Latest news with #18thAmendment
Business Recorder
3 days ago
- Business
- Business Recorder
Finance Bill 2025: PBF urges PM to repeal Sections 37AA and 37B
KARACHI: The Pakistan Business Forum (PBF) has formally appealed to Prime Minister Shehbaz Sharif to repeal Sections 37AA and 37B from the Finance Bill 2025 before its passage in Parliament, citing serious concerns over the adverse impact these provisions could have on legitimate business operations and investor confidence. In a letter addressed to the Prime Minister, PBF President Khawaja Mehboob ur Rehman expressed deep concern over what he described as 'regressive taxation measures,' particularly those that significantly expand the enforcement powers of the Inland Revenue Services. Rehman pointed to Sections 14AC, 14AD, 37B, and especially 37AA, which authorizes Inland Revenue officers to make arrests, as creating a 'highly concerning environment' that may lead to harassment of businesses. 'These provisions risk damaging the already fragile investor confidence and could have a chilling effect on economic activity across key sectors,' Rehman stated. He called for a serious review and amendment of these clauses prior to the bill's approval. The letter also addressed the government's neglect of the agricultural sector in the Finance Bill, despite agriculture being a devolved subject under the 18th Amendment. Rehman emphasized the need for meaningful fiscal relief and policy incentives, particularly for local cotton production. 'Despite the Ministry of National Food Security's assurances, no GST relief has been offered for domestic cotton, making it difficult for local producers to compete effectively,' the letter read. 'This lack of support not only harms local growers but also undermines Pakistan's textile industry; a vital contributor to employment and exports.' President Rehman reminded the Prime Minister of his longstanding support for the revival of cotton and expressed hope that the concerns of the business community would be addressed urgently. 'We trust your vision and your deep ties with the business community,' he concluded. 'We urge you to ensure that these problematic provisions are repealed before the Finance Bill is finalized.' Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
Barbs fly during Sindh assembly budget session
KARACHI: Opposition slammed the fiscal budget 2025-26 as discriminatory and dubbed it 'the darkest budget in Sindh's history', while the treasury hailed the financial plan as balanced and pro-people, during the Sindh Assembly session on Tuesday. Lawmakers from both the treasury and opposition benches also engaged in fiery exchanges during the budget debate that entered the second day as a tense atmosphere gripped the legislature The session was chaired by Deputy Speaker Anthony Naveed. Opening the floor, PPP MPA Yousuf Baloch praised Chief Minister Syed Murad Ali Shah and his team for crafting a people-centric budget in the face of stringent IMF conditions and limited funds. 'It was no easy task, but we relied on our own resources to ensure that the budget serves the people,' he remarked. He also defended Sindh's education performance, claiming it fared better than other provinces and would further improve through fresh teacher recruitment. PPP lawmaker Hina Dastagir affirmed the Chief Minister's capacity to deliver for the public, while Arooba Rabbani said health and education had received special attention, including Karachi's academic institutions. She noted that Shahrah-e-Bhutto would be completed this fiscal year. 'PPP's work is always visible on the ground,' she said. From the opposition benches, MQM's Faheem Patni lamented that no authority was responding to the severe public issues in his constituency. 'I've told my people that the PPP government will not provide them even drinking water,' he said. 'This budget won't change the lives of ordinary citizens— it will only benefit those who made it.' PPP MPA Sarfraz Shah extended congratulations to the leadership for a 'commendable budget' and requested that a branch of NICVD be established in Naushero Feroze. He also called for reconstruction of flood-damaged schools. MPA Khair-un-Nisa Mughal urged authorities to hand over vacant athlete hostels in Mirpurkhas to local universities and thanked Minister Sharjeel Inam Memon for launching the People's Bus Service there. MQM's Moid Anver highlighted sewage water entering a cemetery in PS-101 Essa Nagri and lamented 'Karachi's marginalization' despite contributing 60% of federal revenues. 'PPP has done nothing for the people in its 17-year rule,' he asserted. PPP MPA Pir Mujeeb ul Haq said all development in Sindh had happened under PPP's tenure, citing the 18th Amendment for increasing provincial budgets. He called for Sindh University's Dadu campus to be granted full university status and urged federal authorities to expedite the long-stalled Gaj Dam project. PPP's Seema Khurram said the Benazir Hari Card continued to benefit thousands of farmers and congratulated the CM and his team on a progressive budget. MPA Noor Muhammad Bhurgari noted incomplete roads in Badin and called for their completion. Opposition MPA Naseer Ahmad criticised the government's neglect of Manghopir, claiming the area was treated 'like a foreign territory,' and accused PPP of enabling land mafias. 'They should rename themselves 'Pet Palan Party',' he quipped. PPP's Agha Siraj Durrani cautioned against personal attacks and reminded members to focus on policy matters, not party names. Panel Chairperson Rehana Leghari expunged objectionable remarks made about PPP. PPP's Jam Shabbir Ali called for unity, emphasiwing that 'Karachi is the capital of Sindh and belongs to all of us.' Faqeer Sher Muhammad criticised low budget allocation for the Sukkur-Hyderabad Motorway and suggested converting diesel-run RO plants in Thar to solar due to fuel shortages. MQM's legislator Nasir Qureshi accused the government of under-funding Hyderabad's healthcare. He questioned why the President had to be flown to Karachi when the Gambat Institute exists and noted the ICU in Civil Hospital Hyderabad lacked beds. In her speech, PPP's Saadia Javed said that a budget was more than just numbers. She lauded the party's health sector achievements but stirred controversy by referencing MQM's past association with Farooq Dada. Her remarks triggered uproar from MQM lawmakers, though the Deputy Speaker maintained she had not used any inappropriate language. Saadia then remarked that MQM had yet to formally distance itself from its founder. She also referred to PTI's founding leader as a 'convicted former prime minister,' prompting protests from PTI members. PPP's Rehana Leghari called for an end to hate-based politics and highlighted her colleague Heer Soho's marriage to an Urdu-speaking man as a symbol of unity. She reminded the House that regions like Thatta and Sujawal had historically contributed taxes to Karachi. MQM lady lawmaker, Bilqees Mukhtar, said the budget crushed the poor and claimed that the 18th Amendment had turned the province into a centralised authority. 'Unless local governments are empowered, the public will see no real change,' she asserted. She demanded more powers for the mayor's office. PPP's Dr Sikandar Shoro recommended initiating a crop insurance scheme and extending the IBA testing time for teachers. MPA Ali Ahmed praised the CM for a 'balanced budget' and shared that funds had been allocated for the Qatar Hospital, including the establishment of a trauma centre and a new 100-bed hospital in Orangi Town. PTI's lawmaker, Sajid Hussain denounced the budget as unrealistic and anti-poor. 'Schools remain closed. People are dying of hunger and disease despite a hefty budget,' he said, citing encroachments on dispensaries in his constituency. MQM's Aneel Kumar questioned the transparency of temple fund allocations and decried the lack of development schemes for non-Muslim communities in Umerkot, Tharparkar, and Mirpurkhas, where he claimed 90% of the population is non-Muslim. PPP's Syed Ameer Ali Shah thanked the leadership for a 'people-centric budget,' citing completed road projects and calling for the full activation of the DHQ Hospital. MPA Shah Hussain Shah Shirazi emphasised the need to ensure resources reach the 'tail-end' areas. Sher Muhammad Mughairi praised Pakistan Army's role in past wars and defended Bilawal Bhutto Zardari's international trips, saying they were aimed at presenting Pakistan's true image. He also requested the construction of storm water drains in his constituency. During PPP MPA Ajaz Khan Swati's speech, PTI lawmakers created a commotion. Some PPP members were heard referring to the PTI founder as 'Prisoner No. 420,' prompting a rebuke from the Deputy Speaker, who asked members to refrain from such labels and address the Chair respectfully. JI's Muhammad Farooq reminded the House of an advisory committee agreement that applied equally to all. He criticized PPP ministers for indirectly mocking the PTI leader. After a rebuttal by Saeed Ghani, Sharjeel Memon rose to say, 'Their prisoner isn't just No. 420.' The debate continued with contributions from multiple MPs, including Heer Soho, who described the budget as a landmark for Sindh's development. The session was adjourned until 10 a.m. Wednesday. Copyright Business Recorder, 2025
Business Recorder
10-06-2025
- Business
- Business Recorder
Provincial budgets of 2025-26
There is generally a greater focus on the prospects for and likely features of the federal budget in the days before its presentation. This is increased by the lobbying, against or for, particular taxation proposals. Undoubtedly, the macroeconomic implications of the impending federal budget are significant in terms of the impact on the rate of inflation due to higher indirect taxes, extent of 'crowding out' of the private sector from bank credit due to government borrowing and development impact of the spending on infrastructure projects and services. However, there is need also to recognize that the four provincial budgets, both individually and collectively, also have important implications on economic and social development in the country. First, as per the Constitutional allocation of services after the 18th Amendment, the provincial governments are responsible for the provision of basic social services like education, health, water supply and sanitation, and economic services like roads, bridges and highways, rural development and irrigation. Second, the four provincial governments combined engage in much more development spending than the federal government. During the first three quarters of 2024-25, the national development expenditure was Rs 1536 billion. The share of provincial governments was as much as 80 percent. Third, the provincial governments make a significant contribution to reducing the overall consolidated budget deficit. For example, the federal budget deficit in the period, July to March, 2024-25, was Rs 4023 billion. The consolidated deficit was brought down to Rs 2970 billion, by the generation of a cash surplus by the four provincial governments combined of Rs 1,053 billion. The forthcoming provincial budgets must also be examined from the viewpoint of the substantial revenue raising potential of provincial taxes and the extent of their exploitation. Currently, the provincial tax-to-GDP ratio is only 0.7 percent of the GDP. There are a number of provincial taxes with large 'tax gaps' currently. The agricultural income tax can yield an additional 0.8 percent of the GDP if the new tax law is implemented effectively. The revenue potential is enhanced by the highly inequitable distribution of farm area in the country. Only 1 percent of the farmers own 22 percent of the farm land. The provincial governments also have access to a number of property-related taxes. This includes the urban immoveable property tax, stamp duty and the capital value tax on property. These taxes are also grossly underexploited currently and the potential additional revenue could approach 0.5 percent of the GDP. This will require listing of all properties above a minimum size and proper valuation of these properties. The largest source of tax revenue currently of the provincial governments is the sales tax on services. There is need for proper documentation of transactions and full integration with the federal sales tax on goods. These measures could increase the revenues from the tax by almost 0.5 percent of the GDP. Therefore, the overall revenue potential from provincial taxes is 1.8 percent of the GDP. The time has come to stop tinkering around with federal taxes and focus more on fundamental reforms in provincial taxes to raise substantially more revenues. The IMF Programme is attaching for the first time more focus on provincial revenues. In particular, emphasis has been laid on development of the agricultural income tax. There is need to look at the projections of finances in 2025-26 of the four provincial governments combined in the IMF Staff Report of 17th of May. This report was released after the successful completion of the first review of the IMF Extended Fund Facility. The growth rate in provincial tax revenues is projected at 24 percent in 2025-26. With the nominal GDP expected to rise by 12 percent, the incremental fiscal effort in collection of the agricultural income tax is expected to be only Rs 120 billion, equivalent to hardly 0.1 percent of the GDP. Clearly, a more ambitious target needs to be set. The level of provincial non-tax revenues is actually expected to decline from Rs 307 billion in 2024-25 to Rs 260 billion in 2025-26, for reasons which are not clear. The provincial governments have significant sources of non-tax revenue. The best example is of irrigation charges. These are extremely low currently and recover only 14 percent of the operations and maintenance costs incurred on the irrigation system, especially in Punjab and Sindh. Turning to expenditures, the IMF Staff Report expects provincial current expenditure to rise by 15 percent in 2025-26. This is double the likely rate of inflation next year. Also, the current expenditure, excluding debt servicing, of the federal government is projected to rise by only 8 percent. As such, from the viewpoint of economizing on day-to-day expenditures the same target growth rate should be set for the increase in current expenditure of provincial governments. Provincial development expenditure is expected to be higher by 12 percent, equivalent to the increase in the nominal GDP. Here again there is a bias. Federal development spending is anticipated to rise here also by 8 percent only. This is at the time when the federal PSDP must allocate substantially more funds for water resources projects as an insurance against diversion of water by India. Overall, the implied provincial cash surplus is close to Rs 1500 billion, compared to the likely outcome of Rs 1000 billion in 2024-25. This will hinge on achievement of 22 percent growth in federal NFC fiscal transfers, which will only be possible if taxation proposals in federal taxes raise an additional Rs 1100 billion in 2025-26. In conclusion, the time has come for much more focus on provincial finances. The 'tax gap' in provincial taxes is very large and needs to be exploited on a high priority basis, especially since the incidence of these taxes is likely to be more progressive. The outcome should be the generation of substantially larger provincial cash surpluses, which ought to reach over 30% of the federal budget deficit in the next three years. Copyright Business Recorder, 2025
Express Tribune
09-06-2025
- Politics
- Express Tribune
High courts run without permanent top judges
Following the passage of the 26th Constitutional Amendment, adhocism appears to be growing across the superior judiciary. Despite the lapse of four months, the Judicial Commission of Pakistan (JCP) has yet to convene a meeting to appoint permanent chief justices for the Sindh High Court, Peshawar High Court and Islamabad High Court. The Balochistan High Court also remained without a permanent chief justice for more than three months. On May 19, the JCP approved the appointment of Justice Muhammad Ejaz Swati as BHC chief justice, but only for a period of two weeks. He retired on June 5. Justice Rozi Khan Barech, who ranked second in the BHC's seniority list, has now been appointed acting chief justice. Similarly, Justice Sardar Sarfraz Dogar has been serving as acting chief justice of the Islamabad High Court for the past four months. His seniority is currently under challenge in the Supreme Court. While the litigation may explain the delay in appointing a permanent IHC chief justice, no clear reason exists for the prolonged delay in appointments for the other three high courts. Since the passage of the 18th Amendment, the JCP has not previously delayed the process of appointing permanent chief justices for the high courts. Under the new constitutional arrangement, the executive holds a dominant role in the appointment of judges to the superior judiciary. However, senior judges, particularly the Chief Justice of Pakistan, have made no serious effort to restore balance in the appointments process. During the tenure of the current CJP, Justice Yahya Afridi, approximately 50 judges have been appointed to the superior courts, with the executive playing a key role in nominating many of them. No judge can now become a permanent chief justice without the executive's support. The government has thus succeeded in maintaining "like-minded" acting chief justices in key high courts. With the backing of former CJP Qazi Faez Isa, the government previously managed to elevate Justice Malik Shahzad Ahmad Khan from the Lahore High Court to the Supreme Court, reportedly because he was not their preferred choice to lead the LHC. At present, the executive is reportedly reluctant to elevate incumbent LHC CJ Alia Neelum, as the Punjab government is said to be comfortable with the current provincial judiciary. It is also learnt that the executive remains indecisive regarding the appointment of a permanent chief justice for the Sindh High Court. "It is the PPP that will decide about the permanent chief justice of the SHC," a source added. Reports suggest that PPP legal minds are divided on the nomination for the next SHC chief justice. Similarly, Justice Syed Mohammad Attique Shah, who was second in the seniority list of PHC judges, has been appointed as acting chief justice of the Peshawar High Court. The appointment of a permanent PHC chief justice is being delayed for known reasons. Lawyers are increasingly vocal about the disregard for senior puisne judges of PHC and BHC in the appointment of acting chief justices. It is learnt that PHC judge Justice Ejaz Anwar is not in the good books of powerful circles. Therefore, despite his seniority, he was neither elevated to the Supreme Court nor appointed as acting chief justice. The same applies to Justice Muhammad Kamran Khan Mulakhail, who, though appointed as acting chief justice, could not secure clearance from powerful circles. Reports also suggest that he is a victim of judicial politics, and his relationships with some senior judges are not cordial. The current situation indicates that both senior judges are unlikely to be appointed as permanent chief justices of their respective high courts. Advocate Abdul Moiz Jaferii commented on Islamabad, saying, "It is a way to continue the farce that is the new Dogar court. There's a bunch of good judges there, so let's keep them all hanging and distracted". Speaking on Sindh, Jaferii added, it has the effect of a perpetual carrot being dangled before the senior-most judges in the province. "Let's see what you can do to please uswithout us really asking you to do anything specific. By keeping the corner court empty, you keep everyone in the race. And when you don't know what you're racing for or how long the race is, you start running cautiously. That is good enough. And it is exactly what they want." Lawyers believe that senior judges, who are at the helm and beneficiaries of the 26th Amendment, must take steps to restore the institution, whose independence has been compromised for the past six months.
Mint
07-06-2025
- Health
- Mint
Does a Michelada Without Beer Still Taste as Sweet?
(Bloomberg Opinion) -- I find myself unhappily on trend. Young people everywhere are increasingly 'on the wagon' — to use the American idiom for sobriety from the 1920s, when the 18th Amendment to the US Constitution banned the production and sale of alcohol. The wagon in the expression was a public- service vehicle loaded with water to tamp down dust and grime on city streets; by extension, it described the clean and sober law-abiding citizens of America. According to some estimates, 39% of Gen Z say they have foresworn alcoholic drinks; about half of them imbibe such beverages only occasionally. Many have taken to non-alcoholic alternatives. I didn't set out to join that youthful bandwagon. Nevertheless, I have been alcohol-free since Jan. 20, 2025. Those of you who recognize that date as US Inauguration Day must get the coincidence out of your head. It just happened to be when I felt I'd had too much wine over the previous three months. Alas, my doctors agreed with me — because of decades of loving wine and champagne, not just those recent three months. And so, I've spent nearly 140 days looking at how to enjoy the brave new world of NA — a market that's gotten a huge boost in sales and creativity precisely because of health-focused Gen Z, a cohort that probably makes up 25% of the world's population. I am a late Boomer, but now I'm medically required to be young at heart. The NA market can be too sprawlingly defined, including everything from bottled water and high-fructose sodas to electrolyte-infused liquids to NA wines and beer. I'm going to look at beverages that someone who likes to sip good vintages would gravitate to, intriguing in their own right or complementary, even transformative, with food. I was in Copenhagen recently where I attended Noma Chef René Redzepi's revived MAD symposium on the future of restaurants.(1) These kinds of events are usually chock-full of discriminating chefs and sommeliers intent on sampling novel or rare wines and spirits. Would I find alcohol-free stuff to quaff to help me avoid all those temptations? I will admit to staring longingly at the wonderful vintages poured out in Copenhagen. I love wine, perhaps even more so now that I can't have it. But there was no shortage of NA wine. Indeed, Denmark is home to Muri, a pioneer in the blending of different fermented juices to create an alternative to wine. Other NA wine purveyors use physical means (often with low heat) to remove alcohol. That usually results in a thin impersonation of wine, with much of the mouthfeel and vibrancy extracted along with the ethanol (which is the predominant form of alcohol produced by the yeast in winemaking). Muri's process stops short of producing alcohol and utilizes several fruits fermented separately and then blended to create distinct potables. But as tasty as Muri can be (and its beverages are delicious), let me declare now that all the non-alcoholic wines I have sampled don't come close to the vivacity of even middling good wine. There are excellent NA sparklings — L'Antidote and L'Antilope by Domaine de Grottes in France's Beaujolais region — but even these are soda pop compared to champagne or even the new generation of English bubblies. Good wine is a liquid time capsule — a memento of earth, grape, water, the seasons and human touch. It moves beyond taste. I may no longer drink a good Savagnin from the Jura, but I can still appreciate its aroma. Nevertheless, the thrill of having something that looks and — at first blush — feels like wine is enough to fool the brain into producing dopamine. A guilty elation takes over, and you think, 'They've made a mistake. They've poured me real wine.' Soon enough, you realize it's an impostor in your glass. You aren't going to be fooled by the second — if you decide to have it. The NA beers I tasted in Copenhagen were more 'hoppy' or overly flavored with things like elderflower to disguise the absence of malted barley. That said, many non-alcoholic brews I've tried here in London are more successful in impersonating their originals. Guinness 0.0% is 99.9% identical in taste to its model (it has a flatter affect as it approaches room temperature). And Estrella Damm has tweaked the vacuum distillation method — the same one many NA winemakers use to remove alcohol — to reintroduce lost flavors. Its FreeDamm is remarkably good lager. Yet, the second-glass — or in this case, second pint — syndrome persists for both the lager and the stout. The buzz you thought you had turns out to be fantasy. Of course, the quest for buzz — that convivial lightheadedness — is the existential issue in the first place for many drinkers. The road to intoxication is broad. So how do you get the consumer to focus on flavor instead of inebriation? It may be cocktails or 'mocktails' — a terribly awkward word. But restaurants can customize drinks for their characteristic cuisine. I had a miraculous NA michelada at Sanchez, chef Rosio Sanchez's wonderful Mexican restaurant in the Vesterbro district of Copenhagen. The super piquant concoction is usually made with beer, but that's been substituted by a NA pilsner from Rothaus, a German brewer. It went perfectly with the food, flowing and metamorphosing with the ingredients and heat. Micheladas — hellishly spicy — aren't for everyone and don't go with everything. But there are other choices. I had a range of kombuchas in Copenhagen (teas fermented with a variety of ingredients, including roses, magnolias and fig leaves) that were startlingly seductive. Those in the know will say that kombuchas contain some alcohol. That is an important concern for those with substance abuse issues. But the alcohol content is often less than a very ripe banana's (0.2% to 0.5% alcohol-by-volume in the fruit, compared with the 12% to 15% with wine).(2) The probiotics of kombucha may be beneficial too. NA alternatives are as costly as regular offerings — or more. Muri has about six different blends available on its websites, each around £25 ($33.75) a bottle. Guinness 0.0% is more expensive than regular Guinness. That's because — while the market is potentially enormous — the new technologies and processes for making the beverages can't scale up yet. The customer base has to grow to make everything more affordable. As for mocktails, restaurants have to find and pay bartenders skilled in fermentation to come up with those kombuchas, which take time to cultivate. If such things concern you, my friend Jenny Sharaf, an artist based in Los Angeles and Copenhagen, has an alternative to consider: the Wa-tini. You can style it like a Martini — dirty with olive juice, or with a twist or an indulgent kiss of NA vermouth — all poured into the classic glass. But one ingredient is key: bitingly cold, clean water. Shaken or stirred? It's all in your head. More From Bloomberg Opinion: (1) The previous MAD symposium was held in 2018. Funding and, eventually, the pandemic put a halt to what had been an annual get-together of the restaurant and food world. The name derives from a play on Danish and English. Mad means 'food' in Danish (pronounced like 'mal' and a close cognate of the word 'meal'). The insanity stems from the free-flowing proceedings at the symposium, which are conducted under a distinctive, four-peaked magenta circus tent. (2) A graver concern with NA beverages is sugar content and how it might affect diabetics or pre-diabetics who usually face much less risk with wine. This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Howard Chua-Eoan is a columnist for Bloomberg Opinion covering culture and business. He previously served as Bloomberg Opinion's international editor and is a former news director at Time magazine. More stories like this are available on
