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Express Tribune
15 hours ago
- Business
- Express Tribune
Cabinet okays uplift, pension reforms
The Khyber-Pakhtunkhwa Cabinet, in its 34th meeting held on Friday under the chairmanship of Chief Minister Ali Amin Khan Gandapur, approved a series of development initiatives and administrative reforms aimed at strengthening infrastructure, healthcare, public service delivery, and pension management across the province. One of the major decisions included the approval for procurement of 50 additional diesel-hybrid buses for the Peshawar Bus Rapid Transit (BRT) system at a cost of Rs3.2 billion. This move comes in response to the growing public demand and recent expansion of BRT routes from six to eight, including new routes DR-11, DR-13, and DR-14. With this addition, the BRT fleet will grow beyond the current 244 buses, improving service frequency and coverage. The cabinet also approved the merger of four ADP scheme campuses of the "ZamungKor" Model Institute for State Children in Swat, DI Khan, Abbottabad, and Peshawar Girls Campus into the main Peshawar-based autonomous body. The merger aims to streamline operations and improve care for over 1,000 children currently enrolled across the facilities. In a significant financial reform, the cabinet approved Pak Qatar Asset Management as the 13th asset management company under the Contributory Provident (CP) Fund Rules 2022. The CP Fund, introduced in 2015, is part of pension reforms shifting from an unfunded to a funded pension model, ensuring sustainability and investment of pension contributions through SECP-registered firms. The cabinet passed several legal amendments, including revisions to the K-P Right to Public Services Act, 2014. The updates aim to enhance e-governance, coordination, and public accountability, while also introducing provisions for marginalized communities. Amendments were also made to Khyber-Pakhtunkhwa Public Private Partnership Rules 2021, reducing the bidder response time from 60 to 30 days, to accelerate project delivery. Health sector improvements were also prioritized, with the cabinet approving enhanced funding for several ongoing projects. These include an increase in cost for Balakot's Category-C Hospital from Rs575 million to Rs924.596 million, conversion of 50 rural health centers into 24/7 facilities (Rs1.7 billion), and upgrade of 200 Basic Health Units for round-the-clock maternal care (Rs2.96 billion). Additionally, a Rs346 million grant was sanctioned for modern equipment at Peshawar Institute of Cardiology. The cabinet also approved a non-ADP scheme worth Rs124 million to resume salaries for Provincial Earthquake Reconstruction and Rehabilitation Agency (PERRA) staff and directed the issuance of termination notices to contract employees from July 2025. Other approvals included financial assistance of Rs10 million for a cancer patient, appointment of Rubab Mehdi as K-P's Ombudsperson, and inclusion of Makniyal in Urban Area Development Authority Haripur. Further allocations included Rs1.5 billion for transformer repair, Rs1.041 billion for settling PESCO dues, and Rs400 million for irrigation sector maintenance. The cabinet lifted a vehicle procurement ban to allow two official vehicles for District and Sessions Judges in Mohmand and Khyber and approved outsourcing of tobacco cess collection (excluding factories). The cabinet also sanctioned the hiring of legal counsel for an anti-narcotics case in the Supreme Court and reviewed land utilization and timber trade mechanisms in Upper Kohistan and Chitral.
Business Recorder
2 days ago
- Business
- Business Recorder
Pakistan salaried class rejects govt's claim of giving relief in income tax
Representatives of the Salaried Class Alliance of Pakistan (SCAP) said on Thursday the government had done a 'number juggling' and given almost no relief in income tax to the salaried individuals in the budget proposals for the fiscal year 2025-26. In a press conference at the Karachi Press Club on Thursday, they pointed out that the tax authorities have targeted to collect Rs540 billion in income tax from employees working in regulated sectors in FY26, compared to Rs550 billion to be received in the outgoing FY25. 'The Rs10 billion relief to the entire working class nationwide is a so-called relief. This is number juggling,' said Bilal Farooq Rizvi, a member of the SCAP. 'We reject the government's claim of relief to the salaried class people (in the budget 2025-26),' he said. According to the Federal Board of Revenue (FBR) reports, the income tax collection from salaried class people would be Rs550 billion in FY25, higher by Rs112 billion compared to FBR's set target for the outgoing year. Numbers speak: Sindh agriculturalists spend more on vehicle registration, pay less in income tax According to the budget proposals for FY26, the tax rate for those earning Rs600,001 to Rs1.2 million has been slashed to 2.5% from 5%. Individuals earning between Rs1.2 million and Rs2.2 million will pay 11%, down from 15%, along with a drop in the fixed tax component from Rs30,000 to Rs6,000. For the Rs2.2 million to Rs3.2 million bracket, the rate has been reduced to 23% from 25%, and the fixed tax lowered from Rs180,000 to Rs116,000. For those earning above Rs3.2 million annually, the rates remain unchanged. The 30% tax on incomes up to Rs4.1 million and 35% for those earning more continues. However, fixed taxes for the two slabs have been reduced to Rs346,000 and Rs616,000 from Rs430,000 and Rs700,000 respectively. A slight relief has also been provided in the form of a 1 percentage point cut in the surcharge, down to 9% from 10% for individuals earning more than Rs10 million a year. Adeel Khan, another SCAP member, claimed 'the income tax collection from salaried people has jumped 7 to 8-time in the past 3 to 4-year, increasing to Rs550 billion in FY25 compared to Rs70-80 billion a few years ago.' Budget 2025-26: Pakistan govt offers tax relief to salaried class, but representatives unhappy The government has targeted salaried class people to achieve the FBR tax collection target of Rs14.1 trillion in FY26, 'as it knows this is the soft target and they will not restore to violent protests and sit-ins and will neither block roads like political parties and shopkeepers do to get their demands accepted,' he added. Khan said the government provided a meager relief of a maximum of Rs7,000 a month in income tax to the people appearing in middle income groups, reducing their monthly tax burden to merely 'Rs493,000 a month in FY26 from Rs500,000 a month paid in FY25'. The employees working in the formal sectors were given a minimum relief of only Rs20,000 a month in income tax to the people falling in the middle income brackets. 'The provided so-called relief is no relief. This would make almost no difference in our lives,' he said. SCAP member Iesha Fazal said, 'The provided relief is insignificant. This is tantamount to playing with the salaried class people. This is a joke. We reject it'. They appealed to the authorities concerned to reduce the income tax rates by at least 2.5% for all the taxable slabs, including the individuals falling in the upper income brackets. The government can still make changes in its proposals, as the Parliament is yet to give its official nod to the proposed budget and Finance Bill 2025. 'Pakistan salaried class paid 5 times more taxes than exporters, retailers in outgoing FY25' Another SCAP member Rizwan Hussain said they would file a case in a court of law to get the due relief in income tax if the government approved the proposed tax rates as it was in the Finance Bills 2025. He reiterated SCAP's old demand of removing the super tax completely, which the government reduced by 1% to 9% in the budget proposals for FY26. Hussain also demanded relief in taxes on investment in mutual funds and similar investment products FY26.
Express Tribune
7 days ago
- Business
- Express Tribune
Businessmen reject both budgets
Listen to article After condemning both the federal and Sindh budgets for 2025-26, business leaders called for mandatory amendments before their approval. They said neither budget fulfills serious commitments nor offers direct financial relief to micro and small businesses. They demanded substantial revisions to increase allocations for Karachi-centric development projects. The prosperity of Pakistan is tied to Karachi's, they said, warning that neglecting the city amounts to sabotaging the national economy. Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani blasted the federal and Sindh budgets for sidestepping Karachi's needs. Condemning the budgets as deeply disappointing and discriminatory towards Karachi, the country's economic hub, they expressed serious concern over the continued neglect and denial of essential development funds to Karachi and Sindh at large. Motiwala and Bilwani warned that chronic underinvestment and token budget allocations will worsen the city's infrastructure, civic conditions, and business confidence. They stressed that Karachi contributes 67% to the national exchequer, 90% to the provincial revenue, and 54% of the country's exports. Denying it fair development funds is not just a regional injustice but a national threat, they lamented. They called on both the federal and provincial governments to revise their priorities and ensure Karachi receives its due share. The time for symbolic allocations is over. Karachi's citizens and business community now demand concrete action, adequate funding, and political will. The two leaders also highlighted underfunding of the Sukkur-Hyderabad Motorway, a key project for Sindh and Karachi's connectivity. Though the project's cost exceeds Rs400 billion, the federal budget allocates only Rs15 billion — an amount they said reflects disregard for Sindh's development priorities. Karachi, Pakistan's commercial capital, would benefit directly from the project's completion, making the lack of funding more concerning. Similarily, they pointed to the stalled K-IV Water Supply Project. Despite being critical for a water-starved Karachi, the project remains in limbo. Though top officials, including the prime minister, have repeatedly promised support, the federal government has allocated only Rs3.2 billion of the Rs150 billion needed. This minimal allocation, they said, casts doubt on the government's seriousness about solving Karachi's water crisis. KCCI leaders expressed disappointment with the Sindh Budget 2025-26, saying the provincial government has also failed to address Karachi's needs. In its development outlay, the Sindh government allocated only Rs100 million for the K-IV project and Rs15 billion for the Sukkur-Hyderabad Motorway — amounts they called meaningless for project execution. Alarmingly, they said, this marks the third year without a single new mega project for Karachi. The only move was an Rs8 billion allocation to continue earlier projects, most of which are progressing at a snail's pace. They criticised the ongoing delay in the K-IV project. Despite growing water demand, the city's main lifeline remains stalled. Meanwhile, millions of gallons are wasted and discharged into the sea, while residents and industries suffer water shortages. Federal B Area Association of Trade & Industry (FBATI) President Shaikh Muhammad Tehseen also criticised the inadequate allocations by both governments for Karachi's industrial sector, infrastructure, and water projects. The budget reflects no serious effort to resolve chronic industrial issues such as crumbling infrastructure, water scarcity, and power instability — all of which undermine productivity and investor confidence, he said. He urged both governments to revisit their budgetary decisions and allocate sufficient resources to support the revival of the industrial sector. Former president of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Farooq Shaikhani, said the federal budget includes digital reforms and SME policy initiatives that sound good on paper but offer no direct financial relief for micro and small businesses. He said the new taxes on digital services and cash-on-delivery (COD) are premature and will burden small enterprises. While the Sindh budget includes funds for infrastructure and social sectors, it does not prioritise industrial zones or SME support. Both budgets, he said, focus on macroeconomic goals but ignore grassroots business sustainability. There is a clear gap between the government's documentation drive and the actual incentives offered to small traders and manufacturers. Shaikhani added that both budgets fail to create a conducive environment for small businesses. The federal budget introduces new taxes — on digital services, cash on delivery (COD), and higher withholding rates — without providing simplified schemes or financial support for small enterprises. The Sindh budget also neglects trade infrastructure and offers no tax relief or subsidies for SMEs. It fails to address the rising cost of energy and unaffordable raw materials, he said. Without practical incentives or consultations with affected sectors, both budgets appear more focused on revenue collection than on industrial or trade development, he added.
Business Recorder
7 days ago
- Business
- Business Recorder
Karachi: business community leaders say federal, Sindh budgets are ‘discriminatory'
KARACHI: Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani have strongly condemned the federal and Sindh budgets, describing them as deeply disappointing and discriminatory towards Karachi, the country's economic nerve centre. In a joint statement, they expressed serious concerns over the sheer neglect and repeated denial of essential development funds to Sindh including Karachi at large. They particularly highlighted the gross under-funding of the Sukkur-Hyderabad Motorway, a strategic infrastructure project vital for the economic connectivity of Sindh and Karachi. Despite the project's total cost exceeding Rs400 billion, the federal budget allocates a meagre Rs15 billion. This lacklustre allocation reflects a blatant disregard for Sindh's development priorities, especially considering that Karachi, Pakistan's commercial capital, would directly benefit from the completion of this motorway. Similarly, they drew attention to the K-IV Water Supply Project, which has been in limbo for years despite being a critical lifeline for water-starved Karachi. Despite multiple promises made at the highest level, including by the Prime Minister himself, the federal government has once again failed to demonstrate commitment to the project, allocating only Rs3.2 billion out of the total required Rs150 billion. This allocation, they noted, is not only insufficient but also raises doubts about the government's sincerity in addressing Karachi's water crisis. KCCI leaders further expressed their dismay after reviewing the Sindh budget 2025–26, noting that the provincial government, too, has failed to do justice to Karachi's needs. In the provincial development outlay, the Sindh Government has allocated a meagre Rs100 million for the K-IV project and a symbolic Rs15 billion for the Sukkur-Hyderabad Motorway. What's even more alarming is that this marks the third consecutive year in which not a single new mega development project has been announced for Karachi. The only gesture made was the allocation of Rs8 billion for the continuation of previously announced mega projects, most of which have been progressing at a snail's pace. They said that it was a matter of grave concern that the K-IV project, despite being a vital lifeline for Karachi, continues to face inexcusable delays, even as the megacity's demand for water grows exponentially with each passing day. Shockingly, millions of gallons of water are being wasted and discharged into the sea, while the people of Karachi and its industrial zones remain parched and desperate for a sustainable water supply. While appreciating the ongoing development of the new canal from Hub Dam, KCCI leaders noted that the project was originally scheduled for completion by August. With barely two months remaining, it is imperative that the government accelerates work on a war footing to ensure its timely execution. They further recalled that an additional supply of 10 MGD (Million Gallons per Day) was promised for the SITE Industrial Area, and the relevant PC-I had already been approved— a move widely welcomed by the business community. However, the promised supply remains unfulfilled, leaving industries in a continued state of uncertainty. They emphasized that such chronic underinvestment and budgetary tokenism towards Karachi will only deepen the city's infrastructure decay, worsen civic conditions, and erode business confidence. They stressed that the continuous denial of fair development funding for Karachi is not just a regional injustice but a national threat, as Karachi contributes the largest share of 67 percent revenue to the national exchequer, 90 percent to provincial kitty and 54 percent in terms of exports. They called on both the federal and provincial governments to urgently revise their priorities and ensure that Karachi receives its fair share of development funding. The time for symbolic allocations and broken promises has long passed. Concrete action, substantial funding, and political will are now required to address the growing frustration of the citizens and business community of Karachi. The prosperity of Pakistan is inextricably linked with the prosperity of Karachi, they said, adding that neglecting the megacity is akin to sabotaging the national economy. They demanded that before the approval of the federal and Sindh budgets, necessary amendments be made by significantly enhancing allocations for Karachi-centric development projects. Copyright Business Recorder, 2025
Express Tribune
14-06-2025
- Business
- Express Tribune
Sindh jacks up education budget by 18 per cent
The Sindh government has earmarked a total of Rs613.36 billion for the education sector in the upcoming fiscal year 2025-26, covering all levels from primary to higher education. The allocation marks an 18 per cent increase over the Rs519 billion allocated for the public education sector in the outgoing financial year of 2024-25. According to the budget figures, Rs524.32 billion has been allocated for non-development expenditures, while Rs89.04 billion has been set aside for development projects. An amount of Rs3.2 billion has been allocated to cover registration and examination fees for students of government schools from grades 9 to 12, as well as to reward those who perform exceptionally in board examinations. To ensure access to learning materials, Rs5 billion has been reserved for the provision of free textbooks in public schools across the province. In a major boost to digital education, funding for the Digital Learning Programme under the Sindh Education Foundation has been increased from Rs3 billion to Rs19 billion. Budget allocations across various education levels have also seen significant increases: allocation for primary education has been Increased from Rs136.2 billion in financial year 204-25 to Rs156.2 billion in 2025-26 and that for middle/elementary education has been increased from Rs36.2 billion to Rs42.7 billion. Similarly, the allocation for secondary education has been increased from Rs68.5 billion to Rs77.2 billion and for college education, the allocation has been increased from Rs34 billion to Rs39 billion, the budget document read. Furthermore, Rs40 billion has been allocated for 31 public sector universities under the higher education budget.
