Pakistan economy under the PDM government & now the caretaker administration

[Hextro]

It was mocking PTI when petrol price was 108 now it's 210 under imported government. I hope PDM supporters are enjoying

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Just take a look at the Tweet from this FAKE Foreign Minister. Saray CHOR aur Dacoit kathay huway waih hein. Ab pasand aaye Imported Hakoomat. Petrol Rs 205+ <a href="https://t.co/rigLqJKtIl">pic.twitter.com/rigLqJKtIl</a></p>— Murad Raas (@DrMuradPTI) <a href="https://twitter.com/DrMuradPTI/status/1533721729541058560?ref_src=twsrc%5Etfw">June 6, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

There isn't much hope for the economy in the short term because PDM has done almost irreparable damage to it in a few months. It's gonna take a few years to fix this mess unless we strip PDM of their ill-gotten wealth, but that's probably wishful thinking.

 

[Colorblind Genius]

There isn't much hope for the economy in the short term because PDM has done almost irreparable damage to it in a few months. It's gonna take a few years to fix this mess unless we strip PDM of their ill-gotten wealth, but that's probably wishful thinking.

And this is not the problem.

The problem is, All the current PPP/MQM/PDM parliament members, cabinet members and ministers, if they run in the election again, they will probably get about the same number of winning ratio against PTI.

The gullible in the public will keep giving their vote for a plate of Biryani, and the corrupt and dishonest in the public will keep giving their vote to the thief of their likings so that both entities can flourish in corruption and dishonesty on their own level. THAT'S the problem.

The crowds we saw during the PTI protests, were only 20 or 30% of the voting pool. Rest of 70% votes are numb to what's happening with the country. They don't care.

 

[Kianig89]

It was mocking PTI when petrol price was 108 now it's 210 under imported government. I hope PDM supporters are enjoying

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Just take a look at the Tweet from this FAKE Foreign Minister. Saray CHOR aur Dacoit kathay huway waih hein. Ab pasand aaye Imported Hakoomat. Petrol Rs 205+ <a href="https://t.co/rigLqJKtIl">pic.twitter.com/rigLqJKtIl</a></p>— Murad Raas (@DrMuradPTI) <a href="https://twitter.com/DrMuradPTI/status/1533721729541058560?ref_src=twsrc%5Etfw">June 6, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Where is our FM which cave is he hiding rumors that he and Khar are on paid vacations in Lucerne

 

[silentkiller187]

 

[Syed1]

Petrol to be increased by a further 25-30 ruppees... Reaching about 240/l.... PDM cultist who used to slit wrists over PTI's 150/l petrol will now happily put 240/l.


Allah ki latthi bay awaaz hai

 

[Colorblind Genius]

Petrol to be increased by a further 25-30 ruppees... Reaching about 240/l.... PDM cultist who used to slit wrists over PTI's 150/l petrol will now happily put 240/l.


Allah ki latthi bay awaaz hai

Won’t change a thing!

Let them do it and then let SS and his son, and his cabinet members and the ministers run in the election again, and I guarantee you, they will get millions of votes, and they will their seats again!


THATS our problem.

 

[DRsohail]

Won’t change a thing!

Let them do it and then let SS and his son, and his cabinet members and the ministers run in the election again, and I guarantee you, they will get millions of votes, and they will their seats again!


THATS our problem.

If the elections were free and fair you will see. I can guarantee you that they are not going to get more than 20,25 NA seats.

 

[Colorblind Genius]

If the elections were free and fair you will see. I can guarantee you that they are not going to get more than 20,25 NA seats.

I hope that's the case but I tend to not agree.

These protests and all that hue n cry that we see in the streets are mostly disgruntled PTI members who got hit by a double whammy. First, their elected govt was stolen from power, and then they got hit hard by the hyper inflation.

This perhaps represents about 20% to 30% of our voting pool.

We have two LARGE chunks in our population that fall in the following categories.

1 - The smaller chunk of gullible in our public who will vote for a plate of biryani or a thousand Rs or because of "biraadari". No concept of any awareness.

2 - And the much larger chunk of corrupt and dishonest haram khores who love to have "meri pasand ka chore in power, so that I can easily continue with corruption and dishonesty, on my low own level, and he can do his high level corruption on his own level, and I don't give a flying flock about it.

There is a good reason why we stand at number 140 on the scale of honesty.

Try going to ANY govt office in Pakistan (regardless of who sits in the PM house), and see if you can get your task done with ease? Try dealing with Police? Customs? local vendors, businesses etc, and you will notice that, dishonesty and corruption level is deeply rooted to a disgusting level in our nation. Do you expect them to have the "ghairut" come out and grab the PDM members by the neck? Not in a million years.

 

[Kriketer]

I mentioned earlier where I met one person from Pakistan who openly confessed he hated Imran Khan because his pipeline business couldn't offer kickbacks to various government portals like before and was incurring financial losses. He confessed his family business was much better under Nawaz and that they were paying barely any taxes then. Gave it away in the heat of the moment but pretty much summed up why h@r@m-khoor choors love PDM

 

[Colorblind Genius]

I mentioned earlier where I met one person from Pakistan who openly confessed he hated Imran Khan because his pipeline business couldn't offer kickbacks to various government portals like before and was incurring financial losses. He confessed his family business was much better under Nawaz and that they were paying barely any taxes then. Gave it away in the heat of the moment but pretty much summed up why h@r@m-khoor choors love PDM

I met a lady who was a school teacher in KP and he hated IK.

Her rationale was, "In the past, it didn't matter much if I went to school or not (to perform my job), and I got my monthly payroll, but now I HAVE to go every day of the week due to biometric attendance system or else there are consequences (for my haram khori).
You can imagine what would she teach the kids?

 

[DRsohail]

I mentioned earlier where I met one person from Pakistan who openly confessed he hated Imran Khan because his pipeline business couldn't offer kickbacks to various government portals like before and was incurring financial losses. He confessed his family business was much better under Nawaz and that they were paying barely any taxes then. Gave it away in the heat of the moment but pretty much summed up why h@r@m-khoor choors love PDM

Yes that's the case. you can see few posters loving PDM.

 

[DRsohail]

I met a lady who was a school teacher in KP and he hated IK.

Her rationale was, "In the past, it didn't matter much if I went to school or not (to perform my job), and I got my monthly payroll, but now I HAVE to go every day of the week due to biometric attendance system or else there are consequences (for my haram khori).
You can imagine what would she teach the kids?

Same is the case with doctors. Most of my fellow docs and paramedics in peripheral areas are just making money. KP government have done marvelous job to get them back to hospitals and their hate for imran khan is unimaginable.

 

[DRsohail]

[MENTION=156349]Hextro[/MENTION] Can you please share the data or estimate of the whole loans taken by pti.?

 

[Hextro]

[MENTION=156349]Hextro[/MENTION] Can you please share the data or estimate of the whole loans taken by pti.?

My last estimate was that they borrowed loans of around $52 billion in three years eight months and retired around $36.05 billion in that period.

 

[DRsohail]

My last estimate was that they borrowed loans of around $52 billion in three years eight months and retired around $36.05 billion in that period.

thank you.

 

[transparent opacity]

PM Shehbaz decides to abolish taxes on raw materials for export industries

Prime Minister Shehbaz Sharif on Wednesday directed authorities to abolish all taxes on raw materials used in the export industry and form task forces to attract investment in multiple sectors.

The Shehbaz government has been trying to set up a long-term plan to revive the ailing economy, with the premier yesterday repeating his call to boost exports to ease the burgeoning cash crunch.

According to state-run APP, the premier met a delegation from the American Business Council comprising representatives from pharmaceuticals, food processing, IT, e-commerce, retail, textile, sports, and logistics sectors. It was also attended by federal ministers Syed Naveed Qamar, Makhdoom Murtaza Mahmood, and Marriyum Aurangzeb.

The prime minister ordered task forces formed to attract investments in multiple sectors. Task forces will be formed in the fields of tourism, pharmaceuticals, information technology, e-commerce, large-scale manufacturing, and agriculture.

He told the delegation that the government was making efforts to ensure the production of export quality agricultural products.

For the first time, he said, the government was calling for consistency of policies as the "subjects of the national economy and public welfare are above politics".

The prime minister further directed the secretary of commerce as well as the secretary of the Board of Investment to ensure immediate resolution of the issues faced by the investors and sought a compliance report within a week.

On the other hand, state media reported that business representatives said that government policies helped them revive investors’ trust and called the pre-budget consultation with stakeholders a "welcome step".

Ahead of the budget announcement on June 10, PM Shehbaz had invited all stakeholders to put their heads together to cement a long-term plan to revive the ailing economy on Tuesday. The day-long pre-budget huddle was attended by top industrialists, agriculturists, and economists, who gave suggestions to steer the country out of an unprecedented economic crisis.

During the conference, the premier promised them that their suggestions floated would be considered and separate plans would be made for agricultural, industrial, and financial growth.

PM Shehbaz also highlighted that without economic stability, political stability could not be achieved and said that it was about time the elite class had to make sacrifices and non-productive assets like real estate would have to be taxed.

He urged industrialists to go for renewable energy and capitalise on the country’s huge reserves of coal for power generation.

The prime minister also stressed the need for curtailing imports and increasing exports, assuring participants of the government’s all-out support in expanding the local industry and removing all hindrances and red tape.

https://www.dawn.com/news/1693771/pm...ort-industries

 

[transparent opacity]

World Bank approves $258m to support healthcare in Pakistan

The World Bank has approved $258 million to strengthen primary health care systems and accelerate national efforts towards universal health coverage in Pakistan, a press release issued by the international financial institution said on Wednesday.

The National Health Support Programme "complements ongoing investments in human capital and builds on health reforms that aim to improve quality and equitable access to healthcare services, especially in communities lagging behind national and regional-level health outcomes".

It identified three areas of focus for healthcare reforms under the initiative: healthcare coverage and quality of essential services, governance and accountability and healthcare financing.

Elaborating on these areas, the statement said the programme focused on healthcare coverage and quality of essential services to ensure availability of adequate staffing, supplies and medicines and to enhance patient referral systems for expediting emergency and higher-level care.

Similarly, the focus on governance and accountability was intended to strengthen oversight and management of primary healthcare services through real-time monitoring of available supplies and essential medicines.

The statement further explained that initiatives in this area included setting up a central information platform for provincial authorities to assess gaps in service delivery across public and private healthcare facilities.

Moreover, the focus on healthcare financing was to improve the financial management of primary healthcare centres for better expenditure tracking and budget forecasting to sustain quality healthcare services and delivery.

"The programme will benefit all communities through improvements to provincial primary healthcare systems, particularly [those] in approximately 20 districts that suffer from having the least access to health and nutrition services," the press release read.

According to the press release, the NHSP is co-financed by the International Development Association ($258 million) and two grants ($82 million) from the Global Financing Facility (GEF) for Women, Children and Adolescents (GFF), including a $40 million grant for protecting essential health services amid multiple global crises.

“The partnership between the GFF and the government of Pakistan focuses on building sustainable health systems while ensuring that all women, children and adolescents, especially in the most vulnerable communities can access the services they need amid multiple crises,” the statement quoted Monique Vledder, head of secretariat at GFF as saying.

"By investing in primary health care, strengthening the health workforce and equipping community health centres to both respond to emergencies and deliver quality services, Pakistan can drive a more equitable and resilient recovery,” she added.

World Bank Country Director for Pakistan, Najy Benhassine explained that “by strengthening provincial health systems, this programme is foundational to building the country’s human capital and improving health and nutrition outcomes for its citizens".

“Pakistan continues to make strides in health reforms toward ensuring access to primary healthcare services, especially for children and women during pregnancy and childbirth,” he said.

Hnin Hnin Pyne, task team leader for the programme, said: “NHSP creates a national forum for the federal and provincial governments to exchange lessons and collaborate on achieving sustainable health financing and high quality and coverage of essential services. It also helps strengthen engagement between public and private facilities and better coordination among development partners on future investments in health.”

https://www.dawn.com/news/1693770/world-bank-approves-258m-to-support-healthcare-in-pakistan

 

[Syed1]

I mentioned earlier where I met one person from Pakistan who openly confessed he hated Imran Khan because his pipeline business couldn't offer kickbacks to various government portals like before and was incurring financial losses. He confessed his family business was much better under Nawaz and that they were paying barely any taxes then. Gave it away in the heat of the moment but pretty much summed up why h@r@m-khoor choors love PDM

Yeah makes sense... Certain very vocal supporters of PDM on here have their fathers in very senior bureaucratic positions and I guess having chor daku at the helm allows them the opportunity to earn a great deal of 'side income'

 

[Xoib]

Yeah makes sense... Certain very vocal supporters of PDM on here have their fathers in very senior bureaucratic positions and I guess having chor daku at the helm allows them the opportunity to earn a great deal of 'side income'

Not side income their entire wealth is amassed on chor bazari hence the irrational blind support you see here.

 

[Kianig89]

PDM in disaster mode Energy crisis at its peak, inflation intolerable,common man totally crushed

 

[MenInG]

The government may impose 1% tax on all credit and debit card transactions conducted in Pakistan to buy goods abroad or during international travel, aimed at saving the fast depleting foreign exchange reserves.

It is also planning to increase the tax on international air travel by four times to Rs50,000 per Business Class ticket, according to sources in the Federal Board of Revenue (FBR).

Both the steps are aimed at saving the foreign exchange reserves by around $1 billion a year. Authorities have observed a mushroom increase in overseas payments through credit and debit cards after the State Bank of Pakistan (SBP) made the regulations stringent on the purchase of dollars from the domestic market and for the passengers carrying the greenback abroad.

In December last year, the central bank amended its regulations for the purchase of foreign currency, binding all exchange companies to ensure that no individual buys foreign exchange worth more than $10,000 per day and $100,000 per calendar year or equivalent in other currencies in the form of cash or outward remittances.

However, a person can still send educational and medical expenses abroad worth up to $70,000 per calendar year and $50,000 per invoice from banks as per existing regulations.

Further limits have also been placed on carrying foreign currency abroad from Pakistan.

Sources said that there was a proposal to revive the 1% withholding tax on the transactions conducted through credit and debit cards. The rate could be 2% for the non-filers of income tax returns.

A similar tax had been imposed in the past but was withdrawn in June last year due to the negligible collection. However, this time around the government wants to include all those online transactions through these digital modes of payment that result in outward flow of money from Pakistan.

Earlier, every banking company was collecting 1% advance tax at the time of any sum remitted outside of Pakistan, on behalf of any person who has completed a credit card transaction, a debit card transaction, or a prepaid card transaction with a person outside of Pakistan.

The official foreign exchange reserves dropped to just $9.7 billion last week that Finance Minister Miftah Ismail said would again jump to around $12 billion once a $2.3 billion loan from China was received in a few days.

Sources said that there was also a proposal to slap a total federal excise duty of Rs50,000 per Business Class international air ticket with the objective to tax the rich and also discourage international travel.

The government is already charging these passengers excise duty of Rs10,000.

The federal cabinet on Tuesday also banned foreign visits of government officials and cabinet members to save foreign exchange, except only where travel is obligatory.

In the last budget, the previous government also withdrew the 5% advance income tax on the gross amount of domestic air ticket, Rs16,000 per person on First Class international travel and Rs12,000 on Business and Economy Plus international travel.

On Monday, the SBP and the federal government categorically rejected rumours that they were planning to freeze all foreign currency accounts (FCA), Roshan Digital Accounts (RDA) and safe deposit lockers in Pakistan’s banks.

The authorities assured the general public that the accounts and lockers were completely safe, and that there was no proposal under consideration to put any restriction on them.

Finance Minister Miftah Ismail said that the looming default had been averted after the government took difficult steps in addition to engaging with the bilateral and multilateral creditors to secure more loans.

For the second consecutive day, the rupee dived against the US dollar and closed at around Rs203 in the inter-bank market on Tuesday, indicating that the markets were still nervous about the real impact of decisions taken by the government to revive the economy.

But the finance ministry said that the government was taking all necessary measures to ensure macroeconomic stability in the country.

Published in The Express Tribune, June 8th, 2022.

 

[MenInG]

Moody’s Investors Service on Wednesday affirmed the B3 long-term deposit ratings of five leading Pakistani banks and changed their outlook to negative from stable as a fallout of its last week’s downgrade of Pakistan’s sovereign rating to negative.

These banks are Allied Bank Limited (ABL), Habib Bank Ltd, MCB Bank Limited (MCB), National Bank of Pakistan and United Bank Ltd (UBL). As part of the same rating action, “Moody’s has changed the outlook on the banks’ long-term deposit ratings to negative from stable”, it said in a statement.

The rating agency has also downgraded the long-term foreign currency counterparty risk ratings of ABL, MCB and UBL to B3 from B2. These ratings are now constrained by the government of Pakistan’s foreign currency country ceiling, which was lowered to B3 from B2.

“Today’s rating actions follow Moody’s decision to change the government of Pakistan’s B3 ratings to negative from stable on June 2, 2022, and also lower the country’s local and foreign currency country ceilings to B1 and B3, from Ba3 and B2, respectively,” Moody’s said.

The negative outlook on the sovereign is driven by Pakistan’s heightened external vulnerability risk and uncertainty around the sovereign’s ability to secure additional external financing to meet its needs.

According to the rating agency, the affirmation of the five Pakistani banks’ ratings reflects their stable, deposit-based, funding profiles and adequate liquidity. Around 12 per cent of assets are held as cash and interbank placements and an additional 45pc are invested in government securities, a large proportion of which can be repoed with the central bank in case of need.

Pakistani banks also display resilient profitability, with the 2021 systemwide return on assets at 1pc, while growing financial inclusion and other government initiatives are boosting lending opportunities. These strengths are balanced against the still high asset risks given the vulnerable operating and macro conditions, with the 2021 systemwide non-performing loans (NPLs) at 7.9pc of gross loans; and modest capital buffers, with the 2021 systemwide equity-to-assets ratio at 6.3pc.

Moody’s has downgraded five big Pakistani banks despite the fact that they have earned the highest profits in the year 2021.

Published in Dawn, June 9th, 2022

 

[Kianig89]

KSA officials lambasted the bhikari delegation reports in media and they have personal relations....

 

[Syed1]

Performance of PTI government as outlined by ministers of imported government itself

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Imran Khan ruined the country in last 4 years, PMLN leadership while presenting the economic performance of previous govt<br><br>PES Report FY21/22:<br>GDP growth: 5.97%<br>Agriculture records remarkable growth: 4.40%<br>LSM: 10.4% <br>Goods exports grew by 26.6%<br>Services exports grew by 17.1%</p>— Alina Shigri (@alinashigri) <a href="https://twitter.com/alinashigri/status/1534874069744685056?ref_src=twsrc%5Etfw">June 9, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[MenInG]

PTI Chairman and former prime minister Imran Khan on Thursday questioned why the current coalition government carried out a conspiracy to oust his party from power when it was clearly not ready to deal with the country's economy.

He made the remarks while talking about Pakistan's current economic situation, soon after the government unveiled the Pakistan Economic Survey (PES) 2021-22.

"If they (government) were not ready to economically stabilise the country, then what was the point of carrying out a conspiracy and ousting the government?

"If they are unable to take care of the country, of inflation and the economy, what was the hurry? You could have prepared and waited, the government had only a year-and-a-half remaining."

He reiterated that the current government was not concerned about Pakistan's well-being and was only concerned with getting rid of the corruption cases registered against them.

During his address, Imran also highlighted the achievements of the PTI government. He talked about the PTI's focus on creating dams in the country to solve Pakistan's water and energy issues.

He went on to say that the former PML-N government set up power plants that operated on imported fuel. When global prices soared, so did energy prices, he said, adding this also had an effect on foreign exchange.

He lamented that dams started by the PTI government were suffering as the credit rating of the Water and Power Development Authority (Wapda) had fallen, which meant that it was more difficult to take out loans.

"Our project for constructing dams is in danger. Money is required to construct them and we have no foreign exchange," he said. He also highlighted how Moody's, a credit rating agency, had downgraded Pakistan's outlook.

Talking about the PES, he said that it showed the PTI government's performance. However, the one thing it did not mention were the efforts we made to uplift the poorest segments of society, he added, talking about the Sehat Card, Kamyab Jawan Programme and Ehsaas Programme.

Touching on the Covid-19 pandemic, Imran said that at the start the then-opposition had called on him to impose a lockdown. "They criticised me and asked why I wasn't doing it [but] I knew that it would destroy our economy and that the common man would suffer."

He also criticised the government for the increase in inflation. Imran said that the first thing the government should have done after coming into power was to bring down inflation.

"In three-and-a-half years, we raised petrol and diesel prices by Rs55 and Rs50, respectively. They came and increased prices by Rs60 in the span of 10 days."

The people will now find out what inflation truly is, he said. He once again highlighted how the PTI government withstood pressure from the International Monetary Fund (IMF), saying that the party's leadership was destined to live and die in Pakistan.

All of their assets are abroad, they don't have a stake in Pakistan, he said while lashing out at the government. "In my opinion, I don't think any other government has caused this much inflation in such a short amount of time in our history."

I don't know how a normal household will budget their needs, he said. "They used to cry about inflation but we think it will increase three-fold," he added.

Meanwhile, PTI leader Hammad Azhar said the PTI had exceeded almost all its economic targets during the current fiscal year.

"It is a tragedy that the regime change operation was conducted against it. A team of comics was handed over the country that destroyed everything," he said.

 

[MenInG]

Pakistan Stock Exchange (PSX), which had won the title of Asia’s best performing stock market in August 2020, took a U-turn and became the third worst performing market in the region amid the boiling political temperature and melting economy.

Investors witnessed the wipeout of 16.27% (or Rs1.35 trillion) of investment at the PSX, as market capitalisation (the total value of all listed companies) slumped to a multiyear low at Rs6.95 trillion on Thursday, compared to the peak of Rs8.29 trillion in June 2021.

The petroleum refinery was the worst-hit sector in terms of losing market capitalisation. The sector’s capitalisation halved to Rs66 billion in March, compared to Rs146.56 billion at the end of June 2021.

The cement sector lost 24% of market capitalisation while automobile assemblers’ capitalisation went down 13% during Jul-Mar FY22, according to the Pakistan Economic Survey 2021-22.

PSX became the third worst performing market in Asia after the benchmark KSE-100 index dropped 5.1% (or 2,427 points) in the first nine months (Jul-Mar) of the outgoing fiscal year and closed at 44,929 points on March 31, according to the survey.

Read more at:

https://tribune.com.pk/story/2360873/psx-turns-asias-third-worst-performing-market

 

[wasim-fan]

Bitter pill has to be swallowed now. There is no way around. No economist can oppose the moves. In fact there is no choice. It is this or default.

 

[Bewal Express]

Bitter pill has to be swallowed now. There is no way around. No economist can oppose the moves. In fact there is no choice. It is this or default.

We were stable before the crooks took over,the economy was growing at 6%, exports were going up, remittances were going up and tax collection was at record levels, the rp was around 175. Can you tell us why these thugs were imposed on us?

 

[wasim-fan]

We were stable before the crooks took over,the economy was growing at 6%, exports were going up, remittances were going up and tax collection was at record levels, the rp was around 175. Can you tell us why these thugs were imposed on us?

That's why I said an economist would know. Party loyalists have their own compulsions. IMF loan is the only thing that can float this boat. GDP growth doesn't create liquidity. There are more tough measures to be taken to come out if this mess. I won't respond to IK's political talking points. He is doing what he should. That has nothing to do with fundamental s of economics.

 

[Bewal Express]

That's why I said an economist would know. Party loyalists have their own compulsions. IMF loan is the only thing that can float this boat. GDP growth doesn't create liquidity. There are more tough measures to be taken to come out if this mess. I won't respond to IK's political talking points. He is doing what he should. That has nothing to do with fundamental s of economics.

I gave you the fundamentals. They are all facts and your crooks are now trying to( and not succeeding)solving problems that they created. The solution to our problem is a very simple one- increase exports.

 

[Colorblind Genius]

I gave you the fundamentals. They are all facts and your crooks are now trying to( and not succeeding)solving problems that they created. The solution to our problem is a very simple one- increase exports.

lol dude - you are quite seedha saadha banda.

Do you truly believe these crooks are going to those IMF dollars on the country and on poor awaam? lol

 

[wasim-fan]

I gave you the fundamentals. They are all facts and your crooks are now trying to( and not succeeding)solving problems that they created. The solution to our problem is a very simple one- increase exports.

I don’t care for party politics. Right policy is right policy just as depreciation of rupee was right policy by PTI. You have your partisan compulsions.

So let me teach what fundamentals mean in economics. There are different criteria for economy. Growth is one and GDP is one of the factors. GDP = Spending ( Govt ) + Savings + exports - imports. It’s usually a good indicator of activity growth. But it has base effect. 6% growth is based on last year’s low growth ( effects of Covid ), so most countries growth are shooting up. But Pakistan has done well here.

Now we have liquidity which is effectively how much real money or reserves you have. Pakistan’s reserves on paper is $10bn. But effectively if you take out all the friendly loans it is $2 bn. This covers around 4 weeks of imports. PTI govt agreed terms for $6 bn loan from imf. And later refused to comply with the terms. IMF stalled loans. If IMF doesn’t provide the loan, Pakistan cannot go to any other body for loan. IMF will not provide loan unless subsidies from oil are removed because it’s stupid for country on verge of bankruptcy to subsidize 50% of fuel prices.

So in your echo chamber you can keep talking about 6% but that doesn’t change the fact that Pakistan is on verge of imminent bankruptcy. Turkey has had one of the best years of gdp growth but that doesn’t mean much when inflation is 70%.

 

[DRsohail]

[MENTION=1269]Bewal Express[/MENTION]. He tries to support the crooks and then says I dont care about party politcs.lol

 

[wasim-fan]

[MENTION=1269]Bewal Express[/MENTION]. He tries to support the crooks and then says I dont care about party politcs.lol

I think when you can't speak on fundamentals you have to get personal. Pakistan's bankruptcy will be for 220 million people to bear. Plus overseas Pakistanis who no doubt love their country. Stick to fundamentals of you can. Is IMF conditions avoidable or not ?

 

[DRsohail]

I think when you can't speak on fundamentals you have to get personal. Pakistan's bankruptcy will be for 220 million people to bear. Plus overseas Pakistanis who no doubt love their country. Stick to fundamentals of you can. Is IMF conditions avoidable or not ?

As I do not know much about the economy and I do not want to discuss that but about as I know about politics a bit, I will say this regime change was never needed and have made the things worse . From the history I can surely say that these crooks are not the solution to our problems and I would not say that I do not support anyone, I fully and wholeheartedly support PTI and IK.

 

[wasim-fan]

As I do not know much about the economy and I do not want to discuss that but about as I know about politics a bit, I will say this regime change was never needed and have made the things worse . From the history I can surely say that these crooks are not the solution to our problems and I would not say that I do not support anyone, I fully and wholeheartedly support PTI and IK.

I supported IK once. Either he was ill advised or he took wrong call or it was legacy issue, but for me his economic policy on fiscal front were shambolic.

To be clear, he is not out of govt because of his policies or inflation or any other factor. He is out for only one reason. The only reason that matters in Pakistan. Because Pakistan had much worse inflation in 2009-11 period.

 

[MenInG]

The coalition government on Friday proposed slapping Rs740 billion in additional taxes, targeting commercial banks, real estate, retailers, foreign assets of Pakistanis, commercial importers and consumers of petroleum products.

Of Rs740 billion, Rs300 billion will be generated through the single largest measure – increase in petroleum levy rate from Rs30 to Rs50 per litre –a measure that will stoke inflation in Pakistan.

The remaining Rs440 billion is proposed to be collected by amending the tax laws, income tax ordinance, sales tax act, federal excise duty act and customs act. The government has proposed a target of Rs7 trillion for the Federal Board of Revenue – up by nearly 17% or Rs1 trillion on the expected collection of this fiscal year.

“Increasing the petrol levy rate maximum limit from Rs30 per litre to Rs50 per litre does not mean that the government will start recovering the full levy from day one,” Finance Minister Miftah Ismail said. He said these rates would be gradually increased to achieve the Rs750 billion annual collection target of petroleum levy.

Where the government has imposed Rs440 billion taxes, it has also provided relief of Rs85 billion, bringing the net impact of the additional measures to Rs355 billion for the next fiscal year 2022-23.

“The salaried class will get a solace of Rs47 billion in the next fiscal year due to change in their tax rates,” Asim Ahmad, the chairman of Federal Board of Revenue, said while giving a briefing to the media persons after presentation of the budget in parliament.

The federal cabinet rejected two budget proposals - slaping 17% sales tax on CKD kits of mobile phones and increasing sales tax on textile sector outlets from 12% to 17%. The cabinet also turned down the proposal to increase tax rates on tractors and fertilisers, which may irritate the International Monetary Fund.

At least Rs316 billion worth of additional income tax measures have been proposed by the government for the next fiscal year. The FBR chairman said that the government has also given a relief of Rs49 billion in taxes, thus, the net impact of the income tax measures will be Rs267 billion.

Similarly, around Rs90 billion worth of sales tax and federal excise duty measures have been taken in the budget. The government has also provided relief of Rs30 billion under the GST and FED laws, bringing the net impact of measures to Rs60 billion.

The government has slapped Rs34 billion worth of customs duties in the budget but also gave Rs6 billion relief and the net impact of the duties will be Rs28 billion.

To a question whether Rs47 billion relief to the salaried class can adversely impact Pakistan-IMF talks for the revival of the bailout programme, the FBR chairman said that the discussions were ongoing with the IMF and the finance minister would be in a better position to explain the situation.

The IMF had demanded to increase the tax burden of the salaried class to collect around additional Rs123 billion from them. Instead, the government has enhanced the income tax annual exemption limit for the salaried class from Rs600,000 to Rs1.2 million and for business class from Rs400,000 to Rs600,000.

The maximum rate for the salaried class has been reduced from 35% to 32.5% and the numbers of slabs have been reduced from 12 to seven. For people earning from Rs1.2 million to Rs2.4 million, the government has proposed 7% rate, for up to Rs3.6 million, the new rate is 12.5%, for up to Rs6 million, the new rate is 17.5%, for up to Rs12 million annual income the rate is 22.5% and for above Rs12 million, the rate is 32.5%.

Income tax measures

A 2% Poverty Alleviation Tax has been slapped on high earnings of all those persons, including individuals and businesses, whose income is above Rs300 million.

READ Govt revises taxable income limit to Rs100,000

This single measure will generate Rs38 billion extra in the next fiscal year. The FBR had proposed charging this tax only for one year but the federal cabinet decided that the tax should continue in coming years.

The government slapped Rs53 billion additional taxes on banks by increasing their rates from 35% to 45% and on their investment in government securities. The FBR had proposed charging a 42% rate but the federal cabinet increased it to 45%.

The increase in tax rate on banks from 39% to 45% will give Rs28 billion while another Rs25 billion would be earned through adjustments in their advance to deposit ratios.

In a major move, the government proposed increasing Capital Gains Tax rates on immovable property by expanding the threshold of exemption from four years to six aimed at generating Rs40 billion extra revenues next year. If the plot is sold within one year, the CGT rate will be 15% that will reduce to 12.5% in the second year of holding, 10% in the third year, 7.5% in the fourth year, 5% in the fifth year and 2.5% in the sixth year.

In case a house is constructed and then sold, the CGT rate exemption will be available after four years and on construction of an apartment the exemption will be available after the second year.

The government has proposed 5% deemed income tax on immoveable property aimed at generating Rs30 billion revenue. Inland Revenue Policy member Afaq Qureshi said that the new tax will not be imposed in case a person has one property. The government has targeted unutilised residential, commercial, industrial plots and farm houses through the levy.

It increased the rate of advance tax on purchase of immovable property by non-filers of the income tax returns from existing 2% to 5% for Rs20 billion more revenue. Similarly, it increased the rate of advance tax on purchase and sale of immovable property by the filer persons from existing 1% to 2% for Rs45 billion additional revenues.

In yet another important move, the government imposed 1% Capital Value Tax on foreign immovable properties of Pakistani residents as well as their liquid foreign assets to fetch Rs18 billion more revenues.

The government doubled the Advance Income Tax on luxury vehicles registration of above 1,600cc category for Rs10 billion revenue. The rates have been doubled with the maximum rate increased to Rs500,000 for filers and Rs1 million for non-filers on registration of cars.

In a highly inflationary move, the government proposed increasing income tax rate at import stage on import by commercial importers of raw materials from 2% to 4% to generate Rs17 billion more in taxes.

The small- and medium-sized retailers have also been decisively targeted but through indirect means. In order to collect Rs30 billion more from them, the government has slapped fixed tax through their electricity bills.

The Rs3,000 per month tax will be charged on up to monthly electricity bill of Rs30,000, Rs 5,000 on up to electricity bill of Rs50,000 a month, Rs10,000 a month on up to electricity bill of Rs100,000, according to Qureshi.

The FBR also proposed to get powers to impose Rs50,000 per month for a special class of retailers like car dealers, sellers of precious watches as final tax liability on income and sales tax.

The government slapped 1% income tax on debit and credit cards transactions being conducted with foreign suppliers, originating from Pakistan or during foreign travel.

The government also targeted Private Funded Gratuity and Pension Schemes to collect Rs10 billion more to meet a condition by the IMF.

The government increased the excise duty rates on cigarettes to get Rs10 billion more and also increased FED on international business class tickets from Rs10,000 to Rs50,000 per ticket. FED on telecommunication services has been increased from 16% to 19.5%.

Customs

The government has reduced duties on import of dyes, packaging sector, farm machinery and flavouring powders. It has imposed 10% regulatory duty on import of petrol by replacing it with 10% customs duties, getting Rs30 billion additional in the next fiscal year.

Sales tax

The government abolished sales tax on seeds, solar panels, tractors, charitable hospitals and UN diplomats. The sales tax on import of machinery for power generation, mainly the China-Pakistan Economic Corridor power projects, has also been abolished.

Express Tribune

 

[Bewal Express]

[MENTION=1269]Bewal Express[/MENTION]. He tries to support the crooks and then says I dont care about party politcs.lol

You see it with all these losers. Obviously they are used to debating people just as thick as they are and not having to justify their positions.

 

[Bewal Express]

I don’t care for party politics. Right policy is right policy just as depreciation of rupee was right policy by PTI. You have your partisan compulsions.

So let me teach what fundamentals mean in economics. There are different criteria for economy. Growth is one and GDP is one of the factors. GDP = Spending ( Govt ) + Savings + exports - imports. It’s usually a good indicator of activity growth. But it has base effect. 6% growth is based on last year’s low growth ( effects of Covid ), so most countries growth are shooting up. But Pakistan has done well here.

Now we have liquidity which is effectively how much real money or reserves you have. Pakistan’s reserves on paper is $10bn. But effectively if you take out all the friendly loans it is $2 bn. This covers around 4 weeks of imports. PTI govt agreed terms for $6 bn loan from imf. And later refused to comply with the terms. IMF stalled loans. If IMF doesn’t provide the loan, Pakistan cannot go to any other body for loan. IMF will not provide loan unless subsidies from oil are removed because it’s stupid for country on verge of bankruptcy to subsidize 50% of fuel prices.

So in your echo chamber you can keep talking about 6% but that doesn’t change the fact that Pakistan is on verge of imminent bankruptcy. Turkey has had one of the best years of gdp growth but that doesn’t mean much when inflation is 70%.

Yes you do. So at least be honest. As soon as quoted the facts, you failed to acknowledge them because they showed you something you don't want to hear because you are a worshipper of the mafia and anything that shows how utterly useless the criminals are, hurts you.

PK economy was stable before your thugs combined with Bajwa and the Americans. That's just a fact. Kaptaan create the conditions to get our exports up by a 1/3, NS and Dar destroyed our exports and brought them to 23bn, which is the root of our problems with a sinking Rp and CAD. They created the environment where our exports were overpriced by 30% and underpriced imports by 30%.

 

[Bewal Express]

lol dude - you are quite seedha saadha banda.

Do you truly believe these crooks are going to those IMF dollars on the country and on poor awaam? lol

I hate dishonest debate. Here is a guy that avoids facts and pretends that he is neutral when we know he isn't.

 

[wasim-fan]

Yes you do. So at least be honest. As soon as quoted the facts, you failed to acknowledge them because they showed you something you don't want to hear because you are a worshipper of the mafia and anything that shows how utterly useless the criminals are, hurts you.

PK economy was stable before your thugs combined with Bajwa and the Americans. That's just a fact. Kaptaan create the conditions to get our exports up by a 1/3, NS and Dar destroyed our exports and brought them to 23bn, which is the root of our problems with a sinking Rp and CAD. They created the environment where our exports were overpriced by 30% and underpriced imports by 30%.

It's important for your own growth to start reading actual economists to know about economics. Politics is a different story. Everyone can build their narrative.

I will ask the same question as before. Does Pakistan need $6bn loan from IMF or not ?

 

[Syed1]

I hate dishonest debate. Here is a guy that avoids facts and pretends that he is neutral when we know he isn't.

I wonder what benefit these folks get by being closet patwaris. Are they ashamed of the party they support? Deep down do they know that PML-N and PPP have raped the country mercilessly and they don't want to be overtly seen supporting them?


I can't wrap my head around this closet patwarism. You will never see an IK/PTI supporter hiding the fact that they support them.

 

[Bewal Express]

It's important for your own growth to start reading actual economists to know about economics. Politics is a different story. Everyone can build their narrative.

I will ask the same question as before. Does Pakistan need $6bn loan from IMF or not ?

I am talking about the fundamentals? Did exports not rise by a 1/3rd under IK? Isn't the root of economics problems the disgracefully low exports? If NS and Dar hadn't destroyed our textiles with an inflated exchange rate (which btw the mafia are once again doing), we would have had exports of over 40bn just for textiles. This would have given us a base and then allowed us to develop other sectors. Our exports should be over $100 bn and imports should be also in that region. But the mafia have no interest except to kill, steal and Launder

 

[Bewal Express]

It's important for your own growth to start reading actual economists to know about economics. Politics is a different story. Everyone can build their narrative.

I will ask the same question as before. Does Pakistan need $6bn loan from IMF or not ?

As far as the IMF loan is concerned, if we need this loan then the question is for what? Do we need it for overseas trips, building swimming pools, bribing law makers and pointless adverts to buy off the media?

 

[Colorblind Genius]

I hate dishonest debate. Here is a guy that avoids facts and pretends that he is neutral when we know he isn't.

Then why are you debating him?
Supporters of haram khores and murders are just as worse.

 

[DRsohail]

As far as the IMF loan is concerned, if we need this loan then the question is for what? Do we need it for overseas trips, building swimming pools, bribing law makers and pointless adverts to buy off the media?

That's the point. and a very sad news for all pakistani doctors is the thugs of PMDC will be back. We are back to those robbers with typing machines, giving months for license renewal and DR Asim giving registration to substandard medical colleges .What a shame this country has no future when a criminal like Abdul Qadir patil is managing health system. But these patwari will not speak about it.

 

[DRsohail]

Then why are you debating him?
Supporters of haram khores and murders are just as worse.

That's what my view point is, a supporter of criminal is criminal(if he knows about him and still supports him).

 

[Bewal Express]

Then why are you debating him?
Supporters of haram khores and murders are just as worse.

Tbh, I don't know. Maybe to get it off my chest,to humiliate them for their dishonesty and ignorance

 

[Colorblind Genius]

Tbh, I don't know. Maybe to get it off my chest,to humiliate them for their dishonesty and ignorance

It’s not ignorance, it’s arrogance.
And it’s not dishonesty, it’s baighairuti.

 

[Abstraction1]

I supported IK once. Either he was ill advised or he took wrong call or it was legacy issue, but for me his economic policy on fiscal front were shambolic.

To be clear, he is not out of govt because of his policies or inflation or any other factor. He is out for only one reason. The only reason that matters in Pakistan. Because Pakistan had much worse inflation in 2009-11 period.

I'm at a loss for words as to what point you're exactly trying to make?

The economic breakdown is simple. PPP, under Benazir Bhutto, went to the IMF a record 3 times in 80s. This was unheard of at the time.

This was during the same time when corruption charges were levied at Benazir and her Husband, Zardari. It has since come to light the Bhutto-Clan own luxury properties across UK, Manhattan, Switzerland and Dubai.

PMLN are no different, in the sense they've amassed a personal fortune of billions across the various Sharifs's. Meanwhile they've doged and ducked jail time despite a series of criminal convictions.

No sane and honest person will care what you have to say. Your point, shared by other resident trls [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] are hollow and empty. Like you and other PDM supporters, you offer nothing but a gormless smile and hide whenever the integrity of the Bhutto/Sharif are questioned. The latter two have accumulated a considerable number of posts, yet you'll struggle to find any acknowledgement of the crimes, theft graft and corruption their are "leaders" for in any of these posts.

I'm amazed at the number of facts, anecdotes and stats the likes of @bewal_express and others have offered, and the likes of [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] have offered nothing of substance in return aside from empty rhetoric. Spineless doesn't come close to describing PDM and PMLN supporters.

This should be of no surprise though, we saw the hanfdul of protesters outside Jemima Khan's house (lol). It is worth noting their mentally stunted, abnormal and animalistic behaviour. Though this is to be expected of Cultists.

 

[Major]

I'm at a loss for words as to what point you're exactly trying to make?

The economic breakdown is simple. PPP, under Benazir Bhutto, went to the IMF a record 3 times in 80s. This was unheard of at the time.

This was during the same time when corruption charges were levied at Benazir and her Husband, Zardari. It has since come to light the Bhutto-Clan own luxury properties across UK, Manhattan, Switzerland and Dubai.

PMLN are no different, in the sense they've amassed a personal fortune of billions across the various Sharifs's. Meanwhile they've doged and ducked jail time despite a series of criminal convictions.

No sane and honest person will care what you have to say. Your point, shared by other resident trls [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] are hollow and empty. Like you and other PDM supporters, you offer nothing but a gormless smile and hide whenever the integrity of the Bhutto/Sharif are questioned. The latter two have accumulated a considerable number of posts, yet you'll struggle to find any acknowledgement of the crimes, theft graft and corruption their are "leaders" for in any of these posts.

I'm amazed at the number of facts, anecdotes and stats the likes of @bewal_express and others have offered, and the likes of [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] have offered nothing of substance in return aside from empty rhetoric. Spineless doesn't come close to describing PDM and PMLN supporters.

This should be of no surprise though, we saw the hanfdul of protesters outside Jemima Khan's house (lol). It is worth noting their mentally stunted, abnormal and animalistic behaviour. Though this is to be expected of Cultists.

Live in the country and you would know

 

[wasim-fan]

I'm at a loss for words as to what point you're exactly trying to make?

The economic breakdown is simple. PPP, under Benazir Bhutto, went to the IMF a record 3 times in 80s. This was unheard of at the time.

This was during the same time when corruption charges were levied at Benazir and her Husband, Zardari. It has since come to light the Bhutto-Clan own luxury properties across UK, Manhattan, Switzerland and Dubai.

PMLN are no different, in the sense they've amassed a personal fortune of billions across the various Sharifs's. Meanwhile they've doged and ducked jail time despite a series of criminal convictions.

No sane and honest person will care what you have to say. Your point, shared by other resident trls [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] are hollow and empty. Like you and other PDM supporters, you offer nothing but a gormless smile and hide whenever the integrity of the Bhutto/Sharif are questioned. The latter two have accumulated a considerable number of posts, yet you'll struggle to find any acknowledgement of the crimes, theft graft and corruption their are "leaders" for in any of these posts.

I'm amazed at the number of facts, anecdotes and stats the likes of @bewal_express and others have offered, and the likes of [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] have offered nothing of substance in return aside from empty rhetoric. Spineless doesn't come close to describing PDM and PMLN supporters.

This should be of no surprise though, we saw the hanfdul of protesters outside Jemima Khan's house (lol). It is worth noting their mentally stunted, abnormal and animalistic behaviour. Though this is to be expected of Cultists.

The only reason PTI govt came together and fell apart was the establishment. Inflation, bankruptcy, foreign policy disasters are just for the gallery. Historically this is nothing new. Anyone who challenges the establishment is out. IK thought he had the authority to appoint ISI chief, his reliable stooge. He discovered that he has the power but no authority. The authority lies with establishment. He discovered it hard way.

Hence he has now taken the strategy to divide the establishment and honestly he is doing very well. He will have very good chance next election imo.

 

[wasim-fan]

For those who want to learn about Pakistan's economics and economy, listen to him. Instagram and twitter can be deceptive. He is also PTI supporter but doesn't compromise on economic fundamentals.

https://youtu.be/z4p9Ww6z2JI

 

[Colorblind Genius]

For those who want to learn about Pakistan's economics and economy, listen to him. Instagram and twitter can be deceptive. He is also PTI supporter but doesn't compromise on economic fundamentals.

https://youtu.be/z4p9Ww6z2JI

And those who want to know more of haram khores and murderers in PPP and PDM, AND all their supporters, who should they listen to?

 

[Kianig89]

So a budget made with an IMF perspective what's their for common man in it

 

[offstump]

So this nakamma government forgot to book $7B of IMF loans into the budget? Lol, oh man what a bunch of morons. This is just parody, I mean they have to be doing this to make us laugh right?

 

[wasim-fan]

And those who want to know more of haram khores and murderers in PPP and PDM, AND all their supporters, who should they listen to?

Imran Khan. He is sufficiently informing everyone daily on it.

 

[Hextro]

So this nakamma government forgot to book $7B of IMF loans into the budget? Lol, oh man what a bunch of morons. This is just parody, I mean they have to be doing this to make us laugh right?

This isn't a joke or propaganda by some random person on Twitter these incompetent fools actually forgot to include IMF and Chinese loans in the budget. How is this even possible?

 

[MenInG]

The benchmark KSE-100 index fell sharply soon after trading opened on Monday, with analysts linking the bearish activity to the government increasing taxes on the banking sector in the budget for the next fiscal year.

According to the Pakistan Stock Exchange (PSX) website, the index shed more than 300 points shortly after trading began and lost 717.86 points, or 1.71 per cent, by 11:25am to fall to 41,296.87, compared to the previous session's close of 42,014.73.

Head of research at Intermarket Securities, Raza Jafri, said the stock market was under pressure today due to the index heavyweight banking sector being sharply down.

"This is because the banking sector has been saddled with a significantly higher tax rate," he said, adding that the new budget removes the tax credit available on investing in mutual funds and life insurance, which is also raising concerns over redemptions.

DAWN

 

[Kriketer]

Imran Khan. He is sufficiently informing everyone daily on it.

Which is great. I mean you can only refer to a criminal as a criminal so Imran Khan refrences on these corrupt criminals are on point.

 

[Kianig89]

This is a suicidal budget common man taxed banking sector taxed petrol diesel more tax electricity more tax gas more tax, construction items more tax, what is left for general public

 

[Syed1]

This is a suicidal budget common man taxed banking sector taxed petrol diesel more tax electricity more tax gas more tax, construction items more tax, what is left for general public

But taxes removed from importing food flavoring (as this benefits Finance Minister's own industry)

It seems that this government is on purpose taking steps so that people hate them more. Except ofcourse those people jinkay abu ki dehari lag gayi hai after 4 years.

 

[Colorblind Genius]

But taxes removed from importing food flavoring (as this benefits Finance Minister's own industry)

It seems that this government is on purpose taking steps so that people hate them more. Except ofcourse those people jinkay abu ki dehari lag gayi hai after 4 years.

Yep, these haram khores in the politics and many of their supporters have their tongues sticking out n dripping like dogs.

 

[Vatta]

I 've got to admit it, I was wrong about the PDM Government.

These guys know what they are doing. If further proof was required, here it is:

"Pakistan has made another request to China for the rollover of $2 billion worth of debt maturing soon but it forgot to book Chinese and International Monetary Fund (IMF) loans in the budget, underreporting foreign borrowing by $7 billion for the next fiscal year."

https://tribune.com.pk/story/2361158/govt-requests-2b-loan-rollover

 

[MenInG]

With two major fuel suppliers in dire need of liquidity to the tune of Rs2 trillion in three months, the government has started passing on the increase in electricity tariff by an average Rs13 per unit in quick instalments to win over an urgently needed bailout package from the International Monetary Fund (IMF).

Highly placed sources told Dawn that power distribution companies (Discos) have already been communicated directives to withdraw with effect from June 8 a subsidy of about Rs5 per unit introduced by former premier Imran Khan on Feb 28.

This will become part of the current month’s consumer bills that will also include an additional fuel cost adjustment of Rs4 per unit.

This will be followed by two equal instalments of Rs3.50 per unit each. These will become effective in July and August billing cycles, followed by the remaining Rs1 per unit adjustment later. This will clear the power-sector conditions of the IMF and help revive its programme suspended since February last year.

The Economic Coordina*tion Committee (ECC) of the cabinet, which met on Monday, approved the tariff rationalisation plan for the power sector as per determinations issued by the National Electric Power Regulatory Authority (Nepra) a few days back for increasing the base national power tariff by Rs7.91 per unit with an additional fiscal impact of Rs893 billion in 2022-23.

The meeting presided over by Finance Minister Miftah Ismail was requested by the Power Division to “pass on Rs7.91 per unit to consumers from July 1”. The targeted tariff differential subsidy (TDS) or cross-subsidy and tariff rationalisation for incorporation in the uniform national tariff was estimated at Rs184bn for Discos because the government has to protect consumers of the first 200 units per month. The Power Division also requested the application of the same rate to K-Electric Ltd to “maintain uniform tariff across the country”.

As an alternative, the Power Division suggested an increase of Rs6.25 per unit from July 1 and the remaining Rs1.66 per unit from October 1. But this was to result in the TDS of Rs231bn for Discos. The ECC, however, decided in line with the requirement of the IMF programme to increase the tariff by Rs3.50 per unit from July, followed by another Rs3.50 a unit hike in August and Rs1 a unit rise on October 1 — an increase applicable to KE as well. Top sources said this plan will immediately be cleared by the federal cabinet on Tuesday.

An official statement said that on a Power Division’s summary on tariff rationalisation, the ECC “approved the annual rebasing plan with certain modifications”. The ECC also directed the Power Division to recommend a subsidy reform adjustment for unprotected consumers, which was approved in December 2021 but not implemented.

Informed sources said the ECC was informed that the two major fuel suppliers – Pakistan State Oil Ltd (PSO) and Pakistan LNG Ltd (PLL) – had a gross liquidity requirement of about Rs1.97tr for the four months ending on Sept 30 to ensure 12 cargos of LNG a month and meet furnace oil requirements for the power sector. This included the requirement of Rs1.7tr of PSO for both furnace oil and LNG and Rs278bn of PLL for LNG to ensure about 800mmcfd supplies to Discos for power generation and 130mmcfd for K-Electric Ltd. The liquidity requirement surged because of record oil and LNG prices in the international market as a result of the Russian-Ukraine war and demand-supply constraints.

The meeting was informed that based on all other financial arrangements, there will still be an average shortfall of Rs52bn per month from June through September. But the additional requirement for June was Rs36bn and was urgently required, which leaves a requirement of Rs174bn for the first quarter of the next fiscal year.

The ECC approved Rs36bn in favour of the Petroleum Division to maintain the sustainability of the LNG supply chain as well as the import of petroleum products. The allocated amount will be released to Sui Northern Gas Pipelines Ltd (SNGPL) against its pending claims in respect of the cost of RLNG, which was diverted to the domestic sector.

The ECC also approved a total of 18 supplementary grants worth Rs260.6bn. This also included Rs50bn for payments of Chinese coal power plants for the purchase of coal to meet fuel requirements in ongoing peak demand. The ECC, however, deferred another summary for the creation of a revolving fund for Chinese power producers committed under the China-Pakistan Economic Corridor, which was never set up and has resulted in the accumulation of Rs340bn in power purchase dues.

The ECC also approved the payment of a supplementary grant of Rs130bn to the four provinces for ways and means advances because of Rs115bn overspent by Khyber Pakhtunkhwa. The budgetary allocations on this account included Rs77bn to Punjab, Rs39bn to Sindh, Rs31.3bn to Khyber Pakhtunkhwa and Rs17bn to Balochistan.

The ECC approved the extension in the Prime Minister’s Relief Package-2020 up to June 30 on all five essential items and allowed Ghee to be sold on all Utility Stores Corporation (USC) outlets throughout the country at Rs300 per kilogram from June 9 irrespective of the higher market prices above Rs450 per kilogram. The ECC further approved the allocation of funds to the tune of Rs3.44bn to USC through the supplementary grant.

The summary of the Ministry of Aviation for the payment of sales tax for leased aircraft on the basis of instalments was also approved. It was informed that Pakistan International Airlines Corporation Ltd (PIACL) was inducting four A320 aircraft on the dry-lease basis for 72 months. Due to financial constraints, PIACL was not in a position to pay general sales tax on the total rental value in lump sum. The ECC, after considering the upcoming Hajj and financial constraints of PIACL, approved the payment of the sales tax at 17pc ie Rs1.59bn on the total rental value of Rs9.38bn of the four aircraft on monthly instalments over the lease term starting from the date of the arrival of aircraft.

The Ministry of Communications presented a summary on the requirement of additional funds for the construction of Gilgit-Shandoor road, N-140. About Rs2bn was allocated in the federal budget of the outgoing fiscal year whereas the actual requirement of funds to acquire land and make payments of certified liabilities stood at Rs6bn. The ECC approved Rs4bn as additional funds.

The Petroleum Division submitted a summary for the enhancement of oil and gas production from TAL blocks vis-a-vis a provisional allocation of gas price. Keeping in view the shortage of gas in the country, the ECC conditionally allowed M/s MOL to commence production from Tal block namely Mamikhel South. TAL JV was given the 2012 policy price on a provisional basis till further decision by the government.

The ECC also approved a supplementary grant of Rs25.61bn for the Petroleum Division for the disbursement of price differential claims to oil marketing companies and refineries for the first fortnight of June and additional requirements of the previous fortnight.

Published in Dawn, June 14th, 2022

 

[Kianig89]

This candyland economist is hellbent on drowning Pakistan with the so called neutralls even animal feed price has increased manifolds there is burning inflation in the country with rates changing everybody on quotations vendors are writing rate applicable for one day,
850cc car to be taxed @10,000/- another kick in the teeth to struggling class

 

[Cover Drive Six]

Pakistan will default if the government does not abolish subsidies on petroleum products, Finance Minister Miftah Ismail has said, warning that the country's economy could be in a similar position as that of SriLanka if tough decisions were not taken.

 

[mazkhan]

Cut down on cups of tea says noon leagues aristotle ahsan iqbal.

What a joke the country has become and these imported muppets running the show.

 

[Xoib]

But taxes removed from importing food flavoring (as this benefits Finance Minister's own industry)

It seems that this government is on purpose taking steps so that people hate them more. Except ofcourse those people jinkay abu ki dehari lag gayi hai after 4 years.

Hehe unkay abbu are from the ilk of corrupt but competent afsaaran

 

[Kianig89]

Petrol=Rs.233/- Diesel Rs. 266/-
What will happen to working class

 

[Hextro]

Petrol=Rs.233/- Diesel Rs. 266/-
What will happen to working class

During the last 20 days PDM has increased petrol price by Rs 84 per liter while Diesel price has been increased by Rs 115 per liter.

"PDM is very competent."

 

[Vatta]

Those clowns who were screaming about costs, have suddenly lost their tongues.

These bitter fools reach their buckets of bile and are so one eyed, they don't need glasses, they need monocles.

 

[Kaddy]

Petrol=Rs.233/- Diesel Rs. 266/-
What will happen to working class

We urgently need another 'Mehngai Mukao March' from Maryam, Hamza and Bilawal.

 

[MenInG]

Prime Minister Shehbaz Sharif on Thursday promised the nation that his government would release "details soon" regarding the previous PTI regime's deal with the International Monetary Fund (IMF).

His message on Twitter comes a day after the government raised fuel prices by as much as nearly Rs60, with petrol reaching Rs233.89 — unprecedented in the country's history.

"Acutely aware of the impact that a fuel price hike causes. Govt is left with no choice but to raise the prices due to IMF deal that PTI govt signed. Will take the nation into confidence on the specifics of the IMF-PTI deal soon," wrote the prime minister.

"We will get out of these economic difficulties, InshaAllah," he added.

PM Shehbaz followed by criticising the past government's handling of negotiations with the global lender, saying: "I wonder whether those who struck the worst ever deal with IMF and took patently bad economic decisions have the conscience to face the truth. How can they pretend to be innocent when what the nation is going through is clearly their doing?"

"Details soon," he reiterated.


The surge in prices, although a highly unpopular move that has the nation fuming, had been a key demand of the IMF for a long time.

Finance Minister Miftah Ismail on Monday said that if the government does not abolish the subsidies on petroleum products by July (in effect raising the prices), then the country will default.

Speaking on Geo News programme “Capital Talk”, the finance minister said the IMF has "insisted" on abolishing the subsidies on petroleum products.

In a bid to bring economic stability and revive the stalled multi-billion-dollar IMF programme, the government had increased the price of petrol by a whopping Rs60 per litre last month.

Additional measures needed, says IMF
In July 2019, Pakistan had signed a 39-month, $6 billion Extended Fund Facility with the IMF. It received disbursements of about $3bn but further tranches were stopped when an agreement could not be reached with the previous government. The lender had expressed concerns over the status of some of its objectives, including fiscal consolidation.

IMF's resident representative on Monday said that additional measures will be needed to bring Pakistan's budget for FY2022-23 in line with the key objectives of its IMF programme.

The next tranche that Pakistan is to receive upon a successful review is $900 million, and a green light from the IMF would also open up other global funding avenues.

Pakistan urgently needs funds in the face of dwindling foreign exchange reserves, which have reached $9.2 billion — enough for less than 45 days of imports.

Pakistan unveiled a Rs9.5 trillion budget for 2022-23 on Friday, aimed at tight fiscal consolidation in a bid to convince the IMF to restart the much-needed bailout payments.

"Our preliminary estimate is that additional measures will be needed to strengthen the budget and bring it in line with key program objectives," Esther Perez Ruiz told Reuters.

Finance Minister Miftah Ismail told Reuters on Saturday that the IMF had expressed concerns about the budget numbers, including fuel subsidies, a widening current account deficit, and the need to raise more direct taxes.

He, however, added that his government was confident they could adjust the budget to bring the IMF on board and was hopeful of securing a successful review this month.

"Discussions with the authorities continue to obtain more clarity on certain revenue and spending items and allow for a full assessment," Ruiz said.

She said the fund was ready to continue to support the authorities’ efforts and in the implementation of policies to promote macroeconomic stability.

GEO

 

[ARK Rafay]

Petrol=Rs.233/- Diesel Rs. 266/-
What will happen to working class

Already struggling to ends meet. I'm seeing people even in my circle getting desperate as the salary is not enough to keep up with inflation.

I can only see this getting worse, I hope and pray for a miracle of sorts happen before drastic measures are taken by the people regarding their lives.

 

[wasim-fan]

There was no other way. This had to be done. IK will gain politically though. But Pakistan economy was on brink of collapse without IMF loan. They will do more.

 

[Kianig89]

There was no other way. This had to be done. IK will gain politically though. But Pakistan economy was on brink of collapse without IMF loan. They will do more.

The other way would have been to hang the crooks and start afresh

 

[offstump]

I think this economic crisis is a bit too much to handle for underpass project manager shehbaz.

 

[James]

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Sadly another wave of inflation is coming as Rupee devalues further - has fallen 15% (Rs 30) to the dollar since Imported govt of crooks came to power through US regime change conspiracy.</p>— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1537491251305807874?ref_src=twsrc%5Etfw">June 16, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[Kianig89]

Sunday March need a proper plan