Explanatory Memorandum on Federal Receipts 2019-20
The Explanatory Memorandum on Federal Receipts 2019-20 is part of the federal budget for FY 2019-20. This page reproduces the text of its 72 PDF pages, extracted automatically from the official PDF published by the Finance Division, Government of Pakistan.
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Page 1
FEDERAL BUDGET 2019-20
EXPLANATORY MEMORANDUM
ON
FEDERAL RECEIPTS
Government of Pakistan
Finance Division
IslamabadPage 2
ii
P R E F A C E
The Annual Budget Statement containing estimated Receipts and Expenditures for
Financial Year 2019-20 is being tabled in the National Assembly of Pakistan and transmitted
to the Senate of Pakistan as required under Article 80(1) and 73(1) of the Constitution of
Islamic Republic of Pakistan.
The “Explanatory Memorandum on Federal Receipts” is being tabled along with
the Annual Budget Statement, as additional information, in order to help the readers to
understand the details of the receipts included in the Statement. In a structured manner, the
major components of Federal resources have been explained, with a view to distinguish
Revenue from Capital receipt and to further categorize Revenue Receipt as Tax and Non-
Tax Receipt. A separate Chapter is introduced on External Resources with brief explanation,
which has been further elaborated in a separate publication titled “Estimates of Foreign
Assistance”. The mechanism for distribution of resources amongst the Provinces is also
included with a brief over view of self-financing of their respective Annual Development
Programmes.
With the aim of helping the readers to form a comprehensive view of the federal
resources that have determined the formulation of the Budget for 2019-20, the nature of
receipts has also been explained, wherever considered appropriate. I hope that this
document would be useful for a comprehensive understanding of the Annual Budget
Statement.
Naveed Kamran Baloch
Secretary to the Government of Pakistan
Finance Division
Islamabad, the 11th June, 2019Page 3
iii
CONTENTS
Page No.
Chapter 1 : Federal Resources at a Glance 1-3
Chapter 2: Revenue Receipts 4-6
Chapter 3: Tax Revenue 7
I. FBR Taxes 7-9
i. Direct Taxes
ii. Sales Tax
iii. Federal Excise Duty
iv. Customs Duty
II. Other Taxes 9-11
i. Gas Infrastructure Development Cess
ii. Natural Gas Development Surcharge
iii. Petroleum Levy
iv. Taxes collected by Islamabad Capital Territory Admn
v. Airport Tax
vi. Other Levies
Chapter 4: Non Tax Revenue 12
I. Income From Property and Enterprise 12-20
i. Profits of Government Authorities
ii. Mark up Receipts
iii. Dividend on Government Investments
II. Receipts from Civil Administration and other Functions 21-26
i. General Administration Receipts
ii. Share of Surplus Profit of State Bank
iii. Defence Services Receipts
iv. Law and Order Receipts
v. Community Services Receipts
vi. Social Services ReceiptsPage 4
iv
III. Miscellaneous Receipts 26-34
i. Economic Services Receipts
ii. Foreign Grants
iii. Citizenship, Naturalization, Passport Fees
iv. Other Receipts
v. Royalty on Oil and Gas
vi. Windfall Levy on Crude Oil
vii. Discount Retained on Local Crude Oil
viii. Windfall Levy against Local Crude Oil
Chapter 5: Provincial Share in Revenue Receipts 35-43
Chapter 6: Capital Receipts 44-52
I. Recoveries of Loans and Advances
II. Public Debt
Chapter 7: Public Account Receipts 53-61
I. Deferred Liabilities
II. Deposits and Reserves
Chapter 8: External Resources 62-63
I. Project Loans and Grants (PSDP & Non-PSDP)
II. Programme Loans
III. Other Loans
Chapter 9: Privatization Proceeds 64
Chapter 10: Development Assistance to Provinces 65-68Page 5
CHAPTER 1: FEDERAL RESOURCES AT A GLANCE 1.1 Resource Mobilization is essential to meet the recurring as well as development expenditure. At Federal level, resources are generated through a well-coordinated and concerted effort by the revenue collecting agencies and other administrative units. The money so raised are properly deposited in the national exchequer, precisely accounted for and accurately reported as per the principles of financial propriety. The constitutional requirements for maintaining the federal receipts are strictly adhered to. Article 78(1) of the Constitution of Islamic Republic of Pakistan provides that all revenues received by the Federal Government, all loans raised by that Government and all moneys received by it in repayment of loan, shall form part of the Federal Consolidated Fund. Article 78(2) further provides that all other moneys received by or on behalf of the Federal Government shall be credited to the Public Account of the Federation. In pursuance thereof, the Federal Receipts are credited to Federal Consolidated Fund as well as the Public Account of Federation. 1.2 Federal Revenue Receipts are broadly categorized as Tax Revenue and Non-Tax Revenue. Federal Board of Revenue (FBR) is the major tax collecting agency as substantial portion of Tax Revenue is administered by it. Tax Revenue collected by FBR constitutes the Divisible Pool Taxes to be distributed amongst the Provinces along with other Straight Transfers in accordance with the provisions of National Finance Commission Award. In addition to FBR Taxes, there are Other Taxes i.e Gas Infrastructure Development Cess, Natural Gas Development Surcharge, Petroleum Levy etc, which are administered by Ministry of Petroleum and Natural Resources. 1.3 Non-Tax Revenue represents the recurring income earned by the Federal Government from sources other than taxes. The major sources are Interest receipts, dividends, profits earned by various regulatory authorities. Moreover, various services provided by the government i.e social services, community services, economic services, defence services etc also yield revenue for the government. 1.4 In addition to Revenue Receipts, there are Capital Receipts reflected in Annual Budget Statement. Capital Receipts comprise Recoveries of loans and advances from
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provincial Governments, local bodies, financial institutions etc as well as Public Debt raised through various government securities. 1.5 Net proceeds of National Saving Schemes and net receipts from transactions under Deposits and Reserves head being Public Account Receipts, form part of Public Account of the Federation. 1.6 External Resources comprise project loans and grants, programme loans and other loans which are received from specialized financial institutions and friendly countries for specific development needs and budgetary requirements. 1.7 Federal Receipts may also be classified as Internal Receipts and External Receipts. Internal Receipts comprise Revenue receipts and Capital receipts. External Receipts comprise project aid, loans and grants. 1.8 Budget Estimates for Fiscal Year 2018-19 and 2019-20 in respect of total Federal Receipts under different heads are given at the next page;
Page 7
TABLE 1
Summary of Federal Resources
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
B 1 Tax Revenue 4,888,645.000 4,393,876.450 5,822,160.300
Receipts
FBR Taxes 4,435,000.000 4,150,000.000 5,555,000.000
Direct Taxes 1,735,000.000 1,659,000.000 2,081,945.000
Indirect Taxes 2,700,000.000 2,491,000.000 3,473,055.000
Other Taxes 453,645.000 243,876.450 267,160.300
C 2 Non Tax Receipts 771,860.203 637,751.290 894,464.066
C01 Income from Property 236,868.547 285,127.338 269,581.681
and Enterprise
C02 Receipts from Civil 305,836.967 170,624.779 430,961.032
Administration
C03 Miscellaneous 229,154.689 181,999.173 193,921.353
Receipts
3 Total Revenue 5,660,505.203 5,031,627.740 6,716,624.366
Receipts (1+2)
E 4 Capital Receipts 559,084.587 953,502.237 766,197.740
E02 Recovery of Loans 152,989.497 159,831.827 183,520.370
and Advances
E03 Domestic Debt 406,095.090 793,670.410 582,677.370
Receipts
5 Total Internal 6,219,589.790 5,985,129.977 7,482,822.106
Receipts (3+4)
6 External Receipts 1,118,023.833 1,403,155.987 3,032,324.587
Loans 1,087,991.217 1,366,475.343 3,003,828.561
Grants 30,032.616 36,680.644 28,496.026
7 Total Internal and 7,337,613.623 7,388,285.964 10,515,146.693
External Receipts
(5+6)
8 Public Account 126,686.176 278,244.365 236,559.593
Receipts
Deferred Liabilities 130,697.470 318,382.230 278,628.080
(Net)
Deposits and (4,011.294) (40,137.865) (42,068.487)
Reserves (Net)
9 Gross Federal 7,464,299.799 7,666,530.329 10,751,706.286
Receipts (7+8)
10 Less Provincial Share 2,590,066.165 2,462,651.204 3,254,525.678
in Federal Taxes
11 Net Federal Receipts 4,874,233.634 5,203,879.125 7,497,180.608Page 8
Chapter 2. REVENUE RECEIPTS
2.1 Revenue Receipts constitute major component of total Federal resources.
Revenue Receipts may be categorized as Tax Revenue Receipts and Non-Tax Revenue
receipts, which are largely derived from the following sources:-
i. Collection of Federal Taxes
ii. Net revenue of the Public Sector Commercial Departments
iii. Mark up on loans advanced by the Federal Government
iv. Return on investments made by the Federal Government
v. Fees, penalties and other Miscellaneous receipts realized by administrative
Ministries and Divisions of the Federal Government
vi. Surcharges, Cess, Levy and Royalty on Petroleum
2.2 TAX REVENUE
2.2.1 The major part of Tax Revenue is administered by the Federal Board of Revenue
(FBR), which comprises Customs Duty and Inland Revenue i.e Direct Taxes, Sales Tax
and Federal Excise Duty. FBR taxes may also be categorized as Direct Taxes and Indirect
Taxes. Direct Taxes comprise Income Tax, Workers Welfare Fund and Capital Value Tax.
Indirect Taxes include Sales Tax, Federal Excise Duty and Customs Duty.
2.2.2 In addition to FBR taxes, there are Other Taxes i.e Gas Infrastructure Development
Cess, Natural Gas Development Surcharge, and Petroleum Levy administered by Ministry
of Petroleum and Natural Resources. Besides, the taxes collected by Islamabad Capital
Territory (ICT) Administration and the Airport Tax administered by Civil Aviation Authority
also constitute Tax Revenue of the Federal Government. Tax Revenue forms part of
Federal Consolidated Fund.
2.3 NON TAX REVENUE
2.3.1 Non-Tax Revenue of the federal government is administered by various Ministries
/Divisions/Departments comprising the following sources:
i. Income from Property and Enterprise
ii. Receipts from Civil Administration and other functions
iii. Miscellaneous ReceiptsPage 9
2.4 Summary of Revenue Receipts for Budget Estimates and Revised Estimates for
Fiscal year 2018-19 and Budget Estimates for Fiscal year 2019-20 are given as under;
TABLE 2
Summary of Revenue Receipts
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
B I. TAX REVENUE 4,888,645.000 4,393,876.450 5,822,160.300
(1+2)
(1) FBR Taxes 4,435,000.000 4,150,000.000 5,555,000.000
B01 Direct Taxes 1,735,000.000 1,659,000.000 2,081,945.000
B011 Taxes on Income 1,709,939.000 1,651,584.000 2,073,000.000
B015 Workers Welfare 18,636.000 4,186.000 5,050.000
Fund
B017-18 Capital Value Tax 6,425.000 3,230.000 3,895.000
Indirect Taxes 2,700,000.000 2,491,000.000 3,473,055.000
B020-22 Customs Duties 735,000.000 735,000.000 1,000,500.000
B023 Sales Tax 1,700,000.000 1,490,000.000 2,107,738.000
B024-25 Federal Excise 265,000.000 266,000.000 364,817.000
(2) Other Taxes 453,645.000 243,876.450 267,160.300
B03083 Gas Infrastructure 100,000.000 25,000.000 30,000.000
Development Cess
B03084 Natural Gas 16,000.000 8,000.000 10,000.000
Development
Surcharge
B03085 Petroleum Levy 300,000.000 203,354.000 216,025.000
B03087 Other Fed Levies 33,000.000 2,000.000 3,000.000
B026-30 Taxes collected by 4,555.000 5,492.450 8,100.300
Islamabad Capital
Territory Admn
B03064 Airport Tax 90.000 30.000 35.000
C II. NON TAX REVENUE 771,860.203 637,751.290 894,464.066
(1+2+3)
C01 (1) Income from 236,868.547 285,127.338 269,581.681
Property and
Enterprise
C01008 PTA (Surplus) 12,787.000 12,787.000 1,000.000
PTA (3G/4G Renew) 6,854.000 66,620.000 52,730.000
C01008 Regulatory 325.000 1,221.044 1,282.263
Authorities
(Surplus/penalties)
C012 Mark up (Provinces) 16,782.132 22,935.164 24,112.110
C013-18 Mark up (PSEs & 123,649.415 120,957.530 124,494.708
Other)
C019 Dividends 76,471.000 60,606.600 65,962.600Page 10
Object Description 2018-19 2018-19 2019-20
Code Budget Revised Budget
C02 (2) Receipt from Civil 305,836.967 170,624.779 430,961.032
Admn and Other
Functions
C021-24 General Admin 5,754.402 4,027.966 4,283.750
C02211 SBP Profit 280,000.000 147,395.000 406,070.000
C025 Defence 15,959.796 14,730.327 15,453.135
C026 Law and Order 1,412.082 1,586.933 2,034.450
C027 Community Services 1,214.097 1,312.157 1,453.672
C028 Social Services 496.584 632.096 665.675
Social Services 1,000.006 940.300 1,000.350
C029
(Miscellaneous)
(3) Miscellaneous 229,154.689 181,999.173 193,921.353
C03
Receipts
C031-35 Economic Services 8,595.657 3,554.778 4,126.537
C036 Foreign Grants 15,902.000 13,738.053 18,794.500
Extraordinary Receipts 34,001.180 26,852.400 30,000.000
C037
(UNO)
Extraordinary Receipts 50,061.594 52.630 56.694
(Others)
Citizenship, 31,000.000 23,000.000 25,000.000
C03897 Naturalization &
Passport Fee
C038 Others 19,252.358 11,906.016 12,710.602
C03905 Royalty on Oil 16,826.110 26,930.860 24,672.550
C03906 Royalty on Gas 36,515.790 51,224.520 51,560.470
Discount Retained on 10,000.000 14,029.464 16,000.000
C03910
Local Crude Price
Windfall Levy against 5,000.000 6,974.000 7,000.000
C03915
Crude Oil
C03917 Petroleum Levy on LPG 2,000.000 3,736.452 4,000.000
Total Revenue (other than FBR) 1,225,505.203 881,627.740 1,161,624.366
Total Revenue (including FBR) 5,660,505.203 5,031,627.740 6,716,624.366
Less Prov share in Federal Taxes 2,590,066.165 2,462,651.204 3,254,525.678
Net Federal Revenue Receipts 3,070,439.038 2,568,976.536 3,462,098.688Page 11
Chapter 3: TAX REVENUE
3.1 FBR TAXES
3.1.1 Tax Revenue collected by Federal Board of Revenue (FBR) comprises Income
Tax, Sales Tax, Federal Excise Duty and Customs Duty. Direct Taxes mainly comprise
Income Tax. Federal Excise Duty, Sales Tax and Customs duty are indirect taxes. The
following table shows the revenue estimates for Fiscal Year 2018-19 (Budget and
Revised) and 2019-20 (Budget);
TABLE 3
Estimates of FBR Taxes
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Tax Head
Head Budget Revised Budget
B01 Direct Taxes 1,735,000.000 1,659,000.000 2,081,945.000
B023 Sales Tax 1,700,000.000 1,490,000.000 2,107,738.000
B024-25 Federal Excise 265,000.000 266,000.000 364,817.000
B020-22 Customs Duties 735,000.000 735,000.000 1,000,500.000
Total 4,435,000.000 4,150,000.000 5,555,000.000
3.1.2 Detailed analysis of head wise FBR taxes are highlighted below:
3.1.3 DIRECT TAXES
3.1.3.1 During the first 10 months of the current financial year i.e. up to 30-04-2019, Direct
Tax collection stood at Rs.1,067.8 billion with growth of 2.6%. Income Tax contributes
around 98% in total direct taxes. The target for FY 2019-20 has been estimated at Rs.
2,081.9 billion, requiring a growth of 25% vis-à-vis R.E 2018-19.
3.1.3.2 Within the direct taxes, Workers Welfare Fund (WWF) is also collected by FBR
and is part of Direct Tax collection. The budget estimates for receipts of WWF for 2019-
20 is Rs. 5.05 billion.
3.1.3.3 The budget and revised estimates for financial years 2018-19 and 2019-20, on
account of Direct Taxes are tabulated hereunder:Page 12
TABLE 4
Direct Taxes
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Tax Head
Head Budget Revised Budget
B011 Income Tax 1,709,939.000 1,651,584.000 2,073,000.000
B015 Workers Welfare Fund 18,636.000 4,186.000 5,050.000
B017-18 Capital Value Tax (CVT) 6,425.000 3,230.000 3,895.000
TOTAL 1,735,000.000 1,659,000.000 2,081,945.000
3.1.4 Indirect Taxes
3.1.4.1 Sales Tax
3.1.4.1.1 During the first 10 months of the current financial year net revenue collection
from Sales Tax (import + domestic) remained at Rs.1,165.3 billion as against Rs. 1,186.6
billion in the corresponding period of the last financial year showing a decrease of 1.8%.
The target for FY 2019-20 is estimated at Rs.2,107.7 billion. The required growth would
be 41% vis-à-vis R.E 2018-19.
TABLE 5
Sales Tax
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Tax Head
Head Budget Revised Budget
B023 Sales Tax (excluding 1,696,872.000 1,487,646.000 2,104,767.000
services)
Sales Tax on Services (ICT) 3,128.000 2,354.000 2,971.000
Total 1,700,000.000 1,490,000.000 2,107,738.000
3.1.4.2 Federal Excise Duty
3.1.4.2.1 During first 10 months of the current financial year net revenue collection from
Federal Excise Duty remained at Rs. 184.0 billion as against Rs. 163.4 billion in the
corresponding period of the last financial year showing a growth of 12.7%. Budget
estimates for fiscal year 2019-20 are projected at Rs.364.8 billion. The required growth
would be 37% vis-à-vis R.E 2018-19.Page 13
3.1.4.3 Customs Duty 3.1.4.3.1 During the first 10 months of FY 2018-19, net Customs Duty collections is Rs.558.9 billion which is 17.4% higher than the duty collected during the corresponding period of FY 2017-18. Budget estimates for fiscal year 2019-20 are projected at Rs. 1,000.5 billion. The required growth would be 36% vis-à-vis R.E 2018-19. 3.2 Other Taxes 3.2.1 Although FBR administers and collects major portion of Federal Tax Revenue, there are Other Tax sources, which are collected by Ministry of Energy (Petroleum Division), Islamabad Capital Territory Administration and Aviation Division as under; 3.2.2 Gas Infrastructure Development Cess (GIDC) 3.2.2.1 Gas Infrastructure Development Cess Act 2015 provides legal framework to levy and collect the Cess from gas consumers other than the domestic sector consumers at the rates as provided in the Second Schedule to this Act. The gas company shall be responsible for billing of cess to gas consumers, its collection and its onward payment to Federal Government in the manner as prescribed by the Federal Government. As per Section 4 of the Act, the cess shall be utilized by the Federal Government for or in connection with infrastructure development of Iran Pakistan Pipeline Project, Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline Project, LNG or other ancillary projects. 3.2.2.2 The major billing companies are 1. Sui Northern Gas Pipelines Limited, 2. Sui Southern Gas Company Limited, 3. Mari Petroleum Company Limited (formerly Mari Gas Company Limited), 4. Pakistan Petroleum Limited, 5. Tullow Pakistan Development Limited, 6. Oil and Gas Development Company Limited. Rates of Cess (Rs./MMBTU) are Rs.300 for Fertilizer Feed, Rs. 200 for Captive Power, Rs.100 for Industry, Rs.100 for KESC/GENCO, Rs.100 for IPPs, Rs.263 for CNG Region-I and Rs.200 for CNG Region- 1 3.2.3 Natural Gas Development Surcharge 3.2.3.1 As per Natural Gas Development Surcharge Ordinance, 1967, every company as mentioned in the Schedule shall collect and pay to the Federal Government a
Page 14
development surcharge equal to the differential margin i.e the amount by which the fixed sale price exceeds the prescribed price, in respect of natural gas sold by it. 3.2.4 Petroleum Development Levy 3.2.4.1 Petroleum Products (Petroleum Development Levy) Ordinance, 1961 as amended from time to time provides imposition of Petroleum Levy. Ex-refinery/import price of oil is added with Inland Freight Equalization Margin (IFEM), Oil Marketing Companies (OMCs) distribution margin and dealer's commission as fixed by Government of Pakistan in Rs/per litre. On this accumulated price of oil, Petroleum Levy is fixed by Government of Pakistan in Rs. per litre from time to time is levied. 3.2.5 Other Levies 3.2.5.1 The Federal Government introduced imposition of new levies through Finance Bill 2018 i.e Mobile Handset Levy, Health Levy on Tobacco etc. in order to collect revenue on sale of luxury items as well as to discourage their use. However, the Parliament approved only Mobile Handset Levy through Finance Act 2018. 3.2.6 Taxes Collected by Islamabad Capital Territory Administration 3.2.6.1 There are a number of taxes which are collected by the ICT Administration. These taxes are categorized as Direct Taxes like Land Revenue, Property Tax and Tax on Professional Trade and Callings and Indirect Taxes such as Provincial Excise, Stamp Duties, Motor Vehicle Tax and Hotel Tax. 3.2.7 Airport Tax 3.2.7.1 Civil Aviation Authority collects Airport Tax from domestic passengers for various services offered at the airports at rates notified by the Government from time to time. The Airline companies charge Airport Tax at the time of preparation of Air Ticket and deposit the same in the Federal treasury. 3.2.8 Budget Estimates 3.2.8.1 Budget and Revised Estimates for Fiscal Year 2018-19 and Budget Estimates for 2019-20 on account of Other Taxes are tabulated hereunder.
Page 15
TABLE 6
Other Taxes
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
(A) Oil & Gas Sector 416,000.000 236,354.000 256,025.000
B03083 Gas Infrastructure Development Cess 100,000.000 25,000.000 30,000.000
B03084 Natural Gas Development Surcharge 16,000.000 8,000.000 10,000.000
B03085 Petroleum Levy 300,000.000 203,354.000 216,025.000
B026-30 (B) Taxes collected by Islamabad 4,555.000 5,492.450 8,100.300
Capital Territory Administration
Direct Taxes 255.000 460.000 525.000
Property Tax (Fees for Registration of 150.000 150.000 160.000
documents)
Land Revenue 100.000 250.000 300.000
Tax on Professional Trade & Callings 5.000 60.000 65.000
Indirect Taxes 4,300.000 5,032.450 7,575.300
Provincial Excise 200.000 100.000 110.000
Stamp Duties 900.000 800.000 1,000.000
Motor Vehicles registration fee 2,950.000 3,890.000 4,000.000
Motor Vehicles Annual Token Tax & 250.000 240.000 2,222.000
etc
Bed Tax on Hotels - 2.450 243.300
(C) Other Federal Levies 33,000.000 2,000.000 3,000.000
Health Levy* 27,000.000 - -
Mobile Handset Levy 6,000.000 2,000.000 3,000.000
(D) Airport Tax (CAA) 90.000 30.000 35.000
Total Other Taxes (A+B+C+D) 453,645.000 243,876.450 267,160.300
*Estimated on the basis of proposal included in Finance Bill 2018, however not approved by
the ParliamentPage 16
CHAPTER 4 NON TAX REVENUE
4.1 Non-Tax Revenue represents the recurring income earned by the Federal
Government from sources other than taxes. The major receipts under this head are
"Interest receipts" (received on loans extended by the Federal Government to provinces,
Public Sector Enterprises etc), dividends received from public sector entities and profits
earned by various regulatory authorities. Various services provided by the government i.e
social services, community services, economic services, defence services etc also yield
revenue for the government. Broadly, Non-Tax Revenue fall under three major heads i.e
Income from Property and Enterprise, receipts from civil administration and other functions
and Misc Receipts of the federal ministries, divisions and departments.
4.2 Summary of Non-Tax Revenue for Budget and Revised Estimates for Fiscal Year
2018-19 and Budget Estimates for Fiscal Year 2019-20 are given below.
TABLE 7
Summary of Non Tax Receipts
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
C01 Income from Property and 236,868.547 285,127.338 269,581.681
Enterprise
C02 Receipts from Civil Admn and 305,836.967 170,624.779 430,961.032
other functions
C03 Miscellaneous Receipts 229,154.689 181,999.173 193,921.353
TOTAL 771,860.203 637,751.290 894,464.066
4.3. Income from Property and Enterprise
Income from Property & Enterprise comprises profits earned by state regulatory
authorities, Mark- up receipts on loans extended to provinces, AJK, Public Sector
Enterprises, Local bodies etc and dividends paid on Federal government's investment in
the share capital of financial institutions and commercial enterprises.
4.3.1 Profits
4.3.1.1 Profits earned by the Regulatory Authorities i.e NEPRA, SECP, PNRA, PEMRA,
OGRA and PTA by way of levy of fees, charges, penalties etc after setting of theirPage 17
authorized expenses is deposited in the Federal Consolidated Fund. Budget Estimates
2018-19, Revised Budget Estimates 2018-19 and Budget Estimates 2019-20 are given as
under;
TABLE 8
Profits
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
C01012 NEPRA 111.000 111.000 90.000
C01012 SECP 27.000 13.000 15.000
C01012 PNRA 2.000 1.754 1.600
C01012 PEMRA 20.000 830.290 944.663
C01012 OGRA 165.000 265.000 231.000
C01008 Total (A) 325.000 1,221.044 1,282.263
PTA Surplus (B) 12,787.000 12,787.000 1,000.000
PTA (4 G) (C) 6,854.000 66,620.000 52,730.000
TOTAL (A+B+C) 19,966.000 80,628.044 55,012.263
4.3.1.2 A brief description of functions and sources of receipts of the above regulatory
authorities is given as under;
4.3.1.2.1 National Electric Power Regulatory Authority (NEPRA) is mandated to
develop and pursue a Regulatory Framework, which ensures the provision of safe,
reliable, efficient and affordable electric power to the electricity consumers of Pakistan, by
facilitating the transition from a protected monopoly service structure to a competitive
environment and maintaining a balance between the interests of the consumers and
service providers in unison with the broad economic and social policy objectives of the
Government of Pakistan. In order to ensure effective regulatory functions, NEPRA charges
different fees at rates notified from time to time for Application & Modification Generation
License Fee, Application & Modification Transmission License Fee, Application &
Modification Distribution License Fee, Application for the Approval of Competitive Bidding.
Besides, NEPRA upfront tariff is also levied like Fees Pertaining to Tariff Standards and
Procedures Regulations 2002 i.e Generation Licensees, Transmission Licensees,
Distribution Licensees, Consumers etc.Page 18
4.3.1.2.2 Securities and Exchange Commission of Pakistan (SECP) is mandated for Regulation of corporate sector and capital market, Supervision and regulation of insurance companies, non-banking finance companies and private pension schemes and Oversight of various external service providers to the corporate and financial sectors, including chartered accountants, credit rating agencies, corporate secretaries, brokers, surveyors etc. As per Sixth Schedule of the Companies Ordinance, different fee/charges are enforced by the SECP on various services e.g Registration of different types of companies, Filing, registering or recording any document, Inspection of documents and register kept by the registrar, Seeking approval of the Commission or the registrar in the following matters etc. On various defaults, additional fees/penalties are also imposed. 4.3.1.2.3 Pakistan Nuclear Regulatory Authority (PNRA) is entrusted with the responsibility to control, regulate and supervise all matters related to nuclear safety and radiation protection in Pakistan. It charges Licensing Fee as approved from time to time from nuclear facilities, radiotherapy and nuclear cardiology centres etc. 4.3.1.2.4 Pakistan Electronic Media Regulatory Authority (PEMRA) is required to improve the standards of information, education and entertainment, to facilitate the devolution of responsibility and power to the grass roots by improving the access of the people to mass media at the local and community level and ensure accountability, transparency and good governance by optimization the free flow of information. PEMRA charges Licensing Fee on prescribed rates for FM Radio, Satellite T.V, MMDS, IPTV, Cable TV, DTH, Landing Rights, Temporary Uplinking and Mobile TV. 4.3.1.2.5 Oil and Gas Regulatory Authority (OGRA) has been set up under the Oil and Gas Regulatory Authority Ordinance dated 28th March 2002 to foster competition, increase private investment and ownership in the midstream and downstream petroleum industry, protect the public interest while respecting individual rights and provide effective and efficient regulations. In order to implement regulatory framework, OGRA issues Licenes to oil marketing companies, gas distribution networks, fertilizer Manufacturing plant etc and charge fees for the services. It also carries out inspections of oil and gas distribution networks and imposes penalties.
Page 19
4.3.1.2.6 Pakistan Telecommunication Authority (PTA) is mandated to regulate the establishment, operation and maintenance of telecommunication systems and provision of telecommunication services in Pakistan, to dispose of applications for the use of radio- frequency spectrum, to promote and protect the interests of users of telecommunication services in Pakistan, to promote the availability of a wide range of high quality, efficient, cost effective and competitive telecommunication services throughout Pakistan, to promote rapid modernization of telecommunication systems and telecommunication services, to investigate and adjudicate on complaints and other claims made against licensees arising out of alleged contraventions of the provisions of the Act, the rules made and licenses issued there under and take action accordingly. PTA receives fees for issuance and renewal of various telecom licenses. It also imposed fines, penalties for violations. 4.3.2 Mark Up Receipts 4.3.2.1 Federal Government advances loans to Provinces, Government of Azad Jammu & Kashmir, Public Sector Enterprises, Local Bodies and others to assist them in carrying out their development programmes and social initiatives. These loans and advances are of two types, namely, Cash Development Loans, and Foreign Relent Loans. The former is advanced by the Federal Government out of its own resources whereas the latter is relent loans. 4.3.2.2 Mark up accrued on the loans granted by the federal government to provincial governments, local bodies, financial institutions, non-financial institutions, commercial departments and government servants is reflected in this section. The mark up is chargeable in accordance with the terms and conditions of each loan agreement. 4.3.2.3 Unless specified otherwise, every loan other than foreign loan advanced by the federal government to the provincial governments is repayable over a period of 25 years. Moratorium of 5 years is allowed on recovery of principal. Simple mark up is realized at a rate yearly determined by the Finance Division, as per actual borrowing cost of the Federal Government.
Page 20
4.3.2.4 Federal Government also advances loans to the Government servants for
building houses and for the purchase of transport etc. These advances are governed by
the rules as specified by Finance Division from time to time.
TABLE 9
Mark Up Receipts
(Provinces)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
Punjab 9,833.579 14,382.548 15,356.450
C012 Mark-up Cash Loans 1,236.294 1,236.296 945.795
Mark-up Foreign Loans 8,597.285 13,146.252 14,410.655
Sindh 5,433.688 6,742.110 6,997.007
Mark-up Cash Loans 1,735.909 1,734.554 1,589.925
Mark-up Foreign Loans 3,697.779 5,007.556 5,407.082
Khyber Pakhtunkhwa 1,045.341 1,207.688 1,225.364
Mark-up Cash Loans - - -
Mark-up Foreign Loans 1,045.341 1,207.688 1,225.364
Balochistan 469.524 602.818 533.289
Mark-up Cash Loans - - -
Mark-up Foreign Loans 469.524 602.818 533.289
Total 16,782.132 22,935.164 24,112.110
Loan-wise Break up
C012 Mark up - Cash Loans 2,972.203 2,970.850 2,535.720
Punjab 1,236.294 1,236.296 945.795
Sindh 1,735.909 1,734.554 1,589.925
Khyber Pakhtunkhwa - - -
Balochistan - - -
Mark Up - Foreign Loans 13,809.929 19,964.314 21,576.390
Punjab 8,597.285 13,146.252 14,410.655
Sindh 3,697.779 5,007.556 5,407.082
Khyber Pakhtoonkhwa 1,045.341 1,207.688 1,225.364
Balochistan 469.524 602.818 533.289
Total - Loans 16,782.132 22,935.164 24,112.110Page 21
TABLE 10
Mark Up Receipts (Local Bodies)
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
C013 Mark Up - Cash Loans 43,877.561 33,987.612 38,711.700
Pakistan Broadcasting Corp 183.176 190.235 179.943
NHA 32,459.224 32,459.224 37,005.526
PIA 6,456.251 473.409 722.413
CDA 1,050.000 350.000 350.000
Pakistan Machine Tool Factory 144.751 63.832 63.832
State Engineering Corporation 23.061 13.259 13.681
Heavy Mechanical Complex Taxila 67.684 34.800 34.800
Lahore Garment City Lahore 620.496 61.882 60.340
Pakistan Engineering Company 2,703.822 169.806 186.856
Printing Corporation of Pakistan 169.096 171.165 94.309
Mark Up - Foreign Loans 31,599.367 36,466.624 35,249.959
GIK Institute 0.867 4.060 2.900
Karachi Port Trust 951.015 1,182.225 1,225.259
PAEC 0.039 0.039 -
Chashma Nuclear Power Plant 13,090.912 13,550.883 13,316.959
SKMT 1.050 1.117 1.087
CDA 17.675 19.810 -
NHA 15,473.590 19,135.060 18,261.592
PPAF 90.207 90.207 80.610
NEPRA 2.147 2.147 2.087
TEVTA 28.909 28.909 25.405
ERRA 1,940.507 1,940.507 1,768.017
OGRA 2.449 2.449 2.380
SSGC - 7.444 1.199
Gwadar Port Authority - 299.490 312.325
SUPARCO - 202.277 250.139
Total - Local Bodies 75,476.928 70,454.236 73,961.659
TABLE 11
Mark Up Receipts
(Financial Institutions)
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C014 Mark up - Foreign Loans 50.038 50.382 45.298
IDBP 50.038 50.382 45.298
Total Mark up
(Financial Institutions) 50.038 50.382 45.298Page 22
Table 12
Mark Up Receipts
(Non-Financial Institutions)
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
Power Sector
C015 Mark-up Cash Loans 22,621.816 13,894.279 13,883.832
WAPDA (water wing) 3,985.933 470.863 595.694
WAPDA (power wing) 9,214.434 9,214.434 9,138.716
TESCO 313.913 21.157 18.882
QESCO 1,175.176 306.808 305.226
MEPCO 702.168 100.753 99.146
GENCO-I 21.797 21.797 18.889
GENCO-II 3,592.577 1,023.973 1,003.799
GENCO-III 814.365 256.767 245.882
GENCO-IV 2.334 2.334 2.036
NTDC 232.404 115.562 115.562
NJHP 2,566.715 2,359.831 2,340.000
GENCOS (LNG) - - -
Mark up-Foreign Loans 23,581.525 28,922.324 26,422.272
WAPDA (Power Wing) 7,409.705 8,412.606 8,340.114
WAPDA (water wing) - 192.084 58.807
TESCO 0.020 0.020 0.020
GENCO-II - - -
GENCO-III - - -
LESCO 553.226 553.226 496.656
NTDC 4,068.799 4,580.476 3,910.367
IESCO 531.658 621.651 552.026
HESCO 447.841 550.827 498.915
PESCO 372.672 420.600 387.130
QESCO 800.682 855.991 810.019
GEPCO 237.306 360.487 338.956
FESCO 395.358 423.853 395.325
MEPCO 755.236 858.660 786.854
PEPCO - 243.898 60.056
NJHP 8,009.022 10,847.945 9,787.027
Total - Power Sector (A) 46,203.341 42,816.603 40,306.104
C015 Autonomous Bodies/Corporations
Mark up Foreign Loans 585.880 588.697 484.784
Pakistan Railways 579.232 582.049 479.200
Karachi Fish Harbour Authority 6.648 6.648 5.584
Total - Autonomous Bodies/Corp (B) 585.880 588.697 484.784
Total Non-Financial Institutions (A+B) 46,789.221 43,405.300 40,790.888Page 23
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
Govt Servants
Cantt/Garrison Educational Institutions 2.002 4.864 5.107
Office of the AGPR, Isb 94.015 99.925 109.918
AGPR sub-office, Lahore 92.146 29.235 58.471
AGPR sub-office, Karachi 18.475 12.417 13.659
AGPR sub-office, Peshawar 4.876 5.747 6.034
AGPR sub-office, Quetta 1.920 1.430 1.490
AGPR sub-office, Gilgit 5.980 15.533 17.086
Defence 5.515 6.000 6.060
Pakistan Post Office Deptt 3.000 4.300 4.700
Pak PWD 3.300 0.993 1.055
Pakistan Mint 0.587 0.649 0.522
CAO (Ministry of Foreign Affairs) 0.944 0.084 0.092
Central Dte of National Savings 4.192 4.736 4.837
Geological Survey of Pakistan 0.810 0.894 1.259
Special Communication Organization - - -
National Tariff Commission - 0.019 0.243
Total Government Servants 237.762 186.826 230.533
C017 AJK & Others
Mark up - Cash Loans 9,857.671 9,857.560 11,453.341
Government of AJ&K 9,857.543 9,857.543 11453.311
PNRA 0.128 0.017 0.030
Mark up - Foreign Loans 166.723 198.499 204.570
Government of AJ&K 160.296 187.282 186.211
Government of GB 6.427 11.217 18.359
Mark up - Other Loans 1,048.672 1,782.327 2,785.919
Guarantee Fee on Foreign Loans 1,048.672 1,782.327 2785.919
(EAD)
Total (AJK & Others) 11,073.066 11,838.386 14,443.830
C018 Commercial Departments
Pakistan Post Office Deptt 22.400 22.400 22.5
Total (Commercial Deptts) 22.400 22.400 22.500
Total Mark up Cash Loans 76,617.210 57,948.677 64,301.906
(PSEs & Others)
Total Mark up Foreign Loans 57,032.205 68,008.853 65,192.802
(PSEs & Others)
Total (PSEs & Others) 133,649.415 125,957.530 129,494.708
Estimated Shortfall 10,000.000 5,000.000 5,000.000
Net Total (PSEs & Others) 123,649.415 120,957.530 124,494.708
Total Provinces 16,782.132 22,935.164 24,112.110
Grand Total (Mark-up) 140,431.547 143,892.694 148,606.818Page 24
4.3.3 Dividend on Government Investments
4.3.3.1 Dividends represent return on federal government's investment in the share
capital of financial institutions and commercial enterprises. The receipt of dividend varies
from year to year depending upon profits earned each year by these bodies and
declaration of dividends on share capital.
4.3.3.2 The details of the estimates are given below:
Table 13
Dividends
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C01901 Financial Institutions (A) 895.000 895.000 895.000
National Investment Trust 300.000 300.000 300.000
NBP 45.000 45.000 45.000
Pak Oman Investment co 250.000 250.000 250.000
Pak Brunie Investment 150.000 150.000 150.000
Pak Iran Joint Investment 150.000 150.000 150.000
C01902 Non-Financial Institutions (B) 75,576.000 59,711.600 65,067.600
Pakistan Petroleum Limited 13,000.000 2,000.000 5,000.000
Mari Gas Company Limited 200.000 50.000 100.000
Pakistan State Oil 1,500.000 400.000 1,000.000
Pak Arab Refinery 10,000.000 7,800.000 8,000.000
SNGPL 1,500.000 1,500.000 1,500.000
SSGCL 500.000 - -
GHPL 12,000.000 5,000.000 5,000.000
OGDCL 25,000.000 35,000.000 35,000.000
PMDC 120.000 88.000 100.000
SLIC 1,300.000 550.000 800.000
NIC 1,500.000 500.000 500.000
Pak Re-Insurance Corporation 550.000 270.000 500.000
Fauji Fertilizer Co.Ltd 100.000 64.000 80.000
Pakistan Services Ltd 6.000 6.000 6.000
PIDC 100.000 50.000 80.000
National Shipping Corp 300.000 173.000 250.000
NESPAK 100.000 50.000 50.000
PTCL 7,500.000 4,750.000 6,300.000
NFC 100.000 100.000 100.000
NTDC - 1,159.000 500.000
Trading Corporation of 200.000 200.000 200.000
Pakistan
Tourism Promotion Services - 1.600 1.600
Total - Dividends (A+B) 76,471.000 60,606.600 65,962.600Page 25
4.4 Receipts from Civil Administration and Other Functions
4.4.1 General Administration Receipts
4.4.1.1 Organs of State
4.4.1.1.1 These receipts are realized on account of fees received from the candidates
appearing in various competitive examinations conducted by Federal Public Service
Commission (FPSC), tuition fees charged by the Pakistan Forest Institute etc. However,
the major portion of receipts under this head come from FPSC. Estimates of receipts on
this account are given below:
TABLE 14
Receipts from Civil Administration - Organs of State
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C021 Organs of State 222.650 434.000 262.500
Federal Public Service Commission 210.000 400.000 225.000
SAFRON (PWD) 5.000 4.000 5.000
Miscellaneous Receipts 7.500 7.000 7.500
SAFRON (Recovery of Payments) 0.150 23.000 25.000
4.4.1.2 Fiscal Administration
4.4.1.2.1 Audit Fees
The department of the Auditor General of Pakistan charges fees from autonomous bodies/
corporations etc, which do not fall within its normal audit jurisdiction, for auditing their
accounts. This fee is deposited in the government account.
4.4.1.2.2 State Bank of Pakistan Receipts
The surplus profit of the State Bank of Pakistan, after making usual provision for reserve
funds and payment of dividend, is transferred to the federal government. The State Bank
also pays dividend on the share capital of the Federal Government. The value of coins
that are minted and put in circulation in one year are also deposited by the State Bank in
Government Account.
4.4.1.2.3 Pakistan Mint Receipts
The Pakistan Mint's receipts are mainly from the disposal of dross & scrap and from
minting of medals for defence services, sports and academic institutions etc.Page 26
4.4.1.2.4 Pension and Gratuity Contribution
These receipts pertain to pension and gratuity contributions by the borrowing departments
in respect of officials serving on deputation basis with them.
The estimates of receipts from fiscal administration are given below:
TABLE 15
General Administration Receipts - Fiscal Administration
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C022 Fiscal Administration 283,237.146 148,539.500 407,291.000
Audit Fee (AGP) 2.500 2.500 3.000
SBP Profit 280,000.000 147,395.000 406,070.000
Currency Dividend from SBP 9.646 2.000 3.000
Pakistan Mint (Assay Account) 50.000 50.000 50.000
Pension Contribution 275.000 735.000 750.000
Penalty imposed by SBP on Banks 800.000 10.000 15.000
Miscellaneous Receipts 2,100.000 345.000 400.000
Profit of National Investment Trust - - -
4.4.1.3 Economic Regulations
4.4.1.3.1 The receipts on this account largely comprise insurance fees realized under
Insurance Act, 1989. The estimates are given below:
TABLE 16
General Administration Receipts - Economic Regulations
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C023 Economic Regulations 1,594.406 1,760.000 1,900.000
Anti Dumping Duties Fee & Tariff 594.406 720.000 750.000
Protection Fee (National Tar Com)
Fees realized under Insurance Act 900.000 950.000 1,050.000
1989 (SECP)
Trade Mark Reg Fee & Other Misc 100.000 90.000 100.000
ReceiptsPage 27
Table 17
General Administration Receipts- Economic Statistics
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C024 General Admn. 700.200 689.466 900.250
Sale of Census Publication 0.200 0.220 0.250
Sale of data 700.000 611.000 800.000
Recovery of unspent from - 78.246 100.000
provinces
Total Gen Admn (Excl SBP) 5,754.402 4,027.966 4,283.750
4.4.2 Defence Services Receipts
4.4.2.1 These receipts are realized mainly on account of dues from civil agencies, sale &
auction of obsolete stores and charges realized on account of use of army aviation
facilities, hospital stoppages roll and receipt of Govt share out of the fees paid by civil
patients treated in Military Hospitals etc.
4.4.2.2 The estimates of defence receipts are given below :
Table 18
Defence Services Receipts
(Rs. in Million)
Object Head
2018-19 2018-19 2019-20
Description Budget Revised Budget
C025 Defence Services 15,959.796 14,730.327 15,453.135
Effective (MOD) 14,745.865 13,460.000 14,125.792
Hospital Stoppage 1,213.931 1,270.327 1,327.343
4.4.3 Law and Order Receipts
4.4.3.1 These receipts represent the proceeds from fines imposed by Insurance Appellate
Tribunals, Federal Service Tribunals, Income Tax Tribunals, Drug Courts and Special
Judges under the administrative control of Law and Justice Division. These also include
fines, fees and recoveries of the Supreme Court of Pakistan, civil armed forces and frontier
watch & ward. The fees realized on account of issuance and renewal of arms licenses by
the Ministry of Interior are also reflected under this classification.
4.4.3.2 The estimates of receipts from law and order are given as under;Page 28
TABLE 19
Law and Order Receipts
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
C026 Law and Order 1,412.082 1,586.933 2,034.450
Supreme Court of Pakistan 5.000 3.000 5.000
Court fee/copying fee & fine 125.000 130.000 149.150
(Justice Law Courts)
Receipts under Arms Act (MOI) 128.080 280.000 300.000
Civil Armed Forces 365.875 368.103 439.450
Receipts of Motor Driving 452.127 460.000 800.000
Licenses & traffic Fines (ICT)
Frontier Regions (SAFRON) 20.000 20.000 20.000
Cost of service/copying fee (Fed 1.000 0.830 0.850
Service Tribunal)
Fines and Penalties 15.000 20.000 20.000
Misc Receipts 300.000 305.000 300.000
4.4.4 Community Services Receipts
4.4.4.1 The receipts under community services comprise rent of government buildings,
land, guest houses, hostels and sale proceeds of material of demolished buildings. These
receipts are realized by Housing and Works Division, Overseas Pakistanis Division,
Kashmir Affairs and Gilgit Baltistan Division, SAFRON and Interior Division (Frontier
Corps). The receipts realized by Survey of Pakistan for its services and supply of maps
are also included here. Details of the estimates are given below:-
TABLE 20
Community Services Receipts
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C027 Community Services 1,214.097 1,312.157 1,453.672
Rent of Govt Buildings realized by PWD 123.000 100.000 100.000
Rent of Govt Buildings realized by Estate 613.400 740.000 850.000
Office
Other Receipts of Pak PWD (incl GRS) 309.510 312.000 338.600
Rent of buildings realized by Frontier 2.734 2.734 3.801
Corps. KPK, Peshawar (Interior Division)Page 29
Object Description 2018-19 2018-19 2019-20
Code Budget Revised Budget
Scientific Research and Survey 37.623 40.000 40.050
(Survey of Pakistan)
Services rendered by Met Department 5.000 9.500 5.000
Building Rent of PAEC 24.000 22.693 20.000
CTTI - Hostel Charges/Fees 4.700 6.196 6.200
Recovery by Office of the AGP 7.730 6.034 6.521
Hostel Rent (AHK & NCRD) 1.400 2.000 3.500
Miscellaneous Receipts 85.000 71.000 80.000
4.4.5 Social Services Receipts
4.4.5.1 The receipts under this head are realized on account of fees charged from students
of the educational institutions of various Ministries and Defence Division. The entry fee for
historical places and archeological sites is collected by National Heritage and Integration
Division. The charges for medical services are realized by the federal government
hospitals and health establishments, and tuition/training fee realized by Human Resources
Development Division. The estimates are given in the following table.
TABLE 21
Social Services Receipts
(Rs. in Million)
Object Description 2018-19 2018-19 2019-20
Code Budget Revised Budget
C028 Social Services 496.584 632.096 665.675
Education Fees from Schools & Colleges 102.054 234.000 240.000
(MoFE&TT)
Education Fees from Schools and 80.000 120.000 125.000
Colleges (MOD)
National Library of Pakistan 0.500 1.100 1.500
Pakistan Computer Bureau 1.800 1.500 1.800
National Archives (Cabinet Division) 0.010 0.025 0.025
Receipts of Federal Govt Hospitals 42.594 160.000 170.000
(MoNHSRC)
Govt share of fees realized by doctors 134.626 100.000 110.000
(MoNHSRC)
Sale of Vaccination (ICT) - MoNHSRC 2.000 1.215 1.500
Receipts of Health Establishments 8.000 9.256 8.850
(MoNHSRC)
Miscellaneous Receipts 125.000 5.000 7.000Page 30
4.4.6 Social Services Misc Receipts
4.4.6.1 Under Social Services Miscellaneous Head, the Emigration Fee deposited by
Pakistani Workers working abroad in terms of Emigration Ordinance, 1979 are reflected.
The receipts of Human Resource Development Division on account of registration of
overseas employment agencies and deposits by individuals for protection of their visas
are also deposited under this head. Moreover, the fee for registration of trade union and
West Pakistan Ordinance, 1969 are also reflected under this Head of Account. The details
are given in the following table.
TABLE 22
Social Services Miscellaneous Receipts
(Rs. in Million)
Object Description 2018-19 2018-19 2019-20
Code Budget Revised Budget
C029 Social Services Misc. 1,000.006 940.300 1,000.350
Receipts under West Pakistan 0.006 0.300 0.350
Ordinance 1969 (ICT Admn)
Emigration Fee (BoE/Overseas) 1,000.000 940.000 1,000.000
4.5 Miscellaneous Receipts
4.5.1 Miscellaneous receipts comprise (i) Economic Services Receipts and (ii) Other
Receipts. A brief description of these receipts is given in the following paragraphs.
4.5.2 Economic Services Receipts
4.5.2.1 Agricultural Receipts
4.5.2.1.1 These receipts are realized on account of quarantine fee on animal
exports/imports by National Food Security and Research Division.
4.5.2.2 Receipts from Explosive Department
4.5.2.2.1 Receipts under this head pertain to the fee charged by the Department of
Explosives for granting licenses to the firms dealing in explosives.
4.5.2.3 Receipts from Cabinet Division
4.5.2.3.1 The sale proceeds of government publications and stationery by the Controller
of Forms and Stationery realized from various government departments/agencies are
reflected under this head.Page 31
4.5.2.4 Receipts from Lighthouses and Lightships
4.5.2.4.1 These receipts comprise of (i) examination fee, survey and registration fees
realized by the Mercantile Marine Department, Karachi, (ii) cargo shipping and discharging
fees from the shipping companies, (iii) fines realized from seamen for offences committed
by them, (iv) fees realized from cadets under training in the Mercantile Marine Academy,
Karachi, Seamen's Training Centre, Karachi and (v) Lighthouse dues realized from the
shipping companies operating on the coasts of Pakistan. These receipts are shown under
transportation and communication heads.
4.5.2.5 Receipts from Special Communication Organization
4.5.2.5.1 These receipts are collected by the Special Communications Organization for
providing telecommunication services in specific areas. The Special Communications
Organization primarily operates in the Azad Kashmir and Gilgit-Baltistan.
4.5.2.6 The receipts under Economic Services Head mostly comprise of Food
Department, Agriculture Receipts and Farms Receipts collected by Islamabad Capital
Territory. The details are as under:-
TABLE 23
Miscellaneous Receipts
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C031 Economic Services 5,530.387 530.317 640.587
Food Department (ICT) 0.060 0.060 0.060
Receipts from soil conservation & 0.700 0.700 0.900
Operations (ICT)
Agriculture Receipts (ICT) 0.300 0.250 0.300
Services Rendered (ICT) 0.030 0.010 0.030
Plant Protection services 229.297 229.297 239.297
(MoNFSRD)
Miscellaneous Receipts 5,300.000 300.000 400.000
4.5.2.7 The receipts of Economic Services - Fisheries & Animal Husbandry of Livestock
and Diary Development in federal capital territory are collected by Islamabad Capital
Territory Administration are reflected in the table given below:Page 32
TABLE 24
Economic Services Receipts- Fisheries & Animal Husbandry
(Rs. in Million)
Object Description 2018-19 2018-19 2019-20
Head Budget Revised Budget
C032 Fisheries & Animal Husbandry 255.170 210.006 204.750
Ordinary Receipts (Fisheries) - 30.000 11.300 11.750
ICT
Insemination Fees (ICT) 0.170 4.706 5.000
Receipts of Animal Quarantine 150.000 150.000 140.000
Deptt (NFS&R)
Receipts of Marine Fisheries 40.000 40.000 43.000
Department (MoMA)
Receipts of Pakistan Maritime 35.000 4.000 5.000
Security Agency (MOD)
TABLE 25
Economic Services Receipts- Forest
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C033 Economic Services Receipts - Forest 0.600 0.300 0.300
Miscellaneous Receipts (ICT) 0.600 0.300 0.300
TABLE 26
Economic Service Receipt- Cooperation Irrigation, Embankment
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C034 Economic Service Receipt- 12.900 15.600 16.000
Cooperation Irrigation, Embankment,
Drainage
Miscellaneous Receipts (ICT) 12.900 15.600 16.000
4.5.2.8 The table given below reflects the receipts of Explosive Department for industrial
safety. The Ports & Shipping Department Receipt on account of management and upkeep
of port/landing charges and receipts of Special Communications Organization are also
reflected the Economic Services Receipts - Others.Page 33
TABLE 27
Economic Services Receipts - Others
(Rs. in Million)
Object Description 2018-19 2018-19 2019-20
Head Budget Revised Budget
C035 Receipts - Others 2,796.600 2,798.555 3,264.900
Department of Stationery & Forms 1.200 1.200 1.200
(Cabinet Division)
Explosives Department (Ministry of 350.000 350.000 700.000
Industries)
Excise Duty on Minerals under 1.700 1.700 1.700
Partnership Act (ICT)
Lighthouses & Light Ships (MoMA) 419.000 420.000 425.000
Mercantile Marine Department (MoMA) 78.000 75.000 80.000
Shipping Office (MoMA) 25.000 25.000 25.000
Pakistan Marine Academy 13.000 9.000 10.000
Receipts of Special Communications 1,900.000 1,900.000 2,000.000
Organization
PAEC (cost of tender documents) 0.700 1.655 2.000
Miscellaneous Receipts 8.000 15.000 20.000
TABLE 28
Foreign Grants
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C036 Grants 15,902.000 13,738.053 18,794.500
15,902.000 13,738.053 18,794.500
4.5.3 Other Receipts
4.5.3.1 These receipts are realized by different Ministries, Divisions and Departments. The
brief introduction of the main regular receipts under this head is given as under with a
relevant statistics in two tables;
4.5.3.2 Receipts From UN, Staff Welfare and Accreditation
4.5.3.2.1 The major portion of receipts comes from United Nations in lieu of services
rendered by Pakistani troops taking part in various peacekeeping operations worldwide.
The other receipts are generated by various staff welfare initiatives and accreditation
services. Budget Estimates are given as under;Page 34
Table 29
Extraordinary Receipts
(Rs. in Million)
Object Description 2018-19 2018-19 2019-20
Head Budget Revised Budget
C037 Other Receipts 84,062.774 26,905.030 30,056.694
Receipts from United Nations 34,001.180 26,852.400 30,000.000
(Military+Civil)
Sale of other Government 50,000.000 - -
Assets
Working Women Hostel, G-6/3, 3.008 3.023 4.020
Islamabad etc
Receipts of Staff Welfare 30.000 30.000 32.000
Organization
Pakistan National Accreditation 18.000 9.000 10.000
Council
PAEC (Penalties) 0.006 0.174 0.200
Office of the Auditor General of 0.580 0.433 0.474
Pakistan
Miscellaneous Receipts 10.000 10.000 10.000
4.5.3.3 Citizenship, Naturalization and Passport Fees
4.5.3.3.1 These receipts are realized mainly by the Immigration & Passport Offices in
Pakistan and Pakistani Missions abroad on account of issuance, renewal and
endorsement of passports and visas.
Table 30
Citizenship Nationalization, Passport and Copyright Fees
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
C03897 Citizenship, Naturalization & 31,000.000 23,000.000 25,000.000
Passport Fee
4.5.3.4 Royalty, Pollution, Trekking Fees From Tourists
4.5.3.4.1 The royalty fee is charged from the tourists coming to Pakistan for climbing the
mountain peaks having a height of 7000 meters. Whereas, tracking fee is charged from
trackers climbing the mountain on the established track less than the height of 7000
meters.Page 35
4.5.3.5 Receipts from Tourism Department
4.5.3.5.1 The receipts of the Tourism Department include licenses fee of Hotels,
Restaurants and Travel Agencies, Registration Fee of Hotels & Restaurants, Licenses
Renewal fee of Hotels, Restaurants and Travel Agencies and the fines/late fee of Hotels,
Restaurants and Travel Agencies within Capital Territory by Capital Administration &
Development Division.
4.5.3.6 Receipts Collected by Ministry of Foreign Affairs
4.5.3.6.1 It includes the receipts realized on the auction of vehicles, sale of used
machinery and equipment, gains on exchange against the remittances made by the
Government for the expenditure of the Pakistan's missions in various countries, recovery
of overpayment made to the Government servants posted abroad and the deduction of
income tax, GP Fund, Benevolent Fund, House Building and Motor Car Advances of the
employees posted in various Pakistan's missions abroad.
4.5.3.7 Kashmir Affairs and Gilgit Baltistan Division
4.5.3.7.1 These include the receipts from motor vehicles, forest revenues, agriculture
income, rent of buildings, electricity charges and other indirect taxes collected and
deposited directly into the Government Treasury by the administration of the Kashmir
Affairs & Gilgit - Baltistan Division.
4.5.3.8 States and Frontier Region Division
4.5.3.8.1 There are various receipts which are collected on account of stamp duty, fee and
fine, agriculture receipts, etc. in various agencies in the Federally Administrated Tribal
Areas. These receipts are collected by the Political Agents of various Agencies and
deposited directly into the Government Account.
Table 31
Details of Other Receipts
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
C038 Other Receipts 19,252.358 11,906.016 12,710.602
Emergency Relief Cell (Cabinet 5.000 5.000 10.000
Division)Page 36
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
Advance Yearly Rent for 350.000 350.000 350.000
Exploration & Prospecting
Licensing
Fees for Exploration & Prospecting 1.000 1.000 1.000
Licensing
Sundary receipts of AGP Office 1.407 2.247 2.296
Receipts of Toshakhana (Cabinet 10.000 10.000 10.000
Division)
Recovery of National 350.000 1,300.000 200.000
Accountability Bureau
Civil Armed Forces (Unclaimed 14.361 14.256 30.349
Deposits)
Sale of Property (M/o Foreign 2,000.000 2.000 2.000
Affairs)
Civil Armed Forces (Sale of 55.000 55.000 60.000
Stores)
Rent, Rates & Taxes (Auqaf) - ICT 0.400 0.400 0.400
Competition Commission of 300.000 18.000 100.000
Pakistan
Receipts - Mines & Mineral Act 0.100 0.100 0.150
(ICT)
Gains on Exchange (M/o Foreign 25.000 75.000 75.000
Affairs)
Sale Proceeds of GSP (TDAP) 8.000 15.000 16.000
Sale of stores Materials - Defence - 26.245 0.500
Div (Main+PMSA)
Dte of Electronic Media and 0.150 0.150 0.150
Publications (MoIB&NH)
Fee for Registration of Societies 0.110 0.005 0.005
(ICT)
Receipts of Tourist Department 18.000 25.000 30.000
Film Censorship Fee (MoIB&NH) 10.000 4.000 6.000
Recovery of Overpayments (M/o 72.000 110.000 120.000
Foreign Affairs
Payment for services Rendered 0.060 0.060 0.060
(ICT)
Sale of Stores & Material (PAEC) 4.300 17.762 17.650
Arms License Fee (D.C ICT) 2.500 18.000 20.000
Citizenship Copyrights (ICT) 3.400 3.300 3.400
Others PAEC 34.994 32.587 30.000
Sale of Publications (PPARC) 2.000 0.357 0.600
Airport Security Force 10.000 191.966 6.804
Fees, Fines & Forfeitures (PAEC) 1.000 0.129 0.150
Quaid Azam Papers Wing 0.050 0.050 0.050
National Language Promotion 1.000 1.000 1.500
DepttPage 37
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
Other Receipts of M/o Foreign 140.000 237.000 250.000
Affairs
Office of the Controller General of 0.675 0.782 0.758
Accounts
NI Rehabilitation of Medicines 5.000 5.000 5.150
States & Frontier Regions Div. 276.151 250.000 260.000
(FATA)
EIA Review (Pak. Environmental 0.700 0.620 0.630
Protection Agency)
Miscellaneous Receipts of 15,000.000 9,039.000 11,000.000
attached departments
Net Gain On Foreign Exchange 450.000 - -
Forward With The SBP
Miscellaneous Receipts 100.000 95.000 100.000
4.5.4 Receipts from Oil and Gas Sector
4.5.4.1 Royalty on Oil and Gas
4.5.4.1.1 According to Article 16(1) of the Constitution of Islamic Republic of Pakistan, the
royalty collected by the Federal Government shall not form part of the Federal
Consolidated Fund and shall be paid to the provinces in which the well-head of natural
gas is situated. As per Clause 5 of 7th National Finance Commission Award notified vide
President's Order No.5 of 2010, each of the provinces shall be paid in each financial year
as a share in the net proceeds of the total royalties on crude oil an amount which bears to
the total net proceeds the same proportion as the production of crude oil in the province
in that year bears to the total production of crude oil.
4.5.4.1.2 Petroleum Exploration & Production Policy 2012 approved by Ministry of
Petroleum & Natural Resources Government of Pakistan imposes Royalty on exploration
and production of oil and gas. Clause 4.1of Section II of the said policy provides that
Royalty will be payable at the rate of 12.5% of the value of petroleum at the field gate. The
royalty will be paid by the Federal Government to Provinces to the extent of their share of
liquid and gaseous hydrocarbons (such as LPG, NGL, Solvent oil, gasoline and others)
as well as all substances including sulphur, produced in association with such
hydrocarbon. The lease rent paid during the year shall not be deductible from the royalty
payment. 10% of the royalty will be utilized in the district where oil and gas is produced for
infrastructure development.
4.5.4.2 Windfall Levy on Crude Oil
4.5.4.2.1 As per Petroleum Exploration & Production Policy 2012, Windfall Levy (WLO)
will be applicable on crude oil and condensate using the formula i.e WLO = 0.4 x (M-R) xPage 38
(P-B) Where: WLO - Windfall Levy on crude oil and condensate; M - Net production
(petroleum produced & saved); R - Royalty; P - Market Price of crude oil and condensate;
B - Base Price. All the benefit of windfall levy may be equally divided between the Federal
Government and Provincial Government concerned.
4.5.4.3 Discount on Local Crude Oil
4.5.4.3.1 Crude Oil and Natural Gas is explored/extracted by the Exploration and
Production (E&P) Companies working under "Petroleum Concession Agreement (PCA)".
E&P companies sell the crude oil to refineries at the rate prevailing in the international
market based on the formula as per PCA. Under various agreements, E&P Companies
agree to sell the crude oil to refineries at different discounted rate on attainment of certain
milestones as per PCA. The amount of discount is retained by the refineries while making
payment of crude oil to E&P companies and deposited in Government head of account.
4.5.4.4 The details of development surcharges and levies are given below:-
TABLE 32
Royalties, Discount retained on Crude Price and Windfall Levy
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
C039 Royalty on Oil 16,826.110 26,930.860 24,672.550
Royalty on Gas 36,515.790 51,224.520 51,560.470
Discount Retained on Local Crude 10,000.000 14,029.464 16,000.000
Price
Windfall Levy against Crude Oil 5,000.000 6,974.000 7,000.000
Petroleum Levy on LPG. 2,000.000 3,736.452 4,000.000
Total - Development Surcharges 70,341.900 102,895.296 103,233.020
and Royalties other than
Petroleum LevyPage 39
Chapter 5: PROVINCIAL SHARE IN REVENUE RECEIPTS
5.1 The provincial share of revenues from the divisible pool taxes, straight transfers etc.
is governed in accordance with the provisions of 7th National Finance Commission Award
notified vide President's Order No.5 of 2010 issued on 10th May, 2010, which is
reproduced as under:
PRESIDENT'S ORDER NO.5 OF 2010
AN
ORDER
to provide for distribution of revenues and certain grants
WHEREAS in pursuance of clause (1) of Article 160 of the Constitution of the
Islamic Republic of Pakistan (hereinafter referred to as the Constitution), the President, by
the Finance Division's Notification No. S.R.O. 739(I)/2005 dated 21st July, 2005, as
modified by the said Division's Notification No.S.R.O.693(I)/2009, dated 24th July, 2009,
appointed a National Finance Commission to make recommendations, among other
matters, as to the distribution between the Federation and the Provinces of the net
proceeds of certain taxes;
AND WHEREAS the said Commission has also submitted its recommendations
with regard to the said distribution;
NOW, THEREFORE, in pursuance of clauses (4) and (7) of Article 160 of the
Constitution, the President is pleased to make the following Order:-
1. Short title and commencement.- (1) This Order may be called the
Distribution of Revenues and Grant-in-Aid Order, 2010.
(2) It shall come into force on the first day of July, 2010.
2. Definitions.- In this Order, unless there is anything repugnant in the
subject or context.---
(a) "Net Proceeds" means, in relation to any tax, duty or levy, the proceeds
thereof reduced by the cost of collection as ascertained and certified by
the Auditor General of Pakistan, andPage 40
(b) "taxes on income" includes corporation tax but does not include taxes on
income consisting of remuneration paid out of the Federal Consolidated
Fund.
3. Distribution of Revenues. (I) The divisible pool taxes in each year shall
consist of the following taxes levied and collected by the Federal Government in that year,
namely:
(a) taxes on income;
(b) wealth tax;
(c) capital value tax;
(d) taxes on sales & purchases of goods imported, exported, produced,
manufactured or consumed;
(e) export duties on cotton;
(f) customs duties;
(g) federal excise duties excluding the excise duty on gas charged at
well-head; and
(h) any other tax which may be levied by the Federal Government.
(2) One percent of the net proceeds of divisible taxes shall be assigned to
Government of Khyber Pakhtunkhwa to meet the expenses on War on Terror.
(3) After deducting the amount as prescribed in clause (2), of the balance
amount of the net proceeds of divisible pool taxes, fifty six percent shall be assigned to
the provinces during the financial year 2010-11 and fifty seven and a half percent from the
financial year 2011-12 onwards. The share of the Federal Government in the net proceeds
of the divisible pool shall be forty-four percent during the financial year 2010-11 and forty
-two and half percent from the financial year 2011-12 onwards
4. Allocation of shares to the Provincial Governments. (1) The Province
-wise ratios given in clause (2) are based on multiple indicators. The indicators and their
respective weights as agreed upon are:-
(a) Population 82.0 %
(b) Poverty or backwardness 10.3%Page 41
(c) Revenue collection or generation 5.0 %
(d) Inverse population density 2.7 %
(2) The sum assigned to the Provincial Governments under Article 3 shall be
distributed amongst the Provinces on the basis of the percentage specified against each:-
(a) Balochistan 9.09 %
(b) Khyber Pakhtunkhwa 14.62%
(c) Punjab 51.74 %
(d) Sindh 24.55 %
Total: 100.00%
(3) The Federal Government shall guarantee that Balochistan Province shall
receive the projected sum of eighty-three billion rupees from the provincial share in the
net proceeds of divisible pool taxes in the first year of the Award. Any shortfall in this
amount shall be made up by the Federal Government from its own resources. This
arrangement for Balochistan shall remain protected throughout the remaining four years
of the Award based on annual budgetary projections.
5. Payment of net proceeds of royalty on crude oil : Each of the Provinces
shall be paid in each financial year as a share in the net proceeds of the total royalties on
crude oil an amount which bears to the total net proceeds the same proportion as the
production of crude oil in the Province in that year bears to the total production of crude
oil.
6. Payment of net proceeds of development surcharge on natural gas to
the provinces : (1) Each of the Provinces shall be paid in each financial year as a share
in net proceeds to be worked out based on average rate per MMBTU of the respective
province. The average rate per MMBTU shall be derived by notionally clubbing both the
royalty on Natural Gas and Development Surcharge on Gas. Royalty on natural gas shall
be distributed in accordance with clause (1) of Article 161of the Constitution whereas thePage 42
development surcharge on natural gas would be distributed by making adjustments based
on this average rate
(2) The development surcharge on natural gas for Balochistan with effect from
Ist July, 2002 shall be reworked out hypothetically on the basis of formula given in clause
(1) and the amount, subject to maximum of ten billion rupees, shall be paid in five equal
installments by the Federal Government as grants to be charged on the Federal
Consolidated Fund.
7. Grants-in-Aid to the Provinces: There shall be charged upon the Federal
Consolidated Fund each year, as grants-in-aid of the revenues of the province of Sindh
an amount equivalent to 0.66% of the provincial share in the net proceeds of divisible pool
as a compensation for the losses on account of abolition of octroi and zila tax.
8. Sales Tax on services: NFC recognizes that sales tax on services is a
Provincial subject under the Constitution of the Islamic Republic of Pakistan, and may be
collected by respective Provinces, if they so desired.
9. Miscellaneous: (1) NFC also recommended increase in the rate of excise
duty on natural gas to Rs. 10.0 per MMBTU. Federal Government may initiate necessary
legislation accordingly.
(2) The NFC recommended that the Federal Government and Provincial
Governments should streamline their tax collection systems to reduce leakages and
increase their revenues through efforts to improve taxation in order to achieve a 15% tax
to GDP ratio by the terminal year i.e. 2014-15. Provinces would initiate steps to effectively
tax the agriculture and real estate sector. Federal Government and Provincial
Governments may take necessary administrative and legislative steps accordingly.
(3) Federal government and Provincial Governments would develop and
enforce mechanism for maintaining fiscal discipline at the Federal and Provincial levels
through legislative and administrative measures.
(4) The Federal Government may assist the Provinces through specific grants
in times of unforeseen calamities.Page 43
(5) The meetings of the NFC may be convened regularly on a quarterly basis to monitor
implementation of the award in letter and spirit.
10. Repeal.- The Distribution of Revenues and Grant-in-Aid Order, 1997
(P.O.No.1 of 1997), and the Distribution of Revenues and Grants-in-Aid, Order, 2010.
(P.O. 4 of 2010) are hereby repealed.
ASIF ALI ZARDARI
PresidentPage 44
5.2 Distribution of Revenues and Grants-in-Aid Order, 2010 (President's Order No. 5
of 2010) was slightly amended through President's Order No.6 of 2015, which is
reproduced as under;
PRESIDENT'S ORDER NO.6 OF 2015
AN
ORDER
To amend Distribution of Revenues and Grants-in-Aid Order, 2010 (President's Order
No.5 of 2010)
Whereas it is expedient to amend the Distribution of Revenues and Grants-in-Aid
Order, 2010 (P.O. No. 5 of 2010) for the purpose hereinafter appearing.
Now therefore in pursuance of clause (6) read with clause (7) of Article 16 of the
Constitution of the Islamic Republic of Pakistan, the President is pleased to make the
following Order:-
1. Short title and commencement: (1) This Order may be called the
Distribution of Revenues and Grants-in-Aid (Amendment) Order 2015.
(2) It shall come into force on the first day of July 2015.
(3) It will remain in force till further orders.
2. Substitution of Article-4(3) P.O No.5 of 2010: In the Distribution of
Revenues and Grants-in-Aid Order, 2010 (P.O. No. 5 of 2010) for Article 4(3) the following
shall be substituted;
3. The Federal Government shall guarantee that Balochistan Province shall
receive the projected sum of eighty-three billion rupees from the provincial share in the
net proceeds of divisible pool taxes in the first year of the Award and any shortfall in this
amount shall be made up by the Federal Government from its own resources. This
arrangement for Balochistan shall remain protected throughout Award period based on
annual budgetary projections.
MAMNOON HUSSAIN
PresidentPage 45
5.3 The following table shows the estimated transfers to the provincial governments on
account of their share in Federal Taxes and by straight transfers during the year 2018-19
and 2019-20;
Table 33
Provincial Share in Revenue Receipts
2018-19 (Budget)
(Rs. in Million)
* Khyber
Description Balochistan Punjab Sindh TOTAL
Pakhtunkhwa
Divisible Taxes
224,115.976 403,771.127 1,275,661.236 605,285.723 2,508,834.062
(A)
Taxes on Income 86,710.884 156,219.793 493,555.683 234,186.162 970,672.522
Capital Value Tax 329.136 592.977 1,873.431 888.920 3,684.464
Sales Tax excl.
86,926.301 156,607.892 494,781.829 234,767.953 973,083.975
GST on services
Federal Excise
12,881.226 23,207.035 73,319.544 34,789.231 144,197.036
(Net of Gas)
Customs Duties 37,268.429 67,143.430 212,130.749 100,653.457 417,196.065
Straight
9,061.181 22,324.336 6,319.237 43,527.349 81,232.103
Transfers (B)
Gas Development
2,019.019 1,667.964 911.029 11,081.989 15,680.001
Surcharge
Royalty on
4,783.556 8,984.101 1,582.141 20,435.675 35,785.473
Natural Gas
Royalty on Crude
1.509 9,149.633 3,162.215 4,176.231 16,489.588
Oil
Excise Duty on
2,257.097 2,522.638 663.852 7,833.454 13,277.041
Natural Gas
Total (A+B) 233,177.157 426,095.463 1,281,980.473 648,813.072 2,590,066.165
* inclusive of 1% War on terrorPage 46
Table 34
Provincial Share in Revenue Receipts
2018-19 (Revised)
(Rs. in Million)
Description Balochistan * Khyber Punjab Sindh TOTAL
Pakhtunkhwa
Divisible Taxes 224,115.977 379,024.700 1,197,478.191 568,188.821 2,368,807.689
(A)
Taxes on Income 86,710.884 150,888.488 476,712.134 226,194.103 940,505.609
Capital Value Tax 329.136 298.103 941.818 446.881 2,015.938
Sales Tax (excl. 86,926.301 137,297.983 433,774.739 205,820.832 863,819.855
GST on services)
Federal Excise 12,881.226 23,442.380 74,063.084 35,142.032 145,528.722
(Net of Gas)
Customs Duties 37,268.430 67,097.746 211,986.416 100,584.973 416,937.565
Straight 13,498.477 25,006.337 7,259.538 48,079.163 93,843.515
Transfers (B)
Gas Development 750.000 885.460 287.387 3,727.156 5,650.003
Surcharge
Royalty on 10,778.677 8,026.915 2,399.471 28,994.966 50,200.029
Natural Gas
Royalty on Crude - 14,123.182 4,051.320 8,217.741 26,392.243
Oil
Excise Duty on 1,969.800 1,970.780 521.360 7,139.300 11,601.240
Natural Gas
Total (A+B) 237,614.454 404,031.037 1,204,737.729 616,267.984 2,462,651.204
* inclusive of 1% War on terrorPage 47
Table 35
Provincial Share in Revenue Receipts
2019-20 (Budget)
(Rs. in Million)
* Khyber
Description Balochistan Punjab Sindh TOTAL
Pakhtunkhwa
Divisible Taxes 281,229.722 507,655.096 1,603,868.836 761,016.234 3,153,769.888
(A)
Taxes on Income 105,121.681 189,388.996 598,349.375 283,909.493 1,176,769.545
Capital Value Tax 199.531 359.478 1,135.721 538.886 2,233.616
Sales Tax excl. 107,737.935 194,253.380 613,717.750 291,201.600 1,206,910.665
GST on services
Federal Excise 17,845.620 32,150.971 101,576.720 48,196.917 199,770.228
(Net of Gas)
Customs Duties 50,324.955 91,502.271 289,089.270 137,169.338 568,085.834
Straight 13,753.681 25,606.400 7,495.572 53,900.137 100,755.790
Transfers (B)
Gas Development - 1,693.879 572.487 7,533.634 9,800.000
Surcharge
Royalty on 10,834.027 7,713.472 2,425.882 29,653.889 50,627.270
Natural Gas
Royalty on Crude - 13,493.052 3,780.007 6,906.040 24,179.099
Oil
Excise Duty on 2,919.654 2,705.997 717.196 9,806.574 16,149.421
Natural Gas
Total (A+B) 294,983.403 533,261.497 1,611,364.408 814,916.371 3,254,525.678
* inclusive of 1% War on terrorPage 48
Chapter 6: CAPITAL RECEIPTS
6.1 Capital receipts comprise Recoveries of Loans and Advances from Provinces and
other entities and Public Debt which includes Permanent Debt and Floating Debt. The net
capital receipts so realized by the federal government generally constitute the available
resources for the financing of its Public Sector Development Programme. External
finances and un-funded debt (primarily made up of the various instruments available under
the National Savings Schemes) also fall under the category of Capital Receipts, however
they are covered under separate chapters of this publication.
6.2 The following table indicates the position of Capital receipts for 2018-19 (budget
and revised) and 2019-20 (budget).
Table 36
Capital Receipts
(Rs. in Million)
Description 2018-19 2018-19 2019-20
Budget Revised Budget
A. Capital Receipts (I+II) 559,084.587 953,502.237 766,197.740
I. Recoveries of Loans and Advances 152,989.497 159,831.827 183,520.370
Provinces 61,596.149 71,392.834 79,370.744
Others 91,393.348 88,438.993 104,149.626
II. Public Debt 406,095.090 793,670.410 582,677.370
Domestic Debt (Permanent) 206,158.090 762,008.010 282,740.370
Foreign Currency Debt (63.000) (41.600) (63.000)
(Permanent)
Floating Debt (Net) 200,000.000 31,704.000 300,000.000
B. Public Account 521,925.518 754,486.811 724,385.239
Deferred Liabilities (Net) 130,697.470 318,382.230 278,628.080
Deposits and Reserves 391,228.048 436,104.581 445,757.159
C. Total (A+B) 1,081,010.105 1,707,989.048 1,288,123.258
D. Disbursements 637,914.257 680,721.137 672,617.029
Federal Govt Misc investments 19,435.640 7,537.270 14,968.198
Loans and Advances 49,076.000 53,275.149 61,523.185
Short Term Credits 174,163.275 143,666.272 108,300.000
Deposits and Reserves 395,239.342 476,242.446 487,825.646
Net Capital Receipts (C-D) 443,095.848 1,027,267.911 615,506.229Page 49
6.3 Recovery of Loans and Advances
6.3.1 The recovery of principal amount of loans and advances from provinces, public
sector enterprises, financial and non-financial institutions is reflected in this section.
6.3.2 The estimates of recoveries of loans and advances are given below :
TABLE 37
Recovery of Loans and Advances
(Provinces)
(Rs. in Million)
Object Province 2018-19 2018-19 2019-20
Code Budget Revised Budget
Province-wise break-up
E021 Punjab 35,132.844 40,556.988 44,050.291
Cash Loans 2,248.211 2,248.212 1,822.179
Foreign Loans 32,884.633 38,308.776 42,228.112
Sindh 12,750.606 14,911.795 18,631.372
Cash Loans 1,085.146 1,105.953 1,159.914
Foreign Loans 11,665.460 13,805.842 17,471.458
Khyber Pakhtunkhwa 7,370.142 8,597.422 9,449.315
Cash Loans -
Foreign Loans 7,370.142 8,597.422 9,449.315
Balochistan 6,342.557 7,326.629 7,239.766
Cash Loans -
Foreign Loans 6,342.557 7,326.629 7,239.766
Total (Recovery of Loans) 61,596.149 71,392.834 79,370.744
Loan-wise Break-up
E021 Cash Loans 3,333.357 3,354.165 2,982.093
Punjab 2,248.211 2,248.212 1822.179
Sindh 1,085.146 1,105.953 1159.914
Khyber Pakhtoonkhwa - - -
Balochistan - -
Foreign Loans 58,262.792 68,038.669 76,388.651
Punjab 32,884.633 38,308.776 42228.112
Sindh 11,665.460 13,805.842 17471.458
Khyber Pakhtoonkhwa 7,370.142 8,597.422 9449.315
Balochistan 6,342.557 7,326.629 7239.766
Total - Loans 61,596.149 71,392.834 79,370.744Page 50
TABLE 38
Recovery of Loans and Advances
(Local Bodies)
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
E022 Cash Loans 21,784.863 13,821.035 13,688.961
PTVC 58.753 58.753 58.753
Lahore Garment City 46.240 13.364 14.906
NHA 12,644.670 12,644.670 13,306.677
PBC 77.771 77.863 84.718
PIA 6,937.500 875.000 62.500
Pakistan Engineering Corporation 1,868.302 - -
Printing Corporation of Pakistan 151.627 151.385 161.407
Foreign Loans 34,229.889 37,748.060 39,160.115
Karachi Port Trust 578.983 718.306 782.873
PAEC 0.982 0.982 -
CDA 942.652 1,056.544 -
NHA 8,817.599 8,817.599 9,535.158
GIK Institute 89.859 103.997 110.083
Shaukat Khanum Memorial Trust 8.107 8.628 9.412
NLC - - -
NEPRA 0.751 0.751 0.751
OGRA 0.623 0.623 0.623
Chashma Nuclear Power Plant 23,790.333 27,040.630 28,721.215
Total (Local Bodies) 56,014.752 51,569.095 52,849.076
TABLE 39
Recovery of Loans and Advances
(Financial Institutions)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
E023 Foreign Loans 97.314 97.314 97.314
IDBP 97.314 97.314 97.314
Total - Financial Institutions 97.314 97.314 97.314Page 51
Table 40
Recovery of Loans and Advances
(Non-Financial Institutions)
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
E024 Power Sector
Cash Loans 2,170.622 1,149.471 1,897.068
WAPDA (power wing) 613.626 613.626 1,080.404
WAPDA (water wing) 260.899 25.854 39.456
TESCO 124.542 17.064 19.340
QESCO 41.115 13.645 23.868
MEPCO 20.854 12.427 14.034
GENCO-I 16.213 16.213 19.121
GENCO-II 376.552 147.244 167.348
GENCO-III 228.809 90.957 101.842
GENCO-IV 1.665 1.665 1.963
CPPA - 40.100 40.100
NJHP 486.347 170.676 389.592
Foreign Loans 17,520.844 19,614.616 32,115.632
WAPDA (Power Wing) 4,407.799 4,654.002 8,865.012
WAPDA (water wing) - - 73.554
TESCO 0.149 0.149 0.149
LESCO 546.505 546.505 597.436
HESCO 516.700 602.799 619.355
PESCO 338.458 368.544 406.765
QESCO 608.411 650.099 676.672
GEPCO 226.276 320.080 345.792
IESCO 651.996 696.337 724.614
FESCO 314.409 333.900 369.205
MEPCO 748.356 799.389 865.533
NTDC 6,233.196 6,687.937 6,831.305
NJHP 2,928.589 3,894.559 11,714.544
PEPCO - 60.316 25.696
Total - Power Sector (A) 19,691.466 20,764.087 34,012.700
Autonomous Bodies/Corporations
Foreign Loans 5,182.099 5,210.537 5,128.739
Pakistan Railways 1,740.532 1,768.970 1,687.172
Karachi Fish Harbour Authority 26.584 26.584 26.584
PPAF 1,279.596 1,279.596 1,279.596
ERRA 2,103.531 2,103.531 2,103.531
TEVTA 31.856 31.856 31.856
Total Autonomous Bodies/Corp (B) 5,182.099 5,210.537 5,128.739
Total Non-Financial Institutions 24,873.565 25,974.624 39,141.439
(A+B)Page 52
Object Description 2018-19 2018-19 2019-20
Code Budget Revised Budget
E025 Government Servants
Garrison Educational Institutions 39.553 49.471 51.944
Office of the AGPR, Isb 2,797.535 2,760.867 3,036.954
AGPR sub-office, Lahore 563.464 727.342 800.076
AGPR sub-office, Karachi 616.302 673.430 740.774
AGPR sub-office,Peshawr 342.831 356.862 374.690
AGPR sub-office, Quetta 168.030 143.340 150.340
AGPR sub-office, Gilgit 347.799 246.045 270.650
Defence 545.266 550.719 556.226
Pakistan Post Office Deptt 189.000 268.200 280.400
Pak PWD 52.754 59.445 59.600
Pakistan Mint 15.565 16.150 17.560
CAO (Ministry of Foreign Affairs) 86.992 79.866 87.784
Central Dte of National Savings 108.440 120.240 124.382
Geological Survey of Pakistan 25.075 27.275 35.984
Special Communication Organization 11.793 13.145 14.659
National Tariff Commission 10.578 7.395 8.137
NDMA - 0.069 0.412
Total Govt servants 5,920.977 6,099.861 6,610.572
E027 Others
Cash Loans- Govt of AJK 3,480.148 3,480.148 4,099.281
Foreign Loans-Govt of AJK 995.586 1,209.390 1,340.934
Cash Loans - PNRA 11.006 8.561 11.010
Total - Others 4,486.740 4,698.099 5,451.225
Total Recovery Cash Loans 33,367.616 24,559.076 26,306.892
(PSEs & others)
Total Recovery Foreign Loans 58,025.732 63,879.917 77,842.734
(PSEs & others)
Total (PSEs & Others) 91,393.348 88,438.993 104,149.626
Total Provinces 61,596.149 71,392.834 79,370.744
Grand Total - Recovery of Loans 152,989.497 159,831.827 183,520.370
6.4 Public Debt
6.4.1 Public Debt of the Federal Government is classified into two basic categories:
(i) Domestic debt, which includes permanent debt, floating debt and unfunded
debt; and
(ii) Foreign currency debt, which includes long, medium and short term debt.Page 53
6.4.2 Domestic Debt (Permanent) The main features of securities through which domestic debt (permanent) is raised are given below: 6.4.2.1 Pakistan Investment Bonds: This security having maturity period of 2, 3, 5, 7, 10, 15, 20 and 30 years is in operation since 2000. Against the budgeted receipt of Rs.100,000.000 million for the year 2018-19, the revised estimates for the year 2018-2019 have been worked out at Rs. 705,947.3 million whereas the budget estimates for the year 2019-2020 are estimated at Rs. 200,000.000 million. 6.4.2.2 Government Ijara Sukuk Bonds: The Government of Pakistan Ijara Sukuk Bonds are issued through Pakistan Domestic Sukuk Company Limited. The Sukuk are not redeemable before maturity. The profit on the Sukuk is payable bi-annually on rental rate to be announced by State Bank of Pakistan. Against the budget estimates of Rs.10,620.000 for the year 2018-19, the revised estimates have been projected at Rs. - 204,773.0 million. The budget estimates for the year 2019- 20 are estimated at Rs. 10,500.0 million. 6.4.2.3 National Prize Bonds: These are of bearer type non-terminable securities freely en-cashable and transferable by delivery. These are issued in denomination of Rs.100/-, Rs.200/-, Rs.750/-, Rs.1500/-, Rs.7500/-, Rs.15000/-, Rs.25, 000/- and Rs.40, 000/-. Against the budgeted receipt of Rs.92, 537.690 million for the year 2018-2019, the revised estimates for the year 2018-19 are kept at Rs. 137,710.500 million. Budget estimates for the year 2019-20 are estimated at Rs.70, 747.370 million. 6.4.2.4 Premium Prize Bonds (Registered): Premium Prize Bonds (Registered) of Rs.40, 000/- denomination have been launched. These bonds offer biannual profit payment on completed period of six months as well as prize money on quarterly draws. The bond shall be registered against the name of purchaser. The ownership of bond is transferable from one person to another person through an application on prescribed format.
Page 54
6.4.2.5 The net receipts from domestic debt (permanent) during the year 2018-2019
(budget & revised) and 2019-2020 (budget) are estimated as under:-
Table 41
Public Debt
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Code Budget Revised Budget
E031 Domestic Debt (Permanent) 206,158.090 762,008.010 282,740.370
Pakistan Investment Bonds 100,000.000 705,947.300 200,000.000
(Non-Bank)
Government Ijara Sukuk 10,620.400 (82,479.600) 8,993.000
Bonds
National Prize Bonds 92,537.690 137,710.500 70,747.370
Premium Prize Bonds 3,000.000 829.810 3,000.000
(Registered)
6.4.3 Foreign Currency Debt (Permanent)
It includes the following securities:
6.4.3.1 Foreign Exchange Bearer Certificates (FEBCs):
Budget estimates in case of repayment of Foreign Exchange Bearer Certificates for
financial year 2018-19 were estimated at Rs.-5.000 million. Revised estimates for the year
2018-19 are projected at Rs.-0.500 million whereas budget estimates for financial year
2019-2020 have been kept at Rs. -5.000 million.
6.4.3.2 Foreign Currency Bearer Certificates (FCBCs):
Repayment on account of Foreign Currency Bearer Certificates in the budget estimates
for the year 2018-2019 was estimated at Rs.-5.000 million. Revised estimates for the year
2018-2019 and budget estimates for the year 2019-2020 on account of repayment have
been kept at Rs.-1.000 million and Rs.-5.000 million respectively. These certificates are in
US$ and Pound Sterling. Profit is payable half yearly at floating rates which is not liable to
income tax. Investment in these certificates is exempt from Wealth Tax and compulsory
deduction of Zakat.
6.4.3.3 US Dollar Bearer Certificates (DBCs):
This security was introduced in 1991 and discontinued on 17th November, 1994. Against
the repayment of Rs.-3.000 million in the budget estimate 2018-2019, revised estimatesPage 55
2018-2019 and budget estimates for the year 2019-2020 have been kept at Rs.-0.100
million and Rs.-3.000 million respectively.
6.4.3.4 Special US Dollar Bonds:
These bonds were issued under Special US Dollar Bonds Rules, 1998 to the Foreign
Currency Accounts holders or Foreign Currency Certificates holders with scheduled banks
or non-bank financial institutions out of their foreign currency deposits. Against the
repayment of Rs.-50.000 million provided in budget estimates 2018-2019, the repayment
on account of these bonds in revised estimates 2018-2019 has been estimated at Rs.-
40.000 million. Budget estimates for the year 2019-2020 are estimated at Rs.-50.000
million. The estimates of foreign currency debt (permanent) are tabulated below:-
Table 42
Public Debt (Foreign Currency Permanent)
(Rs. in Million)
Object Description 2018-19 2018-19 2019-20
Head Budget Revised Budget
E031 Foreign Currency Debt (63.000) (41.600) (63.000)
(Permanent)
Foreign Exchange Bearer (5.000) (0.500) (5.000)
Certificates (FEBCs)
Foreign Currency Bearer Certificates (5.000) (1.000) (5.000)
(FCBCs)
US Dollar Bearer Certificates (DBCs) (3.000) (0.100) (3.000)
Special US Dollar Bonds (50.000) (40.000) (50.000)
6.4.4 Floating Debt
The term "floating debt" is applied to borrowing of purely temporary nature with currency
of not more than twelve months. Market Related Treasury Bills, National Prize Bonds and
Bai-Maujjal Ijara Sukuks are included in this category.
6.4.4.1 Market Related Treasury Bills (Auction):
These reflect non-bank borrowing of the Federal Government.Page 56
6.4.4.2 Government Bai-Muajjal Ijara Sukuk :
Government Bai-Maujjal Sukuk are issued through auction for a maturity period of one
year from date of issue. Bai-Maujjal Ijara Sukuk shall be repaid only on maturity. The profit
earned on Bai-Maujjal Ijara Sukuk shall be liable to income tax. Withholding tax shall be
deducted at source at the applicable rate. The estimates of receipts from floating debt
during the year 2018-2019 (revised) and 2019-2020 (budget) are as under:-
Table 43
Floating Debt
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
E032 Floating Debt
A. Market Treasury Bills through
Auction (Non-Bank)
Receipts 1,187,053.970 3,963,184.400 4,484,054.500
Repayments 987,053.970 3,931,480.400 4,184,054.500
Net (A) 200,000.000 31,704.000 300,000.000
B. Govt Bai-Muajjal Ijara Sukuk - - -
Net Total Floating Debt (A+B) 200,000.000 31,704.000 300,000.000Page 57
Chapter 7: PUBLIC ACCOUNT RECEIPTS 7.1 Article 78(1) of the Constitution of Islamic Republic of Pakistan provides that all revenues received by the Federal Government, all loans raised by that Government and all moneys received by it in repayment of loan, shall form part of the Federal Consolidated Fund. Besides, Article 78(2) provides that all other moneys received by or on behalf of the Federal Government shall be credited to the Public Account of the Federation. Public Account largely comprises money kept by the Government as a trust, which may be repaid on demand subject to such terms and conditions as prescribed in this regard. 7.2 Public Account Receipts may be categorized as Deferred Liabilities and Deposit Receipts. 7.3 Deferred Liabilities These receipts represent the net proceeds of various savings schemes launched by the Government. Brief introduction of each saving scheme is given below. 7.3.1 Defence Savings Certificates 7.3.1.1 This is a ten years scheme. However, the investment can be encashed at any time. The rate of return on Defence Savings Certificates has been linked with the yield of Pakistan Investment Bonds of ten years maturity. The existing rate on this scheme is 12.47 % p.a. on maturity. Withholding tax is deducted from the profit payment. Apart from individuals, institutions may invest their individuals’ funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc. in this scheme. 7.3.2 Special Savings Certificates/Accounts Special Savings Certificates (Registered/Accounts) is a three years scheme with profit payable on six monthly basis. The rate of return on Special Savings Certificates/Accounts has been linked with the yield of Pakistan Investment Bonds of three years maturity. The existing rate of profit in this scheme is 11.57% per annum for first to fifth profits and 12.40% for the last sixth profit. Withholding tax is deducted from the profit payment. Apart from individuals, institutions may invest their individuals’ funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc. in this scheme.
Page 58
7.3.3 Regular Income Certificates
This scheme was introduced on 2-2-1993 to ensure payment of income on monthly basis.
The rate of return on Regular Savings Certificates has been linked with the yield of
Pakistan Investment Bonds of five years maturity. The existing profit on this scheme is
12.00 % per annum. The profit in the scheme is subject to withholding tax and the
investment is exempt from compulsory deduction of Zakat at source. Apart from
individuals, institutions may invest their individuals’ funds such as pension, gratuity,
superannuation, contributory provident funds and trusts etc. in this scheme. Premature
encashment on these certificates carry service charges as under:-
(i) if encashed before completion of one year
from the date of issue @ 2% of face value
(ii) Before two years @ 1.50% of face value
(iii) Before three years @ 1% of face value
(iv) Before four years @ 0.5% of face value
7.3.4 Mahana Amdani Account.
It is a five years scheme in which only individuals can invest from Rs.500/- to Rs.5000/-
each month consecutively for five years and thereafter, the return was paid on monthly
basis equal to the amount of monthly deposit till the withdrawal of accumulated principal
amount. However, the account holders who opened accounts on or after 1.7.2000 and
1.7.2002 were required to deposit monthly installment for six years and seven years
respectively to get monthly profit equal to the amount of monthly deposit so long as the
account is not closed. The return upto Rs.1000/- is tax free. Zakat is deducted on principal
value at the time of payment of return if declaration in this regard is not filed. However,
Mahana Amdani Account Scheme has been discontinued after 17th May, 2003.
7.3.5 Savings Accounts
This is the oldest savings scheme in operation which provides profit on non-chequing
accounts. Zakat is deducted @ 2.50% on credit balance on valuation date each year if
declaration in this regard is not filed. The existing profit on savings account is 8.50 % p.a.
Withholding tax is deducted from the profit payment. Apart from individuals, institutionsPage 59
may invest their individuals’ funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc. in this scheme. 7.3.6 Pensioners’ Benefit Accounts This scheme has been launched with effect from 20-1-2003 to provide incentives to the retired officials of the Federal Government, Provincial Governments, Azad Government of the State of Jammu and Kashmir, Armed Forces, Semi Governments and autonomous bodies and in case of death the pensioner’s eligible member of the family. Only one account can be opened in the National Savings Centre with a minimum deposit of rupees ten thousand and in multiple of one thousand with the facility of seven subsequent deposits subject to the maximum limit of five million rupees. It is a ten years scheme and profit is payable on completion of each period of one month reckoned from the date of opening of an account till maturity or encashment whichever is earlier. The existing rate of profit on this scheme is 14.28 % per annum. Premature encashment before completion of one, two, three and four years carries service charges at the rate of 1.00%, 0.75%, 0.50% and 0.25% of principal amount respectively. Profit accrued from this scheme is exempt from compulsory deduction of withholding tax and Zakat. The scheme has been made more attractive as any upward revision in rate of profit notified after 9.3.2009 shall also be applicable to existing accounts holders whereas downward revision shall apply to fresh investment only. 7.3.7 Bahbood Savings Certificates Initially this scheme was introduced exclusively for widows to cater for their needs with monthly profit payment facility. The scheme was further extended to the aged persons 60 years or above. The existing rate of profit on this scheme is 14.28 % per annum. The maximum investment limit in this scheme is five million rupees and ten million rupees for joint holders. It is only a compensatory package to enable widows and senior citizens to supplement their income to lead a respectable life. Service charges at the rate of 1.00%, 0.75%, 0.50% and 0.25% of the face value are deducted if certificates are encashed before completion of one, two, three and four years respectively. Profit accrued from this scheme is exempt from compulsory deduction of withholding tax and Zakat. The scheme
Page 60
has been made more attractive as any upward revision in rate of profit notified after
9.3.2009 shall also be applicable to existing certificate holders whereas downward revision
shall apply to fresh investment only.
7.3.8 The estimates of receipts are tabulated on the following pages.
Table 44
Deferred Liabilities
(Rs. in Million)
Object 2018-19 2018-19 2019-20
Description
Head Budget Revised Budget
G03 Deferred Liabilities 130,697.470 318,382.230 278,628.080
Provident Fund 2,000.000 2,500.000 3,000.000
Saving/Deposit 125,697.470 315,082.230 271,928.080
Acctt/Certificates
Saving Bank Accounts 3,548.730 68,108.760 12,495.560
Khas Deposit Accounts -5.000 -0.700 -0.700
Mahana Amdani Accounts -70.000 -70.000 -70.000
Pensioners' Benefit Accounts 23,838.930 39,541.220 29,555.900
Defence Saving Certificates 10,000.000 56,301.820 38,890.270
Bahbood Savings Certificates 46,403.330 113,879.240 84,650.580
National Deposit Certificates -1.000 -0.800 -1.000
Khas Deposit Certificates -0.700 -0.700 -0.700
Special Savings Certificates 3,718.725 (8,827.720) 10,762.300
(Registered)
Special Savings Accounts 11,691.195 -10,075.330 12,283.300
(Term Deposit)
Shuhda Welfare Account - 55.000 98.000
Regular Income Certificates 7,573.260 55,171.440 65,264.570
Short Term Savings Certificates 2,000.000 1,000.000 1,000.000
New Savings Schemes 17,000.000 - 17,000.000
Postal Life Insurance Fund 3,000.000 800.000 3,700.000
7.4 Deposits and Reserves
7.4.1 The public account deposit receipts are broadly of two types known as (i) Reserve
funds and (ii) Other deposits. The reserve funds, falling in the category of renewal reserve
and depreciation funds, are designed to meet the cost of renewal and replacement of
assets of the commercial departments and undertakings to which they relate. These are
fed by annual contribution from these departments and organizations, calculated either on
commercial principle or on ad-hoc basis. The expenditure on renewal and replacement in
a year is initially booked as expenditure under the relevant capital head of account but atPage 61
the end of the year, it is transferred to the appropriate depreciation or renewal reserve
fund per contra-credit to the expenditure head.
7.4.2 Reserve funds and deposit accounts, other than the renewal reserve and
depreciation funds, are intended to provide for liabilities and requirements of funds for
specific purposes for which they have been created. Like renewal reserve and
depreciation funds, these are fed by regular yearly payment or ad-hoc contributions from
the current revenues. Such transfers generally pass through the budget grant of the
concerned Ministry or Division.
7.4.3 The reserve funds and deposit accounts in respect of which provision for
contributions have been made in the revised estimates for 2018-19 and budget estimates
for 2019-20 are tabulated on the following pages.
Table 45
Deposits and Reserve Fund
Object Description 2018-19 2018-19 2019-20
Code Budget Revised Budget
FGE BENEVOLENT FUNDS 3,424.113 3,687.137 3,871.494
G06202 Civil 1,359.246 1328.829 1395.270
G06203 Defence 1,862.910 2166.480 2274.804
G06205 Pakistan Post Office Deptt. 172.662 164.280 172.494
G06206 Pak PWD 5.964 6.926 7.272
G06209 National Saving 14.301 12.874 13.518
G06210 Pakistan Mint 4.032 3.120 3.276
G06211 Forest Department 0.504 0.000 0.000
G06212 Geological Survey of Pakistan 4.494 4.629 4.860
GROUP INSURANCE FUNDS 675.108 1,045.543 1,097.820
G06401 PAK PWD 3.087 2.143 2.250
G06402 Foreign Office 0.063 0.000 0.000
G06404 National Saving 3.675 3.223 3.384
G06405 Pakistan Mint 0.147 0.000 0.000
G06406 Forest Department 0.126 0.000 0.000
G06407 Geological Survey of Pakistan 1.722 1.817 1.908
G06408 Provincial Govt. Empl. B. Fund 0.399 0.000 0.000
G06409 Civil 394.338 388.217 407.628
G06410 Defence 271.383 650.143 682.650
G06414 Provincial Govt. Empl. B. Fund 0.168
OTHERS 387,128.827 375,117.00 39,401,787.845
G06304 Workers Welfare Fund 10,520.328 7035.463 7387.236Page 62
Object Description 2018-19 2018-19 2019-20
Code Budget Revised Budget
Post Office Renewal Reserve
G07101 Fund 45.066 0.000 0.000
G07102 Post Office Welfare Fund 29.841 0.240 0.252
Fed. Govt. Empl. Group Insur.
G07104 Fund 10.038 9.806 10.296
Pakistan Post Office
G07106 Miscellaneous 154,737.681 164919.549 173165.526
G08117 Railway Reserve Fund 35,000.000 37,000.000 39,000.000
G08121 Railway Dep. Reserve Fund 17,604.688 19,254.90 6,115.00
G07106 PPO Miscellaneous 0.000 0.000 0.000
Pak PWD Receipts &
G10101 Collection Account 243.537 280.011 294.012
Foreign Office Receipts &
G10102 Collection Account 4,482.072 7172.006 7530.606
Mint Receipt and Collection
G10104 Account 29.904 49.903 52.398
Deposit Works of Survey of
G10106 Pakistan 55.524 116.006 121.806
G10113 Pak PWD Deposits 10,084.809 6789.720 7129.206
G10304 Zakat Collection Account 1,537.725 3626.829 3808.170
Special Deposit Fund for army
G11201 supplies-friendly countries. 0.000 0.034 0.036
G11215 Revenue Deposits 7,008.120 11196.206 11756.016
G11216 Civil & Criminal court Deposits 17.451 12.377 12.996
G11217 Personal Deposits 29,714.118 18507.926 19433.322
G11218 Forest Deposits 24.423 0.000 0.000
Deposit in connection with
G11220 Election 2.394 130.577 137.106
Deposits Accounts with
G11224 Defence 2,265.795 2969.863 3118.356
G11225 Deposits Accounts with AGPR 0.000 162.669 170.802
G11230 Special Remittances Deposits 2,617.818 1453.526 1526.202
Deposit local bodies to meet
G11237 Claims of contractors 0.798 0.000 0.000
G11238 Security deposit of supply cell 0.000 0.000 0.000
Security Deposits of Cashiers
G11240 etc. 59.157 369.909 388.404
Defence Services Security
G11255 Deposits. 881.769 1863.771 1956.960
Defence Service Misc.
G11256 Deposits. 96,031.383 137837.846 144729.738
G11276 Security deposit of Private Co. 8.610 14.314 15.030
Contribution to Govt. Servant H
G11278 Foundation from its Members 0.987 0.000 0.000Page 63
Withholding Tax on Profit from
Invett. in National Savings
G11280 Scheme 5,764.143 7191.874 7551.468
Deposits on account of fee
G11281 realized by PNAC 54.201 17.451 18.324
Security deposit of
G11290 Firms/Contractors 84.987 130.680 137.214
President's Relief Fund for
G12130 Earthquake Victims 2005 2.940 0.000 0.000
PM's Special Fund for victims
G12135 of Terrorism 0.021 0.000 0.000
G12140 PM Flood relief Fund 2010 0.294 6.994 7.344
G12150 PM Relief Fund for IDPs 2014 2,015.979 2341.937 2459.034
Pakistan Minorities Welfare
G12205 Fund 0.651 0.000 0.000
Special Fund for Welfare &
G12206 Uplift of Minorities 62.706 71.349 74.916
Federal Govt. Artists Welfare
G12226 Fund 14.280 0.000 0.000
G12305 Export Development Fund 0.000 0.000 0.000
Reserve Fund for Exchange
G12308 Risk on Foreign Loans 879.144 394.817 414.558
Pakistan Oil Seed
G12412 Development Fund 145.026 148.029 155.430
G12419 Research & Development Fund 36.036 48.343 50.760
Workers Children Education
G12504 Fund 0.420 0.000 0.000
G12510 Education Welfare Fund 0.168 0.000 0.000
G12612 Fund for Urdu Science Board 3.129 0.000 0.000
Income Tax deduction from
G12713 Salaries 29.988 6.909 7.254
Income Tax deduction from
G12714
Contractors/Suppliers 39.900 71.383 74.952
G12729 Fund for social services 0.000 0.000 0.000
G12738 National Fund for Control of 10.752 26.726 28.062
Drug Abuse
Federal Civil Servant's
subscription to Services Book
G12741 Club 0.462 15.154 15.912
G12745 Central Research Fund 2.583 0.000 0.000
Sales Tax deduction special
G12777 procedure, 2007 5.486 5.760
G12783 Universal Service Fund 666.981 96.720 101.556
GSP Receipt & Collection
G13140 Account 2,500.000 24.600 25.830
G14100 Pakistan Mint 1,800.000 0.000 1800.000
Total 391,228.048 436,104.581 445,757.159Page 64
7.4.4 A brief description of the main deposits/reserve funds are given below. 7.4.4.1 Post Office Renewal Reserve Fund 7.4.4.1.1 The objective of establishing this reserve fund is to secure the payment of annual contribution from general revenues, to provide funds to meet the actual cost of renewing and replacing assets. The fund also bears the cost of relieving capital of the value of an asset, other than land, which is sold, abandoned or otherwise disposed off without being replaced. The fund receives credit for an annual contribution from working expenses of such amount fixed from time to time as a depreciation charge based on the life of assets as well as sale proceeds of unserviceable materials, block value of dismantled assets etc. 7.4.4.2 Railways Depreciation Reserve Fund 7.4.4.2.1 The Railways Depreciation Reserve Fund provides for the cost of renewals and replacement of assets as and when it becomes necessary. The Fund was to provide the amount of original cost of the assets replaced and its scope was restricted to the replacement of complete units of certain classes of wasting assets. With a view to providing safeguard against over capitalization, the entire cost of the replacement of an asset including the improvement elements is charged to the Fund. Presently, the contribution to the fund is made by adopting "Straight Line Method". 7.4.4.3 Railways Reserve Fund 7.4.4.3.1 The objective of establishing this Fund is to secure the payment of annual contribution of general revenues to provide, if necessary, for arrears of depreciation and for writing off capital and to strengthen the financial position of the Railways. The Fund was also used for temporary borrowings for the purposes of meeting the expenditure for which there was no provision or insufficient provision in the revenue budget. The receipts in this Fund consist of the surplus which remains out of the profit of Railways after payment to general revenues of the contribution fixed under the Convention. 7.4.4.4 Workers Welfare Fund 7.4.4.4.1 This Fund was created for provision of housing facilities and other amenities to industrial workers. Initial contribution of Rs.100 million was made by the federal government. Further contributions to the Fund are being made in the form of Workers
Page 65
Welfare Tax @ 2% per annum of the total assessable income of industrial units whose income is not less than Rs.100,000 and the amount transferred to the Fund from time to time, under clause (d) of Section 4 of the scheme set out in the schedule to the "Companies' Profit (Workers' Participation ) Act, 1968 (XII of 1968). All proceeds of the fund will initially be credited into the WWF Trust Fund and money from the fund for incurring expenditure on the defined/prescribed purposes will be withdrawn by submitting a proper sanction of competent authority to AGPR. However, the profit earned either from investment of Bank accounts and income from properties and assets will be credited direct in the WWF bank Account and the entire amount shall be treated as part of the "Workers Welfare Fund" and it shall be subject to audit. 7.4.4.5 Fund for Exchange Risk on Foreign Loans 7.4.4.5.1 The federal government pays the difference of exchange rate fluctuations on behalf of borrowers, and charges an exchange risk fee. The rate of this fee is different for different foreign currencies.
Page 66
Chapter 8: EXTERNAL RESOURCES 8.1 External Resources comprise Project Loans and Grants, Programme Loans and Other Loans. A brief description is given as under; 8.2 Project Loans and Grants 8.2.1 Project loans and grants are received from specialized international financial institutions and friendly countries with specific purpose falling under the following broad categories; 8.2.2 Project Loans & Grants for Public Sector Development Programme (PSDP) 8.2.2.3 Project loans and grants for PSDP are received for various projects being executed by Federal Government, Provincial Government and various Autonomous bodies such as WAPDA, PEPCO, NHA etc. 8.2.3 Project Loans and Grants for Other than PSDP Projects 8.2.3.1 There are certain projects kept out of PSDP, which are executed by Federal Government, Provincial Government and Autonomous bodies by receiving project loans and grants. 8.3 Programme Loans 8.3.1 Programme loans are provided for budgetary support and are linked/tied with achievement of specific targets and goals. Programme Loans not only stabilize foreign exchange reserves but also generate rupee counterpart to meet country's development needs. 8.4 Other Loans Other loans comprise loans from Islamic Development Bank, Sovereign Bonds, Sukuk Bonds, etc received from non-traditional sources generally by way of payment as well as for budgetary support. 8.5 The estimates of external resources for the year 2018-19 (budget and revised) and 2019-20 (budget) are tabulated on the following page.
Page 67
Table 46
External Resources
(Rs. in Million)
Description 2018-19 2018-19 2019-20
Budget Revised Budget
(1) PSDP Projects (A+B) 319,522.264 396,568.490 239,120.844
A. Project Loans 290,070.648 362,359.387 211,170.821
Federal Projects 22,575.738 34,878.213 16,117.895
Autonomous Bodies 130,059.675 227,054.057 102,754.308
Provinces 137,435.235 100,427.117 92,298.618
B. Project Grants 29,451.616 34,209.103 27,950.023
Federal Projects 6,439.391 8,985.882 6,130.368
Autonomous Bodies 1,228.460 11,660.980 1,676.908
Provinces 21,783.765 13,562.241 20,142.747
(2) Non-PSDP Projects (A+B) 8,604.700 16,070.731 13,796.003
A. Project Loans 8,023.700 13,599.190 13,250.000
Federal Projects 8,023.700 6,505.790 13,250.000
Autonomous Bodies - 4,797.240 -
Provinces - 2,296.160 -
B. Project Grants 581.000 2,471.541 546.003
Federal Projects 581.000 1,773.246 546.003
Autonomous Bodies - - -
Provinces - 698.295 -
(3) Programme Loans 87,896.869 59,847.306 276,957.740
(4) Other Loans 702,000.000 930,669.460 2,502,450.000
Total External Resources 1,118,023.833 1,403,155.987 3,032,324.587
(1+2+3+4)Page 68
Chapter 9: PRIVATIZATION PROCEEDS
9.1 Privatization in Pakistan is an important economic reform policy tool, for generating
growth and to expunge structural inefficiencies, by removing false barriers and opening
up the economy to competition. The Privatization program is part of the economic and
structural reforms agenda of the Government of Pakistan that along with deregulation and
good governance, seeks to enhance the growth and productivity of Pakistan’s economy,
by harnessing the private sector as its engine of growth. It takes an integrated approach,
towards enhancing the private sector’s role and goes beyond the transfer of public assets
to the private sector, by identifying the linkages and role of regulation, good governance,
market competition in fostering conditions that provide incentives for the private sector to
invest in providing goods and services efficiently.
9.2 The Privatization Commission Ordinance, 2000 was promulgated on 28th September,
2000 to establish "Privatization Commission" for implementation of privatization policy of
the federal government.
9.3 Section 16(2) of the said Ordinance envisages that the privatization proceeds shall
be utilized by the Federal Government as follows:-
(a) ten percent shall be used for poverty alleviation programmes ; and
(b) the remaining ninety percent for retirement of the Federal Government
debt
9.4 The estimates of privatization proceeds are given below:
Table 47
Privatization Proceeds
(Rs. in Million)
2018-19 2018-19 2019-20
Description
Budget Revised Budget
Privatization Proceeds - - 150,000*
*subject to successful processPage 69
Chapter 10: FEDERAL DEVELOPMENT ASSISTANCE TO PROVINCES
10.1 The provinces fund their respective ADPs from two sources i.e Self-Financing and
Federal Assistance.
10.1.1 Self Financing
10.1.1.1 Largely the Provinces finance their respective ADPs out of their budgetary
resources comprising self-generated receipts as well as share in Federal revenue receipts
i.e Divisible pool taxes and straight transfers. However, they also rely on the assistance
provided by Federal Government.
10.1.2 Federal Assistance
10.1.2.1 The Provinces also receive Federal assistance in the shape of Cash Assistance
and Foreign Project Assistance i.e Loans and grants.
10.1.3 The provincial development scenario has been depicted in the following tables
from difference angles;
Table 48
Financing of ADPs of Provinces
(An Overview)
(Rs. in Million)
2018-19 2018-19 2019-20
Description
Budget Revised Budget
Self-Financing of ADPs by Provinces 814,819.078 413,763.710 748,850.642
Federal Assistance 198,180.922 171,236.290 163,149.358
Total Provincial PSDP 1,013,000.000 585,000.000 912,000.000
Table 49
Financing of ADP of Balochistan
(Rs. in Million)
2018-19 2018-19 2019-20
Description
Budget Revised Budget
Annual Development Programme 97,248.000 56,160.000 87,552.000
Provincial Contribution 88,017.600 49,906.310 79,492.000
Federal Assistance 9,230.400 6,253.690 8,060.000
I. Cash Assistance - 543.000 1,032.000
Japanese Grant - - -
Programme Loan - 543.000 1,032.000
II. Foreign Project Assistance 9,230.400 5,710.690 7,028.000
Loan 4,079.000 2,314.000 3,388.000
Grant 5,151.400 3,396.690 3,640.000Page 70
Table 50
Financing of ADP - Khyber Pakhtunkhwa
(Rs. in Million)
2018-19 2018-19 2019-20
Description
Budget Revised Budget
Annual Development Programme 176,667.200 102,024.000 159,052.800
Provincial Contribution 124,384.300 54,578.764 119,486.967
Federal Assistance 52,282.900 47,445.236 39,565.833
I. Cash Assistance 12,703.140 19,967.535 12,965.500
Japanese Grant 4,485.000 4,485.000 -
Programme Loan 8,218.140 15,482.535 12,965.500
II. Foreign Project Assistance 39,579.760 27,477.701 26,600.333
Loans 30,457.095 20,541.850 17,821.756
Grants 9,122.665 6,935.851 8,778.577
Table 51
Financing of ADP - Punjab
(Rs. in Million)
2018-19 2018-19 2019-20
Budget Revised Budget
Annual Development Programme 522,910.600 301,977.000 470,774.400
Provincial Contribution 434,573.760 215,378.926 407,254.358
Federal Assistance 88,336.840 86,598.074 63,520.042
I. Cash Assistance 24,809.329 34,503.877 35,840.040
Japanese Grant - - -
Programme Loan 24,809.329 34,503.877 35,840.040
II. Foreign Project Assistance 63,527.511 52,094.197 27,680.002
Loans 62,993.131 52,094.197 27,019.202
Grants 534.380 - 660.800
Table 52
Financing of ADP - Sindh
(Rs. in Million)
2018-19 2018-19 2019-20
Description
Budget Revised Budget
Annual Development Programme 216,174.200 124,839.000 194,620.800
Provincial Contribution 167,843.418 93,899.710 142,617.317
Federal Assistance 48,330.782 30,939.290 52,003.483
I. Cash Assistance 1,449.453 2,232.520 870.453
Japanese Grant 45.453 - 45.453
Programme Loan 1,404.000 2,232.520 825.000
II. Foreign Project Assistance 46,881.329 28,706.770 51,133.030
Loans 39,906.009 25,477.070 44,069.660
Grants 6,975.320 3,229.700 7,063.370Page 71
Table 53
Federal Development Assistance to Provincial Governments
A Consolidated View
2018-19 (Budget)
(Rs. in Million)
Description Balochistan KPK Punjab Sindh Total
Development 97,248.000 176,667.200 522,910.600 216,174.200 1,013,000.000
Programme
Prov Contribution 88,017.600 124,384.300 434,573.760 167,843.418 814,819.078
Fed Assistance 9,230.400 52,282.900 88,336.840 48,330.782 198,180.922
I. Cash - 12,703.140 24,809.329 1,449.453 38,961.922
Assistance
Japanese Grant - 4,485.000 - 45.453 4,530.453
Programme Loan - 8,218.140 24,809.329 1,404.000 34,431.469
II. Foreign Project 9,230.400 39,579.760 63,527.511 46,881.329 159,219.000
Assistance
Loans 4,079.000 30,457.095 62,993.131 39,906.009 137,435.235
Grants 5,151.400 9,122.665 534.380 6,975.320 21,783.765
Table 54
Federal Development Assistance to Provincial Governments
A Consolidated View
2018-19 (Revised Budget)
(Rs. in Million)
Description Balochistan KPK Punjab Sindh Total
Development 56,160.000 102,024.000 301,977.000 124,839.000 585,000.000
Programme
Prov Contributin 49,906.310 54,578.764 215,378.926 93,899.710 413,763.710
Fed Assistance 6,253.690 47,445.236 86,598.074 30,939.290 171,236.290
I. Cash 543.000 19,967.535 34,503.877 2,232.520 57,246.932
Assistance
Japanese Grant - 4,485.000 - - 4,485.000
Programme Loan 543.000 15,482.535 34,503.877 2,232.520 52,761.932
II. Foreign 5,710.690 27,477.701 52,094.197 28,706.770 113,989.358
Project
Assistance
Loans 2,314.000 20,541.850 52,094.197 25,477.070 100,427.117
Grants 3,396.690 6,935.851 - 3,229.700 13,562.241Page 72
Table 55
Federal Development Assistance to Provincial Governments
A Consolidated View
2019-20 (Budget)
(Rs. in Million)
Description Balochistan KPK Punjab Sindh Total
Development 87,552.000 159,052.800 470,774.400 194,620.800 912,000.000
Programme
Prov Contributin 79,492.000 119,486.967 407,254.358 142,617.317 748,850.642
Fed Assistance 8,060.000 39,565.833 63,520.042 52,003.483 163,149.358
I. Cash 1,032.000 12,965.500 35,840.040 870.453 50,707.993
Assistance
Japanese - - - 45.453 45.453
Grant
Programme 1,032.000 12,965.500 35,840.040 825.000 50,662.540
Loan
II. Foreign 7,028.000 26,600.333 27,680.002 51,133.030 112,441.365
Project
Assistance
Loans 3,388.000 17,821.756 27,019.202 44,069.660 92,298.618
Grants 3,640.000 8,778.577 660.800 7,063.370 20,142.747
Table 56
FEDERAL DEVELOPMENT ASSISTANCE TO PROVINCIAL GOVERNMENTS
(Province-wise break up)
(Rs. in Million)
2018-19 2018-19 2019-20
Province
Budget Revised Budget
Balochistan 9,230.400 6,253.690 8,060.000
Khyber Pakhtunkhwa 52,282.900 47,445.236 39,565.833
Punjab 88,336.840 86,598.074 63,520.042
Sindh 48,330.782 30,939.290 52,003.483
Total 198,180.922 171,236.290 163,149.358