ISLAMABAD, MAY 05 (DNA): An increase of 37% in Federal Excise Duty (FED) on tobacco products has been proposed by the Social Policy Development Centre (SPDC) to reinforce the gains already achieved and to advance further in enhancing public health outcomes and revenue collection.

“Pakistan can save as many as 265,000 lives, generate an additional revenue of Rs 37.7 billion and push 757,000 people to quit smoking through increasing the FED by 37 percent,” said the SPDC policy paper name “Recovering Healthcare Costs and Saving Lives” that aligns recommendation of World Health Organization (WHO) and Campaign for Tobbaco Free Kids (CTFK).

The SPDC proposal comes when the government prepares to outline its budgetary agenda, in a bid prioritize public health and economic prosperity through targeted tobacco tax reforms.

Pakistan has two-tiered system of FED on cigarettes. The country made significant strides and increased the FED on cigarettes in 2022-23 with substantial increase in FED. The current FED share in retail prices is 48 percent and 68 percent respectively for low and high tiers.

The SPDC has warned of negative effect on both the revenue and public health efforts if the rates (FED) were not increased and trend was not maintained. Therefore, it advocated to further adjust the FED in line with international standards, to take the tax share of retail prices towards 70 percent.

The proposal seeks to take the FED share to 54 percent or Rs 154 and 72.1 percent or Rs 452 for economy and premium brands, respectively.

The proposal was backed by the gains of previous tax adjustments, which have demonstrated tangible reductions in smoking rates and significant financial gains for the government.

According to details, revenue collection from July 2023 to January 2024 has reached Rs 122 billion and figure expected to surpass Rs 200 billion by year-end.

Beyond revenue generation, it helped in reducing smoking rates and potentially recouping 17.8% of total healthcare costs associated with smoking-related illnesses in Pakistan.

In response to the argument that the increase in FED would result in increase of illicit trade, the SPDC said that research studies have proved that this argument lacks empirical support, with evidence showing that tobacco companies manipulate production figures to influence tax policies and evade taxes.

In addition, it said that the track and trace system is expected to reduce counterfeiting, curb illicit trade and keep check on frontloading.

Pakistan was among the country where smoking has high prevalence.  The data shows that a staggering 31.6 million adults—equivalent to nearly 20% of the adult population—use tobacco products in Pakistan.

Alarmingly, tobacco consumption is responsible for approximately 160,000 deaths annually, accounting for a considerable 1.4% of the country’s GDP in healthcare expenses each year.

Insiders say PML-N and PPP were close to finalising a power-sharing deal

Mehtab Pirzada

ISLAMABAD: Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto-Zardari is likely to return as the country’s foreign minister as the ruling Pakistan Muslim League Nawaz (PML-N) and PPP were close to finalising a power-sharing deal, according to people familiar with the development.

If the insiders are to be believed, Bilawal would join the cabinet of Prime Minister Shehbaz Sharif as foreign minister. They said that an understanding between the party bigwigs was reached recently during their talks.

They claimed that Bilawal, who was initially reluctant to join the cabinet, agreed to become the foreign minister once again. The two sides are now working on the details and the timing of PPP formally joining the cabinet.

Sources said PM Shehbaz wanted the PPP to join the cabinet before the next budget to be presented in the first week of June. It is, however, not clear whether the PPP joins the cabinet before or after the budget. One thing is certain: the PPP will be part of the cabinet in June, according to sources.

The incumbent foreign minister, Ishaq Dar, was appointed as deputy prime minister to allow room for Bilawal to become the top diplomat.

Sources said that Dar’s office was being set up at the Prime Minister’s Office, and he would operate from there once he vacates the Foreign Office for Bilawal.

Dar, according to sources, was never comfortable as foreign minister as he always wanted to look after his favourite Finance Ministry. But Shehbaz and others in the PML-N wanted to keep him at bay.

Nevertheless, he managed to convince the prime minister to appoint him as his deputy. As deputy PM, he could potentially oversee the government’s economic policies once again.

Meanwhile, there has been a feeling within the PPP that Bilawal, when he served as foreign minister during the PDM government for 16 months, greatly enhanced his local and international profile.

They believe that Bilawal’s return to the Foreign Office would only benefit him and his party. The final decision regarding PPP joining the cabinet will be taken by its Central Executive Committee (CEC).

After the February 8 elections, the PPP decided to back PML-N to form the government but refused to join the cabinet. There was, however, an understanding between the two parties that PPP would be part of the government at a later stage.

Since the PML-N fulfilled its commitment by letting the PPP appoint its men as governors in three provinces besides clinching two other constitutional positions, the presidency and the chairmanship of Senate, the PPP would return the favour by joining the cabinet.

Sources in the Foreign Office said that Bilawal is a good choice as he proved himself to be an able foreign minister during his 16-month stint before the elections.

As of 2022, he is serving as Turkey’s Ambassador to Pakistan

DNA

ANKARA: The Turkish Ministry of Foreign Affairs announced that Ambassador Mehmet Paçacı was appointed as the Special Representative of the OIC Secretary General on Islamophobia at the 15th Summit of the Organization of Islamic Cooperation (OIC) held in Banjul on 4-5 May. The statement stated that it has full faith that Paçacı will carry out this task successfully and said, “On this occasion, we remind that the international community should take a common stance and act determinedly in the fight against anti-Islamism.”

Mehmet Paçacı was born in Bolu in 1959. He is a Turkish ambassador, academician and theologian.

After graduating from Ankara Imam Hatip High School in 1977, he graduated from Ankara University Faculty of Theology in 1982. He continued his academic career and completed his doctorate in 1989. He started working as a faculty member at Ankara University Faculty of Theology and received the title of Assistant Professor in 1992, Associate Professor in 1994, and Professor in 2000. He also served as a member of the board of directors of the Faculty of Theology of the same university between 1996 and 1999.

Between 2008 and 2011, he worked as the Religious and Social Services Counselor of the Presidency of Religious Affairs at the Washington Embassy. Then, he worked as the General Director of Foreign Relations at the Presidency of Religious Affairs between 2011 and 2014. He was appointed as Turkey’s Ambassador to the Vatican in 2014 and served in this position until the end of 2018. He was recalled to Ankara in April 2015 for a speech by Pope Francis on the Armenian Genocide, but returned to Rome in February 2016.

As of 2022, he is serving as Turkey’s Ambassador to Pakistan. He speaks English and Arabic languages. Mehmet Paçacı, who is married and the father of three children, is also the son-in-law of Temel Karamollaoğlu, the chairman of the Felicity Party.

ISLAMABAD: A trade delegation comprising various Saudi investors touched down in Islamabad on Sunday, with an aim to explore investment opportunities in various sectors in Pakistan.

The 50-member delegation, comprising representatives of about 30 companies, was received by Federal Minister for Petroleum Musadik Malik and Minister for Commerce Jam Kamal in the federal capital.

The delegation is visiting Pakistan on special directives of Saudi Crown Prince Mohammed Bin Salman.

It will also hold discussions regarding various sectors for the promotion of Pak-Saudi trade and strengthening business ties with local entrepreneurs.

Malik had said that 76 Pakistani business companies had been shortlisted in this regard, adding that cooperation between Islamabad and Riyadh will be increased at the government and private levels.

He said that talks will place on the federal level regarding petroleum, electricity and oil refining sectors, adding that about eight to 10 projects worth $8-10 billion will also come under discussion.

“Projects from $500 million to $1 billion will also be included in the discussions,” the minister had said.

He added that the discussions would also include modernisation of the refinery.

The delegation’s arrival in Pakistan is followed by Prime Minister Shehbaz Sharif’s recent visit to Saudi Arabia to attend the World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy.

During his visit, the premier also met Saudi Crown Prince Mohammed bin Salman to discuss cooperation in various sectors and also held a meeting with Saudi Minister of Commerce Dr Majid bin Abdullah Al-Qasabi.

During the visit, PM Shehbaz said that the economic ties between Islamabad and Riyadh had entered a new era as both countries were set to take concrete measures to boost the volume of bilateral trade.

Following the PM’s visit, a high-level delegation from Saudi Arabia led by Foreign Minister Prince Faisal bin Farhan bin Abdullah also visited Islamabad on a two-day visit aimed at lending positive impetus to enhanced bilateral cooperation and mutually rewarding economic partnership.

The delegation consisted of Saudi Minister of Water and Agriculture Engineer Abdul Rahman Abdul Mohsen Al-Fadley, Minister of Industry and Mineral Resources Bandar Ibrahim AlKhorayef, Deputy Minister of Investment Badr AlBadr, Head of Saudi Special Committee Mohammad Mazyed Al Towaijri, and senior officials from Ministry of Energy and Saudi Fund for General Investments.

PESHAWAR, MAY 05 (DNA) —The waves of inflation in the vegetable and fruit markets did not decrease as garlic hit an all-time high and is being sold at 750 per kilogram, while the price of ginger has also increased to 680 per kg.

During a visit to the vegetable and fruit markets, the rates of various food items are increasing, including onion (240, tomato (120, garlic (750 and ginger (680) being sold per kilogram. The prices of potatoes 140 white, potatoes 260 red, green pepper 120, bell pepper 70, eggplant 100, cauliflower 160, okra 260 rupees, and lemon 500 kilos are being sold.

The prices of fruits in the local market increased to double: apple 400, pomegranate 460, malta 320, blackberry 240, and pomegranate 330, while bananas cost 210 rupees per dozen sold. The price of live chicken has increased by Rs. 30 and now reaches Rs. 465 per kg. The price of a dozen eggs in the market is Rs 310. — DNA