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Business Recorder
14 hours ago
- Business
- Business Recorder
Minister, Chinese delegation discuss projects under CPEC Phase-2
ISLAMABAD: A senior Chinese delegation, Thursday, discussed development projects under the China-Pakistan Economic Corridor (CPEC) Phase-2 with Planning Ministry for preparation of the upcoming 14th Joint Coordination Committee (JCC) meeting in next month (July). Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal hosted a senior Chinese delegation in Islamabad for a luncheon meeting aimed at boosting cooperation under the second phase of the CPEC. The Chinese delegation was led by Hu Zhaoming, spokesperson of the International Department of the Communist Party of China (IDCPC) and Director General of its Information and Communication Bureau. He was accompanied by senior officials including Hu Xiaodong, Fan Shilian, and Li Zishuo. Diplomats from the Chinese Embassy in Islamabad, including Deputy Chief of Mission Shi Yuanqiang and Attaché Zhang Duo, were also in attendance. During the meeting, Minister Iqbal highlighted the significance of the upcoming JCC meeting and said that it would be a key milestone in CPEC's journey, with preparatory working group sessions already underway to ensure smooth proceedings. He emphasised the need to nurture critical thinking and innovation among Pakistan's youth, drawing parallels with China's success in aligning public confidence with national development goals. He appreciated China's continued support and underlined the importance of people-to-people and media exchanges in deepening bilateral relations. The discussions also featured innovative ideas to bridge cultural and information gaps between the two nations. These included proposals for exchange programmes between journalists and digital content creators, as well as sharing English-dubbed Chinese content on popular OTT platforms to help Pakistani youth better understand Chinese society and CPEC developments. Minister for Information and Broadcasting Ataullah Tarar, who also attended the meeting, suggested initiating a digital exchange programme specifically for journalists and influencers with strong social media presence from both countries. The goal, he said, is to promote mutual understanding and dispel misconceptions about CPEC through authentic storytelling. Amenah Kamal, Member Development Communica-tion from the Planning Commission, supported the idea and proposed that dubbed content in English and Urdu should be made widely accessible through digital streaming platforms to engage young audiences more effectively. Other senior attendees included Javed Sikandar, Chief Governance at the Planning Commission, Dr Nadeem Javaid, Vice Chancellor of the Pakistan Institute of Development Economics (PIDE), and Dr Muzamil Zia, CPEC's Regional Connectivity and Infrastructure Specialist. The meeting concluded with a shared commitment to strengthen Pakistan-China cooperation through dialogue, creativity, and inclusive public engagement. Copyright Business Recorder, 2025
Arab News
12-06-2025
- Business
- Arab News
Pakistan mulls linking provincial funding to population control under revised revenue-sharing scheme
ISLAMABAD: Pakistan's planning ministry will propose changes to the National Finance Commission (NFC) Award — a constitutional formula that governs how tax revenues are shared between the federal government and provinces — in an effort to reward regions that manage to control population growth, Planning Minister Ahsan Iqbal said on Thursday. The proposed reform would shift financial incentives away from population size alone and toward demographic efficiency. Pakistan, a country of over 240 million people, has its population growing at around 2 percent annually. This rate is significantly above the global average, placing Pakistan among the world's faster-growing nations. Under the existing NFC Award, 57.5 percent of the divisible tax pool is allocated to Pakistan's four provinces of Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan. Of this, 82 percent is distributed based on population size, effectively rewarding provinces like Punjab and Sindh that have higher population growth. 'In the next NFC Award, the Planning Ministry will propose a revision of the resource distribution formula,' Iqbal told reporters during a briefing on Pakistan's development budget for the upcoming fiscal year. 'This creates a negative incentive. If a province manages to control its population, it is effectively penalized with a reduced share of resources.' The NFC Award remains a politically sensitive subject in Pakistan, with provinces often reluctant to surrender financial shares. However, Iqbal said reform was essential for sustainable development. The current NFC Award was agreed in 2010 under Article 160 of the Constitution, which requires periodic review and consensus among the federal and provincial governments. The 2010 award introduced a more balanced distribution formula than previous iterations, which were based solely on population. It included additional criteria such as poverty and backwardness (10.3 percent), revenue collection and generation (5 percent), and inverse population density (2.7 percent). Despite these adjustments, Iqbal argued that population remained an overwhelming factor in determining provincial allocations and discouraged provinces from investing in family planning or demographic control measures. 'We must shift toward incentivizing demographic efficiency, rewarding provinces that control population growth effectively,' he said. 'This change is only possible through a revised NFC formula, as in my view, the current formula is regressive and needs to be restructured on a progressive basis, linking resource allocation not just to population but also to factors like industrial performance, educational outcomes, and governance efficiency.' Iqbal described Pakistan's current 2.5 percent annual population growth rate as 'the biggest challenge' facing the country and said that without effective population control, economic development efforts would be undermined. To address the issue at the national level, Iqbal said the government would establish a Pakistan Population Council chaired by Prime Minister Shehbaz Sharif, with participation from provincial and regional governments. 'WATER SECURITY' Iqbal also highlighted the growing threat of water scarcity, particularly after neighboring India's unilateral suspension of the Indus Waters Treaty (IWT), a 1960 World Bank-brokered agreement that allocated the use of the Indus River system's waters between India and Pakistan. India announced it was holding the treaty in abeyance after a conflict with Pakistan last month over the disputed Kashmir region, which both countries rule in part but claim in full. 'Our focus in the development budget is Pakistan's water sector, as we must treat water as a fundamental element of our national strength, especially as neighboring countries have begun to weaponize water, a deeply concerning development,' the planning minister said. He added that while India could not legally block Pakistan's share of water under the treaty, it could still affect the flow of rivers that irrigate nearly 80 percent of the country's agricultural land. In response, Pakistan has prioritized the completion of two major dam projects, Diamer Bhasha Dam and Mohmand Dam, aiming to finish both by 2030. Originally, Diamer Bhasha Dam was scheduled for completion in 2032. 'We have resolved to complete the Diamer Bhasha Dam and Mohmand Dam on an emergency basis and our goal is to complete the Diamer Bhasha Dam by 2030,' Iqbal said, adding that the two dams would together add 7 million acre-feet of water storage capacity, 6 million from Diamer Bhasha and 1 million from Mohmand. A federal task force led by the Deputy Prime Minister and comprising all four provincial chief ministers had been formed to oversee the implementation of water infrastructure projects, the planning minister said.
Business Recorder
06-06-2025
- Business
- Business Recorder
‘Monthly Development Plan' unveiled: Pakistan upbeat about 4.2pc growth
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal reaffirmed confidence in achieving a 4.2 percent GDP growth rate in fiscal year 2025-26, projecting a climb to six percent by the fiscal year 2028-29 of the current five-year plan. Speaking to the media at the launch of the Monthly Development Plan on Thursday, he said the government had achieved a significant milestone by preparing a Rs4 trillion national development outlay for the fiscal year 2025–26, in just the second year of its five-year term, a target originally scheduled for 2028–29. According to documents shared by the Planning Ministry, the minister said that the government projected GDP growth targets 4.2 percent for fiscal year 2025-26, 5.1 percent for 2026-27, 5.7 percent for 2027-28 and 6 percent for fiscal year 2028-29. Budget FY26: APCC proposes historic Rs4.083trn outlay The agriculture sector growth targets have been projected 4.5 percent for fiscal year 2025-26, 4.4 percent for 2026-27, 4.6 percent for 2027-28 and 5.1 percent for fiscal year 2028-29. The minister said that the ministry has proposed Rs17.083 trillion National Development Outlay for next five years. He said that a total of 1.1 trillion for fiscal year 2024-25, Rs1.28 billion for 2025-26, Rs1.41 trillion for 2026-27, Rs1.53 trillion for 2027-28 and Rs1.7 trillion for fiscal year 2028-29. About the Industry, the ministry gave projection of growth targets, 4.3 percent for fiscal year 2025-26, 6.2 percent for 2026-27, 6.8 percent for 2027-28 and 6.9 percent for fiscal year 2028-29. About the services sector, the ministry projected four percent growth target for fiscal year 2025-26, five percent for 2026-27, 5.7 percent for 2027-28 and 6.2 percent for fiscal year 2028-29. About the total investment percent of GDP, according to documents, 13.8 percent target has been set for financial year 2025, 14.7 percent for 2026, 15.6 percent for financial year 2027, 16.4 percent for 2028 and 17 percent for fiscal year 2029. About the public sector, 2.9 percent target of total investment of GDP for fiscal year 2025, 3.2 percent for 2026, 3.5 percent for 2027, 3.5 percent for 2028 and 3.7 percent for fiscal year 2029. About the private sector investment, the Ministry proposed 9.1 percent target for fiscal year 2025, 9.8 percent for 2026, 10.4 percent for 2027, 11.1 percent for 2028 and 11.6 percent for fiscal year 2029. About the National Saving percentage of GDP, 14.1 percent investment target of GDP for fiscal year 2025, 14.3 percent for 2026, 15.1 percent for 2027, 15.6 percent for 2028, and 15.8 percent for fiscal year 2029. According to documents, the export would be increased $ 63 billion in five years, inflation would be reduced 6.2 percent and foreign direct investment would be increased 30 percent. The unemployment rate would be reduced to underfive percent and industrial production would be increased 40 percent. The planning minister said, 'We have a broader vision of transforming Pakistan into a $1 trillion economy by 2035. If we can reach $600 billion by 2029, adding another $400 billion over the next five to seven years is certainly within reach'. He said that outlining strategic priorities for the coming year, the government's focus would be on 'governance, innovation, and reform' to maintain growth momentum. He said that in a major positive development, the minister highlighted that headline inflation had dropped to 3.5 percent in May 2025, down sharply from 11.8 percent a year earlier. 'Only a few countries in the world have managed to bring double-digit inflation down so drastically in such a short time,' he noted. He said that foreign remittances had also seen a considerable jump, with inflows increasing by $10 billion over the past three years. He said that our remittances have grown from $27 billion to $37 billion, crediting the Pakistani diaspora for their resilience and patriotism. Sharing recent financial successes, the minister said Pakistan had posted a $1.9 billion current account surplus between July and April — a sharp reversal from a $1.3 billion deficit during the same period last year. He also revealed that improved project evaluation by the Planning Commission had saved the national treasury Rs5.4 billion last month. 'Better scrutiny and smarter planning make a big difference,' he said. Turning to national security, the minister mentioned a high-level, single-agenda meeting chaired by Prime Minister Shehbaz Sharif and attended by key national leadership, including representatives from Azad Jammu and Kashmir and Gilgit-Baltistan. 'The agenda was clear, crafting a unified national strategy to counter Indian aggression and provocations,' he said, warning India against weaponising water resources, which he described as a violation of international agreements. 'Pakistan's water rights are not a favour from India, they are protected by international treaties,' he asserted. Ahsan Iqbal said that just as Pakistan's armed forces had shattered India's arrogance on the battlefield, the country would counter India's economic and political hostility with unity, resilience, and adherence to international law. Copyright Business Recorder, 2025
Business Recorder
06-06-2025
- Business
- Business Recorder
‘Monthly Development Plan' unveiled: Govt upbeat about 4.2pc growth
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal reaffirmed confidence in achieving a 4.2 percent GDP growth rate in fiscal year 2025-26, projecting a climb to six percent by the fiscal year 2028-29 of the current five-year plan. Speaking to the media at the launch of the Monthly Development Plan on Thursday, he said the government had achieved a significant milestone by preparing a Rs4 trillion national development outlay for the fiscal year 2025–26, in just the second year of its five-year term, a target originally scheduled for 2028–29. According to documents shared by the Planning Ministry, the minister said that the government projected GDP growth targets 4.2 percent for fiscal year 2025-26, 5.1 percent for 2026-27, 5.7 percent for 2027-28 and 6 percent for fiscal year 2028-29. Budget FY26: APCC proposes historic Rs4.083trn outlay The agriculture sector growth targets have been projected 4.5 percent for fiscal year 2025-26, 4.4 percent for 2026-27, 4.6 percent for 2027-28 and 5.1 percent for fiscal year 2028-29. The minister said that the ministry has proposed Rs17.083 trillion National Development Outlay for next five years. He said that a total of 1.1 trillion for fiscal year 2024-25, Rs1.28 billion for 2025-26, Rs1.41 trillion for 2026-27, Rs1.53 trillion for 2027-28 and Rs1.7 trillion for fiscal year 2028-29. About the Industry, the ministry gave projection of growth targets, 4.3 percent for fiscal year 2025-26, 6.2 percent for 2026-27, 6.8 percent for 2027-28 and 6.9 percent for fiscal year 2028-29. About the services sector, the ministry projected four percent growth target for fiscal year 2025-26, five percent for 2026-27, 5.7 percent for 2027-28 and 6.2 percent for fiscal year 2028-29. About the total investment percent of GDP, according to documents, 13.8 percent target has been set for financial year 2025, 14.7 percent for 2026, 15.6 percent for financial year 2027, 16.4 percent for 2028 and 17 percent for fiscal year 2029. About the public sector, 2.9 percent target of total investment of GDP for fiscal year 2025, 3.2 percent for 2026, 3.5 percent for 2027, 3.5 percent for 2028 and 3.7 percent for fiscal year 2029. About the private sector investment, the Ministry proposed 9.1 percent target for fiscal year 2025, 9.8 percent for 2026, 10.4 percent for 2027, 11.1 percent for 2028 and 11.6 percent for fiscal year 2029. About the National Saving percentage of GDP, 14.1 percent investment target of GDP for fiscal year 2025, 14.3 percent for 2026, 15.1 percent for 2027, 15.6 percent for 2028, and 15.8 percent for fiscal year 2029. According to documents, the export would be increased $ 63 billion in five years, inflation would be reduced 6.2 percent and foreign direct investment would be increased 30 percent. The unemployment rate would be reduced to underfive percent and industrial production would be increased 40 percent. The planning minister said, 'We have a broader vision of transforming Pakistan into a $1 trillion economy by 2035. If we can reach $600 billion by 2029, adding another $400 billion over the next five to seven years is certainly within reach'. He said that outlining strategic priorities for the coming year, the government's focus would be on 'governance, innovation, and reform' to maintain growth momentum. He said that in a major positive development, the minister highlighted that headline inflation had dropped to 3.5 percent in May 2025, down sharply from 11.8 percent a year earlier. 'Only a few countries in the world have managed to bring double-digit inflation down so drastically in such a short time,' he noted. He said that foreign remittances had also seen a considerable jump, with inflows increasing by $10 billion over the past three years. He said that our remittances have grown from $27 billion to $37 billion, crediting the Pakistani diaspora for their resilience and patriotism. Sharing recent financial successes, the minister said Pakistan had posted a $1.9 billion current account surplus between July and April — a sharp reversal from a $1.3 billion deficit during the same period last year. He also revealed that improved project evaluation by the Planning Commission had saved the national treasury Rs5.4 billion last month. 'Better scrutiny and smarter planning make a big difference,' he said. Turning to national security, the minister mentioned a high-level, single-agenda meeting chaired by Prime Minister Shehbaz Sharif and attended by key national leadership, including representatives from Azad Jammu and Kashmir and Gilgit-Baltistan. 'The agenda was clear, crafting a unified national strategy to counter Indian aggression and provocations,' he said, warning India against weaponising water resources, which he described as a violation of international agreements. 'Pakistan's water rights are not a favour from India, they are protected by international treaties,' he asserted. Ahsan Iqbal said that just as Pakistan's armed forces had shattered India's arrogance on the battlefield, the country would counter India's economic and political hostility with unity, resilience, and adherence to international law. Copyright Business Recorder, 2025
Business Recorder
03-06-2025
- Business
- Business Recorder
Advisor highlights agri output decline
PESHAWAR: Advisor to the Chief Minister of Khyber Pakhtunkhwa on Finance and Inter-Provincial Coordination, Muzzammil Aslam stated that according to the federal government, there has been a 15% decline in the production of major crops, which includes a 30% decline in cotton production alone. As a result, an additional five billion dollars will need to be spent on cotton imports. Similarly, due to the drop in wheat production, 3 billion dollars will be spent on wheat imports. Overall, the decrease in agricultural output will force Pakistan to import goods worth $10 billion, representing a loss of Rs2,800 billion to the country and its farmers. He said the government had claimed that the inflation rate was 4.5% or 4.7%, but it is now admitting that inflation will rise to 7.5% next year. Muzzammil Aslam noted that Pakistan's GDP this year was Rs114 trillion, and next year it's expected to increase to Rs129 trillion. Despite this, only Rs1 trillion has been allocated for development expenditures and the federal government is not launching any new projects. Likewise, no new projects have been allocated to the provinces. Of the Rs1 trillion development budget, Rs120 billion is from savings that were not provided as fuel subsidies, which are being used to build roads in Balochistan. This means that the actual Public Sector Development Programme (PSDP) is only Rs880 billion. He further stated that under the 'Uraan Pakistan' programme, discussions were held on sports, water, and the environment, and Rs65 billion was initially allocated to higher education. This has now been slashed to Rs45 billion without any consultation with the provinces. Muzzammil Aslam pointed out that the government had earlier said that projects which are more than 75% complete would be prioritized, yet two road projects in Khyber Pakhtunkhwa that were over 90% complete have been deleted, which he called a clear injustice and raised during today's meeting. He questioned, 'If the government claims inflation is being brought down to 1%, why is the interest rate still at 11%.' He said that Rs2 to 2.5 trillion in savings from interest payments this year should be redirected to development projects but it is not happening. He said that according to the Planning Ministry, 118 development projects have been scrapped, while the government is claiming that the growth rate will be 4.2% next year, with inflation at 7.5%. Exports will not increase significantly, but imports will rise, and $39.5 billion in remittance has been estimated. Copyright Business Recorder, 2025
