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Business Recorder
10-06-2025
- Business
- Business Recorder
Pakistan increases defence spending by 20% after recent clashes with India
Pakistan has allocated Rs2.56 trillion for its defence budget in the incoming fiscal year (FY26), a 20% increase from the proposed budget last year. The government proposed Rs2.13 trillion in FY25 budget, which was later revised to Rs2.19 trillion. When compared with the revised budget last year, the increase in the upcoming budget will stand at around 17%. The increase in budget spending comes at a time when tensions between neighbouring Pakistan and India remain high. Finance Minister Muhammad Aurangzeb announced Pakistan's federal budget 2025-26 'for a competitive economy' on Tuesday, targeting a modest 4.2% growth for the coming fiscal year, compared to 2.7% expected in the outgoing FY25. 'The country's defence is our top priority,' said Aurangzeb during his address, as he lauded the role of the country's leadership, especially the armed forces, for their role against recent clashes with India. Pakistan had allocated Rs2.12 trillion for defence in the FY 2024-25. Its defence budget was raised by 16.4% last year. The government, in recognition of services from the armed forces, also proposed to provide special allowances to the officers and soldiers of the armed forces. These expenses will be met from the defence budget for the fiscal year 2025-26. Addressing the federal cabinet meeting, Prime Minister Shehbaz Sharif said that Pakistan is now in a take-off position, and all economic indicators are satisfactory. 'After defeating India in a conventional war, now it has to surpass it in the economic field as well,' the PM said. 'If there is passion and desire, nothing is impossible; everyone will have to work together day and night to move forward,' he added. Earlier, Tola Associates, a tax advisory and consultancy firm, has proposed to raise the defence budget to Rs2.8 trillion, reflecting a 32% increase as compared to the last fiscal, 'due to the war situation with the neighbouring country and the new recruitment of army personnel'. Ties between Pakistan and India nosedived after a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK) last month that New Delhi said was backed by Islamabad. Pakistan denied involvement, but intense fighting broke out when India struck what it said were 'terrorist camps' in Pakistan. They agreed on a ceasefire, which has largely held.
Business Recorder
10-06-2025
- Business
- Business Recorder
Pakistan increases defence spending by over 20% after recent clashes with India
Pakistan has announced to raise its defence budget significantly by over 20% as the government allocated Rs2.55 trillion for the incoming fiscal year (FY26). The increase in budget spending comes at a time when tensions between neighbouring Pakistan and India remain high. Finance Minister Muhammad Aurangzeb announced Pakistan's federal budget 2025-26 'for a competitive economy' on Tuesday, targeting a modest 4.2% growth for the coming fiscal year, compared to 2.7% expected in the outgoing FY25. 'The country's defence is our top priority,' said Aurangzeb during his address, as he lauded the role of the country's leadership, especially the armed forces, for their role against recent clashes with India. Pakistan had allocated Rs2.12 trillion for defence in the FY 2024-25. Its defence budget was raised by 16.4% last year. Addressing the federal cabinet meeting, Prime Minister Shehbaz Sharif said that Pakistan is now in a take-off position, and all economic indicators are satisfactory. 'After defeating India in a conventional war, now it has to surpass it in the economic field as well,' the PM said. 'If there is passion and desire, nothing is impossible; everyone will have to work together day and night to move forward,' he added. Earlier, Tola Associates, a tax advisory and consultancy firm, has proposed to raise the defence budget to Rs2.8 trillion, reflecting a 32% increase as compared to the last fiscal, 'due to the war situation with the neighbouring country and the new recruitment of army personnel'. Ties between Pakistan and India nosedived after a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK) last month that New Delhi said was backed by Islamabad. Pakistan denied involvement, but intense fighting broke out when India struck what it said were 'terrorist camps' in Pakistan. They agreed on a ceasefire, which has largely held.
Express Tribune
09-06-2025
- Business
- Express Tribune
Power capacity rises to 46,605MW
Pakistan's installed electricity generation capacity rose to 46,605 megawatts (MW) during the first nine months of the ongoing financial year 2024-25, adding further strain on consumers due to mounting capacity payments for idle plants that produce no power. According to the Economic Survey 2024-25 released on Monday, the country's generation capacity grew by 1.6% from 45,888 MW recorded during the same period last year. This increase was primarily attributed to the addition of 2,813 MW through net metering, said the government. However, this expansion has intensified capacity payments, which now stand at Rs2.5 trillion to Rs2.8 trillion annually, burdening consumers who are compelled to pay for plants that remain idle. In an effort to reduce this financial strain, the government has terminated Power Purchase Agreements (PPAs) with several Independent Power Producers (IPPs) effective October 1, 2024. These include HUB Power, Lalpir Power, Pakgen Power, Rousch Power, Saba Power, and Atlas Power. The composition of the country's installed capacity by source stands at thermal (55.7%), hydel (24.4%), renewable (12.2%), and nuclear (7.8%). While thermal power remains the dominant source, its share has declined in recent years, reflecting a gradual shift toward indigenous and cleaner energy alternatives. Out of total electricity generation of 90,145 gigawatt-hours (GWh), the share of hydel, nuclear, and renewable energy combined reached 53.7%a significant move towards more sustainable energy sources. As of March 2025, the Private Power and Infrastructure Board (PPIB) had facilitated 88 operational IPPs with a cumulative capacity of 20,726 MW. The government's focus on renewable and local energy is further underlined by the fact that 84% of upcoming projects are in the clean energy sector. Power consumption Electricity consumption, however, showed a decline. During July-March FY2025, Pakistan's total electricity consumption stood at 80,111 GWh, down 3.6% from 83,109 GWh in the corresponding period of FY2024. This reduction is largely attributed to energy conservation measures, increased power tariffs, the growing use of off-grid solar systems, and sluggish industrial activity. The household sector accounted for 49.6% (39,728 GWh) of total consumption, up from 47.3% (39,286 GWh) the previous year. This indicates rising residential demand, likely driven by population growth, increased use of electrical appliances, and stable weather patterns. In contrast, industrial consumption fell to 21,082 GWh from 22,031 GWh, lowering its share from 26.5% to 26.3%. The agriculture sector saw the sharpest dropa 34.3% decline from 6,951 GWh to 4,566 GWhreducing its share to 5.7%. This was likely due to changing irrigation practices, rainfall variability, and a shift towards diesel-powered or solar alternatives amid high electricity prices. The commercial sector posted a slight increase in consumption, rising from 6,776 GWh to 6,898 GWh, lifting its share to 8.6%, reflecting modest improvements in retail and business activities in urban areas. Oil sector In the oil sector, total petroleum product consumption reached 13.17 million metric tonnes (MMT) during July-March FY2025, up 7.04% from 12.30 MMT in the same period last year. The transport sector remained the largest consumer, with usage increasing 7.99% to 10.54 MMT, comprising 80% of total demand. This growth reflects improved trade and logistics activity, alongside greater mobility. Industrial oil consumption fell 7.35% to 755.40 thousand tonnes due to reduced output in energy-intensive industries and fuel-switching to cheaper alternatives such as natural gas. The power sector's petroleum use plummeted 77.68% to just 116.21 thousand tonnes as reliance on furnace oil declined in favour of hydropower, coalincluding Thar coalnuclear energy, and imported LNG. The domestic sector's petroleum use rose moderately by 7.34%, while the agriculture sector posted a slight decline of 3.35%. The government sector recorded a small increase of 3.27%. During July-March FY2025, petroleum product imports climbed to 12.53 MMT, up 12.5% in volume, though the import bill remained stable at $8.4 billion due to lower global prices and improved procurement practices. Motor spirit (petrol) imports rose 11.3% in volume but fell 5.1% in value to $3.04 billion, reflecting favourable global prices. High-Octane Blending Component (HOBC) imports soared more than eightfold to 144.44 thousand tonnes, with the value rising to $108.40 million amid growing demand for premium fuels. High-speed diesel imports also increased 17.4% to 1.45 MMT, though the import bill edged lower to $1.01 billion. Crude oil imports rose by 8.8% to 6.76 MMT, but costs remained flat at $4.11 billion due to softened global prices. Higher crude imports align with increased domestic refining activity aimed at meeting local fuel demand. Jet fuel imports almost doubled to 195.67 thousand tonnes, with their value rising to $143.10 million, signalling recovery in domestic and international air travel. A small quantity of aviation gasoline (0.24 thousand tonnes) was imported, not recorded in the previous year. Gas sector Domestic natural gas met 29.3% of the country's total primary energy supply in FY2024. The country has a 14,276 km transmission network and over 200,000 km of distribution pipelines serving 10.7 million consumers. To address rising demand, the government is enhancing both local production and imports. Two Floating Storage Regasification Units (FSRUs) currently process 1,200 million cubic feet per day (MMCFD) of RLNG.
Express Tribune
02-06-2025
- Business
- Express Tribune
Govt approves Rs1tr uplift budget
The government on Monday approved a Rs1 trillion federal development budget and set the economic growth target at 4.2% for the next fiscal year, as Planning Minister Ahsan Iqbal said that the development budget cuts could compromise economic growth and delay strategic projects. The Annual Plan Coordination Committee (APCC) approved a record Rs4.1 trillion national development outlay, primarily backed by a Rs2.8 trillion financing envelope from the four provinces. Despite limited resources, the Sindh government secured Rs86 billion from the federal Public Sector Development Programme (PSDP), leveraging its alliance with the ruling coalition. "The Pakistan Peoples Party took advantage of being an ally of the government that is dependent on its vote for the budget," said a cabinet minister. Planning Minister Ahsan Iqbal, speaking after chairing the APCC meeting, said the Rs1 trillion PSDP includes Rs120 billion earmarked for the N-25 Quetta-Chaman-Karachi expressway. He confirmed that the committee had also approved a 4.2% growth target and a 7.5% inflation target for the fiscal year 2025-26. These recommendations will now be submitted to the National Economic Council for final approval, said Iqbal. He identified top-priority projects for the upcoming year, including the Diamer Basha Dam, the Karakoram Highway, the Hyderabad-Sukkur Motorway, and the N-25 Expressway from Karachi to Quetta. However, he expressed concern that the remaining Rs880 billionafter accounting for the expresswaywould be inadequate, potentially compromising future economic growth. He added that enhancing the development budget would be impossible without a significant increase in tax revenues. "The water sector is our priority but due to limited resources and with current allocation, it will take 20 years to complete the Diamer Basha dam project," said Iqbal. He maintained, however, that the government would strive to allocate maximum resources to ensure its completion within the next three to four years. Ironically, despite increasing threats from India over water security, the federal water sector allocation has been slashed by 45%or Rs119 billionbringing it down to Rs140 billion for FY2025-26. The planning minister reiterated that the commodity-producing sectors are expected to grow by 4.4%, led by a 4.5% recovery in agriculture and 3.5% growth in large-scale manufacturing. Exports are projected at $35 billion, while foreign remittances are expected to exceed $39 billion. "I am thankful to overseas Pakistanis who, despite calls to the contrary, sent $10 billion in additional remittances over the past two years," he added. The Rs1 trillion federal PSDP was finalised by a committee formed by Prime Minister Shehbaz Sharif. According to the APCC working paper, this year's development outlay is Rs300 billionor 8%higher than the previous year's budget. The four provincial governments are set to increase development spending by 28% from their own resources – enabled by substantial revenues under the 2010 National Finance Commission (NFC) award. Despite the record outlay, the Rs1 trillion federal PSDP is actually Rs400 billion lower than the originally approved budget for the current fiscal year. To fund this, the federal government plans to borrow Rs270 billion externally. The four governments plan to spend Rs2.8 trillion, higher by Rs609 billion or 28% over this year's original budget. Provincial governments will borrow Rs802 billion, while state-owned companies will spend another Rs288 billion outside the federal budget. Punjab leads provincial spending with a proposed Rs1.19 trillion allocation41% higher than last year. Khyber-Pakhtunkhwa (K-P) follows with Rs440 billion, reflecting a 63% increase. Sindh will spend Rs887 billion, up 7%, and Balochistan plans to spend Rs280 billion, marking an increase of Rs32 billion. KP's Finance Advisor, Muzzammil Aslam, criticised the federal government for allocating disproportionately less funding to his province compared to Sindh. "Only Rs3 billion were allocated to K-P, while Sindh received Rs47 billion. Punjab got Rs15 billion," he said. In response, Iqbal clarified that Rs70 billion has been allocated for K-P's merged districts and that the federal government is cutting back on spending for projects that fall under provincial jurisdiction. The APCC decided not to include any new provincial-nature projects in the PSDP due to fiscal limitations and imposed a moratorium on the approval of projects costing up to Rs1 billion until the International Monetary Fund (IMF) programme concludes. Despite these constraints, 30-40% of PSDP funds are still being directed to provincial-nature projects, which the planning ministry said has significantly hampered progress on large-scale national initiatives. In contrast, funding for the National Highway Authority (NHA) has increased by Rs49 billion, or 27%, to Rs229 billion. However, to accommodate the political priorities of coalition partners, the government has proposed sharp reductions in water and power sector budgets. The power sector's funding is down 41%or Rs72 billionto Rs104 billion. The federal education ministry's budget is reduced by 27% to Rs20 billion, while the Higher Education Commission will face a 32% cut, reducing its budget to Rs45 billion. Still, the government has retained Rs50 billion for parliamentarians' schemes under the Sustainable Development Goals Achievement Programme. Currently, 1,071 development projects with a total cost of Rs13.4 trillion are under implementation. These projects require an additional Rs10.2 trillion to be completed, and the planning ministry estimates it would take more than a decade to finish them all. Iqbal stated that the ministry has identified 183 slow-moving or problematic projectsmostly under the DDWPthat should be capped or closed by June 2025. "By capping or closing these projects, around Rs1 trillion could be saved, freeing up Rs100 billion immediately for fast-moving projects," he said.
Time of India
30-05-2025
- Time of India
MCOCA against dacoits who targeted windmill site in Beed
Chhatrapati Sambhajinagar: Beed district police have invoked the Maharashtra Control of Organised Crime Act (MCOCA) against a gang of dacoits involved in a high-profile theft on April 7 when they looted equipment worth ₹12.9 lakh from Avada company's wind turbine installation site at Vida village in Kej taluka. Tired of too many ads? go ad free now The site's watchman, Akash Bhaskar Jadhav (26), and his colleague, Abhijit Dundhav, filed a complaint in this regard. Jadhav said the incident occurred on April 7. Around 11.45pm, 14 unidentified people arrived at the location. When the complainants confronted them, four of them assaulted the duo with wooden sticks and tied them up. The remaining 10 climbed up a ladder into the wind turbine's structure and stole key components — including a rotor cable (Rs2 lakh), starter cable (Rs8.1 lakh) and earthing cable (Rs2.8 lakh) — together worth Rs12.9 lakh. An FIR was filed under IPC section 310 (2) at Kej police station and a detailed investigation launched. On April 14, the Kej police and Beed's local crime branch teams arrested four of the accused — Baban Sardar Shinde (40) of Nandurghat, Dhanaji Ravji Kale (23) of Terkheda in Dharashiv, Mohan Hari Kale (30) and Lalasahab Sakharam Pawar (26) of Dasmegaon. Six other members of the gang have been identified and are absconding. Police recovered stolen property — including copper wire and a four-wheeler — worth Rs9 lakh from the arrested men. Beed superintendent of police Navneet Kanwat said, "Investigations revealed that the gang has carried out 11 serious crimes in Beed and Dharashiv districts, including armed robberies, burglaries and grievous assaults within Kej, Neknur, Dhoki and Vashi police station limits." Kej police inspector Vaibhav Patil prepared a proposal to invoke MCOCA based on the criminal history and organised nature of the gang. The proposal was submitted to Kanwat on May 13 and forwarded to special IG Virendra Mishra at Chhatrapati Sambhajinagar, who granted the sanction on May 29. "Subsequently, MCOCA sections 3 (1) (ii), 3 (2) and 3 (4) were invoked. The case has been transferred to assistant SP Kamlesh Meena of Kej for further investigation," said Kanwat.
