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  • Pakistan MET issues alert for heavy rains, flooding

    Pakistan MET issues alert for heavy rains, flooding

    KARACHI: Pakistan Meteorological Department has issued alert for heavy rains and flooding in various parts of country from August 10, 2022.

    Rain-wind/thundershower (with isolated heavy falls) is expected in Kashmir, Islamabad, northeast Punjab, upper Khyber Pakhtunkhwa, eastern Balochistan and southeastern Sindh from 06th to 09th August with occasional gaps.

    READ MORE: KATI seeks precautionary measures before rains

    Rain-wind/thundershower (with scattered heavy falls) are expected in Kashmir, Gilgit-Baltistan, Islamabad, Punjab, Khyber Pakhtunkhwa, Sindh and parts of Balochistan from 10th to 13th August with occasional gaps.

    Possible Impacts:

    Heavy Rains may generate urban flooding in Rawalpindi/Islamabad, Peshawar, Nowshera, Mardan, Faisalabad, Lahore and Gujranwala on 08th and from 10th to 12th August.

    READ MORE: SBP issues options to make donation in PM flood relief fund

    Flash flooding is expected in local Nullahs of Islamabad/Rawalpindi, Shakargarh, Sialkot, Narowal, Abbottabad, Mansehra, Dir, Karak, Lakki Marwat, Bannu and Kashmir on 08th and from 10th to 12th August.

    Heavy Rains may generate urban flooding in Karachi, Thatta, Badin, Hyderabad, Dadu, Jamshoro, Sukkur, Larkana, Shaheed Benazirabad and Mirpurkhas from 11th to 13th August.

    Flash flooding is expected in Qilla Saifullah, Loralai, Barkhan, Kohlu, Mosa Khel, Sherani, Sibbi, Bolan, Kalat, Khuzdar, Lasbella, Awaran, Turbat, Panjgur, Pasni, Jiwani, Ormara, Gwadar and hill torrents of Dera Ghazi Khan during the forecast period.

    READ MORE: Floods affect telecom services: PTA

    Catchment areas of Ravi, Jhelum and Chenab may receive heavy downpour causing water level to rise significantly during the forecast period.

    Rainfall may trigger landslides in Kashmir, hilly areas of Khyber Pakhtunkhwa, Galiyat, Murree, Chillas, Diamir, Gilgit, Hunza, Astore, Ghizer and Skardu during the forecast period.

  • APTMA suggests measures to avoid Pakistan’s economic collapse

    APTMA suggests measures to avoid Pakistan’s economic collapse

    KARACHI: All Pakistan Textile Mills Association (APTMA) on Friday suggested the government to avoid economic collapse.

    The APTMA in a statement said that Pakistan is currently on the brink of economic collapse. With depleting foreign currency reserves, rising inflation, the exchange rate in free-fall and irrationally high interest rates, the country is headed towards a path similar to the economic downfall of Sri Lanka.

    “We at APTMA are pushing for all leaders and policymakers to develop a consensus on how to navigate from this situation of extreme distress and pull the economy out of this downward spiral. We recommend the following key areas for reform,” according to the statement.

    The association said a lack of political stability is a serious impediment to economic progress. Not only does it shorten policymakers’ horizons leading to suboptimal short term macroeconomic policies, but it is also the cause of frequent policy U-turns and leads to non-completion of ongoing projects. Stability and consistent policy implementation are crucial for economic growth and for the export sector to thrive and contribute dollar earnings to stabilize the Balance of Payments for a sustainable economic outlook.

    READ MORE: Govt. halts gas supply to export industry: APTMA

    The exchange rate is a major cause for concern. The ER instability has significant negative relationship with sectoral exports of Pakistan such as textile. A negative indication indicates that a rise in relative price is to blame for the decline in export demand. Pakistan has been under the grip of debilitating ER for quite some time now. The value of one dollar reached its highest point ever on 27th July 2022 when it hovered at around 237 Pakistani rupees. In the long run, the large devaluation of the rupee is worst for exporters especially textile exporters because it raises input costs, making exports less competitive.

    It is time to abandon the widespread misconception that exporters welcome rupee devaluation. The central bank and government should concentrate on achieving an ER that is competitive in the market and achieves actual exchange parity. Dollars earned through exports are the most sustainable with the added benefit of no compulsion to return them, no interest, and the cheapest with only 3-4% cost. Hence, focusing upon dollars generated through exports are far better option than bonds.

    Moreover, the need for a long-term policy featuring lower interest rates cannot be underestimated, and its implications for a brighter economic future which generates foreign currency, jobs and international recognition cannot be denied. We need more investments in Pakistan, alongside holistic policy reforms that lend confidence to investors and the markets. This need cannot be met with an interest rate of 15 per cent.

    READ MORE: APTMA demands continuation of energy tariffs

    Roadblocks to entrepreneurship and innovation need to be mitigated so that we can empower our youth and our disenfranchised talent to bring about a grassroots level economic revolution. We must rid our policymaking of the economic formula whereby interest rates are raised in order to stabilize the economy, as this can only be effective in certain Highly Developed Economies: a title which Pakistan’s economy is a long way off from attaining. The best mechanism is through supply-side interventions, bringing more individuals into the economy and increasing the labor supply – for which entrepreneurship and financial inclusion is critical.

    The current account deficit increased by 517 percent in FY22 compared to FY21. To counter the dangers of our mounting debt, we must immediately take the following steps:

    1) Reduce the import bill by at least $ 5 billion, especially energy’s, through ensuring energy efficiency.

    2) Shockingly, petroleum imports increased by 50 per cent in June 2022 in volume terms. Pakistan imported petroleum products worth $24 billion last year. Gas needs to be used for productive purposes only. At present gas is being supplied to ceramics, steel and glass also.

    3) Declare an energy emergency and introduce measures to conserve energy which can save Pakistan’s economy in more ways than one:

    READ MORE: Prolong Eid holidays to adversely affect exports: APTMA

    • Aggressive conservation – cuts import bills by more than 25 per cent and saves $6 billion.

    • Implement both Price & Administrative measures to curtail consumption.

    • Curtail domestic gas supply to reduce consumption & waste by 18 per cent UFG.

    • Single point Energy supply to Domestic Gas.

    • Fast track calibration of cooking burners to save 200 MMCFD of Gas/RLNG.

    4) Improve documentation and inclusion of unbanked persons

    5) Reduce external pressure ‘hawala’ from $10 – $5 billion by documentation as hawala can survive on undocumented sector only; introduce scheme whereby State Bank of Pakistan opens up bank accounts for those currently having no account with a pre-approved overdraft facility of Rs 10,000 that can be used as seed money for entrepreneurship.

    6) Revamp and improve the export paradigm by ensuring competitive tariffs and improved facilitation.

    Furthermore, we must take steps to add value in our exports and thereby improve global perceptions of Pakistan. This would require an environment that facilitates exporting industries to focus on quality improvement through new processes, thereby developing new products and entering fresh markets.

    With a myopic focus on short staple fiber raw cotton, we rely on a shrinking market while neglecting the rapidly expanding market for MMF. The MMF tariff regime effectively prevents Pakistan from aligning its products in tandem with the rest of the world. The duty protection given to obsolete plants in Pakistan is denying the Pakistani industry any chance to compete in this booming market, internationally or domestically. We must do away with such hurdles so that progress can be made in value addition, diversification and market expansion.

    Lastly, leaders must prioritize export-led economic growth. Enhanced exports enable the inflow of foreign currency to finance imports, service debt, stabilize exchange rates and to overcome the persistent problem of the balance of payment deficit.

    READ MORE: APTMA condemns lobbying for Indian yarn import

    The textile sector has performed exceptionally well in the last 2 years. Textile exports have increased by 43 percent in FY22 as compared to FY18. Textile industry has invested a sum of $5 billion over the past few years in new plant & machinery and upgradation.

    Further expansion and increase in exports are limited by the inconsistent availability of energy at Regionally Competitive Energy Tariffs (RCET). Given that the past export spur occurred due to the priority of the government to provide regionally competitive terms for the sector, this policy must be consistently maintained in the future to enable economic stability and subsequent growth.

  • Pakistan cement sales may fall 64% in July 2022

    Pakistan cement sales may fall 64% in July 2022

    KARACHI: The sales of cement in Pakistan is likely to fall by up to 64 per cent in the month of July 2022 on month on month (MoM) basis, analysts said on Friday.

    The analysts at Topline Securities said that Pakistan cement sales are expected to decline by 60-64 per cent MoM to 2.01 million tons with local dispatches likely to fall by 61-65 per cent MoM to 1.83 million tons mainly due to (i) monsoon season across the country, and (ii) higher base effect in June 22 owing to Eid holidays in May 2022.

    READ MORE: Lucky Cement announces Rs26.53 billion 9M profit

    On year on year (YoY) basis, cement sales in July 2022 are anticipated to decline by 46-50 per cent YoY. Local dispatches are likely to down by 45-49 per cent YoY primarily due to (i) slowdown in construction activity, and (ii) higher construction cost.

    Exports during July 2022 are likely to witness a downtick of 57-61 per cent YoY and 33-37 per cent MoM. The attrition in exports are on the back of global economic slowdown, disruption in global supply chain and higher sea freight charges.

    Industry utilization during July 2022 is estimated to clock in at 34-36 per cent vs. 67 per cent in the same period last year.

    READ MORE: Bank Alfalah posts 25% increase in half year profit

    The start of FY23 looks bleak despite summer season where usually the cement dispatches are higher as compared to the winter season. This shows a clear reflection of economic downturn where cost of all the construction materials are on a higher side thus eroding demand.

    Cement prices are hovering around Rs1,050/bag up 20 per cent from Rs875/bag in May due to, (i) higher coal prices (including Afghan Coal), (ii) rupee devaluation against US dollar, and (iii) higher fuel prices.

    READ MORE: Pakistan Tobacco’s profit falls on high taxes

    To highlight, Afghan coal prices (factory cost) increases by 33 per cent to Rs66kton as Afghan government raised ex-mine price and export taxes which were procured by the north cement industry players.

    With rising interest rates, expected slowdown in economic growth and contained PSDP, we expect cement dispatches to remain under pressure in FY23.

    READ MORE: Habib Bank posts 33% decline in half year profit

  • Experts highlight importance of female education

    Experts highlight importance of female education

    ISLAMABAD: Highlighting the importance of female education and the role it plays in country’s development, experts stressed on the role of academia, civil society and government towards making education compulsory for all and remove the bottlenecks in the implementation of Article 25A of the Constitution of Pakistan.

    Special emphasis was laid on eliminating discrimination against girls towards provision of their basic right.

    These thoughts were expressed by experts during National Conference on Girls Right to Education, organized by Awaz CDS Pakistan here.

    Chairperson National Commission on the Rights of Children (NCRC) Afshan Tahseen, emphasized on the need of developing national and provincial education policies that will benefit the whole country. She highlighted how government can monitor the enforcement and administration of current legislation and assess and solve the bottlenecks concerning equity and quality in imparting educational for all. Lack of Implementation of Article25A is central to all challenges being faced by children and youth in our country, she highlighted.

    Ali Kamal Chief SDGs Planning Commission of Pakistan, talked about current status of SDG-4 in the country and informed the factors hindering the implementation of Article 25 A. He said that, girls constitute the majority of Out of School Children (OOSC) population. He further said that SDG-4 is enabler to achieve all other 16-SDGs.

    Speakers at the conference appreciated Awaz CDS for providing such platforms to develop and monitor national and provincial education policies that will benefit all students, providing a valuable forum to share information and strategies to improve educational equity, advocating for girls education and related issues, and monitoring the work of government on education policies and programs.

    Convener at Parliamentary Research Group and Chief Executive, Vision 2047, Zafarullah Khan said that, there is a need to identify the reasons affecting education in the country. He said that Pakistan is a developing country and is far away from achieving the national and international educational targets. There are many stumbling factors in this regard like lack of educational funds; poor school facilities; poor management; absence of schools; unavailability of teachers; patriarchy and lack of awareness about the importance of education.

    Chief Executive Awaz CDS Pakistan, Mohammad Zia ur Rehman said that “more than one decade has passed when Article25A was passed by the Parliament of Pakistan whereas its implementation so weak that nothing has been witnessed beyond commitment. we demand Government to establish an effective tracking and reporting system to capture the gender specific expenditures of education system for better policy making”.

    He further said that to ensure education for every out-of-school girl in Pakistan by 2030, the provision of stipend / monetary incentive and nutritional support is necessary. He demanded to assign an identical e-identity number to every OOS girl specific with an identification of the target population and its location alongwith appropriate legislation to end child marriages.

    Malala Education Champion Marium Amjad Khan said that 3.3% of girls in Pakistan are married off under the age of 15 while 18.3% of girls married off are under the age of 18, so early marriage is a big barrier in girls secondary education besides number of other social and economic reasons. We should start with changing the mindset of people.

    There were panel discussions and various sessions in the conference in which speakers shared their knowledge and suggestions.

    During the session on “Policy to Action progress on Education”, speakers shared their thoughts and insights regarding Girls Right to Quality Secondary Education. Executive Director Bedari (Punjab), Anbreen Ajaib, Executive Director Mechanism for Rational Change (Balochistan), Sumera Mehboob, Executive Director- Pakistan Youth Change Advocates (Khyber Pakhtunkhwa), Areebah Shahid, National Coordinator Pakistan coalition for Education, Zehra Kaneez and Programs Director-AzCorp Entertainment (Sindh), Madiha Rehman shared situation from their respective provinces and provided the audience with the whole scenario of education system in Pakistan.

    This session was followed by sessions on “Development agenda and role of donor support”. Munazza Gillani Country Director Sightsavers International focused on inclusive and accessible  education. Sadie Hussain from ACTED shared solutions to ensure No Girl Leave Behind. Mahwish Afridi from Hashoo Foundation shared Tech Education Schools in the newly merged districts of Khyber Pakhtunkhwa and Zeeshan Noel from UNWOMEN focused on addressing patriarchal challenges to address girls education in Pakistan. A large number of representatives from government, academia, civil society, policy makers and educationists attended the event.

  • Pakistan introduces automated system for withholding tax payments

    Pakistan introduces automated system for withholding tax payments

    ISLAMABAD: Pakistan has introduced an automated system for real-time payment for withholding tax. The system has been introduced through the Finance Act, 2022 by making amendment to the Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR), the apex tax collecting agency of Pakistan, issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments introduced through the Finance Act, 2022 to the Income Tax Ordinance, 2001.

    READ MORE: Tax imposed on foreign payments made by exchange companies

    The FBR said that currently, withholding agents are required to collect and deduct tax at the time of making payment and deposit the same in government treasury within the prescribed time period.

    Similarly, withholding agents are required to file quarterly and annual withholding statements which consumes time and resources of taxpayers leading to increased compliance cost.

    Moreover, certain large withholding tax agents like banks, DISCOs, TELCOs, Government institutions etc. are still depositing tax through a single payment receipt for multiple taxpayers.

    READ MORE: Minimum tax for commercial importers enhanced: FBR

    “In order to streamline withholding tax collection and deduction mechanism, enabling provision for the placement of a fully automated system by the name Synchronized Withholding Administration and Payment System (SWAPS) has been introduced under section 164A of the Ordinance,” the FBR said.

    A withholding agent notified under section 164A will be called a SWAPS agent.

    The notified SWAPS agent will be integrated with Board and withholding tax will be deposited in government treasury on real time basis simultaneously at the time of making third party payment processed through SWAPS by the SWAPS agent.

    READ MORE: Tax through electricity connections on retailers, service providers

    It will also result in auto populated withholding statements thereby saving time and reducing cost of compliance for the business.

    SWAPS Payment Receipt (SPR) will be generated upon deposit of tax in this manner which will be a valid document for the purpose of claiming credit against tax payable under the provisions of this Ordinance.

    In case if a notified SWAPS agent fails to integrate with the Board in the manner prescribed, the said agent will not be eligible for credit under Part X of Chapter III of the Ordinance and exemption under any of the provisions of the Ordinance.

    READ MORE: FBR explains income tax on export of services

    All other provisions of the Ordinance not specifically dealt with in newly inserted section 164A will mutatis mutandis apply on a notified SWAPS agent.

    Corresponding changes have been made in section 164 of the Ordinance.

  • Pakistan’s population to double in 30 years: British High Commissioner

    Pakistan’s population to double in 30 years: British High Commissioner

    ISLAMABAD: British High Commissioner Christian Turner has said the population of Pakistan is going to double during next 30 years.

    (more…)
  • Fitch revises Pakistan’s outlook to negative

    Fitch revises Pakistan’s outlook to negative

    HONG KONG: Fitch Ratings on Monday revised Pakistan’s Outlook to Negative from Stable, while affirming its Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B-‘.

    (more…)
  • Civil societies welcome Pakistan for attending UN HLPF

    Civil societies welcome Pakistan for attending UN HLPF

    ISLAMABAD: The civil society of Pakistan appreciated the government’s presentation of voluntary national review (VNR) at the UN High Level Political Forum (HLPF) in New York.

    The civil society organizations (CSOs) on Friday pointed out addressing the reported regressions and stagnation on critical goals.

    It said that several concerns still exist on critical sustainable development goals (SDG) priorities in the absence of policy coherence, efficient implementation and review mechanisms.

    READ MORE: Need stressed on integrated approach for SDGs

    These concerns were expressed in a joint statement of representatives from a number of CSOs including Pakistan Development Alliance, Parliamentarians Commission for Human Rights, AwazCDS-Pakistan, Sightsavers Pakistan, Malala Fund UK, Save The Children, Umang Champions, The Brook International, UGOOD, PCE, PODA, HomeNet Pakistan, Roots for Equality, Karachi Research Institute and LifeSavers.

    Pakistan is attending the UN HLPF (July 5-15) in New York under the auspices of ECOSOC under the theme “Building back better from the coronavirus disease (COVID-19) while advancing the full implementation of the 2030 Agenda for Sustainable Development”.

    The HLPF also reviewed in-depth SDGs on quality education, gender equality, life below water, life on land, and partnerships for the goals.

    READ MORE: Fiscal reforms to help Pakistan generate funding to meet SDGs targets: IMF official

    During the session, representatives of 44 countries carried out voluntary national reviews (VNRs) of their implementation of the 2030 Agenda for Sustainable Development.

    The CSOs, while pointing out over 22 million children are out of school, called for holistic planning, equitable financing, and stronger political will to enhance the educational outcomes prioritizing the millions left behind.

    At least 4-6 per cent of GDP or 20-25 per cent of public expenditure must be ensured to protect peoples’ fundamental right to education, as per Article 25A, they suggested.

    READ MORE: SBP launches report on SDGs from banking perspective

    They were of the view that the gender equality requires multi-sectoral gender-sensitive planning based on comprehensive vulnerability assessment for achieving gender-responsive social protection, health and education outcomes, protection from violence and disasters, and protection of right to inheritance, employability and political participation.

    For the protection of civic spaces and democratic accountability, they emphasized for CSOs’ meaningful inclusion across agenda-setting and planning processes to avoid tokenistic representation.

    The resolved that the civil society needs a world that is considerate of our collective concerns upholding the ideals we all believe in.

  • Pakistan enforces austerity measures to save public money

    Pakistan enforces austerity measures to save public money

    KARACHI: Pakistan government has enforced austerity measures for the fiscal year 2022/2023 for saving public money and create space for development expenditures.

    The Federal Board of Revenue (FBR) on Friday circulated a notification of the ministry of finance related to austerity measures.

    READ MORE: Pakistan’s forex reserves drop to $15.61 billion

    According to the finance ministry that the federal cabinet in a meeting held recently approved the austerity measures.

    The federal government enforced the following austerity measures:

    1. There shall be complete ban on:

    READ MORE: SBP’s monetary policy tightening appropriate: IMF

    (i) Purchase of all types of vehicles from current and development budget except utility vehicles such as ambulances, busses for educational institutions, solid waste vehicles, etc.;

    (ii) Creation of new posts except those required for development projects;

    (iii) Treatment abroad at government expenses;

    (iv) Appointment of contingent paid / daily wages staff except for development projects;

    (v) Purchase of office furniture except for development projects;

    (vi) Purchase of machinery and equipment including air conditioners, microwave, fridge, photocopier, etc.;

    (vii) Official visits abroad by government functionaries where the Pakistan government funding is involved except obligator visits;

    READ MORE: US calls for strengthening bilateral trade with Pakistan

    (viii) Official lunches/dinners/hi-tea except for foreign delegations;

    (ix) Periodical, magazines, newspapers, etc.

    2. Principal Accounting Officers shall ensure that:

    (i) Consumption of utilities shall be reduced by 10 per cent;

    (ii) Existing entitlement for petroleum products for government functionaries should be reduced by 30 per cent;

    (iii) Avoidable travel should be curtailed by promoting use of Zoom / video links;

    (iv) Vacant / redundant / non-productive posts should be abolished.

    READ MORE: Gas price hike report baseless: Musadiq Malik

    3. In addition to above, federal government has further decided that:

    (i) The use of petroleum products by vehicles of ministries would be slashed by 40 per cent and security vehicles of cabinet members would be reduced by 50 per cent;

    (ii) VVIP cavalcades’ expenses would be reduced without compromising security.

    The federal government urged the provincial government should also adopt such austerity measures.

  • Limited resources affected from overpopulation

    Limited resources affected from overpopulation

    ISLAMABAD: The government of Pakistan on Tuesday discussed about the need to manage population growth to ensure provision of better human health, economic stability and social life of people.

    The recent data reveals that Pakistan is the 5th most populous country in the world, despite only being the 33rd largest in size.

    READ MORE: NITL declares dividends for funds in FY22

    While its huge population is constantly eating up national resources threatening the national life especially provision of sufficient healthcare as well as quality education, job opportunities, climate change, depleting water resources and even our national security.

    The government ministers showed concerns over the constant population growth and the resources which are quickly running out on the reference of the World Population Day on July 11, 2022.

    The Minister for Federal Health Services Abdul Qadir Patel said on the occasion that, “overpopulation always eats up national resources hindering the national prosperity. There is a misconception that family planning is meant to control child birth. In fact, this initiative was launched to ensure better health of mother and child.”

    READ MORE: Engro Polymer collaborates for industry-academia linkage program  

    Minister for Planning and Development Ahsan Iqbal discussed, about 60 per cent population in Pakistan is below the age of 30, who want to have better education and reasonable employment. However, with available resources in the country, perfect education facilities and jobs availability is a difficult task but we can improve it with practical measures.

    Federal Minister for Poverty Alleviation Shazia Marri, termed the overpopulation a major concern for development planning in Pakistan.

    She said, “If we maintain a balance between national population and resources it would ensure better health of people especially of mother and child.”

    READ MORE: ITMinds, Pak Qater enter into outsourcing arrangement

    She further said that “the data shows that maternal mortality ratio in Pakistan stands at 186 deaths per 100,000 live births. The need for family planning is staggeringly high in Pakistan.”

    She also said that the grassroots challenges are present such as misperceptions, lack of trained health staff, communication gap between the partners, and others.

    To make a real difference in this area and normalize family planning amongst the masses, we need to design and execute behavior change campaigns through use of media tools that reach out to everyone across the board, including rural and most marginalized communities.

    As part of the efforts to raise awareness about the importance of adopting family planning measures, KhairKhwah (campaign name means well-wisher) launched an advocacy campaign on the World Population Day with testimonial videos of government officials. These video testimonials directly speak out to the population of Pakistan on the link between overpopulation and problems facing Pakistan such as economic crisis, unemployment, healthcare etc. and encourage people to adopt family planning measures.

    READ MORE: SECP’s company registration goes up to 169,919 till May 2022

    At the same time, this campaign aims to mobilize the government officials and engage them to make commitments to address this growing issue.

    Names of Officials:

    Names of stakeholders:

    Dr Arif Alvi, President of Pakistan.

    Ahsan Iqbal

    Abdul Qadir Patel

    Dr Zaeem Zia

    Shazia Fatima Khuwaja

    Ali Jan Khan

    Dr. Zaher Gul

    Shazia Marri

    Taimur Khan Jhagra

    Riaz Hussain Pirzada