ISLAMABAD: Pakistan’s coalition government is expected to lay out ambitious fiscal targets in the 2024/2025 (July-June) budget on Wednesday that will help strengthen its case for a new bailout deal with the International Monetary Fund, officials and analysts said.
Pakistan is in talks with the IMF for a loan estimated to be anything between $6 billion to $8 billion to avert a default for an economy that is growing at the slowest pace in the region.
“The budget holds critical significance for Pakistan’s IMF program and must close the gap between our revenue collection and total expenditure; it is thus likely be contractionary,” said Ali Hasanain, head of the economics department at the Lahore University of Management Sciences.
Pakistan narrowly averted a default last summer thanks to a short-term IMF bailout of $3 billion over nine months.
While its fiscal and external deficits have been brought under control, it came at the expense of a sharp drop in growth and industrial activity as well as high inflation, which averaged close to 30 percent in the last financial year and 24.52 percent over the last 11 months.
The growth target for the upcoming year is expected to be higher at 3.6 percent compared to 2 percent this year and economic contraction last year.
Prime Minister Shehbaz Sharif has expressed public commitment to tough reforms since being elected in February elections, but high prices, unemployment and a lack of new job opportunities have piled political pressure on his coalition government.
Standard Chartered said in a note on the budget last month that fully implementing all the measures that the IMF is likely prescribing, such as increasing revenue through widening the tax base and power tariff hikes, will be tough for Sharif’s government.
“A weak coalition government, a vocal and popular opposition, and the difficulty of implementing deep-rooted structural reforms were seen as reasons for caution,” Standard Chartered said in the note.
“A key concern among local stakeholders was the risk that front-loading tough fiscal measures could face a backlash from the public,” it added.
It will also be the first test for new Finance Minister Muhammad Aurangzeb, formerly the chief of HBL, Pakistan’s largest bank, who was brought in by Sharif to formulate fresh policy solutions to address persistent problems in the $350 billion economy.
Previous finance ministers have shied away from thorny steps like cutting subsidies, reducing government spending and increasing tax revenues from politically sensitive sectors such as real estate, agriculture and retail.
Mustafa Pasha, chief investment officer at Lakson Investments, said he believes taking such steps would be difficult.
“Any attempt to tax agriculture, retail and real estate will likely be poorly structured and face legal challenges which will prevent any collection,” he said, although he added that failure to address IMF demands would likely lead to a delay in a new program which Pakistan cannot afford for long.
Another key point to look out for in the budget will be targets set for proceeds from privatization. Pakistan is looking to make its first major sale in nearly two decades as it sells a stake in its national airline.
It is expected to be the first in a series of sales of loss-making entities, particularly in the troubled power sector.
Pakistan’s budget will aim to set stage for IMF bailout
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Pakistan’s budget will aim to set stage for IMF bailout
- Pakistan is in talks with IMF for loan estimated to be between $6 billion to $8 billion
- PM Shehbaz Sharif has expressed public commitment to tough reforms since his election
KP government to deploy 40,000 security personnel to maintain law and order during Muharram
- Muharram, the first month of Islamic lunar calendar, witnesses religious processions by Shia Muslims across Pakistan
- KP Chief Minister Ali Amin Gandapur chairs high-level meeting to review security measures during Muharram
ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province will deploy around 40,000 security personnel to maintain law and order during the Islamic month of Muharram, the state-run Associated Press of Pakistan (APP) reported on Thursday.
Muharram is the first month of the Islamic lunar calendar which marks the anniversary of the Battle of Karbala, where the grandson of the Prophet Muhammad (PBUH), a revered figure in Shia Islam, was martyred.
Muharram also witnesses religious processions across Pakistan to the prophet’s grandson, prompting relevant authorities to devise elaborate security measures each year to prevent any disturbances.
“About 40,000 security personnel would be deployed for security purposes during the month of Muharram, whereas special contingents of the Frontier Constabulary (FC) and Pak Army would also be deployed for the security of the processions and gatherings in Khyber Pakhtunkhwa,” APP said in a report.
This decision was taken during a high-level meeting of the provincial government chaired by KP Chief Minister Ali Amin Gandapur to review security arrangements ahead of the holy month. Participants of the meeting were informed Muharram processions and gatherings would be held in 14 districts of the province.
Of these, eight districts have been reported as “most sensitive” while the rest have been declared as “sensitive” in terms of law and order and security arrangements, APP said.
“A central control room comprising representatives from all relevant departments and law enforcing agencies is also being set up at the Home Department for the purpose,” the state media said. “Processions and public gatherings would be monitored directly through CCTV cameras whereas display of arms, pillion riding and hateful wall chalking have also been banned.”
Authorities will suspend mobile phone services in sensitive districts of the province, while special measures to monitor social media pages to curb the spread of hateful content were also proposed in the meeting, the state media said. It added that the staff of health and rescue departments of the province would be assigned special duties to effectively deal with any untoward situation during Muharram.
“Maintaining law and order during the month of Muharram should be the top-most priority of all the stakeholders,” Gandapur was quoted as saying by APP. He said all relevant authorities, departments and agencies would have to fulfill their respective responsibilities in a timely manner.
“Moreover, he directed that religious leaders of different sects and elected public representatives should be approached as an effort to promote religious harmony and tolerance during Muharram,” APP said.
‘Khan-tastic’: Pakistan’s under-fire spinner takes consecutive four-fers in Lanka Premier League
- Pakistani spinner Shadad Khan takes 4-22, 4-21 figures against Galle Titans, Kandy in Lankan Premier League matches
- Khan has been under fire for lackluster bowling performances over past year-and-a-half, especially in ICC tournaments
ISLAMABAD: After a string of lackluster performances in the recently concluded T20 World Cup, Pakistan’s under-fire leg-spinner Shadab Khan notched two consecutive four-fers in the ongoing Lanka Premier League tournament this week.
Cricket analysts and critics have questioned skipper Babar Azam’s decision to include Khan regularly in Pakistan’s playing XI squad, especially in red-ball cricket formats, despite his abysmal performances with the ball in the past year-and-a-half.
Khan, who was once regarded as a top-all-rounder for Pakistan, has conceded expensive runs and failed to perform with the bat as well over the past couple of matches for Pakistan. However, Khan returned figures of 4-22 and 4-21 for the Colombo Strikers— the franchise he plays for in the Lanka Premier League— in their last two consecutive matches against the Galle Titans and Kandy on Wednesday and Tuesday, respectively.
“Khan-tastic,” the Strikers wrote on their social media platform, featuring a picture of the Pakistani leg-spinner. “Picking up from where he left last night.”
However, Khan’s 4-21 failed to deliver the Strikers the win as they lost to the Titans by seven runs in a thriller, courtesy of a fiery half-century by Niroshan Dickwells. On Tuesday against Kandy, Khan’s 4-21 figures were instrumental in the Strikers picking up a comfortable 51-run victory over their opponents.
Angry cricket fans and commentators have demanded the Pakistan Cricket Board (PCB) take drastic measures to improve the national squad’s performance after Pakistan’s dismal performance in the T20 World Cup last month.
The South Asian country lost to minnows USA in their tournament opener and later to India, forcing them to crash out of the tournament in the first round. This was Pakistan’s second dismal performance within the last 12 months in an ICC tournament, as the green shirts failed to perform up to the mark in the 50-over ICC World Cup in India last year. Azam’s side lost to India, Australia, Afghanistan, South Africa and England, which meant Pakistan failed to qualify for the semifinal stages of the tournament.
PCB Chairman Mohsin Naqvi told reporters last month he would perform a “surgery” to improve the team’s performance. However, he has so far not announced any major decisions related to the cricket team.
Scientists from Pakistan, other OIC countries begin vaccine development training in Jakarta
- Program to strengthen vaccine development and manufacturing capabilities within Organization of Islamic Cooperation countries
- Features twelve researchers from Indonesia, Cameroon, Kazakhstan, Malaysia, Egypt, Pakistan, Somalia, Tanzania, and Uganda
ISLAMABAD: Scientists from Pakistan and other Organization of Islamic Cooperation (OIC) member states are taking part in a month-long vaccine development training program in Jakarta, the state-run Associated Press of Pakistan (APP) reported on Thursday.
The third phase of the training program has been launched by the Standing Committee for Scientific and Technological Cooperation (COMSTECH), one of the four OIC standing committees, in collaboration with Indonesia’s health ministry, vaccine developer PT Bio Farma and the Padjadjaran University.
Twelve researchers from Indonesia, Cameroon, Kazakhstan, Malaysia, Egypt, Pakistan, Somalia, Tanzania, and Uganda have been enrolled in the program for training in virology and vaccine technology.
The third phase of the month-long training program is being held in Jakarta and will also be conducted in Bandung, West Java. The first two phases of the same program were conducted in Indonesia in 2022 and 2023.
“The program offers a comprehensive learning experience, encompassing the workshops, industry visits, and laboratory training,” APP said.
Trainees will undergo intensive training at PT Bio Farma’s laboratory and central laboratories of UNPAD Bandung and Jatinangor.
“The program is designed to foster knowledge sharing and equip researchers with the necessary skills and expertise in virology and vaccine technology,” APP said. “Ultimately strengthening vaccine development and manufacturing capabilities within OIC member countries.”
Indonesia’s Health Minister Budi Gunadi Sadikin stressed the role of the program in strengthening the capabilities of researchers from OIC countries in vaccine manufacturing.
“He highlighted the importance of expanding vaccine research and development beyond developed nations, aiming for a more equitable global vaccine production capacity,” APP said.
A vital part of the OIC, COMSTECH aims to strengthen cooperation among member states in science and technology and enhance their capabilities through training in emerging areas.
Pakistan blocks 210,000 SIM cards to encourage tax payment
- Only 2.5 million people out of over 240 million people filed income tax returns two years ago in 2022
- Pakistan is struggling to increase revenue base but is hampered by largely undocumented economy
KARACHI: Pakistan’s tax authority said Thursday it has blocked 210,000 SIM cards of users who have not filed tax returns in a bid to widen the revenue bracket.
Only 5.2 million people of the more than 240 million population filed income tax returns in 2022.
The Federal Board of Revenue (FBR) passed the edict in April and has since sent orders to the telecommunications authority to block the connections of 210,000 SIM cards, with 62,000 of them later restored, according to the board’s data.
“We have unblocked the SIMs of those who have paid their taxes,” FBR public relations official Bakhtiar Muhammad said.
“Nobody voluntarily comes up and pays taxes. We have to make ways for the people to pay their taxes.”
Pakistan has more than 192 million cellphone subscribers and four telecommunications service providers, according to the telecommunication authority.
Pakistanis must register a SIM card with their national identity number, which is often used for multiple connections.
“Access to telecom services is a basic human right and essential for many other fundamental services, including access to information, education, and emergency services,” an official at one of the four telecommunications companies told AFP on the condition of anonymity.
“We are in dialogue with the authorities, convincing them to use technology to help increase tax collection, as abrupt measures could disrupt the provision of these critical services.”
The South Asian country is struggling to increase its pitifully low revenue base but is hampered by a largely undocumented economy.
The government has been pushing for more loans from the International Monetary Fund to help balance its books but the lender wants Islamabad to do more to mobilize its own resources.
“This is an absurd move. Not everyone who has SIMs earns enough to fall under the tax-paying category,” Fareiha Aziz, a digital rights activist, told AFP.
“People’s livelihoods are tied to their phones, this is an overreach.”
The four telecommunications companies warned in a letter to the ministry of information technology in June that the new tax measures against non-tax filing cellphone users were “impractical” and “non workable” and would scare away foreign investment.
Tauseef Gilani, a 66-year-old businessman in Islamabad, said the novel move was going too far.
“Whatever income I earn, it’s my responsibility to contribute back to society,” Gilani said.
“However, blocking SIMs is unjust — it infringes upon freedom of expression and violates rights.”
Pakistan’s disaster management authority forecasts ‘significant’ rainfall, flash floods across country till July 9
- Heavy rains may cause flash floods across northern Punjab, Khyber Pakhtunkhwa and Azad Kashmir, warns disaster management authority
- Advises authorities and masses to take necessary precautions to mitigate potential impacts of floods and landslides across Pakistan
ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) on Thursday forecast “significant rainfall” in many regions of the country till July 9, warning the downpours could cause flash floods.
Last week, the NDMA warned of heavy rains in Pakistan’s Sindh and Punjab provinces, saying they could face an “emergency” situation. Pakistan is recognized as one of the most vulnerable countries to climate change effects in the world. Unusually heavy rains in June 2022 triggered flash floods in many parts of the country, killing over 1,700 people, inflicting losses of around $30 billion, and affecting at least 30 million people.
Prime Minister Shehbaz Sharif formed a high-level committee to tackle any potential emergencies brought about by the monsoon floods.
“NDMA’s National Emergencies Operation Center (NEOC) anticipated significant rainfall across various regions of Pakistan until 9th July, 2024,” the disaster management authority said. It added that the heavy rainfall may cause urban flooding and rapid rises in water levels in nullahs and trigger flash floods across northern Punjab (Sialkot), KP and Azad Kashmir.
“Additionally, this precipitation is expected to result in high discharge levels within the eastern rivers,” the NDMA said. “Sutlej River is expected to experience a low flood stage with approximately 50,000 cusecs of water while Kabul River is predicted to reach a medium flood level with approximately 95,000 cusecs.”
The NDMA said extreme rainfall may also trigger additional releases from Indian reservoirs such as Salal, Bhakra, and Pong Dam, which could directly impact the Chenab and Sutlej rivers in Pakistan.
The NEOC predicted moderate to heavy rainfall in GB until July 8, 2024, warning it could trigger flash floods in local nullahs putting areas such as Chigar and Khaplu.
“Slightly heavy rainfall is expected in Gilgit-Baltistan, KPK, northern parts of Balochistan, and AJK until July 8, 2024,” the NDMA said. “The persistent heavy to moderate rains may cause localized landslides at Karakoram Highway along Hunza and some of the areas of District Nagar, Gilgit, Diamir, Kohistan, Battagram, Mansehra, and Abbottabad, potentially disrupting traffic flows and cutting off far-flung areas from main roads.”
The disaster management authority warned authorities and masses to take all necessary precautions to mitigate the impact of the floods and landslides. It said emergency response teams had been alerted and resources are being mobilized to ensure a “swift response” to any arising situations.
“Tourists are advised to avoid traveling to these areas during the forecasted period,” the NDMA said.
