In partnership with
Profit GOVT ‘BYPASSES’ CABINET ON RS1.5 TRILLION TAX MEASURES Saturday, 15 June, 2024 I |8 Zil-Hajj, 1445
T
g
Rs 20.00 | Vol XIV No 346 I 8 Pages I Islamabad Edition
PM SHEHBAZ ‘APPROVES’ FINANCE BILL'S PRESENTATION IN PARLIAMENT WITHOUT INPUT FROM CABINET MINISTERS PROFIT
MONITORING DESK
HE government bypassed the federal cabinet on Rs1.5 trillion new tax measures, and Prime Minister Shehbaz Sharif approved the Finance Bill’s presentation in Parliament without input from cabinet ministers. Express Tribune reported, quoting sources, that the cabinet only debated one taxation issue in detail: the withdrawal of sales tax and income tax exemptions for the former Federally Administered Tribal Areas (FATA). Other tax matters, including those affecting the salaried class and taxes on packaged milk and infant milk, were not discussed. Nearly half of the special cabinet meeting focused on the $5000 fee that top bureaucrats receive for attending board meetings of government-owned enterprises. Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar sug-
gested these bureaucrats should retain only part of the fees, surrendering the rest to the exchequer. The remaining meeting time was spent discussing budget figures and proposed salary increases for government employees. It is uncommon for the federal cab-
inet to avoid discussing revenue measures totaling Rs1.5 trillion. The National Assembly will now review these measures for approval. In the budget 2024-25, the government has made significant changes to the sales tax regime to raise an extra Rs484 billion, which is expected to in-
Sindh unveils Rs3.056tr budget PROFIT
NEWS DESK
Govt slashes petrol price by Rs10 ISLAMABAD
STAFF REPORT
The government announced on Friday a significant reduction in petrol and high-speed diesel (HSD) prices for the upcoming fortnight, providing relief to consumers grappling with inflation. Effective from June 15, petrol prices will decrease by Rs10.20 per litre, bringing the new price to Rs258.16 per litre. HSD will see a reduction of Rs2.33 per litre, with the new rate set at Rs267.89 per litre, according to a statement issued by the Prime Minister’s Office. Kerosene oil will remain priced at Rs171.61 per litre, and light diesel oil (LDO) will stay at Rs157.32 per litre in the open market. The finance division has also issued an official notification in this regard. Petrol is primarily used for cars and motorcycles, while HSD powers heavy vehicles such as trucks and buses, as well as industrial machinery. It is noteworthy that on June 1, the government reduced the price of petrol by Rs4.74 per litre and diesel by Rs3.86 per litre. So far, a total relief of Rs35 per litre has been provided to the public for petrol. Earlier in the day, Prime Minister Shehbaz Sharif announced a significant reduction in electricity tariffs for the industrial sector, cutting rates by Rs10.69 per unit. This move aims to boost exports and industrial production. Due to the prime minister’s efforts, the new electricity price per unit for the industrial and export sector is set at Rs34.99. The National Electric Power Regulatory Authority (NEPRA) recommended this reduction for industries. The PM’s package is expected to provide over Rs200 billion in relief to industries, enhancing their competitiveness in the global market.
crease inflation. An 18% tax has been imposed on milk, infant milk, and fatfilled milk, and all stationery items are now taxed at 10%. An 18% sales tax has been applied to vegetables and fruits imported from Afghanistan, diagnostic kits imported by hospitals, and supplies of electricity and gas to hospitals, generating Rs30 billion. A 10% GST is proposed on oil cake, poultry feed, tractors, cattle feed, sunflower seed meal, and canola meal, increasing the prices of cooking oil, milk, and chicken. Likewise, a 10% sales tax has been imposed on the sale of stationery and newspapers. The government has also imposed an 18% sales tax on cardiology, cardiac surgery, and other medical treatments. The excise duty on cement has increased by Rs1 per kg, and a Rs15 per kg excise duty has been imposed on sugar. These measures, along with other taxes, were approved without cabinet input, though the PM had reviewed and approved them.
Sindh Chief Minister Syed Murad Ali Shah presented a robust Rs3.056 trillion budget for the fiscal year 2024-25 on Friday, underscoring a significant increase in development expenditure and proposing salary hikes of 22 to 30 percent. Major budget allocations The budget dedicates Rs959 billion, or 31 percent of the total, to development projects, reflecting a strong focus on enhancing infrastructure and social services. The province anticipates revenue exceeding Rs3 trillion, with 62 percent coming from federal transfers and 22 percent from provincial receipts. Other revenue sources include capital receipts, foreign project assistance, and grants. The expenditure breakdown allocates Rs1.9 trillion (63 percent) for current revenue, Rs184 billion (6 percent) for current capital, and Rs959 billion (31 percent) for development. Sector-wise allocations Education receives a substantial allocation of Rs519 billion,
with Rs459 billion dedicated to current revenue expenditure. The healthcare sector is allocated Rs334 billion, including Rs302 billion for current expenses. The local government is set to receive Rs329 billion. Agriculture is allocated Rs58 billion, with Rs32 billion earmarked for current expenditure. The energy sector is allotted Rs77 billion, with Rs62 billion for ongoing costs. Irrigation receives Rs94 billion, with Rs36 billion for current expenses. Additionally, Works & Services are allocated Rs86 billion, and Planning & Development receives Rs30 billion. Emphasis on Social Protection The budget places a strong emphasis on social protection, with Rs34.9 billion allocated for pro-poor initiatives and Rs116 billion designated for subsidies to alleviate the financial burden on citizens. It also proposes a minimum wage increase to Rs37,000. Key relief measures include salary increases of 22-30 percent for government employees, pension hikes of 15 percent, and Rs25 billion for housing schemes. Development and Economic Recovery
Several new initiatives aim to foster long-term development and economic recovery. The Hari Card scheme, with an allocation of Rs8 billion, targets 12 million farmers. An Inclusive Enclave in Korangi, with an Rs5 billion allocation, will offer comprehensive facilities. The budget also introduces fiscal decentralization for police stations with an Rs485 million allocation, a Rs5 billion solarization initiative for solar home systems, a Rs5 billion Hub Canal Project for water supply to Karachi, and a Rs5 billion Mazdoor Card program for labor welfare. Human capital investment Investing in human capital is a key priority, with Rs190 billion allocated in grants for education and healthcare, including Rs35 billion earmarked for universities and support for major hospitals and medical institutes. The Sindh budget for 202425 demonstrates a comprehensive approach to development, social welfare, and economic recovery, reflecting the government’s commitment to the long-term growth and well-being of its citizens.
Telecom industry opposes tax measures, warns of industry exodus PROFIT INP
The telecom industry has voiced strong opposition to the taxes imposed in the new fiscal year budget, labeling them as detrimental to the industry’s survival. In a letter addressed to the Federal Minister of IT, the telecom industry decried the budgetary taxes as catastrophic, warning of severe
repercussions on investment and operational viability. The industry contends that escalating tax burdens will lead to legal disputes and ultimately force telecom companies to exit Pakistan. Highlighting the critical role of internet connectivity in Pakistan’s economy, the letter asserts that increased taxes will impede digitalization efforts, hindering economic growth.
PM announces major electricity tariff reduction for industries PROFIT
NEWS DESK
Prime Minister Shehbaz Sharif unveiled a substantial cut in electricity tariffs for the industrial sector on Friday, reducing rates by Rs10.69 per unit. This initiative is designed to enhance exports and stimulate industrial production. Following the prime minister’s focused efforts, the new electricity rate for the industrial and export sectors is now set at Rs34.99 per unit. This adjustment comes in response to a recommendation from the National Electric Power Regulatory Authority (NEPRA), as detailed in a statement from the PM Office. The prime minister’s relief package is anticipated to provide over Rs200 billion in financial
relief to industries, significantly enhancing their competitiveness on a global scale. The package is strategically aimed at aligning Pakistan’s manufacturing costs with international standards, thereby reducing production costs for industrial and agricul-
tural commodities. This reduction is expected to lead to a significant increase in exports. The tariff cut is projected to accelerate industrial growth, create new job opportunities, and stimulate broader economic activity. NEPRA had specifically
CONTINUED ON PAGE 03
proposed a reduction of Rs10.69 per unit in electricity prices for industries, which has now been implemented through the prime minister’s initiative. Prime Minister Shehbaz’s special package is designed to alleviate over Rs200 billion worth of financial burden from industries. This relief is intended to make the cost of goods produced in Pakistan more competitive in the global market. By lowering production costs, the initiative aims to significantly boost exports. Experts believe that the prime minister’s announcement will not only accelerate industrial development but also rapidly increase employment. The faster pace of industrial activity and the rise in exports are expected to bring substantial benefits to the national economy.
Punjab unveils Rs842 billion Annual Development Plan PROFIT
MONITORING DESK
The Punjab government presented its inaugural budget on Thursday, featuring a historic annual development plan (ADP) totalling Rs842 billion. This includes a foreign aid component of Rs106.167 billion and represents a 28% increase from the previous year’s Rs655 billion. The ADP allocates 33% to the social sector, 29% to infrastructure, 13% to production, and 5% to the services sector, with 20% earmarked for special initiatives and other programs. Finance Minister Mujtaba Shuja said that 100% cash cover is available for the ADP, reflecting the government’s five-year priorities. Nearly half of the total ADP, Rs394.4 billion, is allocated for ongoing schemes, while Rs404.41 billion is set aside for new projects. Significant allocations include Rs45 billion for the agriculture sector, Rs20 billion for urban development, Rs9 billion for primary healthcare, Rs8.5 billion for roads, Rs4 billion for the Roshan Gharana solar scheme, Rs4 billion for sports and youth affairs, Rs5.2 billion for fisheries, Rs7 billion for livestock, and Rs5 billion for tourism, including Murree development. The social sector receives Rs280 billion, including Rs45 billion in foreign aid. Education is allocated Rs65.5 billion, with Rs45 billion for school education, Rs15 billion for higher education, and Rs6 billion for special and non-formal education. The CM’s school meal plan receives Rs500 million. The health sector is allocated Rs128.6 billion, 11% more than the previous year, with Rs86 billion for specialized healthcare and Rs42 billion for primary and secondary health. The agriculture sector is allocated Rs64.6 billion, with Rs11.8 billion in foreign aid. The CM’s initiative, mainly the Kisan Card package, receives a major share, providing 0.5 million farmers with interest-free loans worth Rs75 billion. Tractors worth Rs30 billion will be distributed on easy installments, and 7,000 tubewells will be converted to solar technology at a cost of Rs9 billion. Rs15.85 billion is allocated for on-farm water management, Rs2.65 billion for the agriculture transformation plan, and smaller sums for agriculture research, education, soil survey, pest warning, and district development packages. Forestry schemes receive Rs4 billion, fisheries Rs6.4 billion, wildlife Rs5.3 billion, livestock Rs9 billion, industries and commerce Rs10.7 billion, and tourism Rs6.5 billion. The services sector is allocated Rs41 billion, including Rs5.9 billion in foreign aid. Key allocations include Rs20.7 billion for governance and IT, Rs18.5 billion for transport, and Rs1.4 billion for emergency services (1122).
Establishment’s meddling in judiciary to end soon: LHC CJ
g
STRESSES WE’VE TO FACE IT WITH COURAGE, WITHOUT ANY FEAR, AND WITH BELIEF THAT THIS INTERFERENCE WILL END RAWALPINDI
STAFF REPORT
Chief Justice of Lahore High Court (LHC), Justice Malik Shahzad Ahmed Khan, on Friday declared that undue influence from external forces on judicial affairs would be curtailed shortly. “I have received complaints and letters, including verbally regarding interference in judicial matters by “institutions,” but I have full faith that this interference of the establishment in the judiciary will come to its end very soon,” the LHC CJ declared while addressing an event in Rawalpindi here on Friday. He explained he was saying so not just because it was “part of my faith but also includes my experience”. “To get rid of the establishment’s interference, we have to face it with bravery, courage and without any fear, and with the belief that this interference, God-willing, will end soon,” the chief justice said. “We receive letters, complaints and oral complaints that interference is being done in the judiciary in which a few institutions — naming them is not appropriate — are involved,” Justice Ahmad said. Citing historical precedents starting with Maulvi Tamizuddin case, the LHC CJ emphasized that It’s prudent to leave the names of these institutions unmentioned. “Currently, the judiciary operates independently without external pressures,” he affirmed. He recounted an uplifting anecdote about a district judge who resisted such influences, proclaiming, “I am fearless; I will administer justice impartially.” The resilience of this judge, accord-
ing to Justice Ahmed, filled him with immense pride. He also spoke about reports from district judges facing coercion and attempts to influence their decisions. He urged them to resist such pressures, assured that they would be guided by higher principles. “My conviction that the interference from the establishment in judicial matters will cease is unwavering,” he stated. The Chief Justice shared the initiatives he had implemented after assuming his office. “Immediately after taking office, I organized a full court session, where we resolved that strike actions would not be entertained. On May 13, a directive was issued across Punjab’s courts to disregard any strike calls and to proceed strictly by legal norms,” he explained. On April 24, judges at the Islamabad High Court (IHC) unanimously reported undue meddling by intelligence agencies in their judicial responsibilities. Justice Ahmed commended the integrity of the majority within the legal fraternity, observing that “90% of attorneys are commendable.”