ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, on Monday asked the Federal Board of Revenue (FBR) to redouble its efforts for broadening the tax base.
The adviser expressed his full support and confidence to the FBR team and advised to redouble their efforts and launch the taxpayer outreach initiative at the earliest to expand the existing tax base and boost the revenue collection. Tarin chaired a meeting on broadening of the tax base by the FBR at the Finance Division.
Chairman FBR, senior officers from FBR, and Finance Division attended the meeting.
Chairman FBR and his team gave a detailed presentation on the progress on readiness for potential taxpayer outreach initiatives to boost revenue growth and resource mobilization.
Chairman FBR apprised the Adviser that pragmatic steps have been initiated for the compilation of data, with the support of NADRA, which would be available to potential and current taxpayers in a presentable and comprehensible manner through a web portal.
Key challenges to reaching out to potential and current taxpayers, public awareness, and confidence-building measures taken by FBR were also discussed in the meeting.
The adviser lauded the steps taken by FBR and stressed that efficient and robust communication with the taxpayers should be at the center of activity undertaken by FBR to harness public support for its efforts for broadening the tax base and promoting a tax compliant culture in the country.
ISLAMABAD: The Kingdom of Saudi Arabia (KSA) has signed an agreement to extend an oil facility of $100 million per month for one year to Pakistan on deferred payments.
Sultan bin Abdulrahman Al-Marshad, CEO of Saudi Fund for Development (SFD) exchanged the Financing Agreement with Omer Ayub Khan, Minister for Economic Affairs for the Import of Saudi Goods on Monday.
Talking on the occasion, Minister for Economic Affairs stated that Pakistan values the bilateral and brotherly relations with the Kingdom of Saudi Arabia and thanked KSA for extending support for implementing the infrastructure and energy projects in Pakistan.
KSA helped Pakistan generously during the earthquake of 2005. Both the countries signed projects worth $500 million during the visit of the Prime Minister of Pakistan to the Kingdom in May this year. As per the Financing Agreement, the SFD will extend the financing facility up to $100 million per month for one year for the import of crude oil and petroleum products from Saudi Arabia, which will be extended for another year.
The CEO, SFD stated that Saudi Arabia holds relations with Pakistan in the highest esteem and assured to extend full support for the implementation of development projects in Pakistan. Both sides expressed their strong commitment to enhancing bilateral economic relations in the future.
The Federal Minister for Economic Affairs Division (EAD) Omar Ayub Khan chaired the ECC meeting and took several important decisions.
Federal Minister for Energy Hammad Azhar, Abdul Razak Dawood Advisor to Prime Minister on Commerce, Textile, Industries & Production and Investment, Federal Secretaries and other senior officers participated in the meeting.
The ECC considered the summary submitted by the Ministry of National Food Security & Research approved the proposal for the donation of 50,000 M. Tons of wheat to Afghanistan. ECC further directed the Finance Division to provide funds for the purpose on an actual cost basis.
The ECC also recommended relaxation of the ban on the export of wheat/wheat flour to Afghanistan to the extent of the instant proposal with the direction that the Ministry of National Food Security and Research may inform the Federal Cabinet of the ratio for mixing of local and imported wheat in case export of wheat flour is required.
On a Summary tabled by the Ministry of Foreign Affairs regarding “Extraordinary Session of the OIC Council of Foreign Ministers (CFM) in Pakistan” the ECC approved two Technical Supplementary Grants (TSGs) for the purpose during CFY 2021-22 i.e., (i) Rs.233.342 million in favor of the Ministry of Foreign Affairs and (i) Rs 64.2 million in favor of the Interior Division.
KARACHI: Naveed Abbas Memon, Chief Domain officer of Pakistan Single Window (PSW) has said that PSW portal will enable traders to reduce time, cost, and complexity in cross-border trade.
While addressing an awareness seminar at Karachi Customs Agents Association (KCAA) on Monday he said it will also improve the quality of experience for all stakeholders with a primary focus on ease of doing business.
The officer said PSW will also support other government agencies in adopting an Integrated Risk Management approach for efficient enforcement of trade-related controls.
He also informed that the implementation of PSW will enable Pakistan to achieve compliance with WTO’s Trade Facilitation Agreement besides helping our country to unlock its potential in becoming a hub for trade.
President KCAA Saif Ullah Khan said that it is an honor to host the PSW representatives of the highest level who are leading a mega transformation through PSW based on the approach of trade facilitation.
He further said that PSW will promote ease of doing business by maintaining collaboration with 74 different public sector entities involved in the regulation of cross-border trade of Pakistan.
While addressing, the General Secretary Mr. Arshad Khurshid appreciated the implementation of true automation under the PSW portal, he stated that Pakistan Customs initiated the implementation of automation in business through risk management systems by launching the Pakistan Customs Computerized System (PACCS) in the year 2005 which was greatly appreciated by the trade of Pakistan.
Now a big change is being introduced for a second time by the Government and Pakistan Customs in the shape of PSW.
This new system will digitize the processes related to importers, exporters, customs house agents, freight forwarders, shipping companies, transporters while ensuring the reduced cost of doing business with compliance of laws and regulations.
KCAA Office Bearers also assured their full support and cooperation for the implementation of automation in true spirit.
The SBP said that over the past few weeks, certain sections of the media including op-eds have expressed concerns over the actions of the SBP, particularly with regard to monetary policy decisions and the role of the Covid-related monetary accommodation in fueling the currently elevated inflation outturns.
The SBP would like to address these concerns and offer some clarifications.
First, while referencing the status quo monetary policy decisions in the earlier half of 2021, certain op-ed have implied that the central bank had absolved itself of its responsibility to combat inflation when it was rising.
Such points are all easier made in hindsight but let us remind ourselves what the situation was actually like back in May and July 2021. Demand-side pressures appeared contained with spare capacity in the economy, price pressures were concentrated in a few items, wage growth was subdued and inflation expectations were reasonably anchored.
Moreover, any inflationary concerns were dwarfed by the fact that Pakistan was going through the 3rd and subsequently the more virulent and uncertain 4th Delta-variant wave of Covid-19. There were a few occasions when micro lockdowns were imposed, while the vaccine rollout was not as extensive as it is currently.
Globally as well, Covid cases were spiraling upwards, driven primarily by the Delta variant. At such a time of elevated uncertainty about the future trajectory of the pandemic, the Monetary Policy Committee adopted a prudent policy stance by keeping interest rates unchanged, so as to not preemptively disrupt economic activity.
It is quite easy, in hindsight, to criticize this decision even though no tangible alternatives were proposed in the op-eds or elsewhere at the time.
By contrast, policymaking involves taking calculated decisions in real-time, when the future is uncertain and considerations need to be carefully balanced. This is especially so in the face of a shock like Covid, for which policymakers have no rulebook.
Second, in the midst of a once-in-a-century pandemic, it would be imprudent to solely superimpose classical economic theories onto data outturns.
Policymakers, economists and businesses around the world did not know how the global or domestic economy would evolve in response to mobility restrictions of varying stringencies in different locations.
Similarly, there was, and in fact continues to be, heightened uncertainty regarding price-setting behavior. For instance, there is an on-going debate in global policy circles and financial markets over whether the ongoing bout of inflation is transitory in nature or not. In the face of an unprecedented shock like Covid, invoking supposed historical, text-book patterns of overheating, as in the op-ed, is facile.
Under such circumstances, as policymakers around the world acknowledged, the costs of normalizing policies too soon outweigh those of waiting for more clarity on the path of inflation and output.
As that uncertainty has recently waned in Pakistan, monetary policy is being appropriately normalized.
Third, some commentary has seemingly attributed the currently higher inflation to the growth in broad money supply.
In this regard, the SBP would like to point out that at the start of the pandemic in March 2020 and for the subsequent few months, real broad money balances were in fact below the pre-Covid trend. If allowed to continue, a liquidity crisis would have turned into a solvency one, multiplying the contractionary impact of Covid-19 on real GDP growth.
To stave off this stark outcome, and to extend the needed support to businesses and households, the SBP and the government introduced unprecedented stimulative policy measures.
As a consequence, real money balances recovered as intended. Not providing this support would have risked worsening and prolonging the loss in output and employment that accompanied the Covid shock.
Lastly, the SBP would like to reiterate that its policy stance is geared towards price stability, while playing its due role in contributing to economic growth and development.
Getting this balance right through the various stages following Covid has been the key goal of monetary policy, and helps explain the path of policy actions.
KARACHI – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called upon the government to implement effective measures to alleviate the ongoing gas crisis, emphasizing the need for uninterrupted gas supply to industries and a reduction in electricity tariffs.
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday imposed a condition under the Anti-Money Laundering Act, 2010 on transfers and registration of immovable properties.
The FBR DNFBPs Order No. 1 of 2021 impose the condition.
The FBR said that the Anti-Money Laundering Act, 2010 empowered the revenue board to license or register its reporting entities (R0s) namely, Designated Non-Financial Businesses and Professions (DNFBPs), impose conditions on any activities by DNFBPs to prevent the offenses of money laundering, predicate offenses or financing of terrorism through the issuance of Directions or imposing Conditions under the relevant provisions of the AMLA, 2010.
Now, in the exercise of the powers conferred under section 6A of the AMLA, 2010 read with clause 1(iii) of Schedule IV ibid, and to foster the anti-money laundering and countering the financing of terrorism regime in Pakistan, FBR has imposed the following Condition on all Real Estate Development Authorities, Cooperative Housing Societies, and all other Housing Societies, Schemes, and Firms dealing in the real estate, namely:-
“Condition No. 1 of 2021: No public or private Development Authority shall conduct the business activity with any real estate agent for the transfer or registration of immovable property unless the Real Estate Agent is registered with the Federal Board of Revenue as a Designated Non-Financial Business and Profession (DNFBP).”
The above condition shall be disseminated to all Real Estate Agents registered or dealing with the Development Authorities, Housing Authorities Cooperative Housing Societies and other Housing Schemes dealing in the development of land for residential & commercial purposes, construction, and sale/purchase and/or transfer of ownership rights and also displayed on all relevant places for the information of general public.
The real estate agents may also be informed to obtain Registration Certificates from the concerned Director, DNFBPs once registered as a DNFBP with FBR.
Any volition of this Condition shall attract the penal provisions under the AML Act, 2010 and the AML/CFT Sanctions Rules, 2020. This Condition comes into effect on January 1, 2021, the FBR added.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 45,330 points as against last Friday’s closing of 44,114 points, showing an increase of 1,216 points or 2.8 per cent.
Analysts at Arif Habib Limited said that the KSE-100 index witnessed a bull-run as it gained more than 1,200 points in intraday trading to cross 45,000 points today, lifted by the cabinet approval to revive Saudi Arabia’s $3 billion support package for Pakistan in safe deposits and $1.2 billion worth of oil supplies on deferred payments.
A major dip in crude oil prices created positive momentum in the market despite the emergence of a new variant of Covid-19.
The perception of investors towards the last leg of the foreign selling spree being completed last week created an opportunity for intra-day traders.
Sectors contributing to the performance include Commercial Banks (+283 points), Cement (+211 points), E7P (+139 points), Fertilizer (+100 points) and OMC’s (+76 points).
Volumes decreased from 289.8 million shares to 268.2 million shares (-7.5 per cent DoD). Traded value increased by 6.1 per cent to reach US$ 61.9 million as against US$ 58.3 million.
Stocks that contributed significantly to the volumes include FFLR1, TPLP, WTL, BYCO and FNEL.
KARACHI, November 29, 2021 – The State Bank of Pakistan (SBP) has published the official exchange rates for November 29, 2021, based on the weighted average rates of commercial banks.
