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Express Tribune
3 days ago
- Business
- Express Tribune
K-P utilises Rs120b ADP budget for current fiscal
K-P Chief Minister's Advisor on Finance and Interprovincial Coordination Muzzammil Aslam told the K-P Assembly that the Khyber-Pakhtunkhwa government not only successfully completed the Annual Development Program (ADP) worth Rs120 billion for the ongoing fiscal but also incurred development expenditures exceeding Rs150 billion. Responding to questions during the provincial assembly's budget session, the CM's aide said the current government, prioritizing public welfare, introduced financial reforms, curtailed expenditures, increased revenues, and succeeded in presenting a surplus budget — a first in the province's history. He further noted that the government had secured Rs150 billion in a debt fund to gradually pay off the province's debts. The finance advisor emphasized the need for the federal government to fulfill the province's financial rights, adding that Chief Minister Ali Amin Gandapur had forcefully and effectively advocated for the protection of Khyber-Pakhtunkhwa's constitutional and financial rights in relation to the National Finance Commission (NFC) Award. As a result of these efforts, positive outcomes are emerging, and the federal government is now preparing to announce the 11th NFC Award, said Aslam. Drawing attention to the challenges in the education sector, he highlighted that although the out-of-school children situation in Khyber Pakhtunkhwa was better than in other provinces, 30% of children in the province were still out of school — a concerning reality. In light of this, the government is declaring an "education emergency" to ensure that every child has access to education, the K-P CM advisor said.
Business Recorder
4 days ago
- Business
- Business Recorder
Punjab unveils Rs5.335trn budget
LAHORE: Punjab Finance Minister Mujtaba Shuja-ur-Rehman presented the Punjab budget for the financial year 2025-26 in the assembly session on Monday, outlining a total outlay of Rs 5,335 billion. The budget reflects significant allocations for development, social welfare, and infrastructure, marking, what the minister described as, a 'strategic shift' in Punjab's history. The provincial government has allocated Rs 2,706.5 billion for non-development expenditures, including pensions and salaries, reflecting a 6% increase from the previous year. Additionally, Rs 590 billion has been budgeted under current capital expenditure. Despite opposition lawmakers disrupting the session by protesting near Chief Minister Maryam Nawaz's seat and labeling the budget as 'unrealistic', the finance minister proceeded with his speech, detailing sector-wise allocations. Shuja-ur-Rehman began by acknowledging the political and military leadership for safeguarding national interests during recent tensions with India. He emphasized the government's commitment to economic stability, noting a 94% reduction in internal debt servicing and an 88% decrease in estimated expenditures under Account-II (Food) compared to the current fiscal year. A substantial portion of the budget, Rs 1,240 billion (23% of the total outlay), has been allocated for development programs, representing a 47% increase from the previous year's Rs 842 billion. The social sector, including health and education, remains a top priority, receiving Rs 494 billion (40% of the Annual Development Program). Revenue collection for 2025-26 is estimated at Rs 4,890.4 billion, with Punjab expected to receive Rs 4,062.2 billion from the federal divisible pool under the National Finance Commission (NFC). Provincial receipts are projected at Rs 828.2 billion, with the Punjab Revenue Authority (PRA) tasked with collecting Rs 340 billion, the Board of Revenue Rs 135.5 billion, and the excise department Rs 70 billion. The budget also incorporates Rs 470 billion under the federal government's agreement with the IMF, contingent on the Federal Board of Revenue (FBR) meeting its targets. The government has allocated Rs 148 billion for education development, a 127% increase from the previous year. Initiatives include Rs 15 billion for student scholarships, Rs 40 billion for missing facilities in schools, Rs 5 billion to reduce dropout rates, and Rs 5 billion for centers of excellence in 36 districts. Additionally, Rs 3 billion has been earmarked for the Nawaz Sharif Center of Excellence in 10 divisions while Rs 35 billion will support the Punjab Education Foundation for private-sector collaboration. The health sector receives Rs 181 billion, a 131% increase, with Rs 72 billion allocated for the Nawaz Sharif Institute of Cancer Treatment and Research in Lahore. Rupees 123 billion have been set aside for agriculture, livestock, and irrigation, alongside Rs 795 billion for climate resilient projects - a first in Punjab's history. This includes Rs 277.4 billion for climate adaptation, Rs 371.7 billion for mitigation, and Rs 146 billion for environmental protection capacity-building. Rupees 336 billion (27% of the development budget) will fund infrastructure projects, while Rs 85 billion supports Chief Minister Maryam Nawaz's T-30 transport vision. Seed money of Rs 1 billion has been allocated for a feasibility study on Punjab's first public-private airline, and Rs 2 billion will initiate regional railway tracks in collaboration with the federal government. The energy sector receives Rs 7.5 billion, including Rs 600 million for a bio-fertilizer plant in Gujjar Colony and Rs 8 billion for solarizing courts, schools, and hospitals. Social protection programs are allocated Rs 31.4 billion, while Rs 11.6 billion will promote information, culture, and the film industry. The finance minister announced a 10% salary increase for government employees from Grade 1 to 22 and raised the minimum wage from Rs 37,000 to Rs 40,000. Additional allocations include Rs 400 million for the Housing Foundation and Rs 1 billion for the Journalist Endowment Fund. Shuja-ur-Rehman concluded by highlighting the completion of 6,104 projects in the current fiscal year and reaffirmed the government's commitment to sustainable development and economic growth. This budget, he stated, represents the highest-ever development expenditure in Punjab's history, setting a new benchmark for progress. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Balochistan's Rs1trn budget to be presented tomorrow
QUETTA: The Balochistan government is scheduled to present its budget for the fiscal year 2025–26 on June 17, with sources indicating that the total outlay is expected to exceed Rs1,000 billion. The sources revealed that similar to the current fiscal year, the upcoming budget will also be a surplus budget, reinforcing the province's strategy of maintaining fiscal discipline. They said Balochistan is projected to receive Rs743 billion from federal revenues under the National Finance Commission (NFC) Award. This amount will come under two heads: divisible pool taxes and direct transfers from natural resources, including gas. Compared to the current financial year, this represents an increase of Rs70 billion in federal revenue transfers to the province. Balochistan's own revenue from provincial taxes and non-tax sources is estimated to cross Rs150 billion, further strengthening the province's fiscal base. On the expenditure side, non-development spending is likely to exceed Rs700 billion, while over Rs240 billion is expected to be earmarked for development expenditures from provincial resources. Key priority sectors in the budget will include education, law and order, healthcare, and infrastructure, according to sources. Education is likely to receive more than Rs160 billion, while the law and order sector is expected to get a total allocation exceeding Rs100 billion. The health sector is set to receive around Rs80 billion.
Express Tribune
12-06-2025
- Business
- Express Tribune
GDP figure based on old data
Listen to article Pakistan's Chief Statistician Dr Naeemuz Zafar said Thursday that the 2.7% economic growth estimate for this fiscal year is based on a 15-year-old livestock survey and assumes full utilisation of the Rs1.1 trillion development budget. While responding to questions about the controversy over this year's economic growth figure along with Planning Minister Ahsan Iqbal, Dr Zafar claimed that there would be no major downward revision in the 2.7% figure for the outgoing fiscal year. Iqbal also proposed a new formula for resource distribution under the National Finance Commission (NFC), moving away from the current population-centric model. The Pakistan Bureau of Statistics (PBS)'s chief statistician called objections to the 2.7% growth rate "unfortunate" and said if a committee is formed to investigate, the PBS is ready to appear. The government claims a 2.7% GDP growth this year, which independent economists have disputed, estimating it to be closer to 2%. A major objection concerns the 4.8% livestock sector growth. The livestock sector's 4.8% growth was based on a survey conducted back in 2010, admitted Dr Zafar, adding that there was no deviation from the standard methodology. When asked how the agriculture sector showed 0.6% growth despite a 14% output decline in major crops, Dr Zafar said the growth was driven by livestock, forestry and minor crops. The Gross Domestic Product (GDP) growth figure has been worked out in a transparent manner by following a methodology endorsed by the United Nations and the international financial institutions, he said. He also confirmed a new agriculture and livestock census has been completed but awaits the planning minister's approval due to his budget commitments. He added that the Household Integrated Economic Survey, Labour Force Survey, and agriculture census would be ready by October for the next National Accounts Committee (NAC) meeting. Leader of the Opposition Omar Ayub Khan raised the disputed GDP issue during the National Assembly Standing Committee on Finance meeting held on Thursday. In a statement, the statistician also stated PBS used the full Rs1.1 trillion federal Public Sector Development Programme (PSDP) figure for GDP calculationshighlighting a glaring methodological flaw. However, Finance Secretary Imdad Ullah Bosal told the same committee that against the Rs1.1 trillion PSDP allocation, only Rs662 billion had been spent so far. He added that by June-end, spending would remain below the revised Rs967 billion figure. When asked whether the GDP would be drastically revised in the next NAC meeting, Dr Zafar again said no major revision was expected. Speaking at the meeting, the planning minister said the country was on a path to steady economic recovery with a goal of sustainable economic growth. Iqbal added that Pakistan continues to face structural problems of fiscal constraints. Due to limited space, next year's federal PSDP will be just 0.8% of GDPdown from 2.6% seven years ago. The planning minister noted that the federal government's Rs11 trillion net revenues were barely enough to cover defence and debt servicing. "With limited tax contributions, people cannot hope for international standard facilities," said Iqbal. He also called for reforming the NFC award by shifting away from the predominantly population-based distribution formula with broader indicators like education and forestation. Iqbal is the second federal minister after the finance minister to propose a shift in the NFC criteria this week. Currently, 82% of total resources are allocated based on population, which Iqbal argued incentivises population growth, harming national interests. He said the Planning Commission would recommend shifting to a broader formula that rewards education and forest preservation. Prime Minister Shehbaz Sharif, he added, has decided to constitute a Pakistan Population Council, comprising provincial chief ministers, to design strategies for population control. Pakistan's annual population growth rate stands at 2.6% — nearly equal to this year's GDP growth rate. Responding to a question whether the Federal Board of Revenue (FBR) took him into confidence before imposing taxes on the digital economy, Iqbal said these were levied with the intent to create a level playing field for conventional retailers. Commenting on the upcoming PSDP, Iqbal said Rs230 billion had been allocated for Balochistan projects from the Rs1 trillion envelope. Despite limited resources, the government would invest more in water reservoirs. He said Diamer Basha Dam with 6 million acre-feet capacity and Mohmand Dam with 1 million acre-feet would be completed by 2030 to mitigate water shortages caused by potential Indian efforts to block Pakistan's share of water. Iqbal added that construction of Diamer Basha Dam would be advanced by two years with increased investment, aiming for completion by 2030 in response to regional water developments. Due to budget constraints, funding for the Higher Education Commission (HEC) has been reduced to Rs39.5 billion. Iqbal suggested provinces should bear the responsibility of funding universities.
Business Recorder
11-06-2025
- Business
- Business Recorder
Petroleum products: 26.4pc rise in PL envisaged
ISLAMABAD: The federal budget 2025-26 envisages a 26.4 percent raise in petroleum levy (PL) on petroleum products after raising its maximum limit to Rs 90 per litre from Rs 70 per litre. A significant Rs 1,468.395 billion PL on petroleum products has been budgeted for upcoming fiscal year. This represents a substantial rise of Rs 307.395 billion compared to the current revised estimates of Rs 1,161 billion for the ongoing fiscal year. It is also considerably higher than the original budgeted PL of Rs 1,281 billion for the outgoing fiscal year 2024-25. Next fiscal year's budgeted PL is Rs 158 billion higher than what was projected for next fiscal year under this head by the International Monetary Fund in its first staff-level report uploaded on its website on May 17, 2025. The projected collection is Rs 1311 billion for next fiscal year. Last 3-1/2 months of FY25: petroleum levy hike by Rs18.02 to generate Rs90bn revenue The PL revenue has been given a high priority by successive federal governments as it is not part of the Federal Divisible Pool (FDP) that has to be shared with the provinces as per the National Finance Commission (NFC) formula. A budgeted target of Rs 105 billion through imposition of a levy on Off the Grid (Captive Power Plants) has been set for next fiscal year. The National Assembly passed the 'Off the Grid (Captive Power Plants) Levy Bill, 2025'. This levy, initially 5 percent, will increase to 10 percent by July 2025, 15 percent by February 2026, and 20 percent by August 2026. The government has also proposed to increase the Gas Infrastructure Development Cess (GIDC) collection at Rs 2.4 billion for the next fiscal year from revised current estimates of Rs 1 billion. The GIDC was originally budgeted at an amount of Rs2.5 billion for the current fiscal. In June 2020, the Supreme Court of Pakistan ruled that various sectors of the economy must clear outstanding Rs 407 billion GIDC in 60 months but the government has yet to realize this amount due to stay orders obtained by various companies. Natural Gas Development Surcharge (GDS) - the difference between prescribed and sale price of gas that goes to provinces - is projected to bring Rs49.437 billion next year against original budgeted Rs25.618 billion and revised Rs48 billion in the outgoing fiscal year. The government has also envisaged to collect Rs5 billion for the PL on Liquefied Petroleum Gas (LPG) in next fiscal 2025-26. This is compared to the revised target of Rs 3.156 billion for the current fiscal year. The original budget for the PL on LPG in the current fiscal year was at Rs3.537 billion. The budget for fiscal year 2025-26 envisages Rs30 billion to be retained as a discount on local crude oil prices. This is higher than the revised estimate of Rs 25 billion for the current fiscal year the same as budgeted for the current year. The budget for next year proposes an increase in royalty on crude oil and increase in royalty on natural gas for provinces. The budgeted amount for royalty on crude oil is set at Rs69 billion for next financial year against the revised estimates of Rs64 billion for the outgoing year. The government budgeted Rs38 billion in royalty on natural gas in the next financial year against a revised target of Rs135 billion and budgeted Rs103.751 billion in 2024-25. Next year's budget envisages Rs20 billion on account of windfall levy on crude oil against budgeted amount of Rs 28 billion for the current financial year 2024-25. Windfall levy on gas has been budgeted at Rs 450 million which was revised estimates of Rs450 million in current fiscal year. Miscellaneous receipts of oil and gas companies are budgeted to generate Rs 1887.682 billion against a revised estimate of Rs 1464.606 billion and budgeted estimates of Rs 1528.46 billion in the outgoing financial year. Copyright Business Recorder, 2025
