Foreign investors meet Finance Minister
A delegation of international investors, led by Ahmad Bozai, MD of Citibank Pakistan, called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday to explore investment prospects and economic dynamics in Pakistan. The finance minister welcomed the delegation and assured them that the government is committed to fostering an enabling business environment in Pakistan.
International monetary fund to vet budget before cabinet
The government is set to deliberately violate an Act of Parliament by not securing the approval of the federal cabinet for the Budget Strategy Paper until the International Monetary Fund (IMF) gives its nod to the fiscal policy.
This decision indicates that the finance ministry has prioritised the IMF bureaucracy over the elected representatives of the people, who sit in the federal cabinet and the standing committees of Finance of the National Assembly and the Senate. Sources within the Ministry of Finance informed that the government has shelved a plan to obtain approval for the Budget Strategy Paper 2025-27 by May 10th – the statutory deadline outlined in the Public Finance Management Act.
For refinery upgrade ministry seeks extension
The planned upgrade of existing oil refineries has been dealt a blow owing to the failure to sign implementation agreements as the Petroleum Division is seeking an extension in deadline for another six months.
In this respect, the division has prepared a summary for taking approval of the Cabinet Committee on Energy (CCOE).
Value addition declines food waste
Value addition has the potential to reduce raw food wastage in the country by 40% and trigger a revolution in the agriculture sector. It plays a vital role in agriculture, horticulture, and floriculture trade. Progressive farmers, as well as horticulture and floriculture farm owners, should focus on adding value to agricultural commodities with the aim of exporting them. Approximately 40% of raw food, including vegetables, wheat, dry fruit, bananas, mandarins (Kinnow), mangoes, apples, dates, and other fruits, goes to waste due to their short shelf life, which typically lasts for only 24 hours in Pakistan.
Government considers slashing solar power prices
As the government considers slashing solar power prices to nearly half at Rs11 per unit for individual purchases via net metering, a research study suggests integrating batteries with renewable energy projects. This integration would store surplus generation during low demand hours and utilise it at peak hours, estimated at 6 to 8 cents per unit.
Utilising stored energy from batteries during peak load hours could significantly reduce consumers’ energy bills. Power consumption from the national grid has surged to over Rs60-70 per unit, including capacity payments and taxes.
According to a statement on the study titled “Integrating Battery Storage with Renewables: A Techno-economic Analysis (on grid and off-grid solutions),” jointly conducted by Renewables First (RF) and the Policy Research Institute for Equitable Development (PRIED), battery energy storage systems (BESS) combined with solar and wind power could decrease electricity prices to as low as 6-8 cents per unit. Additionally, they can provide electricity to communities living far off the national grid.
The study reveals that Pakistan’s electricity demand is highly variable, with peak demand consistently increasing over the past decade while the base demand sees minimal growth. Ignoring this fact when planning electricity generation has resulted in an installed generation capacity nearly double the utilised capacity. This disparity burdens consumers and prompts reflection on decision-making and policy formulation.
Axe declines on another senior taxman
The Federal Board of Revenue (FBR) has agreed in principle to suspend another senior taxman, who sought adjournment in a case involving Rs456 million in tax payments, for allegedly demonstrating lack of commitment to resolving tax concerns, Dawn has learnt through reliable sources.
They said FBR Chairman Zubair Tiwana forwarded the name of Sahibzada Abdul Mateen, chief commissioner of Medium Taxpayers Office (MTO), Karachi, to Prime Minister Shehbaz Sharif for suspension or removal from his current position.
Mr Mateen will become Inland Revenue Service’s (IRS) second senior officer after Yousif Hyder Shaikh, chief commissioner-IR, Large Taxpayers Office, Islamabad, who was suspended with immediate effect for 120 days on April 23 on the same charges of seeking adjournment in a case in the Islamabad High Court.
Country’s sovereignty in dire straits
From time to time, the issue of asserting sovereignty to conduct independent trade and economic policies to propel progress has surfaced more in the form of rhetoric than substance as low-commodity productivity fails to deliver export-led growth.
This has created external sector vulnerabilities, leading to lacklustre inflows of foreign direct investment and loans.
Pakistan needs to build “its own credible reform path, making it worth the investment by external finance,” according to Oxford University’s professor of economic policy Stefan Dercon.
He further explains, “It can build a legacy for itself by prioritising development: a legacy that creates a bright economic future for Pakistan.”
Economic crisis deepens amid political unrest
Industrialists and analysts express growing concerns as political protests and wheat farmer demonstrations escalate, casting shadows over business activities and economic stability.
The business community, already beset by high inflation and interest rates, feels that political issues overshadow economic priorities.
“A rising tide of unrest and protests against the government has cornered the economy, making it difficult for businesses to operate effectively,” one businessman stated anonymously, reflecting the prevalent fear of backlash for speaking out.
Some traders and industrialists note that persistent political disturbances have dashed hopes for stability after visible economic improvements compared to last year.