What's new

Ishaq Dar's (non?) performance watch as Finance Minister

These incompetent crooks are taking revenge on the PK people for daring to ask why they are in power. This Munshi has destroyed the PK economy
 
Each and every party in PDM is absolute shameless. The Worst disaster in Pakistan history.
 
Pakistanis woke up on Sunday to a record single-day hike in the petrol price — which also now stands at an all-time high of around Rs250 a litre — after the government moved to address a run on filling stations fuelled by shortage fears, especially in Punjab and Khyber Pakhtunkhwa.

However, the government had little success in smoothing out a fragile supply chain that has been on edge for weeks due to a shortage of foreign exchange.

The Rs35 per-litre increase in the price of petrol — along with a similar jump in the prices of high-speed diesel (HSD), and a Rs18 rise in light diesel oil (LDO) and kerosene rates — came three days before the scheduled fortnightly announcement.
 
PM okays Rs180bn taxes, hike in gas & power tariffs, GST
IMF’s visiting mission is still insisting upon higher adjustments in electricity tariff

In a last-ditch effort to break the deadlock with IMF, Prime Minister Shehbaz Sharif approved raising the electricity tariff ranging from Rs4 to Rs10 per unit, increasing the gas tariff and jacking up the GST rate by 1 percent from 17 to 18 percent. The government has also approved additional taxation of Rs 180 billion increasing FBR’s annual tax target to Rs.7,650billion. With a one percent hike in GST rate, the FBR estimates to fetch Rs55billion in the remaining five months.

However, the IMF’s visiting mission is still insisting upon higher adjustments in electricity tariff which would hover beyond Rs12.50 to Rs14 per unit. The Fund also suggests undertaking qualitative additional taxation measures and slashing down the expenditure side to restrict the primary deficit within the envisaged limits.

Now that the government is exploring its options to clock expenditure heads first, the additional taxation measures will be firmed up. So far the power sector has proved a major stumbling block and headache for Pakistani negotiators because of its monstrous circular debt and yawning subsidy requirements were not acceptable to the IMF at all.

“Although, differences persisted over exact prescriptions for fixing the ailing economy and its yawning fiscal gap in achieving the primary deficit which still hovers around Rs 550 to Rs 600 billion. However, the Pakistani side has made a request to the IMF’s mission chief for meeting with Minister for Finance Ishaq Dar for moving towards completion of the 9th review,” top official sources confirmed while talking to The News here on Monday.

...
https://www.thenews.com.pk/print/1038269-pm-okays-rs180bn-taxes-hike-in-gas-power-tariffs-gst
 
63eab46b87098.gif


The Economic Coordination Committee (ECC) of the cabinet on Monday increased natural gas prices in the range of 16 per cent to 112.32pc with retrospective effect from Jan 1 for six months in a bid to raise an additional Rs310 billion from the majority of domestic and all other categories of consumers to secure early disbursement of $1.2 billion tranche.

The ECC meeting chaired by Finance Minister Ishaq Dar also introduced the concept of protected consumers for a period of four months —November to February — whose average per month consumption will be below 0.9 hm3 (90 units). Four slabs for protected and six slabs for non-protected consumers were also introduced.

The minimum slab for residential consumers before the increase was 50 units per month (0.5 hm3), which under the new price mechanism was reduced to 25 units. This means consumers with low consumption would be hit under the new price mechanism to collect maximum revenue from the bulk of domestic users.

DAWN
 
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Govt of Pakiatan has decided to revise the existing prices of petroleum products, effective from 16 Feb,2023. <a href="https://t.co/fWeUy1Xa41">pic.twitter.com/fWeUy1Xa41</a></p>— Ministry of Finance (@FinMinistryPak) <a href="https://twitter.com/FinMinistryPak/status/1625929979023196181?ref_src=twsrc%5Etfw">February 15, 2023</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 
MenInG said:
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Govt of Pakiatan has decided to revise the existing prices of petroleum products, effective from 16 Feb,2023. <a href="https://t.co/fWeUy1Xa41">pic.twitter.com/fWeUy1Xa41</a></p>— Ministry of Finance (@FinMinistryPak) <a href="https://twitter.com/FinMinistryPak/status/1625929979023196181?ref_src=twsrc%5Etfw">February 15, 2023</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Click to expand...


So instead of INCREASE, they used the word "REVISED" ... wah ji wah.

And the nation simply resorts to a few maa bhen to Mr. Dar and his PDM friends, before going back to sleep.
 
Petrol price reaches historic high in Pakistan

Hours after unveiling a 'mini-budget' for the inflation-hit people, the Pakistan Democratic Movement (PDM)-led government Wednesday announced an increase in the price of petrol for the next fortnight, taking the rate to a historic Rs272 per litre.

The price of petrol has been moved up to Rs272 per litre after an increase of Rs22.20, a press release from the Finance Division read Wednesday night, noting that the surge has taken place due to the rupee's devaluation against the dollar.

The price of high-speed diesel has been increased to Rs280 per litre after a hike of Rs17.20. Kerosene oil will now be available at Rs202.73 per litre following a Rs12.90 hike. Meanwhile, light diesel oil will be available at Rs196.68 per litre after an increase of Rs9.68.

The new prices will come into effect from 12am tonight.

...
https://www.thenews.com.pk/latest/1040964-latest-petrol-price-in-pakistan
 
daytrader said:
Petrol price reaches historic high in Pakistan

Hours after unveiling a 'mini-budget' for the inflation-hit people, the Pakistan Democratic Movement (PDM)-led government Wednesday announced an increase in the price of petrol for the next fortnight, taking the rate to a historic Rs272 per litre.

The price of petrol has been moved up to Rs272 per litre after an increase of Rs22.20, a press release from the Finance Division read Wednesday night, noting that the surge has taken place due to the rupee's devaluation against the dollar.

The price of high-speed diesel has been increased to Rs280 per litre after a hike of Rs17.20. Kerosene oil will now be available at Rs202.73 per litre following a Rs12.90 hike. Meanwhile, light diesel oil will be available at Rs196.68 per litre after an increase of Rs9.68.

The new prices will come into effect from 12am tonight.

...
https://www.thenews.com.pk/latest/1040964-latest-petrol-price-in-pakistan
Click to expand...


Our Jahil awaam still won't stand up against these baighairuts.


<iframe src="https://www.facebook.com/plugins/video.php?height=308&href=https%3A%2F%2Fwww.facebook.com%2Frana.ehtisham.5%2Fvideos%2F734052097737792%2F&show_text=false&width=560&t=0" width="560" height="308" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share" allowFullScreen="true"></iframe>
 
And this is when the Brent crude is hovering the $85 mark. What'd going to happen if it goes 120 or more like it did under IK
 
Bewal Express said:
And this is when the Brent crude is hovering the $85 mark. What'd going to happen if it goes 120 or more like it did under IK
Click to expand...

Brain numb nation that has no zameer.... rampant chori, jhoot, rishwat khori, haram khori EVERYWHERE. Whether you are PTI OR PDM member, doesn't make a difference when it comes to the general public. Everyone is a chore and haram khore at his own level. There are perhaps less than 5% honest people left in this 250 million jungle population. Rest are same old munafiqs who fill the mosques on Jumma prayers and travel to Makkah for Hajj and Umran by millions but at the scale of honesty, they have played their roles to make Pakistan stand at world number 140 on the scale of honesty.

There will be a few maa bhen and rona dhona for a few days ONLY by those who can't earn haram or don't get a chance to do so, and then everyone will crawl back into his shell.
 
daytrader said:
Petrol price reaches historic high in Pakistan

Hours after unveiling a 'mini-budget' for the inflation-hit people, the Pakistan Democratic Movement (PDM)-led government Wednesday announced an increase in the price of petrol for the next fortnight, taking the rate to a historic Rs272 per litre.

The price of petrol has been moved up to Rs272 per litre after an increase of Rs22.20, a press release from the Finance Division read Wednesday night, noting that the surge has taken place due to the rupee's devaluation against the dollar.

The price of high-speed diesel has been increased to Rs280 per litre after a hike of Rs17.20. Kerosene oil will now be available at Rs202.73 per litre following a Rs12.90 hike. Meanwhile, light diesel oil will be available at Rs196.68 per litre after an increase of Rs9.68.

The new prices will come into effect from 12am tonight.

...
https://www.thenews.com.pk/latest/1040964-latest-petrol-price-in-pakistan
Click to expand...




 
Govt slashes petrol price by Rs5 per litre
Coalition government has slashed price of petrol for next fortnight, taking it to Rs267 per litre

he coalition government has slashed the price of petrol for the next fortnight, taking it to Rs267 per litre after a decrease of Rs5 per litre, Finance Minister Ishaq Dar announced Tuesday.

The finance minister, in a press conference, said that the price of diesel would be maintained at Rs280 per litre till the next review.

FinMin Dar added that after a reduction of Rs12 per litre, light diesel oil's price has been moved down to Rs184.68 per litre and after a Rs15 per litre reduction in the rate of kerosene oil, its price has now been fixed at 187.73.

...
https://www.thenews.com.pk/latest/1045154-latest-petrol-price-in-pakistan
 
Dark summer ahead as generators, UPS become costlier

With power outages set to return during the peak summer season, consumers should be prepared to spend hours in darkness as prices of alternate power solutions have more than doubled in the last year.

This was a direct result of the State Bank’s decision to curb imports of raw material and finished goods to control the current account deficit, according to the dealers. The move has proved to be a disaster for generator importers as well as the local industry.

The two major alternate power solutions for residential consumers are generators and UPS, powered by batteries, both witnessing significant price hikes.

According to dealers in Karachi’s F.B. Area, a 50-ampere battery now costs Rs10,000-11,000, while a 200-ampere battery carries a price tag of Rs42,000-44,000, a jump of almost 100 per cent over a year.

“Prices have gone up since the PDM government came into power,” a dealer told Dawn, adding that “the prices of used batteries have also surged.”

...
https://www.dawn.com/news/1741691/dark-summer-ahead-as-generators-ups-become-costlier
 
Petrol price jacked up by Rs5 per litre
HSD price soars by Rs13 per litre

The government on Wednesday increased the price of petrol by Rs5 and high speed diesel (HSD) by Rs13 per litre.

The new prices will be effective from March 16 (today).

“In the last fortnight, Platts Singapore prices registered an increase. This along with a depreciation of Pak Rupee has resulted in an increase of POL products in Pakistan,” the finance ministry said a statement.

According to the ministry, petrol will now be available at Rs272 per litre, as compared to its previous price of Rs267 per litre. Likewise, the government enhanced HSD price by Rs13, from a previous Rs280 per litre to Rs293 per litre now.

The increase in the price of kerosene oil has been kept at Rs2.56 by reducing the government dues on it. It will now be sold at Rs190.29 per litre as compared to its previous price of Rs187.73 per litre

...
https://tribune.com.pk/story/2406268/petrol-price-jacked-up-by-rs5-per-litre
 
Minister of State for Petroleum Musadik Masood Malik said on Monday that the government will charge Rs100 more for petrol from the affluent so that relief could be provided to the low-income segments in fuel tariff.

“We will make petrol expensive for the rich and cheaper for the poor … the higher prices being paid by the rich will be used to provide subsidised petrol to the low-income segment,” he said in a press conference today.

Malik’s statement comes a day after Prime Minister Shehbaz Sharif announced a relief package for the poor under which a subsidy of Rs50 will be given to them on every litre of petrol.

After presiding over a review meeting on the relief package, the premier had said that the relief would be given to those low-income consumers who have motorcycles, rickshaws, 800cc cars or other small cars.


Elaborating on the subsidy today, Malik said PM Shehbaz had ordered the ministry to increase the subsidy to Rs100. “The rich will be charged Rs100 more and the poor will be charged Rs100 less.”

He revealed that the petroleum subsidy programme would be implemented within the next six weeks without any provision of subsidies.

The financing for the scheme, the minister continued, would be accommodated through the tax rate that the higher-income segment would be paying.

Malik recalled that a similar mechanism had been earlier applied in the gas tariffs as well, under which the bills for the poor were reduced by three times as compared to those of the rich.

“A week back, the prime minister and Nawaz Sharif instructed us to separate the petrol price for the rich and poor … hence, as per these orders, we presented a scheme to the premier yesterday,” he said.

Malik added that the entire basis of the subsidy was that people who were living in palaces and driving expensive vehicles pay a fair share for the commodities.

“We will take from those who have been blessed by God and give it to those who are striving to feed their families. This is our policy and it will be reflected in everything else as well,” he added.

Petrol price hike
Last week, the government increased the prices of all petroleum products, except the insignificant light diesel oil, by up to Rs13 per litre for the next fortnight.

The finance ministry said the increase was caused by an increase in Platts Singapore prices and the rupee’s depreciation over the outgoing fortnight.

With the latest review, the most inflationary high-speed diesel (HSD) prices made a new record, reaching Rs293 per litre. The HSD price adjustment directly impacts consumer prices because of an increase in transport costs.

The per-litre price of petrol was increased by Rs5 and that of HSD by Rs13. Since Jan 15, the government has increased the prices of HSD and petrol by Rs65 and Rs62 per litre, respectively.

DAWN
 
The government on Wednesday shared its strategy for the recently-announced fuel relief programme, which is to be implemented in three phases and will “provide a relief of up to Rs50 per litre to the poor”.

The scheme’s announcement had come days after the government increased the prices of all petroleum products — except the insignificant light diesel oil — by up to Rs13 per litre for the next fortnight.

In a report that details the pricing strategy behind the Prime Minister’s Petroleum Relief Programme, the government said it has developed a two-tier pricing programme that would provide relief to two-wheelers (motorcycles), three-wheelers (rickshaws) and small vehicles by dividing the consumers into the categories of “poor” and “rich”.

The programme will target roughly 20 million motorcycles and rickshaws (with a capping of 21 litres of fuel) & 1.36m small vehicles (with a capping of 30 litres of fuel) currently active across Pakistan, the report states.

DAWN
 
POL relief denied to appease IMF
Rs5 PDL hike aims at fulfilling another foreign lender’s condition

Instead of providing relief to the people, the federal government has increased the petroleum development levy (PDL) on high-speed diesel (HSD) by Rs5 per litre, pushing it up from Rs45 to Rs50 per litre -- fulfilling another condition imposed by the International Monetary Fund (IMF) for the revival of the stalled $6 billion bailout package.

However, the government has decided to keep the prices of petrol and HSD unchanged for the next 15 days.

The IMF has been pushing the government to increase the PDL to Rs50 per litre on all petroleum products, according to sources.

The government had already increased the PDL on high-quality petrol to Rs50 per litre in November last year.

Back then, the Economic Coordination Committee (ECC) of the cabinet, after deliberations, allowed the increase in PDL from Rs30 to Rs50 per litre on RON 95 and above-grade fuel with effect from November 16, 2022.

It was argued that the high-quality petrol “is a luxury good being consumed by wealthy consumers in expensive vehicles”.

Apart from HSD, the government has also jacked up the PDL on kerosene oil by Rs2.83 per litre.

...
https://tribune.com.pk/story/2409512/pol-relief-denied-to-appease-imf
 
Gas cannot be supplied round the clock, says minister

Minister of State for Petroleum Mus*adik Malik on Wednesday disclosed that natural gas cannot be supplied round the clock due to its depleting reserves in most parts of the country.

During a meeting with members of the Karachi Chamber of Commerce and Industry and later in a media talk, he said efforts were being made to ensure that gas supply remains unin*te*rrup*ted during sehri and iftar.

While rejecting reports that gas is being diverted to Punjab from Sindh despite its shortage in the south-eastern province, Mr Malik said he had been tasked to resolve the problem both in the domestic and industrial sectors.

He claimed that gas shortage had emerged due to its supply to the domestic sector of Balochistan.

“Our gas resources are depleting by 10 per cent every year. We have only 1,600mmcfd of gas left for the entire country while the demand is on the rise,” he added.

The government, he said, would ensure that poor households are provided gas on priority. However, he added, there would be a ban on new connections.

He recalled that Sindh had surplus gas until a few years ago, but currently it is facing a deficit due to a soaring demand.

Mr Malik pointed out that as compared with other provinces only Khy*ber Pakhtunkhwa had surplus gas at the moment.

...
https://www.dawn.com/news/1746150/gas-cannot-be-supplied-round-the-clock-says-minister
 
Finance Minister Ishaq Dar announced on Monday that the price of petrol was being cut by Rs12 and diesel by Rs30 per litre for the next fortnight.

In a televised address, he said: “Prime Minister Shehbaz Sharif sahib and his government try to provide maximum relief to the public on the basis of prices in the international market.

“Hence, after 12pm tonight, for the next 15 days, petrol prices are being reduced by Rs12 and the new price of petrol will now be Rs270,” Dar said.
 
Finance Minister Ishaq Dar announced on Wednesday that the price of petrol was being reduced by Rs8 and high-speed diesel (HSD) by Rs5 per litre for the next fortnight.

The new prices of petrol and HSD are Rs262 and Rs253 per litre, respectively.
 
The Pakistan Tehreek-e-Insaf (PTI) on Friday said that they expected Finance Minister Ishaq Dar to hand over his resignation and apologise to the nation for unleashing a record-high 38% inflation on the citizens, crippling the economy with 0% growth and taking the country on the brink of default with the State Bank of Pakistan (SBP) reserves falling below $4 billion.

In response to Dar’s news conference, a PTI spokesperson said in a statement that the Economic Survey FY2023 “paints a truly dismal picture of the economy”.

Under the PDM government, economic activity has collapsed to a standstill with 0% growth in the current year (0.3% to be exact), compared to two years of nearly 6% growth under the PTI government, the PTI spokesperson said in a statement.

“The epic failure of the PDM government has led to a ‘never-seen-before’ crisis with eight million workers becoming unemployed in FY2023, the unemployment rate rising to 10%, and causing nearly 18 million households to fall below the poverty line,” the statement read.

It stated that to hide his “colossal failures”, Dar likes to throw around random numbers and desperately spin fairy tales, as the finance minister cannot even differentiate between nominal GDP and GDP calculated on a purchasing power parity basis.

“But no one is buying his mumbo jumbo. The IMF has refused to do business with the PDM government, the global markets have shut their doors to Pakistan and even his own party men are openly questioning the stories being spun by Dar,” it added.

“The epic failure of his ‘Dar peg’ policy has showcased again why we believe he is unfit for this job, with a complete lack of basic understanding of markets and economic policy. This policy has brought the economy to the brink of a default, with SBP reserves now standing at only $3.9bn, not even enough to finance one month of imports. They were $10.5 billion at the time of the VONC,” the spokesperson said.

The statement went on to say that the national accounts committee once again reaffirmed the strong economic performance under the PTI government, as the GDP growth numbers for the last two years of the PTI government have been adjusted higher with the final growth for FY2021 estimated at 5.8% (from 5.7% earlier) and for FY2022 GDP growth has been revised to 6.1% (from 5.97% earlier).

“This reaffirms the fact that the economy was experiencing the highest levels of growth in the last 17 years and lays to rest all lies peddled by the PDM government about the PTI government’s economic performance. PTI is the only government since 2007 which achieved 2 consecutive years of average 6% growth,” it added.

It was said that if the PTI government had been allowed to complete its five-year term, it would have delivered on its promise to create 10 million new jobs for the youth. “It was this success which led to the PDM government using all means necessary to overthrow Imran Khan’s government and bulldoze all progress made in the one year,” it added.

“Despite the financial wizardry of FM Dar, he still cannot hide the epic failures of his government. The path of destruction which has led to the 0% growth, from 6.1%, has been plotted through regressive tax measures, inexplicable import restrictions, and the crowding out of the private sector in the credit markets. Deliberate sabotage of the IMF programme under FM Dar has led to a complete loss of confidence with neither development partners nor friendly countries willing to do business with Pakistan,” the spokesperson concluded.

Express Tribune
 
This guy has taken an eternal thekka in destroying Pakistan's economy, he has ruined our economy every time when taking charge and is never held accountable
 
Pakistan is working on the possibility of restructuring its bilateral debt regardless of whether it successfully completes its IMF review, Finance Minister Ishaq Dar said on Saturday, but reiterated it would not approach Paris club nation creditors or seek haircuts.

"We'll see how things go," Dar told reporters, a day after releasing the budget for the 2023-24 financial year, referring to whether to restructure or reprofile debt as Pakistan continues to speak with the IMF about its stalled bailout funds.

"In either case we will talk to bilateral creditors," said Dar.

The minister maintained that the country had "successfully" overcome economic vulnerability resulting in a halt to "any further decline".

A day earlier, the government unveiled a Rs14.5 trillion bloated budget, with the highest-ever deficit of Rs7.6 trillion in a bid to appease nearly a dozen sectors ahead of the general elections that could antagonise the International Monetary Fund (IMF).

The country’s IMF programme runs out this month with about $2.5 billion in funds yet to be released as it struggles to strike an agreement with the lender. The country is grappling with record inflation, fiscal imbalances and critical levels of reserves that cover barely a month worth of imports.

Bilateral creditors made up $37 billion of Pakistan's debt in the fiscal year 2021, out of which $23 billion is owed to China, according to an IMF country report released last year.

Dar in today’s presser said that a projection in the government's budget for 3.5% economic growth for the year ending in June 2024 was a "realistic target" and "on the lower side".

He said he was "hopeful" that Pakistan would pass its next IMF review, the country's ninth, but that he "didn't think" it would clear reviews beyond that.

In the year ending this month, Pakistan's gross domestic product (GDP) was projected to grow just 0.29%. The fiscal deficit for the following fiscal year was projected at 6.54% of GDP, according to the budget.

Dar said there was no more room in the budget to reduce the fiscal deficit target by any further.

In addition to requirements related to the currency and budget, Pakistan is required to secure firm and credible financing commitments to close the $6 billion gap in its foreign reserves in order to unlock funding under its long-delayed ninth IMF review.

The government has received commitments of only $4 billion, mainly from Saudi Arabia and the United Arab Emirates.

Speaking to the media today, Dar said the aim of the coalition government is to reverse economic losses and added that the first objective is to "achieve 2017's economic indicators".

He stated that efforts are underway to prevent further economic decline while acknowledging the "deep and steep" vulnerability faced by Pakistan.

Maintaining that the goal is to steer Pakistan towards the path of development, the finance minister claimed that with the proper implementation of the PSDP, a growth rate of 3.5% can be achieved with ease.


Dar said since debt servicing constitutes a major portion of this year's budget, efforts would be made to reverse the prevailing trend.

He also said that with an increase in economic growth, the country's macroeconomic indicators would improve, inflation will reduce and more jobs will be created.

Reiterating that Pakistan will not default, he said the plan is to make the country self-sufficient.

He further said that requesting a debt restructuring or write-off was not on the table, but negotiations could be pursued for extending the period of repayment. Dar added the option exists and can be explored at a later date.

The minister also stated that there were no plans to approach institutions to request debt rescheduling, reiterating that Pakistan would meet its obligations.

When asked about subsidies, Dar accepted that the government had provided numerous subsidies> Giving the example of the power sector, he said the government had given a subsidy of Rs1,900 billion and stressed the need to improve the sector.

He also acknowledged that the power sector had been a significant "stumbling block" during talks with the IMF.

Answering a question regarding subsidy for motorists, the minister said the plan was to charge vehicles above 800cc more per litre while giving a discount of Rs50 to vehicles below 800cc and added that the plan was "feasible".

Dar again said that the government is committed to boosting exports and the country was ranked the 24th largest economy during PML-N's previous tenure.

Expressing hope for the extension of EU's GSP Plus status for Pakistan, the minister said the commerce and foreign affairs ministry was handling the matter.

Speaking about minimum wage, Dar clarified that it has increased from Rs25,000 to Rs32,000 and not Rs30,000 as mentioned in the booklets distributed earlier.

He also urged civil society to play a role in cases where employees were being paid less than the minimum wage. He added that the pension amount was also increased to Rs12,000 from the earlier Rs10,000.

The budget

Unveiling the budget in the National Assembly, Dar stressed that “the next fiscal year’s budget will not be an election year budget, rather it is a fiscally responsible budget”. He went on to say that “no independent analyst could say otherwise”.

The details, however, showed that the government had announced Rs80 billion for the Prime Minister’s Package, Rs90 billion for parliamentarians’ schemes and Rs50 billion for the provincial nature projects.

The finance minister proposed tax reduction for the Information Technology sector, listed companies, overseas Pakistanis, young entrepreneurs and giving relief to the builders and traders. He also extended the tax-free status of the erstwhile Federally Administered Tribal Areas.

Read more: Govt bets on relief, amnesty

Dar said that owing to the rupee devaluation and an increase in the State Bank of Pakistan’s (SBP) policy rate, people faced problems, but “we sacrificed our political gains for improving the economy”.

The budget documents showed that the government did not have any hope that the IMF programme would revive. It had not booked the $2 billion Saudi Arabian additional loan and the $1 billion UAE new loan against the receipts for this fiscal year. Instead the loans are shown as part of the next fiscal year’s receipts.

The IMF had set the condition of arranging $6 billion additional loans to qualify for the staff-level agreement. The finance minister said that the IMF programme was a priority of the government and it was fully trying to revive it before the end of June.

Interestingly, the government showed $2.4 billion IMF loan receipts in the next fiscal year, despite the programme ending on June 30. Dar has already ruled out talks for any new programme by this government.

The government has also budgeted $1.5 billion Eurobond and $4.5 billion in new foreign commercial loans in the next fiscal year.

In his budget speech, Dar claimed that no new tax had been imposed in the next fiscal year. But the Finance Bill, 2023 showed that the government had introduced a 50% windfall profit tax, 0.6% withholding tax on cash withdrawals, 10% to 20% tax on bonus shares and Rs200,000 tax on every foreign worker working in Pakistan.

The government proposed gross Rs233 billion new taxes, excluding the impact of the bonus shares and the 50% tax on windfall profits.

While unveiling the second budget of the coalition government in an unusually calm atmosphere, Dar also increased taxes on second-hand imported cars. He increased the tax on credit card users by 400% on making payments of overseas purchases like Netflix, data storages and paying for Twitter services.

Dar unveiled a fiscally expansionary budget of Rs14.5 trillion – an unprecedented 50% increase over this year’s approved budget – mainly on account of record high interest payments.

For fiscal year 2023-24, the budget deficit – gap between expenses and the income – was estimated at 7.2% of the gross domestic product (GDP). This was quite large and in absolute terms was equal to Rs7.6 trillion, according to the budget documents.

Alarmingly, half of the bloated budget outlay would be earmarked for paying the interest cost. After adding defence outlay of Rs2.7 trillion and Rs7.3 trillion interest payments, the federal government will spend Rs10 trillion or 69% of the budget on them and their related functions.

The stated defence budget is Rs1.809 trillion as against the demand of Rs1.922 trillion. In addition to that, the government had given Rs563 billion for military pensions and Rs280 billion for the armed forces development programme.

Sources said that the Rs7.3 trillion debt servicing cost was on the lower end and was also less than the estimates of the IMF that it shared with the finance ministry. The allocations for the interest payments were shown at Rs7.3 trillion – higher by Rs3.4 trillion or 84% against this year’s approved budget.

The central bank has significantly increased the interest rates to 21% and as a result, half of next fiscal year’s balloon budget would be consumed on these payments. The rupee devaluation was another factor behind record interest payments. Of Rs7.3 trillion, the external debt servicing was estimated at Rs872 billion.

The overall primary budget was shown positive by 0.4% of the GDP on the back of provincial cash surpluses of Rs650 billion. The overall budget deficit had been proposed at 6.5% of GDP or Rs6.9 trillion.

The sources said that some late-night changes were made in the budget aimed at showing the overall primary surplus of 0.4% of the GDP or Rs379 billion. The figures of grants, subsidies, and the army’s development programme were lowered at the eleventh hour, they added.

It appears that the finance ministry’s estimates have lost credibility, as the budget estimates for the outgoing fiscal year agreed with the IMF just in February were different from those reported on Friday.

The budget figures suggested that the IMF might not endorse such an expansionary fiscal outlay, which would further contribute to the overall debt burden of the country.

The subsidies’ allocation had been announced at Rs1.070 trillion –down from Rs1.125 trillion that the finance ministry originally wanted to give for the next fiscal year. An amount of Rs1.464 trillion was given in grants, roughly Rs60 billion less than the initially estimated figure.

To run the civil government, an amount of Rs714 billion had been proposed, while Rs761 billion was set aside for the payment of pensions, including military’s.

The gross federal government revenues were estimated at Rs12.2 trillion. After paying the shares of the provinces, the net revenues of the federal government had been projected at Rs6.9 trillion –Rs400 billion less than the downward projected cost of debt servicing for the next fiscal year.

The FBR’s tax target was projected at Rs9.2 trillion—up by 28% over the revised estimates. But in terms of size of the GDP, it was equal to only 8.7% and not enough to contain the growing public debt and finance the expenses.

The government proposed Rs2.96 trillion non-tax revenues, largely to be collected from the central bank and on account of petroleum levy. The central bank’s profit was estimated at Rs1.13 trillion while the petroleum levy collection was estimated at Rs869 billion.

Dar said that the government expected the economy to grow by 3.5%, whereas the target for exports in the next fiscal year was $30 billion. He added that the overseas Pakistanis’ remittances equalled to 90% of the exports. The government expected them to send $33 billion in FY24.

He said that the tax on overseas Pakistanis for investment in immovable property was proposed to be removed. They would also be provided fast-track immigration facility at the airports.

(With input from Reuters)

Express Tribune
 
Savak said:
This guy has taken an eternal thekka in destroying Pakistan's economy, he has ruined our economy every time when taking charge and is never held accountable
Click to expand...

But he is considered a hero by our other benefactors

10075522dd55609.jpg
 
Story of this conman is a perfect script for Netflix series how he started as a paying guest in Britian and thugged his landlord and pioneered the mechanism of money laundering and, turned approver against his Godfather then came back due to this thuggery and family ties with ruling family of Pakistan, then built his empire back home and in Emirates then converted his black money and made it legal citing being the peon of some Arab Goldsmith , his inept attitude led to exchange rate imbalance and country had monetary hefty fines from international agencies also had his assets freezed by native courts declared absconded had red warrant against him and did the topi drama of being seriously ill in UK, then returned back by another conspiracies crook in state plane and lobbied to oust a qualified minister only to start his gimmick again and has led the state on the verge of bankruptcy.

Modern day AlCapone or whatever you can name him
 
Last edited:
ISLAMABAD: Apparently writing off the IMF programme for good, Finance Minister Ishaq Dar on Saturday spelt out the government’s so-called ‘Plan B’, working immediately next month on rescheduling the bilateral external debt of over $27 billion, which Pakistan mostly owes to China.

Speaking at his post-budget news conference, Mr Dar ruled out any discussions about restructuring external debt with multilateral agencies or Paris Club nations because “it’s not a dignified thing to do”.

“We will not bother multilaterals,” he said, adding that “rescheduling Paris Club [loan] is not on our menu”.


He, however, expected little from the International Monetary Fund (IMF) beyond disbursem*ents under the long-delayed ninth IMF review, which would have released a $1.1bn instalment.

“There is no chance for the 10th review,” he said, implying that the current IMF programme of $6.5bn would conclude at around $5.1bn without the remaining 10th and 11th reviews for $1.4bn funds.

Therefore, the minister clarified, about $2.5bn indicated in the budget documents as expected inflows from the IMF would not materialise beyond $1.1bn under the ninth review.


On the other hand, he said Saudi Arabia and the United Arab Emirates had confirmed to the IMF their $3bn support to Pakistan, which, if they do not materialise until June 30, would flow in early next year.

Asked about debt rescheduling with bilateral partners like China, he did not name any country but said this was something the government wanted to start working on early in the next fiscal year after the budget is passed.

He said this would not be “haircuts or write-offs” but negotiations for longer-term arrangements, which is the norm given the Covid-19 pandemic, last year’s floods and other global and local challenges.

Pakistan’s overall bilateral debt amounts to around $37bn, but there is little space in around $10bn Paris Club debt due to its recent rescheduling under G-20 Debt Service Suspension Initiative (DSSI).

Almost half of the remaining Chinese loans fall in the bilateral category that could be considered for prolonging their servicing period while keeping the principal amount unchanged.

“We have done our working” and would take this up next month, he said. About $6bn in Chinese loans belong to commercial banks, while about $7bn worth of time deposits are normally rolled over on maturity almost every year.

To another question, Mr Dar said rescheduling bilateral debt was under consideration with or without the IMF. The decision to discuss another Fund bailout package would now be left to the next government after the general elections, he added.

At the same time, the finance minister emphatically discarded the possibility of sovereign default by any stretch of the imagination, saying Pakistan would ensure repayments to all multilateral creditors promptly as they become due.

He agreed that domestic debt accounted for almost 85pc of total public debt but ruled out its rescheduling, saying the domestic debt was not a problem even though banks had “cartelised” the domestic market.

He then took a dig at the previous PTI government for making certain legal changes in the central bank law under the IMF programme that “crippled the government”.

He said that during his previous tenure, and even before, the government used to borrow from the central bank and repay at the end of each quarter, so there would be no increase in debt in each quarter, but now the banks had increased their spread by up to 2pc over the central bank’s policy rate.

“We have to now review this system and see how corrective actions could be taken… bank’s monopoly must end,” he said.

He argued that rescheduling debt from domestic banks would be imprudent at this stage when interest rates were so high and rescheduling would mean prolonging higher rates into the future.

“We had re-profiled domestic loans in the past when interest rates were around 6.5pc and prolonged short-term debt into long-term. We will consider such a thing when the environment is conducive,” he said.

The minister, however, pointed out that the work was at an advanced stage, and the government would soon introduce a new system in which treasury bills could be directly sold to the general public instead of restricting them to commercial banks, which then raise funds from the people.

“We will do this within two to three weeks and the finance ministry would itself issue T-bills to the public,” he said.

Mr Dar left a little sense of ambiguity about general elections, due in a few months, although he said the government had allocated required funds in the budget for elections as a constitutional responsibility to ensure polls on time.

The minister dismissed certain reports as untrue that the government had offered amnesty in the budget to the people to convert their foreign exchange holdings at home into the official channel, saying someone might have seen some paper of proposals that did not come up for consideration or become part of the budget approved by the cabinet.

On the $800m outstanding privatisation proceeds of PTCL towards Etisalat, the finance minister said the matter was 17 years old and had been delayed because of a “very weak contract signed in haste” at the time of privatisation.

“We are in a weak position, but we are still using our friendly relations to secure a higher amount; otherwise, legally government of Pakistan has no chance to win,” he said.

To a question, Mr Dar said just Rs15bn had been targeted from privatisation next year, but the outsourcing of airports was at an advanced stage with the financial advisory of the International Finance Corporation (IFC) of the World Bank and companies from 12 countries had shown keen interest. “We will be inviting proposals for bidding in July,” he said.

The minister said the next year’s GDP growth target of 3.5pc was realistic with federal PSDP investment of Rs1.15tr, including private partnership and provincial development plans of over Rs1.6tr and federal budget outlay of Rs14.46tr.

He said the ad hoc relief of 35pc and 30pc for government employees would be based on their basic salaries and not on gross salaries. An official said the impact of the increase in salaries and allowances of civil and armed forces employees would be Rs90-100bn, including about Rs40bn for civil employees. The cost of pension adjustments would make another Rs50-55bn.

On high subsidies, he conceded that the government had provided Rs900bn subsidies for the power sector alone, which needed to be improved and noted that the power sector had been a key source of challenge while dealing with the IMF.

As for the European Union’s GSP+ preferential tariff scheme, Mr Dar said the commerce ministry and Foreign Office were proactively handling the matter and there were strong reasons to believe that the facility would be extended later this year.

Published in Dawn, June 11th, 2023
 
Finance Minister Ishaq Dar lost his cool with a reporter at the Parliament House on Thursday after being questioned about the completion of the stalled International Monetary Fund (IMF) programme.

After addressing a National Assembly session, Dar, flanked by his security guards, was departing the Parliament building when a reporter — identified as Shahid Qureshi — asked him some questions.

A video of the incident, shared by the journalist in question, shows Dar going down the stairs as Qureshi asked him: “Dar sahib, will you talk today?”

The minister replied, “I just came out [of the NA] after speaking so much.”

At that, the journalist enquired if the IMF deal was “happening” and referred to Prime Minister Shehbaz Sharif’s meeting with the IMF chief today, which took place on the sidelines of a summit in Paris. However, Dar remained silent.

Qureshi then asked the reason for the government’s failure to secure the deal, to which the finance minister said, “Because people like you are in the system.”

In his defence, the reporter said “we are not in the system” and “we just ask questions”. At that point, Dar, who had reached the parking lot by that time, turned around angrily towards the journalist.

“What do you want?” Dar asked the reporter and told him to “fear the God”.

“Why are you fighting, sir?” Qureshi responded, after which the minister’s security personnel intervened and escorted him towards the vehicle.

Later, the reporter released another video in which he detailed the entire incident.

“Today, immediately after the finance minister exited the NA, I was standing there. As a reporter and journalist who covers the economy beat, I asked him why the agreement with the IMF had not been finalised yet,” Qureshi said.

“Initially, he [Dar] said he had spoken in the Parliament but I said I wanted to talk about the IMF … as soon I proceeded to question him, Ishaq Dar’s security guards were told to stop me.

“They grabbed me from both sides after which Ishaq Dar slapped me,” the journalist claimed, adding that he had recorded the entire incident.

“While leaving, Dar told his security officers to follow me and teach me a lesson … those officers followed me till I reached the second floor of the Parliament after which I went to the PRA office and have now reached the Press Gallery,” Qureshi added.

Following the incident, the Parliamentary Reporters Association (PRA) issued a condemnation.

The statement said senior parliamentary reporter Qureshi faced “violence by Ishaq Dar’s guards” and “disrespectful behaviour”, which the association “strongly condemns”.

The association demanded that Dar apologises to the reporter, adding that there should not be a repeat of “aggressive behaviour” by Dar in the future.

“If Dar does not apologises, the PRA reserves the right to walk out of the budget session and protest,” the statement read.

The association also demanded that National Assembly Speaker Raja Pervaiz Ashraf also takes notice of the incident.
 
MenInG said:
Finance Minister Ishaq Dar lost his cool with a reporter at the Parliament House on Thursday after being questioned about the completion of the stalled International Monetary Fund (IMF) programme.

After addressing a National Assembly session, Dar, flanked by his security guards, was departing the Parliament building when a reporter — identified as Shahid Qureshi — asked him some questions.

A video of the incident, shared by the journalist in question, shows Dar going down the stairs as Qureshi asked him: “Dar sahib, will you talk today?”

The minister replied, “I just came out [of the NA] after speaking so much.”

At that, the journalist enquired if the IMF deal was “happening” and referred to Prime Minister Shehbaz Sharif’s meeting with the IMF chief today, which took place on the sidelines of a summit in Paris. However, Dar remained silent.

Qureshi then asked the reason for the government’s failure to secure the deal, to which the finance minister said, “Because people like you are in the system.”

In his defence, the reporter said “we are not in the system” and “we just ask questions”. At that point, Dar, who had reached the parking lot by that time, turned around angrily towards the journalist.

“What do you want?” Dar asked the reporter and told him to “fear the God”.

“Why are you fighting, sir?” Qureshi responded, after which the minister’s security personnel intervened and escorted him towards the vehicle.

Later, the reporter released another video in which he detailed the entire incident.

“Today, immediately after the finance minister exited the NA, I was standing there. As a reporter and journalist who covers the economy beat, I asked him why the agreement with the IMF had not been finalised yet,” Qureshi said.

“Initially, he [Dar] said he had spoken in the Parliament but I said I wanted to talk about the IMF … as soon I proceeded to question him, Ishaq Dar’s security guards were told to stop me.

“They grabbed me from both sides after which Ishaq Dar slapped me,” the journalist claimed, adding that he had recorded the entire incident.

“While leaving, Dar told his security officers to follow me and teach me a lesson … those officers followed me till I reached the second floor of the Parliament after which I went to the PRA office and have now reached the Press Gallery,” Qureshi added.

Following the incident, the Parliamentary Reporters Association (PRA) issued a condemnation.

The statement said senior parliamentary reporter Qureshi faced “violence by Ishaq Dar’s guards” and “disrespectful behaviour”, which the association “strongly condemns”.

The association demanded that Dar apologises to the reporter, adding that there should not be a repeat of “aggressive behaviour” by Dar in the future.

“If Dar does not apologises, the PRA reserves the right to walk out of the budget session and protest,” the statement read.

The association also demanded that National Assembly Speaker Raja Pervaiz Ashraf also takes notice of the incident.
Click to expand...

This criminal money launderer has no policy. The pathetic clown was rumbled last time he was in power but our Generals didn't get the note. Today PK is bankrupt and this clown has cost $10bn in lost Foreign currency and the IMF loan is only going to be $6bn if not lower.
 
Amid renewed hopes for IMF deal: Govt may hike petroleum levy to Rs55/litre from July 1
Govt will have to hike the PDL from Rs50 to Rs55 per litre from the start of the next fiscal year i.e. July 1, 2023

Amid the possibility of moving towards a broader agreement with the IMF on a fresh bailout package, the government is considering jacking up the Petroleum Development Levy (PDL) on petrol and diesel from Rs50 to Rs55 per litre with effect from July 1, 2023.

Although the government seems confident about clinching the IMF agreement on a fresh Standby Arrangement (SBA) for a shorter period of six to nine months, it will have to hike the PDL from Rs50 to Rs55 per litre from the start of the next fiscal year i.e. July 1, 2023.

Through the Finance Act 2023-24, the government sought powers for amendment of the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961) in the Fifth Schedule, in column (1) through which the government is empowered to hike the petroleum levy.

Earlier, it required approval of parliament to fix the maximum limit of petroleum levy. Now the Ministry of Finance had informed the Senate Standing Committee on Finance that the petroleum development levy was worked out at Rs60 per litre for achieving its target of Rs879 billion in the next fiscal year, against the revised target of Rs542 billion for the outgoing financial year 2022-23 ending on June 30.

The question arises has the government received the Memorandum of Economic and Financial Policies (MEFP) for the fresh bailout package under the SBA programme for the next six to nine months? Without a broader agreement on MEFP, the Staff Level Agreement could not be signed. Pakistani authorities claimed that both sides exchanged draft MEFP several times but it was not yet clear whether it was related to the Ninth Review of the expiring Extended Fund Facility or to the fresh SBA programme.

...
https://www.thenews.com.pk/print/10...hike-petroleum-levy-to-rs55-litre-from-july-1
 
You must log in or register to reply here.

Similar threads

C
How much petrol costs without govt taxes in Pakistan?
Replies
28
Views
2K
Cricket Warrior
C
FearlessRoar
Pakistan’s top talent is leaving the country in record numbers
Replies
2
Views
146
big_gamer007
big_gamer007
rpant_gabba
Contracts with China need review, Pakistani minister says
Replies
3
Views
293
rpant_gabba
rpant_gabba
BouncerGuy
Miftah Ismail, Khaqan Abbasi launch ‘Awaam Pakistan’ party
Replies
7
Views
321
offstump
offstump
The Bald Eagle
'Will chop them up (Muslims) and bury in the ground...,’ warns Mithun Chakraborty at Bengal rally in presence of Amit Shah
Replies
71
Views
2K
The Bald Eagle
The Bald Eagle
Back
Top