1

PolicySymposiumonTaxation&EnergyReforms

ProceedingsReportbySustainableDevelopmentPolicyInstitute(SDPI)

March2014

Islamabad

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All rights reserved. No part of this documentmay be reproduced or transmitted in any

form or by any means, electronic or mechanical, including photocopying, recording or

information storage and retrieval system, without prior written permission of the

publisher.

TheopinionsexpressedinthisdocumentaresolelythoseoftheparticipantsofthisPolicy

Symposium, and publishing themdoes not in anyway constitute an endorsement of the

opinionbytheSDPI.

SustainableDevelopmentPolicy Institute isan independent,non-profit research institute

onsustainabledevelopment.

March2014

2014bySustainableDevelopmentPolicyInstitute

MailingAddress:POBox2342,Islamabad,Pakistan.

Telephone:+(92-51)2278134,2278136,2277146,2270674-76

Fax:+(92-51)2278135URL:www.sdpi.org,www.sdpi.tv

ThisreportispreparedbythefollowingteamatSDPI:

Dr. Vaqar Ahmed

Saad Shabbir

Muhammad Adnan

Muhammad Zeshan

Muhammad Hamza Abbas

Samavia Batool

Safwan A. Khan

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Table of Contents

1. Background ................................................................................................................................... 5

2. Creating Momentum ..................................................................................................................... 6

3. Inaugural Session .......................................................................................................................... 7

4. Session I: Taxation Reforms in Pakistan –Way Forward ............................................................. 12

Take Away Messages from Session-I .................................................................................................... 17

5. Session II: Energy Sector Challenges and Current Options ......................................................... 18

Take Away Messages from Session-II ................................................................................................... 23

6. Annex – A: Policy Brief on Energy Reforms ..................................................................................... 24

7. Annex – B: Policy Brief on Taxation Reforms .................................................................................. 31

8. Annex – C: Symposium Agenda ....................................................................................................... 37

9. Annex – D: Media Coverage Links .................................................................................................... 38

10. Annex – E: Symposium Participants ............................................................................................... 39

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List of Abbreviations

CNIC Computerized National Identity Card

DISCOs Distribution Companies

FBR Federal Board of Revenue

GDP Gross Domestic Product

GENCOs Generation Companies

GST General Sales Tax

IMF International Monetary Fund

IPP Independent Power Producer

IR International Relations

LNG Liquefied Natural Gas

NA National Assembly

NADRA National Database and Registration Authority

NFC National Finance Commission

NTN National Tax Number

OGRA Oil and Gas Regulatory Authority

PA Provincial Assembly

PSE Public Sector Enterprises

SRO Statuary Regulatory Order

US United States

USD United States Dollar

VAT Value Added Tax

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1. Background

SDPI is a policy research institute and the oldest civil society think tank in Pakistan, which

produces knowledge on sustainable development to enhance the capacity of government

and private sector in making informed policy decisions and to engage civil society on issues

of public interest.

In November 2013, SDPI brought together political representatives, civil society

organizations, business community, media, academia, and practitioners of economic policy

to discuss and form a consensus around future demands of Pakistan’s socio-economic

challenges. The discourse mainly focused on taxation and energy reforms in Pakistan and

intended to serve as an entry-point for debate on inclusive economic governance.

This symposium was appreciated by Finance Minister Ishaq Dar in his speech to the civil

society and media representatives on 12th December 2013. Furthermore, Minister for

Planning, Development and Reforms Ahsan Iqbal deputed the Chiefs of economic sections

in Planning Commission to attend the daylong proceedings and carry the input for the

under formulation Vision 2025.

SDPI’s research team also concluded briefing papers on people’s perceptions about

economic reforms, future of taxation regime in Pakistan, and energy sector reforms

appraisal (Annex A and B). These papers forwarded to the participants at the time of

invitation provided a basis for structured discussion during the symposium. A detailed

description of speakers and discussants at the symposium may be seen in Table 1. The

agenda was carefully implemented so that the audience could be allowed sufficient time for

open discussion after each session.

There was wide media coverage of the symposium, as it addressed the current issue of tax

and energy right after the inception of the new government in October 2013. SDPI tried to

maintain a momentum through its follow-up report, ‘Taxation by Misrepresentation’

(weblink: http://ow.ly/tbPAI). This report published the official tax records of the

parliamentarians in federal and provincial assemblies. It was well-received by the

government and the Finance Minister directed his team to publish (on annual basis) tax

directory of all parliamentarians. Furthermore, Federal Board of Revenue (FBR) was

directed to issue NTN numbers to all those parliamentarians who had not yet accomplished

this obligation.

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2. Creating Momentum

After the formation of new political government in the aftermath of 2013 general elections,

it was felt that a baseline survey should be conducted where by people’s perceptions about

key economic reforms and their expectations from the new government should be

registered. Such a survey should be guided by current reports on economic reforms which

will ultimately help in drafting a household and firm-level questionnaire.

Keeping in view the above-mentioned, SDPI conducted a household and firm-level survey,

situation analysis reports on energy and taxation reforms as well as policy briefs for the

practice community and media. This information was supposed to inform the debates at

various policy discussion forums including:

a. Policy Symposium on Taxation and Energy Reform 29th November 2013

b. 16th annual Sustainable Development Conference 10th December 2013

c. Launch of the report ‘Taxation by Misrepresentation’ 23rd December 2013

d. Symposium on draft report ‘Appraisal of Iran-Pakistan Gas pipeline) 20th January 2014

In order to keep the debate alive in the popular media, SDPI’s Resource Center has

translated the survey reports, situation analysis papers and briefs in to Urdu and

disseminated to heads of media organizations and economic correspondents. A plan to hold

a special session with economic and business reporters is underway in next quarter in

order to provide them with a stock of evidence produced under the SDPI’s initiative on

‘Inclusive Policy Reforms Debate’.

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3. Inaugural Session

“There is a dire need for tax administration reforms both

at the federal & provincial levels and revisiting SRO

regime”

-Dr. Vaqar Ahmed, Deputy Executive Director, SDPI

“Parliamentarians should also abide by the rules and pay

their due taxes.”

-Nasreen Jalil, Chairperson, Senate Standing Committee

“The collection of electricity bills from public &private sectors

needs better management.

The target of the current government is fiscal sustainability by

revenue collection, expenditures controls, & efficiency at PSEs”

-Dr. Khaqan Hassan Najeeb, DG Economic Reforms Unit

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“Agriculture sector shouldn’t be taxed, as it is the backbone of

industry. The right decision should be to tax the people and

put those behind bar who do not pay.”

-Senator Mohsin Khan Leghari

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Dr Vaqar Ahmed, Deputy Executive Director of SDPI, highlighted the objectives for

organizing the Policy Symposium on Tax and Energy Reforms.

The economy of Pakistan is undergoing a rough patch and the International Monetary Fund

(IMF) has set a heavy footprint, said Dr Ahmed quoting the Prime Minister in a recent

meeting with the business community. The current law and order situation has curtailed

the domestic and foreign investments. Several investors have met the top leadership of the

country. While memorandums of understanding have been signed, little has materialized in

the form of foreign direct investment. The domestic capital formation also remains low.

To make the matters worse, an acute balance of payment crisis has brought the foreign

exchange reserves and Pakistani rupee under immense pressure. The current value vis-à-

vis other foreign currencies has been termed an overvaluation. The key pressures on the

balance of payment will also continue to impact domestic inflation through rising costs of

imports. With proceeds from the coalition support fund and 3G licenses, slow to

materialize the government is left with no choice but to agree to the course correction

suggested under the IMF programme.

With falling value of currency the cost of external debt will also see a rise in rupee terms.

This can exacerbate the pressure on cost-push inflation. Already the Finance Minister has

admitted before parliament that a large part of rupee devaluation is due to the ongoing

debt retirement.

On taxation reforms, Dr Ahmed said that there is a dire need to strengthen the tax

administration reforms both at the federal and provincial levels and revisit

exemptions/SRO regime as a whole. Demand-side accountability tools can be used towards

greater realization of tax targets. Agricultural and service taxes should also be considered,

he added. A directory containing parliamentarians’ annual tax records should be published

by FBR.

While speaking about the energy sector reforms, Dr Ahmed said that the energy shortages

are a major hindrance in the revival of short-term economic growth. Although, there are

many innovative solutions to energy being prescribed in the popular media, their

implementation has been very slow. It is important now that the new government should

undertake the painful reforms in energy sector including: a) putting in place a tariff

structure that covers full economic cost, b) eliminating untargeted, hidden and cross

subsides, and c) plugging transmission and distribution losses.

It is in this background that SDPI wishes to open a public debate on key economic issues

and keep it focused for the time being on energy and taxation reforms desired for realizing

economic growth potential and fiscal sustainability respectively.

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Dr. Khaqan Najeeb, Director-General, Economic Reforms Unit, Ministry of Finance said

that the country needs a stable macroeconomic environment in order to implement

policies to address inequality and targeted welfare regimes. We really need to decide

whether we want the government to hold all the big industries or do we need to move

towards private sector growth and privatization of public sector enterprises. We have

shortlisted 31 entities for privatization in which strategic partnerships would be

encouraged. We aim to induct professional managers in large public sector organizations

which can in turn deliver on key performance indicators under a results-based

management. Instead of managing these entities on a day-to-day basis, the government

should in turn focus on better policy-making and effective regulation.

The developing world has observed high growth rates surpassing 5% over the last decade,

which has had a huge impact on the energy consumption in those regions. In his view, there

is a lot of literature developed in Pakistan and so there is informed decision making. The

planning of Vision 2025 involves collective thinking of all the major stakeholders.

The target of the current government is fiscal sustainability by revenue collection,

expenditure controls, and reform of energy sector and public sector enterprises. Our focus

should slowly move in the direction of development of exporting sectors and building upon

the remittance inflows.

On taxation reforms, the government will devise a national harmonized tax strategy with

the help of provincial governments. The tax base will be broadened and statutory

Regulatory Order (SRO) would be reviewed. The target for the tax to GDP ratio is set at

15% by the end of IMF program, which is currently at an average of 9% over the past five

years. The government is also committed to introduce data mining, warehousing and

increased auditing in taxation system.

The efforts of the government in energy sector include moving towards a cheaper fuel mix

and enhanced efficiency through technological advancement of the GENCOs to bring down

the cost of electricity production. The line losses have to be decreased from 23% to 16%.

The collection of bills from both public and private sectors needs improvement. Similarly

demand side approach in energy management should be introduced, and we should move

towards green energy from the medium to long-term.

Senator Nasreen Jalil, Chairperson of Senate Standing Committee on Finance, Revenue,

Economic Affairs, Statistics, Planning and Privatization, while lauding the work done by

SDPI and Mr Umer Cheema, which, she said, shows that our parliamentarians are thinking

themselves as above the law and not filing income tax returns.

She warned that the country is heading towards an unsustainable fiscal deficit, high rate of

inflation and unemployment. The growth rate is stagnant at 3% (medium term average)

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annually. This is lower than the growth of labour force in Pakistan. The foreign exchange

reserves stand at USD 2.5 billion and US has held back payments of about USD 500 million.

Referring to a World Bank report that shows that Pakistan is at the brink of bankruptcy

with Rs 1.5 trillion budget deficits annually over the medium term, she said: No audit is

being conducted for the payments being made for settling the circular debt for energy.

She suggested that parliamentarians should abide by the rules. The FBR system is so slow

that in some cases even if someone is not paying tax, there is no reminder or penalty from

the FBR. In the end she emphasized on the low tax receipts from agriculture sector, which

is less than 2% of the total tax receipts.

Senator Mohsin Khan Leghari believed that tough decisions are needed instead of

popular decisions. The right decision should be to tax the people and put those behind the

bar, who do not pay taxes.

Tax collection is a provincial subject now, but there is a weak mechanism to stop tax

evasion. Indirect taxes are unfair to the poor, who end up bearing this burden. It has to be

minimized and direct tax regime needs to be strengthened. Instead of talking more about

expenditure requirements of the government, we should suggest ways to generate revenue.

He also spoke on the importance of water reservoirs in the country. Though, energy is very

important source of growth for the economy, so is water. Rural economy has been ignored

by all the governments in the past. Agriculture sector provides raw material for the

industry and remains an important source for growth in the textile industry. In this

perspective, the government should remain careful when talk about agriculture taxation in

Pakistan. A more open debate should take place on agriculture taxes.

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4. Session I: Taxation Reforms in Pakistan –Way Forward

“The FBR should have full autonomy. The tax systems should be easy, less

time consuming and regular audits should be conducted.”

Noman Ishtiaq, Economic Consultant SDPI

“The rates of direct taxes should be revised and in some cases

increased with proper accountability. Sales tax should be in single

digits.”

Shahid Hussain Asad, Member IR policy, FBR

“FBR intends to send notices to 100,000 people that will take 32 years

if we rely on the current system.”

Sakib Sherani, CEO Macroeconomic Insights

“61% of the parliamentarians do not have a national tax number

(NTN).”

Umar Cheema, Investigative Journalist, The News

“Agriculture income must be taxed and provinces should be

responsible for collection of these taxes.”

Nasreen Jaleel Chairperson Senate Standing Committee

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Mr Noman Ishtiaq, Economic Consultant, SDPI, gave a detailed presentation on the study

conducted by SDPI on taxation reforms in Pakistan. He said that the government provides

general services through revenue collected from taxes. The system should be fair,

equitable, transparent and administratively strong.

The debt to GDP ratio is going to rise above 60% in this year, as the country has borrowed

from IMF. The more worrisome fact is that the federal tax to GDP ratio will remain low.

According to the 7th NFC award, federal government’s total revenue of 57% is going to

provinces. The revenue boards of provincial governments are reluctant to act fast to

generate more revenues because they are getting a substantial share from the federal

budget. He also said that agriculture and property taxes need to be revised.

His presentation showed that there are three major problems associated with taxation

system in Pakistan:

1. Exemptions, concession and preferential treatments

These exemptions and concessions are part of the annual budgetary proceedings

and the government can also issue SROs without parliament’s approval. To-date

86% of customs tariff lines are affected by SROs that lead to revenue leakage of 3-

4% of GDP amounting to Rs 600-800 billion. There is no legal requirement to

report the value lost due to SROs in the federal or provincial budgets.

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2. Tax Administration

The tax administration is inefficient, fragmented and has a rent seeking behavior.

According to a survey conducted by SDPI, 68% of households thought that

Pakistan tax system is not fair, 60% firms thought that there is corruption, and

10% said that new sectors needed to be brought in the tax net.

3. Narrow Tax Base

There are only 0.7 million taxpayers in the country. Our legislators are among the

defaulters as 61% of parliamentarians don’t pay tax, and 62% ministers don’t pay

tax. Average tax rates are higher in Pakistan as corporate tax stands at 34% and

sales tax is now 17%. The proceeds from agriculture taxation remain low. In the

global taxpayers’ index, Pakistan is ranked 162. It takes 560 hours for filing tax

returns, which is the loss of taxpayers time.

Mr Ishtiaq recommended that the tax laws and SRO regime should be revisited and tax

exemptions should be subject to approval of parliament. The FBR should have full

autonomy. The tax systems should be easy, less time consuming and regular audits should

be conducted. Sectors such as agriculture, property, money and capital market should be in

the tax net.

Mr. Shahid Hussain

Asad, Member IR

Policy, Federal Board

of Revenue said that

individual rates are not

more than 30% and

will be further lowered

in order to address the

chances of default. We

propose that rates of

direct taxes should be

revised and in some

cases increased with

proper accountability

structures, whereas

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sales tax should be at single digit and no return be

allowed on that.

Pakistan should move towards a full Value Added Tax

(VAT) mechanism and its rates should be minimum.

This will in turn help the documentation of currently

growing informal economy. Our business community is

not ready to cooperate with FBR to formalize policies

for improved taxation system in the country. He also

supported the idea of SRO being subject to approval of

parliament.

Mr Sakib Sherani, Chief Executive Officer, Macroeconomics Insight, expressed his

reservations on the progress of FBR. The tax officials go to the same taxpayers every year

without improving the tax base in the country.

A large part of the formal sector is hiding

their sales and has actually gone to the

informal sector. National statistics now

show the informal sector in the books, which

needs to be checked. He also said that tax

policy and administration is very important

for adequate collection of taxes. The biggest

thing we need to do is to bring back the

confidence of the taxpayers.

FBR recently highlighted 176,000 people

with multiple bank accounts, houses and

international travelling who do not pay their taxes. Now this list has expanded to 3.2

million. FBR intends to send notices to 100,000 people that will take 32 years if we rely on

the current system. Automation of tax system, human resource capacity and organization’s

structural issues need to be corrected.

According to a recent report by Mr Umer Cheema, Investigative Journalist, The News, over

half of the parliamentarians do not have a national tax number (NTN). A recent news article

stated that FBR selected 50,000 people for audit but now this effort has been suspended.

The reason was that many of the relatives of our legislators fall in that list of defaulters.

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Senator Ms Nasreen Jalil, Chairperson of Senate Standing Committee on Finance,

Revenue, Economic Affairs, Statistics, Planning and Development and Privatization has

shown her concerns for the depleting revenues of the government. She said that SROs are

creating monopolies in the country. Legislation should be strengthened regarding issuance

and management of SROs. These SROs must be regularly presented in parliament. The FBR

must be an autonomous body except for the case of SROs.

It is our duty as parliamentarians to set an example for the other taxpayers. Tax burden is

ultimately on the poor and the middle class. The agriculture incomes must be taxed and

provinces should be responsible for collection of these taxes.

The exporting community also needs a level playing field. At the provincial level, autonomy

must be given for the imposition of withholding taxes. There are several innovative forms

of taxation around the globe and we need to adopt the same; this will help the government

from expensive borrowing. We also need trained human resource in FBR and provincial

revenue collection departments.

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Take Away Messages from Session-I

• Tax exemptions and concessions need to be phased out

• Any future tax exemption in the form of SRO should be subject to parliamentary

approval

• The exemptions should be calculated using internationally recognized methods and

reported in the budget each year

• The political intervention in the operations of FBR should be minimized. It should be

fully autonomous to carry out its mandate.

• A restructuring of FBR is also necessary to create functional expertise.

• FBR should upload its strategic plans and report key performance indicators on its

website.

• The provincial revenue departments should not rely on FBR and exercise their

autonomy to collect agriculture, property and service taxes.

• Tax compliance should be made cheap and avoidance costly.

• Serious and certain action should be taken against the tax defaulters by the FBR.

• Pakistan still relies heavily on withholding taxes, which is not a good international

practice

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5. Session II: Energy Sector Challenges and Current Options

“The subsidies are aimed to give relief to the poor but

unfortunately only 0.3% of the total subsidy reaches them.”

Dr. Vaqar Ahmed, Deputy Executive Director, SDPI

“The production of electricity should solely be driven by efficiency

rather than by bureaucracy and corruption.”

Dr Musaddiq Malik, Advisor to Prime Minister for Water & Power

“Half of the trade deficit is due to energy imports, which can be reduced.”

Kaiser Bengali, Advisor to Chief Minister, Balochistan

“There is a lack of exploration activities in a country which needs them

most.”

Saeed Ahmed Khan, Chairman, OGRA

“The government needs to build an environment to facilitate an

increase in investment in energy sector."

Syed Mohammad Ali, CEO Engro PowerGen

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The government is unable to cover its cost of providing energy mainly due to the lower

than economic cost tariff, presence of various forms of subsidies, transmission and

distribution losses and theft of power and gas, said Dr Vaqar Ahmed, Deputy Executive

Director, SDPI. The subsidies are aimed to give relief to the poor but unfortunately in 2012

only 0.3% of the total subsidy reached those below the poverty line, he added.

On top of that, the unwillingness to pay for electricity bills has worsened the current

situation. In a city like Hyderabad, the main distribution company is only able to recover

bills from 60% consumers.

Around 24,000 cases of electricity theft have been registered this year, but there has been

no serious punishment. A survey conducted by the SDPI reveals that people have agreed to

pay higher electricity bills in the absence of load-shedding; around 75% people in

Faisalabad are willing to pay higher unit price. A rise in electricity prices has also been seen

in the past to promote theft, which can

only be reduced through bottom-up

accountability.

Going forward the key challenges that

Pakistan faces in energy sector are the

energy demand and supply gap, its

affordability, and inefficiency in

electricity generation; argued Dr

Mussaddiq Malik, Advisor to Prime

Minister on Water and Power. It is not

possible to move forward in a

sustainable manner when the country

faces an average 14 hours of load-shedding.

At regional level, Pakistan does not have comparative advantage over the electricity

generation. Pakistan produces electricity at much expensive rate as compared to India. The

main reason is that 44% of the total energy mix comes from furnace oil and diesel. India

has an advantage in the cheaper production of coal based energy which Pakistan severely

lacks. The current average cost of power production in Pakistan is 9.5 cents a unit while

India produces at 7 cents a unit. In Pakistan, there is a misconception that the hydel-power

is the cheapest source of electricity generation. Even if we consider the replacement cost,

the new hydel-electricity will be charged at 8 cents a unit, still more than India’s production

cost.

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However, taking the right decisions now can bridge the supply-demand gap in energy

sector. Currently, the transmission and distribution losses are around 23 per cent in

Pakistan, which needs to be brought down to 16 per cent, while in China these losses are

around 6%.

Out of the 22 million residential connections in Pakistan, around 68 per cent consume less

than 200 units monthly. Even though the overall demand for electricity is trivial in

Pakistan, the government is unable to cater to it. Coal may be dirty but seems like a

possible way out of this crisis. We will have to compensate the environmental losses due to

coal through various means, including addition of renewable energy in our energy mix.

A major portion of the electricity deficit is due to the ever rising uncollected bills.

Electricity is produced at 9 cents a unit and delivered at 14.6 cents a unit to the consumer

who ends up paying not only for his own bill but also for the theft and GST on theft. The

provision of subsidy to public sector power production makes the market structure

uncompetitive and results in the lack of investment.

The production of electricity should solely be driven by efficiency rather than by

bureaucracy and corruption. Efficiency can be increased by regulating the merit order,

transparency and accountability. Increasing the efficiency can reduce the cost of electricity

production by 30%. The government should revise its policies to provide fuel to the most

efficient power plants only.

The government should revise the tariffs downward overtime if it is successful in meeting

its variable costs and increase efficiency in production. Efficient and economical production

of electricity can be helped through optimal energy mix, increased domestic and foreign

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investment in energy, reduced cost of distribution, and elimination of cross and hidden

subsidies.

Oil constitutes 26% of the total energy imports from which 92% is consumed by the

transport sector only, said Kaiser Bengali, Advisor to Balochistan Chief Minister. Half of

the trade deficit is due to energy related imports, which can be reduced by decreasing the

share of energy imports in total imports.

Currently, around 1.1 million applications are pending for new gas connections while

Pakistan does not have adequate gas supply to provide for the current demand of 6 million

gas connection, said Mr Saeed Ahmed Khan, Chairman, Oil and Gas Regulatory Authority.

The gas losses are around 12 per cent, which cost more than 13 billion annually. From

these losses, more than 60 per cent losses are non-consumer gas theft, which is higher than

the technical losses. The gas thefts are highest in three districts, including Gujranwala,

Faisalabad and Lahore. The

additional problems arise from the

political favoritism as various

politicians demand for providing

gas to uneconomic distant clients.

There is a lack of exploration

activities in the country, which

needs them most. A gas network

from a well to the consumer

pipeline takes three to eight years

while the most efficient project

took 21 months to be operational.

Exploration activities take time, so

in the short-term import of gas is perhaps the only option. However, importing LNG also

takes 12-18 month time due to the construction of adequate port and land infrastructure

that supports LNG imports.

The government lacks capacity to reform the energy sector, said Syed Mohammed Ali,

Chief Executive Officer at EngroPowergen. Energy imports comprised of USD 12 billion

import bill in 2011. By 2020, the power demand in Pakistan would have grown to 26,000

MW and consequently the import bill would rise up to USD 14-22 billion if we continue to

import the same energy mix.

Pakistan should move from a fixed tariff structure for IPPs to international competitive

bids to reduce the cost of production. The government needs to build an environment to

facilitate an increase of investment in energy sector. Within our current capacity, the right

22

energy mix and pricing structure

would attract both foreign and local

investment. Expensive methods like

furnace oil based energy mix add to

the circular debt. Pakistan has

extensive gas supply network

which is not working at its potential

capacity. Further, cross subsidy in

the power sector need to be

revisited. Increasing the share of

Thar coal in energy mix can reduce

the cost of power generation in the

country.

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Take Away Messages from Session-II

• The government needs to put in place a tariff structure that covers its economic cost

of providing energy.

• There should be performance contracts for grid stations and DISCOs that have

specific clauses on reduction in distribution losses and full collection of receivables.

• The allocation of fuel to GENCOs and IPPs should be linked with their efficiency

levels

• The subsidies should be targeted to the poor only, consuming less than 100 units of

electricity a month.

• All subsidies, other than the lifeline block, should phase out within the next 24

months.

• Even for the poor, subsidy mechanism should be replaced with more efficient cash

in hand transfer to the poor.

• Responsible institutions should be empowered and held accountable for preventing

transmission and distribution losses as well as theft.

24

6. Annex – A: Policy Brief on Energy Reforms

25

How to Solve Pakistan’s Power Crisis?

The Economic Survey of Pakistan notes that during 2011-12 around USD 4.8 billion or 2 percent of

gross domestic product (GDP) was lost due to power sector outages. This is a major factor behind

Pakistan’s disappointing economic performance over the past 5 years, with GDP growth averaging

under 3 percent (GoP 2013).

The National Power Policy by the new government recognises that, in addition to the direct adverse

impact on growth, the power crisis is bleeding the national exchequer through still high hidden and

cross subsidies as well as administrative and line losses (theft). However SDPI’s household-level

survey conducted to probe people’s willingness to pay higher tariffs in the wake of power sector

reforms, reveals little understanding of the causes of the crisis. In this brief we touch upon 3 such

causes, namely: inability of consumers to understand that elimination of load-shedding will require

full economic-cost pricing, insistence of politicians on maintaining untargeted subsidies (having

weak impact for poor), and inability to stem administrative and line losses (including theft).

1. Willingness to pay for power

The most fundamental principle in economics is ‘getting prices right’. The price of a good indicates

how much is consumed (demand) and how much is produced (supply). When fixing tariffs it is

important that they cover the costs of generating, transmitting and distributing electricity. Failure

to do so will mean that generation companies (GENCOs) and distribution companies (DISCOs) lose

money and go out of business.

We establish here the unwillingness at household-level to pay for the power consumed. Below we

exhibit how the recoveries of some very large DISCOs have deteriorated over time. Their clients

have not paid for the power consumed. In Hyderabad, for example, only 60% of the power supplied

in 2012 was paid for – in a city of over 6.5 million people.

DISCO-wise Revenue Collection

DISCOs 2007-08 2008-09 2010-11 2011-12

PESCO 71% 67% 78% 68%

HESCO 77% 68% 59% 60%

QESCO 86% 80% 41% 36%

Source: DISCOs Performance Statistics Reports 2008-2012

DISCOs are also unable to adopt the normal commercial practices in other countries of

disconnecting customers for non-payment because of unclear legislation and political pressure. To

add to this, federal and provincial governments are also power sector defaulters. Such chronic

default by government and non-government consumers is a major reason behind recurrence of

circular debt.

26

Source: SDPI Survey Unit 2013

SDPI’s household-level survey results, (above) reveal little understanding among the consumers

that tariffs do not cover costs and that this is the main cause of power cuts and stoppages.

Consumers want an end to load shedding, but most say they are not prepared to pay the full

economic cost of producing power.

2. Cost of maintaining subsidies

The fundamental rationale for subsidising electricity tariffs is to augment the paying capacity of the

poorest of poor. However once subsidies are provided across the board, people start to demand

them as their right and politicians feel compelled to maintain this distortive fiscal burden to win

popularity.

Source: Planning Commission of Pakistan, 2012

The above chart illustrates the contradiction between the rationale for subsidies and actual

practice. Only 0.3% of subsidies in 2012 went to the poorest consumers, those using less than 100

units a month. There is no economic or social logic for subsidising the other consumer categories.

No , 82%

Don't

Know, 6%Yes,

12%

Will households pay if power cuts are

eliminated and tariff is increased by 10%?

Domestic-

lifeline (1-

100), 0.3%

Domestic

(1-100),

11.1%

Domestic

(101-300),

38.5%

Domestic

Others, 7.7%

Agriculture,

25.1%

Industrial,

5.9%

Bulk , 0.9%

Commercial,

6.1%Others, 4.3%

Subsidy Outlay 2012

27

Source: Economic Survey of Pakistan, 2013

The table above shows the wide variation in subsidies across sectors, regions and consumption

levels. Even residential consumers using above 600 units were being subsidised in 2012. While the

new government in 2013 has rationalized subsidies, we argue below that the current subsidies are

still more than the global norm of 100 units for a lifeline block.

Since 2005 the typical politician’s response to the power deficit has been to keep subsidising

expenditures and not risk political office by transmitting full economic cost to consumers. Both

power deficits and subsidies have grown in a similar pattern. Suppressed tariffs meant operators

had insufficient funds (or incentive) to fully utilize existing capacity or adopt cheaper sources of

generation.

Source: NEPRA and Planning Commission of Pakistan 2013

There has also been a lack of transparency in subsidy allocation and tariff setting. Most prices are

determined by supply and demand in competitive markets. However, where markets are

uncompetitive government regulation may be needed. Since Pakistan’s DISCOs are monopoly

suppliers in their regional markets, NEPRA was established to ensure monopolies are not abused.

NEPRA officials’ autonomy has been breached on several occasions. Most notable was the

intervention by the Judicial authorities which ended up carving out their own role in 2012 and

intervened with orders that hampered implementation of NEPRA orders.

Subsidy by the government on power consumption (Rs/kW)

LESCO GEPCO FESCO MEPCO HESCO SEPCO QESCO PESCO

1. Residential, <700 units 0.4 1.4 1.4 2.9 3.9 3.9 1.4 4.4

2. Industrial, (66.132 KV & above) -

TOU (Peak) 2.1 2.1 2.1 3.1 6.6 6.6 4.0 7.1

3. Agricultural, 5 KW & above -TOU

(Peak) 1.5 1.5 1.5 2.5 6.0 6.0 3.5 6.5

0

100

200

300

400

500

0

1000

2000

3000

4000

5000

6000

7000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Su

bsi

dy

(P

KR

Bil

lio

n)

De

fici

t (M

W)

Power Deficit & Subsidies

Electricity Shortfall (MW) Subsidy to Power Sector

28

3. Administrative and Line Losses

It is unthinkable that responsible governments let incidents of theft and efficiency losses in

generation, transmission and distribution (T&D) pass so easily.

Source: World Development Indicators 2013

The T&D losses in Pakistan are higher than 117 countries in the world. The world average is 8.8%

while in Pakistan these losses stand at 25%.

In August 2013, the Secretary of Water and Power Ministry informed the Senate Standing

Committee that Pakistan loses annually PKR 150 billion (USD 1.7 billion) in line losses and power

theft. Until August 23,770 cases of theft were registered and under trial, but only 3 cases were

punished. Moreover, the fine imposed was under PKR 5,000 in each case.

The above clearly indicates lacunae in the accountability mechanism. This requires amendments in

Pakistan Penal Code so that there is certainty of effective punishment in cases of energy theft.

SDPI’s firm-level survey conducted in major business centres of 4 provinces indicates that the

power sector defaulters are well known even in their own communities. Yet they are never

reported, as there is a strong perception that there will be no effective trial on such instances of

crime.

0

5

10

15

20

25

30

35

40

19

71

19

74

19

77

19

80

19

83

19

86

19

89

19

92

19

95

19

98

20

01

20

04

20

07

20

10

Pe

rce

nta

ge

Power T & D Losses (% of output)

Pakistan Bangladesh Nepal Sri Lanka

29

Source: SDPI Survey Unit 2013

4. Hopes from National Power Policy

While the National Power Policy promises a plethora of reforms aimed at strengthening efficiency,

competitiveness and sustainability – addressing the above 3 fundamental causes of the energy

crisis is of foremost importance.

Tariffs and subsidies: the draft policy recognizes that subsidies should only benefit the poorest of

the poor. The definition of a poor consumer is someone utilizing less than 200 units of electricity a

month. Globally, ‘lifeline blocks’ are typically no more than 100 units a month. We believe that the

current ceiling is still high and should be lowered. Similarly, there is no justification for subsidising

commercial, industrial and bulk users. The policy aims to phase out subsidies over 3 years. Given

the heavy fiscal cost of subsidies we recommend that all subsidies (including hidden and cross

subsidies) - except perhaps a 100 unit lifeline block - should be phased out over the next 24

months.

It is important to understand the incentives of buyers and sellers. A much more effective method of

protecting the poor than subsidizing items like electricity and wheat – without distorting market

functioning – is to provide them (and only them) with cash transfers. Well-functioning targeting

mechanisms have already been developed through Benazir Income Support Program (poverty

scorecard database).

Curbing theft: Unaccounted-for-gas controls should be enforced and the saved gas diverted to the

power sector. The policy notes that just a 10 percent diversion can produce an extra 2000MW.

Current transmission losses of 3.6 percent are higher than the NEPRA allowed losses of 2.5 percent.

This immediately calls for introducing performance contracts (clearly mentioning targets for

reduction in losses) for grid stations under National Transmission and Dispatch Company.

At the DISCOs level as well the power policy aims for a similar mechanism of performance contracts

aimed at increasing accountability of heads of DISCOs. It is further recommended that such

contracts should have specific clauses on reduction in distribution losses and full collection of

receivables from consumers.

35%

59%

6%

Yes No Don't Know

Do you know of power theft in your area?

30

Competing for fuel allocation: The allocation of fuel to GENCOs should be linked with their

efficiency levels. If the Independent Power Producers (IPPs) are better performing in efficiency

terms then IPPs should get preference over GENCOs in fuel allocation. According to Ministry of

Water and Power’s own estimates a 4000mtoe shift from GENCOs to IPPs will save PKR 77 billion

annually. Whereas GENCOs spend PKR 13 billion per month to generate 650 MW, IPPs spend only

PKR 10 million per month to generate 1150 MW.

5. Conclusion

The main objective of this policy brief is to highlight the link between lower than economic-cost

tariffs and load shedding. If tariffs do not cover GENCOs’ operating costs they are unable to buy

sufficient fuel. This is why many power stations are operating below capacity. To eliminate load

shedding Pakistan needs not only to increase utilisation of existing capacity, but also substantial

investment in new capacity. However, investors require tariffs high enough to cover both operating

and capital costs, i.e. including a return on capital invested. There has been minimal investment in

recent years because tariffs have been too low to cover operating, let alone capital, costs. With

growing demand this has meant an inevitable increase in load shedding. The only way to eliminate

load shedding in the short to medium term is by increasing tariffs.

Once consumers understand that artificially suppressing tariffs is largely responsible for load

shedding, it should become easier for the political representatives to take the difficult decision to

reduce untargeted subsidies and pass on the full cost of supplying power to consumers. Finally,

these political representatives will also need to assert themselves and confront the power sector

defaulters and crackdown on theft that is resulting in losses well above international norms.

31

7. Annex – B: Policy Brief on Taxation Reforms

32

Tax Reforms in Pakistan

Taxes matter. Taxes affect citizens, economy of the country, businesses, and delivery of

public services. If a government is unable to collect adequate taxes and use them

effectively then the result is economic instability and poor service delivery to the public.

Pakistan’s taxation system has been receiving increased attention due to its inability to

collect enough revenues required for improving lives of Pakistanis.

Pakistani government spends around 0.7 percent of GDP on health. This is less than half of

what other governments in lower middle-income countries spend on health. On

elementary education, Pakistan spends less than 2 percent of GDP. This is also low when

compared with other regional countries.

One of the main reasons for low investment in social services is low revenue collection.

Total revenue collected by the Pakistani Government, using tax and other measures, is

around 13 percent1 of GDP, which is the lowest among all emerging economies. No country

can afford basic government services with such low levels of revenue.

Revenue to GDP Ratio in selected Emerging Economies

Source: World Development Indicators 2013

The revenue collected is not nearly sufficient to meet public expenditure, which has

averaged 20 percent of GDP over the past five years. The result is high government

borrowing that has led the country into a ‘debt-trap’ (in 2012-13 the Federal Government

paid over 60% of its revenue as interest on loans). Expenditure beyond revenue has also

created economic imbalances, forcing Pakistan to repeatedly seek assistance from the IMF.

In its latest programme, the IMF has advised the Pakistani government to reduce its budget

1 World Development Indicators

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Hun

gary

Ukr

aine

Argen

tina

Polan

d

Brazil

Turk

ey

Mor

occo

South

Afri

ca

Niger

ia

Kenya

Malay

sia

Chile

Mex

ico

Thaila

nd

India

Philip

pine

s

Indo

nesia

Pakista

n

33

deficit. Without radical increases in revenue, this must mean spending cuts and further

deterioration in public service delivery.

The Government collects more than 80 percent of total revenue by imposing taxes. This is

around 10 percent of GDP, of which 9 percent of GDP is collected through Federal Board of

Revenue (FBR).2 This is amongst the lowest rates of tax collection by Federal Government

in the World – excluding oil-producing countries. The tax to GDP ratio has decreased from

around 14 percent in the mid-eighties to 10 percent. By contrast, China has increased its

tax to GDP ratio from 10 percent to over 20 percent since the early nineties.

The Constitution of Pakistan specifies the type of taxes that the Federal and Provincial

Governments can collect. For example, taxes on individual incomes and on company

profits are Federal taxes, while taxes on property and agriculture are provincial taxes. At

the provincial level taxes are collected by provincial Excise and Taxation departments (that

collect taxes from urban areas), Boards of Revenue (that largely collect taxes from rural

areas), and Revenue Authorities / Boards in Sindh and Punjab (that were recently

established to collect sales tax on services).

Provinces have struggled to increase their own tax revenue in recent years. On average 0.4

percent of GDP is collected through provincial taxes. The three main reasons for low

revenue generation are: 1) politicians find it difficult to justify increase in taxes to their

constituencies, primarily because of poor public services, and hence there is lack of political

will; 2) provincial tax collection machinery – especially in rural areas - lacks administrative

skills; and 3) the 7th NFC Award3 increased the provinces’ share of FBR’s taxes from 47 to

57.5 percent, with the rather mild condition that provinces should work with Federal

government to enhance national taxes. This condition was never taken seriously and the

agreement with the provinces under the Award to increase taxes to 15 percent of GDP by

June 2015 is highly unlikely to be met.

The new government has announced its intention to increase the tax to GDP ratio to 15

percent by 2018. This is a big challenge and will require considerable effort by both federal

and provincial governments. To achieve this target, fundamental shifts in tax policy and tax

administration will be required. We highlight three key issues:

1. Exemptions, Concessions and Preferential Treatment

For many years, different governments have allowed extensive tax exemptions,

concessions and preferential treatments. Exemptions are provided in the tax laws, and

through a legal instrument called ‘Statutory Regulatory Order’ (SRO) issued by the Federal 2 Average of past 5 years. For 2012-13 the FBR collected tax equivalent to 8.3% of GDP

3 The mechanism through which tax revenues collected by FBR are distributed between Federal and Provincial governments,

applicable from July 2010

34

Board of Revenue. To date FBR has issued 1,920 SROs. Independent studies estimate

revenue leakage at 3-4 percent of GDP due to: 1) the amount of tax liability faced by

taxpayers that is not paid on time; and 2) revenue loss resulting from preferential

treatment. Losses in 2012 are estimated at between Rs.600 and Rs.800 billion. If tax

evasion - also estimated at 3-4 percent of GDP - is added to this, the total loss in the present

taxation system is roughly equal to total government borrowing each year.

As per Article 77 of the Constitution, Federal taxes will be levied by an Act of Parliament.

However, the tax laws grant the government power to give exemptions, concessions and

preferential treatment without Parliamentary approval. This is almost unheard of in

other parliamentary systems, meaning parliament can be over-ruled by bureaucrats and

Ministers. There is not even a requirement in the law to report the total value of these

exemptions to Parliament.

What is needed is a phasing out of these exemptions and concessions. A number of

exemptions were removed in the Budget 2013-14 and the government has agreed to

review and remove all exemptions through SROs within three years.

We recommend an exemption phase-out plan to be designed by the Government, including

necessary amendments in taxation laws. We also recommend that that any proposed future

exemptions and concessions should be subject to Parliamentary approval so that public

representatives have a say in matters that affect tax revenue. The value of exemptions and

concessions should be calculated using internationally recognised methods and reported in

the budget each year so that Parliament and the public are aware of the resulting revenue

losses.

2. Weak and Inefficient Tax Administration

Tax collection in Pakistan remains non-transparent with substantial instances of rent-

seeking. A 2004 World Bank study found that the FBR suffered from deep institutional and

management weaknesses. The 2005 ‘Tax Administration Reform Project’ had largely failed

to achieve its objectives by 2012. Tax administration organisations (both federal and

provincial) have suffered from inefficient and fragmented management, weak human

resources, lack of supporting systems, and excessive scope for discretion and rent seeking

behaviour. Weak tax administration results in high tax avoidance and opens avenues for

corruption as indicated in the figure below.

SDPI’s Household Survey conducted in May 2013 reveals taxpayers’ lack of trust and

perceived corruption in tax administration as major reasons for not paying taxes.

35

We recommend that; 1) consideration should be given to full autonomy of FBR along the

lines of State Bank of Pakistan – having its own human resource structure and management

to create a professional workforce – independent from the direct influence of the

Government, 2) FBR should be restructured to create functional expertise, 3) FBR should

upload its medium-term strategic plans on its website and monitor and report key

performance indicators on a regular basis, and 4) at the provincial level, newly formed

provincial revenue authorities should take over the functions of existing excise, revenue

and board of revenue departments and focus on enhancing collection of agriculture tax and

property taxes.

3. Narrow Tax Base

Very few Pakistanis pay income taxes. Out of a total workforce of 58 million less than 2

million are registered taxpayers, and last year only 0.7 million people actually paid income

tax. This is roughly 2 people in 100 employed. Of all the lawmakers in the National and

Provincial Assemblies 61 percent did not pay taxes in the year they contested the elections.

51 percent of Senators did not pay tax. 62 percent of Cabinet Ministers did not file tax

returns.4

Of the total income tax collected, more than 60 percent is collected through ‘withholding

tax’5. Withholding tax is not a good international practice. Pakistan’s exceptionally high

dependence on the tax signifies an unusually high proportion of ‘hard-to-tax’ individuals.

Only 28 percent of income tax is collected through deduction at source, or through

voluntary payments by taxpayers. The remaining 12 percent is collected through tax

inquiries by the tax officials.

4 This was reported in the international media and strongly criticised in the UK Parliament.

5 A system in which advance tax is collected at the time of a transaction – e.g. when paying a mobile phone bill – and it is

assumed that the person paying has an income of more than Rs.400,000 per annum – the minimum amount above which

income tax is applicable

37%

40%

29%

Prevent arbitrary levies

Curtailing harrasment

Reduce time towards taxmatters

Why we give informal gifts to tax officials

18%

51%

20%

2%

9%

Declining real incomes

Corruption in tax administration

Lack of trust regarding taxutiliation

Cumbersome tax filing

Others

Why we do not pay taxes

36

Pakistan ranks 162nd in the global ‘paying taxes’ index compiled by the World Bank. There

are many reasons why people do not pay income taxes. As per the survey, it takes an

average of 560 hours (highest in South-Asia) to comply with tax. Another reason is rent-

seeking behaviour of tax officials. SDPI’s survey of informal sector businesses in 2013

found that almost 22 percent do not intend to register with the tax authorities, with a large

proportion afraid of intrusion by tax officials.

Another reason is weak enforcement. Hardly anyone gets convicted for tax crimes. In

2011 the FBR announced that it had access to a list of around 3 million people who do not

pay taxes yet enjoy a lavish lifestyle including frequent foreign visits, more than one bank

account, and number of vehicles and property registrations. The lack of convictions,

discretion for tax officials and lack of documentation together make it easy for people to

evade taxes. Independent studies point to losses due to tax evasion of between 3-4 percent

of GDP each year.

It is essential that Pakistan’s tax system should be seen as fair, adequate, simple,

transparent, and administratively easy to comply with. People’s perceptions regarding

revenue collecting authorities and the Government that provides them with services are

also important. Tax avoidance must be made costly and compliance cheap. If tax leakages

(as identified above) are removed, an extra 6 – 8 percent of GDP of revenue can be realised.

But Pakistan has a long way to go to improve its tax system and until this is accomplished

one cannot expect much improvement in poverty and welfare at grassroots level.

3%

30%27%

37%

Registrationwill curtailgrowth

Afraid ofIntrusion

Compliance iscostly

Lackunderstandingon tax matters

Why we do not register with FBR

37

8. Annex – C: Symposium Agenda

Friday, November 29, 2013

Policy Symposium on Taxation and Energy Reforms in Pakistan

9:45 – 10:00 am Welcome Note Dr. Vaqar Ahmed, Deputy Executive

Director, SDPI

10:00 – 10:45 am Inaugural Session

Dr. Khaqan Najeeb, Director General,

Economic Reforms Unit

Senator Nasreen Jalil, Chairperson

Standing Committee

Mohsin Khan Leghari, Senator

Break

11:15 am – 12:45 pm Taxation Reforms in

Pakistan – Way Forward

Noman Ishtiaq, Advisor SDPI

Shahid Hussain Asad, Member IR Policy,

Federal Board of Revenue

Sakib Sherani, Chief Executive Officer,

Macro Economics Insight Pvt Ltd.

Senator Nasreen Jalil, Chairperson

Standing Committee

Moderated Discussion

Break

2:30 – 4:00 pm

Energy Sector:

Challenges and Current

Options

Dr. Vaqar Ahmed, Deputy Executive

Director, SDPI

Dr. Mussaddiq Malik, Advisor to Federal

Minister for Water and Power

Kaiser Bengali, Advisor to Chief Minister

Balochistan

Syed Mohammed Ali, Chief Executive

Officer at Engro Powergen

Moderated Discussion

Break

38

9. Annex – D: Media Coverage Links

Business Recorder:

http://www.brecorder.com/taxation/181:pakistan/1259755:implementation-of-

budgetary-measures-government-admits-failure/

Daily Times:

http://www.dailytimes.com.pk/default.asp?page=2013\11\30\story_30-11-2013_pg5_7

DAWN:

http://www.dawn.com/news/1059495/increasing-import-export-gap-blamed-for-rupee-

fall

Tribune Express:

http://tribune.com.pk/story/638950/taxmen-perturbed-tax-concessions-to-business-

disturb-budget-targets/

Statesman:

http://statesman.com.pk/index.php?page=5&edition=peshawar&date=2013-12-

01&type=newspaper

The News:

http://ow.ly/tomO0

39

10. Annex – E: Symposium Participants

Sr. No Name Institution

1. Raffia Jalil Quaid-e-Azam University

2. Zulfiqar Ali Jhang chamber of commerce and industry

3. Syed Hamza Ali Quaid-e-Azam University

4. Mian Waqas Masud Fazal Industries

5. Muhammad Bilal Shaheen Quaid-e-Azam University

6. Maham Sadiq Quaid-e-Azam University

7. Zopash Khan Quaid-e-Azam University

8. RJ Zahid SDPI

9. Madiha Ahmed DFID

10. Majid Szabist

11. Hamza Sher Quaid-e-Azam University

12. Jahanzeb Dilazad Alternate Energy Development Board (AEDB)

13. Majyd Aziz Former President Karachi Chamber of Commerce

14. Nazar PID

15. Naveed Cheema Economic Reforms Unit – Ministry of Finance

16. Saeeda Khan PIDE

17. Gulalai Jogezai PIDE

18. M. Abdul Waheed SDPI

19. Asif Javed

20. Zaeem Saeed Quaid-e-Azam University

21. Muhammad Tayyab Ayaz Quaid-e-Azam University

22. M. Umer Hashmi Quaid-e-Azam University

23. M. Talha Jabbar Quaid-e-Azam University

24. Hafsa Khalid Quaid-e-Azam University

25. M. Mateen Hamshi Quaid-e-Azam University

26. Hira Ahmed Quaid-e-Azam University

27. Shafaq Ahmed Quaid-e-Azam University

28. Hania Afzal Quaid-e-Azam University

29. Nida Luni Quaid-e-Azam University

30. M. Usman International Development Research Center

31. Muzammil Mukhtar Habib Metropolitan Bank

32. Arifa Shabnum Quaid-e-Azam University

33. Hammad Farooq NUST

34. Michael Wyzan USAID

35. Muhammad Shafiq Technical Education Department

36. M. Jafri SZABIST

37. Saad Ullah Malik Quaid-e-Azam University

38. Anum Lodhi SDPI

39. Itrat Zara NUST

40. Khawar Mahmood Quaid-e-Azam University

41. Naveed Hussain Quaid-e-Azam University

42. Wasim Abbas NUST

43. Ghulam Ali Quaid-e-Azam University

40

44. M. Zubair Quaid-e-Azam University

45. Dr. M. Sahem PTA

46. Kashif Iqbal SZABIST

47. Asif Sikander Quaid-e-Azam University

48. Shumaila Rifaqat DFID

49. Fareeha Tahreem NUST

50. Aftab Alam SZABIST

51. Rashid Ahmed Khan NUML

52. Maryam Shafi PIDE

53. Dr. M. Akber Hamdard University

54. Arif Alauddin Enercon

55. Malik Tahir Haripur Chamber of Commerce and Industry

56. Sadaqat Hashmi The Media Profile

57. Ali Hamdani NUST

58. Saif Ullah UUS

59. Khaqan Najeeb Ministry of Finance

60. Sundas Sharif NUST

61. Yasir Niazi Indus Motor Company

62. Sadaf Zareen PIDE

63. Amjad Ahmad AJKC

64. Sarim Shiekh OICCJ

65. Dr. M. Tariq Majeed Quaid-e-Azam University

66. Nasira Taskeen Vision consulting

67. Zafar Abbas University of Sargodha

68. Farahat Waqas Unversity of Sargodha

69. Bilal Bank Alfalah

70. Shahid Fiaz The Asia Foundation

71. Afifa Minhas NUST

72. Muhammad Tufail NBS

73. Nauman Malik University of Sargodha

74. Hamza Khan US Embassy

75. Mariab Abid University of Sargodha

76. Zeeshan M Yasir IPPs Advisory Council

77. M. Ayub Chaudhry M/o Overseas Pakistanis & Human Resource Dev

78. Shehryar Ghattar

79. Shahid Iqbal Ministry of Planning Development and Reforms

80. Haneen Khalid NUST

81. M. Abu Bakr NUST

82. Dr. Babar Hussain University of Sargodha

83. M. Waseem Akram University of Sargodha

84. Saba UoS

85. Humaira Yasmin University of Sargodha

86. Shoaib Bashir Khan Ministry of Planning Development and Reforms

87. M. Kashif Member

88. M. Atif University of Sargodha

89. Naghman Ahmad University of Sargodha

90. Sabeen Saif

91. Summun Ahson Qadri Quaid-e-Azam University

41

92. Kamran Saleem Member

93. Engr. Mehfooz A. Qazi M/O Planning Development and Reforms

94. Raja Taimur SDTV

95. Syed Kashif Viztech Solutions

96. Samavia Batool SDPI

97. Nafeesa Hashmi SDPI

98. Dr. R. K. Malik SZABIST

99. Saqib Shakeel SZABIST

100. Mubashir Safin NNA

101. Alan Whitworth DFID

102. Umar Burana Aaj News

103. Saqib Mnzoor IUIC

104. Jamal Shah SDPI

105. Karim Khan PIDE

106. Tariq Khan Pinpoint Institute

107. Shiekhd M. Asim Member

108. M. Fahim Member

109. Moazzam SDPI

110. Khalid Majid KMR

111. Ayla Majid KMR

112. M. Asim Siddiqui Quetta Chamber of Commerce

113. Zahid Latif Khan Islamabad Stock Exchange

114. Rehan Sheikh Samaa TV

115. Naveed Ahmed IUIC

116. Dr. Anwar Shiekh Quaid-e-Azam University

117. Arshad DM news

118. Hammad Media

119. Sohaib MDI

120. Abdul Rafay Aaj TV

121. Rizwan CPGS

122. Haider SDPI

123. Arsalan Khaliq SDPI

124. Raja Adil Quaid-e-Azam University

125. Tahir Dhindsa SDPI

126. Ibn-E-Amin CNBC tv

127. Tariq Faheem M/O Housing and Works

128. Masood Alam DESCON

129. Arshad Ali Commerce

130. Hassan Bajwa Quaid-e-Azam University

131. Munir Malik Premire OIL/ OKCI

132. Wasim Naqvi SDPI

133. Haroon Baloch Radio Pakistan

134. Waqas Azeem CNBC

135. Farhan Ali Daily Jehan Pakistan

136. Sarah Haram BBC world

137. Dr. Bilal Mirza Center of Policy Studies

138. Ali Hassan Quaid-e-Azam University

139. Niaz Khan Quaid-e-Azam University

42

140. Muhammad Younis Quaid-e-Azam University

141. Kanwar Jawed SDPI

142. M. Bilal Quaid-e-Azam University

143. Maria Ahmed Mcsaatchi

144. Dr. Talat Anwar COMSATS

145. Sohailb Jali

146. Rai Nasir M/O Planning Development and Reforms

147. M. Rahim Jogezai Student

148. Khawar Zaman Student

149. Shahid Zahidi Premier Oil

150. Aamire Nadeem TMR Consulting

151. Abidhussain Quaid-e-Azam University

152. Shahid Hussain Asad FBR

153. Sakib Sherani Macroeconomic Insights

154. Gareth Aicken The Asia Foundation

155. Ali Khizar Business Recorder

156. Mehran I. Mirza Premier Oil

157. Farzana Noshab ADB

158. Sharad Bhandari ADB

159. Ziyad Hussain Online News

160. Hammad Haider Business Recorder

161. Haroon Sarwar Ministry of Planning Development and Reforms

162. Tarique Siyal NNI

163. M. Hamid WWF

164. Akhtar Nawaz Ministry of Planning Development and Reforms

165. Adnan Gul Ministry of Planning Development and Reforms

166. Arsalan Khalid Ministry of Planning Development and Reforms

167. Asim Saeed SZABIST

168. M. Ammar Hussain Ministry of Planning Development and Reforms

169. Ameer Hyder Ministry of Planning Development and Reforms

170. Shahbaz Rana Express Tribune

171. Muhammad Saqib Tanveer Ministry of Planning Development and Reforms

172. Alexis Ferrand DFID

173. Samir. S. Amir Pakistan Business Council

174. Asma Butt SDPI

175. Zia VSH News

176. Yasir Baloch VSH News

177. Nisar Ahmed Sohni Dharti TV

178. Adnan Sattar Khan Ministry of Planning Development and Reforms

179. M. Atiq Ali Babar Ministry of Planning Development and Reforms

180. M. Ahsan Qaisrani Ministry of Planning Development and Reforms

181. Shoaib Quaid-e-Azam University

182. Abdul Rehman Khan D.M News

183. Iqbal Ahmed Ministry of Planning Development and Reforms

184. Nazar Abbasi Asia Today

185. Sardar Shahid Daily Baruraqt Qta

186. M. Ali Kemal PIDE

187. M. Usman Kemal SZABIST

43

188. Ahmed Hussain Ministry of Finance

189. Mahreen Hussain SDPI

190. Babar Jamal SDPI

191. Dr. Ishaque Baloch NP

192. Kaiser Bengali Govt of Balochistan

193. Arsalan Altaaf Freelancer

194. Tariq Ali Virk Daily Taqat

195. Zubair Qureshi Pakistan Observer

196. Humera Karim Dunya News

197. Dr Sarah Hussain Ministry Of Petroleum

198. Kashif Nazeer AAG TV

199. Muhammad Shalar SDPI

200. Abdul Rehman SDPI

201. Liaquat Mehmood BIMS

202. Nafeesa Akram NDU

203. Farid A. Khan APP

204. Dr.M.Islam Iqra Uni

205. Lt.Col.Dr.Rafique Ahmad NDU

206. Ayaz Muhammad SZABIST

207. Doreen Sophia Paul Quaid-e-AzamUniversity

208. Rasheed Khalid The News

209. Amar Karim Quaid-e-AzamUniversity

210. Adnan Krim Quaid-e-AzamUniversity

211. Anum Khalid Mirza NDU

212. Ali Mahdi National Highway Authority

213. Naseem Parveen Researcher

214. Mazhar Farooq Ppepca

215. Tahir H.Baloch Iqra Uni

216. Fatima Munib Iqra Uni

217. Sheema Ahmad Iqra Uni

218. Nyale Hassan Iqra Uni

219. Arbaaz Zahid Iqra Uni

220. Sohail Sarfaraz Business Recorder

221. Mazhon Ali Khan Business Recorder

222. Anzar Ahmed Uni Of Lahore

223. Sajid Mustaq Uni Of Lahore

224. Iraj Ishfaq Uni Of Lahore

225. Adil Shahzad Ary News

226. Hassan Ali Iqra University

227. Mahzeb Iqra University

228. Ayaz Muhammad SZABIST

229. Abrar Ahmed Usaid Office Of Energy

44

230. Farkhanda Aurenzeb Aurat Foundation

231. Engr.M.Rafique NDU

232. Zakwan Ahmed NDU

233. Asif Saeed Uni Of Lahore

234. Samiullah Khan Uni Of Lahore

235. M.Abdur Rehman Uni Of Lahore

236. Syed Ahad Zamin Uni Of Lahore

237. Jibran Ahmed Uni Of Lahore

238. Waqas Jawed Uni Of Lahore

239. Saeed Chugtai Bilal Jasb

240. Bilal Gajour NDU

241. Ali Ejaz BURI

242. M.Munir Hassan Pakistan Broadcasting Corporation

243. Khawaja Nayyar Iqbal

244. Tayyab Daily Aik Awaz

245. Ch.M.Majeed Gets International

246. Akbar Husnain NDU

247. Kashif A.Khan Bay Back

248. Dr.Pervez Tahir

249. Mahmood Hussain Government of Pakistan

250. Liaquat Amir Government of Khyber Pakhtunkhwa

251. Saeed Ahmad Radio Pakistan

252. Tariq Sultan PTA

253. Tariq Farooq Daily Ash Sharz

254. Hammad Mughal Research Consultant

255. Salamt Ali Chohan Riba Free Technology

256. Ramazan Mughal PPA

257. Sara Rafi Pakistan Strategy Support Program (PSSP)

258. Hira Channa PSSP

259. Faryal Ahmed PSSP

260. Sajid Hassan

261. Abdul Rehman NDU

262. Ajab Gul NDU

263. Zain Ul Abidin NDU

264. M.Riyazul Haque Think Tank

265. Tariq Custom Today

266. Wajiha Saeed Pakistan Strategy Support Programme

267. Ikram Dawn

268. Rehan Baloch NDU

269. Sami NDU

270. Umar Farooq NDU

45

271. Dabur NDU

272. Tanzila Tehreem NDU

273. Mahin Ikbar NDU

274. Abdul Sattar Independent Consultant

275. Huma Chugtai Energia Pakistan

276. M.Kashif NDU

277. Arbab Marud NDU

278. Saadia APP

46

Notes