Latest news with #UrbanImmovablePropertyTax
Business Recorder
21-06-2025
- Business
- Business Recorder
Fiscal consolidation and social sector expansion: Punjab govt maintains balanced approach
LAHORE: Despite fiscal challenges and persistent structural rigidities, the Punjab government has maintained a balanced approach between fiscal consolidation and social sector expansion. As per Punjab budget 2025-26 document, the NFC transfers and Provincial Own-Source Receipts for FY 2025–26 are estimated at Rs. 4,890.4 billion, driven by a 10.3% increase in Federal Divisible Pool transfers and a projected 13.3% increase in tax collection by Punjab Revenue Authority, reaching Rs. 340 billion. The province's Own Source Tax Revenue is estimated to grow 11.2%, underpinned by reforms in Urban Immovable Property Tax, Agriculture Income Tax alignment with FBR, and transition to a negative list regime under Punjab Sales Tax on Services Act. Punjab's fiscal framework has also been reinforced through the continuation of Public Financial Management (PFM) reforms. Following the enactment of the Punjab PFM Act, 2022, the province institutionalized several key reforms in FY 2024-25, including elimination of circular commodity debt, introduction of a new pension framework, operationalization of the Cash Management Fund, the Grant-in-Aid Policy, and a Medium-Term Debt Strategy, to name a few. The Parametric Pension reforms are projected to reduce accrued pension liabilities to Rs. 6.385 trillion - down from an otherwise estimated Rs. 11.883 trillion - while the Defined Contribution Scheme now applies to all new entrants, introducing a funded model and easing long-term fiscal pressure, the budget document reveals. It may be added that the Grant-in-Aid Policy enforces ceilings, eligibility criteria, and performance-based disbursements to enhance accountability. The Cash Management Fund allows productive investment of idle balances, supporting non-tax revenue and surplus targets. The Medium-Term Debt Strategy guides prudent borrowing, prioritizes concessional finance, and ensures compliance with debt ceilings under the PFM Act. Collectively, these reforms mark a decisive shift toward fiscal sustainability, transparency, and rules-based public financial management. Copyright Business Recorder, 2025
Business Recorder
10-05-2025
- Business
- Business Recorder
World Bank rates $118m KP project as ‘moderately satisfactory'
ISLAMABAD: The World Bank has rated the implementation progress of the 'Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management' project of around $118 million as moderately satisfactory. The project was approved in June 2019 with the development objective of increasing the collection of Khyber Pakhtunkhwa own source revenues and improve the management of public resources. The closing date of the project is end June 2026. Official documents revealed that the project became effective on June 18, 2019, with original closing date of 31 December 2024. However, the project delayed and the cost was revised to $110.85 million while the closing date to end June 2026. So far $96.36 million were disbursed while $19.05 million remained undisbursed. KP to allocate 100pc funds for near completion projects Progress towards achievement of project development objective is also rated as moderately satisfactory. The programme has recently made good implementation progress. The key achievements include efforts to improve cash management, digitising Urban Immovable Property Tax records in 10 cities, spending 82 per cent of Annual Development Funds on capital investments in fiscal year 2024, and rolling out the Financial Management Information System (FMIS) to 127 Tehsil municipal authorities. The operation support unit and shared services unit have been revamped, and plans have been revised to align with the programme's revised timeline. According to the bank documents, as per revised estimates, Khyber Pakhtunkhwa collected tax revenues of Rs56 billion from own sources in fiscal year 2024. Around 57 per cent of tax revenue was collected from sales tax, whereas, 25 per cent of tax revenue was collected from land revenue, stamp duty, property tax, and motor vehicle tax. Final audited numbers for tax revenue collection will be available by June 2025. The province's tax collections up to February 2025 was Rs36 billion or USD 129 million, against the target of USD 212 million. The provisional numbers for own source tax collections during fiscal year 2025 will be available by June 2025. Copyright Business Recorder, 2025
