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Profit BUDGET SEASON IN FULL SWING AS GOVT SCRAMBLES FOR PUBLIC SUPPORT
Rs 15.00 | Vol XIII No 339 I 8 Pages I Islamabad Edition
Thursday, 8 June, 2023 I 18 Zilqad, 1444
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PM Shehbaz calls high-level meeting to discuss relief measures for public with a tight budget on the cards PROFIT
ahmad ahmadaNI
UDGET season is in full swing in the federal capital with the Prime Minister calling a high-level meeting to discuss possible relief measures for the public in the days to come. The meeting, which has been tentatively scheduled for Thursday (today) comes only days after the government slashed fuel prices. With Finance Minister Ishaq Dar set to present the budget to parliament on Friday, all corners are abuzz with what the budget will look like. While the final shape it takes will become apparent on Friday, for now the government has approved an estimated 3.5% GDP growth target for its 2023-24 financial year budget. The figure has been deemed unlikely largely because of the rising difficulties the government faces on the economic front. Debt servicing is the most crucial element of this budget with Pakistan’s lenders breathing down its neck. Without any foreign exchange reserves to speak of, keeping the country from defaulting on its sovereign debts has proved difficult. With the need to find money and increase taxation, it is un-
likely that the budget will provide much relief to the public. With elections nearing, governments often depend on peoplefriendly budgets to shore up their vote bank. That is perhaps why the PM is trying to find measures to make things easier for a nation that is day by day facing growing inflation and economic hardships. There is quite clearly a sense of urgency coming from the Prime Minister’s office. In a ‘Most Immediate’ letter dispatched to the Secretary of Petroleum by the Prime Minister’s Office, a Deputy Secretary of the PM Office sought soft and hard copies of relevant information and documents pertaining to the meeting’s talking points, as well as minutes from the last two meetings on the subject. Additionally, the letter sought a copy of any previous presentation made and a list of participants. The letter emphasised the importance of timely submission of the required materials, stating that as per previous instructions, all necessary information must reach the Prime Minister’s Office at least two days (48 hours) before the scheduled meeting to allow for the Prime Minister’s perusal. It is worth mentioning that the general public has been grappling with skyrocketing prices of essential commodities and
high transport fares, despite the recent decrease in fuel prices. The lack of relief has been observed both in the refusal of transporters to reduce fares and in the failure of industrialists to lower the prices of their manufactured items. The discussion is expected to focus on devising effective strategies and measures to ensure that the benefits of reduced fuel prices are passed on to the public, providing them with much-needed relief. By addressing the non-compliance of reduced fuel prices by transporters and industrialists, the government aims to alleviate the burden on the common people, who are struggling to cope with the escalating costs of living. The meeting will likely explore various options to ensure that the benefits of reduced fuel prices are realised by the masses and help mitigate the adverse effects of inflation on their livelihoods. As the meeting approaches, anticipation builds for the measures and decisions that will be taken to bring about tangible relief for the public. The outcomes of this gathering will be closely monitored, as they have the potential to significantly impact the lives of ordinary citizens, providing them with much-needed respite from the economic challenges they currently face.
Govt misses targets for all key economic indicators in FY23 ISLAMABAD
Shahzad Paracha & Ghulam abbaS
The current government under the supervision of Prime Minister Shahbaz Sharif missed all important Economic indicators during the fiscal year 2022-23. According to the Finance division, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar will launch the Pakistan Economic Survey on Thursday June 08, 2023. The Economic Survey will provide details about the major socio-economic developments, performance, and economic trends of various sectors of the economy including Agriculture, Manufacturing & Industry, Services, Energy, Information Technology & Telecom, Capital Markets, Health, Education, Transport and Communication etc. Annual trends of major economic indicators regarding Inflation, Trade and Payments, Public Debt, Population, Employment, Climate Change, and Social Protections will also be described in detail in the economic survey.
Military top brass decides to tighten noose around ‘planners, masterminds of May 9 rebellion’ RAWALPINDI
Staff rePort
Top military commanders on Wednesday decided to tighten the noose around the “planners and masterminds” of those who mounted “the hate ripened and politically driven rebellion against the state and state institutions”. The statement came at the conclusion of formation commanders’ conference presided over by Chief of Army Staff (COAS) General Asim Munir at the General Headquarters in Rawalpindi. This was the first formation commanders conference chaired by General Asim since he was appointed army chief in November last year. The conference was attended by corps commanders, principal staff officers and all the formation commanders of the army. Unlike the past, the Inter-Services Public Relations (ISPR) issued an unusually detailed statement focusing mostly on the events unfolded after the May 9 violent protests. The most significant part of the statement was that the top military brass hinted at taking legal action against the leadership of Pakistan Tehreek-e-Insaf (PTI). “It has been further stressed that, while the legal trials of perpetrators and instigators have commenced, it is time that noose of law is also tight-
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COAS terms allegations of custodial torture, human rights abuses and stifling of political activities baseless
ened around the planners and masterminds who mounted the hate ripened and politically driven rebellion against the state and state institutions to achieve their nefarious design of creating chaos in the country,” according to the military’s media wing. The forum also resolved that endeavours by any quarter to create obstructions and stymie the conclusive defeat of ill design of inimical forces will be dealt with iron hands. Participants were briefed on the prevalent environment, challenges to security – both internal and external – and own operational preparedness in response to evolving threats, both traditional and non-traditional.
The forum was also briefed on the structural changes and niche technologies being incorporated to enhance operational preparedness besides up-gradation of essential logistic infrastructure corresponding to emerging security imperatives. The COAS reiterated, “Pakistan Army will remain committed towards their national obligations of safeguarding territorial integrity and sovereignty” of the country. He further said, “People of Pakistan and their deep bondage with the armed forces is and will remain central to all our undertakings and events of 25th May were a clear manifestation of same”.
Sources told Profit, that the country’s GDP stood at 0.3% in 2022-23 against the target of 5%. The government has set a 3.5% GDP target for next fiscal year 2023-24. The growth in the agriculture sector declined to 1.5% against the target of 3.9% in 2022-23. The government has set a 3.5% agriculture target for next fiscal year 2023-24. The growth in important crops remained negative 3.20% against the target of 3.5% in 2022-23. On the other hand, the livestock sector would remain at 3.8% in the current fiscal year. The government has fixed a 3% growth target for important crops and a 3.6% growth target of Livestock for the next fiscal year 2023-24. The growth in industry (manufacturing and Large Scale Manufacturing) remained negative as the government had set a 5.9% target of industry which was recorded at a negative 2.9%. Major industries performed at -7.98% against the target of 7.4%; the target for electricity, gas, water supply was 3.5%, and they showed an efficiency of 6%.
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WB projects two more dark years for Pakistan’s economic growth
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Report predicts GDP rising by 2pc in FY24 as opposed to govt’s projection of 3.5pc PROFIT INP
The forum concluded that “Unfounded and baseless allegations on Law Enforcement Agencies and Security Forces for custodial torture, human rights abuses and stifling of political activities are meant to mislead the people and malign Armed Forces in order to achieve trivial vested political interests”. “Hostile forces and their abettors have been trying hard to create societal division and confusion through fake news and propaganda but all such designs will continue to be defeated with the full support of the nation, InshaAllah,” the COAS asserted.
The World Bank has said the devastating effects of the August 2022 floods, policy uncertainty and shrinking foreign exchange resources have depressed economic activity in Pakistan as the top financial institution revised the country’s GDP growth for the current year by 1.6 per cent to 0.4pc. Moreover, it portrayed a bleak future in medium term for Pakistan, saying economic recovery in the next two fiscal years was expected to be anaemic – 2pc in 2023-24 and 3pc in 202425. The reason for this trend is stated to be the limited fiscal room the government has to support recovery from flood-related damages. In its latest report “Global Economic Prospects”, the World Bank said the growth rate would stay at 2pc in 2023-24 – next fiscal year – which is a 1.2pc reduction in an earlier estimate released in January this year. The latest projection comes just when the National Economic Council (NEC) on Tuesday set a growth target of 3.5pc for the coming fiscal year. While noting that the country is facing shortage of foreign reserves for importing food items and other goods, the global financial institution said agriculture output is likely to have contracted for the first time in two decades. The World Bank said exchange rate flexibility resulting in 20pc depreciation in Pakistani rupee since January had sharply increased in headline consumer price inflation to the level of 38pc – highest since records began in the late 1970s. At a time when many circles in the country have expressed their reservations and resentment over the high interest rate, the global lender said policy rate increases had not kept pace with expected inflation; consequently, real interest rates have turned deeply negative. However, it said the South Asian countries would again start witnessing a reduction in poverty after recent upward movement since 2020-21 – the time when COVID hit the world. But this decline, it warned, would not be as swift as previously expected, given the impacts of high inflation, slow recovery in employment, and withdrawal of pandemic-related food support.
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