Pakistan repays $1.4bn China loan

ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan’s provincial governments to generate an additional Rs430 billion in tax revenue during the current fiscal year, as part of broader efforts to strengthen public finances and increase provincial own-source revenues. According to official details, the proposed increase in tax collection is equivalent to 0.3 per cent of Pakistan’s Gross Domestic Product (GDP) and is expected to be shared among the four provinces in line with their allocations under the National Finance Commission (NFC) Award. The move is aimed at improving fiscal sustainability by encouraging provinces to rely more on locally generated revenues rather than transfers from the federal government. Officials believe stronger provincial tax collection would also help create greater financial discipline and support long-term economic reforms. Sources said each province would contribute to the additional revenue target based on its respective share under the NFC formula, although specific collection targets for individual provinces have yet to be announced. The recommendation comes as Pakistan continues implementing economic reforms under its programme with the IMF, with revenue mobilisation remaining one of the key priorities for both the federal and provincial governments. Meanwhile, the federal government has decided to establish an inter-ministerial committee, to be headed by the prime minister, for the implementation of decisions made by the National Economic Council (NEC). According to officials, the committee will include federal and provincial ministers along with senior government representatives. It will be responsible for monitoring the execution of national policies, reviewing progress on major development initiatives and ensuring timely implementation of decisions taken by the NEC. The committee is also expected to strengthen coordination between the federation and the provinces, particularly on economic planning, fiscal reforms and development projects that require close cooperation among different levels of government. Government sources said improved coordination is considered essential for achieving national economic objectives and ensuring that development programmes are implemented efficiently across the country. Economists say increasing provincial tax revenues has long been a key recommendation of international financial institutions, which argue that greater fiscal autonomy can improve governance, reduce dependence on federal transfers and create a more balanced financial system. The IMF’s latest recommendation is likely to shape upcoming provincial budgetary decisions as governments evaluate measures to expand their tax base while balancing the need to protect economic activity. The proposed revenue measures are expected to remain a major focus of fiscal policy discussions in the months ahead.

Multan Commissioner Aamir Karim Khan has said the Punjab government is taking a keen interest in the development of Multan and other parts of southern Punjab, stressing that the government, administration, business community and journalists must work together to address public issues and promote regional development. He made these remarks while speaking to journalists during a session titled “Guftagu” at the Multan Press Club. He also responded to questions regarding development projects, civic problems and other issues faced by citizens. The commissioner said the responsibility of government officers was not limited to sitting in offices. Officials must visit the field, assess public problems and take practical steps to resolve them. He said public service required officials to move beyond their comfort zones and remain connected with citizens. Aamir Karim Khan appreciated the Punjab government’s focus on Multan and southern Punjab, saying several major development projects were currently underway in the city. He stressed that timely availability of funds, proper engineering designs and other technical requirements were essential for completing development schemes. He said major sewerage projects in Multan were particularly important for the city and would provide significant relief to residents once completed. Work was also continuing on several major roads and development schemes, although some projects had faced delays because of land acquisition and other legal and administrative procedures. The commissioner said projects in areas including Eidgah Road and Shah Shams Park were being completed in phases. He added that a proposal worth around Rs6 billion had been sent to the Punjab government for improving roads from Delhi Gate to Daulat Gate and removing encroachments. Work on the project would begin once funds were made available. He said the preservation of Multan’s historic heritage, improvement of ancient gates and beautification of the city were among the administration’s priorities, along with the provision of basic civic facilities. He said action against encroachments on graveyards was continuing. Encroachments had been removed from a graveyard in Hassan Parwana, while similar operations would be carried out at other graveyards. The administration was also considering the renovation of smaller graveyards and provision of basic facilities there. The commissioner said a “Multan Enforcement Management Squad” had been established to tackle encroachments. The squad comprises officials from different departments and has been provided with motorcycles. It will monitor the city around the clock and identify encroachments. Its formal operations will begin on September 1. If the initiative proves successful, it will be expanded to other areas. Speaking about special education, Aamir Karim Khan said nearly 3,000 hearing-impaired children had been screened across 14 tehsils of the Multan Division. Around 320 children were identified as requiring hearing devices. With support from the business community, hearing aids had already been provided to 175 children. He said efforts were also underway to improve the speaking abilities of these children. The commissioner added that the Punjab government had been requested to introduce legislation making hearing screening mandatory for every child within six months of birth. Early diagnosis, he said, could significantly improve children’s education and future prospects. Regarding Jalalpur Public School, the commissioner said authorities had taken notice of the low number of students and were working with relevant departments to improve its functioning. He said the Punjab government was also working on a new public-private partnership scheme under which inactive government schools could be handed over to the private sector for better management. Aamir Karim Khan highlighted the important role of journalists in resolving civic problems. He urged journalists to use their observation, reporting and writing skills to identify public issues and contribute to social improvement. He said constructive criticism and highlighting genuine problems could help guide the administration. He also said direct communication with journalists would be strengthened so their concerns could be addressed more effectively. On cleanliness, the commissioner said maintaining a clean environment was a shared responsibility of the government and citizens. He urged shopkeepers to keep areas outside their businesses clean and residents to ensure cleanliness around their homes. During the meeting, Press Club President Shakeel Anjum briefed the commissioner about issues faced by the journalist community, particularly problems concerning the journalists’ colony. He stressed the need for their early resolution. The commissioner assured the journalists that he would contact the Director General of the Multan Development Authority regarding the issues and take steps for further progress. He said genuine concerns of the journalist community would be addressed on a priority basis. Aamir Karim Khan also answered journalists’ questions on various issues and assured them that practical measures would be taken to resolve public problems. He said the development of Multan was a collective responsibility and all stakeholders would have to work together to achieve this goal.