Ex-finance minister Shaukat Tarin quits PTI and Politics for good

[OMB]

Govt hires private firm for pay and pension reforms

The federal government is working on plans to rationalise the pay and pension of the government employees and has hired the services of a private firm in this regard, which is starting its work from Monday (today), sources have said.

There are several proposals under consideration, including elimination of wide disparity in salaries of employees of various ministries, divisions and departments, introduction of a new system to reduce the government’s pension bill and freezing the basic pay for pensions after completion of 25-year service.

The sources said that the government has hired a private company of international repute, which will operate under the supervision of the Pay and Pension Commission.

The Terms of Reference for this purpose would be introduced soon, the sources said. According to the finance ministry sources, the company would start its work on the reforms from Monday (today), adding that it will review the entire pay and pension structure and submit a comprehensive study to the government in six months.

However, they added, since the federal budget for the next fiscal year 2021-22 is expected in the first half of the next month, a proposal for a temporary relief of 15 to 20% in the salaries of government employees was under consideration.

On March 3 this year, the government allowed a 25% disparity reduction allowance after the government employees protested in the federal capital. The allowance was aimed at reducing the gap in the salaries of the government employees.

The sources said that a 15 to 20% increase in the salaries of the government employees is expected in the next budget but added that the increase would also be based on a formula to reduce the pay gap, which means that those employees receiving higher salaries and benefits will be given less increase.

The sources also said that the government is considering the introduction of contributory pension system for new recruits to minimise the pension bill.

Under the proposal, they added, a separate pension contributory fund could be created for which the World Bank might provide the seed money.

Another proposal is that the basic salary of a government employees should be frozen after completion of 25 years of service. It means that there will be no increment in the salary after 25 years, and hence the pension would also be based on the service of 25 years.

This proposal, the sources said, is aimed at encouraging the government employees to retire from the service at the end of 25-year service. However, they added that no final decision had been taken as yet on any of the proposals.

https://tribune.com.pk/story/2300147/15-20-raise-in-salaries-expected-in-budget

 

[MenInG]

Based on what are they asking this raise?

These people need a dose of reality.

 

[Mamoon]

We deserve a 50% raise but we will settle for 15-20% for now.

 

[King-Misbah]

We deserve a 50% raise but we will settle for 15-20% for now.

You deserve nothing, we are in the middle of a pandemic. Let's hope government employees now actually start doing their work properly.

 

[Zeshan547]

Based on what are they asking this raise?

These people need a dose of reality.

Based on what? Based on the inflation under Supreme leader watch which in comparison to 2018 is atleast 30 to 50 percent on most essential items. And it was on the rise even before covid hit. But don't worry it won't effect you guys and every government employee is corrupt and don't do work and so don't need this pay hike not even those who are earning even less to 30k pkr. Because it's all fake news. And we government employees are ranting for no reason and just want freebies. And by the way i like 25 years service basic pay freeze it will compel employees to early retirement and will create more jobs opportunities for younger generation. And the separate investment fund for pension is also good idea. Government can benefit from it also if the invest wisely.

 

[Zeshan547]

You deserve nothing, we are in the middle of a pandemic. Let's hope government employees now actually start doing their work properly.

[MENTION=131701]Mamoon[/MENTION] yeah Imran khan and his cult followers are doing all the work in all depermtents not employees and only Parliamentarians deserve 50 to 200% hikes. They the most honest and hard working people. And i am talking specially for under grade 17 employees who in allocated pay can't even have 3 time ka haq halal ka khana and education for their children and basic health expenses. Let alone any ayashi. These low salaries also compel and push honest employees toward corruption.

 

[Mamoon]

You deserve nothing, we are in the middle of a pandemic. Let's hope government employees now actually start doing their work properly.

It is very difficult to get a government job in Pakistan because the competition is immense, since almost everyone wants the job security and prestige that comes with government service.

However, when you are paying government employees peanuts compared to those in the private sector, you cannot expect them to be productive.

If the government wants government employees to pull up their socks and work with 100% dedication and efficiency, it will need to provide financial incentives. Government employees are not slaves.

 

[Mamoon]

[MENTION=131701]Mamoon[/MENTION] yeah Imran khan and his cult followers are doing all the work in all depermtents not employees and only Parliamentarians deserve 50 to 200% hikes. They the most honest and hard working people. And i am talking specially for under grade 17 employees who in allocated pay can't even have 3 time ka haq halal ka khana and education for their children and basic health expenses. Let alone any ayashi. These low salaries also compel and push honest employees toward corruption.

Then they blame these government employees for being unproductive and accepting bribes. Why won’t they?

It is easy to criticize and blame them when you are not in their shoes.

These PTI supporters, especially those living overseas, are clueless and unaware of the ground realities.

 

[Bewal Express]

[MENTION=131701]Mamoon[/MENTION] yeah Imran khan and his cult followers are doing all the work in all depermtents not employees and only Parliamentarians deserve 50 to 200% hikes. They the most honest and hard working people. And i am talking specially for under grade 17 employees who in allocated pay can't even have 3 time ka haq halal ka khana and education for their children and basic health expenses. Let alone any ayashi. These low salaries also compel and push honest employees toward corruption.

The Noora comes on, when challenged runs away. Why are the Nooras so scared to defend their crooked policies and leaders.

 

[Zeshan547]

The Noora comes on, when challenged runs away. Why are the Nooras so scared to defend their crooked policies and leaders.

Nobody is defending anyone here, i am not asking for asking for N league take over, but is asking hard questions to current government and their policies is forbidden or is the excuse that its all fault of previous government is enough for awam till doomsday. When this excuse expiry date is? maybe 70 years because 70 saal ka kachra hai 70 saal me he saaf hoga. Maybe is that distant future grand grand son of IK will be ruling our grand grand children and we will become the super power of the world. The most honest and corruption free country to exist on earth. Till than we awam should keep enjoying the sufferings because our leaders has good in intentions and we are on the way up. Bhai tab hm qbar me hun ge hmein kya fiada hoga us revolution ka.

 

[marlonbrowndo]

Good. Government employees are not payed enough in Pakistan and the ones who are dedicated and honest deserve this raise.

 

[Major]

Based on what are they asking this raise?

These people need a dose of reality.

Last year due to covid they were not given a raise. Each year raise is given based on the inflation rate that exist in the country.

 

[Major]

Having seen my father work in the govt sector and seen the problems they face.

Alot of talk by our overseas brethern here who think every govt servant is corrupt.

This pay is the only thing they probably get, or atleast someone who is not corrupt gets.

The house that they are suppose to get rent freez most govt officials never get the house as other senior officials live in those houses even after retirement.

The rent amount that is given back in 2012 for someone in grade 21 was like 28 in pindi and 35 in isb. You cant find a decent house in that rate.
A house in that rate means, a society that has gas issues, water issues. So you end uo paying for boozer aswell.

Than there is also the promotion issue. Many govt employees dont get promotions as their seniors block promotions or even block foreign postings.

Court cases take up to years.

The salary is not even ajusted with inflation every year which ia there right

 

[Major]

Forceful retirement after 25 years is also ridiculous.

Govt employees biggest issue is the promotion. You are never promoted to the next grade on time.
You have to be very lucky to get the promotions on time, but there is always a senior that will stop your promotion or a politcal appointee that hogs your spot.

25 years promotion makes sense if there was proper promotion of the govt employees

 

[King-Misbah]

It is very difficult to get a government job in Pakistan because the competition is immense, since almost everyone wants the job security and prestige that comes with government service.

However, when you are paying government employees peanuts compared to those in the private sector, you cannot expect them to be productive.

If the government wants government employees to pull up their socks and work with 100% dedication and efficiency, it will need to provide financial incentives. Government employees are not slaves.

If you are not happy with the public sector then don't work there. No one is forcing you, join the private sector.

 

[Major]

If you are not happy with the public sector then don't work there. No one is forcing you, join the private sector.

thats very irrational and doesn't work that way

Thats like me saying that an army, navy or airforce officer deserves do die as he choose to work there.

 

[Mamoon]

If you are not happy with the public sector then don't work there. No one is forcing you, join the private sector.

No thanks, I am very happy. I don’t want to work like a mule and I have job security. I also don’t need my government salary because I have other sources of income.

My argument is based on principle. It is not about me.

 

[King-Misbah]

thats very irrational and doesn't work that way

Thats like me saying that an army, navy or airforce officer deserves do die as he choose to work there.

You are comparing apples and oranges with that example.

I simply belive that if you do not like your situation, you should change it.

 

[Itachi]

You are comparing apples and oranges with that example.

I simply belive that if you do not like your situation, you should change it.

It will entitle the employer to create whatever rule they wants and unless people adhere to it, you'll be terminated which results in to exploitation.

By principle, every year govt employees gets increments depending upon the inflammation rate. same goes for India.

If last year, they were not paid increment, it's the right of the employees to receive the increment based upon rules devised by govt.

You are making it as if the employees are asking for raise in terms of begging.

There are labor rules in the world for a reason. Same for labor unions and I am sure, even in public sector, there's labor union to protect the interest of the employees.

 

[Major]

You are comparing apples and oranges with that example.

I simply belive that if you do not like your situation, you should change it.

You are saying its ok for someone to keep exploiting you.

Plus, you really think its easy for a 50 year old person to change careers

 

[Itachi]

You are saying its ok for someone to keep exploiting you.

Plus, you really think its easy for a 50 year old person to change careers

I've seen people having negative attitude towards govt employees. it's as if govt employees do nothing and takes out the salary sitting lazily.

Some employees are like that but there are also ones who are very dedicated. It's a very stressful sector regardless any country.

Since your father worked in the dept, I am sure you have seen how govt pressurize you putting loads and loads of work yet the salary remains the same throughout and that too rarely getting any promotion even if you work hard.

 

[Gharib Aadmi]

Excessive raise. If it was up to me, I would decrease their salaries by 15 to 20%.

Only good thing from the article is this:

The sources also said that the government is considering the introduction of contributory pension system for new recruits to minimise the pension bill.

Under the proposal, they added, a separate pension contributory fund could be created for which the World Bank might provide the seed money.

Pakistan pension system is not sustainable. Government employees need to contribute money to their pension, as well as work longer for it. And the ridiculous Family pension rules need to go asap.

How long can a government pension run in Pakistan? A government servant qualifies for post-retirement pension after 25 years of service. It continues till the pensioner’s death and is then converted into family pension for the heirs. Under the Punjab Pension Rules, the family pension goes to the widow of the deceased. After the death of the widow, it can be claimed by the surviving sons not above 24 years of age, unmarried or eldest widowed daughter, or even by the eldest widow of the deceased son of the pensioner. If or when no qualifying person from the second generation remains, the family pension is then paid to the eldest surviving son or the unmarried or widowed daughter of the deceased son of the pensioner.

https://tribune.com.pk/story/2252564/pension-for-100-years

 

[MenInG]

Pakistan budget 2021 discussion

Pakistan has shown willingness to take Rs30 billion worth personal income tax-related measures that may increase tax burden on some income groups but it seeks to protect the remaining exemptions in the next budget.

During talks with the International Monetary Fund (IMF), the taxmen have proposed to protect majority of the income tax exemptions, which if withdrawn will carry significant financial implications for the salaried people, judges, government servants and pensioners, the finance ministry sources said.

However, no final understanding has yet been reached with the IMF and a crucial meeting is expected next week, they added. The Federal Board of Revenue (FBR) has shared the initial working with the IMF.

The Rs30 billion personal income tax measures mean that some financial burden will still be put on the salaried individuals, business income persons. In addition to this, there could be rationalisation and withdrawal of income tax exemptions on house loans, education expenses, health insurance and tax credit for investment in shares, the sources said.

The government has already implemented Rs81 billion worth of corporate income tax related measures through a Presidential Ordinance. The sources said that half of the Rs30 billion tax measures are related to withdrawal of tax exemptions and about Rs10 billion pertain to adjustment of tax slabs for both salaried persons and non-salaried business income.

For instance, the income tax exemption available on flying allowance to pilots, engineers and navigators of the army, PIA, CAA submarine allowance to naval officers could be withdrawn. Similarly, the total allowances received by pilots of any Pakistani airlines may also be taxed at normal rates, said the sources.

The 25% tax credit that the teachers and researchers get may also be withdrawn, according to the sources. At present, the tax rate on profit on debt on Bahbood certificates, pensioners may be rationalised, said the sources.

The income tax exemption on the capital gains on disposal of immovable property acquired or allotted to ex-servicemen and serving personal of the armed forces or ex-employees or serving personnel could be withdrawn.

There might be Rs190 billion worth of sales tax measures in the budget, which are also half than what Pakistan had committed at the time of revival of the $6 billion programme.

Finance Minister Shaukat Tarin also seemed softening his stance on tax measures. While speaking at a Private TV channel on Saturday, Tarin said that some of sales tax exemptions might be withdrawn. This is contrary to his earlier position, when he had said that no additional revenue measures will be taken in the next fiscal year.

The sources said that the government was still trying to protect many income tax exemptions and was in process to convince the IMF that the time was not right for such measures due to the prevailing economic conditions.

They said that the government was not inclined to withdraw tax exemptions available on payments from profit on debt payable to a non-resident person and payments to individuals on account of profit on debt earned from a debt instrument.

The 5% reduced tax rate facility for Grade-20 to 22 bureaucrats on compulsory monetisation of car facility may continue. The government may not withdraw income tax exemption available to a technical, professional, scientific adviser or consultant or senior management staff by institutions of the Aga Khan Development Network, said the sources.

The allowances paid to the government servants serving abroad may also continue, said the sources. The income tax exemption on payment of internal security allowance, mess allowance, SSG allowance, Northern Areas compensatory allowance, special pay for Northern Areas and height allowance to the armed forces personnel may also continue, said the sources.

Similarly, any profit on debt derived from foreign currency accounts held with authorised banks in Pakistan, or certificate of investment issued by investment banks may also remain exempted, said the sources.

The currency accounts scheme introduced by the State Bank of Pakistan (SBP) for citizen of Pakistan residing abroad and remitting foreign exchange is also proposed to remain exempted, said the sources.

Taxpayers receiving dividend income from corporate agricultural enterprises may continue to enjoy their current status, subject to the endorsement by the IMF, said the sources.

The sources said that income of residents of former FATA/PATA is also proposed to be protected from the tax, although it has significant revenue implication of Rs5 billion, said the sources. The government has proposed Rs5.829 trillion tax target for the next fiscal year, which is about Rs134 billion less than what the IMF had suggested.

 

[OMB]

Rs96b reserved in next budget for MPs' projects

Sum includes Rs74b that will be utilised under SDGs Achievement Programme

The federal government on Wednesday approved another supplementary grant for parliamentarians' schemes, as it plans to spend over Rs96 billion on projects being recommended by lawmakers during its fourth year in power.

The sum of Rs96 billion spending includes the Rs74 billion that will be utilised under the Sustainable Development Goals (SDGs) Achievement Programme, which is outside the regular development schemes approval process.

Headed by Finance Minister Shaukat Tarin, the Economic Coordination Committee (ECC) of the Cabinet approved the diversion of Rs456 million for the interior ministry for meeting the requirements of the SDGs Achievement Programme, the finance ministry said.

The amount is over and above Rs24 billion budget that the PTI government had approved for SDGs plan for fiscal year 2020-21 ending on June 30.

The government had also earlier approved supplementary grants for the parliamentarians schemes being executed under the name of the SDGs programme.

However, in the next fiscal year 2021-22, the government has proposed a huge chunk of Rs74 billion for the SDGs programme. This sum is 208% more than this year’s original budget.

An amount of Rs56 billion has been parked under the cabinet division as single line budget. It will be distributed among the projects that the SDGs steering committee will approve on the recommendations of the members of parliament.

Another amount of Rs18 billion has also been allocated as SDGs supplementary funds and is camouflaged in the uplift budget of the planning and development ministry.

In its last year, the PML-N government spent Rs32.6 billion under the PM’s SDGs Achievement Fund.

Both the PML-N and the PTI have used the name of SDGs to push ahead with their political agendas.

The regular process for the approval of projects requires placing the development schemes for the scrutiny of the Planning Commission first, then for the Central Development Working Party and then for the approval of the Executive Committee of National Economic Committee, if the cost of the project is more than Rs10 billion.

However, the current government has greatly comprised this regular project approval process and has been clearing schemes worth billions of rupees, many in violation of the Public Finance Management Act 2019 that requires feasibility and economic rationales for adding a development scheme into the PSDP.

Also read Budget may do away with some income tax exemptions

For instance, 20 road projects were approved in haste on May 27 and are parked under the finance ministry and given an allocation of Rs22 billion for the next fiscal year.

After adding the Rs22 billion, the total budget for schemes that are directly and indirectly recommended by the parliamentarians has increased to Rs96 billion, according to planning ministry officials.

The government has added rehabilitation of Road from Tehsil Taunsa to N-70 (Chappar, Balochistan) worth Rs8.8 billion and allocated Rs1.75 billion under the finance ministry’s budget.

For the construction of a new road in Bahawalpur, a sum of Rs1.2 billion has been reserved in the next fiscal year.

For the upgrading of Kalabagh/Shakardara Road in Mianwali district, a cost of Rs800 million has also been allocated.

A total of Rs290 million has been reserved for the reconstruction of a road in Hafizabad. A sum of Rs1.8 billion has been allocated in next fiscal for the construction of a road in Sahiwal to Samundari.

For dualisation of a road in Muzaffargarh, a total of Rs1 billion has been reserved from the finance ministry’s budget.

The project for the construction of Lahore-Sialkot Motorway link road at a cost of Rs25.4 billion was approved on May 27 but has been given just Rs200 million in the next fiscal year.

For dualisation of the Lilla Interchange Road, a sum of Rs2.7 billion has been allocated. For dualisation of the Mandi Bahauddin City to Sarai Alamgir Canal road, a new project has been added to the PSDP and given a sum of Rs1.5 billion.

The construction of Awaran Road in Panjgur district has also been added to the PSDP with an allocation of Rs2 billion. The road is named after Defence Production Minister Zubaida Jalal.

Before coming into power, Prime Minister Imran Khan was against using the public funds for winning over voters.

On May 19, 11 schemes were approved under the Sindh Development Plan that are largely located in Badin, Ghotki, Sanghar, Thar, Mirpurkhas and Tando Mohammad Khan and were allocated a sum of only Rs810 million – meaning they will keep lingering on for years.

The ECC also approved Rs.1.5 billion for providing food subsidy to the AJK government and Rs5 billion to the interior ministry for the phase III of the Civil Armed Forces project.

Three other technical supplementary grants of Rs1.8 billion, Rs3.3 billion and Rs7.9 billion were approved for the finance division to provide funds to the K-P and Punjab governments for strengthening hospitals and effective response to Covid-19 and other natural calamities.Home vertical sub 2 and Business sub 1

https://tribune.com.pk/story/2303227/rs96b-reserved-in-next-budget-for-mps-projects

 

[MenInG]

The National Economic Council (NEC) on Monday approved Rs2.1 trillion for the national development outlay, as the federal government allocates nearly two-third of its budget for infrastructure projects to satisfy unhappy parliamentarians and meet national needs.

The meeting of the NEC – the constitutional economic decision making body, was marked by agitation by the Sindh chief minister over what he called “unjust treatment” being meted out to his province in allocations of budgetary resources.

The NEC approved Rs2.1 trillion national development outlay, which is higher by Rs535 billion or one-third over this year’s original budget.

The four provinces will spend Rs1.235 trillion from their own resources while the federal government has allocated Rs900 billion for the federal Public Sector Development Programme (PSDP). The proposed federal PSDP is higher by Rs250 billion or 38% over this year’s original budget of Rs650 billion.

The Pakistan Tehreek-e-Insaf (PTI) seems to be changing its course and has adopted a strategy in allocation of the development budget, which was the hallmark of its arch political rival – the Pakistan Muslim League-Nawaz (PML-N).

It has allocated 63% of total PSDP or Rs565 billion for infrastructure sector, according to the Ministry of Planning summary for the NEC. The health sector got only Rs30 billion or 3.3% and education sector Rs50 billion or 5.5% of the federal development budget.

The parliamentarians schemes have been given Rs68 billion but for Covid-19 Rs5 billion have been earmarked for next fiscal year. The agriculture sector has been given Rs12 billion or 1.3% of the budget.

Within infrastructure, proposed allocation for transport & communication sector is Rs307 billion or 34% of the total size. However, the Prime Minister Office’s handout showed the transport sector allocation at Rs244 billion.

The planning ministry summary showed that water sector allocation stood at Rs91billion or 10% as per commitment made under the National Water Policy. The energy sector’s proposed allocation is Rs118 billion or 13% of the total size. The physical planning & housing sector will get Rs49 billion ie 5.5% of the total size.

The Rs900 billion federal PSDP was equal to just 60% that the ministries had demanded for development activities for this fiscal year. The Ministry of Planning informed the NEC that ministries sought an allocation of Rs1.5 trillion. However, in its APCC summary, the planning ministry had showed demand at Rs2.5 trillion.

Read more: Govt to increase PSDP to Rs900 billion in upcoming budget

The government has approved 72% or Rs648 billion resources for ongoing projects and 28% new approved schemes.

Sindh Chief Minister Syed Murad Ali Shah complained that Sindh had been given only Rs1.5 billion while Punjab had been allocated Rs44 billion for provincial projects that are financed by the federal government.

Prime Minister Imran Khan maintained that no discrimination was meted out to Sindh in allocation of resources.

For the outgoing fiscal year, the government had allocated Rs650 billion under the PSDP. “An expenditure of Rs422 billion was reported as of June 3, 2021,” the NEC was informed. The planning ministry maintained that it is expected the entire allocated funds of Rs650 billion would be utilised by June 30, 2021.

However, the Rs422 billion utilisation was 65% of the total budget and the planning ministry is unrealistically expecting to spend Rs228 billion at a rate of Rs8.4 billion per day in the remainder period of this fiscal year. The utilisation of development funds remained on average at Rs1.24 billion a day during this fiscal year.

The planning ministry informed the NEC that it allowed inter and intra sectoral adjustment to the tune of Rs127 billion to various projects primarily to fast track projects implementation and support high impact initiatives.

Special initiatives in PSDP 2021-22

The PTI government has included Rs1.8 trillion worth three special packages in the next year’s financing plan but has made a mere allocation of Rs65 billion or 3.6% of the needs, suggesting that these politically motivated projects will take years for completion.

The federal government has formulated an accelerated development plan for southern Balochistan, in consultation with the military, at an estimated cost of Rs601 billion for the execution of 199 projects. But an allocation for Rs20 billion has been earmarked in PSDP 2021-22 for new projects, which is just 3.3% of the needs.

For the Karachi Transformation Plan of Rs739.2 billion, the government has proposed Rs25.4 billion in PSDP 2021-22.

The federal government has also approved a plan for 14 priority districts of Sindh to execute 107 projects at an estimated cost of Rs444 billion. About 50 projects costing Rs134 billion are to be funded through federal PSDP and 50 projects costing Rs74 billion under non-PSDP sources and seven projects costing Rs236 billion under PPP mode. An amount Rs19.5 billion has been earmarked for new projects in PSDP 2021-22 in addition to financing the ongoing portfolio.

For Khyber-Pakhtunkhwa (K-P) merged districts, the government has increased allocation for next financial year to Rs54 billion. It has proposed allocation of Rs14 billion for the Ten Billion Tsunami Programme. It also proposed allocation of Rs68 billion for parliamentarians’ projects.

The Ministry of Finance has been given Rs123.1 billion, largely for financing provincial projects, which is higher by Rs56 billion or 85% over this year. The Higher Education Commission will get Rs42.5 billion – up by Rs13 billion or 44%.

The Kashmir Affairs and Gilgit-Baltistan governments will get Rs70 billion, also higher by Rs17.6 billion or 33.6%. The health ministry will get Rs21.7 billion –higher by Rs7 billion or nearly 50%.

The Pakistan Atomic Energy Commission has been allocated Rs27 billion or Rs3.7 billion higher than this fiscal year.

The water resources ministry will get Rs103 billion – up by Rs21.7 billion or 16%. The Diamer-Bhasha dam will get Rs15.5 billion for construction and another Rs7 billion for land acquisition and resettlement of the affected population. Mohmand dam has been given only Rs5.5 billion for the next fiscal year.

The Pakistan Railways has been given Rs30 billion – also higher by Rs6 billion or 25%. But the Mainline-I project of the China-Pakistan Economic Corridor (CPEC) has been given mere Rs6.2 billion for the next fiscal year, indicating that the PTI government does not have a plan to start work on the strategically important project even during fourth year in power.

The National Highway Authority (NHA) budget has been reduced by Rs5 billion to Rs113.8 billion. The National Transmission & Despatch Company (NTDC) will receive Rs69.5 billion – higher by Rs30 billion or 75%.

The Covid-19 budget has been drastically reduced from Rs70 billion to just Rs5 billion – a reduction of 93%.

Published in The Express Tribune, June 8th, 2021.

 

[MenInG]

ISLAMABAD: Pakistan's health ministry has proposed a 30% increase in the tax rates for the cigarette industry in the upcoming budget 2021-22. The federal government is reviewing three different tax proposals.

Tobacco companies, however, proposed no change to the tax rates and say they will bring the tax amount from Rs134 billion to Rs155 billion, The News reported.

The FBR has collected a tax amount of Rs134 billion during the current fiscal year.

Read more: Pakistan’s fight against tobacco is getting harder

Multinational giants have proposed no change in the tax rates of the two tier system and committed to add Rs21 billion to FBR's tax collection amount.

If the much-awaited track and trace system is implemented, the FBR collection may go up to Rs175 billion in the next fiscal year.

Local cigarette manufacturers from Mardan and AJK have suggested the government reduce excise duty on local brands, but they did not make any commitment to increase revenue.

The three tax proposals

The following are the three different tax proposals being reviewed by the government:

The Ministry of National Health Services Regulations and Coordination, has recommended a 30% increase in excise duty and projected a Rs18 billion increase in revenue.

This would increase excise duty rates in the second tier from the existing rate of Rs1,650 per thousand cigarettes to Rs2,145 per thousand cigarettes, resulting in a Rs30 to Rs50 increase in the prices of duty-paid brands.

To the common man, this could be an ideal proposition, which seems to be aimed at increasing the government’s revenues and may also reduce the addiction to smoking, said one analyst.

The second proposal being pushed by Mardan and AJK-based tobacco conglomerates primarily seeks reduction in excise duty through a differentiated excise structure, but without any increase of revenue commitments.

The introduction of a separate third tier has been suggested as well, solely for local companies to operate in.

GEO

 

[MenInG]

The Pakistan Tehreek-e-Insaf (PTI) government is all set to unveil its third federal budget for the financial year 2021-22.

Following an improvement in key indicators that emerged in the Pakistan Economic Survey for the outgoing fiscal year, the country braces itself for a people-friendly budget for the upcoming year.

Finance Minister Shaukat Tarin said on Thursday that the stabilisation phase has passed and now the country was looking towards growth.

While unveiling the federal budget for the financial year 2021-22, Finance Minister Shaukat Tareen claimed, “We have dragged the economy out of trouble.”

Foundations of the economy have been strengthened. During PML-N’s tenure, the current account deficit was recorded at $20 billion, he added.

The exchange rate was fixed at Rs104 per dollar for five years. During this period, exports fell meanwhile imports rose by over 100%. The budget deficit stood at 6.6%.

External loans rose during the last years of the Nawaz Sharif-led government. As Rs1.2 trillion circular debt was inherited by the PTI government.

Tarin stated that useless loans were taken from the State Bank of Pakistan (SBP) and the depreciating rupee resulted in problems for the present government.

“Biggest challenge was to protect the economy,” the finance minister reiterated.

However, he mentioned that due to Covid-19, time consumed was way past expectations but “we succeeded.”

The current account deficit was converted to an $800 million surplus, austerity was adopted, moreover, funds were given through the Ehsaas programme, he added.

 

[Bewal Express]

The budget looks very ambitious and the tax collection target will be very difficult to meet. Apart from chore mashore of the opposition they have nothing to bring to the table, an absolutely useless opposition full of crooks

 

[MenInG]

More details:

Unveiling the federal budget for FY22, finance minister Shaukat Tarin kicked off the national assembly session by recalling the state of the economy that the Pakistan Tehreek-e-Insaf (PTI) government had received when it came into power.

He said that the current account deficit was at a historic high of $20 billion but the government through its prudent policies managed to drag the economy out of trouble.

He said that the budget deficit was at a high of 6.6% and the foreign exchange reserves were at a critical level of $10 billion at the end of PML-N’s tenure. However, the situation has now improved.

He said that the responsibility to fix the economy fell to the PTI government as the previous government had hampered the economy by taking loans and artificially was fixing the dollar at Rs104 for five years.

Moving on, he said the biggest challenge to the government was to avoid a financial default.

Highlighting the success of the PTI government, the minister said they had managed to bring the current account from deficit to a surplus of $800 million. He said that the economy was on the road to stabilisation and growth.

Talking about the Covid-19 outbreak, he said that the government had managed the situation well and saved the economy from crisis.

From March-May we faced the third crisis but through timely action, we managed to come out of this situation.

Talking about agriculture, the minister said that the agriculture sector witnessed historic growth.

Tarin claimed that Pakistan has now entered the growth club. “Economy is on the way of growth.”

Pakistan faced two faceted problems, however, the country managed to remain protected from default.

During the outgoing fiscal year, the country witnessed historic growth in the agriculture sector. Meanwhile, the large-scale manufacturing sector recorded growth after many years and posted 9% growth during FY21, he added.

All crops showed growth, he added.

And services sector including transport, banking, insurance recorded significant growth compared to previous years.

Tarin highlighted that poverty reduced and jobs were created.

“We succeeded in fighting grave consequences of Covid-19, despite the severe third wave which created more havoc compared to the first two waves,” he added.

“During these tough times, we enhanced hospital resources,” the finance minister said.

The low-income segment was benefited through the Ehsaas program which provided relief to 12 million households – covering 40% of the total population.

In the next fiscal year, the government expects $29 billion in remittances, he said.

With a record-high production in agriculture, the sector contributes Rs3.1 trillion to the national exchequer.

Growth in the large-scale manufacturing sector helped create jobs accommodating people who were laid off during the pandemic.

Sharing more details, the finance minister said that the e-commerce and fintech industry is expected to steer the online job ecosystem.

During the fiscal year 2020-21, tax revenue increased and showed 18% growth as tax receipts crossed Rs4 trillion.

Exports increased by a significant 14% as a rebate, duty drawback helped the sector flourish, he added.

Earlier in 2018 when the PTI government came into power, the current account deficit was a huge challenge, but now this is also under control.

Tarin mentioned that remittances rose 25% to $29 billion during FY21.

Read more: Rs96b reserved in next budget for MPs' projects

Shedding light on the issues, the finance minister said that inflation is a problem as it is affecting the low-income segment.

“It should be accepted that inflation is rising due to rise in food prices.”He claimed that $16 billion reserves are enough for imports for three months. Sufficient reserves are fuelling rupee stability.

“Pakistan is a food deficit country because the sector was neglected for past 15-20 years,” he clarified.

“We have to make Pakistan a food-sufficient country and for that, we have to focus on agriculture,” Tarin added.

Commodity warehousing, cold storages are the need of the hour. Moreover, the country needs administrative control mechanism.

Government debt is declining, public debt rose due to the Covid-19 package.

For the fiscal year 2021-22, the Imran Khan-led government aims for inclusive and sustainable growth.
With a target of 4.8% growth rate, the premier wants to turn the direction of the country.

During his budget speech, Tarin mentioned that four to six billion households will be given up to Rs5 lac interest-free loans.

Every agriculture-based household to get interest-free loans worth Rs1.5 lac, he said. While Rs20 lacs would be given in low-interest loans for low-cost housing.

The government aims to provide relief to the lower segment, hence this segment will be granted good incentives.

In Pakistan, 65% of the population is below 30 years of age and if the government cannot create jobs, it will wasting national advantage.

“Therefore, we want to ensure 6-7% growth over next few years,” Tarin added.

Special economic zones (SEZs) will be used to create jobs which will also ensure growth in exports.
While unveiling the budget, the finance minister mentioned that PTI’s government has decided to provide tax relief package.

Subsidy worth Rs3 lac rupee subsidy will be given. And for the first time, mortgage financing has been started.

Mark-up rates have been stabilized. Cash transfer, Kamyab Jawan programme, interest-free loans are all part of the Ehsaas programme, the government has allocated Rs260 billion for this development programme.

In the budget for the next fiscal year, a special plan for the elimination of circular debt would be introduced.

“The government plans to reduce line losses through investment,” Tarin added. Moreover, an electric vehicle policy would also be announced.

In the next fiscal year, the government has increased the PSDP budget to Rs900 billion from Rs630 billion.

Tarin assured that the government would improve road infrastructure. Furthermore, through PSDP, it will invest in high return projects.

Agriculture

Unveiling the federal budget, the finance minister announced a national agriculture emergency programme.

The government plans to enhance livestock on modern lines and has decided to allocate Rs12 billion for the most important sector.

Dasu, Diamar-Bhasha and Mohmand dams are a part of the budget. Rs91 billion have been allocated for water resources. Moreover, Rs14 billion have been allotted for the Neelum Jhelum power project.

Tarin mentioned that the ML-1 project will be completed in three packages.

Sharing the allocations for next year, he mentioned that Rs22 billion have been allocated to produce 100 MW electricity at Jamshoro.

Moreover, Rs22 billion have been allocated for coal-based power projects, Rs16.5 billion for Tarbela fifth extension and Rs118 billion for different power transmission lines.

Provincial transformation

Rs16.5 billion have been allocated for Karachi-based projects for the fiscal year 2021-22.
The federal government will grant Rs98 billion.

For developmental projects in Gilgit-Baltistan, the government has allocated Rs40 billion. Meanwhile, Rs54 billion have been allocated for Khyber-Pakhtunkhwa. Rs 601 billion will be given to South Balochistan for uplift programs, he added.

Train mentioned that Pakistan People’s Party has 50 projects worth Rs2 trillion, which include railway, water, aviation, road and health schemes.

The federal minister stated that Pakistan is one of the 10 countries most hit by climate change.

Highlighting PM Imran's vision of planting trees, he said Rs14 billion have been allocated for the government’s vision of “One Billion Tree Tsunami.”

Rs118 billion have been allotted under PSDP for the social uplift.

Non-tax revenues to rise by 22% during FY22, meanwhile federal expenditures to rise 15%.

Under the budget, $1.1 billion have been allocated for vaccine import

Sector-wise break-up

The finance minister stated that Rs12 billion have been allocated for SMEs.

Rs10 billion for the Kamyab Jawan programme and Rs66 billion will be granted to HEC, he said.

A self-assessment scheme would be introduced in the next fiscal year. Individuals can prepare their own tax returns.

Moreover, Tarin mentioned that an e-audit system will be introduced and audit will be done by international auditors.

Income and expenditure taxes would be primary instruments. Technology will be used to identify new taxpayers.

Providing relief, the finance minister said no taxes to be applied on salaried class.

Without substantial information, the Federal Board of Revenue would not conduct audits, he said.

Moreover, all retail and wholesale transactions will be added in the tax net and the rich people would be urged to pay their due taxes.

Read more: No hike in power tariff, new taxes, IMF told

The finance minister added that gifts will be awarded on sales tax receipts through a lucky draw on monthly basis.

Tarin revealed that Pakistan's single window project will be introduced for fast-track clearings goods from ports. A special cell for the retail sector will be established by FBR.

Moving towards tax relaxation for the auto sector, Tarin said that 850 CC cars will be exempted from federal excise duty and sales tax would be reduced.

The government decided to reduce sales tax on electric vehicles from 17% to 1%.

Moreover, for the uplift of a particular sector, import of plant, machinery, raw material in special technology zones will be exempted from taxes.

For the telecom sector, federal excise duty has been reduced from 17% to 16%, he said adding that the withholding tax will be reduced by 40%.

Moreover, the WHT from 12 documented sectors to be withdrawn, which include banking, Pakistan Stock Exchange, margin financing, air travel services, international transactions from debit and credit card, he added.

The finance minister further added that the WHT on mobile phone services has been reduced from 12% to 10%.

The government plans to further reduce taxes on mobile phone services to 8%.

Withholding tax on oil field services, warehousing services and collateral services have been reduced to 3% from 8%.

Furthermore, capital gains tax reduced from 15% to 12.5%. Furthermore, capital gains tax reduced from 15% to 12.5%. Tarin also revealed that the government plans to further reduce CGT in years to come.

For the next fiscal year, the association turnover tax limit has been increased from 10 million to 100 million, he said.

Tax rates for FMCG and refinery retailers have also been reduced by the incumbent government. Moreover, income tax and property tax has been removed, the minister said.

The government plans to set up five lac POS machines for tax credit. Withholding tax on import of books, magazines also exempted, he said.

Tarin said that SMEs with a turnover of Rs100 million will be taxed 0.25%, while small-medium enterprises with a turnover of Rs100-250 million will be taxed 1.5% of the turnover.

Services import through banking channels will be taxed at 1%. Furthermore, IT and IT exports will be given 100% tax credit.

The finance minister added that no tax will be taken on turnover from SEZs. Special technology zone authority, zone developers and zone enterprises to get 10-year tax exemption, he added.

The Telecom sector will be given industrial status in the fiscal year 2021-22. The finance minister also announces a one-year customs duty exemption for electric vehicles.

Rea more: Market watch: KSE-100 rises 118 points on budget optimism

Furthermore, additional customs duty and regulatory duty on 164 textile articles have been removed in the federal budget, these articles include yarn.

The finance minister said that tariffs for the cotton value chain, polyester value chain and man-made fiber has been reduced.

Road alloy and steel material were also exempted from additional customs duty and regulatory duty on these has also been reduced.

Customs duty was removed from the disposable syringes industry. The dairy industry has also given tax relief, the minister added.


https://tribune.com.pk/story/2304715/government-sets-minimum-wage-at-rs20000

 

[Last Monetarist]

https://www.dawn.com/news/1628797/opposition-rejects-govts-narrative-of-economic-growth-vows-to-oppose-budget

Leaders of the opposition came together on Friday to reject the government's stance of economic growth and development in today's budget session, saying they would join hands to give it a "tough time" over the federal budget for fiscal year 2021-22.

Speaking to the media in Islamabad alongside PPP Chairman Bilawal Bhutto-Zardari after the National Assembly budget session, PML-N President Shehbaz Sharif said: "All opposition parties in parliament have decided we will give a tough time to the government and expose it, the false figures they've shown and the distortion [in numbers] they've done."

He blasted the government's narrative on the state of the economy, questioning how could the economy improve when "the poor [man] is dying, he can't get bread for a one-time meal, there is a wave of poverty and unemployment in the country."

Shehbaz said these issues would be jointly addressed in parliament and "we will give a tough time to the government in passing the budget."

Bilawal similarly lashed out at today's budget presentation and said it did not align with reality, claiming that even people listening to the speech would've thought it was the budget of another country.

He said the prime minister and finance minister's stance, of economic development while the country was facing "historic poverty, unemployment and inflation", held no weight and was akin to "rubbing salt into the wounds of the people of Pakistan who are suffering."

The PPP chairman also expressed his support for a united opposition front to challenge the budget, saying: "We think the differences of the opposition and other political parties have their own place [but] we have to challenge this budget and unqualified, unfit and selected government together.

"As I promised in front of you, we are unconditionally giving all the votes of the PPP MNAs against this budget to Leader of the Opposition (in the National Assembly) Shehbaz Sharif to use against this government."

Last week, Bilawal had said the PPP would support Shehbaz on the budget despite the inappropriate behaviour of some PML-N members. Addressing a press conference in Islamabad, he had said: "I unconditionally say to Shehbaz Sharif in front of the media that all PPP members will be in your support with regards to the parliament and this [upcoming] budget despite the tantrums [of some PML-N members]."

Prior to the budget session today, Bilawal chaired a meeting of the PPP parliamentary committee to decide the party's strategy for the session. He had directed PPP MNAs to give a "tough time" to the government, saying the PTI had devised an "anti-poor", "political" and "selected" budget.

Bilawal also joined in a protest of government employees outside Parliament House today and questioned why the protesters were not being paid their salaries or given an increase despite the claims of economic development by the government.

Lamenting the government's proposed 10 per cent salary increase in the budget, he said "at least an increase of 30pc [in salaries] should've been done [...] and the minimum wage should've at least been increased to Rs25,000."

He said it was the entire opposition's demand that injustice with government employees and white-collar workers would not be tolerated, adding that "we will raise your demands on the floor of the house and will do whatever is possible of us to stop this budget."

Meanwhile, PML-N leader Ahsan Iqbal also lashed out at the government's proposed 10pc increase in salaries, terming it the "worst joke" and akin to "rubbing salt on their (salaried class) wounds".

"We reject it," he said, adding that at least a 25pc increase in salaries should've been done to compensate for no increase in the past three years.

 

[Bewal Express]

This budget will make or break his govt. My worry is that the tax receipts predicted are overly optimistic and there could be a shortfall. The move to self assessment will work if people can trust themselves to be reasonably honest, but we have no real tax paying culture and the whole thing could go pear shaped. If its going to work then FBR and the auditing dept must have some real teeth and heavy fines will have to be imposed on the tax evaders, something a crooked FBR has always failed on. Instead they take the easy option of fleecing the people that already pay tax. Reform of customs could bring in another 150bn and stopping the smuggling of oil from Iran could also bring a similar amount. Taxing the sugar industry on their super profits could also bring in another 150bn+.

 

[Savak]

Marina Khan the Pakistani actress having a real go at the pti govt on her IG account ie have the ministers ever gone to the market to see how expensive the basic necessities are

A worrying trend where I am now seeing where people are clamouring for corrupt but competent leadership over honest but incompetent leaders

 

[DRsohail]

[MENTION=131701]Mamoon[/MENTION] [MENTION=135038]Major[/MENTION] the most pianful thing for me a government employee in peripheral area is the behaviour of our administration, Oh my God they are corrupt to the core.We have been thrown to the wolves where a matric fail clerk is managing, blackmailing the doctors and paramedics, One of my biggest mistake not to move out of the country on time, it's COVID and I have applied for more than than three foreign lisecence, once I get I think the frustion will be over, I can't describe my disappointment and frustration.other than pay raise there are countless issues.

 

[MenInG]

The federal government on Friday slapped at least Rs383 billion worth of additional taxes – and nearly 70% are regressive in nature and highly inflationary aimed at achieving the Rs5.829-trillion tax target.

The single largest tax measure is Rs1 tax on every call lasting more than three minutes, 10 paisa tax on every SMS and Rs5 tax on use of each 1 gigabyte (GB) of internet to generate Rs100 billion additional taxes.

Similarly, the government has also imposed 17% sales tax on import of crude oil to generate another Rs38 billion in taxes. However, the crude oil import tax estimates appeared on the lower end.

The government has imposed new taxes on almost every important consumable and daily use item, including sugar that will now be taxed at a retail stage and its price will go up by about Rs7 per kilogram. However, the industrialists and stock market players have been given relief in their tax burden.

“The government has proposed Rs383 billion gross revenue measures and has also given Rs119 billion tax concessions,” said Chaudhry Mohammad Tariq, Member Inland Revenue Policy of the Federal Board of Revenue (FBR) while briefing media about new tax measures. Tariq said that the net new revenue measures were Rs264 billion for fiscal year 2021-22, starting from July 1.

Read: Govt scales back tax target by Rs26b

At least Rs116 billion worth of additional income tax measures have been proposed by the government for the next fiscal year. Tariq said that the government has also given relief of Rs58 billion in tax, thus, the net impact of the income tax measures will be Rs58 billion.

Similarly, around Rs215 billion worth sales tax and federal excise duty measures have been taken in the budget. The government has also provided relief of Rs19 billion under the GST, bringing net impact of the GST and FED measures to Rs196 billion.

The government has slapped Rs52 billion worth of customs duties in the budget, said Syed Hamid Ali, Member Customs Policy of the FBR. He said that the government has also given Rs42 billion relief and the net impact of the customs duties will be Rs10 billion.

Tariq said that the government would also collect another Rs242 billion on account of administrative and enforcement measures.

These massive taxation measures suggest that Pakistan has almost accepted all the demands of the International Monetary Fund (IMF), except increasing direct burden of the salaried class. However, its single measure to impose tax on mobile and internet users will fetch revenue, which is more than what the IMF had asked to recover from the salaried class.

The IMF had initially asked to set the tax target at Rs5.963 trillion that has subsequently been downward revised.

In the present economic conditions, the taxation burden on one class of the society cannot be put and the decision to impose taxes on the mobile phone and internet users will spread the impact on all the people, said Tariq.

The annual cost of tax exemptions being given to various segments of the society and foreign investors has further jumped to a new record of Rs1.31 trillion – an increase of over 14% within a year in this fiscal year, showed Pakistan Economic Survey 2020-21. Cumulatively, the government has given Rs3.43 trillion in tax exemptions during three years, which is even more than the federal government's debt servicing cost.

Tariq said that the government has proposed Rs5.829 trillion tax collection target for the FBR, which is 24% higher than the anticipated downward revised collection of Rs4.7 trillion. He said that this target will be achieved on the back of Rs242 billion enforcement measures and net Rs264 billion taxation measures.

The Rs4.7 trillion collections will be equal to 9.9% of GDP while for the next fiscal year the government has set the target at 10.8% of GDP. It has proposed additional revenue measures for achieving this goal.

The government has also taken some measures, which will encourage informal economy. The federal excise duty on production in erstwhile FATA and PATA areas has been abolished, which will result into shifting of production to either in these areas or on papers the production will be shown in these exempted areas.

The government has also relaxed the turnover limit for small industry from Rs3 million to Rs10 million to exempt it from the requirement of availing the sales tax registration number. However, it proposed legislative changes to raid on the retail shops to check smuggled goods.

Customs measures

The government has proposed to increase regulatory duties on the import of the mobile phones to generate Rs16 billion additional revenues. Ali said that Pakistan imported Rs270 billion worth of mobile phones in this fiscal year, which needs to be discouraged.

It has also increased the customs duty on import of petrol from 5% to 10% but reduce the duty by 3% to 10% on high speed diesel, which it said would generate additional Rs4 billion in taxes. The government has also revised the duties on import of cars, which will result into additional revenue of Rs15 billion.

It, however, reduced customs duty on up to 850cc car from 30% to 15%, abolished 7% additional customs duty, and 15% regulatory duty. About 83 types of imported items including food and cosmetics have been taxed to generate Rs11 billion additional revenues.

The regulatory duty on tyres has been doubled to 10% to generate Rs5 billion.

Ali said that the government has reduced custom duties on use of items being imported by the textile sector. This will cost the kitty Rs12 billion. Similarity, Rs11 billion worth relief in customs duties has been given to the construction sector. The Rs6 billion worth relief has been given to the chemical importers by lowering custom duties.

The government has imposed Rs1 per call tax on mobile users, 10 paisa per SMS and Rs5 per GB internet use to raise Rs100 billion. It has also imposed 17% GST on import of crude oil to generate Rs38 billion. About 23 items that were subject to reduced GST rate from 1% to 12% have been imposed with 17 sales taxes to generate Rs35 billion. These include silver, gold, jewellery, fat filled milk, LNG and RLNG.

Similarly, Rs14 billion will be generated by imposing 17% sales tax on cereals, milk and cream, frozen meat and sausages, fat filled milk. The online retail outlets have been slapped with 17% sales tax for the sake of Rs11 billion revenues. The point of sales related measures will generate Rs7 billion additional taxes.

The government has exempted industrial units located in FATA from 17% FED that will cause Rs5 billion loss. The sales tax on 850cc cars has been reduced to 12.5% that will cause Rs2.5 billion loss, said Tariq. The 5% FED on fruit juices has been abolished.

Income tax

The government has withdrawn tax concessions available on new investments by the industries to generate Rs65 billion taxes. The inter-corporate dividend has also been taxed at the rate of 15% to generate Rs5 billion revenues. Tariq said that Rs20 billion will be generated by streamlining the withholding taxes.



The interest income of above Rs5 million a year will be charged under normal tax regime to get Rs4 billion revenues. Similarly, the capital gains of above Rs5 million on sale of immovable property will be taxed under normal regime to generate Rs4 billion. The property income is also brought under normal tax regime to get Rs2 billion tax.

The export of services will be taxed at 1% rate to generate Rs5 billion.

The electricity bills of over Rs25,000 of non-filers of the income tax returns will be subject to 7.5% income tax.

The government has reduced the minimum turnover tax by 0.25% to 1.25%, for refineries to 0.5% and for fast moving consumer goods to 0.25% that will provide Rs15 billion relief, said Tariq.

Also read: ECC reviews tax exemption on Covid-19 imports

Similarly, the government has reduced the capital gains tax on stock market to 12.5% that will cause Rs2 billion revenue loss.

The government has abolished 12 types of withholding taxes that will cause Rs15 billion loss. These are related to banking transactions, air travel, stock exchange, CNG stations, petroleum products, international credit card transactions and extraction of minerals and sale of spices.

Enforcement measures

The government has proposed to collect Rs242 billion through enforcement measures. The government would collect additional Rs160 billion at domestic taxes stage without resorting to additional taxes. Another Rs82 billion are assured to be collected on account of customs duties-related administrative measures.

The government has promised the IMF that it would collect Rs30 billion on account of arrears stuck up at various stages while rationalising its earlier figure of Rs70 billion. It also hopes to collect Rs20 billion through audit and another Rs20 billion through enhanced monitoring of sales tax. It would collect Rs20 billion by installing track and trace system, also watering down its earlier wish of showing Rs50 billion under this head.

The collection of Rs50 billion has been shown under the head of integration of point of Sales of the retail shops. In customs, Pakistan has assured the IMF that it would generate Rs35 billion by curbing smuggling of tea, tyres textile and petroleum products.

 

[Bewal Express]

Marina Khan the Pakistani actress having a real go at the pti govt on her IG account ie have the ministers ever gone to the market to see how expensive the basic necessities are

A worrying trend where I am now seeing where people are clamouring for corrupt but competent leadership over honest but incompetent leaders

They kept the lid on inflation by manipulation of the Rp but as we know that wasn't sustainable. So the corrupt managed hide their incompetence but had they been in power after 2018, the country would have fallen apart.
On top of ending of currency manipulation,World prices are going up very fast

"Global food prices, as measured by a World Bank food price index, rose 14% last year"
https://blogs.worldbank.org/voices/covid-crisis-fueling-food-price-rises-worlds-poorest

"Food prices have jumped by nearly a third over the past year, according to the Food and Agriculture Organization of the United Nations, even as pandemic-related job losses are making it harder for families to afford basic staples. Corn prices are 67% higher than a year ago, the FAO says, while sugar is up nearly 60%, and prices for cooking oil have doubled"
https://www.google.com/amp/s/www.ws...r-compounding-woes-of-worlds-poor-11621519202

 

[OMB]

Opposition’s hue and cry fails to thwart budget session

On most occasions, it seemed that the opposition members were competing to create loud noises

The opposition parties’ protest in the National Assembly on Friday during the 2021-22 budget session could best be described as useless or pointless as, unlike previous years and contrary to their announcement of staging strong protest, the intensity of the protest this time around was somewhat lower than the previous years.

For the viewers of the award-winning hit series House of Cards, the rumpus in NA could best be summed up in the words of Frank Underwood who, in one of his famous dialogues, said: “there are two kinds of pain; the sort of pain that makes you strong or useless pain.”

Despite all the hue and cry, the opposition parties’ lawmakers neither surrounded the Prime Minister Imran Khan, Finance Minister Shaukat Tarin or NA speaker’s dais, nor did they tear up the budget speech or staged a token walkout, all of which has been considered a sort of permanent features of previous years’ protests.

However, the opposition parties did manage to slam the budget documents on desks and continued raising slogans against the government with such intensity that it drowned out the voice of the finance minister.

The treasury benches occasionally countered the hue and cry made by the opposition parties by desk-thumping whenever the finance minister shared positive news for the next fiscal year.Meanwhile, as the session began, members of government benches gathered around the premier during the recitation of Naat, leading Speaker Asad Qaiser to ask them to go back to their seats.

As the Finance Minister Shaukat Tarin commenced his speech, Sharif and Bilawal entered the House whereupon the opposition members greeted the two leaders by desk-thumping and chanting slogans. Thus began the futile and shallow protest, casting little or no effect at all on the outcome of the proceedings.

On most occasions during the session, it seemed that the opposition members were competing to create loud noises by banging the books harder on their desks. Despite speaker’s directions, the opposition lawmakers continued to make videos of their protest, apparently to keep a record and share on WhatsApp groups and social media.

A day after the deputy speaker humiliated the opposition parties by bulldozing the NA proceedings, which pushed the opposition parties to file a no-confidence move against him, the opposition appeared all charged-up to sabotage the session by merely creating cacophony.

On the contrary, the members of the treasury benches remained calm and equanimous as if nothing was going on. The PM, ministers and almost every MNA on government side kept reading the budget documents and ignored the protest.

Sensing the gravity of the opposition’s move, the treasury side stood up and tried to thwart the move, which led to heated argument and the speaker had to ask the opposition side to move back to their territory.

As the government side was persuading the opposition lawmakers to go back to their side, PTI’s MNA Saif Ur Rehman taunted the opposition lawmakers for using the women MNAs as shield to invade into government’s territory.

PML-N members Maryam Aurangzeb, Seema Jilani, Shaista Malik, Rubina Khurshid and other women carrying anti-government placards managed to stand behind the finance minister where their placards began to appear on state TV frames.

However, women PTI members, including Uzma Riaz, Asma Qadeer and Shandana Gulzar, tried to snatch posters and managed to tear a couple. The only time the house saw tranquillity was when Azan was offered.

Interestingly, after the budget speech, PM Imran went to finance minister’s seat and lauded him, patting on his shoulder for delivering the speech amid the noisy session. Subsequently, the speaker adjourned the proceeding till 4pm on Monday.

https://tribune.com.pk/story/2304788/oppositions-hue-and-cry-fails-to-thwart-budget-session

 

[PetroDollars]

20 years of promises of cutting the defense budget and increaseing the education budget to 20%, i wonder what happened to that lie of IK

 

[Bewal Express]

20 years of promises of cutting the defense budget and increaseing the education budget to 20%, i wonder what happened to that lie of IK

So you want to cut our defence expenditure when our enemies are spending 5 times more to encircle us. You narrative is what the Hindutuva argue on here. No No and never.

 

[Itachi]

So you want to cut our defence expenditure when our enemies are spending 5 times more to encircle us. You narrative is what the Hindutuva argue on here. No No and never.

Then why IK gives out promises which he never keeps?

The hypocrisy of him is showing more and more as days are passing by. Though I am not surprised since he did advocate for U TURNS in the interview with AL Jazeera.

 

[PetroDollars]

So you want to cut our defence expenditure when our enemies are spending 5 times more to encircle us. You narrative is what the Hindutuva argue on here. No No and never.

thats a typical war mongers response

Pakistan already has a better airforce then India, there not under any threat other then the illusion IK gives, we dont need any more expenditure on the army, IK spent 20 years preaching this, now his followers follow him blindly without looking at the facts.

 

[GoUgandaCranes]

20 years of promises of cutting the defense budget and increaseing the education budget to 20%, i wonder what happened to that lie of IK

Then why IK gives out promises which he never keeps?

The hypocrisy of him is showing more and more as days are passing by. Though I am not surprised since he did advocate for U TURNS in the interview with AL Jazeera.

This is the federal budget. The thing to note here is that the defense budget has not increased in the federal budget. The claim by past civilian leaders that they are ousted because they refuse to increase the defense budget is squashed here.

Next, there's also a provincial budget that each province manages and the education sector falls under each province after the 18th ammendment. That budget is the prerogative of each province and when you add both the federal expenditure and the provincial budget, there's an overall increase in the education budget for the country.

The biggest portion of Pakistan's money goes to paying interest on taxes, that money is three times the defense budget (approx) this year and is the biggest growth blocker for Pakistan.

 

[mazkhan]

So you want to cut our defence expenditure when our enemies are spending 5 times more to encircle us. You narrative is what the Hindutuva argue on here. No No and never.

And yet they have lost every single war with india .

And plunged country into insurgency from their own ill devised policies .

Maybe they can get advise from azerbaijan or the Afghan taliban in winning conflicts without breaking the bank .

Azerbaijan with drones took out armenia.

And afghan taliban a militia of farmers bought usa a massive superpower to a stalemate so even the Afghan taliban are.more accomplished than our jawaans.

Also 300 billion rupiah from.civilian budget is for military retirements, more haram money these faujis are eating which could be spent on poor civilians education health water

 

[Bewal Express]

And yet they have lost every single war with india .

And plunged country into insurgency from their own ill devised policies .

Maybe they can get advise from azerbaijan or the Afghan taliban in winning conflicts without breaking the bank .

Azerbaijan with drones took out armenia.

And afghan taliban a militia of farmers bought usa a massive superpower to a stalemate so even the Afghan taliban are.more accomplished than our jawaans.

Also 300 billion rupiah from.civilian budget is for military retirements, more haram money these faujis are eating which could be spent on poor civilians education health water

No we haven't. In 48 we took a 1/3rd of Kashmir, I don't see that as a loss, especially when we had little of the British weapons, in 65 it was a draw.

 

[MenInG]

Chairman Pakistan People's Party (PPP) Bilawal Bhutto Zardari on Saturday said that Prime Minister Imran Khan has made his "anti-people and anti-poor" agenda clear through the latest budget.

"An entire year has passed but the condition of the people did not change, a budget was presented but the poor are unable to feed themselves," said the PPP chairperson in a statement released today.

"If there is historic inflation, joblessness and poverty, how can the budget be (termed) people-friendly," he questioned.

Bilawal went on to say that when the Pakistan Tehreek-e-Insaf (PTI) government was presenting its 'anti-people' budget, government employees were protesting against inflation outside the Parliament.

Read Govt’s agreement with IMF has challenged nation’s sovereignty: Bilawal

"People now know that Imran Khan has a habit of making tall claims. The prime minister has failed in providing relief to the common man," he maintained.

"Pakistan People's Party will not let Imran Khan resort to the economic annihilation of the people," Bilawal concluded.

A day before, on Friday, Prime Minister Imran Khan said the government could not provide relief to the people of the country as all resources were utilised for economic recovery and now that it has taken place, the focus of this year’s budget is on providing relief to the weaker sections.

“After this budget, the pace of development work across the country will accelerate. Our priority is the farmer. We are eliminating the role of middleman,” Premier Imran said while addressing a federal cabinet meeting.

 

[MenInG]

Finance Minister Shaukat Tarin on Saturday announced dropping taxes worth Rs100 billion proposed on cellular calls and internet usage.

However, he added that the petroleum levy per litre rate would have to be increased to Rs30 to achieve the annual target of Rs610 billion.

Speaking at a post-budget news conference, Tarin said an understanding with Saudi Arabia had also been reached for receiving oil on deferred payments.

“A request has also been made to the IMF [International Monetary Fund] to allow a six-month extension in the construction sector tax amnesty scheme,” he added.

Elaborating on the tax relief, he said the government was not imposing the three types of taxes proposed to be levied on mobile phone calls, SMS and internet.

“The federal cabinet had opposed the decision to impose a Re1 per call federal excise duty, 10 paisas per SMS and Rs5 per gigabyte of internet data use,” he added.

A cabinet member told The Express Tribune that the cabinet had unanimously rejected the Rs5 per GB tax and no decision was made taken on the proposals of cellular calls and SMSes.

The decision to withdraw these two taxes was taken on Saturday, an official of the Federal Board of Revenue (FBR) disclosed.

Read: Govt scales back tax target by Rs26b

“One of the reasons behind withdrawing these proposals was that these services are already taxed by the provinces in the form of sales tax on services and the enforcement of these measures would have raised constitutional questions,” he added.

Tarin clarified that the government would not reduce the Public Sector Development Programme to compensate the Rs100 billion losses. “We have some other options,” he added.

A cabinet member said the government might increase taxes on the tobacco industry to compensate for the loss.

The government had proposed a sum of Rs383 billion in new taxes, which has now been reduced to Rs283 billion.

“We have not quit the IMF programme and if the 6th review could not be completed in July then it would be done in September,” the finance minister said in response to a question.

“The IMF is demanding a 100% increase in personal income tax and 46% increase in power tariffs,” he added.

“We will be on track with the IMF programme and the Rs496 billion ($3.1 billion) loans will be taken in the next fiscal year.”

The sources said there was still disagreement on whether or not the FBR could generate another Rs242 billion through administrative means.

To another question about further increasing taxes on petroleum products, the finance minister said that to achieve the Rs610 billion petroleum levy target, the government would eventually have to increase the rate to Rs30 per litre.

Lifting US sanctions on Iran will result in reduction in crude oil prices in the international market and during those times, the government will not pass on the instant relief to consumers to make up for it, he explained.

The minister also said an understanding had been reached with Saudi Arabia on oil on deferred payments but its quantum and terms had not been finalised yet.

“The revival of this facility will also help to lower the taxes on petroleum products.”

Tarin said the government had requested the IMF to further extend the tax amnesty scheme for six months. “The scheme will continue beyond June 30,” he added.

In April last year, Prime Minister Imran Khan had announced the amnesty only for 10 months.

To a question on the impact of regressive taxes on inflation, the minister assured that inflation would not be in double-digits in the next fiscal year, provided that international commodity prices remained unchanged and crude oil prices also did not surge to $100 a barrel.

The minister said that it was an administrative failure that both the farmers and consumers were suffering and the middleman was making money.

“If the core inflation remains low, there is a possibility of further cut in the interest rate,” the minister said.

His comments suggest that the central bank would no longer target the headline inflation figure to set interest rates.

That practice had led to an abnormal interest rate of 13.25% and caused over an increase of Rs1 trillion in debt servicing.

The minister said the Rs5.829 trillion FBR target was realistically aggressive and there would be hardly Rs40 billion to Rs50 billion shortfall in extreme circumstances.

“My plan was to increase the tax-to-GDP ratio by 1% every year for next 10 years but now the process has to be accelerated to achieve this goal in six to seven years,” he added.

About 312,000 people have filed their returns for the first time, resulting in total payments with returns to Rs30 billion for this fiscal year.

The minister said about Rs1.5 trillion retail sales were outside the tax net and if it could capture even Rs600 billion that would yield additional Rs100 billion to Rs150 billion. Tarin said there were six million retail outlets and the government was targeting to install the point of sales on only 500,000 units.

“The government will distribute Rs1 billion a month in prizes among those customers that will claim their sale receipts and share with the FBR,” he added.

Tarin also warned the taxmen to improve their efficiency and behaviour.

“In the short-term, the share of indirect taxes will increase but we will not increase the sales tax rate,” he said.

Read more: Tax exemptions jump to record Rs1.31tr

Tarin added that the federal budget for fiscal year 2021-22 was growth-oriented and the real challenge for the government was to achieve inclusive growth for everyone.

“For the first time we have given an overall growth-oriented budget, Tarin maintained, pointing out the innovation in revenue collection, incentives given to exporters and exemption of duties on local industry.

He said the government's main focus in the budget was to not make poor people wait for the trickle-down effect to reach them.

Tarin said the poorest four million households across the country would be eligible for government help based on a non-political survey on household income levels. “We don't want to play politics with the poor.”

The minister said urban households would be provided with Rs500,000 in interest-free business loans and up to Rs2 million for housing loans.

Farming households would be provided with interest-free loans of Rs150,000 for every crop and Rs200,000 for leasing tractors and other farming equipment and machinery.

“The government has given Rs370 billion in power tariff subsidies and the Power Division will have to improve efficiency against the remaining requirements,” the minister said.

Subsidies have been increased and efficiency will be brought to the power sector. He said DISCOs (distribution companies) would be operated through independent boards and privatised. He also said line losses would be reduced and recoveries enhanced.

 

[MenInG]

A probe into the Ghotki train accident launched under Federal Government Inspector Railways on Saturday blamed the overloading of the luggage carrier for the tragedy that killed 65 passengers and injured around 100 others.

The findings of the probe, received by The Express Tribune, reveal that the accident occurred due to excessive loading of the luggage van which exerted intense pressure on the track.

The report said that it is plausible that the luggage van of the ill-fated Millat Express train had violated the prescribed limit of luggage.

However, during the investigations the route of the luggage van – helpful in ascertaining the causes of the accident – “was mysteriously and abruptly sent to Faisalabad instead of Lahore to avoid detailed examination”, the report revealed, adding that a report has also been sent to Railway Minister Azam Swati and chairman regarding the attempts made at tampering with the evidence.

According to the report, the concerned divisional officers switched the route to destroy the evidence of overloading.

Railways sources said that according to the law, the prescribed limit of the weight in luggage carriage is 2.1 tonnes.

“It is possible that route was changed to remove the overloaded goods. Relevant divisional officers disregarded the orders to destroy the evidence,” the sources said, adding that the investigation conducted in these circumstances could not be credible and acceptable.

“The Federal Government Inspector of Railways expressed doubts and sent the report to the railways minister and the chairman.”

On Wednesday, Swati suspended nine railways officials for their alleged negligence that caused the accident.

Swati maintained that it was unlikely that a fault in the eight-mile stretch of railway tracks was responsible for the accident.

The tracks where the accident occurred had recently undergone maintenance on a stretch of eight miles.

The minister said he himself and other senior personnel had inspected the site of the accident themselves.

Pakistan has a shoddy record in terms of train safety and passenger protocols with the erratic signal system and decaying railway tracks causing rampant accidents.

 

[the Great Khan]

No we haven't. In 48 we took a 1/3rd of Kashmir, I don't see that as a loss, especially when we had little of the British weapons, in 65 it was a draw.

Actually 65 wasnt a draw, there is no such thing in international war and geopolitics but let them think that. I see you have been fighting a lone battle against the fifth columnists on here..

 

[Bewal Express]

Actually 65 wasnt a draw, there is no such thing in international war and geopolitics but let them think that. I see you have been fighting a lone battle against the fifth columnists on here..

I call it a draw because both countries ended up pretty much where they started.

 

[MenInG]

PML-N leader and former premier Shahid Khaqan Abbasi on Sunday described the budget presented by the federal government for next fiscal year as “ATM budget”, saying it was based on “lies” and would benefit those who had “plundered the national wealth”.

Addressing a news conference in Karachi along with former finance minister Miftah Ismail, Abbasi noted that new taxes worth Rs383 billion had been imposed in the new budget. “Of these, Rs265 billion are the indirect taxes which clearly means that once again the poor will be burdened.”

He said Finance Minister Shaukat Tarin’s speech on budget in the National Assembly was the same as he had delivered 12 years ago during the tenure of the PPP government.

“Ever since the PTI government came to power it imposed new taxes worth Rs1,200 billion and had devalued the national currency by 35%,” he said.

“This is an ATM budget which only benefits [PM] Imran’s ATMs who rob the country and give benefit to him,” he added.

The PML-N leader negated the government’s claims of income generation saying they were not backed by a concrete source to achieve that target.

“The entire budget for fiscal year 2021-22 is based on lies. In its last three years, the government could not even increase its net income by 20% and now they claim to boost the same by 24% in the new fiscal year,” he said.

Abbasi said the government had “illegally” altered the accounting system by converting the sales of assets into revenues and making them a part of the budget.

“The budget says that Rs252 billion will be obtained from privatisation. The [budget] figures are shown as government income, which is illegal as proceeds from selling assets cannot be termed revenue.”

He said on the one hand the government claimed that the budget was growth-driven while on the other it was saying that Rs570 billion of the development funds would be withdrawn from provinces.

“How will the provinces share revenue by curtailing their development when the provincial surplus was Rs240 billion previously and now it is Rs570 billion. This exposes the lie of being a growth-driven budget,” he said.

“This is the truth behind the claim of additional Rs1,150 billion revenue that Rs252 billion will come from selling the assets, Rs570 billion after compromising the development of provinces and Rs383 billion from new taxes. In real term, there is no increase in revenue collection and this is nothing more than a circus of numbers,” he added.

He maintained that the government could not achieve the tax revenue targets without increasing the price of petrol and diesel by at least Rs30 per litre.

 

[MenInG]

The government has quietly proposed Rs10 billion taxes on salaried class by slapping income tax on their expenditures on medical treatment, various allowances and their savings in provident and pension funds.

In order to give effect to Rs10 billion taxes, the government has omitted a minimum of six clauses from the second schedule of the Income Tax Ordinance through the Finance Bill 2021 that it laid before parliament on Friday.

But Finance Minister Shaukat Tarin told The Express Tribune on Sunday that he has asked the Federal Board of Revenue to reconsider the budget proposals affecting the salaried class. The reply of the FBR Chairman Asim Ahmed was awaited till the filing of the story.

The finance minister had vowed that he would protect the salaried people from the tax burden and refused to accept the International Monetary Fund’s (IMF) condition to change the slab rates for the salaried class. However, the salaried class has been hit by the decision of taxing their allowances and savings. While speaking at the launching ceremony of the Economic Survey, Tarin had said that the IMF demanded to slap Rs150 billion taxes on the salaried class.

It seems that the FBR’s top hierarchy has not taken the finance minister into full confidence before proposing legal changes.

The government has already withdrawn Rs100 billion worth of taxes that it wanted to collect from the next fiscal year by introducing taxes on use of cellular networks and internet data.

The Finance Bill 2021 showed that the government omitted Clause 139 of the Ordinance that deals with giving exemptions on employees’ medical reimbursement. This has been done to generate Rs1.82 billion revenue.

The Rs1.8 billion revenue impact is lower than Rs2 billion revenue loss that the government would sustain due to proposed reduction in the capital gains tax (CGT) on trade of securities at the stock market. The government has reduced the CGT rate from 15% to 12.5%.

“The benefit represented by free provision to the employee of medical treatment or hospitalization or both by an employer or the reimbursement received by the employee of the medical charges or hospital charges or both paid by him, where such provision or reimbursement is in accordance with the terms of employment: any medical allowance received by an employee not exceeding 10% of the basic salary of the employee if free medical treatment or hospitalization or reimbursement of medical or hospitalization charges is not provided for in the terms of employment,” Clause 139 that has been proposed to be omitted reads.

“The only benefit of medical reimbursement or free medical facility left with salaried class is intended to be withdrawn by the federal government,” Dr Ikramul Haq, Pakistan’s renowned tax expert, said.

Haq said that without increasing slab rates, the government has tacitly increased tax burden of 57%, in case an employee received major medical treatment like heart surgery.

The government has also withdrawn income tax exemption that is available to Pakistani seafarer, working on Pakistan flag vessels for 183 days or more during a tax year to collect additional Rs67 million revenue.

In a bid to generate Rs7 billion additional revenue from the salaried persons, the government has slapped 10% tax on provident fund contributions exceeding Rs500,000.

The profit on debt exceeding Rs500,000 shall be chargeable to tax @ 10% as a separate block of income and the person making payment shall deduct tax at the said rate.

Similarly, the receipts from the provident funds above Rs500,000 have also been taxed at the rate of 10% as separate block of income.

The government has also proposed an amendment in Clause 23C of the second schedule to tax the pension funds for the sake of Rs148 million. “The profit on debt (from pension funds) shall be chargeable to tax at the rate of 10% as separate block of income.”

To recover another Rs1 billion from the salaried people, the government has proposed to omit Clause 39 from the second schedule to take special allowances of the employees, except entertainment and conveyance allowances.

Any income of a newspaper employee representing Local Travelling Allowance paid in accordance with the decision of the Third Wage Board for Newspaper Employees constituted under the Newspaper Employees (Conditions of Service) Act, 1973 will also be taxed.

The government has omitted Clause (53A) to tax free or subsidised food provided by hotels and restaurants to its employees during duty hours; free or subsidised education provided by an educational institution to the children of its employees; free or subsidised medical treatment provided by a hospital or a clinic to its employees.

This measure will generate Rs135 million annually.

 

[Last Monetarist]

https://www.geo.tv/latest/355058-pm-imran-khan-tasks-spokespersons-to-spread-budgets-awareness

Prime Minister Imran Khan intends to take on "elements creating misunderstandings on the budget", tasking spokespersons to create awareness about it.

The premier, presiding over a meeting of the spokespersons of the PTI Monday, expressed satisfaction by saying that Pakistan’s economy was not only stable but was also moving towards development.

The federal budget for the fiscal year 2021-22 was based on development, with an aim to further strengthen economic stability and promote the important sectors of the economy, he said.

The prime minister said during the pandemic — which hit economies across the world and created economic problems — Pakistan achieved economic stability due to the government's successful strategy.

Federal ministers, special assistants to the PM, party leaders, and spokespersons attended the meeting during which the country’s situation especially the "people-oriented" development budget presented by the government, the measures to provide relief to masses, and speeding up the development process, were discussed.

Party leaders congratulated the prime minister and the government’s economic team for presenting a "balanced and people-friendly budget which was positive for all segments of the society".

Pointing towards the present government’s important measures, the prime minister said that the objective behind focusing on programmes like Kamyab Jawan, Health Card, 10 Billion Tree Tsunami, promotion of science and technology, poverty alleviation, creating employment opportunities, was to effectively check the challenges faced by the country.

He said the incumbent government has been fully striving to present the new budget which proved "a ray of hope for every segment of the society".

Earlier in the day, PML-N President Shahbaz Sharif hit out at the government, accusing it of deceiving masses by disclosing "fake" numbers in the budget.

The leader of the Opposition in the National Assembly was speaking on the federal budget issued by the government a few days ago, lamenting that the poor were suffering from poverty while the government claimed it was on the path to economic growth and prosperity.

"If the country has seen growth, has only the elite and those residing in the palaces of Bani Gala availed that prosperity?" the Opposition leader asked amid ruckus from the treasury benches.

The PML-N president said poor people were starving to death in the country. Taking a jibe at the prime minister, Sharif said he wished those who gave examples of Riyasat-e-Madinah would take pay heed to the dismal affairs of the "widows, orphans and the destitute".

 

[MenInG]

Finance Minister Shaukat Tarin on Wednesday reiterated that power to arrest people on concealment of income would be retained, as the government’s coalition partners decried the heavy taxation on daily consumable and food products that might stoke double-digit inflation.

Speaking during the meeting of the Senate Standing Committee on Finance, the new economic czar announced that the powers to arrest people would be taken back from a grade-19 assistant commissioner but would rest with a committee comprising him, the special assistant to PM on revenue and the Federal Board of Revenue (FBR) chairman.

“The text of the Clause 203A does not reflect my intentions and I have asked the law minister to rewrite it,” Tarin said while responding to criticism over allowing FBR assistant commissioner to arrest people on the suspicion of concealment of income.

“The FBR itself cannot do anything against the taxpayer and instead a third party will deal with the issue,” he added.

“A committee comprising the finance minister, the special assistant to PM on revenue and the FBR chairman will make the decision on arresting people on the charges of tax evasion.”

The minister further said the government wanted to use the powers to arrest only for deterrence and did not intend to arrest more than 20 to 25 people.

“The flurry of tax notices by the FBR has also been stopped.”

Read: Plan to impose taxes worth Rs100b dropped: Tarin

Tarin offered the standing committee to propose changes in the clause but he repeatedly stressed the need to retain these powers.

There is lack of tax culture in Pakistan and the country’s elites even do not want to file their annual income tax returns.

The government has proposed exempting all political parties from income tax while also allowing them not to file their annual income tax returns.

“I will look into this matter, as I do not know about this clause,” Tarin said after the meeting when he was asked about the issue.

During the committee meeting, MQM-P’s Senator Faisal Subzwari asked about putting the additional burden of Rs10 billion on the salaried class.

Tarin replied that he has already asked the FBR to withdraw the proposed legal changes.

Later, Senator Subzwari raised the question as to whether or not finance minister would have enough time to decide about matters such as arrests.

PPP’s Senator Sherry Rehman said the committee members were of the view that Clause 203A should be deleted from the Finance Bill.

She criticised the government for not discussing the IMF programme in parliament.

“The government had claimed that they were renegotiating with the IMF and that they have refused to meet its strict conditions but we see no details on the way forward on key issues like inflation and unemployment,” she added.

“All we see are a slew of hidden and open indirect taxes, and tariffs worth billions on the people. All agreements need to be presented to parliament but we are not aware of the bargains which are being transacted with the IMF. Why is the parliament being kept in the dark? All our governments have brought IMF programmes but none of them were like this. This IMF deal is being severely criticised”.

However, Tarin ruled out the possibility of exiting the IMF programme.

Heavy indirect taxation

The clause-by-clause reading of the Finance Bill by the standing committee revealed that the government had significantly increased sales tax rates on imported and locally produced and consumed items.

The FBR has proposed increasing sales tax rates to 17% on local sales of agriculture machinery, soybean meal, raw and ginned cotton, flavoured milk, butter, packaged yogurt, cheese, cream, milk, poultry and cattle feed, soybean seeds, harvesters and LNG.

“Imported food items are taxed to generate additional revenues and also discourage their import,” said Tariq Chaudhry, an FBR official.

The government has proposed imposing 17% tax on the import of eggs, cereals, products of milling industry, sugar beet, milk and cream, flavoured milk, yogurt, whey, butter, desi ghee, cheese, sausages, meat and fat-filled milk.

Similarly, the government has also proposed a 17% GST on the import of aircraft, either purchased or taken on lease, plants and machinery, bicycles, energy saver lamps and bulbs, and ships.

“In beginning, indirect taxes will go up,” said Tarin while responding to criticism over imposing heavy indirect taxes including petroleum levy.

The government’s three key allies -- the MQM-P, the PML-Q and the Balochistan Awami Party (BAP) joined hands with the PPP and the PML-N in the committee against massive indirect taxation in the budget.

“Looking at the nature of the new taxes, it seems Shaukat Tarin might not stay finance minister for more than two months,” said PML-Q’s Senator Kamil Ali Agha. “It is insane to impose 17% sales tax on children’s dairy products,” he added.

Senator Agha said the budget proposals would fuel inflation and were also against the policy of Prime Minister Imran Khan.

Defending the taxes on dairy products, Senator Mohsin Aziz of the PTI claimed that the lowest paid employee of the Senate Secretariat also received a monthly salary of Rs60,000 and could afford these items.

BAP’s Senator Prince Omar Zai said on one hand, Tarin had announced Rs200,000 loans for the farmers to procure agriculture machinery, but on the other, imposed taxes on machinery import.

Senator Sadia Abbasi of the PML-N said we could not allow to bridge revenue shortfall by imposing taxes on daily usable items.

Tariq Chaudhry of the FBR said the prices of these items would marginally move upward after the increase in sales tax rates.

Senator Subzwari pointed out that the government was giving Rs2 billion income tax relief to the stock market but was imposing taxes on yogurt and milk, which spoke about its priorities.

PPP’s Senator Saleem Mandviwalla maintained that the proposed taxes were “anti-growth” and “anti-industry”.

The standing committee directed FBR Chairman Asim Ahmed to review the taxes proposed to be imposed on food items and industrial and agriculture machinery.

 

[Last Monetarist]

https://www.dawn.com/news/1630071/shehbaz-bilawal-walk-out-of-na-as-hammad-responds-to-severe-criticism-of-budget

As Minister for Energy Hammad Azhar began his speech in the National Assembly on Friday in response to the opposition's severe criticism of the budget, Leader of the Opposition Shehbaz Sharif began making his way out of the assembly, prompting the minister to challenge him to stay and hear him out.

Azhar was speaking after Bilawal delivered a stinging speech on the floor of the House, saying that the government’s four per cent growth number was a “lie” and that it had abandoned the common man by bringing about unprecedented levels of inflation.

“If you are not cowards then remain in your seats and listen to what I have to say. If you have the strength to hear the truth, then listen to what I have to say,” Azhar said, but the PML-N president did not react and exited the house.

A few minutes later, Bilawal followed suit.

Yesterday, Shehbaz had also delivered his budget speech, during which he slammed the government for inducing poverty and presenting “fake budgets” over the course of three years. Shehbaz was finally able to complete his address yesterday, following four days of mayhem during which he was unable to address the Lower House as lawmakers from treasury and opposition benches came face to face, hurling copies of the budget and profanities at each other.

Azhar began his speech today by hitting back at Bilawal, saying that “those who have never worked a day in their life or taken any responsibility are telling us how to run the economy and the country.”

He said the stains left behind by corruption “could not be erased by speaking in English”.

“They said to us that this is a government of ‘puppets’. Do they want a government of convicts? Do they want a government in which people are known not by their names but by the dirtiest scandals in the history of this country?”

He said that the PTI had come into power after being elected, adding that it had not “threatened or bribed its way into government”.

Responding to Bilawal’s arguments on inflation and economic growth, Azhar said:

“I looked at the data to see why he [Bilawal] was so hurt talking about 4pc economic growth. Turns out that in their [PPP’s] five years of governance, there was not a single year where they achieved 4pc growth.”

He said that Bilawal had talked about the BISP – the PPP's flagship income support programme – when the chairperson of the said programme had recently been declared a proclaimed offender.

“Some people were only getting stipends [from BISP] due to their affiliation with the PPP,” Azhar said.

The minister said Bilawal had contradicted his own claims. “He said that poverty and unemployment has increased, but didn't give any figures. Then he cited an institution and said that according to them, poverty rates have fallen in three provinces.”

"[Bilawal] said that the price of petrol has been increased. In my opinion, such statements are made by those who have achieved nothing in their life [...] right now Pakistan has the world's lowest oil prices," according to the minister.

Azhar then turned his attention towards Sindh, where the PPP has been ruling since 2008.

"Bilawal asked us how we are able to visit our constituencies. But we are not the ones with rising dog bite cases or an HIV/AIDS outbreak," the minister said, in an apparent reference to the situation in Larkana, which is reeling from an HIV outbreak, and from where Bilawal has been elected to the NA.

Azhar said some people in the opposition say that despite corruption, there is also progressive work being done. "If corruption had anything to do with development, Sindh would have progressed beyond California."

If someone wants to see the destruction that corruption brings, then go and look at the state of Sindh, the minister said. "You will see how corrupt rulers ruin the lives and the futures of people. Sindh is a living example of this."

Recounting his government's achievements, Azhar said the first two years of the PTI government were spent on stabilising the economy, while the focus now was on growth. The minister said foreign exchange reserves were the highest they had been in six years while the current account deficit was in surplus.

He added that the country had also witnessed bumper crops of wheat, sugarcane and maize, the direct benefit of which was going to the farmers.

He concluded by saying that the PTI was laying the foundation for "Riyasat-i-Madina" under the leadership of Prime Minister Imran Khan.

Earlier, PPP chairperson Bilawal Bhutto-Zardari lambasted the government "abandoning" the people of Pakistan during "challenging times", saying that the ruling Pakistan Tehreek-i-Insaf (PTI) could never realise the predicament of the common man.

Addressing the National Assembly (NA) a day after Leader of the Opposition Shehbaz Sharif delivered his budget speech, the PPP chief slammed the government for presenting a budget that was a "pack of lies".

Referring to the preceding days of chaos in the NA, he claimed the melee in the house was actually an attempt by treasury members to bar the opposition from "exposing the PTIMF budget".

"They thought they could present their lie of four per cent economic growth as the truth using such antics [...] that opposition would not get a chance to speak and people would not realise that the entire budget is based on lies," he said.

"But they [the government] must realise that the people don't need the opposition's speech [for this realisation]. They are already drowning in the tsunami of inflation that the government has brought on."

Bilawal went on to say that people, who were suffering because of the inflation brought on by Prime Minister Imran Khan's government, were well aware that the claim of four per cent economic growth was nothing but a lie.

He added that the nation might still have forgiven the government had they not "abandoned the people so ruthlessly amid these difficult times".

Acknowledging that there was inflation during the PPP's tenure as well, Bilawal said the difference between the then government and the incumbent government was that the former had not abandoned the people.

"We introduced the revolutionary Benazir Income Support Programme (BISP) but this government, on the other hand, harps on about the Ehsaas [programme], when you have no realistion [of the people's predicament]."

Bilawal maintained that the country had seen unprecedented increase in inflation, poverty and unemployment during the PTI's rule and questioned the authenticity of the government's claims of economic growth.

Pointing out that the PPP had increased salaries multiple times and raised pensions, he said the PTI had not raised salaries in the last two years even though the entire world was struggling in the face of the Covid-19 pandemic and every Pakistani was facing financial troubles.

"And this year, there has been a raise of a meagre 10 per cent rise [in salaries] when food inflation has increased to around 17 per cent on average."

The PPP chairperson recalled that the PTI had reached an agreement with government workers on raising their salaries, adding that the insufficient hike in their salaries was an act of deception by the government.

He said the government had proposed many indirect taxes in the budget for the fiscal year 2021-22, which would further burden the people and add to their suffering.

Bilawal then questioned if the government’s claim of economic growth was true, then why was the country witnessing unprecedented unemployment and poverty.

He once again dubbed the budget “a pack of lies”.

“It [the budget] is built on a foundation of lies.

“And the government is so embarrassed of its performance that they removed the [actual] figures of poverty and unemployment from official papers and the economic survey,” he alleged. “They [treasury members] are liars and the budget presented by them is also a lie.”

Bilawal said the government had, in fact, given an “ NRO [amnesty]” to the construction and real estate sectors. “If this budget offers any relief, it is for the rich.”

The PPP chairperson also criticised the treasury members for the ruckus witnessed in the NA during the past few days, accusing them of trying to “assault the leader of the opposition”.

“Let’s try and understand what happened. Imran Khan’s feelings were hurt. He was upset. Someone called him a donkey,” he claimed, alleging that the PM had then sent “some of his friends” to the NA to “abuse the mothers and the sisters of the members and the leaders of the opposition”.

He added, “He [the prime minister] then got the same friends to assault, with budget books, the leader of the opposition.”

“Unfortunately, these are the people who have been selected to run a nuclear-armed country,” he remarked.

Bilawal said the day the ruckus was witnessed was the worst day in the history of parliament.

Addressing NA Speaker Asad Qaiser, he said the opposition would not let him forget that he failed to play his role on the day and he would have to pay the “political price” for his inaction.

“The world saw how this government defaced this august forum and insulted the people of Pakistan,” he added. “They [the government] were already a source of embarrassment for us and now they are a source of embarrassment for those who brought them [to power] as well.”

“These are the people in charge of running the federation of Pakistan, of treating all federating units fairly and justly,” he continued, adding that they had failed at the task every time.

Bilawal said whenever the PPP raised the issue of the 18th Amendment or the National Finance Commission (NFC), it was accused of using the Sindh card.

But the 18th Amendment not being enforced and the NFC award not being given according to the Constitution would result in the loss of all provinces, he said.

He said the government had failed at fulfilling its constitutional duty and promises to the provinces.

The PPP chairperson further lamented that regions like Ghotki and Sui, where gas was produced, were deprived of their gas share.

Citizens in Sui and Ghotki must have access to gas before the commodity is supplied elsewhere, he said, adding that their deprivation was an injustice.

Bilawal also criticised the government for allocating just Rs23 billion for Khyber Pakhtunkhwa in the budget.

“What’s Pakthunkwa’s fault?” he questioned, noting that the province produced 50 per cent of the country’s domestic oil.

Speaking about agriculture, the PPP chief lamented the allocation of just Rs12 billion for the sector in the budget.

“You [the government] have abandoned farmers the same way you have abandoned the rest of the nation,” he said, criticising the government for not giving any subsidies to farmers.

“And then the government wanted the farmers of Pakistan to compete with those of India, even when the former were not given the same facilities and subsidies as the latter,” he added.

“You have not just burdened your farmer, you have burdened your economy as well.”

Bilawal demanded that the government review its agriculture policy and facilitate farmers.

 

[OMB]

Hammad delivers blistering riposte to PPP chief’s critique

Energy minister says stains of corruption can’t be erased by speaking in English

In a rebuttal to a hard-hitting speech by PPP chairman Bilawal Bhutto Zardari in the National Assembly on Friday, Energy Minister Hammad Azhar said those who had never worked a day in their lives were telling the government about how to run the economy.

At the outset of his speech during the budget 2021-22 debate, the minister asked Leader of the Opposition in NA Shehbaz Sharif and the PPP chief to remain seated and listen to his response if they were not “cowards” as both the opposition lawmakers walked out of the House.

The energy minister lambasted the PPP leader for calling the PTI government a ‘puppet’, asking if he wanted a government of convicts where people were remembered for their “scandals” instead of performance.

Hammad told the house that the PTI had not come to power through bribery. He then took a jibe at the PPP chairperson, saying: “The stains of corruption could not be washed off by speaking in English.”

Replying to the criticism on the issue of inflation and the claims of economic growth, the minister reminded the PPP that it could never achieve 4% growth during its tenure.

On allocation for Benazir Income Support Programme (BISP) in the budget, he said its chairperson was recently declared a proclaimed offender.

Hammad maintained that fuel prices were the lowest in Pakistan and Bilawal’s claim that petrol price had been increased was incorrect. On agriculture, he told the House that the country had bumper crops of wheat, sugarcane and maize this year which was benefitting the farmers.

To Bilawal’s statement that PTI lawmakers’ were unable to visit their constituencies, he said the shortage of dog-bite vaccine and AIDS outbreak was not in their constituencies, but those of their opponents.

“If corruption had anything to do with development, then Sindh would have left California behind,” Hammad quipped.

Describing Sindh government as a living example of corruption, the minister asked the lawmakers to visit the province to witness how “corrupt rulers” had ruin its people’s lives and future.

He said the PTI government stabilised the economy in the first two years and the focus was now on growth, adding that the $20 billion current account deficit was in surplus now and the foreign exchange reserves were the highest in six years.

https://tribune.com.pk/story/2306041/hammad-delivers-blistering-riposte-to-ppp-chiefs-critique

 

[MenInG]

In an interesting turn of events in the National Assembly on Saturday, the treasury benches mistakenly voted for opposition’s cut motion regarding the Cabinet Division, prompting Speaker Asad Qaiser to go for another vote for its rejection.

Saturday normally remains a closed holiday for the lower house of parliament. However, the house went session for the approval of budget 2021-22, with Speaker Qaiser in the chair.

When treasury members voted in favour of the cut motion the speaker reminded the members of saying ‘Yes’ or ‘No” and put up the cut motion again. This time the treasury members voted against the motion and it was rejected.

This prompt Pakistan Peoples Party (PPP) lawmaker Shazia Marri to rise on a point of objection, saying that the government members had earlier voted in favour of the motion. “You don’t even know what to do,” the speaker said. “It is my duty to inform the members of the procedures.”

During the session, opposition and treasury members also exchanged passed harsh remarks against each other. At one point, Rana Tanveer Hussain accused Federal Minister Ali Amin Gandapur of “selling half of Kashmir and trying to sell Azad Kashmir too”.

Rana Tanveer said that Prime Minister Imran Khan should reshuffle his cabinet. He also said accused the National Accountability Bureau (NAB) of political victimisation. Meanwhile, Gandapur rose on the dias and disrupted Rana’s speech. The speaker then asked them to be quiet.

Another PPP member, Abdul Qadir, said that the countries that lost the 1992 Cricket World Cup were lucky, referring to the victory of Pakistan under the captaincy of Prime Minister Imran Khan. “No one has harmed Pakistan more that this glass jar, a reference to the World Cup glass trophy.

Adviser to Prime Minister on Parliamentary Affairs Babar Awan stood up and said that the manner in which cricket fans had offended was reprehensible. He said that the opposition’s cut motions were actually a request for a grand NRO [political amnesty] and “we reject the opposition’s NRO request”.

https://tribune.com.pk/story/2307457/na-speaker-intervenes-after-treasury-votes-for-cut-motion

 

[Last Monetarist]

https://www.dawn.com/news/1632179/oppositions-threats-ring-hollow-as-fy22-budget-sails-through-na-with-majority-vote

The National Assembly on Tuesday passed the budget for the new fiscal year with majority vote amid a dismal showing by the opposition.

Prime Minister Imran Khan was present for today's session, while former president Asif Ali Zardari and PPP Chairman Bilawal Bhutto-Zardari were also in attendance.

The Finance Bill 2021-22 was discussed clause by clause in the House. Amendments proposed by treasury members were accepted while those proposed by opposition members were rejected.

After the clause by clause reading was completed, a voice vote was conducted by the NA speaker and the budget was passed.

The opposition did not challenge the voice vote as they knew they did not have the required numbers.

The session was adjourned till Wednesday.

The government had already defeated the opposition earlier on a motion moved by Finance Minister Shaukat Tarin for taking up the bill under consideration with a majority — 172-138 — vote.

Earlier, Tarin lashed out at the opposition for its criticism of the government. He said that only food inflation had increased during the PTI government's tenure and attributed this to the policies of past governments.

He said that the government was focusing on the agriculture sector which had been ignored in the past. "We are taking direct action, something that has never been done before," he thundered, adding that the government was forced to go to the International Monetary Fund (IMF) due to the fiscal deficit it inherited when it came into power.

He said that the government will go after willful tax defaulters, adding that it was necessary to enhance the tax to GDP ratio to 20 per cent.

The minister also dispelled the opposition's claims that indirect taxes had been imposed, adding that majority of Pakistan's trade sector was not under the tax net. "Consumers are paying it but we are not receiving it," he said, adding that the government will also focus on this.

PPP leader Syed Khursheed Shah criticised the budget because of the addition of a multitude of taxes prior to the finance minister presenting it in the NA.

He estimated that the government had proposed taxes collectively amounting to around Rs1,100-1,200 billion.

The budget failed to meet expectations, he regretted.

Shah added that a good budget ensured that people had food on their tables as "people's wellbeing is symbolic of a good economy".

The PPP leader also lamented that health and education sectors remained largely ignored in the budget this time around as well.

He particularly expressed concern over the fast population growth in the country, raising doubts that the government had any plan to meet with the demands of this fast growing population.

The rapid population growth is an "atom bomb in the making", he remarked, asking whether the finance minister considered this factor while devising the budget.

"We need to think of incentives to limit the population growth," and the federal government should address the issue, he stressed.

He further said the government had failed to provide any relief to farmers in the budget.

"Please make this budget a budget for the people," he implored.

Addressing the media after the session, Bilawal said termed the budget “unconstitutional and illegal”, saying he even began his earlier budget speech in the National Assembly with the same point.

“When you do not give NFC award to provinces, you are depriving them of their share,” he said.

He said that some MNAs of different opposition parties were not present in the session today, insisting they should have been there. “I had informed Shehbaz Sharif that all our MNAs will be present and I honoured my word,” Bilawal added, while pointing out the absence of some PML-N lawmakers from the session.

He also asked Shehbaz to bring a no-confidence against the speaker and maintained that the entire opposition should unite in this cause. “I think this parliament has lost the moral ground, and we need to register our protest.”

Bilawal also lashed out at the government, saying it didn’t allow him to speak in the parliament on the concluding day of the budget session. He lambasted the prime minister for failing to take all political parties into confidence on the Kashmir issue “due to his ego”.

He said leaders in the occupied Kashmir were meeting Modi, while our prime minister was not willing to speak to all stakeholders on the issue here.

The PPP chairperson also called upon the government to take all ministries into confidence regarding the Afghanistan situation. “Our history is attached to Afghanistan since 1980. A wrong policy was adopted then and we are still paying the price for it. Similarly, the decisions being taken on Afghanistan at the moment will have consequences for us for the next 30 years.”

Earlier this month, Shehbaz and Bilawal had rejected the budget and vowed to give a tough time to the government inside the parliament.

Bilawal had said at the time that he had decided to stand with the joint opposition on the issue of the passage of budget 2021-22.

"I have given votes of all my MNAs to Shehbaz Sharif and now he (Shehbaz) can use them as he liked," Bilawal said.

Shehbaz Sharif, on the other hand, had said the government had given inaccurate figures in the budget document, adding that the opposition would chalk out a strategy to bring a no-confidence motion against the government.

"With the help of the people, the opposition will not allow the budget to be passed by the parliament," he had added.

 

[OMB]

Bilawal, Qureshi engage in war of words in NA

The National Assembly session on Wednesday became heated after PPP Chairman Bilawal Bhutto-Zardari and Foreign Shah Mahmood Qureshi engaged in a fiery debate ahead of Prime Minister Imran Khan's expected speech.

In his speech, Bilawal claimed that the government "rigged" yesterday's vote on the federal budget. The PPP chairman said that according to the rules, the NA speaker was obligated to carry out a count when a voice vote was challenged and it was not a matter of his "choice".

He said the final vote on the budget was what really mattered and that some treasury members had exhibited "irresponsible behaviour" at the time, lamenting the fact that members from the opposition benches were missing as well.

"If you had carried out the count, we would've at least brought our stance on record. I stood up at the time of the last vote and challenged your ruling, but you stood up and left," Bilawal said, addressing National Assembly Speaker Asad Qaiser.

As a result, the budget's legitimacy was undermined, he said.

"Is it not rigging if we can't record our vote during the budget debate or during the Financial Action Task Force (FATF) debate. Is this not against the rules," he questioned.

A day earlier, the National Assembly had passed the budget for the new fiscal year with majority vote amid a dismal showing by the opposition.

A confident-looking Prime Minister Imran Khan had attended the proceedings for only 50 minutes and left the assembly hall even before final vote on the budget after realising that his presence was no more required in the house to ensure the presence of the treasury members who had clearly outnumbered the opposition.

The prime minister had entered the assembly hall at a time when the chair had already ordered a headcount on the demand of the opposition on the motion moved by Finance Minister Shaukat Tarin to take up the finance bill for consideration and final vote. The motion was approved with 172-138 votes.

When the budget was put for approval through voice vote, almost all the PML-N members had left the house leaving behind the PPP and Jamiat Ulema-i-Islam members. However, Bilawal had later claimed that when he challenged a voice vote on an important occasion, the speaker had violated the rules and deprived him of his right.

FM Qureshi responds to Bilawal
Responding to Bilawal, the foreign minister lashed out at the PPP chairman for levelling allegations of violating parliamentary tradition.

He stated that the speaker is the custodian of the house and his character had been "targeted" by the opposition. "You can have reservations about the speaker's decision, but you take it up in his chamber. You don't confront them on the floor of the house."

"What are you talking about? In Sindh, where you have the government, you did not allow the opposition leader to speak," he said.

He said that the charter of diplomacy states that the chairmanship of the provincial Public Accounts Committee (PAC) is given to the opposition. "Have you done that? Have you given the opposition representation in the provincial standing committees? What parliamentary tradition are you talking about?"

The minister also questioned the basis on which Bilawal had challenged the legitimacy of the budget. "In Sindh, the opposition is not being allowed to speak," he said, referring to the barring of at least eight opposition lawmakers from the Sindh Assembly.

In comparison, the opposition is being given more time in the National Assembly, he said. He also questioned the absence of Leader of the Opposition in the National Assembly Shehbaz Sharif during yesterday's session.

"The leader of the opposition wasn't present during the debate on the finance bill while 25 PML-N members were missing," he said. He stated that the opposition would not be able to suppress the government by making noise, holding the former responsible for spoiling the atmosphere of the lower house.

https://www.dawn.com/news/1632366/bilawal-qureshi-engage-in-war-of-words-in-na

 

[Last Monetarist]

https://tribune.com.pk/story/2343741/pm-office-seeks-rs200b-to-offset-inflation-impact

The Prime Minister (PM) Office has asked for a Rs200 billion budget to immediately provide relief to the inflation-hit people amid tight fiscal controls imposed by the International Monetary Fund (IMF) that did not leave any cushion for additional spending.

PM Imran Khan wants to bail out the lower- and middle-income groups from the adverse impacts of inflation and his office has asked for the additional budget of around Rs200 billion for the purpose, sources told The Express Tribune.

A few meetings have been held between the Ministry of Finance and the PM Office to find some space in the budget. However, so far nothing has been finalised, including the amount, due to fiscal constraints, they added.

Another meeting was held in the Ministry of Finance on Monday in which the additional PM Office secretary proposed to divert funds from the Public Sector Development Programme and some other areas. The sources said that Finance Minister Shaukat Tarin did not like the idea, saying in the meeting that it was the job of the finance ministry to find out the fiscal space.

“Whatever will be done, will be done by creating some fiscal space,” Tarin said when approached to comment about the demand of the PM Office in light of the IMF restrictions.

The sources said that the matter has also been discussed at the level of the prime minister and the finance minister.

The inflation rate rose to 13% last month – the highest level seen in the last two years and also the highest pace among South Asian countries. The ruling party had to face defeat in the first phase of the local bodies’ elections in Khyber-Pakhtunkhwa due to soaring inflation and divisions within its ranks, forcing the government to review its strategy.

The PM Office sought funds amid rising political uncertainty in the country after the opposition parties announced that they would table a no-confidence motion in the National Assembly against the prime minister.

The sources said that the government was considering various proposals that include providing subsidised fuel to motorcyclists, increasing minimum wage to Rs25,000 and encouraging woman employment through existing development schemes.

The government already announced providing subsidised essential items to the lower-income groups and for the purpose it has decided to divert Rs40 billion from the existing budget of the Benazir Income Support Programme. No additional funds could be provided, as the government’s hands are tied under the IMF programme.

The prime minister may formally launch the ration scheme at the weekend in collaboration with the provincial governments of Punjab and Khyber-Pakhtunkhwa.

The inflation in Pakistan is skyrocketing because of the rupee depreciation, increase in the prices of petroleum products and electricity as well as commodities globally.

The IMF imposed a condition to create primary surplus of Rs25 billion in the current fiscal year, which did not leave any room for giving additional money to the PM Office, a senior finance ministry official told The Express Tribune. He said that Pakistan and the IMF were tentatively scheduled to hold talks for the seventh review of the programme next month and the government would take up the matter with the IMF.

Overall, the federal government’s budget deficit is expected to be over Rs4 trillion but for the purpose of the programme, the IMF excluded the interest payments on loans, spending on Covid-19 vaccines and clearance of dues of the Independent Power Producers.

After adjusting these expenditures, the IMF has put a condition that there will be primary surplus of Rs25 billion on June 30 – a task that seems quite uphill after the Federal Board of Revenue too started missing its monthly revenue targets.

The underlying primary balance has been targeted at virtually zero for the current fiscal year, excluding 1.2% of the GDP for clearing dues of the IPPs and spending on Covid-19 vaccines, showed the IMF report released this month.

The IMF has already expressed concerns about deviating from the fiscal consolidation path and went on to say that the $6 billion programme objectives might not be achieved due to these deviations.

Approved in June, the budget was on track to deliver an adjusted primary deficit but on the expenditure side, the government allowed for large increases in public wages and allowances, a doubling of subsidies, and an increase in investment of over 50%, according to the IMF.

The IMF has already asked Pakistan to cut the development budget by Rs200 billion to Rs700 billion, saying that the fiscal anchor has been a gradual improvement in the primary balance to ensure fiscal sustainability, entrench macroeconomic stability, and build resilience.

However, a few decisions that the government took in recent weeks has put the fiscal sustainability at stake. The federal cabinet has approved increase in spending under the parliamentarians’ scheme from Rs46 billion approved in the budget to Rs64.2 billion.

It also approved an increase in the salaries of Rangers and those Grade 1 to 19 civil service employees who did not get special pay packages.

 

[FearlessRoar]

Former finance minister Shaukat Tarin announced on Friday that he had decided to quit the PTI and politics for good, citing financial and health reasons.

Tarin told Dawn.com that the last two-and-a-half years had been “very challenging” for him, both financially and due to his “deteriorating health” after “double Covid episodes during my time in office”.

“Therefore, at the insistence of my family and friends, I have decided to resign from active politics for good and move on,” Tarin said. “Hence, I am resigning from PTI and also from the Senate of Pakistan,” he said.

“I want to thank all those colleagues and friends who have helped me along this journey,” he added.

Tarin also said that over his political career, he had helped different political parties manage the economy.

“In 2008-10 as finance minister under PPP, I helped save the country from impending default and stabilised the economy. Also concluded a consensus on National Finance Commission award after 19 years,” he said.

He went on to say that as the finance minister during the PTI government, he “clocked the best economic performance in 17 years as stated in the economic survey of Pakistan of 2022”.

Tarin said that he tried to pay back the country for the last 27 years at “great personal costs” as he followed in the footsteps of his father, a Pakistan Movement veteran.

Tarin is the latest politician to part ways with the PTI. Over the past few months, a long list of politicians have quit the party after a nationwide crackdown was launched against it and hundreds of prominent leaders were arrested in reaction to the May 9 riots that broke out after Imran Khan’s arrest.

The most notable departures from the PTI in the aftermath of the May 9 violence have been Shireen Mazari, Asad Umar, Fawad Chaudhry, Pervez Khattak and Farrukh Habib.

Tarin was appointed the finance minister by the PTI government on April 17, 2021. However, because he was not elected to Parliament, his constitutional term ended on October 16 after which he was made the finance adviser to the prime minister.

In Dec 2021, the PTI government managed to get Tarin elected as a senator, following which he was again made the finance minister.

Source: Dawn

 

[Bewal Express]

Former finance minister Shaukat Tarin announced on Friday that he had decided to quit the PTI and politics for good, citing financial and health reasons.

Tarin told Dawn.com that the last two-and-a-half years had been “very challenging” for him, both financially and due to his “deteriorating health” after “double Covid episodes during my time in office”.

“Therefore, at the insistence of my family and friends, I have decided to resign from active politics for good and move on,” Tarin said. “Hence, I am resigning from PTI and also from the Senate of Pakistan,” he said.

“I want to thank all those colleagues and friends who have helped me along this journey,” he added.

Tarin also said that over his political career, he had helped different political parties manage the economy.

“In 2008-10 as finance minister under PPP, I helped save the country from impending default and stabilised the economy. Also concluded a consensus on National Finance Commission award after 19 years,” he said.

He went on to say that as the finance minister during the PTI government, he “clocked the best economic performance in 17 years as stated in the economic survey of Pakistan of 2022”.

Tarin said that he tried to pay back the country for the last 27 years at “great personal costs” as he followed in the footsteps of his father, a Pakistan Movement veteran.

Tarin is the latest politician to part ways with the PTI. Over the past few months, a long list of politicians have quit the party after a nationwide crackdown was launched against it and hundreds of prominent leaders were arrested in reaction to the May 9 riots that broke out after Imran Khan’s arrest.

The most notable departures from the PTI in the aftermath of the May 9 violence have been Shireen Mazari, Asad Umar, Fawad Chaudhry, Pervez Khattak and Farrukh Habib.

Tarin was appointed the finance minister by the PTI government on April 17, 2021. However, because he was not elected to Parliament, his constitutional term ended on October 16 after which he was made the finance adviser to the prime minister.

In Dec 2021, the PTI government managed to get Tarin elected as a senator, following which he was again made the finance minister.

Source: Dawn

Ex-finance minister Shaukat Tarin quits PTI, politics for good

Says he is also resigning from the Senate; cites financial and health reasons.

www.dawn.com

Got the economy back on track.