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Pakistan’s bastion of political energy and its largest province, Punjab, which has additionally been floor zero for current political confrontation, continues to push an industrial reforms and innovation agenda.
Spearheading this push is the give attention to Particular Financial Zones (SEZs), however following carefully are different improvements concentrating on speciality zones and insurance policies that may assist increase excessive potential sectors.
Industries in Punjab, which vary from textile to surgical devices, make a considerable contribution to Pakistan’s economic system. In accordance with authorities knowledge, there are greater than 48,000 industrial models in Punjab, which incorporates over 39,000 small and cottage industries.
A giant chunk of industries belong to the textile sector. In accordance with knowledge obtained from the Punjab authorities, there are at present 11,820 textile models practical in Punjab whereas the variety of ginning industries is 6,778.
However textile is only one half. Some 6,355 models course of agricultural uncooked supplies, together with meals industries. Lahore and the Gujranwala division have the very best variety of small and lightweight engineering models whereas Sialkot district is greatest in sports activities and surgical gear in addition to cutlery. Furthermore, Punjab additionally has huge mineral deposits like coal, rock salt, dolomite, gypsum and silica sand.
The trouble to develop trade to non-traditional areas and additional strengthen established sectors is ongoing. Revenue sat down with Dr Ahmed Javed Qazi, appointed on Could 10, 2022 as Secretary of Industries, Commerce Funding & Expertise Improvement Division (ICI&SDD) to know the dimensions, state, and way forward for the industries housed within the Punjab.
Why does the JS Group wish to purchase BankIslami?
As soon as poised to turn out to be one of many largest Islamic Banks in Pakistan, BankIslami is now at a crossroads. On the fifteenth of November, one of many financial institution’s main shareholders, the JS Group, introduced its intention to amass 51% shareholding within the financial institution and consolidate its management.
So why is the JS Group now seeking to purchase BankIslami and take over its administration? For starters, there may be the very actual wave of Islamic Banking that has overrun the business in Pakistan. The rise of Meezan Financial institution and pivots in direction of offering Shariah compliant companies by others equivalent to Faysal Financial institution have all pointed in direction of an enormous market that’s rising and gaining extra floor yearly. On prime of that, for almost twenty years now, BankIslami has been run by a number of giant shareholders and the ensuing inefficiencies have cripple its decision-making and stunted its development.
With the incumbent authorities additionally saying its intention of transferring in direction of an interest-free banking system, the sector is altering quickly. A day after the public announcement of intention (PAI) was submitted by Subsequent Capital Restricted, each BIPL and JSBL confirmed the acquisition announcement. Nevertheless, the ultimate sale shall be made after approval from the state financial institution.
4 ticking time-bombs threatening Pakistan’s meals safety
Pakistan has an issue. In a global rating of the World Starvation Index (GHI) this 12 months, the nation ranked 92 out of 116 nations, with its starvation categorised as ‘critical.’ Pakistan presently faces a situation through which it’s largely meals ample however not meals safe.
Regardless of Pakistan being ranked at eighth in producing wheat, tenth in rice, fifth in sugarcane, and 4th in milk manufacturing, a 2019 report of the State Financial institution of Pakistan (SBP) confirmed that just about 37% of households in Pakistan are meals insecure. Within the three years for the reason that SBP’s report, issues have solely worsened. Meals value inflation in Pakistan has been in double digits since August 2019. The price of meals has been 10.4-19.5% larger than the earlier 12 months in city areas and 12.6-23.8% in rural areas, in response to figures revealed by the Pakistan Bureau of Statistics.
So how does a rustic with one of many largest agrarian economies on this planet discover itself unable to sufficiently present meals for almost 40% of its inhabitants? For many years, agriculture has been uncared for and other people’s earnings have been hit by one financial disaster after one other. On prime of this, notably previously decade or so, local weather change associated disasters and adjustments within the setting have resulted in our already uncared for agriculture changing into much less aggressive.
One other blow to native governance
On the fifteenth of November this 12 months, a writ-petition was filed within the Lahore Excessive Court docket difficult a newly inserted part to the Revenue Tax Ordinance of 2001. The brand new part, title 7E, was a seemingly innocent inclusion to the tax ordinance that allowed the Federal Board of Income (FBR) to gather earnings taxes on immovable property.
However in response to the writ petition, and different related circumstances which can be at the moment being contested within the excessive court docket, the inclusion of part 7E is a extra sinister transfer which will partly go towards the 18th modification to the structure.
The brand new legislation mandates that each property which isn’t in using the proprietor, can be “deemed” by the FBR as bearing a hire equal to five% of the entire market worth to the property. This “deemed rental earnings” can be taxed at a fee of 20%. In easy phrases, each property proprietor must pay a tax equal to 1% of the market worth of his property to the federal authorities.
The concept to tax unused immovable property in itself isn’t a nasty one. Property is mostly an excellent technique of storing wealth in Pakistan and largely stays undocumented and untaxed. The problem right here is that with the FBR imposing and amassing this tax, the federal authorities is in essence amassing property tax. Whereas the FBR has claimed and is arguing in court docket that that is an earnings tax and never a tax on property, the traces are blurry.
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