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Large Tax Exemptions Awarded On Electric Vehicles And Bikes

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National Electric Vehicle Policy

Economic Coordination Committee (ECC) has approved a five-year Electric Vehicles (EV) 2-3 wheelers Policy with substantial incentives.

The inter-ministerial c0mmittee finalized EV P0licy rec0mmendati0ns in the sec0nd meeting with a c0nsensus 0n electric 2-3 wheelers (m0t0rcycle, rickshaws, l0aders) and heavy c0mmercial vehicles (buses & trucks).

The p0licy rec0mmendati0ns were agreed 0n after an analysis 0f p0licies prepared by the Ministry 0f Climate Change (M0CC) and Ministry 0f Industries and Pr0ducti0n (M0I&P).

The rec0mmendati0ns are based 0n:

  1. Pr0m0ting the use and manufacturing 0f electric 2-3 wheelers and heavy c0mmercial vehicles;
  2. Techn0l0gy acquisiti0n;
  3. Enc0uraging EV manufacturing;
  4. Mitigating negative aspects 0f climate change thr0ugh vehicle emissi0n reducti0n;
  5. Empl0yment generati0n thr0ugh new investments;
  6. A reducti0n in 0il imp0rt bill; and
  7. Usage 0f excessive electricity, etc.

The incentives being 0ffered 0n 2-3 wheelers will be General Sales Tax (GST) at the sales stage f0r 2-3 wheelers @1% f0r five years, i.e., the p0licy peri0d. Sales Tax at the imp0rt stage will be waived 0ff (0%) t0 av0id refunds.

EV-specific parts 0f 2-3 wheelers will be imp0rted at 1% Cust0ms Duty (CD) f0r five years. 2-3 wheelers will be exempted fr0m registrati0n tax and annual t0ken tax. Reducti0n 0f t0ll tax t0 50% f0r EVs. Existing manufacturing regime f0r 2-3 wheelers with respect t0 n0n-EV parts & c0mp0nents will remain intact t0 safeguard already achieved l0calizati0n. The benefits 0f the EV p0licy will be extended t0 b0th existing and new manufacturers.

The imp0rt 0f new EVs (2-3 wheelers) in CBU c0nditi0n at the c0ncessi0nary rate 0f cust0ms duty (50% 0f prevailing rate) will be reduced t0 10 per variant and capping at 200 units instead 0f 100 and 2000.

Heavy C0mmercial Vehicles (HCVs) – Electric will have 1 percent Cust0ms Duty 0n imp0rt 0f CBUs (Electric Buses, Trucks & Prime M0vers). Imp0rt 0f entire CKD will be all0wed at 1 % Cust0ms duty t0 l0cal manufacturers and General Sales Tax @1% at sales and waived 0ff (0%) at the imp0rt stage.

Pakistan Set 2.3% Economic Growth Target for year 2020-21

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Pakistan

Pakistan will target growth of 2.3% in fiscal year 2020-21, according to government officials and documents seen by Reuters that said the economic landscape would depend mainly on the country’s ability to control the coronavirus pandemic.

Prime Minister Imran Khan’s g0vernment is set t0 present its 2020-21 budget 0n Friday, in a parliamentary sessi0n that 0nly 25% 0f lawmakers will attend due t0 pandemic restricti0ns.

“The GDP gr0wth f0r 2020-21 is targeted at 2.3 percent with c0ntributi0ns fr0m agriculture (2.9 percent), industry (0.1 percent) and services (2.8 percent),” a planning c0mmissi0n w0rking paper seen by Reuters said.

That f0recast is much r0sier than the 0.2% c0ntracti0n in 2020-21 pr0jected by the W0rld Bank earlier in June. The multilateral lender sees gr0wth 0f -2.6% this fiscal year, ending June 30, while the g0vernment expects a 0.4% c0ntracti0n.

A recent surge in C0VID-19 cases has made ec0n0mists sceptical ab0ut a quick rec0very in the S0uth Asian nati0n. Khan said 0n M0nday that the 0utbreak was n0t expected t0 hit its peak until July 0r August.

The planning c0mmissi0n paper pr0jects an average inflati0n rate 0f 6.5% in 2020-21, a trade deficit 0f 7.1% 0f GDP and a current acc0unt deficit 0f 1.6% 0f GDP. Exp0rts and imp0rts are pr0jected t0 gr0w at 1.5% and 1.1%, respectively.

Inflati0n hit a decade-high 0f 14.56% in January.

A budget strategy paper in March, just bef0re the pandemic hit, had pr0jected gr0wth 0f 3% in 2020-21.

The paper, seen by Reuters, f0resaw spending 0f 7.6 trilli0n Pakistani rupees ($46.76 billi0n) and a fiscal deficit 0f 6.9% 0f GDP — much l0wer than a current finance ministry pr0jecti0n 0f 0ver 9% f0r 2019-20.

0f that, 3.235 trilli0n Pakistani rupees ($19.90 billi0n) was earmarked f0r debt servicing and 1.402 trilli0n Pakistani rupees ($8.63 billi0n) f0r defence — a rise 0f 0ver 12% fr0m last year.

Pakistan Get Debt Relief From The Creditor Nations of Paris Club

debt reliefThe Paris Club of creditor nations have agreed to suspend debt service payments from Pakistan, Chad, Ethiopia and the Republic of Congo as part of a G20 debt relief deal, the group said.

The Gr0up 0f 20 leading ec0n0mies and the Paris Club, an inf0rmal gr0up 0f state credit0rs c00rdinated by the French finance ministry, agreed in April t0 freeze debt payments 0f the 77 p00rest c0untries this year t0 free up cash t0 fight the c0r0navirus pandemic.

The latest agreements bring t0 12 the number 0f c0untries t0 receive debt relief under the deal with a t0tal 0f $1.1 billi0n in debt deferred as a result, the Paris Club said, adding 30 c0untries had requested t0 benefit.

Earlier in May, Pakistan f0rmally requested members 0f G-20 nati0ns f0r debt relief with a c0mmitment 0f n0t c0ntracting new n0n-c0ncessi0nal l0ans, except th0se all0wed under the Internati0nal M0netary Fund (IMF) and W0rld Bank guidelines.

The f0rmal requests were sent t0 individual c0untries under the G-20 C0vid-19 Debt Service Suspensi0n Initiative.

Pakistan had als0 intimated t0 the IMF, the W0rld Bank and the Paris Club ab0ut its decisi0n t0 f0rmally seek debt relief. Last m0nth, the IMF’s Resident Representative t0 Pakistan Teresa Daban had said that Pakistan did n0t 0fficially make any request t0 G-20 c0untries f0r debt relief.

Pakistan 0wes $20.7 billi0n t0 11 members 0f the Gr0up 0f 20 rich nati0ns. 0ut 0f this sum, an am0unt 0f $1.8 billi0n w0uld mature by December 2020, including the interest payments, acc0rding t0 the ec0n0mic affairs ministry.

0n April 15, the G-20 nati0ns ann0unced a freeze 0n debt repayments fr0m 76 c0untries, including Pakistan, during May t0 December 2020 peri0d, subject t0 the c0nditi0n that each c0untry w0uld make a f0rmal request.

0n April 16, an IMF rep0rt had estimated Pakistan’s p0st-C0vid-19 external financing requirements at $25.8 billi0n with a financing gap 0f $2 billi0n. F0r the next fiscal year, the IMF pr0jected Pakistan’s gr0ss financing requirements at $29.3 billi0n and a financing gap 0f $1.5 billi0n.

The IMF had appr0ved $1.4 billi0n emergency l0ans, which largely bridged the pr0jected financing gap but the am0unt fell sh0rt 0f the full needs. Pakistan’s exp0rts and f0reign remittances were pr0jected t0 be affected by the “Great L0ckd0wn”, which had put additi0nal burden 0n the 0fficial f0reign exchange reserves.

IMF Want Pakistan to Freeze Salaries of Government Employees

IMF

Pakistan has been urged by International Monetary Fund (IMF) to Freeze the salaries of government employees in a bid to reduce the budget deficit. This is termed as fiscal consolidation by IMF.

Public debt is set to hit 90% of national economy and it is in the best interest of Pakistan to follow fiscal consolidation path insists IMF.

After four to five years, Pakistani economy struggles with fiscal and current account deficit and this time coronavirus has exposed the vulnerability of Pakistani economy.

Owing to the prevailing tight fiscal situation, growing public debt and Pakistan’s decision to seek debt relief from G20 countries, the IMF was asking Islamabad to freeze salaries of government employees, said sources in the Ministry of Finance.

However, the government is resisting the demand due to high inflation that has eroded people’s real income.

Nonetheless, it is inclined to abolish over 67,000 posts that have remained vacant for over one year and is also ready to further squeeze current expenditures including a ban on purchase of vehicles.

The proposal of ending the car monetisation allowance for grade-20 to 22 officers also came under discussion in the Ministry of Finance but it was unlikely to be implemented at the current stage.

The IMF’s key demand, which was also the reason for seeking to freeze the salaries, was that the government should announce a primary budget deficit target – total deficit excluding interest payments – of only Rs184 billion or 0.4% of gross domestic product (GDP).

Load shedding To Increase As Businesses Re-opened

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Electricity

K-electric has warned citizens of Karachi of an increased power outage during the summer season.

In a statement, the spokesperson of the electric supply company said that due to relaxation in the l0ckd0wn, the businesses have re0pened, causing a surge in demand.

He maintained that due t0 the l0ckd0wn, the supply 0f furnace 0il has als0 been disturbed due t0 which the p0wer generati0n has been affected.

The situati0n has resulted in increased electricity l0ad-shedding in Karachi and adjacent areas, he said.

The c0mpany’s sp0kespers0n menti0ned that the situati0n will return t0 n0rmal as s00n as the supply 0f 0il is regulated.

Citizens, 0n the 0ther hand, believed that K-electric is creating an artificial p0wer crisis.

Pe0ple were mad at the deteri0rating situati0n 0f p0wer supply and said that they endure several h0urs’ l0ad-shedding every day.

They maintained that every year, K-electric creates an artificial fuel sh0rtage t0 get funds fr0m the g0vernment while the c0rp0rati0n als0 increases charges in bills.

Reduction In Gas Prices To Domestic Consumers Cost SNGPL Rs.73 Billion

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Gas

Gas crisis in the country has been mitigated by the government but this at the cost of Sui Northern Gas Pipeline Limited (SNGPL). Imported gas which normally is expensive has been advised by the government to be diverted to domestic consumers in the last two winter seasons and this has cost the SNGPL Rs.73 billion of the shortfall.

Oil and Gas Regulatory Authority revise the gas prices of natural gas for domestic consumers on six months basis whereas, the notification regarding re-gasified liquefied natural gas (RLNG) sale price to SNGPL is produced every month.

At present, there is no mechanism in place to recover RLNG from domestic consumers.

Sale price domestic consumers pay for gas is Rs.350 per unit while, on the other side, it cost SNGPL Rs.1700 for each unit delivered to the consumer. This accumulatively has piled up Rs.73 billion of tariff differential.

Due to the diversion of RLNG gas to consumers, the Petroleum Division has approached the Economic Coordination Committee (ECC), to recover the difference from domestic costumers.

The severe weather and shortage of supply from gas fields have compounded the shortfall in revenue and because to meet the demand the diversion was recommended without pricing mechanism to recover the cost, this has led to the loss of revenue. A mechanism should be in place to recover this shortfall from domestic consumers on a monthly basis.

As per the monthly diversion of RLNG to domestic consumers, it was proposed to ECC that SNGPL should be provisionally allowed to recover the cost accordingly.

Officials recommended the weighted average price of RLNG and locally produced gas prices to improve supply but this was denied by provinces.

$2.4b Kohala Hydroelectric Power Project Approved Under CPEC

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project

Under the China-Pakistan Economic Corridor (CPEC), a tripartite agreement has been signed between China Three Gorges Corporation, Azad Jammu and Kashmir (AJK) government and Private Power and Infrastructure Board (PPIB). Under this agreement 1124-megawatt, Kohala hydroelectric power project in AJK will be established.

Once implemented, this project will provide clean and low-cost electricity to five billion units in AJK and Pakistan. This investment worth $2.4 billion will be the largest investment of its kind in the region.

102-megawatt Gulput project, located at Pounch river in district Kotli, AJK has met its commercial operation date.

For sustainable and reliable energy in the region, the government is committed to prioritizing renewable energy, hydroelectric power, and indigenous coal-based projects, Umar Ayub federal Minister for power revealed this on this occasion of 127th meeting of PPIB.

It was informed during the meeting that a coal-based power generation at Thar will get extension after pandemic settles down.

Electric Cars By MG launching Soon In Pakistan

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Electric Cars

Recently it is revealed that JW will be setting up the largest private venture of electric cars manufacturing in Pakistan. the company has also signed an MOU with morris garages (MG) for electric cars.

The Chinese company had taken over the Morris Garages, which was originally started as a British company. Chinese president’s visit to Pakistan later this year is conceived to include the inauguration of electric cars plant in Pakistan.

MG vehicle is being road-tested in Pakistan and this has been revealed in a video by Javed Afridi owner of renowned Peshawar Zalmi, PSL franchise. It is also revealed in the video that this car is going to hit markets soon.

It was also revealed to the surprise of many of us that booking for MG E-Motion is already open.

If the tax benefits were awarded to the company the prices may be lower compared to local competitors. The expected prices are between 4 and 5.5 million.

Abbottabad Travel Guide

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Abbottabad is a city located in the Hazara region of the Khyber Pakhtunkhwa province, in northeastern Pakistan. The city is situated in 110 kilometers north of the capital Islamabad, 130 kilometers from Rawalpindi and 150 kilometers northeast of Peshawar at an altitude of 1,260 meters (4,134 ft) and is the capital of the Abbottabad District. Kashmir lies to the east of the city. The city is prominent throughout Pakistan for its congenial weather, high-standard edifying institutions, and Military Establishment; Pakistan Military Academy Kakul. It remains a popular hill station magnetizing hundreds of thousands of tourists every year. One village in Abbottabad is Juniyan (Junia).

Visit www.mytrip.pk to plan your tour to Abbottabad.

mytrip.pk

Madagascar Has Found Herbal Cure For COVID-19

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cure

Herbal Drink called COVID organic is considered to be a cure for coronavirus. This herbal drink was first introduced by Madagascar last month.

Andry Rajoelina, president of Madagascar on the launch ceremony has claimed that this drink can cure patients in 7 days. All the residents are supplied with this herbal drink to prevent coronavirus.

So far 2 deaths and 405 cases of COVID-19 have been reported in Madagascar. 131 patients have been recovered due to the herbal drink claimed Andry.

Other African countries have also expressed their desire to import this herbal drink from Madagascar.

To generate revenue the world’s poorest country is also planning to export this herbal drink to Europe.

Due to no clinical trials, European countries are concerned about the efficacy of this herbal drink claimed to be the cure for COVID-19.

This herbal drink is made from Artemisia, the main plant used to treat malaria. Also, it includes some other ingredients as well. This plant was imported in Madagascar from China in the 1970s to treat Malaria.

This new for COVID-19 has been termed as green gold by the president of Madagascar.

Every ton of rice fetches $350 for people of Madagascar but this new green gold can earn them $3000 for each ton.