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IMF seeks revenue-boostIng Measures as Fbr Falls short oF benchMarks Sunday, 3 November, 2024 I | 30 Rabi ul Sani, 1446
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Fund also declines Pakistan’s request to revise down FBR’s tax collection targets
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ISLAMABAD
Revenue shortfall could threaten disbursement of second loan tranche from the int’l lender
STAFF REPORT
HE International Monetary Fund (IMF) has asked Pakistan to implement urgent revenueboosting measures in the aftermath of the Federal Board of Revenue’s (FBR) revenue shortfall during the first four months of fiscal year 2025 (FY25). The IMF also declined Pakistan’s request to revise down the FBR’s tax collection targets. Pakistan missed three of the five critical fiscal targets set by the International Monetary Fund (IMF) for the first quarter of FY25, including a cash surplus requirement of Rs342 billion from provincial governments. The Ministry of Finance’s latest report reveals a challenging path for meeting IMF benchmarks as the government grapples with budget deficits, especially in Punjab, and sluggish tax collections. According to FBR sources, the IMF urged Pakistan to make up for the tax shortfall with additional revenue-boosting measures. Missed IMF Targets: Pakistan failed to meet three of the five critical fiscal targets set by the IMF for the first quarter of FY25. This includes a crucial cash surplus target from provincial governments. Despite Pakistan’s request to revise downward its tax collection targets, the IMF remained firm,
demanding immediate and substantial revenue-boosting measures. The FBR’s shortfall directly threatens the disbursement of the second loan tranche from the IMF. The risk increases proportionally with the persisting shortfall. During virtual discussions with the IMF, the FBR had sought a downward revision of its tax targets, but the request was denied, sources said. The FBR’s tax shortfall may impact the disbursement of the second loan tranche, and further measures could be needed if the shortfall grows in the coming months, sources added. On Thursday, in the fiscal operations summary for July-September, the finance ministry confirmed Pakistan met the primary budget surplus and provin-
cial net revenue collection targets. The federal government recorded a primary surplus of Rs3 trillion, or 2.4% of GDP, largely driven by the State Bank of Pakistan’s (SBP) profit of Rs2.5 trillion, booked entirely in the first quarter. This one-off booking is expected to level out over the fiscal year. However, Punjab’s budget deficit of Rs160 billion contributed significantly to the shortfall in the provincial cash surplus target, with the combined provincial surplus falling 53% below the Rs342 billion goal. While Sindh, Khyber-Pakhtunkhwa, and Balochistan recorded surpluses of Rs131 billion, Rs103 billion, and Rs85 billion respectively, Punjab’s deficit reduced the overall provincial surplus to
CJP Afridi convenes maiden meeting of ‘reformed’ JCP on Nov 5 ISLAMABAD
STAFF REPORT
Chief Justice of Pakistan Yahya Afridi on Saturday summoned the first meeting of the Judicial Commission of Pakistan (JCP) on November 5. Key agenda items of the JCP meeting to be held in Supreme Court, include the establishment of a JCP Secretariat and discussions around the appointment of judges for constitutional benches in the apex curt. The attendees of the JCP, include Justice Mansoor Ali Shah, Justice Muneeb Akhtar, and Justice Aminuddin, Federal Law Minister Azam Nazeer Tarar, Attorney General Mansoor Usman Awan, Pakistan Bar Council representative Akhtar Hussain, and five parliamentarians from the opposition and ruling benches. Notable members include Pakistan People’s Party Senator Farooq H. Naek, Pakistan Muslim LeagueN’s MNA Sheikh Aftab Ahmed, and Pakistan Tehreek-e-Insaf’s MNA Omar Ayub and Senator Shibli Faraz. The meeting will also be attended by female member Roshan Khurshid. Earlier, the names of parliamentarians from both the National Assembly and Senate submitted to the Supreme Court. Chairman of the Senate, Syed Yousaf Raza Gillani, directed the Registrar of the Supreme Court to send nominations for the Judicial Commission, based on the advice of Leader of the House Senator Ishaq Dar and Leader of the Opposition Senator Shibli Faraz. The nominees include Senator Farooq H. Naek and Senator Shibli Faraz from the government and opposition benches, respectively. Meanwhile, National Assembly Speaker Sardar Ayaz Sadiq has also communicated with the Supreme Judicial Commission, providing the names nominated by parliamentary parties. For the Judicial Commission from the National Assembly, opposition leader Omar Ayub and Sheikh
Aftab from the Pakistan Muslim League-Nawaz have been nominated, along with Roshan Khorasani Brocha for the reserved women’s seat. According to the National Assembly spokesperson, following the approval of the 26th Amendment, the Judicial Commission will now include five parliament members, with all nominations forwarded to the Secretary of the Judicial Commission.
The nominations submitted by Parliament ensure equal representation from both the government and the opposition. Speaker Ayaz Sadiq consulted with Chairman Senate Yousaf Raza Gillani and all parliamentary parties before finalizing the names, which have now been received by the Supreme Court. The freshly-amended Article 175-A states that a 13-member judicial commission, comprising the chief justice, three most senior judges of the Supreme Court, most senior judge of the constitutional benches, law minister, attorney general for Pakistan, a nominee from the Pakistan Bar Council, two members each from the National Assembly and the Senate, and a woman or nonMuslim from outside parliament will work for the appointment of the judge in the Supreme Court, high court and the federal Shariat Court.
Parliament sends names for SJC formation to appoint judges to top court ISLAMABAD
STAFF REPORT
The names of parliamentarians from both the National Assembly and Senate have been submitted to the Supreme Court for the formation of the Judicial Commission to appoint judges to the superior judiciary. After enactment of 26th Amendment into law, five parliamentarians will be included in the 13-member Supreme Judicial Council (SJC), supposes to appoint judges to the superior court. Besides the parliamentarians, five judges, including the Chief Justice of Pakistan, as well as a representative from the Pak-
Rs 20.00 | Vol XV No 117 I 8 Pages I Islamabad Edition
istan Bar Council (PBC) will be part of the SJC. The freshly-amended Article 175-A states that a 13-member judicial commission, comprising the chief justice, three most senior judges of the Supreme Court, most senior judge of the constitutional benches, law minister, attorney general for Pakistan, a nominee from the Pakistan Bar Council, two members each from the National Assembly and the Senate, and a woman or nonMuslim from outside parliament will work for the appointment of the judge in the Supreme Court, high court and the federal Shariat Court.
lhcba moves sc challenging 26th constitutional amendment ISLAMABAD
STAFF REPORT
just Rs160 billion. The report also highlighted an increase in provincial expenditures, which rose by 33% to Rs1.76 trillion year-onyear. The provinces’ development spending grew modestly by 4%, while current expenditures saw a notable 28% rise, reaching Rs1.22 trillion. Federal tax collection by the Federal Board of Revenue (FBR) also fell short, missing the Rs10 billion trader tax target by a wide margin, collecting only Rs10 million in the quarter. Authorities cited incorrect assumptions regarding inflation, manufacturing, and imports as factors contributing to the tax shortfall. On the revenue side, provinces collectively raised Rs213 billion, exceeding the IMF’s target of Rs184 billion. This independent revenue generation, bolstered by a 22% increase in provincial tax collections, was achieved primarily through the National Finance Commission (NFC) award, which allocated Rs1.6 trillion in federal tax shares to provinces, a 44% increase from the previous year. The country’s total budget balance showed a surplus of Rs1.7 trillion or 1.4% of GDP, bolstered by the SBP’s profits. Meanwhile, petroleum levy collections amounted to Rs262 billion. Federal spending reached Rs2.5 trillion, with current expenditures at Rs2.4 trillion. Interest payments accounted for Rs1.3 trillion, while defence spending stood at Rs410 billion.
The Lahore High Court Bar (LHCB) on Saturday filed a petition in Supreme Court, challenging various clauses of the 26th Constitutional Amendment to be declared as unconstitutional. In the petition, filed of senior lawyer Hamid Khan, the LHCBA seeks the apex court to declare various clauses of the 26th Amendment as unlawful and unconstitutional. The petitioner pleads with the court to declare section 7,9,10,12,13,14, as well as section 16,17 and 21 as unconstitutional. The petitioner also requested the court to declare the steps taken under various sections of the said constitutional amendment as unconstitutional. The LHCBA also requested the top court that the judicial commission and other steps should be restrained from taking any action until a final verdict on the petition. The federation, judicial commission, the National Assembly, Senate, Speaker National Assembly and the President have been made respondents in the petition. Last week, LHCBA President Asad Manzoor Butt and Professional Group head Hamid Khan said lawyers across the country had rejected the 26th Constitutional Amendment. “All bar associations have unanimously decided to challenge the amendment, which has been passed illegally,” they said while addressing a joint press conference on Monday. LHCBA President Butt said the prime minister and federal law minister did not cooperate with lawyers. “We hope the Punjab government will cooperate with the High Court Bar,” he said and thanked Chief Minister Khyber-Pakhtunkhwa Ali Amin Gandapur for a grant of Rs30 million for the bar. Hamid Khan said that Pakistan is passing through a period of extreme difficulties. “The High Court Bars across Pakistan have rejected the 26th Amendment. All the Bars decided to challenge the amendment in the Supreme Court,” he said and termed the 26th Amendment a PCO of the democratic era. Through the amendment, he said, the powers have been concentrated in one place. The appointment of the chief justice of Pakistan has to be based on seniority.
Four khawarij killed in South Waziristan IBO: ISPR RAWALPINDI
STAFF REPORT
Four terrorists were killed in fire exchange with the security forces during an intelligence-based operation (IBO) in Khyber Pakhtunkhwa’s South Waziristan region on Saturday, according to the military’s media wing. According to a statement from the Inter-Services Public Relations (ISPR) on Saturday, “In the early hours of November 2, 2024, security forces conducted an intelligencebased operation in general area Sarwakai, South Waziristan District on reported presence of khawarij.” The ISPR said that security forces engaged the terrorists, with four khawarij “sent to hell”. “Sanitisation operation is being carried out to eliminate any other Khariji found in the area as the security forces of Pakistan are determined to wipe out the menace of terrorism from the country,” the press release stated. Earlier this week, a Pakistan Army major and two soldiers were martyred and eight terrorists were killed during an intelligence-based operation (IBO) in Khyber Pakhtunkhwa’s (KP) Bannu District, the military’s media wing said on Wednesday. According to a press release from the Inter Services Public Relations, the security
CTD registers FIR of deadly Mastung blast QUETTA
STAFF REPORT
The Counter-Terrorism Department (CTD) on Saturday registered a terrorism case of Mastung blast that claimed nine lives, including that of five schoolchildren, on Friday. The blast occurred when an improvised explosive device (IED) planted in a motorbike was denoted near a police mobile van at SchoolHospital Chowk in the Majeed Road area, officials said. The first information report (FIR), registered on the complaint of Mastung City Station House Officer (SHO) Abdul Fateh, said that unidentified terrorists had “targeted innocent children and the public” via the blast. According to officials said the target of the remote controlled blast
forces carried out an IBO in the Bannu district’s general area of Bakka Khel based on the reported terrorist presence. It added that the troops “effectively engaged” the militants at their location, killing eight and injuring seven.
was a police vehicle heading to Mastung district hospital to pick up polio vaccinators to escort them to different neighbourhoods as part of the nationwide immunisation drive being run from Oct 28 to Nov 3. According to the FIR, Bomb Disposal team head Rafiq Shah, after inspecting the incident site, noted that “seven to eight kilogrammes of explosive material and ball bearing” were used in the IED blast. The police, the FIR added, saw a considerable number of children near the site of the blast. “Workers present in a police van, which was taking a police team to DHO hospital for polio duty, were martyred and injured.” The FIR detailed that rickshaws, a wall of the Manzoor Shaheed Library and glass windows of the girls’ high school were damaged as a result of the explosion.
“However, during intense exchange of fire, Major Atif Khalil (age: 31 years, resident of Sudhanuti district, Azad Jammu and Kashmir), a brave officer, who was leading his troops from front, fought gallantly and embraced martyrdom along with his two men.
Provinces disagree with centre over 33.58m tonnes wheat production target
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Punjab suggests reducing wheat cultivation area to 9.263m hectares with an estimated production of 27.92m tons PROFIT
NEWS DESK
The federal government has set a wheat production target of 33.58 million tons for the Rabi season 2024-2025, aiming to cultivate over 10.368 million hectares. The decision was announced during the Federal Committee of Agriculture (FCA) meeting, chaired by Federal Minister for National Food Security and Research, Rana Tanveer Hussain. The meeting also reviewed the performance of Kharif crops and outlined production targets for other Rabi crops, including gram, potatoes, onions, tomatoes, and chilies.
Despite the central government’s wheat goal, provincial administrations have voiced concerns, proposing a lower target for wheat due to challenges faced in the previous season. Punjab, where farmers were impacted by the lack of a fixed support price, along with other provinces, suggested reducing the wheat cultivation area to 9.263 million hectares with an estimated production of 27.92 million tons. The FCA meeting also set production targets for other key crops: gram (419.4 thousand tons), potatoes (6.83 million tons), onions (2.55 million tons), tomatoes (658.7 thousand tons), and chilies (56.8 thousand tons).
Kharif crop data presented at the meeting showed promising results, with sugarcane output provisionally estimated at 85.5 million tons, an 11.5% increase in production. Rice production rose by 4% to 9.079 million tons, while mash production saw a modest increase to 5.77 thousand tons. Discussing the Rabi season’s resource outlook, the Federal Seed Certification and Registration Department assured adequate certified seed availability. The Indus River System Authority (IRSA) projected a 16% water shortfall for Punjab and Sindh, with an initial allocation of 31.136 MAF subject to review in November.