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  • Indonesia resumes palm oil shipment to Pakistan

    Indonesia resumes palm oil shipment to Pakistan

    ISLAMABAD: Indonesia has started palm oil shipment to Pakistan after promulgation of new export regulation, a statement said on Tuesday.

    On the request of Pakistan, Indonesian minister assured that after completing the necessary formalities, the first shipment of palm oil to Pakistan was expected to sail within 24 hours.

    The minister further stated that he would ensure that the first shipment leaves the Indonesian port by the next day. The minister also assured that Pakistan would be the first country to which the commodity will be exported, after the promulgation of new export regulations.

    READ MORE: Tarin orders release refunds to edible oil importers

    Upon the special instruction of Prime Minister Muhammad Shehbaz Sharif, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mahmud led a delegation to Jakarta from 12- 14 June 2022.

    The objective of the visit was to minimize the impact of the recent decision of the Government of Indonesia to ban the export of Palm oil on Pakistan’s economy and ensure the steady flow of the commodity in the Pakistani market, Pakistan is the third-largest importer of Indonesian Palm Oil.

    In 2021, Pakistan had imported 2.78 million tonnes of Palm oil from Indonesia. During the visit, Minister Syed Murtaza Mahmud met with the Indonesian Minister of Trade Muhammad Lutfi, Minister of Industry Agus Gumiwang Kartasasmita Coordinating Minister of Maritime and Investment Affairs, Luhut Binsar Panjaitan, and Minister of Industries, Agus Gumiwang Kartasasmita.

    Representatives of the largest Palm oil exporters to Pakistan and the Chairman of the Indonesian Palm Oil Association also called on the Minister.

    In his interaction with the Indonesian Minister of Trade, while highlighting the strong historical and brotherly relations between Pakistan and Indonesia, Minister Mahmud underscored that Pakistan, being the third – largest market for Indonesian palm oil, was heavily dependent on Indonesian palm oil.

    He sensitized the Indonesian minister of the situation of edible oil in Pakistan and mentioned that Indonesia’s decision to ban palm oil export for a month had adversely affected the stocks of edible oil in Pakistan. Even after the ban had been lifted on 23 May 2022, the exporters are still facing regulatory and logistical bottlenecks.

    He urged his Indonesian interlocutor to facilitate the earliest possible resumption of palm oil shipments to Pakistan by removing the bottlenecks.

    In response, the Indonesian Minister assured that Indonesia attached great importance to its relations with Pakistan and was ready to ensure an uninterrupted flow of Indonesian Palm Oil to Pakistan.

    He further stated that after completing the necessary formalities, the first shipment of palm oil to Pakistan was expected to sail within 24 hours.

    The Minister further stated that he would ensure that the first shipment leaves the Indonesian port by the next day.

    The Minister also assured that Pakistan would be the first country to which the commodity will be exported, after the promulgation of new export regulations.

    Both the ministers discussed bilateral economic and trade relations. Minister Mahmud underscored the urgency of bridging the huge trade imbalance between the two countries.

    The two Ministers identified SMEs, agriculture, tourism, industrial joint ventures, and other non – traditional sectors as possible areas of collaboration.

    Minister Lutfi agreed to visit Pakistan to discuss these issues with his Pakistani counterpart. During his meeting with Coordination Minister Luhut Binsar Panjaitan who has been assigned by President Jokowi to coordinate local distribution and export of Palm oil, Minister Mahmad underscored the need to ensure uninterrupted delivery of the commodity to Pakistan.

    Minister Luhut promised to make sure that the delivery of Palm Oil to Pakistan in resumed at the earliest. He further stated that he has directed to ensure steady flow to the commodity in the future.

    Minister Mahmud and his Indonesian counterpart, Agus Chumiwang Kartasasmita exchanged views on bilateral cooperation in the industrial sectors, particularly in the production of e-vehicles, cell phones, electronics, and agro – based Industries.

    The Minister highlighted the potential of investment in Pakistan in various sectors, and opportunities emerging from SEZa and invited the Indonesian businessmen and entrepreneurs to invest in Pakistan.

    The Minister also invited his Indonesian counterpart to visit Pakistan, which was accepted.

    The visit of Minister Mahmud was timely to secure the resumption of the export of Indonesian Palm Oil to Pakistan and avoid a shortage of the commodity in the market.

    Due to the Minister’s personal intervention, two shipments of Palm Oil carrying 30,000 and 27,000 would leave for Pakistan today.

    Another 8 shipments are expected to reach Karachi before the end of June 2022 14 June 2022, says a press released received here today from Jakarta on 14 June 2022.

  • Sindh announces tax relief measures in budget 2022-2023

    Sindh announces tax relief measures in budget 2022-2023

    KARACHI: The province of Sindh has announced sales tax relief measures in the budget 2022-2023 presented in the provincial assembly on Tuesday.

    Sindh Chief Minister Syed Murad Ali Shah announced a number of measures to facilitate taxpayers in payment of sales tax on services.

    READ MORE: Sindh increases salary by 15% from July 1, 2022

    He said relief to public has been provided by extending existing measure to ensure that relief continues to reach common man. For this purpose;

    Exemption from SST is being proposed on toll manufacturing services.

    READ MORE: Sindh unveils Rs1.714 trillion budget for 2022/2023

    5 per cent reduced SST rate for “Recruiting Agents” will continue for next two years i.e. up to 30th June, 2024. This relief is proposed for Pakistanis aspiring to work overseas.

    Services provided by Cable TV Operators are levied at a reduced rate of 10 per cent, the existing relief is proposed to be extended for a further period of two years ending on 30th June, 2024.

    Whereas, the following cable TV operators are proposed to be exempt:

    a) Cable TV Operators in rural areas under PEMRA License of “R” Category to be exempt from SST till 30th June, 2023.

    READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

    The rate of SST on commission charges received by food delivery channels (i.e. Foodpanda, Cheetay Logistics, etc.) from Home Chefs is proposed to be reduced from 13 per cent to 8 per cent for a period of two (2) years ending on 30th June, 2024. This relief is proposed in order to encourage small scale businesses. In all other cases, the services provided or rendered by Commission Agents shall continue to be liable to SST at 13 per cent.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    The existing exemption on health insurance services is proposed to continue further for a period of one year till 30th June, 2023.

    GIZ, a German development agency, facilitating development projects in Sindh, is proposed to be granted conditional exemption on Sales tax on services as indirect relief to the Public.

  • Sindh increases salary by 15% from July 1, 2022

    Sindh increases salary by 15% from July 1, 2022

    KARACHI: The Sindh government on Tuesday announced a 15 per cent raise in salary of provincial government employees and 5 per cent increase in pension effective from July 01, 2022.

    Sindh Chief Minister Syed Murad Ali Shah announced raise in pay and pension while presenting the provincial budget 2022-2023.

    READ MORE: Sindh unveils Rs1.714 trillion budget for 2022/2023

    The chief minister announced various relief measures for employees and pensioners during next fiscal year.

    He said Adhoc Relief Allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of Federal Government are being merged and Revised Basic Pay Scale 2022 for Civil Servants of Government of Sindh is being introduced on the pattern of Federal Government.

    Adhoc Relief Allowance at the rate of 15 per cent of Basic Pay Scales to Civil Servants of Government of Sindh w.e.f. 1st July 2022 is proposed.

    READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

    Disparity Allowance at the rate of 33 per cent of Basic Pay will be paid to Civil Servants in BPS-1 to 16 and at the rate of 30 per cent to Civil Servants in BPS-17 and above in lieu of the differential rate of Ad-hoc Relief Allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 & 2021, which are being abolished w.e.f 1st July, 2022.

    Pensioners of Government of Sindh were already getting 22.5 per cent more increase in net pension than pensioners of Federal Government till February 2022. Therefore, an increase at the rate of 5 per cent of net pension will be paid to the pensioners of the Sindh Government w.e.f 1st July, 2022.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    Thus, after announcement of 10 per cent increase in net pension by Federal Government in March 2022 and enhancement of the rate of increase to 15 per cent from 1st July 2022, the pensioners of Government of Sindh will still be getting 12.5 per cent more of net pension than the pensioners of Federal Government.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

  • Sindh unveils Rs1.714 trillion budget for 2022/2023

    Sindh unveils Rs1.714 trillion budget for 2022/2023

    KARACHI: Syed Murad Ali Shah, Chief Minister of Sindh on Tuesday presented provincial budget 2022-2023 with total outlay of Rs1.714 trillion.

    The province estimated the deficit budget amounting Rs33.85 billion for the next fiscal year.

    READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

    The chief minister said that the total budget outlay for Financial Year 2022-2023 is estimated at Rs.1.714 trillion, as against budget estimate of Rs.1.478 trillion for 2021-2022, showing overall increase of 15.9 per cent.

    The current expenditure of the province is projected at Rs.1.254 trillion, which includes current revenue expenditure of Rs. 1.199 trillion and current capital expenditure of Rs.54.5 billion.

    This is 73.2 per cent of total expenditure of the province and shows an increase of 9.1 per cent in comparison to the current expenditure for last year that was Rs.1.148 trillion.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    The chief minister said that for the next financial year, size of development budget will be Rs459.658 billion as compared to Rs. 329.033 billion in year 2021-2022, that will include Rs. 332.165 billion for Provincial Annual Development Plan (ADP) and Rs.30.00 billion for Districts ADP.

    Foreign project assistance of Rs.91.468 billion from the development partners and Rs.6.025 billion are expected from Federal PSDP grant for schemes being executed by Government of Sindh.

    Murad Ali Shah said shift in federal priorities during last four years caused the people of the second largest province face deprivation due to lack of infrastructure development and non-provision basic health facilities in rural areas.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    “Despite these difficulties we maintained our resolve towards our development objectives,” he added.

    Hence, next year’s ADP will include schemes to provide basic facilities to the marginalized segments of society. More resources are being allocated for water and sanitation, road network, transport, health and education sectors to provide maximum relief to the common people in the next year’s ADP.

    There are 2,506 ongoing schemes with allocation of Rs. 253.146 billion being 75  per cent of total ADP.

    There are 1,652 new schemes with allocation of Rs.79.02 billion being 25  per cent age of total ADP

    On-Going schemes where more than 70 per cent expenditure is made, have been fully funded for completion by June, 2023.

    More than 1,510 schemes have been fully funded and are expected to be completed in next financial year 2022-23.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    Allocation for Education Sector schemes is Rs. 34.22 billion (10.2 per cent of the total size).

    Allocation for Health Sector schemes is Rs. 23.33 billion (6.5 per cent of the total size).

    Allocation for Water and Sanitation Sector (PHE & LG) is Rs. 59.36 billion (18  per cent of the total size).

    Allocation for Agriculture & Livestock sector is Rs 10.2 billion (3  per cent of total size)

    Allocation for Irrigation including lining is Rs. 32.5 billion (12 per cent of the total size).

    Allocation for Transport & Communication (Road under W&S and LG) sector is Rs. 100.64 billion (30  per cent of the total size).

    Allocation for Karachi based schemes is Rs. 118 billion, Rs.72 billion under ADP, Rs. 5 billion under District ADP and Rs. 41 billion through Foreign Project Assistance.

    Keeping in view the above non-development and development expenditure priorities, the major milestones of our objectives are:

    READ MORE: New rates of capital gain tax on disposal of securities

    Provide infrastructure to educational institutions for increased enrolment.

    Improve and Upgrade health facilities and manage available health institutions

    Provide nutrition support, community infrastructure funds, income generating grants, micro assets, and low cost housing for reducing poverty of poorest of the poor.

    Increase agricultural productivity and value chain, Conservation of water for agriculture, industrial and municipal consumption.

    Provide clean drinking water and safe disposal of sewerage.

    Improve connectivity between major cities and towns of province.

    Increase road connectivity and planned mass transit for Karachi city.

  • FBR constitutes anomaly committees for Finance Bill 2022

    FBR constitutes anomaly committees for Finance Bill 2022

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday constituted committees to remove anomalies in the Finance Bill, 2022.

    The FBR formed two separate committees i.e. technical and business to take input from stakeholders.

    READ MORE: FBR to disable mobile SIMs on non-filing of tax returns

    Term of Reference (TOR) is to: review the anomalies identified and submitted; and to advise FBR on removal of anomalies.

    The technical anomaly committee will be headed by Ashfaq Tola, FCA FCMA and co-chair by Ms. Suraiya Ahmed Butt, Member (Customs-Policy), FBR and Afaque Ahmed Qureshi, Member (IR-Policy), FBR.

    READ MORE: Pakistan amends tax laws to legalize money transfers

    The other members of the technical companies are: Asif Haroon, A F Ferguson & Co. Karachi; Abdul Qadir Memon, Patron Pakistan Tax Bar, Karachi; Muhammad Aurangzeb, Chairman, Pakistan Business Council, Karachi; Sadia Nazeer, FCA, Partner KPMG, Islamabad; Habib Fakharuddin CA, Rawalpindi; Saifullah, Partner Rafaqat Babar & Co. / Vice President ICAP, Peshawar; and Kamal Hassan Siddiqui, Balochistan Tax Bar, Quetta.

    The business anomaly committee will be headed by Zubair Motiwala and co-chair by Ms. Suraiya Ahmed Butt, Member (Customs-Policy), FBR and Afaque Ahmed Qureshi, Member (IR-Policy), FBR.

    READ MORE: Collectors empowered to determine customs valuation

    The other members of anomaly committee-business are: Irfaq Iqbal Sheikh, President, Federation of Pakistan Chamber of Commerce and Industry (FPCCI); Mian Nauman Kabir, President, Lahore Chamber of Commerce and Industry (LCCI); Hasnain Khurshid Ahmad, President, Sharhad Chamber; Fida Hussain Dashti, president, Quetta Chamber; Muhammad Shakeel Munit, President, Islamabad Chamber of Commerce and Industry (ICCI); Ehsan A Malik, CEO, Pakistan Business Council; Syed Anis Ahmed, President, American Business Council; Abdul Rahim Nisar, Chairman, All Pakistan Textile Mills Association (APTMA); Khurram Mukhtar, Patron-in-Chief, PETA; and Abdul Aleem, Secretary General, Overseas Investors Chamber of Commerce and Industry.

    The FBR asked both the committees to submit their recommendations by June 20, 2022.

    READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023

  • Khyber Pakhtunkhwa raises salary, pension by 15%

    Khyber Pakhtunkhwa raises salary, pension by 15%

    PESHAWAR: Khyber Pakhtunkhwa on Monday announced 15 per cent increase in salary of provincial government employees and 15 per cent increase in pension as well.

    Finance Minister Taimur Salim Jhagra announced the increase in salary and pension of provincial employees while presenting the provincial budget 2022-2023.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    The minister announced Rs15 percent increase in salaries and pension of all the government employees, Rs15 percent ad-hoc relief allowance, adding the increase for grade1-19 employees besides DRA allowance.

    He said risk allowance of police officials from grade 7-16 have been increased and was brought at par of DRA in line with the police martyrs package.

    The Finance Minister Taimur Salim Jhagra said that Rs447.9 billion would be spent on salaries including Rs372.1 billion in settled districts and Rs75.8 billion through merged tribal districts while Rs107 billion on pension including Rs106 billion in settled districts and Rs one billion in merged tribal districts.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    He said 100 percent increase in pension expenditure have been witnessed in last couple of years, adding expenditure of pensions, which was only one percent of total KP budget expenditure in 2003-04 ie Rs0.87 billion has jumped to 14.7percent ie Rs90 billion in 2021-2022.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    He said amendment in KP Civil Servant Act 1973 has been made under which contributory and provident fund were increased for newly recruited employees under contributory pension scheme under which either lumsum amount one time or long terms investment offer would be given to retired employees.

    As many as services of 63,0000 employees would be regularized including 675 adhoc doctors from July 1, 2002, regularization of 58,0000 teachers and 4079 employees of 128 projects of erstwhile Fata during 2022-2023.

    READ MORE: New rates of capital gain tax on disposal of securities

  • Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    PESHAWAR: Khyber Pakthunkhwa government on Monday presented Rs1.332 trillion budget for fiscal year 2022-2023.

    The budget included an allocation of Rs1.11 trillion for settled districts and Rs223.1 billion for merged tribal districts.

    Presenting its fourth budget at Khyber Pakthunkhwa Assembly floor, Finance Minister Taimur Salim Jhagra said that the volume of the current budget is Rs913.8 billion including Rs789.8 billion for settled districts and Rs124 billion for merged tribal districts.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    He said total development budget of Khyber Pakthunkhwa was Rs418.2 billion including Rs319.2 billion for settled districts and Rs99 billion for merged tribal districts.

    Regarding revenue and receipts collection, the minister said that total receipts was estimated at Rs1,332 billion including Rs750.9 billion to be collected from federal taxes receipts and Rs68.6percent as one percent share of divisible pool on war on terror.

    He said Rs31 billion would be collected through oil and gas royalty and surcharge and Rs61.9 billion through net hydel power in accordance of MoU 2015-16 and arrears.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    The minister said Rs85 billion would be collected through provincial tax and non-tax revenue, Rs4.3 billion under the head of foreign program assistance (FPA) for settled districts and Rs208.7 billion grant for merged tribal districts besides Rs212.7 billion receipts through other resources.

    The Finance Minister Taimur Salim Jhagra said that Rs447.9 billion would be spent on salaries including Rs372.1 billion in settled districts and Rs75.8 billion through merged tribal districts while Rs107 billion on pension including Rs106 billion in settled districts and Rs one billion in merged tribal districts.

    Besides salaries, he said Rs247.4billion would be spent on O&M, emergency and district expenditures, Rs111.4 billion on others current expenditures while volume of provincial development program including accelerated development program budget was Rs241 billion including Rs185 billion for settled districts and Rs56 billion for merged tribal districts while volume of total development budget was Rs383.5 billion including 319.2 billion for settled districts and Rs64.3billion for merged tribal districts.

    READ MORE: New rates of capital gain tax on disposal of securities

    Under foreign program assistance, Rs93.2 billion would be spent including Rs88.9 billion for settled districts and Rs4.3 billion for merged tribal districts while 8.3 billion would be received through Public Sector Development Program for settled districts of Khyber Pakthunkhwa.

    The Minister said that Rs26,458 million would be spent on agriculture, Rs4191 on Aukaf, Religious Affairs, Rs73 million on Bureau of Statistics, Rs71653 million on communication and works, Rs227,087 million for elementary and secondary education, Rs29203 million on energy and power,

    Rs4191 million for environment, Rs1607 million for excise and taxation, Rs32,446 million through finance, Rs6433 million through forestry, Rs6655 million through general administration, Rs205,725 million for health, Rs34,191 million through higher education, Rs101,572 million for home and Rs823 million for housing sectors.

    READ MORE: Pakistan slaps 45% corporate tax on banks

    Likewise, Rs4926 million were allocated for industries, Rs1808 million for information and public relations, Rs2990 million for information technology, Rs25725 million for irrigation, Rs1033 million for labour, Rs14377 million for law and justice, Rs22337 million for local government, Rs1426 million for mines and mineral, Rs64372 million for planning and development,

    Rs3616 million for population welfare, Rs23071 million for public health engineering, Rs30003 million for relief, rehabilitation and settlement, Rs3045 million revenue and estate, Rs6068 million for social welfare, Rs22017 million sports, culture and tourism, Rs2849 million through technical education, Rs12151 million for transport and Rs392 million for Zakat and Usher.

    Finance Minister Taimur Salim Jhagra said health department budget has been increased by Rs55 billion, elementary and secondary education by Rs47 billion, police by Rs14 billion and energy and power by Rs11 billion.

    The Minister announced Rs15percent increase in salaries and pension of all the government employees, Rs15 percent ad-hoc relief allowance, adding the increase for grade1-19 employees besides DRA allowance. He said risk allowance of police officials from grade 7-16 have been increased and was brought at par of DRA in line with the police martyrs package.

    Transport monetization and vehicle leasing policy, change of executive allowance to performance allowance, work from home on Fridays and introduction of fleet cards to save fuel and reduce risk of pilferage across all departments announced.

    Taimur Salim Jhagra said 100 percent increase in pension expenditure have been witnessed in last couple of years, adding expenditure of pensions, which was only one percent of total KP budget expenditure in 2003-04 ie Rs0.87 billion has jumped to 14.7percent ie Rs90 billion in 2021-22.

    He said amendment in KP Civil Servant Act 1973 has been made under which contributory and provident fund were increased for newly recruited employees under contributory pension scheme under which either lumsum amount one time or long terms investment offer would be given to retired employees.

    As many as services of 63,0000 employees would be regularized including 675 adhoc doctors from July 1, 2002, regularization of 58,0000 teachers and 4079 employees of 128 projects of erstwhile Fata during 2022-23.

    OPD services under Sehat Card Plus program would soon be launched in all Govt hospitals and patient can available free treatment up to Rs10 million, he said adding Rs25 billion were allocated for Sehat Plus Card through eight lakh patients were benefited during 2021-22.

    Following inclusion of liver transplant, he said five more chronic diseases including bone marrow transplant, sclerosis, cochlear implants, thalassemia and advance cancer coverage would be included in Sehat Card for which Rs2.5billion were allocated. He said that Rs53.6 billion earmarked for MTIs, allied and medical hospitals in Khyber Pakthunkhwa.

    Four new medical colleges at Dir, Buner, Charsadda and Haripur would be established besides setting up of four new MTIs at Fountains House Peshawar, Kohat Institute of Medical and Dental Sciences, DHQ Charassadda and Women Children Hospital and DHQ Haripur.

    As many as Rs3 billion were set aside for revamping of secondary care and service delivery while renovation of rehabilitation of 32 hospitals were completed.
    Besides allocation of Rs2.7 billion for 58 hospitals in 24 districts for secondary care hospital under Public Private Partnership, he said that 3000 more beds would be established while primary care revamping program carrying allocation Rs2125 million was producing excellent results.

    He said renovation of 700BHUs and RHCs costing Rs82.4 billion have been started while renovation of 500 facilities completed. He said Rs2 billion allocated for strengthening of 15 BHUs and RHCs in 15 districts provision of better services to people.

    He said Rs10 billion would be spent on provision of free medicines to people besides allocation of Rs500 million for LHS and LHWs in addition to 3500 additional LHWs recruitment and additional funds of Rs one billion funds for arrangements regarding eradication of polio in Bannu and Dera Ismail and Rs1.3 billion for launching of maternal ambulance service.

    Taimur Jhagra said KP Govt has decided to maintain tax rates of fiscal year 2021-22, adding 20pc relaxation would be provided for re-registration of motor vehicles or first registration and there would be not tax on land with full exemption from capital value tax (CVT) and registration fee.

    He announced students of elementary and secondary education are exempted from fee and exempted library, archives and hostels fees. The Minister claimed that tax rates of Khyber Pakthunkhwa Revenue Authority was minimum than other provinces of Pakistan.

    He said PFM (Public Financial Management) law was being introduced under Article 119 of the Constitution for bringing more transparency in the financial system. Insaf Food Cards program has been introduced under which Rs26 billion targeted subsidy would be provided to one million families of KP.

  • Massive cut in subsidies to curtail current expenditures

    Massive cut in subsidies to curtail current expenditures

    ISLAMABAD: Pakistan has announced massive cut in subsidies and allocated an amount of Rs699 billion for the fiscal year 2022/2023 as compared with the amount of Rs1.515 trillion in the outgoing fiscal year.

    The drastic cut in subsidies has been aimed at curtailing current expenditures to reduce the fiscal deficit.

    READ MORE: Petroleum levy to generate Rs750 billion

    Pakistan on June 10, 2022 presented its federal budget 2022/2023 which estimated current expenditure at Rs8.69 trillion during the next fiscal year as compared with estimated Rs8.516 trillion in the outgoing fiscal year.

    An amount of Rs3.95 trillion has been allocated for mark-up payments for the fiscal year 2022/2023 as against Rs3.14 trillion in the outgoing fiscal year.

    READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023

    A whopping Rs3.44 trillion has been earmarked for mark-up payment on domestic debt during the next fiscal year as compared with Rs2.77 trillion in the current fiscal year. Meanwhile, an amount of Rs511 billion has been allocated for mark-up payment on foreign debt during next fiscal year.

    The government estimated an amount of Rs530 billion for payment of pension during the next fiscal year. This amount includes Rs395 billion for the pension of military persons and Rs135 billion for the pension of civil employees.

    READ MORE: Budget 2022/2023: Salient features of customs duty act

    The government allocated an amount of Rs1.52 trillion for defence affairs and services during fiscal year 2022/2023 as compared with the estimated amount of Rs1.48 trillion in the outgoing fiscal year. The actual allocation was Rs1.37 trillion for the fiscal year 2021/2022.

    An amount of Rs100 billion has been allocated for pay and pension during the next fiscal year.

    READ MORE: Budget 2022/2023: Salient features of sales tax

    The government earmarked an amount of Rs550 billion for running of civil government during fiscal year 2022/2023 as compared with Rs530 billion in the current fiscal year. The actual allocation for running of civil government was Rs479 billion in fiscal year 2021/2022.

  • Government employees get 15% salary increase

    Government employees get 15% salary increase

    ISLAMABAD: The government on Friday announced a 15 per cent increase in employees of the federal government.

    Finance Minister Miftah Ismail while presenting budget 2022/2023 announced increase in salary of government employees by 15 per cent.

    READ MORE: Share of domestic electricity consumption declines

    The finance minister said that despite the fact that country is facing a severe fiscal crisis now we are aware of the hardships faced by government employees.

    Price hike has affected the household spending badly, especially that of salaried class but in spite of the severe fiscal difficulties and lack of resources. Salaries of government employees are being increased by 15 per cent in order to improve their purchasing power.

    READ MORE: Average inflation estimated up to 12% in FY22

    The basic threshold of taxable salary is proposed to be enhanced to 12 lac from the current 6 lac rupees for salaried individuals. This would pass tens of billions of rupees benefit to salaried people.

    This will generate a positive economic cycle whereby this money would get transferred to the businesses as the disposable income of salaried people increases therefore ultimately, the government will benefit through the thriving of the business, the creation of more jobs, and tax revenues in the future.

    READ MORE: Federal government presents budget 2022-2023

  • Pakistan allocates Rs800 billion for FY23 PSDP

    Pakistan allocates Rs800 billion for FY23 PSDP

    ISLAMABAD: Pakistan on Friday allocated Rs800 billion for the Public Sector Development Program (PSDP) for fiscal year 2022/2023.

    The country presented the federal budget 2022/2023, which envisages PSDP worth 800 billion rupees for the next fiscal year.

    It has been centered on improvement in sectors such as water resources, transport and communication, energy, higher education, health, science and technology, and balanced regional development.

    READ MORE: Federal government presents budget 2022-2023

    The emphasis of PSDP is also on revival of CPEC and related projects for inter-provincial and regional connectivity with equal importance to Special Economic Zones to promote trade, industrialization and create job opportunities.

    The major thrust in the Information and Communication Technology sector including establishment and operations of Special Technology Zones.

    Under the PSDP, the government has allocated 44.179 billion rupees including foreign aid of 1.3 billion rupees to the Higher Education Commission for implementation of 151 development projects.

    READ MORE: Tax exemptions cost Rs1.76 trillion in FY22

    The allocation indicates an increase of one hundred percent over the last year.

    An allocation of over 197 billion rupees has been made for 117 power related projects.

    These include hydro power generation projects such as Diamer-Bhasha, Mohmand, Nai Gaj and the fifth extension of Tarbela. Initiatives like developing water storages, automatic telemetry system, rainwater harvesting, decreasing water losses, ground water regulation and management would be undertaken in consultation with the stakeholders.

    READ MORE: Share of domestic electricity consumption declines

    Over nine billion rupees have been earmarked for Ten Billion Trees Tsunami Programme Phase-I to achieve the target of planting 500 million trees.

    Similarly, over 563 million rupees and over 1.2 billion rupees have been allocated for installation of weather surveillance radars at Multan and Sukkur respectively.

    The Federal PSDP has also proposed an amount of 1.5 billion rupees to complete the emergent nature of small flood schemes all over Pakistan. 

    READ MORE: Average inflation estimated up to 12% in FY22

    An allocation of 227 billion rupees has been made for strengthening efficiency of transport and logistics for domestic commerce and regional connectivity. 

    The high impact infrastructure projects to be completed under Public Private Partnership mode include Sukkur-Hyderabad Motorway, Sialkot-Kharian Motorway, Kharian-Rawalpindi Motorway, and Karachi Circular Railway. Under the CPEC, D I Khan-Zhob section is under discussion with the Chinese side for financing and it is expected to be launched in the next financial year.

    READ MORE: SBP jacks up policy rate by 6.75% to 13.75%

    The concessional financing agreement for landmark ML-1 project is to be finalized in the second quarter of the next fiscal year and subsequently arrangements will be made for groundbreaking of the project.

    A comprehensive National Action Plan for agriculture modernization has been prepared in terms of capacity building, agricultural product processing technology extension, fishery science and technology, aquaculture and aquatic products processing.

    READ MORE: Tax to GDP ratio estimated at 10.8% in FY22: Economic Survey