Imran Khan prioritizes national fame over international fame

Imran Khan resigns as University of Bradford chancellor

Imran Khan was appointed chancellor of the University of Bradford in 2005

Former cricketer Imran Khan has resigned as chancellor of the University of Bradford, citing his "increasing political commitments".

He will step down on 30 November after nine years in the role.

The university's vice-chancellor Brian Cantor said Mr Khan had been "a wonderful role model for our students".

Mr Khan, who is a leader of the opposition in Pakistan, was criticised by some students earlier this year for not attending graduation ceremonies.

Prof Cantor said: "Imran has played a critical and important role for us as chancellor of the university.

"He has awarded degrees to many students here at Bradford, and has also set up one of the fastest growing colleges in Pakistan, Namal College, where students also receive University of Bradford degrees."

Mr Khan's party Tehreek-e-Insaf (PTI) leads the government in Pakistan's Khyber Pakhtunkhwa province.
'Instrumental figurehead'
"It has been my honour to serve as chancellor of the University of Bradford. This has been a rewarding and informative experience and one that I will cherish," Mr Khan said.

"My increasing political commitments as well as my fundraising work with SKMCT and Namal College has made it increasingly challenging for me to give the kind of time commitments required as Chancellor of the University of Bradford."

In February, student newspaper The Bradford Student said it was "time for senior management... and Imran Khan himself to seriously consider whether he is capable of continuing the role... with the commitment that such a prestigious role, like chancellor, entails".

At the time, the university urged students to be more "sympathetic" to his responsibilities in Pakistan.

Student union officer Sam Butterworth said: "We regret to hear Imran Khan has stepped down.

"He has been an instrumental figurehead for the university and the city, and his work in politics and humanitarian work is a big inspiration."

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Hurdles in LNG removed

Hurdles in LNG import removed

 

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LAHORE: The Ministry of Petroleum and Natural Resources will be able to import the first consignment of 400MMCF of liquefied natural gas (LNG) by the end of the first quarter of the next year as it has resolved issues with the defence ministry, the Port Qasim Authority and other stakeholders, Dawn has learnt.
On a directive of Prime Minister Nawaz Sharif, the ministry had earlier planned to import the LNG and add it to the system (200MMCF each for the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company) by November this year but objections raised by different departments made it impossible.
Major objections included less availability or unavailability of deep sea space at Port Qasim for a huge ship carrying LNG, expected suspension of other ships’ arrival and stay at the port because of lengthy stay of the LNG-carrying ship and environment impact to be caused by re-gasifying highly explosive LNG at the port and adding it to the system.
A ministry official told Dawn that all issues had been resolved in a recent confidential meeting in Islamabad but there was no chance of importing LNG by November.
Under the contractual obligations, he said, the Elengy Terminal Pakistan Limited, a subsidiary of the Engro Corporation Limited, was bound to construct a special jetty/terminal at the port till March 31 next year. But the company has verbally assured the ministry of completing the terminal’s construction by November or December.
“But the ministry cannot pressurise the firm to construct the jetty before the deadline under contractual obligations. So we can safely say that LNG import will be possible by the end of the next year’s first quarter,” the official said.
Asked about a delay in issuance of licences to the SNGPL and SSGC by the Oil and Gas Regulatory Authority, which was mandatory for the import of LNG under the law, he said it was a formality. “Ogra has no objection to issuance of the licences. The authorities concerned will soon issue them as the process is underway,” he claimed.
The official said that “oil mafia” was behind the objections and other tactics used in delaying the LNG import. “The mafia is very strong in Pakistan and it doesn’t like the idea of LNG import because it will lead to a decline in oil imports,” he said.
He said LNG stood at the last column in the list of highly explosive items among oil and gas products. The first is liquefied petroleum gas followed by crude oil, diesel, petrol and then LNG.
“When LPG, crude oil, diesel and petrol are already being imported through Port Qasim, why objections are raised to LNG import only. It proves that the oil lobby was trying to stop the government from importing LNG to protect their vested interests,” the official said.
After having failed to stop LNG import, the lobby was now getting objections raised to the import price of LNG through various people. “But such efforts will also fail as we have invited tenders, calling every interested party at home and abroad, to participate in the process and submit their rates. We will accept the minimum price we are offered,” he said.

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Nargis Sethi, back in limelight.

Nargis Sethi takes ‘power’

 

Nargis Sethi. — File photo

ISLAMABAD: Nargis Sethi, once dubbed Pakistan’s most powerful woman, is back in the limelight. She will now be a key part of the government team that is responsible for reining in loadshedding, as the new secretary of the Ministry of Water and Power.
Prime Minister Nawaz Sharif decided to make the appointment over the weekend, inducting her into a top-level team that includes Punjab Chief Minister Shahbaz Sharif, Federal Minister Khawaja Asif, Minister of State Abid Sher Ali, a parliamentary secretary and a special adviser.
Before her latest assignment, Ms Sethi had been working as the secretary for the Economic Affairs Division, which now will be run by her husband Saleem Sethi, a grade 22 officer with the Secretariat Group. Mr Sethi previously represented Pakistan at the International Monetary Fund’s head offices in Washington.
Saifullah Chattha, the additional secretary in charge of the Ministry of Water and Power before Ms Sethi’s appointment, has been transferred to the Ministry of Human Resource Development.
Ms Sethi, who is a DMG officer, had closely worked with the government of the Pakistan People’s Party. She rose to fame when she was famously called the ‘Condoleezza Rice of Pakistan’ by former prime minister Syed Yousuf Raza Gilani.
Ms Sethi served Mr Gilani as principal secretary for nearly three years before going on to manage the all-important Cabinet Division. Under Raja Pervaiz Ashraf, she held the additional charge of the Ministry of Water and Power for a few months, where she is said to have done a good job.
Soon after the PML-N took power, Ms Sethi’s name was suggested to the Sharifs to fill an important post, but her longstanding association with the PPP is said to have worked to her disadvantage, a source privy to the development told Dawn.
But her satisfactory performance as the boss of the Pakistan Power Park Management Company earned Ms Sethi her new assignment, the official said.
The power company is used as a one-window facilitator to promote private sector participation in the power sector, which the government is counting on to generate over 6,000 megawatts through power plants at Gadani in Balochistan.
Many are asking why the government took so long to appoint Ms Sethi to this key post, especially since she is due to retire by the end of the current year.
However, an aide of the prime minister told Dawn that her superannuation was not an issue and that her services could be retained if she performed well, “The prime minister is personally involved in managing the power sector and he must take every aspect into account before selecting someone for this important assignment”.

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Parliament's New year started.

Little to celebrate as parliament begins its new year

 

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ISLAMABAD: There will be more to regret than celebrate as parliament begins its new year on Monday, awaiting some new mantra to do better.
President Mamnoon Hussain’s address to a joint sitting of the National Assembly and Senate to open the new parliamentary year also comes three days before Prime Minister Nawaz Sharif’s government is to complete its first year in office and seems embroiled in dire issues both inside and outside parliament.
But the performance of parliament in its primary task as the country’s top legislature has been most dismal in the past one year, without a single bill making through both houses to become an act.
Some element of hubris or lack of tact on the part of the managers of the ruling PML-N could be blamed for this state of affairs where none of a total of 10 bills — besides the Finance Bill — that the government pushed through the 342-seat National Assembly, where it has absolute majority, could yet get through the 104-seat opposition-controlled Senate.
That is in sharp contrast to the record of the previous PPP-led coalition government, which credited a policy of so-called “reconciliation” with political opponents engineered by then president Asif Ali Zardari for the adoption of most of more than 100 bills passed during its five-year term with consensus, including landmark amendments to the Constitution.
Prime Minister Sharif seemed to be taking a leaf out of Mr Zardari’s book when he recently agreed to accommodate more opposition amendments after a key, but controversial, government legislation against terrorism was bulldozed through the National Assembly but was blocked by the opposition in the Senate.
Both sides have since pondered over a series of opposition amendments aimed at mitigating some of the harsh provisions like authorising law-enforcement agencies to shoot terrorism suspects at sight, detain them for up to 90 days without trial and holding secret trials.
But an amended consensus draft of the Protection of Pakistan Bill — based on two presidential ordinances — is yet to come before the Senate.
The president’s constitutionally mandated address, due at 11am, will be watched for any change of course advised by the prime minister for law making.
Contrary to the parliamentary low, the president is likely to speak high about the government’s claims of beginning an economic turnaround, explain the present state of the government’s stalled peace talks with Taliban rebels and reiterate the country’s traditional foreign policy goals.
The main opposition PPP has said it will not raise any protest during the presidential address, but the Pakistan Tehreek-i-Insaf, which is agitating against alleged rigging in the May 11, 2013 general elections, is yet to take a decision.

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New Policies to be announced after Economic survey 2013-2014

Revenue, GDP growth targets missed

 

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ISLAMABAD: Finance Minister Ishaq Dar will launch on Monday the Pakistan Economic Survey 2013-14, which is expected to be a mixed bag of missed targets and improved performance in various sectors.
The three-time finance minister would, however, like to play up the ‘better than last year’s performance’ aspect and will be looking to build on hopes for ‘beginning economic revival’ going forward.
While announcing the budget last year, the government had set itself an economic growth target — as measured by gross domestic product (GDP) — of 4.4 per cent for FY2013-14 on the basis of 3.8pc growth in agriculture, 4.8pc improvement in the industrial sector and a 4.6pc rise in the services sector.
The GDP growth rate target was missed as it improved by 4.14pc instead of 4.4pc. It was, however, higher than the 3.7pc growth posted in FY 2012-13, the last year of the PPP’s tenure.

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Economic Survey 2013-14 — industrial sector one of few success stories

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Except for industry, which exceeded its target for this year, the two other major sectors — agriculture and services — not only missed their targets but effectively pulled down the economic growth rate.
The main contribution came from the manufacturing sector, which posted a growth rate of 5.5pc against a target of 4.5pc and an output of 3.7pc in FY2012-13. Large-scale manufacturing contributed significantly to this with a growth rate of 5.3pc, against a target of 4pc and the FY2012-13 figure of 2.8pc.
On the other hand, the agriculture sector grew by a mere 2.12pc — far below its target of 3.8pc and even lower than the growth rate of 2.9pc posted in FY2012-13. This was despite the fact that the sector showed mixed trends with crops growing by 3.7pc this year as against 1.2pc in FY2012-13.
The performance of other crops (potato, tomato, fruits and onion etc), as per the economic survey, was below par as it recorded negative growth of 3.5 per cent, a significant deceleration from the impressive 6.1 per cent recorded in FY2012-13.
The services sector grew by 4.29 per cent against a target of 4.5 per cent. The current performance was not even as good as the FY2012-13 figure of 4.86 per cent.
The government has also missed its target for the investment-to-GDP ratio. Against a target of 15.1 per cent, the ratio actually stood at 14 per cent this year, below even the 14.6 per cent ratio achieved in FY2012-13. Both domestic and foreign direct investment contributed to this downward movement, according to official papers.
National savings were expected to grow by 14 per cent during the current fiscal year but ended up at 12.9 per cent, lower than last year’s 13.5 per cent national savings-to-GDP ratio.
On the fiscal front, even though the government was able to contain the fiscal deficit below target, it failed to achieve its tax collection target by a large margin. Inflation stood at 8.5 per cent against a target of 8 per cent and 7.5 per cent from FY2012-13.

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Insights to International Peace Talks

Taliban leader Mullah Omar says prisoner swap “big victory”

 

This photo shows an unidentified detainee walking at the US Naval Station in Guantanamo Bay, Cuba, in this April 08, 2014, file photo.—AFP photo

KABUL: Taliban supreme leader Mullah Mohammad Omar on Sunday hailed the release of five senior insurgents in exchange for US soldier Bowe Bergdahl as a “big victory”.
“I extend my heartfelt congratulations to the entire Afghan Muslim nation, all the mujahideen and to the families and relatives of the prisoners for this big victory regarding the release of five Taliban leaders from Guantanamo prison,” he said in a rare statement.
“I thank the government of Qatar, especially its emir Sheikh Tamim bin Hamad (Al Thani), who made sincere efforts for release of these leaders and for their mediation and for hosting them,” he added.
Mullah Omar was Afghanistan's de facto head of state during their 1996-2001 rule over Afghanistan. He has continued to lead the group's insurgency since they were ousted from power.
His current whereabouts are unconfirmed.

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Also read: US soldier released in exchange for five Taliban prisoners

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The five transferred Taliban detainees have been named by the US State Department as Mohammad Fazl, Mullah Norullah Noori, Mohammed Nabi, Khairullah Khairkhwa and Abdul Haq Wasiq.
A Taliban source in Quetta told news agency AFP that the five had been officials in the Taliban regime driven out by the US-led invasion of Afghanistan after the September 11, 2001 attacks in the United States, and that they remained influential.

Impact on peace talks?

US Defense Secretary Chuck Hagel on Sunday expressed hope that the release of Sergeant Bowe Bergdahl would lead to direct US talks with the Taliban. In an interview with NBC's “Meet the Press,” Hagel noted that the United States had engaged in talks with the Taliban before, until they were broken off in 2012.
“So maybe this will be a new opening that can produce an agreement,” he said.
The men's release had long been the main condition imposed by the Taliban to launch peace negotiations with the United States.
Contacts between the two sides were broken off several times by the Taliban after Washington refused to release the prisoners, with the rebels saying the US refusal meant the United States was not serious about negotiations.
But secret talks nevertheless took place during the past year that led to the exchange, a Taliban official told AFP.
The official was careful, however, to avoid any speculation that those contacts could soon lead to peace negotiations.
A total of 149 detainees now remain at Guantanamo Bay prison. Among them, there are 12 Afghans, including four currently approved for transfer.
Bergdahl disappeared in June 2009 from a base in Afghanistan's eastern Paktika province, with the Taliban later saying they had captured him.
The Idaho native was the only American soldier held captive by the militants in the nearly 13-year war.
“Today, the American people are pleased that we will be able to welcome home Sergeant Bowe Bergdahl, held captive for nearly five years,” US President Barack Obama said in announcing his release.
Obama's announcement came as Pentagon chief Chuck Hagel said he had informed the US Congress of the decision to transfer five Guantanamo detainees to Qatar.
“The United States has coordinated closely with Qatar to ensure that security measures are in place and the national security of the United States will not be compromised,” Hagel said.

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Exports- Sugar shortage recovered

Sugar millers make out case for exports

 

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KARACHI: The country will have around one million tonnes of extra sugar this year based on monthly consumption of around 390,000 tonnes and available stocks of 3.45 million tonnes held by sugar mills of three provinces till May 15, 2014, according to millers’ estimates.
They said mills in Punjab hold 1.927m tonnes of sugar stocks, followed by 1.328m tonnes in Sindh and 200,000 tonnes in Khyber Pakhtunkhwa.
“If we use 390,000 tonnes of sugar per month, our consumption comes to 2.34m tonnes from May 15 to November 2014 which means we will still have around 1m tonnes of surplus stocks,” Javed Kayani, a former chairman of the Pakistan Sugar Mills Association (PSMA), told Dawn from Lahore.

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One million tonnes of surplus sugar likely this year

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He said sugar production from November 2013 to April 2014 stood at 5.45m tonnes, of which Punjab produced 3.25m tonnes, Sindh 1.850m tonnes and Khyber Pakhtunkhwa 350,000 tonnes.
However, despite all indicators regarding sugar production and stocks situation are satisfactory, Mr Kayani was unsatisfied with slow pace of sugar exports.
According to figures of Pakistan Bureau of Statistics (PBS), sugar exports plunged by 27 per cent in quantity and 37pc in value.
In the first 10 months (July-April) of this fiscal year, exports stood at 564,960 tonnes ($248m) compared to 778,775 tonnes ($393m) in same period last fiscal. This export data also included export shipment of over 60,000 tonnes made in July-September 2013-2014.
When the government had announced export permission of 500,000 tonnes of sugar on Sept 7, 2013, 400,000 tonnes were exported to various foreign destinations on the same terms and conditions as of last year.
However, in March this year, the government further allowed export of 250,000 tonnes but took away all the benefits like withdrawing SRO 77, inland freight subsidy while exports were further hit by rupee’s appreciation against the dollar.
He said that by June 15 only 50,000-60,000 tonnes of export out of 250,000 tonnes would be made as per contracts with foreign buyers.
Mr Kayani said that India having good crop is providing freight subsidy of $54 per tonne besides a subsidy of 66-billion Indian rupees to growers.
Millers, he said, had cleared payment of Rs220bn to growers and only Rs15-20bn was pending.
He said the government should restore the previous incentives and benefits so that Pakistan could fetch more revenues through sugar exports. “There will be no sugar crisis after calculating consumption and available exportable surplus,” he added.
Around 70pc of sugar out of country’s total production is consumed in juices, squashes, syrups, soft drinks, biscuits and confectionery, while the share of households and other customers is just 25-30pc.
According to data of large-scale manufacturing, the country’s soft drinks production rose to 1.75bn litres in 2012-13 compared to 1.6bn litres in 2011-12. A total of 238m litres of juices, syrups and squashes were produced in 2012-13 compared to 214m litres in 2011-12.
In July-March 2013-14, soft drinks production rose to 1.542bn litres from 1.151bn litres in the same period last fiscal. Production of juices, syrups and squashes jumped to 178m litres in the nine-month period from 157m litres from a year earlier.
Pakistan also imported sugar in July-April period of this fiscal year: some 9,352 tonnes worth $5m landed here compared to 5,737 tonnes worth $4m in the year-ago period.
“This imported sugar is being brought by some pharmaceutical companies otherwise there is no need for imports when the country has good production and stocks,” Mr Kayani, the former PSMA chairman, said.

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Request for Policies to be revised for Textile sector sales tax

Textile value-added sector opposes sales tax on exports

 

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KARACHI: The value-added textile sector has taken strong exception to the government proposal of imposing 5.5 per cent sales tax on its exports in the budget 2014-15.
Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Zonal Chairman South Arshad Aziz, Towel Manufacturers Association (TMA) Senior Vice-Chairman Iftikhar Ahmed Malik, Pakistan Cloth Merchants’ Association (PCMA) Chairman Abid Chinoy and Irfan Z Bawany of Pakistan Hosiery Manufacturers Association (PHMA) talking to Dawn on Saturday said that the move would be disastrous and further put them at disadvantage against regional rivals.
They were highly critical of the idea since exporters were already paying 2 per cent sales tax and 0.25pc export development levy.
They said that billions of rupees were already stuck up with the Federal Board of Revenue (FBR) towards rebate, sales tax refund and duty drawback causing acute liquidity problem for exporters to meet their export orders.
“Therefore imposing further tax would completely deprive the export trade of much-needed liquidity,” they added.
They accused the FBR of deferring payments up to 50 per cent of sales tax refunds and it has accumulated into billions of rupees.
The leaders pointed out that growth in textiles and clothing exports of regional countries stood fabulous when compared with Pakistan.
They said that the cost of doing business in Pakistan was the highest in the region.
In wages Pakistan is second to India but in interest rate and power rates it is highest. Similarly, in gas tariff Pakistan is higher than India but lower than Sri Lanka.

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Used Vehicles Import Taxes revised

Used vehicles: duty collection tumbles to Rs7bn in July-April

 

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KARACHI: Import of used vehicles continued to show negative trend as only 17,968 units were imported in engine capacity range of 660cc to above 3,000cc including jeeps (4x4) in July-April 2013-14 as compared to 41,281 units in the same period last fiscal year.
The government’s customs duty collection from the above imports plunged to Rs7 billion from Rs15bn collected in the corresponding period of last fiscal year.
Only 13,090 cars up to 1,000cc under various schemes were landed as compared to 23,779 units. From 1,001cc to 1,300cc, only 28 cars were imported as compared to 2,186 units.
According to data compiled by All Pakistan Motor Dealers Association (APMDA), imports of 1,301 to 1,500cc cars stood at 2,317 units as compared to 11,986 units. Nil imports were recorded in 1,501cc to 1,600cc in July-April 2013-14 as compared to 43 units in same period last fiscal year.
Only 1,772 units from 1,601cc to 1,800cc found way into the country as against 2,295 units. In 1,801cc to 3,000cc segment, only 26 units came from abroad as compared to 58 units.
Only 16 units of above 3,000cc were imported as compared to 74 units. In jeeps (4x4), around 719 units came into Pakistan as compared to 860 units.
Chairman APMDA H.M. Shahzad attributed steep fall in imports to wrong policies of the government like cut in age limit of used cars to three from five years coupled with reduction in depreciation limit.
He urged Finance Minister Ishaq Dar and FBR chief to allow import of 660cc cars without any age limit as the local industry does not roll out this low engine power cars.
The government should allow commercial imports of used vehicles up to five years of age limit, he said. Allowing commercial imports in addition to existing schemes for the imports of used vehicles under various schemes would be in line with the government’s policy of the documentation of the economy and would generate 100 per cent more revenue for the government, he added.
There should also be no regulatory duty on import of above 1,800cc vehicles as these vehicles are also not assembled in Pakistan, he said.

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Justice served to the country

Apprehension can’t justify travel bar for Musharraf: counsel

 

Former president General (retd) Pervez Musharraf. - File Photo

KARACHI: The counsel for retired Gen Pervez Musharraf has contended that the government’s contention that the former president would flee the country due to entailment of death penalty in the ‘high treason’ case was mere apprehension that could not be a ground for depriving him of exercising his fundamental right to travel freely.
This was one of the arguments in synopsis filed by Barrister Farogh Naseem on Saturday in the Sindh High Court that had reserved on Thursday the judgment on the former ruler’s plea to have his name removed from the exit control list (ECL).
A bench headed by Justice Muhammad Ali Mazhar reserved the verdict after hearing lengthy arguments of Attorney General Salman Aslam Butt and Barrister Naseem.
According to the AGP, the government could not take the risk of allowing the petitioner to leave the country because there was a great incentive for him to flee in view of the treason case that involved the death penalty.
Barrister Naseem referred to a case law (PLD 2011 Karachi 546) that held that mere apprehension that the petitioner could flee from the country was not a ground for depriving him of his right to travel.
He said the right to travel abroad could not be taken away unless the government could show that the applicant was going to meet enemies of the country, which could endanger the security of the state.
Barrister Naseem said the prosecutor in the Article 6 case had said that the petitioner was not being charged with disloyalty to the state but with violation of the Constitution.
Barrister Naseem contended that in none of Mr Musharraf’s cases had the trial court restrained him from going abroad. “In fact in the Article 6 case, the learned trial court vide order dated 31.3.14 has clearly held that the present petitioner is not being taken into custody, and there is no restriction on his movement.”

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Government Initiatives- An uplift for all provinces

Govt to work for uplift of all provinces, says Sharif

NANDIPUR: Prime Minister Nawaz Sharif takes a look around the Nandipur Power Project’s combined cycle plant after its inauguration ceremony on Saturday.—APP

GUJRANWALA: Prime Minister Nawaz Sharif has said that equal development in all provinces is the priority of his government because he is working for progress of the nation.
Addressing the inaugural ceremony of the first phase of the Nandipur Thermal Power Project on Saturday, he said his government would start uplift projects not only in areas where the PML-N received a majority of votes, but also in those parts of the country where people did not vote for his party.
He said the government was working to overcome the power crisis, but other sectors were also not being neglected, citing proposed projects like Lahore-Karachi Motorway and upgradation of Gwadar city.
Mr Sharif said Rs40 billion had been released for purchase of land for Diamer Bhasha Dam, which would provide water for agriculture and generate 4,500MW of cheap electricity. Dasu Dam on the Indus River was also a priority of his government, he added.
Mr Sharif said he laid the foundation stone of a 1,320MW thermal power project in Sahiwal, 1,320MW power project in Port Qasim, besides other projects, recently.
He said the Neelam-Jhelum hydel power project would be completed soon, but regretted that due to negligence of the quarters concerned its cost had gone up from Rs84bn to Rs275bn.
The prime minister said that Rs55bn had been released for the purchase of land for the Lahore-Karachi Motorway.
He expressed his commitment to make Gwadar a free port like Dubai and Singapore, construct an international airport there and develop the city like Karachi and Lahore.
He criticised those who were agitating and wondered whether they were protesting against progress of the country. He asked them to join hands with the government and contribute to the development of the country.
He said the budget would look after the interests of farmers and industrialists because both were very important for national economy.
He praised Chinese and Pakistani engineers and workers on completion of the project in record time

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Budget for 2014 presented by PMLN government

Dar set to unveil tax-heavy budget

 

 

ISLAMABAD: Finance Minister Ishaq Dar is all set to present the second budget by the Pakistan Muslim League-Nawaz government in the National Assembly on Tuesday.
The finance bill, which will be tabled in parliament next week, is expected to include Rs535 billion in additional taxes and other administrative measures.
The ambitious new tax measures revolve around three pillars — documenting and taxing the rich, raising the existing withholding tax rates for non-compliant taxpayers, and increasing the income tax share in overall revenue collection.
Officials privy to the budget-making process say these proposals are aimed at offering industrialists a better environment through the lowering of customs duties. But this will not provide any relief to salaried individuals or the common man.
A well-placed source in the Finance Ministry told Dawn: “The Federal Board of Revenue has obtained approval from the prime minister for the new taxes.”
The government has projected an ambitious revenue collection target of Rs2,810bn for FY2014-15. But tax officials say this target is too high and predict that FBR may be able to collect not more than Rs2,700bn.
SALES TAX: Any change in the sales tax rates will directly affect the weaker sections of society and have an impact on inflation. Prime Minister Nawaz Sharif has agreed in principle to bring down the existing rate to single digit and has also approved the constitution of a commission to explore this possibility.
At present only four per cent of the total sales tax collected reaches the government, with fake receipts accounting for the bulk of the losses.
Mr Sharif has agreed to bring down sales tax to five-seven per cent and to do away with input adjustments and refunds.
A tax official said: “The reduction in sales tax rate will bring political mileage for the PML-N government,” adding that this might not go down well with the International Monetary Fund.
The government is also expected to make receipts mandatory for all transactions. Tax authorities are considering offering incentives such as a lottery scheme to encourage people to obtain receipts at shops, restaurants, etc.
While no exemptions will be withdrawn from kitchen items, stationery, pharmaceuticals and dairy products, the steel sector may see the sales tax rate climbing up to Rs7 per unit from Rs4 per unit.
A proposal is under consideration to levy over 5pc sales tax on export proceeds, which will be charged from foreign buyers.
The government appears reluctant to give the salaried class tax concessions despite the fact that in the previous year, most wealth statements were filed by salaried individuals.
Experts suggest a 15pc to 20pc income tax concession for those earning more than Rs35,000 per month, while for those earning around Rs1.2 million per month the concession may be around 10pc.
WITHHOLDING TAX: To differentiate between taxpayers and non-taxpayers, the government has decided to increase the cost of doing business for non-taxpayers by increasing withholding tax across the board.
All existing withholding tax rates will be increased by 1.5pc to 2pc for non-taxpayers. Those who are on the tax rolls and file their returns will pay the existing withholding tax rates.
For example, on cash withdrawal from banks, the withholding rate will be increased from 0.3pc to 0.5pc. Those who have NTNs and file returns will pay a lower rate. Similarly, there will be an increase in the withholding tax on interest and dividend. “We will provide all NTN and returns data to banks,” the official said.
Filers who travel abroad often will be subject to an adjustable 5pc withholding tax, while the rate for non-filers will be 10pc. The taxes will be applied only on first-class and business-class tickets.
Gas and electricity connections will also be linked to NTNs. Each transaction, whether for business or non-business purposes, will only be allowed through cross cheque and the penalties for issuing bogus cheques will be enhanced.
The FBR has no proposal to withdraw income tax exemptions on perks and privileges of judges of the superior judiciary, the president of Pakistan and services chiefs, among others.
There are several SROs which cannot be withdrawn because of their expected impact on the end-consumer. For example, the withdrawal of a sales tax exemption on crude oil will fetch Rs94 billion in revenue but it will lead to an increase in the price of oil.
There are several proposals on the cards, including the levy of regulatory duties on luxury items. The government may also increase taxes on the import of used cars

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Ground breaking of Punjab's first Coal Power Plant

PM performs ground breaking of Punjab's first coal power plant

Prime Minister Nawaz Sharif. — File photo

ISLAMABAD: Prime Minister Muhammad Nawaz Sharif Friday performed the ground breaking of Punjab's first coal-fired power plant that will generate 1320 MW and help the country meet its chronic energy shortage.

The project comprising two units of 660 MW each will be operational in two years time and start adding electricity to the national grid by 2016.

The prime minister said the project will not only help meet the electricity shortage, but also create employment for the people of the Sahiwal District and contribute in national Gross Domestic Product.

Prime Minister recalled the love and emotions of the people of the Sahiwal and said “you are being duly rewarded for standing by the PML-N,” and added he was grateful to the people of the Sahiwal for their support.

He said the people of Sahiwal will again benefit from the soon to be inaugurated Lahore to Karachi motorway that will touch the area and bring in more economic opportunities for its people.

He said Rs 55 billion have been allocated for acquisition of the land for building the Lahore Karachi motorway.

Prime Minister Nawaz Sahrif particularly mentioned the tireless efforts and commitment of Chief Minister Punjab Shahbaz Sharif for making the dream of a developed Pakistan come true.

He said he met the two investors who were now building the Sahiwal power plant at the Economic Summit in Boao China two months back and within a short time the initial work for the ground breaking of the project was accomplished.

He said if a project can start in only two months time then there could be no hurdle in its completion in two years time. He hoped the project would bring 30 per cent returns to the investors.

Prime Minister Sharif said the government was toiling day and night to meet the energy shortfall. He regretted that despite 23,000 MW installed capacity in the country, the operational capacity was only around 13,000 MW and vowed that in next eight to ten years his government would double the power generation.

He recalled the inauguration of a similar power project to generate 1320 MW electricity at Port Qasim a few weeks back and would be inaugurating the Nandipur power project on Saturday.

He mentioned the Pakistan-China trade corridor project and termed it a “game changer” for both the countries as the 2700 km long link from Kashgar to Gwadar. He said the highway passing through all the provinces of the country would open up new vistas of development and progress.

He said Rs 35 billion have been allocated for acquisition of land for the Bhasha Dam and the money has already been released. He said the project would generate 4500 MW, while the Dasu dam would also generate an equal amount of electricity and added that with the completion of the Neelum Jhelum project the total installed capacity would almost double from the current generation.

Prime Minister Sharif said he has a dream of turning the Gwadar Port into a Dubai, Singapore or Hong Kong and said it will have a modern shipping port and an international airport.

The Prime Minister mentioned that ten power units will be set up at Gadani, six in Punjab, ten at Thar and hoped the country's energy needs will be fulfilled.

Prime Minister said the economic indicators of the country were positive and GDP has risen to 4.1%, manufacturing up by 5.5% while foreign exchange reserves gone up enormously.

Earlier the Prime Minister performed the ground breaking of the project.

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