Latest

IMF sees no major flood impact on Pakistan’s economy

Islamabad: The International Monetary Fund (IMF) does not foresee any major setback to Pakistan’s economic growth or revenue collection this fiscal year due to the recent floods. Except for Punjab, provinces have also not reported significant economic losses, minimizing the chances of a downward revision in targets.

According to government sources, Pakistani authorities have assessed flood-related losses in three rivers, but the evaluation of destroyed or damaged infrastructure in Punjab is still ongoing.

Government sources said that an IMF delegation shared its views about the economic impacts of the floods during a kick-off meeting with Finance Minister Muhammad Aurangzeb. The governments of Balochistan, Sindh and Khyber-Pakhtunkhwa (K-P) shared their initial assessments of the flood losses with the IMF team during separate meetings.

The sources said that during the kick-off meeting, the IMF team observed that based on initial input there were no significant economic losses. However, the IMF said that it would wait for the damage assessment report, the sources added.

The global lender also saw no impact of the floods on the tax revenues. It underscored that the Federal Board of Revenue (FBR) should share the visible outcome of the transformation plan. Prime Minister Shehbaz Sharif had approved the transformation plan last year to revitalise the tax machinery and also gave over Rs55 billion for various initiatives under the plan.

The IMF’s observations about the impact of the floods came on the heel of the prime minister’s request to the IMF managing director to factor in the impacts of the floods during the review meetings. The IMF was apprised that the government could meet the flood-related spending from the contingency pool and it might not need additional resources, said the sources.

Pakistan-IMF review talks began on September 25, which are scheduled to continue until October 8. The successful culmination of these talks would pave the way for the release of two tranches, totalling over $1.2 billion under two different loan programmes.

Also, the sources said, Pakistan’s internal assessment was that there would not be any major impact of the floods on the economic growth. The government has set a 4.2% growth target and it still expects to achieve from 3.7% to 4%, the sources added.

The total economic losses are estimated by the Planning Commission at around Rs360 billion or 0.3% of the size of the economy. The commission’s assessment was that the GDP growth may still remain around 4%.

One of the reasons for not estimating major losses to the crops was that the sowing of rice and sugarcane took place more than the area initially estimated. This would offset the impact of loss of the crops, they added.

The current account deficit would also not increase beyond the estimated figure, as no additional need for imports is projected because of floods, the sources added. The Pakistani authorities also do not see any major increase in imports. However, the IMF has not yet shared its projection of the economic growth, imports and current account deficit.

The sources said that the IMF delegation raised the issue of the delay in publication of the Governance and Corruption Diagnosis Assessment report. The authorities assured the global lender that the government would release the report within this week.

The report points out numerous shortcomings in Pakistan’s judicial, administrative and corporate structure, which contributed to poor governance in every important sphere of life. The IMF has also given over a dozen recommendations to ensure rule of law and the integrity of the judiciary.

During its meetings with three provinces, the IMF pointed out low spending on health and education in the last fiscal year. The K-P government said that low spending on health was because of the fact that many posts of doctors could not be filled due to the slow hiring process.

The IMF inquired whether the provinces would be able to meet the additional spending on the flood-related rehabilitation. The sources said that the provincial governments did not indicate the need for any additional resources due to limited impact.

However, the position of the Punjab government will be important in this regard, which plans to provide a comprehensive rehabilitation package to the affected people. The province is the worst-affected by the floods and its meeting with the IMF will take place this week.

The governments of K-P and Sindh shared their initial assessments. According to the authorities, Sindh estimated that the economic losses may remain in the range of Rs40 billion to Rs50 billion. The k-p government told the IMF that losses might be in the range of Rs30 billion.

The FBR remains the weakest link in the chain. The tax authorities are struggling to achieve this quarter’s Rs3.083 trillion target. They needed over Rs500 billion on September 30 (today) – the end of the first quarter of the current fiscal year – to achieve the target.

The filing of the income tax return also stands around 3.2 million as against the total 7.7 million returns filed for the tax year 2024. The FBR has also extended the date for import duty and tax-free sugar by two months to November. Earlier, it had notified that the sugar can be imported tax-free till the September 30.

The FBR also granted a further two-month extension to traders in real-time electronic transmission of sales tax receipts to the computers of the FBR. It was the second extension, which is tantamount to accepting the impracticality of the earlier deadlines.

Post Views: 3

Latest

PM vows full support to strengthen LEAs’ capacity

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif, Tuesday, said that all available resources would be utilized to enhance the capacity of law enforcement agencies (LEAs) in order to ensure the protection of citizens’ lives and property.

Chairing an important meeting to review the country’s law and order situation and matters related to the Ministry of Interior, he also directed strict implementation of the government’s zero-tolerance policy against corruption within law enforcement institutions.

The prime minister asked that recruitments in all departments under the interior ministry, including the Federal Investigation Agency (FIA), must be conducted strictly on merit.

The meeting was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, Ministers Syed Mohsin Naqvi, Ahsan Iqbal, Muhammad Aurangzeb, Minister of State Talal Chaudhry, and heads of various law enforcement agencies, PM Office Media Wing said in a press release.

Emphasizing the need to tackle modern security challenges, the prime minister said security personnel should be equipped with advanced training and modern skills.

He further directed authorities to ensure the provision of the best equipment, modern technology and professional resources to law enforcement agencies.

During the briefing, officials informed the meeting that the under-construction jail in Islamabad would become operational in September this year.

Interior Minister Syed Mohsin Naqvi briefed the meeting on the performance and future development plans of the FIA, Islamabad Police, National Cyber Crime Investigation Agency (NCCIA), Federal Constabulary, Capital Development Authority (CDA), and other institutions working under the Interior Ministry.

Post Views: 0

Latest

HEC launches fully online, paperless degree attestation system

ISLAMABAD: The Higher Education Commission (HEC) Pakistan has shifted to a completely online and paperless Degree Attestation System, replacing the existing degree verification process.

Under the new system, applicants can apply round the clock for online attestation through www.eservices.hec.gov.pk. HEC will issue e-Attestation Certificate which can be downloaded by applicant from dashboard and verified at www.hec.gov.pk/site/verification along with the document(s) attested thereunder.

HEC will attest the original degrees and no photocopy of any educational document will be processed for attestation in new system.

The new system is secure, efficient, and user friendly wherein applicants are no longer required to physically visit HEC or to send original documents.

The applications of those applicants who have already applied and paid fee of attestation will be processed as per previous method of attestation up to 30th June.

All such applicants are informed to get complete the attestation process by the said date. The applicants who have not paid attestation fee in the previous attestation system are advised to apply through the new system.

The attestations made by HEC before the launch of e-Attestation Certificate will remain valid and can also be verified from www.hec.gov.pk/site/verification.

Post Views: 9

Latest

Govt making all out efforts to address security, economic challenges: Senate told

ISLAMABAD: Minister for Parliamentary Affairs, Dr Tariq Fazal Chaudhry on Monday informed the Senate that the government was making all out efforts to address security and economic challenges confronted to the country.

Winding up debate on a motion moved by Senator Mohsin Aziz about fall out of the recent war and the government plans to reduce expenditure and other measures to steer the economy out of the crises, he said that Pakistan’s successful diplomacy, anti-terror operations and economic management amid regional tensions had enhanced the country’s global standing.

He said Pakistan’s role in promoting peace during the ongoing Iran-US tensions was being acknowledged internationally and both countries had expressed confidence in Pakistan’s mediation efforts.

The Minister said the ongoing US-Iran tension had affected global economies, particularly countries dependent on oil routes linked to the Strait of Hormuz, including Pakistan.

He said Prime Minister, Shehbaz Sharif, was personally monitoring the situation and remained concerned over increasing petroleum prices and their impact on the common man. However, he said that the government was trying to minimize the burden on citizens while also fulfilling commitments under the International Monetary Fund programme.

The minister said the federal cabinet had voluntarily surrendered salaries, fuel allowances and luxury vehicles as part of austerity measures. Ministers and parliamentarians travelling abroad on official visits were bearing their expenses personally, he added.

He also paid tribute to the armed forces and law enforcement agencies for their sacrifices, particularly mentioning ‘Marka-e-Haq and “Operation Bunyan-un-Marsoos.

Responding to concerns raised about Pakistan Tehreek-e-Insaaf founder Imran Khan and Bushra Bibi, he said all medical facilities were being provided in accordance with jail rules and immediate treatment was ensured whenever any medical emergency occurred.

Regarding terrorism, Dr. Tariq Fazal Chaudhry said intelligence-based operations along the Pakistan-Afghanistan border had reduced terrorism incidents by nearly 60 to 70 percent. Terrorists were now targeting soft civilian locations after failing to attack hard targets, he added.

Paying tribute to police and law enforcement personnel in Khyber Pakhtunkhwa and Balochistan, he said the entire nation stood with the families of martyrs and security forces fighting terrorism.

Referring to Pakistani medical students studying abroad, he said nearly 1,200 students were facing issues related to recognition and registration with the Pakistan Medical and Dental Council (PMDC).

He assured the House that the government would take up the matter with the PMDC.

He also urged the opposition to present constructive and fact-based budget proposals, assuring that positive recommendations would be incorporated into the upcoming federal budget.

Earlier, the minister offered Fateha for security personnel and civilians martyred in recent terrorist incidents.

Later, the Senate session adjourned to meet again on Tuesday at 4 pm.

Post Views: 5