Devil Soul
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Railways, PIA, PSM losses equivalent to defence budget
May 14, 2012 |
LAHORE - SALMAN ABDUHU - The annual losses of only three public enterprises namely Railways, PIA and Pakistan Steel Mills aggregate to a total amount equivalent to funds allocated for defence of Pakistan, financial experts said.
They suggested the government that all public enterprises should be vested with financial autonomy with no burden of their losses on the federal budget of Pakistan. This will off-load around Rs625 billion losses which at present, the budget is absorbing, they added.
They said that provincial governments were given substantial amounts under the 7th NFC Award. In fact, a sum of Rs1.2 billion was projected for distribution in the Federal budget 2011-12.
The provinces should be logistically helped in excellent fiscal management. They must raise new taxes within their provinces and must respond to the golden rule of public finance namely; generating revenue surplus to meet their ADP needs without asking federal government for any allocation of grant or assistance, stated Dr Khawaja Amjad Saeed, noted economist and professor emeritus. Talking to The Nation on the upcoming budget, he said that good governance should be ruthlessly implemented and all unethical practices should be eradicated in all walks of life, irrespective of the status of the persons. Government employees and pensioners may be given appropriate rise in their emoluments to protect their wage basket against inflationary impact, he added.
He observed that projection for the employment generating activities may also be released. Instead of executing Collective Bargaining Agreement (CBA), the role may be redefined by switching to Productivity Sharing Agreements (PSAs) so that the raise in salaries and wages of the workers is self-financing and non-inflationary.
Khawaja Amjad Saeed, who is the founder principal of Hailey College of Banking & Finance, said that a serious note should be taken by the government and regulatory agencies for restructuring financial sector of Pakistan by substantially reducing non-performing loans. These ought to be restricted to 4pc of loan portfolio to ensure a sound financial structure.
The role of Professional Accountants in general and that of Cost and Management Accountants in particular should be duly recognised and they should be associated in strengthening frontiers of Financial Management in Pakistan. Appropriate legal and other logistically supported actions be undertaken in this respect.
Economic strategy with a breakthrough approach in agriculture, industry (with special emphasis on mineral development) and services sector be developed for ensuring prosperity across the board in Pakistan through poverty alleviation, promotion of employment opportunities, ensuring high standard of living and going beyond meeting the basic needs of common man.
He said that government must come out with a socio-economic package for reviving the economy of the country to accelerate the pace of socio-economic development so that the private sector continues to play its positive and productive role and the SMEs ought to be given priority No. 1 to pave the way for Entrepreneurial Revolution through financial cushioning.
A congenial, attractive and motivational environment is the crying need of the hour as a challenge to the present democratic government so that they can incentivise our expatriates to divert their investment in Pakistan, he added. He said that domestic resources mobilisation should be accelerated to ensure that we produce a surplus in the revenue budget for 2012-13. This ought to meet the three components of revenue expenditure namely; debt servicing, cost of running the government and defence.
The consequential surplus generated in the forthcoming budget should be made available for financing Annual Development Plan of Pakistan for 2012-13, he added. He said that for accelerating domestic resources mobilisation, the golden principle of Public Finance should be followed. This includes taxation of income for all above the threshold prescribed by the Parliament of Pakistan. At present the threshold for subjecting income to income tax is Rs 350,000 per annum. Irrespective of cast and creed or sources of income, everybody ought to be included in the taxable limit and subjected to income tax. ADP of Pakistan for 2012-13 should have most minimum reliance on external assistance and bank borrowing. It should be financed out of domestic resource mobilisation which should be accelerated through single item agenda of quantum jump in domestic resource mobilisation. A courageous step is the need of the hour and democratic government will be strengthened if this suggestion is accepted for implementation. This bold step will ensure financial defence of Pakistan.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/14-May-2012/railways-pia-psm-losses-equivalent-to-defence-budget
May 14, 2012 |
LAHORE - SALMAN ABDUHU - The annual losses of only three public enterprises namely Railways, PIA and Pakistan Steel Mills aggregate to a total amount equivalent to funds allocated for defence of Pakistan, financial experts said.
They suggested the government that all public enterprises should be vested with financial autonomy with no burden of their losses on the federal budget of Pakistan. This will off-load around Rs625 billion losses which at present, the budget is absorbing, they added.
They said that provincial governments were given substantial amounts under the 7th NFC Award. In fact, a sum of Rs1.2 billion was projected for distribution in the Federal budget 2011-12.
The provinces should be logistically helped in excellent fiscal management. They must raise new taxes within their provinces and must respond to the golden rule of public finance namely; generating revenue surplus to meet their ADP needs without asking federal government for any allocation of grant or assistance, stated Dr Khawaja Amjad Saeed, noted economist and professor emeritus. Talking to The Nation on the upcoming budget, he said that good governance should be ruthlessly implemented and all unethical practices should be eradicated in all walks of life, irrespective of the status of the persons. Government employees and pensioners may be given appropriate rise in their emoluments to protect their wage basket against inflationary impact, he added.
He observed that projection for the employment generating activities may also be released. Instead of executing Collective Bargaining Agreement (CBA), the role may be redefined by switching to Productivity Sharing Agreements (PSAs) so that the raise in salaries and wages of the workers is self-financing and non-inflationary.
Khawaja Amjad Saeed, who is the founder principal of Hailey College of Banking & Finance, said that a serious note should be taken by the government and regulatory agencies for restructuring financial sector of Pakistan by substantially reducing non-performing loans. These ought to be restricted to 4pc of loan portfolio to ensure a sound financial structure.
The role of Professional Accountants in general and that of Cost and Management Accountants in particular should be duly recognised and they should be associated in strengthening frontiers of Financial Management in Pakistan. Appropriate legal and other logistically supported actions be undertaken in this respect.
Economic strategy with a breakthrough approach in agriculture, industry (with special emphasis on mineral development) and services sector be developed for ensuring prosperity across the board in Pakistan through poverty alleviation, promotion of employment opportunities, ensuring high standard of living and going beyond meeting the basic needs of common man.
He said that government must come out with a socio-economic package for reviving the economy of the country to accelerate the pace of socio-economic development so that the private sector continues to play its positive and productive role and the SMEs ought to be given priority No. 1 to pave the way for Entrepreneurial Revolution through financial cushioning.
A congenial, attractive and motivational environment is the crying need of the hour as a challenge to the present democratic government so that they can incentivise our expatriates to divert their investment in Pakistan, he added. He said that domestic resources mobilisation should be accelerated to ensure that we produce a surplus in the revenue budget for 2012-13. This ought to meet the three components of revenue expenditure namely; debt servicing, cost of running the government and defence.
The consequential surplus generated in the forthcoming budget should be made available for financing Annual Development Plan of Pakistan for 2012-13, he added. He said that for accelerating domestic resources mobilisation, the golden principle of Public Finance should be followed. This includes taxation of income for all above the threshold prescribed by the Parliament of Pakistan. At present the threshold for subjecting income to income tax is Rs 350,000 per annum. Irrespective of cast and creed or sources of income, everybody ought to be included in the taxable limit and subjected to income tax. ADP of Pakistan for 2012-13 should have most minimum reliance on external assistance and bank borrowing. It should be financed out of domestic resource mobilisation which should be accelerated through single item agenda of quantum jump in domestic resource mobilisation. A courageous step is the need of the hour and democratic government will be strengthened if this suggestion is accepted for implementation. This bold step will ensure financial defence of Pakistan.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/14-May-2012/railways-pia-psm-losses-equivalent-to-defence-budget
