ISLAMABAD: In recent years, the annual federal budget of Pakistan has become a stereotypical exercise of repackaging and introduction of new taxes to increase the revenue and rhetoric of austerity measures. It is quite difficult to find any bold or game-changing ideas to go beyond a narrow fiscal umbrella. Interestingly, as preparations for the federal…
Pakistan’s economic trajectory being shaped by complex interplay of external shocks, internal policy responses The government wants to accelerate economic growth to lower rising poverty and unemployment, but the IMF was of the view that Pakistan has not yet reached a stage where it can afford sustainably higher economic growth. PHOTO: Reuters KARACHI: Pakistan’s economic…
ISLAMABAD: “At the beginning of a dynasty, taxation yields large revenue from small assessments. At the end, taxation yields small revenue from large assessments” – Ibn Khaldun. Ibn Khaldun wrote these lines centuries ago, long before the arrival of missions of the International Monetary Fund (IMF), quarterly review meetings and “mini-budgets”. He nevertheless understood something…
ISLAMABAD: Pakistan’s tax debate often starts in the wrong place. We argue over rates, targets and quarterly shortfalls, but avoid the central problem: the design of the tax system itself. A tax regime that depends on a largely undocumented retail economy to collect revenue will keep producing distortion, leakage and resentment. That is exactly what…
Poor systems, damaging narratives are hurting Pakistan’s image among foreign investors ISLAMABAD: A few days ago, President Zardari concluded his visit to China. His engagement indicates that both countries are venturing into new areas of cooperation, from security and the economy to social development, to build a community with a shared future. The signing of…
IMF to review proposals as Pakistan seeks to reduce salaried, corporate rates and raise Rs50b ISLAMABAD: The government has shared its plan with the International Monetary Fund (IMF) to reduce salaried and corporate income tax rates, as it also considers recovering an additional Rs50 billion in the next fiscal year by charging sales tax on…
ISLAMABAD: The export of fish and fisheries products has surpassed $500 million during the current fiscal year, driven by reforms in the fisheries sector, with the government also announcing a major infrastructure plan to establish a 100?acre seafood processing and export zone at Korangi Fisheries Harbour Authority to promote the blue economy, Federal Minister for…
LAHORE: Close to Gujranwala, the rice fields are glowing soft green in the May heat. But the crop growing is not the traditional Basmati rice that farmers have planted for centuries. It is Chinese hybrid rice, born in a laboratory in Hunan, carried across the Karakoram Highway and cross-bred to thrive in Punjab’s sunshine. This…
With limited space for subsidies and a heavy reliance on indirect taxation, future budgetary measures could exert upward pressure on prices, particularly affecting urban consumers. Photo (file) LAHORE: The temporary relief given by Punjab, followed by the Sindh government, to keep markets open till late in the evening ahead of Eidul Azha has sparked hopes…
KARACHI: The KSE-100 index at the Pakistan Stock Exchange (PSX) retreated 3.2% week-on-week, closing at 165,596 points, as lingering uncertainty over the pace of US-Iran peace negotiations weighed on investor sentiment. Despite the cautious mood, several positive domestic developments provided underlying support. On a day-on-day basis, the PSX commenced the week with a range-bound session,…