Latest news with #FinanceBill2024
Express Tribune
2 days ago
- Business
- Express Tribune
Ministry asked to get IMF nod for oil tax
Finance Minister Ishaq Dar said that the imposition of 17% general sales tax would increase the HOBC price by Rs45 per litre, therefore, he did not approve the proposal. photo: file Listen to article The Special Investment Facilitation Council (SIFC) has directed the Ministry of Finance to swiftly secure consent of the International Monetary Fund (IMF) for imposing sales tax on petroleum products as the matter has stalled investments of $6 billion in refinery upgrade projects. The government had earlier agreed to remove sales tax exemption on petroleum products to support struggling oil refineries and oil marketing companies. It committed to imposing 5% sales tax on petroleum, but did not include it in the Finance Bill 2025, sparking concerns in the oil industry. The Oil Companies Advisory Council (OCAC) – an industry lobby – had also raised the issue with the federal government for failing to meet the commitment and for continuing the tax exemption. The oil industry claims it has suffered Rs34 billion in losses during the ongoing financial year, which has prompted the government to allow loss recovery through the inland freight equalisation margin. "However, the main issue of GST removal from petroleum products remains in place," an industry official told The Express Tribune. Sources said that the issue landed in a recent meeting of the SIFC, which voiced concern over delay in resolving the matter. The finance ministry informed the SIFC that it had presented the proposal of levying GST on petroleum to the IMF and was awaiting its consent. The ministry expressed hope that the IMF's nod would be secured before the approval of budget by parliament. Industry officials pointed out that the government had additionally imposed carbon and petroleum levies on furnace oil, which would cause a halt to their furnace oil sales. Since the release of the Finance Bill 2024 in June last year, refineries have actively pursued the inclusion of high-speed diesel, motor spirit (petrol), kerosene oil and light diesel oil in the exemption regime under the Sales Tax Act, 1990 with the authorities concerned. Through consistent and collaborative efforts from June 2024 to May 2025, the government approved a mechanism for reimbursing the additional cost of sales tax inputs, resulting from the exemption status of petroleum products for fiscal year 2024-25. Regrettably, despite assurances and constructive engagement, the matter remains unresolved in the Finance Bill 2025. This undermines investor confidence, disrupts long-term planning and runs counter to objectives of Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023 that seeks to attract investments of $6 billion. In case the dispute drags on, it will not only derail plant upgrade plans but will also pose financial and liquidity challenges to existing operations as refineries run under a regulatory pricing regime and are unable to recover this additional burden from product pricing. Separately, a summary is circulating on social media, suggesting that the Ministry of Energy (Petroleum Division) has proposed the imposition of petroleum levy on high sulphur fuel oil (HSFO) at Rs82,077 per metric ton. This is in addition to a carbon levy of Rs2,665/MT on HSFO, as proposed in the Finance Bill 2025. It is feared that the application of petroleum and carbon levies will result in an 80% increase in the end-user price of HSFO. This may lead to a further reduction in industrial activity and domestic demand. With lower local consumption, government revenues with respect to sales tax collection will go down markedly and refineries will be forced to export HSFO at a significant financial loss. In addition, the refineries that consume HSFO as fuel in their own operations will be burdened with a sharp rise in operating costs due to the inclusion of petroleum and carbon levies.
Business Recorder
10-06-2025
- Business
- Business Recorder
Finance Minister Aurangzeb presents federal budget 2025-26
Finance Minister Muhammad Aurangzeb is currently presenting the federal budget for the upcoming fiscal year 2025-26, as the coalition government seeks to revive the economy, meet the International Monetary Fund (IMF) measures and provide some relief to the tax-weary masses. The budget, expected to have an estimated outlay of Rs17.6 trillion, comes at a time when the global economy remains engulfed in uncertainty fueled by new trade tariffs being imposed by the United States. Finance Minister Aurangzeb, who is delivering his second budget speech in the National Assembly, will also lay the Finance Bill 2024 in the Senate on the same day, as required under Article 73 of the Constitution. Ahead of the budget address, the federal cabinet approved the budget proposals for the next fiscal year (2025-26). Some areas of interest: GDP growth target External financing estimates Taxation on the salaried group PSDP size and focus Broadening the tax base Defence budget The budget comes a day after the government missed its GDP growth target of 3.6% in the outgoing fiscal year, posting a figure of 2.7%, as revealed in the Economic Survey 2024-25. However, Aurangzeb, during his press briefing while unveiling the Pakistan Economic Survey 2023-24, highlighted a strong 4.8% rebound in industrial activity, pushing the economy's size to $411 billion for the first time and raising per capita income to $1,824.
Business Recorder
10-06-2025
- Business
- Business Recorder
KSE-100 rises nearly 400 points amid budget buzz
The Pakistan Stock Exchange opened trading on a positive note on Tuesday, as the benchmark KSE-100 Index settled with a gain of nearly 400 points during the first trading session of the week following the Eid holidays, with investors eyeing upcoming budget measures to be unveiled later in the day. Positive momentum prevailed throughout the trading session, pushing the benchmark KSE-100 Index to an intra-day high of 122,611.53. At close, the benchmark index settled at 122,024.44 an increase of 383.44 points or 0.32%. The federal government today would present the budget 2025–26 with an estimated size of Rs17.6 trillion in the National Assembly for debate and approval. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb would present the federal Budget-2025-26 in the National Assembly. He would also lay the Finance Bill 2024 in the Senate on the same day, as required under Article 73 of the Constitution. During the previous week, the Pakistan Stock Exchange (PSX) stayed positive, fueled by growing optimism over a potential agreement between Pakistan and the IMF. The benchmark KSE-100 index rose by 1,950 points or 1.6% to close at 121,641 points on the last trading day of the week compared to 119,691 points at the end of the previous week. Overall, four trading sessions were held due to the Eid holiday on Friday, June 6, 2025. Internationally, stocks were buoyant and the dollar remained on guard on Tuesday as trade talks between the United States and China were set to extend to a second day, with tentative signs that tensions between the world's two largest economies could be easing. US President Donald Trump put a positive spin on the talks at Lancaster House in London, which wrapped up for the night on Monday and were set to resume at 0900 GMT on Tuesday. Stocks advanced in Asia, extending their rise from the start of the week. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5%, while Nasdaq futures gained 0.62%. S&P 500 futures edged 0.43% higher. EUROSTOXX 50 futures and FTSE futures both added roughly 0.1% each.
Business Recorder
10-06-2025
- Business
- Business Recorder
KSE-100 rises over 800 points amid budget buzz
The Pakistan Stock Exchange opened trading on a positive note on Tuesday, as the benchmark KSE-100 Index gained over 800 points during the first trading session of the week following the Eid holidays, with investors eyeing upcoming budget measures to be unveiled later in the day. At 12:35pm, the benchmark index was hovering at 122,450.11, a gain of 809.11 points or 0.67%. Buying momentum was observed in key sectors including commercial banks, fertilizer, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks, including PRL, WAFI, MARI, OGDC, POL, HBL, MCB, and MEBL, traded in the green. The federal government today would present the budget 2025–26 with an estimated size of Rs17.6 trillion in the National Assembly for debate and approval. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb would present the federal Budget-2025-26 in the National Assembly. He would also lay the Finance Bill 2024 in the Senate on the same day, as required under Article 73 of the Constitution. During the previous week, the Pakistan Stock Exchange (PSX) stayed positive, fueled by growing optimism over a potential agreement between Pakistan and the IMF. The benchmark KSE-100 index rose by 1,950 points or 1.6% to close at 121,641 points on the last trading day of the week compared to 119,691 points at the end of the previous week. Overall, four trading sessions were held due to the Eid holiday on Friday, June 6, 2025. Internationally, stocks were buoyant and the dollar remained on guard on Tuesday as trade talks between the United States and China were set to extend to a second day, with tentative signs that tensions between the world's two largest economies could be easing. US President Donald Trump put a positive spin on the talks at Lancaster House in London, which wrapped up for the night on Monday and were set to resume at 0900 GMT on Tuesday. Stocks advanced in Asia, extending their rise from the start of the week. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5%, while Nasdaq futures gained 0.62%. S&P 500 futures edged 0.43% higher. EUROSTOXX 50 futures and FTSE futures both added roughly 0.1% each. This is an intra-day update
Business Recorder
10-06-2025
- Business
- Business Recorder
Aurangzeb to present federal budget 2025-26 today
Finance Minister Muhammad Aurangzeb would present the federal budget for the upcoming fiscal year 2025-26 on Tuesday (today), as the coalition government seeks to revive the economy, meet the International Monetary Fund (IMF) measures and provide some relief to the tax-weary masses. The budget, expected to have an estimated outlay of Rs17.6 trillion, comes at a time when the global economy remains engulfed in uncertainty fueled by new trade tariffs being imposed by the United States. Finance Minister Aurangzeb, who will deliver his second budget speech in the National Assembly, will also lay the Finance Bill 2024 in the Senate on the same day, as required under Article 73 of the Constitution. Some areas of interest: GDP growth target External financing estimates Taxation on the salaried group PSDP size and focus Broadening the tax base Defence budget The budget comes a day after the government missed its GDP growth target of 3.6% in the outgoing fiscal year, posting a figure of 2.7%, as revealed in the Economic Survey 2024-25. However, Aurangzeb, during his press briefing while unveiling the Pakistan Economic Survey 2023-24, highlighted a strong 4.8% rebound in industrial activity, pushing the economy's size to $411 billion for the first time and raising per capita income to $1,824.
