No choice but to revive IMF: Mifta
Former-finance minister Mifta Ismail has warned that Pakistan current economic crisis has left no alternative but to expedite an agreement with the International Monetary Fund (IMF).
Ismail made these remarks during the 2nd Pak–German Business Gathering of 2023 held at the Consulate General of the Federal Republic of Germany in Karachi. The event was organised by the Pakistan Desk of the German Industry and Commerce (AHK) in collaboration with the Diplomatic Missions of the Federal Republic of Germany.
Addressing the German-Pakistan Business Community, Dr Rüdiger Lotz, Consul General of the Federal Republic of Germany in Karachi, emphasised Pakistan’s potential as a business destination for German companies. Despite the current challenges, he expressed confidence in the long-term prospects for bilateral trade.
Circular debt shoots up by Pkr 500 bn
The parliamentary Public Accounts Committee (PAC) was informed on Wednesday that circular debt in the gas sector increased during the current year but efforts were afoot to bring it down.
The committee which met with its chairman Noor Alam Khan in the chair, also sought details of perks provided to the top government functionaries including the prime minister, ministers as well as the judges of the superior judiciary.
PAC received a briefing from the petroleum secretary. He told the committee that the circular debt of the petroleum sector was Rs1,200 billion in the last year, which had now risen to Rs1,700 billion.
“A plan has been prepared to get rid of the circular debt of the petroleum sector,” the secretary said. “The Ministry of Finance and the Ministry of Energy are working on it,” he added.
Energy supply to Karachi may be cut off
An official told a parliamentary panel on Wednesday that electric supply to Karachi might be shut down if the federal government did not pay subsidy to K-Electric (KE), a private company that supplies power to Pakistan’s economic hub.
“The federal government provides a subsidy of Rs10 to Rs20 per unit to K-Electric to maintain the tariff differential,” the power secretary during a meeting of the review and implementation committee of the Public Accounts Committee (PAC).
He said the K-Electric would have to be paid off its tariff difference subsidy immediately. The official said the National Transmission and Despatch Company (NTDC) had to pay Rs20 billion as markup to K-Electric. He said this amount had now swelled to Rs150 billion.
Revenue commission seeks tax registration
The government’s Revenue Commission has recommended compulsory tax registration of buyers and sellers of properties and also sought to link capital gains tax exemption with disclosure of the assets at the time of its purchase to capture the most undocumented sector.
The Reform and Revenue Mobilisation Commission (RRMC) has also recommended that all the benami properties be taxed in the year they are discovered, removing the current time limit on such actions to combat tac evasion.
Kachhi canal extension project finishes in few months
The Kachhi Canal Extension Project, currently being constructed by WAPDA in District Dera Bugti of Balochistan, is nearing completion and is expected to be finished in the next few months.
Upon completion, the project will provide irrigation to an additional 30,000 acres of land in the project area. As a result, the total command area of Kachhi Canal Phase-I will expand to 102,000 acres.
During a visit to the site, the project management team briefed Chairman WAPDA, Engr Lt Gen Sajjad Ghani (Retd), about the progress of the project.
GSMA proposes reduces telecom taxes
The Global System for Mobile Communications Association (GSMA) has proposed a reduction in taxes on telecom customers to increase the affordability of digital services.
With overall taxes of 34.5 percent on telecom users, including 15 percent withholding tax (WHT) and 19.5 percent general sales tax (GST), Pakistan is one of the highest taxed telecom markets globally.
It is pertinent to note that the mobile industry makes a significant economic and social contribution. It plays an important role in driving digital transformation as mobile technology will be critical to achieving the Digital Pakistan Vision.
Business community to broker peace in historic political crisis
Pakistan’s business community has stepped forward to play a crucial role in bridging the gap between political stakeholders, aiming to end the prolonged deadlock and restore economic and business activities that have been severely affected.
With the nation’s economy and the people’s well-being at stake, prominent figures from the business sector have initiated efforts to engage key state actors, including Chief of Army Staff General Asim Munir, top politicians, and leaders from various political parties including the Pakistan Tehreek-e-Insaf (PTI), Pakistan Muslim League-Nawaz (PML-N), and Pakistan People’s Party (PPP). Led by former chairman of the All Pakistan Textile Mills Association (APTMA), Gohar Ejaz, the country’s influential business leaders have held multiple internal meetings in recent days to devise a comprehensive strategy. Notable figures in the group include seasoned businessmen and stockbrokers Arif Habib and Aqeel Karim Dehdhi.
Large-scale smuggled steel infiltrating Pakistan
In a startling revelation that has sent shockwaves through Pakistan’s local steel industry, it has come to light that an alarming influx of large-scale smuggled steel has been infiltrating the country’s borders with official patronage, perpetuating a devastating blow to the domestic manufacturing sector and incurring colossal financial losses to the national exchequer on an unprecedented scale.
The Pakistan Association of Large Steel Producers (PALSP) issued a grave warning about the future of the country’s steel industry as the relentless smuggling operations continue to wreak havoc.