Economic and Business Updates - From 6th to 12th June, 2011

• SINDH Assembly unanimously passes the Thar Coal and Energy Board Bill, 2011 into law aimed at utilising huge coal reserves to meet the country’s soaring energy demand and attracting foreign investment in coal mining and power generation projects in the province.

• OWING to rising public sector development constraints, the government decides to constitute a 10member high-level interagency forum to pursue implementation of major infrastructure projects by the private sector, particularly involving international firms, to reduce delays and cost overruns.

• THE Audit Report 2010-11 on the accounts of Water and Power Development Authority shows that only four power supplying companies Gepco, Fesco, Iesco and Lesco — are making profits while other 10 companies incurring losses.

• THE net revenue effect of the taxation and administrative measures will be around Rs23 billion during the fiscal year 2011-12.

• THE federal cabinet directs the finance ministry to withdraw free electricity facility to about 176,000 employees of Wapda/Pepco, a longstanding demand of the lawmakers.

• CHINA’S Three Gorges Project Corporation has proposed a $15 billion hydropower scheme to Pakistan to dam the Indus river valley at several points in a project aimed at controlling floods and tackling electricity shortages, reports Financial Times.

• THE Sindh Assembly unanimously passes into law the Sindh Sales Tax on Services Bill, 2011, enabling the provincial government o levy and collect sales tax on services from July 1.

• FBR Chairman Salman Siddique admits that tax evasion hit 79 per cent in current fiscal year and says it will have to be reduced to achieve the revenue target set for 2011-12.

• THE board of directors of the Karachi Stock Exchange decides to allow individuals to lend in Margin Trading System with 10 per cent tax rate as full and final.

• THE 200-page Flood Inquiry Commission report discloses that the country suffers a loss of Rs855 billion, which is 5.8 per cent of GDP in 2010-11.

• THE government decides to change the composition of the Planning Commission and will induct as members one nominee of each province to formulate national plans in line with their provincial development and planning priorities.

• THE federal cabinet allows the finance ministry to set up independent commissions to analyse expenditures and removal of disparity in allowance structure.

• AUDITOR General of Pakistan detects irregularities, embezzlements and mismanagement of Rs3.16 billion in Post Office Department.