Reduction in energy tariff demanded
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded that the government immediately reduce the interest rate to 12 percent.
Electricity price should be reduced to 9 cents per unit for all industries while contracts with the independent power producers (IPPs) should be revisited, it said.
FPCCI Regional Chairman and Vice President Zaki Aijaz, while addressing a press conference at the FPCCI Regional Office on Wednesday, underscored that cross-subsidies of Rs240 billion should be eliminated and taxes on the retail sector should be collected at the final stage.
He stressed that the concept of non-filers of tax returns should be abolished with stricter conditions for such people.
The starting of an end to free trade?
“A lesson for our ‘free trade’ wannabes,” commented Mujtaba Piracha, Pakistan’s former ambassador to the World Trade Organisation (WTO) in Geneva, on LinkedIn regarding the new tariffs unveiled by the United States on $18 billion in Chinese imports of electric vehicles (EVs), solar cells, battery components, legacy semiconductors and other clean energy products last month.
Piracha didn’t need to add anything further; his brief remark adequately captured the reality of free trade and the direction the new evolving international trade order is headed in as the US becomes more and more protectionist.
Growing informal economy
The growing informal economy is a major concern of policymakers trying to boost tax revenues and widen documentation primarily through administrative measures.
Development economists, analysts, and stakeholders suggest an alternate path to documentation: the introduction of incentivised voluntary compliance by enterprises in the informal sector, which has worked well in other countries.
Hopes are pinned on the fact that the required measures in this direction will be initiated in the budget for fiscal year 2025. The government has been mulling on ways to spur the growth of small and medium-sized industries, including stepping up affordable bank financing to stimulate investment in the sector.
Shehbaz in China pledges full support
Emphasising the need for business-to-business cooperation between Pakistan and China, Prime Minister Shehbaz Sharif on Wednesday assured Chinese investors and their investment-oriented projects of all-out facilitation and foolproof security in Pakistan.
Addressing the Pakistan-China Business Forum in Shenzhen on the second day of his China visit, the PM highlighted bilateral trade and investment potential, especially in key sectors including transfer of Chinese technology, industry and partnership in IT, agriculture, mining, steel, textiles and renewable energy.
ADB accepts $250m expensive loan
The Asian Development Bank (ADB) on Wednesday approved a $250 million expensive loan to support policies to shift financing of major projects from the budget to private sector amid displeasure on the part of Prime Minister Shehbaz Sharif over the lack of progress on private-funded schemes.
The board of the Manila-based lending agency approved the release of first tranche of the $500 million expensive and relatively short-term budget support loan for Pakistan. The loan has been approved with the name of Promoting Sustainable Public-Private Partnership in Pakistan.
In an official communication, the ADB said that the policy-based loan would help the government of Pakistan drive sustainable investment in infrastructure and services through public-private partnerships (PPPs).
PIA bidder proposes reinvestment of proceeds
In an attempt to expand footprint into new sectors of the economy including aviation and corporate farming, renowned businessman Arif Habib has proposed that the government should reinvest the proceeds from the privatisation of Pakistan International Airlines (PIA) back into the national carrier, as the state will continue to hold a 49 percent stake.
Arif Habib Corporation is part of one of the six consortiums which have been pre-qualified for offering bids for the airline sometime in August 2024.
Telecom companies barred from sharing information
The government has barred telecom companies from sharing information with any individual, entity or organisation about lawful interception between the Pakistan Telecommunication Authority (PTA) and the operators of telecommunication systems.
Sources told that the Information Technology and Telecommunication Division had approached the government to maintain confidentiality for the provision of information regarding operations, functions and installations related to lawful interception.
Auto industry seeks tax rationalisation
Experts have expressed grave concern about the plight of the struggling auto industry and its future outlook, while appealing to the government to control the massive influx of imported vehicles through rationalising taxes.
They said such a move will revive the local market, protect the interests of local car manufacturers and ensure the sustainability of livelihoods.
“The auto industry has urged the government to look into it, while taking measures in the upcoming budget for supporting the industry,” Indus Motor Company (IMC) Chief Executive Ali Asghar Jamali said while talking to a group of journalists on Wednesday.
Confidence in Pakistan’s economic direction rises from 12pc to 18pc
Pakistanis who believe the country is heading in the right direction increased from 12 percent to 18 percent, according to a latest Consumer Confidence Index Survey report by market researchers Ipsos.
The survey, conducted through CATI interviews with over 1,000 participants from all provinces, Islamabad Capital Territory, Gilgit-Baltistan, and Azad Jammu and Kashmir, shed light on various aspects of consumer confidence and economic sentiment.