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Business Recorder
11-06-2025
- Business
- Business Recorder
KCCI says budget lacks steps for economic growth
KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has criticised the federal budget 2025-26, describing it as a 'more enforcement, less progressive' budget that lacks substantial measures for economic growth. Speaking to the media after the budget announcement by Federal Finance Minister Muhammad Aurangzeb, Chairman Businessmen Group (BMG) Zubair Motiwala, alongside KCCI President Muhammad Jawed Bilwani and other industry representatives, acknowledged the budget's technical soundness but expressed concerns over its limited focus on growth-oriented policies. Motiwala highlighted a significant imbalance in the budget's approach, noting that while import-related incentives have been proposed, there are no corresponding relief measures for exports. 'This is technically a sound budget but measures for economic growth are missing in it,' he stated. The business leader criticised the budget as a 'camouflage' document, suggesting that crucial details would emerge only after implementation. He expressed disappointment that despite the federal minister's emphasis on digitalisation, FBR's strict enforcement, and revenue collection, no attention was paid to exports growth and industrialisation. 'No measures were proposed in this budget for reduction in cost of doing business and cost of production.' Chairman BMG criticised the government for setting overly ambitious goals despite the country's poor economic performance in the previous fiscal year, during which all major targets, including GDP growth and fiscal consolidation, were missed. He questioned the rationale behind increasing the targets without providing any practical explanation of how these would be achieved, especially in a fragile economic environment dominated by uncertainty, high inflation, and IMF-imposed constraints. While acknowledging positive developments such as the reduction in interest rates, current account surplus, and a $2 billion increase in foreign reserves, he criticised the government's decision to increase gas tariffs. 'Prime fuel for export sector is gas and the government is increasing the tariff instead of reducing it.' The KCCI leader expressed disappointment over the agriculture sector's poor performance, which showed a depressing growth of just 0.6 percent against the ambitious target of 13 percent. He also criticized the allocation of only Rs1000 billion for the Public Sector Development Program (PSDP) calling it woefully inadequate, particularly in light of the deteriorating state of infrastructure. 'It is surprising to see a meagre allocation of Rs2.783 billion for climate change in a country which has witnessed increased frequency of climate-related disasters,' he added. While acknowledging that the budget was presented under strict IMF conditions, he said that despite being technically compliant, it fails to address the pressing needs of Pakistan's industrial sector or its citizens. He described the budget as one that may satisfy external lenders but does not offer any practical hope for businesses or the wider population. Vice Chairman BMG Anjum Nisar underscored the importance of establishing a fair and transparent taxation system that does not rely on intimidation or arbitrary enforcement. He warned that the environment being created through the proposed fiscal measures could foster fear among businesses instead of encouraging growth. He said that Karachi remains the economic lifeline of Pakistan and deserves special attention to unlock its full potential. Rather than continuously burdening it with revenue responsibilities, the government should empower it with infrastructure investment and policy support to enable it to contribute even more to the national economy. President KCCI Muhammad Jawed Bilwani rejected the budget, stating it completely failed to offer any meaningful relief to the industrial sector or the general public. He said the government's claim of reduced inflation does not align with the realities faced by households, where electricity bills remain unaffordable and basic necessities are out of reach. He criticised the lack of measures to reduce electricity tariffs and interest rates, which are key drivers of the high cost of doing business. He emphasised that without addressing these core issues, neither industrial expansion nor job creation is possible. The high cost of energy and borrowing has severely impacted the viability of businesses, and without urgent intervention, many enterprises may not survive. Bilwani expressed concern over the government's over-reliance on remittances and IMF programs to manage the economy, calling it an unsustainable and short-sighted approach. He stressed the need to develop a conducive environment for industrial growth, which is the only way to improve key economic indicators. He also criticised the minimal allocation for long-delayed infrastructure projects like K-IV, terming it a sign of the government's disregard for Karachi's needs and its vital contribution to the national economy. Despite repeated demands from the business community, no concrete steps have been taken to broaden the tax net or introduce structural economic reforms, which remain essential for long-term economic stability, he said, raising concerns about agricultural governance, noting that while the sector didn't perform when it was a federal subject, its transfer to provincial governments under the 18th Amendment has not yielded the expected improvements. Calling the entire budget an eye wash, Bilwani expressed frustration over the government's failure to implement serious measures for broadening the tax base, noting that the country continues to rely heavily on home remittances rather than expanding domestic revenue sources. However, not all business associations shared the KCCI's pessimistic assessment. The President of the Karachi Customs Agents Association (KCAA) termed it a 'public friendly budget,' welcoming its potential to provide relief to common citizens, particularly the salaried class. The KCAA president also praised the government's decision to reduce overall customs tariffs to rational levels over the next five years, describing the budget as 'so far so good.' Meanwhile, Mashood Khan, an expert of auto sector said that the FM's budget speech closely mirrors the IMF's recommendations. The downward trend in additional customs duty, regulatory duty and customs duty will likely hit local manufacturing instead of exports in the future, foreseeing severe consequences for our local manufacturing industry. He said that the auto parts and other manufacturing sectors would face significant challenges, urging FM to revisit the budget before seeking approval from the National Assembly. Copyright Business Recorder, 2025
Business Recorder
11-06-2025
- Business
- Business Recorder
Four dozens power projects to get Rs92bn
ISLAMABAD: The government has earmarked over Rs 92 billion for four dozen power sector projects for the fiscal year 2025-26 under Public Sector Development Program (PSDP). According to official documents, Rs 4 billion has been earmarked for interconnection of isolated Makran Network at Basima via Nag G/ Station ( Qesco), Rs 384 million for six feeders fro Free Zone North and South (GPA) Gwadar, Rs 201 million for construction of 1132 Grid Station in Omach area District Khuzdar, Rs 183 million for 132 kV Grid station Washuk with allied 132 kV transmission line (82 KMS), Rs 704 million for electrification of villages Dera Bugti (Dera Bugti Package) revised, Rs 271 million for 220/kV Swabi Substation, Rs 1.439 billion for 220 kv Swabi Substation, Rs 4.440 billion for 500 kV Allama Iqbal Industrial city for 600 MW demand of the SEZ in the FIEDMC area. PD proposes Rs392.5bn PSDP for in-house projects The government has allocated Rs 508 million for replacement of LT bare conductor ABC cable in Peshawar, Khyber and Bannu Circle, Rs 174.6 million for supply of power to SEZ Hattar, Rs 314.6 million for supply of power for SEZ Rashakai, Rs 1.118 million for 220 kV Quaid-e-Azam Apparel and Business Park (QABP) Grid Station for provision of electricity to PEIDMC SEZ, Rs 2.94 billion for Advance Metering Infrastructure (AMI) project in IESCO, Rs 1.770 billion for MEPCO, Rs 1.89 billion for HESCO, ERs 2.427 billion for PESCO, Rs 1 billion for 500 kV Matiari-Moro R Y Khan (T/L), Rs 1.599 billion for installation of assets performance management system on 100 kV and 200 kV distribution transformers all Discos. An allocation of Rs 10.970 billion has been made for evacuation of power from 2160 MW Dasu HPP stage-1, Rs 1.629 billion for enterprise resource planning to improve productivity and control in NTDC system, Rs 3.5 billion for evacuation of power from Suki Kinari, Kohala, Mahal HPPs (revised name evacuation of power from Suki Kinari), Rs 840 million for evacuation of from Tarbela 5th extension, Rs 1.7 billion for installation of pilot battery energy storage at Jhampir G/Station, Rs 800 million for evacuation of power from wind power projects at Jhimpir and Gharo wind clusters (revised) Rs 998 million for Upgradation/ Extension of NTDC's Telecommunication & SCADA System at NPCC, Rs 1.2 billion for 220kV Arifwala Substation, Rs 5 billion for 220kV Dharki - Rahim Yar Khan - Bahawalpur D/C T/L and Rs 2.5 billion for 500/220kV Sialkot. Copyright Business Recorder, 2025
The Star
10-06-2025
- Business
- The Star
Roundup: Pakistan targets 4.2 pct GDP growth for new fiscal year
ISLAMABAD, June 10 (Xinhua) -- Pakistan's Federal Minister for Finance and Revenue Muhammad Aurangzeb on Tuesday presented the federal budget for the fiscal year 2025-26, setting a gross domestic product (GDP) growth target of 4.2 percent, as the country aims to consolidate economic stability and promote inclusive, sustainable growth. Addressing the budget session in the National Assembly, Aurangzeb said the total outlay for the federal budget stands at 17,600 billion rupees (about 63.18 billion U.S. dollars), which is 7 percent lower than the 18,900 billion rupees (about 67.84 billion dollars) allocated for the outgoing fiscal year. The finance minister said the government is committed to building a competitive economy through structural reforms, fiscal discipline, and targeted relief measures, as outlined in the government's 5-E framework, which includes export, equity, empowerment, environment, and energy. To support revenue generation, the government has set a tax collection target of 14,130 billion rupees (about 50.74 billion dollars), including 6,900 billion rupees in direct taxes and 7,200 billion rupees in indirect taxes. The non-tax revenue target stands at 5,150 billion rupees (about 18.49 billion dollars). A total of 8,200 billion rupees (about 29.46 billion dollars) has been allocated for interest payments, accounting for nearly 47 percent of total expenditure. The budget deficit is projected at 3.9 percent of GDP, while the government expects a primary surplus of 2.4 percent of GDP and a current account surplus of 1.5 billion dollars. Aurangzeb added that the country anticipates remittance inflows of 37 to 38 billion dollars in the coming fiscal year, while consumer price index inflation is forecast at 7.5 percent. The Public Sector Development Program has been allocated 1,000 billion rupees (about 3.59 billion dollars), focusing primarily on transport infrastructure and basic services aligned with sustainable development goals. Pakistan has also raised its defense budget to 2,550 billion rupees (about 9.16 billion dollars), up from 2,120 billion rupees (about 7.61 billion dollars) in the outgoing fiscal year, representing an increase of over 20 percent. The government has earmarked 1,055 billion rupees (about 3.79 billion dollars) for pensions, 1,186 billion rupees (about 4.26 billion dollars) for subsidies, and 1,928 billion rupees (about 6.93 billion dollars) for grants. To provide relief to the salaried class, the government has reduced income tax rates across several brackets. Individuals earning between 600,000 to 1,200,000 rupees annually will now be taxed at 2.5 percent, down from 5 percent. Other tax brackets have also been adjusted downward to ease the burden on middle-income groups. Aurangzeb shed light on the agricultural sector, saying that fields were being revived under the Green Pakistan Initiative. "Genetic improvement and post-harvest processes will be focused on," he said, adding that a total of 1,000 agriculture graduates had been sent to China on government-funded programs. He also announced five new livestock schemes. The finance minister also announced that the government is preparing to issue its first Panda Bonds to access the Chinese capital market. The new budget will take effect from July 1, following parliamentary approval and the president's assent.
Business Recorder
03-06-2025
- Business
- Business Recorder
Stocks soar to all-time high level
KARACHI: The Pakistan Stock Exchange (PSX) closed at a new all-time high level on Tuesday driven by positive expectations from the upcoming budget and news of the Asian Development Bank's (ADB) approval of $800 million for Pakistan. The benchmark KSE-100 Index jumped 1,573.07 points or 1.32 percent to close at 120,451 points, crossing the 120,000-point mark for the first time on a closing basis. Market remained in green throughout the day and during the intraday trading, the index hit a high level of 120,694 points and a low level of 119,129.52 points. On Monday, BRIndex100 ended at 12,931.26 points, which was 161.91 points or 1.27 percent higher than the previous close with the total volume of 462.354 million shares. BRIndex30 also increased by 356 points or 0.95 percent to settle at 37,715.87 points with the total share trading volume of 308.199 million. Ahsan Mehnati at Arif Habib Limited (AHL) said the market closed at an all-time high, supported by broad-based buying across multiple sectors. He attributed the rally to the Asian Development Bank's (ADB) approval of an $800 million financing package for Islamabad, along with the government's proposed 4.2 percent GDP growth target for FY26 and the expected approval of Rs 880 billion Public Sector Development Program (PSDP) in the upcoming federal budget. 'Expectations of budgetary relief for oil refineries, the real estate sector, and agriculture, as well as rupee appreciation in the interbank market, also played a crucial role in driving the bullish close at the PSX,' he added. Trading activity remained strong on Tuesday, with 578.16 million shares changing hands, higher than the 498 million shares traded in the previous session. The traded value, on the other hand, also saw an increase to Rs 26.827 billion from Rs 23.450 billion on Monday. The overall market capitalization also rose by Rs 149 billion, reaching Rs 14.593 trillion compared to Rs 14.444 trillion on Monday. Out of 467 actively traded companies, 232 recorded gains, 187 declined, while 48 remained unchanged. Driving today's rally were key index movers including FFC, HBL, EFERT, LUCK, and BAHL, which collectively added 691 points to the benchmark. Among the top traded companies, K-Electric Ltd. ranked first on Monday with 144.646 million shares closing at Rs 5.32, followed by Faysal Bank, of which 26.656 million shares were traded and it closed at Rs 53.77. Invest Bank ranked third and closed at Rs 2.35 with 25.541 million shares turnover. PIA Holding Company Limited recorded the highest gains increase by Rs 3,231.20 and closed at a new high of Rs 35,543.19 followed by Khyber Textile Mills Limited whose share price value closed at Rs 3,376.76, up by Rs 306.98. Moreover, Sapphire Fibres Limited and Rafhan Maize Products Company Limited faced prominent losses with share values decreased by Rs 57.89 and Rs 35.12 respectively to close at Rs 1,055.19 and Rs 9,883.90. Meanwhile, BR Automobile Assembler Index closed at 21,206.26 points with a net positive change of 80.96 points or 0.38 percent with the total turnover remaining 1.565 million shares. BR Cement Index gained 95.07 points or 0.94 percent to settle at 10,247.02 points with a total turnover of 41.980 million. BR Commercial Banks Index closed at 35,694.98 points up by 685.57 points or 1.96 percent with a total turnover of 65.497 million shares. Meanwhile, BR Power Generation and Distribution Index ended at 20,847.51 points with a net positive change of 383.34 points or 1.87 percent with total turnover of 157.194 million shares. BR Oil & Gas Index closed at 11,489.18 points with a net positive change of 72.85 points or 0.64 percent on 18.443 million shares turnover. While BR Technology & Communication Index finished at 2,921.20 points marking a positive change of 18.79 points or 0.65 percent, with total turnover of 53.555 million shares. According to Topline the index surged to an intraday high of 1,816 points, as momentum picked up sharply after news broke that the Asian Development Bank (ADB) approved an $800 million loan under Pakistan's public finance program, a major vote of confidence in the country's economic reform trajectory. Adding further fuel to the rally, the IMF gave its nod to Pakistan's budget proposals, reinforcing hopes of continued fiscal discipline and policy continuity. Copyright Business Recorder, 2025
Business Recorder
28-05-2025
- Politics
- Business Recorder
Over five-year period: NA body concerned at data of increase in sugarcane yields
ISLAMABAD: The National Assembly Standing Committee on National Food Security and Research on Tuesday raised serious concerns over the data of an increase in sugarcane yields from an average of 600 maunds to 700 maunds per acre over a five-year period. The standing committee which met with MNA Syed Hussain Tariq in the chair, expressed concerns about the data presented during the Public Sector Development Program (PSDP) schemes meeting, which claimed an increase in sugarcane yields from an average of 600 maunds to 700 maunds per acre over a five-year period under a project funded with billions of rupees by the ministry. The committee members have doubts over the reliability of this data, noting that it was sourced from sugar mills, which have a tendency to underreport production figures to evade taxes, raising doubts about the accuracy of the reported increase. The committee criticised the modest yield improvement despite heavy public sector investment, calling it an inadequate return on the nation's resources and time. During the meeting, University of Agriculture Faisalabad (UAF) Vice Chancellor Prof Dr Zulfiqar Ali delivered a comprehensive briefing on the university's research initiatives and academic scope. He noted that UAF currently enrolls 33,556 students and offers 61 undergraduate, 112 postgraduate, and 225 diploma or short-course programmes. Of its 682 faculty members, 470 hold PhDs. Dr Ali outlined the university's strategic research focus, which includes genetics, seed and breed development, agronomic innovation, agro-technologies, and value addition. He highlighted progress in developing low-input, resource-efficient crops such as new durum wheat varieties. Chairman Tariq emphasised the importance of reducing crop cycles to conserve water and minimise pesticide use—an approach that also lowers the burden on farmers and promotes environmental sustainability. The briefing also showcased notable research progress, including the development of UAF-11, a high-yield Brassica variety, and Okra-3A as part of the vegetable breeding efforts. Further advancements in soybean, maize hybrids, mangoes, citrus fruits, and genetically modified sugarcane highlighted the university's dedication to improving crop yield, quality, and resilience. Dr Ali further informed the committee of the university's collaboration with the Asian Development Bank (ADB), focusing on DAP fertiliser production, import substitution, and precision agriculture. He said these efforts incorporate artificial intelligence, climate mitigation strategies, solar energy, and digital agriculture extension services. With 135 active collaborations — 84 international and 51 national—UAF also supports outreach efforts including Chinese language training and skill development for D-8 and OIC member countries. Under PSDP and ADB-funded projects, the university is establishing advanced laboratories for seed testing and certification to align with global export standards, he said. MNAs Rana Muhammad Hayat Khan, Waseem Qadir, Nadeem Abbas, Chaudhary Iftikhar Nazir, Musarrat Asif Khawaja, Zulfiqar Ali Behan, Usama Hamza, and Muhammad Ameer Sultan and senior officials of the Ministry of National Food Security and Research, Pakistan Agricultural Research Council (PARC) attended the meeting. Copyright Business Recorder, 2025
