NFC Concerns
Finance Minister Muhammad Aurangzeb has assured the Khyber-Pakhtunkhwa government the federal government will address the province’s concerns regarding the National Finance Commission (NFC) Award. Since coming into power last year, KP Chief Minister Ali Amin Gandapur has repeatedly complained about his province being denied its due share of the federal divisible pool.
Case Policy
The Supreme Court has unveiled a new policy regarding early hearing and out-of-turn fixation of cases. Under the policy, cases involving bail, compromise, and transfer of proceedings in family disputes will be prioritized. Similarly, all election matters will be fixed on an urgent basis. Petitioners in such cases will no longer need to file early hearing petitions.
Tariff Relief
The federal government has announced it is reinstating benefits of reduced fuel cost charges for consumers using up to 300 units of electricity and agricultural tube-wells. The Power Division says the benefits for tube-wells were withdrawn in December 2010 and for consumers in June 2015. The reinstated policy seeks to ease the financial burden on farmers and households with low consumption.
Opposition Huddle
The Grand Alliance Conference convened by opposition parties proceeded on Wednesday despite claims by the politicians that the government was attempting to suppress them. In a press conference in the evening, the opposition leaders claimed denial of a venue for the second day of the moot, but vowed it will proceed regardless of any pressure.
Deals Revisited
The Punjab government has informed the Lahore High Court it has held in abeyance two agreements transferring vast swathes of land in Cholistan to two entities associated with the Pakistan Army. The controversial deals were inked by the unelected caretaker government and had drawn the ire of local residents, who claimed they were being forced to hand over their land to the state.
Tackling Inflation
The federal government has taken notice of the rise of prices of essential commodities ahead of Ramzan, with Planning Minister Ahsan Iqbal directing strict action against any hoarding or profiteering during the holy month. The minister also instructed relevant authorities to ensure the timely availability of essential goods, and maintain price stability for the benefit of the public.
Bilateral trade
Pakistan and Uzbekistan have vowed to expand their existing bilateral trade from $400 million to $2 billion in the near future. During an official visit of Prime Minister Shehbaz Sharif to Tashkent, both sides also agreed to work toward realizing the Trans-Afghan Railway project to connect Central Asia with South Asia and boost regional connectivity.
Economic Losses
Iranian diplomats have informed a Senate panel that Pakistan’s imposition of a bank guarantee requirement on Iranian trucks is yielding daily losses of $2.2 million. The diplomats noted that the requirement was removed in 2008 but was recently reinstated, adding Tehran has not imposed any similar restriction on Pakistani trucks.
Tax Losses
British American Tobacco has urged the government to review hefty taxes on smokeless products and clamp down on the illicit cigarette trade to avoid an estimated Rs. 34 billion in taxation losses. After the government significantly increased taxes on tobacco products last year, vendors shifted to cheaper illicit brands, leading to the share of illicit and untaxed cigarettes increasing from 22% to 54%.
Reductions Awaited
The Power Division has informed a National Assembly panel the government has ceased capacity payments to 22 Independent Power Producers, resulting in overall savings of Rs. 1.5 trillion. This, according to a government official, will reduce electricity tariffs by Rs. 4-5/unit. However, it remains unclear when this reduction would be visible in electricity bills.