The government has issued a notification announcing a 17.5 per cent increase in the pension for federal government pensioners. The increase, sanctioned by the President, will be effective from 18th July 2023 until further orders. It applies to all civil pensioners of the federal government, including civilians paid from Defence Estimates, as well as retired armed forces personnel and civil armed forces personnel.
The 17.5 per cent increase in pension will also be applicable to pensioners who retire on or after 1st July 2023. To determine the eligibility for the increase in pension as sanctioned in this notification, “Net Pension” refers to the pension being drawn minus the Medical Allowance.
In addition, the increase will be granted to family pensioners under the Pension-cum-Gratuity Scheme of 1954, the Liberalized Pension Rules of 1977, pensions sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules, as well as the Compassionate Allowance under CSR-353.
If the gross pension sanctioned by the federal government is shared with another government in accordance with the rules stated in Part-IV of Appendix-III to the Accounts Code, Volume-I, the increase in pension will be divided proportionately between the federal government and the other government concerned.
However, the increase in pension as sanctioned in this notification will not be applicable to the special additional pension granted in place of pre-retirement orderly allowance and the monetized value of a driver or an orderly.
On Wednesday, the price of gold reached another record high as it continued its upward trend. The price of precious yellow metal in Pakistan is currently higher than the global market.
Gold prices increased by Rs900 per tola and Rs772 per 10 grammes, respectively, according to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). These prices now stand at Rs188,600 and Rs161,694 respectively.
Owing to the Pakistani rupee’s depreciation against the US dollar during the present cycle and the lack of US dollars, traders predict that the price of gold would reach Rs200,000 per tola.
According to market analysts, the $6–$8 billion inflow from multilateral and bilateral creditors will pop Pakistan’s gold price bubble.
Silver’s price per tola, however, stayed constant at Rs2,150. The cost of 10-gramme silver remained essentially constant at Rs1,843.27.
Gold prices increased more than 1 per cent on Wednesday, reaching their highest level since mid-June due to a weaker rupee and mounting predictions that the Federal Reserve will raise interest rates gradually rather than aggressively.
The markets have now priced in the possibility that the central bank may raise interest rates by a full 50-100 basis points on January 23 after Pakistan’s December inflation data was revealed on Monday.
Greater interest rates increase the opportunity cost of owning non-yielding metal, despite the fact that gold is regarded as a safe investment during times of uncertainty and a hedge against higher inflation.
Extreme flooding has hampered the supply of perishable items from agricultural areas, driving up the prices of onions and tomatoes in city markets.
While tomatoes cost Rs400-450 per kilogramme (kg), onions cost Rs350-400 per kg. Onion prices rose by Rs75 per kg week over week in the official rate list, while tomato prices rose by Rs234 per kg.
The supply chain is hampered by road blockages and transportation restrictions in flood-affected areas, according to The News.
Onion A-grade cost Rs75 more per kg, was fixed at Rs180-190, and was sold for Rs350-400 per kg. Onion B-grade cost Rs160-167 per kg, was sold for Rs235-250 per kg, and onion C-grade was priced at Rs180-200 per kg.
Tomato A-grade price increased by Rs234 per kg, maintained at Rs320-330 per kg, sold for Rs400-450 per kg, followed by B-grade price increase to Rs290-300 per kg, C-grade price increase to Rs240-250 per kg, and B&C price increase to Rs350 per kg.
Chinese carrot prices increased by Rs11 per kg, from Rs80 to Rs85 per kg to Rs120 to Rs160 per kg for sale. Fenugreek (Methi) remained constant at Rs250-260 per kg and was sold for Rs400 per kg.
This week, the price of chicken also climbed by Rs20 per kg, from Rs240 per kg to Rs280–300 per kg, and the price of chicken meat by Rs30 per kg, from Rs362/kg to Rs380–650/kg.
Cucumber Farm increased its price by Rs50 per kg, fixed at Rs120-125 per kg, sold at Rs150 per kg, and locally sold cucumbers were sold for Rs200 per kg.
Brinjal price increased by Rs5 per kg, from Rs86 to Rs90 per kg, and was sold for Rs120 to Rs140 per kg.
Price of bitter gourd rose by Rs10 per kg, fixed at Rs160-165 per kg, and sold at Rs200 per kg.
Local lemon prices increased by Rs20 per kg, from Rs235-245 per kg to Rs280-320 per kg when sold. Pumpkin remained at Rs60–63 per kg, sold for Rs80–100 per kg, and pumpkin long was sold for Rs140–150 per kg.
Despite several reports of an expected decrease in prices of petroleum products, the government increased the price of petrol by Rs6.72 per litre and decreased the price of high-speed diesel (HSD) by Rs0.51 and kerosene oil by Rs1.67 per litre.
The price of light diesel oil (LDO) was raised by Rs0.43 per litre by the government.
Prior to this, the coalition administration had decreased the cost of petrol and LDO starting on August 1 by Rs3.05 and Rs0.12, respectively.
However, starting on August 1, 2022, the government had increased the price of HSD by Rs8.95 per litre and kerosene oil by Rs4.62 per litre.
With the most recent announcement, the price of petrol has gone up from Rs227.19 per litre to Rs233.91 per litre, and that of LDO has gone up to Rs191.75 from Rs191.32 per litre; and that of HSD has gone up to Rs244.95 from Rs244.44.
Kerosene oil is now available for Rs199.40 per litre as opposed to its earlier price of Rs201.07 per litre.
The rapid depreciation of the rupee against the dollar had previously also been a significant determinant of oil prices.
The standing of the rupee against the dollar had improved recently. In spite of this, the cost of gasoline had increased.
Additionally, there had not been a significant decrease in the cost of diesel, which is widely used in the nation’s transportation and agricultural sectors.
On account of the fuel cost adjustment (FCA) for May 2022, the National Electric Electricity Regulatory Authority (Nepra) allowed K-Electric to increase its power rate by Rs9.66 per unit on Monday.
According to Aaj News, Nepra will make the announcement following careful consideration.
In order to transfer the financial burden of Rs22.65 billion to consumers for May 2022, K-Electric requested an increase of Rs11.34 per unit.
Officials from Nepra questioned K-Electric during a hearing about why it wasn’t buying less expensive electricity and offered to help K-Electric establish a connection with the provincial and federal governments for this reason.
The power distributor also questioned K-Electric’s decision not to use the inexpensive oil it had acquired for power production.
Nepra’s representatives responded that the company was using peak hours, which are from 6:30 PM to 10:30 PM, to provide electricity and that the cost of power is much greater at these times.
The FCA estimate for May 2022, according to K-Electric, was based on the requested rate for the month from CPPA-G and is subject to change based on a decision to be made by Nepra.
In its FCA adjustment request, the power utility informed the regulator that it imports from outside sources and dispatches power from its own generating units (with the available fuel resources) in accordance with economic merit orders (EMOs).
Telecommunications companies in Pakistan, such as Jazz, Telenor, and Ufone, have raised the prices of various call and data package offers.
According to Propakistani, Jazz has notified its customers of the price increase, and the company has revised the subscription fees for the YouTube and social packages for one week from Rs115 to Rs120, while the price of the WhatsApp package has increased from Rs21 to Rs23 for one week.
Jazz prepaid monthly premium, which includes 25GB of monthly data and 250 all-network minutes, remains unchanged at Rs650.
Due to rising inflation, Ufone has also raised its prices. UPower is now priced at Rs120, up from Rs100 previously. The price of SuperCard Plus increased from Rs649 to Rs699 on June 29, 2022. The price of Super Card Gold has also risen by more than Rs100, from Rs999 to Rs1,099.
Telenor package prices have also increased. On June 22, 2022, the price of EasyCard increased from 500 to Rs550; on June 29, 2022, the price of EasyCard increased from Rs650 to Rs700; and the monthly social pack plus increased to Rs100.
Telecom companies claim that a price increase is required to maintain service quality as inflation rises.
The government is given the deadline of June 30 to accept the pharmaceutical industry’s demands, or the cash-strapped sector will have no choice but to shut down.
In order to prevent the collapse of the industry, Qazi Mansoor Dilawar, chairman of the Pakistan Pharmaceutical Manufacturers Association (PPMA), called for the refund of Rs40 billion that the government had collected as sales tax on the import of raw materials, the removal of the 17 per cent sales tax, and a 20 to 25 per cent increase in the price of medications during a press conference at the National Press Club.
He also called for a 20 per cent increase in the maximum retail price (MRP). According to him, there is already a shortage of about 40 medicines on the market, and if immediate action is not taken, the shortage will grow alarmingly large.
Dilawar claimed that the previous administration had pledged to refund the sales tax that had been imposed as a result of IMF pressure within 48 hours, but regretted that no mechanism had yet been established, preventing the refund of a significant Rs40 billion.
The problem was made worse by a three-fold increase in the price of raw materials, a massive increase in freight costs, an increase in the price of fuel and electricity, and a drop in the value of the rupee. He added that 95 per cent of the raw materials used in the sector had to be imported.
The president of the PPMA dismissed the notion that the industry was reaping huge profits by mentioning that many medications had costs that were higher than their retail prices.
He asserted that about 70 per cent of Pakistani medications were less expensive than those found in India and Bangladesh.
In response to a question, he stated that while there was much discussion about the increase in 600 drug prices after 13 years under the PTI government, there was little discussion of the decrease in 400 drug prices.
The industry was not prepared to handle the challenge this time, according to the former PPMA chairman Qaisar Waheed, who also spoke about the recent increase in Covid-19 cases, particularly in Sindh.
In an attempt to lessen the impact of inflation, the government is considering raising salaries by 5 to 15 per cent in the upcoming fiscal year’s budget, according to The News, following the Pay and Pension Commission’s inability to submit a report ahead of the next budget, which led to the prime minister’s decision to grant another extension.
The deadline for submitting the Commission’s recommendation is being extended to June 30, 2022, as per a statement released by the Finance Division.
According to top official sources, the former PTI-led government gave a 15 per cent allowance to officials in grades 1 to 19, effective March 1, 2022.
The new Shehbaz Sharif-led administration, on the other hand, pledged a 10 per cent rise in the pension and a 25,000-per-month minimum wage.
A Finance Ministry official stated that in the future budget, pay for grades 1 to 19 may be boosted by another 5-10 per cent as an adhoc allowance. Employees in grades 20 to 22 could see a pay raise of 10 per cent to 15 per cent.
In addition, due to increased inflationary pressures, the government may boost pensions by 5-10 per cent. The Regulation Wing of the Ministry of Finance has completed its internal work in this regard. It was also resolved to form a Pay and Pension Commission, which would make recommendations.
The commission was established by the PTI-led government in April 2020, and its chairman was former Secretary of Finance Abdul Wajid Rana. He resigned, however, and former bureaucrat Nargis Sethi was named Chairperson of the Pay and Pension Commission. She later quit as well.
The Pay and Pension Commission was then chaired by Zafar Ahmed Khan, who was chosen by the government. So far, the commission has requested two extensions but has yet to present its recommendations.
The text box was included in the Pay and Pension Commission’s terms of reference, which included studying the adequacy of the existing basic pay scale system and evaluating the current salaries of government employees.
It also includes making recommendations for streamlining existing classification from BPS 1-22, studying the separation of existing basic pay scales for dedicated departments, occupations/cadres, reviewing special scales such as management grades, management position scales (MP Scales), special professional pay scales (SPPS); project pay scales, and proposing measures for uniformity and improvement, reviewing admissible regular allowances, special incentives, and all other supplementary pay scales.
The panel was tasked with identifying current shortcomings in the Pension Scheme and making recommendations for a corrective revision along with ensuring the current model’s long-term viability and recommending a system with clear timelines that is more efficient and sustainable given the available resources.
During the trading session on Monday, the Pakistani rupee (PKR) maintained its declining trend, touching Rs194, its worst rate versus the US dollar. At the interbank, the greenback strengthened by Rs1.47 during the trading hours.
The General Secretary of the Exchange Companies Association of Pakistan, Zafar Paracha said that the greenback climbed by Rs11.07 since the new government took government, while debt has increased by Rs1,400 billion due to the disparity.
Pakistani currency lost 3.1 per cent of its value against the US dollar in the previous week in the interbank market, with Pakistan’s currency hitting new record lows to end the week at Rs192.53, its worst closing in history.
The local currency fell in value across the board as concerns about the economy, declining foreign currency reserves, and worsening trade imbalance intensified. Concerns over the International Monetary Fund (IMF) programme have also caused fear and speculation in the market.
Official documents revealed that several members of Pakistan Tehreek-e-federal Insaf’s cabinet enjoyed gains in their fortunes during their term in parliament and as ministers, despite being elected on pledges of fighting corruption.
According toSAMAA TV, Shah Mehmood Qureshi and Sheikh Rasheed Ahmad, Omar Ayub Khan, Azam Khan Swati, Khusro Bakhtiar, Faisal Vawda, Shafqat Mehmood, Fehmida Mirza, Zubaida Jalal, Mahboob Sultan, and Tariq Cheema are among the listed former ministers.
Since select ministers received notices to explain their excessive wealth, the majority blamed weak wealth and asset declaration regulations, which did not contribute to increases in the valuation of assets overtime or the amalgamation of entities.
An inquiry into assets spontaneously declared before the Election Commission of Pakistan (ECP) and Pakistan’s tax authorities — primarily the Federal Board of Revenue (FBR) — by cabinet members who worked under former Prime Minister Imran Khan disclosed that plenty of of them saw a tremendous upsurge in their riches, with growth proportions primarily in the triple digits.
As per the official record, the ECP sent notices to at least six former ministers while they were still in government in 2019 and 2020, requesting them to clarify their wealth-related issues.
From 2014 to 2019, former foreign minister Shah Mahmood Qureshi, who has been a staple of the parliament for more than a decade and served twice in the federal cabinet in two different governments, had a 241 per cent growth in his wealth.
He and his wife held assets worth only Rs72.5 million in 2014, according to asset declarations he submitted to the ECP and the FBR. In the following three years, his assets nearly quadrupled, reaching Rs278.3 million, a 283.86 per cent increase over his wealth in 2014. Qureshi’s fortune dropped dramatically to Rs184.2 million in 2018, the year he returned to the Treasury benches, albeit with a new party, the PTI. However, while in power, it soon increased to Rs247.1 million in 2019, a rise of 240.82 per cent since 2014.
When questioned, Qureshi recounted how the worth of his assets had evolved over the years.
“The reason for the increase in assets was that during 2015-16, my wife received her share from the sale of property situated in Lahore, which had been gifted by her mother, and shares from sale proceeds of inherited property worth Rs169.6 million and Rs22.6 million,” he claimed. In October 2017, duplicates of sale deeds were handed to the ECP, according to the former minister.
“The ECP raised this observation too,” he said regarding the increase in his wealth, adding, “I and my dependent family members are all filers with the FBR”.
Sheikh Rashid, the former interior minister, watched his fortune increase by nearly 278.68 per cent between 2014 and 2019.
The financial disclosures for 2014 revealed that he only had Rs39.4 million in assets. Earnings climbed by Rs0.4 million to Rs39.8 million. His holdings steadily expanded over the next two years, reaching Rs44.7 million in 2016 and Rs46.7 million in 2017.
Conversely, in 2018, the time he was elected to power, his assets boosted by Rs100 million to Rs149.2 million. In 2019, there was no movement in reported assets. After inquired why his assets had suddenly changed, Rashid said that the discrepancy was due to an advance payment he had obtained for reselling a portion of land in 2018.
“I received Rs100 million as advance after making a deal of land to be sold last year, [2021],” he said, adding, “There is no such increase in my assets”. The former interior minister stated that the rise in his declarations submitted with the FBR and the ECP had been properly disclosed.
Between 2014 and 2019, the fortune of former federal minister of water Omar Ayub and his wife jumped by 203 per cent.
As per Ayub’s filings to the ECP and FBR in 2014, he and his wife held assets worth Rs461.8 million. This comprised Rs132 million in assets held by his wife and Rs329 million in assets owned by the minister. This value had risen to Rs1.4 billion by 2019. Surprisingly, while his wife’s holdings increased slightly to Rs201 million, Ayub’s assets increased to Rs1.2 billion. Each has debts worth only Rs26.3 million, according to the disclosures.
As a result, the ECP expressed concerns about Ayub’s and his family’s unexpected surge in wealth.
“It was explained to the ECP in 2019 that it [increase in wealth] is because of group formation having no cash involvement,” Ayub said, confirming that the top poll body had issued him a notice on this subject. Ayub claimed that he owned shares in Nova Synpac Ltd. and NovaGene Pharmaceuticals Ltd., which increased in value by approximately Rs1.071 billion.
“My assets have decreased (excluding this group formation) since I took an oath as a minister because I resigned from my group,” he claimed, adding that the increase was due to the consolidation of all of his businesses under the group.
“This cannot be reflected in a declaration, which is always a reflection of statements submitted to the FBR and there cannot be any difference [between them] otherwise it would have been challenged there,” he explained.
Azam Swati, the former federal railways minister, saw his fortune grow by 202 per cent from Rs823.2 million in 2015 to about Rs2.04 billion in 2019. He reported that his liabilities increased from Rs417 million in 2015 to Rs811 million in 2019.
“[Your] figures are wrong due to incomplete information being furnished before ECP by members and cabinet members owing to faulty legal requirements mentioned in ECP Act 2017,” he explained.
He further said that his situation was slightly unusual. “In Pakistan, I have no income and no business.” I am confident that our FBR wealth statement [filed] will be compared to ECP in 2019 [asset declarations],” he remarked, worried that the statistics may contain a few errors.
“ECP has no efficiency and capability to audit assets and liabilities,” he disclosed, adding, “We were making mistakes filing combined [wife and husband together]”.
“Now we have corrected the mistake and filed separately because the wife is not dependent,” Swati told SAMAA TV.
Khusro Bakhtiar, the former federal commerce minister, saw his fortune rise by 127.8% from Rs109.3 million in 2013 to Rs249 million in 2019. In 2014, he had assets of Rs130 million, which more than doubled to Rs278 million in 2015, shrank to just Rs196 million in 2016, and then surged again in the next three years.
“Increase in assets were mainly comprised of [various] sources during the year 2014 to 2019,” he told SAMAA TV, detailing that these sources included savings from agricultural income, proceeds from the sale of land worth Rs40 million, other sources which contributed Rs20 million.
Bakhtiar also claimed that he actually paid Rs27.5 million in agricultural taxes from 2017 to 2020, and that he owed Rs60 million in 2016.
Former federal minister for education Shafqat Mahmood and his family had a 308 per cent growth in asset valuation between 2013 and 2019, making them one of the most successful federal ministers in terms of percentage increases. According to Mehmood’s filings, his and his family’s assets were valued at just Rs37 million in 2013, but had grown to Rs151 million by 2019.
“My assets have not changed since 2013 onwards,” Mehmood asserted, explaining “The change that you see is the cost re-evaluation from purchase price to market price”. The ex-minister further said that he has 360 kanals of hereditary land, a few more plots, and automobiles that he never assessed.
“There will, of course, be some variation regarding bank accounts. There will also be a slight difference in detail offered to FBR and ECP with regards to bank accounts,” he maintained. He went on to say that in his previous disclosure, he had combined the amounts in all of his bank accounts to present a single total.
“My wife is a distinct taxpayer because she works, but I have included her assets as well”, he explained.
Fehmida Mirza, the former federal minister for interprovincial coordination, had a similar scenario, with her net worth rising from Rs65 million in 2013 to Rs164 million in 2019.
“I did not see any rise in my assets and wealth at all,” she told SAMAA TV. She did, although, reveal that she had sold some property in Pakistan in order to purchase a home in the United Kingdom.
“This new increase in my assets has already been declared with the FBR and the ECP,” she stated.
Contrary to the PTI’s cabinet’s millionaire members, one of the “weakest” members of the federal cabinet, former federal minister Zubaida Jalal and her husband, had a 1,189 per cent growth in their fortune in a short period of time. Their riches increased from Rs9 million to Rs116 million in 2019.
Jalal, on the other hand, described the quick spike in wealth as the outcome of changes in declaration requirements.
“There is no big difference in my assets’ declaration” she asserted while speaking to SAMAA TV. The value of immovable assets was not mentioned in data provided in past elections, she said, noting that the ECP declaration requirements changed over time.
“[We are] required to mention values of assets in the asset declaration for this time,” she stated. She explained that the variations in asset values were attributable to market forces working on enterprises.
“Ups and downs will keep happening [in mining operations and business],” she said, as she reminded that her husband owns the National Coal Mining Company since the 1960s.
Former state minister Mahboob Sultan was one among the ministers who saw only double-digit asset growth. Only 81 per cent of his assets increased from Rs126 million in 2018 to Rs227.2 million in 2019. It’s worth noting, however, that his growth of nearly Rs100 million occurred while he was in the cabinet of ministers.
Tariq Cheema, the former federal minister for housing and infrastructure, showed the smallest growth in his wealth, going from Rs73 million in 2014 to Rs112 million in 2019. He did not, however, assess the value of his inherited assets and report them to the electoral or tax authorities.
Former federal minister Faisal Vawda and his family witnessed their fortune increase by 25 per cent from Rs507 million in 2017 to Rs630 million in 2019. He was among the most controversial cabinet ministers who were eventually dismissed by the ECP.
Despite multiple requests from SAMAA TV, neither Sultan, Cheema, Vawda, nor an ECP official have commented on inquiries regarding their wealth.
