GovT IMPoSeS RS415b New TAxeS IN buDGeT 2023-24 In partnership with
Profit
Sunday, 25 June, 2023 I 6 Zil Hajj, 1444
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NEW TAXES MEANT TO APPEASE IMF ISLAMABAD
SHAHZAD PARACHA
HE federal government has imposed Rs415 billion in new taxes in the 2023-24 budget in order to secure the International Monetary Fund (IMF) loan. While winding up the budget speech, Finance Minister Ishaq Dar on the floor of the National Assembly said that “Pakistan has agreed on Rs215 billion taxes after three-day parleys with the officials of the IMF to complete the 9th review under the EFF, pending due to the country’s external financing gap.” He also said that the government has fixed Rs 9.415 trillion as the new revenue target of the Federal board of Revenue. Earlier, the Finance minister on June 9, 2023 announced that FBR revenue target would be Rs 9.200 trillion in 2023-24. On the other hand, he said that the provincial share would go up from Rs 5.276 tr to Rs 5.390 tr in next fiscal year. Finance minister further said that Pakistan would bring down the running expenditure by Rs 85 billion, which would have no impact on the proposed development budget, the raise in salaries and pensions of the federal government employees. He said the government held talks
with the IMF with complete sincerity and assured the parliament that once things with the international lender were settled; all details would be made public by placing the agreement on the official website of the Ministry of Finance. He also said that the federal government’s total expenditure for 202324 is increased from Rs 14.460tr to Rs14.480 tr and pension estimate from Rs761 billion to Rs801bn. Similarly, he said that the subsidy estimate would
that we have made the super tax more progressive means that it will be imposed on all sectors or categories which were earlier confined to only 15 sectors. Now the FBI will charge 1 percent super tax on income ranging between Rs150 to 200 million, 2 percent on Rs200 to Rs 250 million, 3 percent on Rs250 to Rs 300 million, 4 percent on Rs300 to Rs 350, 6% on Rs350 to Rs 400, 8 percent on Rs400 to Rs500 and 10 percent on above Rs 500 million income across all the sectors or categories, as per the finance bill.
PM resolves to complete IMF loan programmme
ISLAMABAD: Prime Minister Shehbaz Sharif held a meeting with Managing Director of International Monetary Fund (IMF) Kristalina Georgieva in Paris on Friday and reiterated the resolve of Pakistan to complete the loan programme with the financial institution. The PM met the IMF chief before leaving for London. It was his third meeting with the IMF chief, on the margins of the summit of world leaders on a new financing pact. He appreciated the Managing Director IMF for taking into consideration the economic realities of Pakistan. He said, “Pakistan is determined to fulfil all its commitments.” He said Pakistan valued the assistance of the world in coming out of its severe economic challenges. The floods in Pakistan further increased the economic difficulties but despite that, the government gave relief to
SNGPL board removes Ali Javed Hamdani as Managing Director g
now be Rs 1.064 tr and grants would be Rs 1.405 tr, adding as a result of all these measures, the overall budget deficit would come down, with a cushion of Rs300bn [Rs215 billion taxes and Rs 85 billion reduction in running expenditures]. Sources said that the government has imposed additional 2.5 % tax on those individuals whose income is above 2.4 million annually. Similarly, the government has imposed 5 percent Federal Excise duty on Fertilizer besides one percent increase in tax on sale and purchase of property, sources added. Meanwhile, the Finance Minister said
Rs 15.00 | Vol XIII No 356 I 8 Pages I Islamabad Edition
CONTRACT TERMINATION COMES IN LIGHT OF SERIOUS ALLEGATIONS OF MALPRACTICES AND CORRUPTION ISLAMABAD
AHMAD AHMADANI
The Board of Directors (BoD) of Sui Northern Pipeline Limited (SNGPL) has taken a decisive step by terminating the job contract of Ali Javed Hamdani as the Managing Director (MD) of SNGPL. The termination comes in light of serious allegations of malpractices, corruption, and nepotism, which have plagued the company under his leadership. Sources revealed that Hamdani had been under investigation for various misconducts, including the misappropriation of funds. It is alleged that billions of rupees were syphoned off through projects executed at significantly higher costs. One such project, the highly controversial Rs 22 billion 270 km Bannu West 1 and Walid Gas Fields pipeline, has repeatedly raised concerns from the Oil and Gas Regulatory Authority (OGRA) due to its extended route and exaggerated financial expenses. Based on OGRA’s viewpoint and internal analysis, it was found that the project could have been completed by laying a 55 km line from CPF Lach to Bannu East, considering that an existing 10-inch transmission line and ROA already connected Daudkhel to CPF, instead of the current 270 km pipeline. These findings have further raised questions about the decision-making process and financial management under Hamdani’s tenure. Sources also highlight allegations of favouritism and nepotism in Hamdani’s appointment as MD of SNGPL, suggesting that political considerations played a significant role. They claim that his close association with former Prime Minister Imran Khan, as an Aitchisonian and Shaukat Khanum donor, secured his position despite years of unemployment prior to his appointment. Furthermore, it is alleged that Hamdani exploited official trips to Karachi, involving numerous officers, to justify personal visits while incurring substantial expenses on luxury accommodations and air travel.
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its people, he noted. He said it was the right of the people of Pakistan to receive relief as economic challenges caused a lot of unbearable pain to people. “We want a balance between relief to the people and economic reality,” he said adding bringing the economy back on the path of growth was imperative for meeting the targets set by the IMF. The PM said important measures needed to be taken for restoring the economy that had been battered in the four years of the previous government, adding revival of the economy would help in better achievement of targets of the IMF. He said as always Pakistan would fulfil its commitments and pledges made to the international community. The Managing Director IMF appreciated the resolve of the Prime Minister. STAFF REPORT
Policeman martyred as woman suicide bomber blows herself up in Turbat ISLAMABAD AGENCIES
At least one policeman was martyred and a woman constable sustained injuries in a suicide blast in the Turbat district of Balochistan, a senior official said on Saturday. The deputy commissioner of Ketch district said the woman suicide bomber blew herself up on Commissioner Road in the district. The vehicle of the security forces was also damaged in the explosion, he added. Balochistan Chief Minister Abdul Quddus Bizenjo condemned the Turbat blast saying the aim of terrorist’s incident is to halt the development of the province. “The objectives of terrorists will never succeed,” the CM was quoted as saying in a statement. He said the provincial government will ensure the welfare of the people and make efforts to end backwardness of the province.
“The determination and morale of the security forces cannot be lowered,” he added. Earlier in April this year, as many as four people — including two policemen — were martyred in a bombing targeting a police vehicle in Quetta’s city’s Shahrah-eIqbal area. Officials had told Geo News that at least 15 people were also injured in the blast which left several cars and motorcycles in the vicinity damaged. Those killed in the blast also include a minor girl. Civil Defence Director Rafu Mandokhail said that three to four kilos of explosives were used in the blast, while the explosive material was installed in a motorcycle. For the past few months, Pakistan has been gripped by a spate of terror attacks with even the country’s major urban centres such as Karachi and Peshawar under the radar of militants targeting security forces with the aim to deteriorate peace.
The National Security Committee (NSC) — in a meeting held in April — also decided to kick start an all-out comprehensive operation against militant outfits to root out the menace of terrorism from the country. The meeting was held in continuation with the NSC meeting after the terrorist attack on January 2, 2023, in Peshawar Police Lines, which claimed the lives of more than 80 people, mainly law enforcers. Meanwhile, security forces have been conducting operations against terrorists with the determination to eliminate terrorism from the country and resolve to strengthen the sacrifices of its soldiers. The Pakistan Institute of Peace Studies (PIPS), a think tank in Islamabad, stated that the number of terrorist attacks in the country have increased by 27% last year compared to 2021. At least 419 people were killed, while 734 were injured in 262 terrorist attacks last year.
BBDO bags first Cannes Glass Lion for Pakistan g
EBM’S GIRLS NEWSCASTER CAMPAIGNS BAGGED SECOND HIGHEST AWARD FOR AGENCY PROFIT
DANIYAL AHMAD
In a historic moment for Pakistan’s advertising industry, BBDO Pakistan, a subsidiary of the global advertising behemoth BBDO, secured the first-ever Cannes Glass Lion for Pakistan at the Cannes Lions Awards 2023 on 23 June. The accolade itself was
the Gold Lion, second only to the Grand Prix Lion in its category. The award-winning campaign was English Biscuit Manufacturers’ (EBM) Schoolgirl Newscasters, which aired in December 2022. “This award demonstrates EBM’s unwavering commitment to girls’ education and our country’s boundless creative potential,” stated Atiya Zaidi, Managing Di-
rector & Executive Creative Director of BBDO Pakistan. What is Cannes Lion, and what is the Glass Lion? Cannes Lions International Festival of Creativity (formerly known as the International Advertising Festival) is a global event for those working in creative communications, advertising, and related fields.
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Two shepherds martyred, another injured in unprovoked Indian firing along LoC: ISPR RAWALPINDI
STAFF REPORT
Two civilians were martyred and another critically injured when Indian forces opened “indiscriminate” fire on a group shepherds in Sattwal Sector along the Line of Control (LoC) on Saturday, Inter-Services Public Relations (ISPR) said. Following the attack, Pakistan summoned the Indian Charge d’ Affaires to the Ministry of Foreign Affairs Saturday here to register strong protest over the ceasefire violation committed by the Indian forces in Satwal Sector of the Line of Control (LoC). Condemning the deplorable targeting of innocent civilians by the Indian forces, it was underscored that such senseless acts are in clear violation of the 2003 Ceasefire Understanding, reaffirmed in February 2021. It was further underscored that targeting of civilians is contrary to human dignity and international human rights and humanitarian laws. The Indian side was urged to respect the Ceasefire Understanding, investigate the incident, and maintain peace along the Line of Control. According to ISPR, the military’s media wing, “The Indian Army in a display of its usual inhumane approach towards innocent Kashmiris, opened indiscriminate fire at 11:55 am onto a group of shepherds in Sattwal Sector.” “In sequel to Indian Army unprovoked firing today while adopting an inhumane approach towards innocent Kashmiris at Sattwal Sector, one more civilian has embraced shahadat while one remains critically injured. (Total two martyred and one critically injured),” it said in a subsequent statement. The ISPR identified the martyred as: Obaid Qayyum, 22, and Muhammad Qasim, 55. “Both shaheeds (martyrs) are residents of village Bara Dari Tetrinote, Tehsil Hajira, District Poonch,’ it added. The military’s media wing said that driven by a newly found geo-political patronage, Indian forces have embarked on a plan to take innocent lives to satiate their false narratives and concocted allegations. The statement further said while a strong protest was being launched with India and Pakistan reserved the right to respond back in a manner of its choosing to protect Kashmiris’ lives in the LoC belt. The ISPR “reminded” the Indian side to respect the basic human rights of Kashmiris, “particularly their inalienable right to their lands”. Last month, Indian troops had shot dead a 25-year-old inadvertent crosser from Azad Jammu and Kashmir (AJK). Earlier on May 15, Parveen Fatima, a 65-yearold widow from the Pandu sector of AJK’s Jhelum valley district, was also mercilessly killed by the Indian army after she had strayed across the LoC while picking some medicinal plants. US-INDIA JOINT STATEMENT: The ugly episode unfolded days after the United States and India issued a joint statement, calling on Pakistan to crack down on extremists that target New Delhi. The statement was issued as Indian Prime Minister Narendra Modi met US President Joe Biden on his visit to the US. It called for action against extremist groups based in Pakistan such as the banned Lashkar-e-Taiba and Jaish-e-Mohammad. It said: “They (Biden and Modi) strongly condemned cross-border terrorism, the use of terrorist proxies and called on Pakistan to take immediate action to ensure that no territory under its control is used for launching terrorist attacks.” A day ago, the Foreign Office (FO) had termed the statement “misleading and unwarranted”, saying that the “reference is contrary to diplomatic norms and has political overtones”. Responding to media queries, FO Spokesperson Mumtaz Zahra Baloch had said, “India, in addition to being a statesponsor of terrorism, habitually uses terrorism bogey to deflect attention from its brutal repression of Kashmiri people in Indian Illegally Occupied Jammu and Kashmir, and maltreatment of its minorities.” She had further asserted that the joint statement failed to address the “key sources of tension and instability in the region and to take cognisance of the grave human rights situation in the Indian Illegally Occupied Jammu & Kashmir.’
Pakistan fishing for LNG suppliers again. But why does no one want to bite? g
LNG PRICES DECLINE INTERNATIONALLY BUT PAKISTAN STILL FACING PROBLEMS PROFIT
UROOJ IMRAN
The news stories hit like clockwork every year. As the winters approach, different industries start complaining that there is not enough gas to run their operations resulting in reduced output. Countrywide blackouts ensue. Gas load shedding for domestic consumers makes the headline and there is a sense of doom and gloom. Whether this will happen again this year became a question last week after it emerged that Pakistan failed to receive any bids in its latest attempt to procure liquified natural gas (LNG) from the spot market. Pakistan has not tried to procure LNG for a while. So what gives now, and why is the country finding it hard to buy the product? The Pakistan LNG Limited (PLL), a government subsidiary that manages the entire
LNG supply chain from procurement to distribution to the end user, issued a tender on June 13, seeking six cargoes for delivery in October and December. The quantity sought was 140,000 cubic meters of LNG per cargo. The tender's outcome was keenly watched as it was issued almost a year after a previously unsuccessful attempt in July 2022 when the PLL received zero bids. However, shortly after the new tender closed on June 20, the PLL shared that once again, no bids were received. And here arose the concerns. Pakistan relies heavily on LNG for fulfilling its energy needs; nearly a third of its power is generated using Regasified LNG (RLNG). However, following Russia's invasion of Ukraine on February 24 and the resulting sanctions, European countries started buying out LNG cargoes on fears of loss of Russian supplies.
Since Russia was sanctioned, the global supply of gas was affected and European countries rushed to plug shortages by procuring it from suppliers elsewhere. This not only created a global energy crisis, threatening the energy security of countries such as Pakistan but also crowded them out of the spot market. Due to the increased demand, prices in the Asian spot market went up to a record high of $70 per million British thermal units (mmBtu) in August 2022. Coupled with the rapidly devaluing rupee and low foreign exchange reserves, Pakistan either failed to attract any bids or the ones received were too expensive for the cash-strapped nation. Between March 2022 and June 2023, Pakistan issued 11 tenders for procuring LNG from the spot market, the last of which is set to close on July 14. Pakistan received seven bids for a tender
issued in March 2022, the lowest of which was $33.53 per mmBtu. It received 10 bids for the next tender in April, with the lowest priced at $24.15 per mmBtu. However, the number of bids started declining after that, with the country receiving only one bid for a tender issued in May. It failed to attract any bids in another tender, this time in July. The country also tried to procure LNG for a sixyear period via a tender issued in October last year but again failed to attract any bids. While Pakistan procures LNG from the spot market to cover its energy needs, the country has two long-term deals with Qatar, totaling 6.75 million metric tons per year, and an additional contract with ENI for 0.75 million metric tons per year. Amid the volatile global situation and its worsening economic crisis, ENI canceled the delivery of scheduled cargoes to Pakistan multiple times. The company has
a 15-year deal with Pakistan to deliver one LNG cargo a month till 2032. However, it canceled deliveries and said disruptions were caused due the supplier not fulfilling its obligations. While ENI claimed it did not benefit from the situation, Bloomberg cited a report from two non-profits — Sourcematerial and Recommon — which stated that the company earned $ 550 million by canceling scheduled cargoes between late 2021 and early 2023, and reselling them. These shortages, combined with the surge in oil prices due to the Russian invasion, exacerbated Pakistan's energy crisis. Power production was affected, tariffs and inflation increased and there was prolonged loadshedding. However, as the global supply started stabilizing later, the prices declined with the Asian spot market rate falling below $10 mmBtu.
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