# *Detailed SUMMARY of the article "No revenue effort" by Editorial, Published in Dawn on June 17th, 2025:* The article analyzes the *ruling PML-N*'s *Punjab budget*, which features *large infrastructure schemes*, *service delivery*, *social protection*, *relief*, and *subsidies*, making Punjab appear to be progressing. However, the budget reveals significant flaws beneath the surface. The province is *flush with cash* from the *federal government* under the *NFC arrangement*, but shows *no serious revenue-raising efforts*. The *projected provincial own tax share* of nearly *Rs525 billion* represents just above *10%* of *total revenues* of *Rs4.9 trillion*, highlighting the government's failure to boost *tax collection* in *Pakistan's most populous province*. The province recorded a *10% shortfall* in its target for the outgoing year due to *lack of effective enforcement* of *immovable urban property levies* and *GST on services* — both major *revenue sources* in *urban areas globally*. *Agriculture income tax* collection is estimated to rise to *Rs10.5 billion* from *Rs4 billion* due to alignment with *federal income tax slabs*, but the province's ability to recover the targeted amount remains doubtful. The *PML-N government* has stopped *ring-fencing development funds* for *Punjab's underdeveloped southern districts*, a practice initiated by *PTI* to prevent fund diversion elsewhere. Development focus has returned to areas along the *GT Road*, which provided traditional support to the ruling party. *Lahore alone* receives *Rs78 billion* for development projects, reflecting the *lopsided development focus* on *central and northern regions* at the expense of *south Punjab*, a pattern blamed for rising *regional disparities* under previous *PML-N administrations*. The budget promises benefits for almost every population segment — from *laptops* to *electric scooters* to *interest-free loans for farmers* to *food and transport subsidies* for the *urban middle class*. These measures aim to win back *political support* that the ruling *PML-N* has lost to rival *PTI* over recent years. The article questions whether *Chief Minister Maryam Nawaz*, who has generated headlines for *infrastructure development projects*, *relief*, and *social initiatives* in the past year, will succeed in restoring *PML-N's fortunes* in its *erstwhile stronghold*. # *Easy/Short SUMMARY*: *Punjab's PML-N budget* features *large infrastructure* and *social programs* but relies heavily on *federal transfers* under *NFC* with minimal *revenue efforts*. *Provincial own taxes* of *Rs525 billion* are only *10%* of *Rs4.9 trillion* total revenue, with *10% shortfall* in targets. Development focus returns to *GT Road areas* and *Lahore* (*Rs78 billion*), abandoning *south Punjab* ring-fencing. The budget offers *laptops*, *electric scooters*, and *subsidies* to regain support lost to *PTI*, with *Maryam Nawaz* trying to restore *PML-N's fortunes*. # *SOLUTIONS of The Problem*: ## *1. Boost Provincial Tax Collection* Increase *provincial own tax* revenue from *10%* to at least *25%* of total revenues through better enforcement. ## *2. Strengthen Property Tax System* Implement effective *immovable urban property levies* with updated valuations and strict enforcement mechanisms. ## *3. Enhance GST on Services* Improve *GST collection* on services through digital monitoring and compliance measures in urban areas. ## *4. Ring-fence South Punjab Funds* Restore *ring-fencing* of development funds for *underdeveloped southern districts* to prevent diversion. ## *5. Balance Regional Development* Allocate equal development funds between *central*, *northern*, and *southern Punjab* to reduce disparities. ## *6. Modernize Agriculture Tax* Strengthen *agriculture income tax* collection through better record-keeping and enforcement mechanisms. ## *7. Reduce Federal Dependency* Gradually decrease reliance on *federal transfers* by building sustainable *provincial revenue streams*. ## *8. Target Development Spending* Focus infrastructure investment on *underdeveloped areas* rather than politically favorable regions. ## *9. Improve Tax Administration* Establish modern *tax collection systems* with digital tracking and transparent processes. ## *10. Create Revenue Monitoring* Set up independent monitoring of *revenue targets* with quarterly assessments and corrective measures. # *IMPORTANT Facts and Figures Given in the article*: - *Provincial own tax share* projected at nearly *Rs525 billion*. - *Total Punjab revenues* estimated at *Rs4.9 trillion*. - *Provincial taxes* form just above *10%* of total revenues. - *10% shortfall* recorded in revenue targets for outgoing year. - *Agriculture income tax* estimated to rise to *Rs10.5 billion* from *Rs4 billion*. - *Lahore* allocated *Rs78 billion* for development projects. # *IMPORTANT Facts and Figures out of the article*: - *Punjab* contributes *60%* of Pakistan's *GDP* (*PBS*, 2024). - *South Punjab* has *30%* lower *per capita income* than *central Punjab* (*World Bank*, 2023). - *Property tax* in *Punjab* is *0.2%* of *GDP* vs *1-3%* global average (*IMF*, 2024). - *Punjab's population* is *127 million*, largest province in Pakistan (*Census*, 2023). - *GST on services* potential in *Punjab* estimated at *Rs200 billion* (*FBR*, 2024). - *Urban areas* in *Punjab* contribute *70%* of provincial economy (*Planning Commission*, 2024). # *MCQs from the Article*: ### 1. *What percentage of total revenues do provincial own taxes form?* A. Above 15% B. Above 5% *C. Just above 10%* D. Above 20% ### 2. *How much did agriculture income tax collection rise to?* A. Rs8.5 billion *B. Rs10.5 billion* C. Rs12.5 billion D. Rs6.5 billion ### 3. *How much development funding does Lahore alone receive?* A. Rs68 billion *B. Rs78 billion* C. Rs88 billion D. Rs58 billion ### 4. *What was the shortfall in revenue targets for the outgoing year?* A. 5% B. 15% *C. 10%* D. 20% ### 5. *Which party initiated ring-fencing of development funds for south Punjab?* A. PML-N *B. PTI* C. PPP D. PML-Q # *VOCABULARY*: 1. *Infrastructure* (بنیادی ڈھانچہ) – Basic physical structures and facilities 2. *Expenditure* (اخراجات) – Money spent on something 3. *Subsidies* (سبسڈی) – Financial assistance given by government 4. *Trickling down* (رسنا) – Gradually flowing from higher to lower level 5. *Arrangement* (انتظام) – Organization or system 6. *Betray* (ظاہر کرنا) – Reveal or show clearly 7. *Projected* (متوقع) – Estimated or predicted 8. *Ramp up* (بڑھانا) – Increase intensity or amount 9. *Shortfall* (کمی) – Deficit or shortage 10. *Enforcement* (نفاذ) – Implementation of rules or laws 11. *Immovable* (غیر منقولہ) – Cannot be moved (property) 12. *Levies* (محصولات) – Taxes or charges 13. *Ring-fencing* (تحفظ) – Protecting funds from being diverted 14. *Diversion* (رخ موڑنا) – Redirecting to different purpose 15. *Lopsided* (غیر متوازن) – Unbalanced or uneven 16. *Disparities* (تفاوت) – Differences or inequalities 17. *Segment* (حصہ) – Part or section 18. *Erstwhile* (سابقہ) – Former or previous 19. *Stronghold* (مضبوط گڑھ) – Area of strong support 20. *Speculate* (قیاس کرنا) – Form opinions without firm evidence 📢 *Attention Please!* We appreciate your commitment to acquiring knowledge through our summaries. 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Click the link below to join now 🔗 [Dawn Article Summaries](https://cssmcqs.com/dawn-editorials-articles-summary-for-students-pdf-download/) *WhatsApp Channel Link*: [https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y](https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y) --- *www.dawn.com* *No revenue effort* *Editorial* *3–4 minutes* WITH the ruling PML-N's next budget unfolding large infrastructure schemes, and expenditure focusing on service delivery, social protection, relief and subsidies, Punjab appears to be on the move. However, a closer look takes some shine off the rosy picture the numbers paint. For one, flush with cash trickling down from the centre under the NFC arrangement, the budget documents betray the absence of any serious revenue-raising efforts. The projected provincial own tax share of nearly Rs525bn forms just above 10pc of total revenues of Rs4.9tr, speaking volumes about the government's failure to ramp up efforts to boost its tax collection in Pakistan's most populous province. Not only that, it has also recorded a shortfall of 10pc in its target for the outgoing year due to lack of effective enforcement of immovable urban property levies and GST on services — both levies are a major revenue source in urban areas globally. Nonetheless, collection under the agriculture income tax is estimated to rise to Rs10.5bn from Rs4bn this year due to the levy's alignment with federal income tax slabs. But the province's ability to recover the targeted amount is doubtful. Moreover, the documents show that the PML-N government is not ring-fencing development funds for Punjab's underdeveloped southern districts, a practice initiated by the PTI to prevent their diversion to schemes elsewhere. The development focus is back on areas along the GT Road, which provided the ruling party traditional support. For example, Lahore alone gets Rs78bn for development projects. The lopsided development focus on the central and northern regions at the expense of south Punjab under previous PML-N administrations is often blamed for the rising regional disparities in the province. Besides, the budget promises something for almost every segment of the population — from laptops to electric scooters to interest-free loans for farmers to food and transport subsidies for the urban middle class. These measures are aimed at winning back the political support that the ruling PML-N has lost to its rival PTI over the last several years. Will Chief Minister Maryam Nawaz, who has managed to generate headlines for her infrastructure development projects, as well as relief and other social initiatives in the last one year, succeed in restoring the PML-N's fortunes in its erstwhile stronghold? One can only speculate. *Published in Dawn, June 17th, 2025*