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Govt adopts irrational pricing policy | The Express Tribune

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2 مہینے ago

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LAHORE:

Pakistan is facing a low growth trap while the new budget essentially increases expenditure through more borrowing and a higher burden of taxes.

Increasing expenses, based on heavy borrowing, just raise the payments on borrowing, which now account for 57% of the total expenditure. This policy is clearly profligate and not sustainable; therefore, this perverse Gordian knot will have to be cut.

This is the crux of a report titled “State of Pakistan’s economy, growth, inflation, welfare and budget 2024-25”, released by the Lahore School of Economics.

According to the report, the budget for fiscal year 2024-25 is highly aspirational, where expenditures have been jacked up from Rs14.5 trillion (FY24) to Rs18.9 trillion. It is because the base of the budget – the tax revenue – is projected to expand from Rs9.4 trillion in the last fiscal year to Rs12.9 trillion this year, an ambitious target which is higher by Rs3.6 trillion.

The exigency of pushing the tax take above 10% of gross domestic product (GDP) is accepted without any economic debate and is devoid of context. Already, the economy is caught in a low growth trap, with declining investment and increasing capital outflows.

“With large-scale manufacturing contracting in the last two years and the economy running only on agriculture, increasing the tax take will not reverse this low growth trap,” the report said.

That is irrational pricing policy in a market economy. The budget seeks to match the scarcity of revenues to the exigencies of expenditures. Revenues in the last fiscal year comprised only 48.2% of the total budget, necessitating reliance on borrowing more than half, 51.8%, of the budget.

This is in large part necessitated by the transfer of all the federation’s revenues to provinces, leaving the federation with only 1% of revenues of the total budget, and making it entirely dependent on borrowing to meet expenditure commitments.

The ambitious revenue target for FY25, which is 55% of the budget, is aimed at bringing the reliance on borrowing down to 45%, the report stated. For FY25, expenditures have gone up to Rs18.9 trillion compared to Rs14.5 trillion in FY24, a near 30% increase. Given the reliance on borrowing, this large rise in expenditures is profligate.

The largest ticket item in the current expenditure continues to be the repayment for borrowing, rising from 54.8% of total expenditures last year to 56.8% this year.

According to the report, there are two imperatives for the economy. The first is reduction in borrowing and its costs. Increasing expenditure, for which more than half coming from borrowing, is not sustainable or rational. Therefore, expenditures have to be cut and the budget deficit lowered.

The second is generating growth, but if significantly increased taxation is a disincentive to growth, then again, expenditures must be lowered to better match the existing taxation. If there are some expenditures that need to be ring-fenced, exigencies of the state come to mind, so does welfare.

Welfare must come to the fore. As a result of the increase in inflation, which peaked at 33% over FY 2022-23, incomes have eroded, especially for the lowest decile in income distribution.

The poverty headcount has increased from 5% of the population in FY 2019-20 to 9% in FY 2021-22 and then doubled to 18% in FY 2022-23.

The LSE has estimated that the eradication of extreme poverty will require unrequited transfers to the poor, of 10% of revenues. If this is a large ask for a developing economy, a more immediately doable amount can be estimated.

“We have estimated that the poor spend a quarter of their caloric basket on wheat and bread. This makes the first step in poverty eradication to spend 2.5% of revenues on the provision of free wheat to the means-tested poor population,” the report added.

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Pakistan

Honda CD70 Dream Latest Price, Installment Plans – Sep 2024 Update – Pakistan Observer

Published

9 گھنٹے ago

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ستمبر 20, 2024

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Honda remains leader in bikes market, with its top-selling units like CD 70, and that’s without making any major changes as the entry-level bikes look almost same for a long time. As the CD-70 remains its most selling model, bikes like the CD-70 Dream and Pridor are considered a niche products.

Despite failing to achieve top sales, CD 70 Dream is still in the market, featuring air-cooled, 4-stroke engine that delivers smooth performance and impressive fuel economy, often averaging around 60-70 km/l, making it ideal for daily commuting.

The bike looks better with stylish and modern design with attractive graphics, as compared to simple CD70. People also like its comfort as built quality remains optimum, comparing to other players.

Its pricing makes it accessible to a wide audience, including students and working professionals, solidifying its status as a favorite among motorcycle enthusiasts in Pakistan.

As bikes prices remain out of hands, people are having hard time to upgrade their ride while companies also face low sales.

Honda CD 70 Dream Price

The price of Honda CD70 Dream is Rs168,900 in September 2024.

Honda CD 70 Dream Installments

Installment Plans Monthly Payments 
3 months Rs56,300
6 months Rs28,300
9 months Rs21,890
12 months Rs17,200
24 months Rs10,170
36 months Rs7,800

 

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Check Property Ownership in Lahore, other Punjab cities Online – Pakistan Observer

Published

10 گھنٹے ago

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ستمبر 20, 2024

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If you live in Lahore or any other city in Punjab; you might have faced difficulties in getting land record in previous years, but now the government made the land verification process smooth with digitization.

To curb the menace of land mafia and to help residents of Punjab, the government rolled out a systematic process and also eased the process of property transfers and real estate transactions.

A new verification system is Live by provincial authorities to check the legitimacy of properties available for purchase or investment across the region of 110 million people.

The relevant authority in this regard is Punjab Land Record Authority which oversees management and maintenance of land records. You can get different services, including ability to search for and view land records, as well as request copies of documents.

Check Property Ownership Online 2024

Here’s Step by Step Guide To Check property ownership

Step 1: Please visit PLRA portal at Punjab-zameen.gov.pk.

Step 2: Find ‘Property Registration,’ on home and click on https://rodportal.punjab-zameen.gov.pk/.

Step 3: It will ask you to select your district and service center.

Step 4: You can search by different options including Bahi number, ID card, registration number, or by person name.

Step 5: After entering details, please advance to ‘Search’ to get the land ownership.

With latest updates, you can check data on number of property transfers in last 36 months.

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Pakistan

Suzuki Bolan discontinued in Pakistan after 36 years; Here’s replacement for ‘Carry Dabba’ – Pakistan Observer

Published

11 گھنٹے ago

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ستمبر 20, 2024

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LAHORE – Finally, it’s time to say goodbye to the iconic Suzuki Bolan as Pak Suzuki pulled plugs to replace the minivan with another model. Over the last 3.5 decades, Suzuki Bolan enjoyed decent sales and was valued for its flexibility, serving a multi-passenger vehicle and for commercial purposes.

Amid shift in auto landscape in Pakistan, Bolan becomes latest drive to be discontinued after Suzuki Mehran, which you can still spot.

Pictures of Suzuki Bolan’s last batch surfaced online, and Pakistanis hit nostalgia as many grew up in this vehicle. The final chassis number marked as 01151691. The country’s oldest automaker and maker of Bolan also confirmed discontinuation of the 800cc Carry Dabba.

The company decided to replace Bolan for its outdated design and lack of safety features. Amid its low sales, consumer demand for a modern replacement like Changan Karvaan increased.

Suzuki Every to Replace Bolan

Suzuki earlier mentioned that Every will replace Bolan, and one of its recent model was unveiled at a recent auto show.

The launch of Every models faced delays due to import challenges and it is expected to launch in mid October.

Suzuki Bolan Price in Pakistan

 

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Gold prices reach historic high in Pakistan – Pakistan Observer

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12 گھنٹے ago

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ستمبر 20, 2024

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