water is entering the fields of many farmers and houses of citizens in the Kasba Bawda area. "This is causing huge damage to agriculture and property," he said.
Express Tribune
10-07-2025
- Business
- Express Tribune
Incentive cuts may hit remittances
Listen to article State Bank of Pakistan (SBP) Acting Deputy Governor Dr Inayat Hussain cautioned on Wednesday that the government's decision to curtail subsidies for promoting foreign remittances, which hit a record $38 billion, may reduce the flow through banking channels. The statement came amid a disagreement between the federal government and the central bank on shouldering subsidies in the new fiscal year 2025-26 under the Pakistan Remittance Initiative (PRI). The finance ministry has not allocated any sum for the scheme while the central bank has also shown its inability to provide funds. The steps that the government has taken will push remittances back to the informal sector, said Inayat Hussain while speaking during a meeting of the Senate Standing Committee on Finance. Headed by Senator Saleem Mandviwalla, the committee had called the SBP to explain the reasons behind the faster increase in subsidies compared to remittances. In the past few years, the subsidies increased five times compared to a rise of only two times in remittances, said Mandviwalla. The central bank reported on Wednesday that workers' remittances rose 26.6% to $38.3 billion in the just ended fiscal year. Pakistan became the fifth largest recipient of foreign remittances in the world. The Pakistan Peoples Party government launched the PRI in 2009 when the amount remitted by overseas Pakistanis was just $7.8 billion. Remittances are now the single largest source of foreign earnings, which are even $6 billion higher than exports. However, last month the government substantially reduced the remittance incentives and allocated nothing in the budget for this fiscal year compared to Rs85 billion for the last fiscal year. Against the Rs85 billion allocation, the central bank billed Rs200 billion to the Ministry of Finance. Of the total cost, around 85%, or Rs170 billion, was under the Telegraphic Transfer (TT) Charges Scheme. Additional Finance Secretary Amjad Mehmood told the standing committee that the federal cabinet had approved a revision of the scheme following a summary moved by the finance ministry. The development came amid increasing pressure on the rupee, which further depreciated to Rs284.5 in the inter-bank market. In the open market, the rate was around Rs288 per dollar while in the grey market, the rate crossed Rs290, according to market players. The central bank issued a circular last week about revisions in the remittance scheme, which shows a substantial reduction in benefits for banks and exchange companies. Inayat Hussain told the committee that the government raised the minimum eligible transaction size to $200 and introduced a flat rebate of 20 Saudi riyal (SAR) per eligible transaction, effective from July 1, 2025. The old rate was from SAR20 to SAR35, which the government has cut by 43%. The TT Charges Scheme offers a zero-cost and free transfer model to the sender and receiver for eligible remittance transactions. The old model offered SAR20 reimbursement incentive for every transaction worth $100 and above, an additional per-transaction incentive of up to 10% on growth over the previous year and a further per-transaction incentive of SAR7 for growth exceeding 10% over the previous year. The federal government also decided that a mechanism should be established for gradually phasing out the Remittance Incentive Schemes. In that regard, the SBP would propose and present an evidence-based plan by factoring in the cost-benefit analysis of the existing schemes, Raast integration with Buna and SAMA gateways, and strengthening controls vis-a-vis the transfer of remittances through formal channels. The central bank deputy governor expressed concerns over these changes and any future plan to discontinue the scheme. "The scheme is very critical in bringing remittances from the informal sector to the formal sector," he emphasised. The government has also abolished the Exchange Companies Incentive Scheme (ECIS) under which these companies were getting up to Rs4 per dollar subsidy from the government. People were attributing the increase in remittances to the Financial Action Task Force (FATF)-related measures by foreign governments but the fact is that remittances were so small that these do not fall under the FATF purview, said Hussain. The deputy governor said that it was wrong to say that only banks were benefiting from the scheme as foreign remitters were also the beneficiaries. Despite reducing the benefits from July 1, the Ministry of Finance has not allocated any money for the remittance scheme.
Express Tribune
01-07-2025
- Business
- Express Tribune
Farmers demand end to GST on local cotton
Listen to article Following the government's decision to impose 18% General Sales Tax (GST) on imported cotton and yarn in the amended Finance Bill 2025, farmers and industry groups are now urging authorities to abolish GST on locally produced cotton and its by-products. Pakistan Kissan Ittihad (PKI) President Khalid Mahmood Khokhar has strongly opposed the continued taxation of domestic cotton, saying it unfairly targets local growers and further erodes already thin profit margins. While the Pakistan Business Forum (PBF) welcomed the tax on imported cotton to help restore balance in the textile value chain, it warned that domestic producers still bear the brunt. "Local spinners are still subject to GST, which they recover from farmers, effectively treating them as withholding agents. This is unjust and must be corrected," said PBF South Punjab Chairman Malik Talat Suhail. Cotton farmers, already burdened by soaring production costs, are finding it harder to keep cultivating. According to PKI, cotton output has dropped from 14.8 million bales in 2011-12 to under 7.5 million bales in 2024-25 — a decline of nearly 50%. Meanwhile, imports now exceed 5 million bales, and exports have nearly vanished. One major issue is the widening gap between input costs and output prices. In 2010-11, cotton fetched Rs5,500-6,000 per maund, or about $70 at the exchange rate of Rs85 per dollar. Now, in 2024-25, the price is around Rs7,600 per maund, equal to just $27 due to currency depreciation. This marks a 250% fall in dollar terms, while input costs have skyrocketed. Fertiliser prices have more than tripled in a decade. A 50kg bag of DAP (Diammonium Phosphate), once priced at Rs3,236, now costs Rs12,900 (298% rise). NP (Sarsabz Nitrophos) has jumped from Rs2,108 to Rs8,100 (284%), Urea from Rs1,035 to Rs4,230 (309%), and SOP (Sulphate of potash) from Rs2,807 to Rs10,000 (256%). These hikes have put over 90% of small and medium farmers under severe financial strain. Energy prices have also surged. Diesel has climbed from Rs85 per litre in 2012 to Rs264 in 2025. Electricity for irrigation has risen from Rs4 per unit to Rs42 — a 950% increase. Labour costs are up too, with cotton-picking charges rising from Rs100 per maund in 2010-11 to Rs1,000 per maund today. In response, PKI has outlined urgent reforms. These include abolishing the 14% GST on tractors to support mechanisation and removing the 18% GST on locally made tractor-mounted implements. They also demand removal of GST on "Khal Banaula," a key cotton by-product used in livestock feed. PKI has called for the creation of a Commodity Price Commission to ensure fair pricing and a guaranteed 25% return on farmer investments. They further propose a flat electricity rate of Rs10 per unit for irrigation tube wells and the timely export of surplus produce to stabilise prices and reduce losses. PBF echoed these concerns, stressing that taxes on cottonseed and cottonseed cake — exempt in most cotton-producing countries — hurt farmers and shift cultivation toward water-intensive crops, threatening both agriculture and water security. Both organisations warn that without bold reforms, Pakistan risks becoming a net importer of cotton.
Express Tribune
19-06-2025
- Business
- Express Tribune
Second PIA privatisation effort moves ahead with five bidders
Listen to article The government's renewed push to privatise Pakistan International Airlines (PIA) has drawn interest from eight parties, with five formally submitting pre-qualification documents ahead of Thursday's deadline, the Privatisation Commission confirmed. Among those to file documentation is a consortium comprising Lucky Cement, Hub Power Company, Kohat Cement, and Metro Ventures. A separate group including Arif Habib Corporation, Fatima Fertilizer, The City School, and Lake City Holdings has also expressed interest in acquiring a majority stake in the loss-making national carrier. Airblue and Fauji Fertilizer Company have submitted their documents independently, while expressions of interest were also received from Augment Securities, Serene Air, Bahria Foundation, Mega Holdings, and Equitas, who have indicated joint intent to participate. Read More: Deadline to bid for PIA extended to June 19 Of the eight interested parties, five met the June 19 submission deadline for pre-qualification. These entities will now be granted access to a virtual data room as part of the next phase of due diligence. The commission said that all submissions will be assessed against pre-defined eligibility and financial criteria. Buy-side due diligence has already commenced, with officials optimistic that the process may attract credible bidders in contrast to previous attempts. This marks the government's second attempt at privatising PIA after a failed bid last year. A 2024 auction had attracted just one bid — Rs10 billion ($36 million) from real estate developer Blue World City for a 60 per cent stake. The offer fell well below the government's floor price of Rs85 billion ($305 million) and was subsequently rejected. Also Read: Govt tightens PIA bidding terms This year, the Privatisation Commission reopened the process in April, inviting expressions of interest from both domestic and international investors for a majority stake ranging from 51 to 100 per cent in PIA. The initial deadline of June 3, 2025 was later extended to June 19 to accommodate prospective buyers. In an effort to ensure only financially viable parties move forward, the government introduced stricter qualification criteria for this round and explicitly barred provincial governments from participating in the bidding. The sale of PIA is expected to be Pakistan's first major privatisation in nearly two decades. Reviving loss-making state-owned enterprises such as PIA is a key structural benchmark under the country's ongoing $7 billion bailout programme with the International Monetary Fund (IMF).
