ISLAMABAD, JUNE 17 / DNA / = Capital Development Authority has approved the landmark development focused budget estimates with total outlay of 49 billion rupees with surplus of 10 billion rupees for the Financial year 2020-2021. As per approved budget estimates, expected receipts are 49 billion rupees while expected expenditure is 39 billion rupees.

Out of 39 billion expenditure, 24.5 billions which is 63 percent will be spent on 89 development projects while 14.4 billion which is 37 percent will be spent on non development expenditure.

  The budget estimates for Financial Year 2020-2021 are in contrast to previous year  whereby total budget outlay was 20 billion with 36  percent development while 64 percent non development expenditure .Out of 49 billion rupees receipts, CDA will receive 5843.288 million rupees  from Federal from PSDP and 2601.44 rupees from Federal Government as maintenance grant.

CDA will generate 4310 million rupees from its own revenues including transfer fee, building fee , water charges, property tax etc. Similarly CDA is expected to generate 24585 .28 million rupees from auction proceeds including sale of new Blue Area sale, sectoral auctions, Extension of Park Enclave etc while amount of  1568.77 million rupees is expected to be transferred from MCI. Revised estimates for Financial Year 2019-2020 have also been approved.  The approval was granted by CDA Board in its meeting held at CDA  headquarters on Wednesday.CDA has managed 49 billion rupees budget despite the fact that in last four years CDA spent more than 22 billion rupees on MCI out of which around 16 billion rupees are still outstanding.

As per approved budget estimates for year 2020-2021, Capital Development authority will spend money on 89 development projects in Islamabad, the largest ever number for single year of development projects in the capital city. Out of these 89 development projects, 66 development projects are new while 23 are the ongoing development projects. The main development projects for next financial year include Construction of Korang Bridge, PWD Underpass, Water from Indus feasibility and land acquisition and Construction of 10^th Avenue from Public Sector Development Program (PSDP). From its own resources CDA will fund the projects which mainly include City Rehabilitation Projects which includes low cost housing for slums, cleaning of nullahs, public toilets, Smart traffic system, Housing for BS1-01 to BPS-16 employees, preservation of green areas , forests parks, land fill and public transport. Similarly Projects like construction of Interchange at 7^th Avenue and Park Enclave Extension will also be funded from CDA s own resources. Non Development expenditure will include 2601.44 million rupees as maintenance grant, 11877 million rupees as employees related and operational expenses and 2112.40 million rupees as MCI expenditure for three months.

ISLAMABAD, JUNE 17 (DNA) – The government can only improve its revenue side by creating an environment conducive for economic activity especially in the current unprecedented challenging external and internal circumstances. However, the budget presented by the federal government shows severe lack of any well-thought-out approach in policy- and budget-making in the turbulent times Pakistan is faced with.

These views emerged at a webinar on Federal Budget 2020-21 organized by Institute of Policy Studies (IPS).

Khalid Rahman, executive president, IPS said that the country is experiencing extraordinary circumstances and in this situation some innovative ideas were expected in the proposed budget. Addressing the economic challenges the country is experiencing needs out-of-the-box thinking to boost revenue generation, he stressed.

He deplored that the country’s actual problem is governance deficit, which is going from bad to worse. “Examples of this can be seen in the petrol shortages and healthcare issues during the pandemic,” he said.

Zaheeruddin Dar, former civil servant, and economic policy analyst expressed his concern that a 27 per cent increase in FBR revenue was unrealistically expected in the budget. The FBR tax collection target has been set at Rs4.963 trillion while the revised estimate of the closing year was Rs3.908 trillion. In the current situation even collecting Rs3.500 trillion would be a miracle, he remarked.

He said all FBR revenues are consumption related including sales tax and customs duty. Tax collection will not increase without generation of economic activity. “More revenue cannot be collected just by hiking tax rates,” he added.
Over the years Pakistan has not invested in those sectors that can generate additional revenue. He said education, health and economic infrastructure are the three sectors that provide enablement to those economic sectors that generate revenue.
He said the country’s consumption pattern is changing. The lower middle income and lower income groups are highly sensitive to inflation and their consumption patterns change immediately. The government must protect the lower middle income and lower income groups even at the cost of higher income groups.

Mirza Hamid Hasan, former federal secretary, water and power also seconded Dar stating that the government has projected a 27 per cent increase in tax revenue collection next year without any changes in the tax structure or collection system. “This looks like wishful thinking or maybe this target was fixed because it would be acceptable for the IMF keeping in view their conditions,” he said.

He said the government reduced the power sector subsidy from Rs200 billion to Rs124 billion, which will be harmful for the sector. The independent power producers may go into default and as a result electricity tariffs might increase.

The agriculture sector provided the silver lining in last year’s government performance as the only sector with a positive growth of 2.74%. However, now the sector is facing threat from locust attacks and the government needs to make more provisions. The other threat to the sector is from more than normal floods expected this year due to climate change. Due to these factors he was not too hopeful about the outlook for the agriculture sector.

Discussing the pressures in which the current budget has been made, Zafar-ul-Hassan Almas, Chief Macroeconomics, Planning Commission of Pakistan said the financial constraints can be seen in the federal budget and how the government aims to support growth with a large fiscal deficit is beyond comprehension.

He explained that the federal government’s revenue – after paying the due share of provinces – was a meagre 3.7 billion approximately. The government will actually start its business with a deficit of Rs1 trillion!

In addition, he said, the provinces, despite having autonomous powers of managing most of their issues post 18th amendment and getting major share of revenues from federal collections, still look towards the federal government in dealing with the calamities like pandemic.

He said that the exports at present were showing a very grim situation and remittances too were declining due to the pandemic. The bankruptcy of various small entities due to the outbreak of pandemic also needed immediate intervention of the government. One of the positive developments however compared to the previous year was a significant increase in FDI (Foreign Direct Investment), whereas the declining trends in inflation and low policy rate may also provide some relief to the public, he stated.

Almas said more than 70 per cent of the growth handles including agriculture, industrial policy, services, etc. rest with the provinces. As such the provincial budgets will determine whether they support the country’s growth policy.

He was of the view that the situation after the pandemic ends will be important in the sense that how much hand-holding is done by the federal government. A lot of bankruptcies are expected while the SME sector is in dire straits. Meanwhile, the rising locust attacks are the main threat to growth of the agriculture sector and its future depends on how successfully the government handles the issue.

The provinces have traditionally been dependent on the federation despite the 18^th Amendment and due to Covid-19 and locust attacks they are again seeking help from the federal government.

Syed Muhammad Ali, senior research fellow at IPS was of the opinion that Pakistan should collaborate with other countries affected by locust swarms to make provisions in a more effective way during budget-making.

Ambassador (retd)Tajammul Altaf, senior IPS associate said the size of the “Covid budget” has been set at Rs7.137 trillion of which 41% would be spent on repayment of loans and 12.7% on defense, which is more than half of the total. Unless there is a concerted effort to reduce loans even the best budget-maker in the world would not be able to move things in the right direction.
Dr Atiquzzafar Khan, former DG International Institute of Islamic Economics, International Islamic University, Islamabad and Dr Anwar Shah, Assistant Professor Quaid-i-Azam University, Islamabad also presented their views on the occasion.

RAWALPINDI, JUNE 17 / DNA / = Corps Commander‘s Conference was held today at GHQ. Forum was briefed on national and regional security situation.

Forum expressed satisfaction on continued reduction in incidents of violence across the country, gradual positive effects of ongoing Afghan Peace Process along the Western Border  and resolved to keep supporting the normalization process through national institutions.Noting the Indian aggression, forum resolved to continue thwarting Indian designs and expose Indian targeting of innocent civilians in Kashmir and open support to terrorist outfits. Forum also discussed Army’s ongoing support to Government against COVID-19 , Locust threat, Polio campaign and ways to improve the same, within available resources.

It was underlined that COVID-19 can only be fought as a ‘whole of nation approach’ wherein every individual will have to play a role to ensure success through observation of basic procedures and discipline.

KARACHI: Easypaisa, Pakistan’s leading digital payments platform has marked the International Day of Family Remittances by celebrating with customers who use the service to send and receive remittance payments around the world. Easypaisa along-with its network of partners spread across the world is enabling people to send and receive remittances in a digitally secure and convenient manner.

The 16^th of June has been declared as the International Day of Family Remittances by the International Fund for Agricultural Development (IFAD) of the United Nations Organization (UNO) and is celebrated with fervour in Pakistan also under the leadership of Pakistan Remittance Initiative (PRI), whose mission is to facilitate remittances through the legal channels in Pakistan. Making remittances has always been a challenge for Pakistanis and Easypaisa is addressing this by forging collaborations with some of the leading international payment players to facilitate and simplify the process of sending money to loved ones in Pakistan from across the globe.

Sharing his thoughts on the occasion, M. Mudassar Aqil, President and CEO, Telenor Microfinance Bank / Easypaisa said, “The International Day of Family Remittances is a yearly reminder to recognize one of the most vital elements in the financial value chain, i.e. the people receiving and sending money from overseas to Pakistan. It has been our privilege to serve one of the largest customer base in the country and it gives us great honour to witness the trust that is placed with us every day. On this day, we renew our commitment to remain focused to providing our customers with most innovative yet user-friendly and secure payment services in the market”.

The COVID-19 pandemic has placed a lot of stress on the global economy and Pakistan is not any different. In these trying times, Easypaisa and its diverse services including remittances empower people to support their families and loved ones through a convenient, secure and reliable payments medium. 

This is with reference to the statement by Mr. Murtaza Wahab on 15^th June 2020 that “SINDH GETS RS.234 BILLION LESS IN NFC AWARD:  published in a section of press.

The official spokesperson of the Finance Ministry likes to clarify thatat the start of each financial year, FBR gives estimates of tax collection during the financial year. Based on those estimates, the share of each province under the 7^th NFC Award is conveyed for budget preparation. However the release of share of each province depends on actual collection of taxes reported by FBR and not on estimates as provided under the 7^th NFC Award.

 The share of Sindh in the divisible pool taxes and grant-in-aid was estimated to be Rs.781 billion for the current financial year 2019-2020 based on estimated FBR Receipts of Rs.5,555 billion. However, FBR collected Rs.3,670 billion up to May, 2020 due to various factors. Based on this actual collection, the share of Sindh Province together with grant-in-aid stood  out to be Rs.484 billion (up to May 2020) in accordance with the 7^th NFC Award (24.55% share of Sindh Province) and the same stands released. The Federal Government has not withheld any amount from due share of the province of Sindh.

                   It is further pointed out that the estimates of FBR receipts have been revised at Rs.3,908 billion till June, 2020. Based on this revised figure, the share of Sindh works out to be Rs.549 billion and the same has already been conveyed to the provincial government. The release will, however, depend on the actual collection by FBR.

DNA

KARACHI, Jun 17 : Prime Minister Imran Khan on Wednesday said serving the masses was the top most priority of the government of Pakistan Tehreek-e-Insaf (PTI).

In a meeting with a delegation of PTI’s Members of Sindh Assembly here, the Prime Minister urged upon the public representatives to play an active role in resolving problems of the masses within their constituencies.According to PM Office Media Wing, the PTI MPs included Umer Ammari, Dr Syed Imran Ali Shah, Arsalan Taj Hussain, Bilal Ahmed, Syed Firdous Shamim Naqvi, Haleem Adil Sheikh, Jamaluddin Siddiqi, Karim Bux Gabol, Muhammad Ali Aziz, Mir Ramzan, Shahzad Qureshi, Malik Shahzad Awan, Rabistan Khan, Syed Ahmed, Shah Nawaz JAdoo, Muhammad Aslam Abro, Shehryar Khan, Adeel Ahmed, Raja Azhar Khan, Dr Sanjay Gangwani, Tahira Dua Bhutto, Sidra Imran, Dr Seema Zia and Rabia Azfar.Sindh Governor Imran Ismael, Minister for Maritime Affairs Syed Ali Zaidi and PM’s Special Assistant Dr Sania Nishtar were present.

The members of Sindh Assembly lauded the government’s recent budget proposals, strategy to counter coronavirus and launch of Ehsaas Emergency Cash Programme.They also gave suggestions on strengthening ties between federation and provinces.

The Islamabad Policy Research Institute organized a special webinar on “Afghan Peace Process: The Way Forward” here in the capital today.Featured speakers included Ambassador (R) Riaz Mohammad Khan, Ambassador (R) Ashraf Jehangir Qazi and Ambassador (R) Rustam Shah Mohmand.

It was unanimously agreed that the US-Taliban peace deal in February this year, and the more recent President Ashraf Ghani giving Abdullah Abdullah the leading role in seeking peace with the Taliban and the ability to name half the cabinet, are historic achievements.

Both offer hope for the much more challenging stage of the peace process in Afghanistan, the intra-Afghan dialogue between the Kabul government, various political factions and the Taliban.

It was discussed that while the US may have arm-twisted both to sign the power-sharing deal in order to make the environment conducive for dialogue with the Taliban, it also addresses President Ghani’s reservation of being pushed out of the loop on the Doha Agreement, putting him back into the heart of affairs, along with Abdullah Abdullah, who is not only the government’s chief negotiator but also getting a hefty share in the cabinet. All the speakers agreed that the Taliban’s capacity to control violence is questionable and so before the withdrawal, the US along with other regional leaders need to define the minimum standard of what will constitute the new governance framework of the country.

It was also opined that complete withdrawal of the US is not on the table. The US will likely have presence in Afghanistan to keep a close eye on China, and perhaps even support Indian interests in the region, which might keep them in confrontation with the Taliban. The speakers also discussed that it will be interesting to see how various powers engage with Afghanistan after the withdrawal of troops based on local interests or in the context of geopolitical interests towards the United States which has the ability to offer long-term commitments.

Ambassador Riaz Muhammad Khandiscussed how this power sharing arrangement between two election opponents lucidly defines the role of both: President Ghani, who enjoys being a technocrat, will have undivided control over the office of the executive without having to deal with anotherdefacto “Prime Minister” and his powerplay, whereas Abdullah Abdullah, having a reputation for building consensus amongst different political groups, is saddled with leading the High Council for National Reconciliation (HCNR). Responsibilities are split based on the strengths of both politicians which is a good omen. He also pointed out that while the Taliban have outlasted American military might,their test beginson the negotiating table. They have to prove themselves as more than a group of militant fundamentalists as they are still under international scrutiny. Moreover, the group needs to manifest that it has “modernized” to the needs of the contemporary Afghanistan.In this regard, small but symbolic steps have to be taken to ensure women and ethnicgroups don’t have serious qualms about their rule given their blood soaked history.The potential peace spoilers like the Afghan Taliban’s future relationship with ANSDF and future shape of the government needs to be kept in view, while pursuing the peace process. The role of outside players like the US, especially its military establishment’s proclivity to have a military imprint might also act as spoilers. Whatever role Pakistan plays in the peace process, it needs to be done circumspectly.

According to Ambassador Ashraf Jehangir Qazi,the existential challenge of global warming, Covid-19 and its succeeding pandemics are likely to occur with shorter and shorter intervals and are likely to fatally distract and disable Afghanistan. He called for a comprehensive ‘green new deal’ which would transform national policies, including foreign policies. This is because of the nature of the overt and covert corporate/military dominance over governance countries like Afghanistan; and the corporate capitalist economic model that prioritises the interests of the rich over poor. Ambassador Qazi held that similar to Pakistan, in Kabul there is ruthless and unending high-level corruption on daily display – a classic instance of elite governance through class warfare. He regretted that in such circumstances, merely honest and well-intentioned leaders may at best bring about piecemeal improvements, but never the systemic structural change required for survival. He outlined that  the best case scenario is of a coalition political set-up which integrates the Taliban with the current dispensation in power-sharing, declares Daesh as the single biggest threat to Afghanistan, power is decentralized, with foreign troops replaced by an international monitoring mission. Ambassador Qazi warned that the success of such a peace settlement depends on the independence of the Afghan economy, China could very well include Afghanistan as a major building block in China’s Belt and Road Initiative, in other words global powers as well as regional ones need to ramp up investment in the land-landed nation.

Ambassador (R) Rustam Shah Mohmand was of the view that the role of regional powers has been instrumental in the once considered elusive peace process in Afghanistan. The joint statement of representatives of Pakistan, China, Iran and Russia on 18 May 2020, shows the intent for an Afghan-led peace and reconciliation process. All regional players will be beneficiaries of peace deal. However, he warned that given the huge financial investments made by India in various sectors, it will continue to meddle in Afghan affairs, especially to destabilize Pakistan. He opined that regional players are on the same page by being non-partisan towards all stakeholders of the intra-Afghan dialogue and want to ensure the Afghan soil does not become a hotbed of proxy warfare. Albeit, India’s role should not be taken lightly by Pakistan, because this fascist bellicose regime will resort to extreme measures to jeopardize peace in the region since it has been using Afghan land to stir up insurgency for years in adjoining tribal areas and Balochistan. He also cautioned about some past policies that have resulted in reduced trade between Pakistan and Afghanistan souring relations between the relations between the two countries.

In his welcome and concluding remarks, Acting President IPRI, Brig (R) Raashid Wali Janjua, highlighted thatthere is consensus on the withdrawal of troops from Afghanistan which is contingent on the outcome of the intra-Afghan dialogue. All regional stakeholders need to be on board for withdrawal in an orderly fashion, one of the most important challenges is chalking out a power-sharing deal with the Taliban and the acceptability of that deal with all factions. The Afghan peace process needs to be inclusive and participatory with full support of the regional countries.

Mengal says he will remain a part of the NA and will continue to attend seassions and raise issues.

KARACHI, JUNE 17 –  Balochistan National-Mengal Party (BNP-M) chief Akhtar Mengal has announced that he and his party are withdrawing support for Pakistan Tehreek-i-Insaf, media reported on Wednesday.

As per details, Mengal announced the decision during the National Assembly session. He said they had waited for two years but no one bothered to pay attention to their demands. “We are not a colony. We should be considered as citizens,” he added.

Mengal said that he will remain a part of the NA and will continue to attend sessions and raise issues. BNP-M has four seats in National Assembly.

Earlier, Sardar Akhtar Mengal threatened that his party could withdraw its support for the federal government led by PTI if the ruling party would continue igno­ring it while taking decisions abo­ut Balochistan, including matters related to Gwadar and Reko Diq.

He said BNP-M legislators voted for the PTI candidates in the elections for prime minister and president after signing a six-point accord with it.

Mengal said the BNP-M would not betray the people of Balochistan who had reposed their confidence in it in the July election, adding they had supported this party’s candidates in the election on the promise that they would protect the province’s natural resources and its coast. He said no one would be allowed to sell Balochistan’s natural resources.

KARACHI, JUNE 17 / DNA / = President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, FPCCI’s Businessmen Panel Sr. Vice Chairman, and former provincial minister Mian Zahid Hussain on Wednesday said for the very first time in the history of Pakistan, all mafia gangs have targeted masses with a renewed force.

Business mafia groups are attacking masses facing coronavirus, lockdown and economic meltdown are being attacked from every side while there is no system to effectively check the plunder, he said.

Mian Zahid Hussain said that consumer protection activities are restricted to media and statements while the profiteers are looting the general public in every possible way.

Talking to the businessmen, the veteran business leader said that the law of the jungle is prevailing while there is no protection for those who are engaged in the legal business.

The former Minister noted that those supervising the feeble laws lack a system to know the cost of production and this weakness is frequently exploited.

He noted that developed nations lay special emphasis on the protection of rights of masses and an example is made of those who dare to violate the rights of people but the situation in Pakistan is otherwise.

He noted that cost audit is mandatory for all manufacturers in India while it is also required for profitable services like health, education, and real-estate which should also be introduced here to provide relief to masses.

There is provision for cost audit in the local law but it has been left to regulators which has opened floodgates for corruption, choked economy, made officials rich and masses poor and increased dependence on loans.

He said that the economy should run on the basis of economic rules and not like the law of the jungle.

Local markets are flooded with fake, substandard, costly and smuggled goods, he said, adding that targeting owners of filling stations in a province is unjustified.