Poultry farmers seek help
Poultry farmers across Pakistan are facing hard times as rising input costs, especially poultry feed, are becoming unbearable for them.
Many farmers, particularly those engaged in small-scale farming, are bound to shut down their businesses, which will impact not only their livelihood but also the local economy in their areas.
“While the poultry industry holds tremendous potential, it faces several hurdles that hinder its progress,” said Waseem Malik, a medium-scale poultry farmer from central Punjab. Rising prices of poultry feed, largely driven by volatile international markets for soybean and maize, have increased the production cost for local farmers. “The devaluation of Pakistani rupee has exacerbated their woes, making imported feed ingredients even more expensive,” added Malik.
Diesel price goes up for first time
The government has increased the price of diesel by Rs5 per litre, while the rate of petrol has been kept the same for the next fortnights, according to an official announcement. This is the first hike in the prices of petroleum products in three months, which have been constantly going down due to the falling prices in the international market. In a late-night announcement on Tuesday, the Ministry of Finance said the ex-depot price of high-speed diesel (HSD) was set at Rs251.29, up by Rs5 per litre from Rs246.29 per litre. The petrol price was kept unchanged at Rs247.03 per litre for the next fortnight.
Banks may have to pay extra Pkr 197 bn
A tax advisory firm has estimated that banks will have to pay an additional income tax of Rs197 billion on excessive lending to the federal government but the financial institutions are lobbying to get tax exemption.
In its Economy Alert note, Tola Associates – a tax and investment advisory firm – said that 27 domestic and foreign banks having operations in Pakistan would have to pay Rs197 billion in additional income tax on account of advance-to-deposit ratio (ADR).
The banks’ overwhelming balance sheets are invested in government debt, although the law states if their lending to private sector falls below a certain threshold, they will have to pay 10-15 percent additional income tax.
Tola Associates has worked out the additional tax liability on the basis of published audited financial statements of banks for tax year 2024 and projected their tax liabilities for 2025.
In IT exports envoy sees potential for tenfold rise
Pakistan’s participation in Gitex Global 2024, the world’s largest IT and communication exhibition, has garnered substantial attention as companies are receiving a positive response.
Pakistan is being officially promoted as a key tech destination and a special conference has been organised to boost connectivity and cooperation with the country’s information technology sector. A total of 24 companies have set up stalls at the Pakistan pavilion. In addition to these, several other major Pakistani companies and organisations are participating individually.
Pakistan’s Ambassador to the United Arab Emirates (UAE) Faisal Niaz Tirmizi visited the pavilion and praised the country’s participation. Speaking to the media, he noted that Pakistan’s IT exports to the UAE had surged 34 percent since last year’s Gitex, underscoring the exhibition’s importance. Alongside 24 Pakistani companies, firms from the US, the UK, Canada and the UAE with Pakistani roots are also showcasing their innovations this year.
With Texas Pakistan eyes stronger economic ties
Pakistan’s Ambassador to the United States, Rizwan Saeed Sheikh, engaged with the leadership of the state of Texas, local business leaders, and the Pakistani diaspora in Dallas and Houston to further strengthen the Islamabad-Washington relationship, according to a press release from the Pakistani embassy.
“There are immense opportunities to forge a strong partnership between Pakistan and Texas in diverse fields, including IT, agriculture, textiles, and sports,” Sheikh said as he embarked on a three-day visit to Texas on Monday.
“Our diaspora in the United States can play a pivotal role in strengthening economic ties with the US while also helping their counterparts capitalise on economic opportunities in Pakistan,” he added.
Retailers warn strike
The Grocery Merchants Association has threatened to observe a complete strike in Rawalpindi and across Punjab against the forced implementation of official rates of grocery items.
The association has criticised the lack of a mechanism for setting market prices of essential grocery items, including pulses, white chickpeas, sugar, flour, and ghee. The merchants have been opposing the official mandate for the last few months to sell food items at retail prices Rs50 less than the wholesale rate.
Traders have threatened to halt the sale of all items at official prices permanently and demanded a meeting with the Punjab chief minister to address the ongoing concerns.
Trade deficit with nine SCO countries widens 41pc
Pakistan’s trade deficit with nine Shanghai Cooperation Organisation (SCO) countries widened by over 41 percent to $11.703 billion in FY24 from $8.298bn in the preceding fiscal year due to a sharp increase in imports from China, Russia and India.
The heads of state from SCO nations are in Islamabad to attend the 25th summit, which aims to strengthen multilateral cooperation among member states by focusing on major topics like terrorism, economic cooperation, and climate change.
Pakistan’s exports to the SCO countries, especially China, experienced a significant growth in FY24. However, exports to other countries continued to decline, according to data compiled by the State Bank of Pakistan.
The value of Pakistan’s exports to the nine SCO countries — China, India, Iran, Kazakhstan, Kirghizstan, Russia, Tajikistan, Uzbekistan, and Belarus — rose 32.4pc to $3.076bn in 2023-24 from $2.323bn in FY23.