Current Final

Category: Business

  • Sindh govt allocates Rs10 billion for buying 500 hybrid buses

    Sindh govt allocates Rs10 billion for buying 500 hybrid buses

    The Sindh government, under the leadership of Chief Minister Murad Ali Shah, has taken a significant step towards enhancing the public transportation system by allocating a substantial amount of Rs10 billion in the provincial budget for the fiscal year 2023-24. This allocation is specifically aimed at procuring 500 hybrid buses, which are known for their superior environmental performance and fuel efficiency.

    In addition to the allocation for hybrid buses, the provincial Transport Department has been granted a total of Rs13.4 billion. Within this allocation, Rs6.1 billion has been earmarked for the development of the ‘Intra-District Peoples’ Bus Service,’ which will greatly benefit commuters within the province. Furthermore, Rs2 billion has been dedicated to the maintenance of transport infrastructure, ensuring the sustainability and longevity of the transportation network.

    Recognising the importance of expanding the reach of public transportation, the PPP-led government has also allocated Rs600 million for the establishment of new routes. This investment will provide greater accessibility and convenience to the residents of Sindh.

    Moreover, keeping in mind the needs of the employees at the Sindh secretariat, the government plans to initiate three new routes from the following year, with a budget provision of Rs6 million. This initiative reflects the government’s commitment to improving the transportation options available to its citizens and creating a conducive work environment for the public servants.

    During the budget session in the Sindh Assembly, Chief Minister Syed Murad Ali Shah, who also serves as the Finance Minister, presented the overall budget for the fiscal year 2023-24. The total outlay of the budget for the province is estimated at an impressive Rs2244 billion, reflecting the government’s dedication to promoting growth and development across various sectors.

    The decision to procure hybrid buses stands out as a commendable choice by the Sindh government. Hybrid buses offer numerous advantages over conventional buses, particularly in terms of environmental impact and cost savings. By utilising both an internal combustion engine and an electric motor, hybrid buses significantly reduce harmful emissions, making them more environmentally friendly.

    Additionally, their fuel efficiency leads to lower operational costs, saving valuable resources in the long run. These hybrid buses will not only provide a reliable and comfortable mode of transportation but also contribute to a cleaner and more sustainable future for the residents of Sindh.

    Overall, the budget allocation for the procurement of hybrid buses showcases the Sindh government’s commitment to modernising public transportation and promoting sustainable practices. It is a positive step towards enhancing the quality of life for the people of Sindh and reducing the carbon footprint of the province.

  • ‘No need to panic’: PM Shehbaz hopes Pakistan and IMF will sign deal this month

    ‘No need to panic’: PM Shehbaz hopes Pakistan and IMF will sign deal this month

    Prime Minister Shehbaz Sharif reiterated on Sunday that Pakistan has successfully fulfilled all the prerequisites set by the International Monetary Fund (IMF) to revive the halted bailout program. He expressed confidence that no obstacles remain in finalising a staff-level agreement between the nation and the IMF, emphasising that Pakistan is committed to resolving its financial challenges.

    During the inauguration of the Sabzazar Sports Complex in Lahore, Prime Minister Shehbaz hinted at a contingency plan, stating, “If there are further delays in reaching an agreement with the IMF, I will address the situation.” He urged the public not to panic, assuring them that Pakistan will be safeguarded by the divine will of Allah. He expressed hope that the government and the IMF will achieve a staff-level agreement within the current month.

    Highlighting the significance of political stability, the Prime Minister emphasised its crucial role in ensuring economic stability. He pledged to bring about economic prosperity in the country under the leadership of PML-N supremo Nawaz Sharif.

    In strong criticism of the former ruling party, Prime Minister Shehbaz held deposed Prime Minister Imran Khan responsible for the events of May 9 and vowed to bring all those involved in the violent protests and attacks on civil and military installations to justice.

  • First-ever discounted Russian crude oil cargo arrives in Karachi

    First-ever discounted Russian crude oil cargo arrives in Karachi

    Under a newly established agreement between Islamabad and Moscow, the inaugural shipment of discounted Russian crude oil arrived in Karachi on Sunday, marking the beginning of enhanced trade relations between the two nations.

    Departing from Russia over a month ago, the oil cargo reached Pakistan via Oman. Officials announced that the unloading process would commence on Monday, with the oil undergoing processing at the Pakistan Refinery Limited (PRL).

    During its lengthy voyage, the 100,000 metric ton oil shipment was divided into two parts in Oman due to the Karachi port’s limited capacity to accommodate larger vessels. Subsequently, two smaller ships, each carrying 50,000 metric tons of oil, embarked on their journey to Karachi.

    Upon the cargo’s arrival, Prime Minister Shehbaz Sharif expressed his enthusiasm on Twitter, describing Sunday as a “transformative day” and affirming the fulfillment of his commitment to the nation.

    He expressed the belief that these developments would contribute incrementally to prosperity, economic growth, energy security, and affordability. The Prime Minister further recognised and commended all those involved in this national endeavor who helped turn the promise of Russian oil imports into reality.

    Sources indicate that this Russian oil shipment will not be subject to the existing domestic oil pricing mechanism in the country. Consequently, the PRL will assume the benefits or losses associated with the Russian oil. Additionally, the sources stated that this shipment serves as a test case to evaluate the quality of the crude oil and the ratio of refined products. A report will be submitted to the federal government to inform future decisions regarding long-term commercial oil agreements.

    Pakistan had secured its order for the initial cargo of Russian crude oil at a discounted rate of up to $18 per barrel. Following the Platts crude oil prices, Islamabad applied a discount ranging from $16 to $18 per barrel, according to insider information.

  • Budget 2023-24: How much tax will you pay on your salary?

    Budget 2023-24: How much tax will you pay on your salary?

    Finance Minister Ishaq Dar presented a comprehensive budget proposal of Rs14.46 trillion for the fiscal year 2023-24, emphasising an expansionary approach. One of the key highlights of the proposal was a substantial increase in the salaries of government employees, aimed at providing much-needed relief.

    In order to ensure that the burden on the salaried class remained unchanged, the coalition government decided not to make any alterations to the existing tax slabs, which were approved in the previous year’s Finance Bill of 2022.

    Outlined below are the tax slabs for different income brackets:

    1. Income below Rs600,000 per year (Rs50,000 per month):

       – No tax will be deducted.

    2. Income between Rs600,000 to Rs1.2 million per year (Rs50,000 to Rs100,000 per month):

       – Tax will be levied at a rate of 2.5 per cent on the amount exceeding Rs600,000.

    3. Income between Rs1.2 million to Rs2.4 million per year (Rs100,000 to Rs200,000 per month):

       – Tax will be levied at a rate of Rs15,000 plus 12.5 per cent on the amount exceeding Rs1.2 million.

    4. Income between Rs2.4 million to Rs3.6 million per year (Rs200,000 to Rs300,000 per month):

       – Tax will be levied at a rate of Rs165,000 plus 20 per cent on the amount exceeding Rs2.4 million.

    5. Income between Rs3.6 million to Rs6 million per year (Rs300,000 to Rs500,000 per month):

       – Tax will be levied at a rate of Rs405,000 plus 25 per cent on the amount exceeding Rs3.6 million.

    6. Income between Rs6 million to Rs12 million per year (Rs500,000 to 1,000,000 per month):

       – Tax will be levied at a rate of Rs1.005 million plus 32.5 per cent on the amount exceeding Rs6 million.

    7. Income exceeding Rs12 million per year (exceeding Rs1,000,000 per month):

       – Tax will be levied at a rate of Rs2.955 million plus 35 per cent on the amount exceeding Rs12 million.

    These tax slabs have been carefully designed to ensure a fair and balanced approach to income taxation, considering various income brackets. By maintaining consistency with the previous year’s tax slabs, the government aims to alleviate the burden on the salaried class while still generating the necessary revenue for public welfare and development initiatives.

    Overall, the budget proposal presented by Finance Minister Ishaq Dar reflects the government’s commitment to supporting government employees and maintaining a progressive tax system that promotes economic growth and fairness.

    Tax slabsAnnual incomeMonthly incomeTax rate
    Slab 1Below Rs600,000Below Rs50,000No tax deducted
    Slab 2Rs600,000 – Rs1.2 millionRs50,000 – Rs100,0002.5 per cent of the amount exceeding Rs600,000
    Slab 3Rs1.2 million – Rs2.4 millionRs100,000 – Rs200,000Rs15,000 + 12.5 per cent of the amount exceeding Rs1.2 million
    Slab 4Rs2.4 million – Rs3.6 millionRs200,000 – Rs300,000Rs165,000 + 20 per cent of the amount exceeding Rs2.4 million
    Slab 5Rs3.6 million – Rs6 millionRs300,000 – Rs500,000Rs405,000 + 25 per cent of the amount exceeding Rs3.6 million
    Slab 6Rs6 million – Rs12 millionRs500,000 – Rs1,000,000Rs1.005 million + 32.5 per cent of the amount exceeding Rs6 million
    Slab 7Above Rs12 millionAbove Rs1,000,000Rs2.955 million + 35 per cent of the amount exceeding Rs12 million
  • Budget 2023-24 prioritises promoting economic growth, says Ishaq Dar

    Budget 2023-24 prioritises promoting economic growth, says Ishaq Dar

    Federal Minister for Finance and Revenue, Ishaq Dar, delivered a comprehensive assessment of the FY2023-24 budget during a post-budget press conference in Islamabad. He highlighted the distinctive nature of this budget compared to previous traditional budgets, emphasising its focus on fostering economic growth.

    Dar shared that the coalition government is committed to addressing the concerns of traders before finalising the federal budget in parliament. In order to accomplish this, he announced the formation of two committees to address business-related issues and technical matters.

    These committees, customary within the Federal Board of Revenue (FBR), will be established by the FBR chairman by Monday. Their purpose is to ensure comprehensive consideration of any overlooked aspects and provide a platform for individuals to voice genuine reservations.

    The finance minister refuted claims of introducing new taxes this year and emphasised the government’s efforts to provide substantial relief. He defended the allocation of Rs950 billion and Rs200 billion from the Public and Private Partnership mode, considering it a notable achievement. Dar reiterated the budget’s departure from traditional approaches, with a strong emphasis on fostering progress and economic growth.

    Dar expressed the government’s determination to rectify past economic losses by promoting employment opportunities, curbing inflation, and generating more jobs. Consequently, he anticipated a decrease in the policy interest rate.

    Read more: Govt allocates only Rs97 billion for education in budget 2023-24

    The minister projected inflation to be around 21 per cent in the upcoming fiscal year (2023-24), while estimating government expenditure at Rs14,040 billion.

    Addressing the power sector, Dar allocated over Rs1900 billion exclusively for its development. He stressed the importance of implementing necessary reforms to improve this sector. He also clarified that no new subsidies would be introduced in the renewable energy sector, despite its prominence in the budget.

    Furthermore, the minister addressed rumors regarding the withdrawal of edible oil, refuting such claims and affirming that no such action had been taken.

  • Govt allocates only Rs97 billion for education affairs and services in budget 2023-24

    Govt allocates only Rs97 billion for education affairs and services in budget 2023-24

    The federal government has designated a budget of only Rs97.098 billion for education affairs and services in the fiscal year 2023-24. This allocation reflects a 5.5 per cent increase compared to the revised allocation of Rs91.777 billion for the current fiscal year.

    Pakistan’s public expenditure on education, as a per centage of GDP, is estimated to be 1.7 per cent in the fiscal year 2022-23, a slight increase from 1.4 per cent in the previous year. However, this figure remains the lowest in the region.

    Of the total allocation, the bulk of expenditure amounting to Rs76.589 billion has been allocated for Tertiary Education Affairs and Services in the budget for 2023-24, accounting for 79 per cent of the total allocation under this category.

    Furthermore, the government has designated Rs4.468 billion for pre-primary and primary education affairs in the upcoming fiscal year, compared to Rs3.786 billion in 2022-23. Additionally, Rs10.778 billion has been earmarked for Secondary Education Affairs and Services in 2023-24, as opposed to Rs8.863 billion in the previous year.

    The budget for administration has also increased, with Rs3.698 billion allocated compared to the revised figure of Rs2.010 billion for 2022-23, which was later revised to Rs2.430 billion.

    Since the implementation of the 18th Constitutional Amendment, education has been devolved to the provinces, making the federal government primarily responsible for financing higher education.

    According to budget documents, the Higher Education Commission (HEC) has been allocated Rs59.71 billion under the Public Sector Development Programme (PSDP) for 2023-24, a significant increase from the previous year’s allocation of Rs44.718 billion.

  • Govt increases defence budget by 16% to Rs1.8 trillion

    Govt increases defence budget by 16% to Rs1.8 trillion

    In response to the prevailing internal and external security challenges faced by Pakistan, the federal government has put forward a proposal for a substantial 16 per cent rise in the defence budget. According to the budget document, the allocation for defence in the fiscal year 2023-24 is projected to be Rs1,804 billion, signifying an increase from the revised defence spending of Rs1,591 billion assigned for the outgoing fiscal year.

    Experts opine that the justification for a 15.7 per cent surge in the defence budget stems from the record inflation and devaluation of the rupee against the dollar witnessed over the past year. A detailed examination of the budget reveals that the figure of Rs1,804 billion excludes Rs563 billion designated for retired military personnel pensions, Rs280 billion for the armed forces development program and other crucial expenses, and Rs58 billion for UN peacekeeping missions.

    According to the 2023-24 budget document, out of the total defence allocation, Rs705 billion has been set aside for employee-related expenses, Rs442 billion for operational costs, Rs461 billion for local purchases and import of arms and ammunition, and Rs195 billion for civil works. Interestingly, all three branches of the military—the army, navy, and air force—have received equal budget increments, albeit with the army receiving the largest share due to its size and role.

    Pakistan’s defence spending currently accounts for 1.7 per cent of its GDP, representing a decline compared to the previous year. In the 2022-23 fiscal year, defence spending constituted around 2 per cent of the country’s GDP, which expanded due to the reevaluation of the economy.

    When comparing the average spending per soldier, Pakistan allocates $13,400, while India dedicates $42,000, Saudi Arabia $371,000, Iran $23,000, and the United States allots a substantial $392,000 annually. It is important to note, however, that the disparity lies in the significant disparity in the sizes of their respective economies compared to Pakistan’s.

    Defence expenditure has consistently been a topic of discussion, with some advocating for greater transparency and open debate regarding the military budget. In recent years, the government has provided more detailed information about the defence budget. Nevertheless, there has been no open parliamentary debate on the subject. Observers argue that the increase in the defence budget is warranted, considering the imminent external and internal security challenges faced by the country.

    Despite the withdrawal of US troops from neighbouring Afghanistan, Pakistan continues to deploy a substantial number of troops along its western border and erstwhile tribal areas to combat the threat of terrorism. Similarly, tensions persist between Pakistan and India, although the restoration of a ceasefire has provided some respite.

  • Govt employees of grades 1-16 to receive 35% salary raise in FY2023-24 budget

    Govt employees of grades 1-16 to receive 35% salary raise in FY2023-24 budget

    In response to the ongoing challenges posed by significant inflation, the federal cabinet has granted its approval to the budget proposals for the upcoming fiscal year 2023-2024.

    As part of these measures, the salaries of government employees will be enhanced by up to 35 per cent, based on the recommendations put forth by various stakeholders. This decision aims to alleviate the hardships faced by the less privileged segments of society.

    Furthermore, the government has sanctioned a 17.5 per cent increment in pensions for the fiscal year 2023-2024. Employees falling within grades 1-16 will benefit from a salary raise of 35 per cent, whereas those in higher grades, above grade 17, will experience a 30 per cent increase in their salaries. Moreover, the government has established a minimum wage of Rs32,000.

    In addition to salary adjustments, the Pay and Pension Commission has proposed a 100 per cent rise in medical and conveyance allowances for government employees, along with a 10 per cent increase in ad hoc allowances. These recommendations are being taken into careful consideration by the government.

    The approval of the budget proposals reflects the government’s commitment to address the economic challenges faced by the country and provide relief to its citizens.

  • Govt targets non-filers with 0.6% tax on cash withdrawals more than Rs50,000

    Govt targets non-filers with 0.6% tax on cash withdrawals more than Rs50,000

    The federal government has announced the implementation of a flat 0.6 per cent tax for individuals who are not listed on the Federal Board of Revenue’s (FBR) Active Taxpayer List (ATL). This taxation policy, as outlined in the budget documents, aims to facilitate the documentation of the economy.

    As per the official document, the government has chosen to impose a tax rate of 0.6 per cent on cash withdrawals exceeding Rs50,000.

    The primary objective behind this initiative is to record the cash withdrawal data of individuals who are not on the ATL and encourage them to increase their transactional expenditure. The intention is to attract more individuals to become part of the tax system.

    It is important to note that this legislation was previously in effect but was repealed by the previous administration through the Finance Bill 2021. However, certain significant measures introduced under the Finance Act 2022 to address non-compliance were not effectively enforced.

    Consequently, the government has now made the decision to strictly enforce these measures in order to enhance the country’s tax revenue.

  • Budget 2023-24: Finance Minister announces tax relief measures for IT sector and freelancers

    Budget 2023-24: Finance Minister announces tax relief measures for IT sector and freelancers

    In a recent announcement, the federal government has unveiled a series of measures aimed at fostering growth and investment in the freelancing and information technology (IT) sectors. The government has decided to implement a reduction in tax rates for investments in the IT sector, provide tax breaks to freelancers, and establish a favorable environment for investment by normalizing duty-free equipment provisions.

    During the budget presentation for the fiscal year 2023-24, Finance Minister Ishaq Dar highlighted the importance of the IT sector and its immense talent pool within the country. To support the growth of IT exports, the government plans to extend the current 0.25 per cent discounted income tax rate for the next three years.

    Recognizing the significance of banks in facilitating investment in the IT sector, the finance minister proposed a reduced tax rate of 20 per cent for banks involved in lending to this sector. This reduction aims to alleviate the burden on banks, as the existing tax rate for investments stands at 39 per cent.

    Additionally, the government has recommended providing Duty-Free Equipment privileges to incentivize investment in the IT sector. Moreover, the minister has suggested granting the industry the status of Small and Medium Enterprises (SMEs), enabling individuals to avail themselves of special and exclusive discounted income tax rates applicable to this sector.

    In a move to streamline processes for IT and IT-related services exporters, Minister Dar proposed the issuance of Automated Exemption Certificates to non-residents within 30 days. Furthermore, the government plans to reduce the Goods and Services Tax (GST) from 15 per cent to 5 per cent specifically for IT and ITeS services in the Islamabad Capital Territory (ICT).

    To support the freelancing community, Minister Dar recommended exempting individuals from the obligation of filing a sales tax return in order to benefit from the concessional rate of 0.25 per cent. Emphasizing the vital contribution of freelancers to the country’s foreign exchange earnings, the minister suggested that those whose IT and IT-enabled services exports were less than $24,000 in the previous fiscal year should be exempted from sales tax registration and allowed to file a simplified single-page income tax return.

    These measures underscore the government’s commitment to fostering a conducive business environment and encouraging investment in the freelancing and IT sectors, thereby facilitating economic growth and job creation.