Author: Mrs. Anjum Shahnawaz

NBP directed to pay Rs0.5 million to fraud victim

ISLAMABAD: The President of Pakistan, Dr Arif Alvi, has directed National Bank of Pakistan (NBP) pay Rs0.5 million to a victim of bank fraud.

The president upheld the decision of the Banking Ombudsman and directed the NBP to pay Rs500,000 to the citizen who had been the victim of bank fraud at the hands of a former branch manager.

READ MORE: SBP takes measures for prevention of digital bank fraud

The president ordered that the bank must return the lost money to the victim and expressed dismay that the bank refused to own up to its responsibilities when a fraud had been committed by the employees of the bank against its customers.

Muhammad Abdul Rasheed (the complainant), a resident of Faisalabad, had opened a bank account with the Hassan Road Branch, Jaranwala, and had handed over cash of Rs500,000 to the then manager, Akhtar Hussain, who gave the complainant a duly signed and stamped deposit slip.

Later, upon visiting the branch to get his cheque book, the complainant came to know that an internal fraud had been committed by the then branch manager and he was one of the many victims of bank fraud and his money had not been deposited in his account by the manager.

READ MORE: President Alvi rejects MCB Bank’s appeal in fraud case

A total of 56 affected accountholders submitted their claims to the bank amounting to Rs98.018 million for refunding of their defrauded amounts.

Abdul Rasheed also approached the bank to receive his claim but was not provided any relief.

Subsequently, he sought the assistance of the Banking Ombudsman to retrieve his lost amount who ordered that the bank pay the complainant his lost money. The NBP then filed representation with the President against the decision of the Ombudsman.

President Dr Arif Alvi rejected the representation of the bank on the grounds that the deposit slip carrying the manager’s signature and stamp constituted a valid receipt and bound the bank to honour it.

He upheld Ombudsman’s observation that although the bank manager had been dismissed by the bank and FIA was investigating the matter, the proceedings of the Ombudsman were of civil nature and were independent of any criminal prosecution by the FIA.

READ MORE: Habib Bank, Meezan Bank directed to pay fraud victims

He further noted that the complainant was dealing with the authorized agent of the bank who was not only in active service of the bank as the branch manager but had received the cash during banking hours within the premises of the bank against a valid deposit slip.

While terming the act of the ex-manager an act of maladministration and malpractice, the president further observed that the perusal of the relevant sections of the Federal Ombudsmen Institutional Reforms Act, 2013 showed that in matters falling within the jurisdiction of the banking ombudsman, the jurisdiction of other courts or authorities was excluded.

READ MORE: Bank branch manager defrauds 29 customers

He wrote that the bank was given ample opportunity to refute the claim of the complainant and it failed to discharge the burden and statutory liability cast upon it under the law.

Since no justification has been made to upset the original order of the Ombudsman, therefore, the representation of the bank was devoid of any merit and deserved to be rejected, he ordered.

January 12, 2022
FBR invites customs proposals for budget 2022/2023

The Federal Board of Revenue (FBR) has initiated the process for the upcoming fiscal year’s budget by inviting customs-related proposals for the financial year 2022/2023 from various stakeholders, including business chambers and associations.
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January 12, 2022
IMF wants Pakistan to improve tax to GDP ratio to 20%

ISLAMABAD: Finance Minister Shaukat Tarin on Tuesday said the International Monetary Fund (IMF) wanted Pakistan to improve tax to GDP ratio to 20 per cent through structural changes.

Improving tax to GDP ratio to 20 per cent from 9 per cent is in the benefit of the country, he added.

Addressing to the interactive session with media persons along with Federal Minister for Energy Muhammad Hammad Azhar, Governor State Bank of Pakistan (SBP), Dr Reza Baqir, Minister for Information and Broadcasting, Fawad Hussain Chaudhry, State Minster for Information Farrukh Habib and Special Assistant to Prime Minister on health, Dr Faisal Sultan, he said that the existing tax to GDP ratio in the country was the lowest.

READ MORE: IMF intervention to add economic miseries of Pakistan

Tarin said, the IMF wanted Pakistan to collect additional taxes of Rs700 billion by eliminating various tax exemptions, however with negotiations with the team, the government was successful in convincing them of Rs343, hence declining the demand by Rs357 billion. The Minister said that out of this, Rs71 billion is taxed on luxury items of the rich.

He said that despite the IMF demands, the government did not enhance taxes on various items and also did not do away with some exemptions including pesticide, fertilizer, tractors, and provident fund and food and beverages items. Tarin said: “We also subsidized solar panel and other items and paid 100 per cent tax on laptops.”

“We have a Rs33 billion subsidy option that we can use as needed,” he said. The finance minister said that the government has given a tax exemption of about Rs350 billion which is not discussed anywhere.

READ MORE: SBP responds to misconceptions on amendments to State Bank Bill

He dispelled the misconceptions about the autonomy of State Bank of Pakistan (SBP). He said that even when the SBP is provided autonomy, all of its eight board members would be selected by the government, so there is no question of any compromise.

The minister said that the government wanted to give autonomy to the State Bank of Pakistan and it would not be like in the past when the government used to overdraft Rs7 trillion and insisted on printing currency notes. He said that a total of eight board members of SBP will be nominated and appointed by the government and: “We want to empower the central Bank board.”

Answering a question, he said that there is a market of Rs700 billion in the pharmaceuticals sector, but cosmetics and energy products made from this zero duty raw material of pharmaceutical allied will be taxed. “We have kept the exchange rate stable at Rs166,” he added.

The finance minister said that the government had stabilized the exchange rate, which he said was impacted by the situation in neighboring country, Afghanistan.

Governor State Bank of Pakistan (SBP), Dr Reza Baqir said that the decision of autonomy of any organization is made on its ownership and appointment there, and then in SBP this work is done by the government.

READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month

The SBP governor said that the interest rate in SBP is decided by the Monetary Policy Committee which is appointed by the government. He said that the Current Account Deficit (CoD) issue was more prevalent in the previous governments, which have been largely resolved by the present government.

Federal Minister for Energy, Muhammad Hammad Azhar, said that Pakistan has a gas problem in winter because of which gas reserves in Pakistan are depleting day by day, due to which there is gas shortage at the domestic and industrial level in the country.

The minister informed that no gas reserves have been discovered in the last few decades and: “We have delivered gas across the country which is primarily a matter of supply and demand.”

He said that earlier gas reservoir deletion was up to 9 percent but now it has increased to 25 percent.

Briefing the media persons on the flagship initiative of ‘Sehat Card’, Special Assistant to the Prime Minister on National Health Services, Regulations and Coordination Dr. Faisal Sultan said it was the physical manifestation of a compact done by the state with its citizenry for their well-being.

READ MORE: Pakistan to emerge as food surplus country: PM Imran

He said the health card, which provided health insurance worth Rs one million to each family per year, was now launched in Punjab after its successful implementation in Khyber Pakhtunkhwa. Initially, relatively poor people were covered, but the entire citizenry was included under the initiative after thorough analysis.

From January 1, 2022, he said all the citizens having Azad Jammu and Kashmir, Gilgit Baltistan, Islamabad, and Punjab as the permanent addresses on their Computerized National Identity Card had been entitled to the health card.

Highlighting contours of the initiative, he said every individual was being covered through his or her family head which had been explained in light of the policy of the National Database and Registration Authority (NADRA).

He said a wide range of diseases that needed admission to the hospital was being covered under the health cards.

The diseases included surgical and medical conditions, childbirth, dialysis, cancer and others Dr. Faisal said hospitals from both the private and public sectors were empaneled under the initiative, which would not only provide an opportunity to the government hospitals to improve their services by augmenting their budgets but also help the private sector to invest in far-flung areas.

A thorough analysis of the facility was being done on a regular basis to address any irregularity if found with its utilization, he said while responding to a query.

The SAPM said the sudden admission of a member of a family in hospital disrupted the household budget of almost every class including middle, lower-middle and others. The idea was to give health insurance to people to save them from such expenses.

Terming the Sehat Sahulat Scheme a ‘silent revolution’ in the health infrastructure of the country, he said watchful management of the initiative would make it a game-changer for the sector.

To another query, he said the initiative would not have any major impact on the public health budget.

Special counters had been set up in every empaneled hospital where a layman was being sensitized about the programme, he said while responding to another question.

January 11, 2022
PM Imran terms exports, tax collection must for growth

ISLAMABAD: Prime Minister Imran Khan Tuesday termed tax collection and exports key elements to boost the country’s economy.

“The government was making strenuous efforts to remove all hurdles and bottlenecks faced by exporters, investors and businessmen and to give a spur to the exports industry,” the prime minister said while addressing at an inaugural ceremony of 14th International Chambers Summit 2022 arranged by the Rawalpindi Chamber of Commerce and Industry (RCCI).

The prime minister said that in the past, no attention was paid to these sectors of the economy which were vital for wealth creation.

READ MORE: PM Imran Khan announces food subsidy package

Imran Khan said the exports sector was stagnant in the past, but the incumbent government was providing all facilitation to the exporters and stressed that exporters should be encouraged with awards and other incentives.

He observed that if the country’s exports were not increased, it could again put pressure on the current account and currency.

The summit was being attended by presidents of more than 54 regular chambers, 10 small chambers, 13 women chambers and representatives from the development partners, international business community, political parties, ministries and the government institutions.

The summit will provide an opportunity to the businessmen to seek resolution of their issues besides, presentation of solid proposals to the stakeholders for the formulation of the business-friendly policy of the country.

The prime minister said the government was constantly endeavoring to introduce incentives for ease of doing business and remove all bottlenecks which would help increase businessmen’s profits and develop a tax culture.

READ MORE: Imran Khan for monitoring accountants, lawyers to stop financial crimes

He also termed the introduction of mini-budget as an effort to document the economy. Out of the total estimated Rs11 trillion retail market, only Rs3 trillion market was registered.

The government was also working on full tax automation, he added.

The prime minister said: “No government in Pakistan ever faced such big challenges like the fiscal and current account deficits. If our friends, Saudi Arabia and China would not have helped us, we would have defaulted due to our liabilities. We had no reserves to stem the depreciation of rupee.”

He said the country’s economy was going through a stabilization phase, but unfortunately, then came the Covid 19 which posed the century’s biggest challenge.

It was worth appreciable how Pakistan was out of the woods. The government not only saved the economy but also the lives of the people, he said, adding, the pandemic brought havoc across the world. In India, its economy was badly impacted with a huge death toll.

READ MORE: PM Imran launches incentive program for remittances

The prime minister said that he was criticized by the political opponents for not clamping a complete lockdown. But their decision of smart lockdown was being followed by the British Prime Minister Boris Johnson.

Then came the challenge of Afghanistan and the flight of dollars which put pressure on rupee, he further added.

The prime minister said the world also witnessed a record surge in commodity prices as the supply and demand lines were disrupted by the pandemic. The people all over the world had been facing problems, he added.

About commodity prices, the prime minister expressed the confidence that it would ease soon.

The prime minister further stressed upon developing a tax culture like the Scandinavian countries that have the highest tax ratio.

He observed that tax culture could not evolve in the country as the people were reluctant to pay taxes in the past, due to lack of trust over rulers who spent the public tax money on their luxurious living.

He said the present government was making efforts to spend available resources on the poor segments of society.

He referred to the health cards initiative under which each family was getting free health facility worth 1 million rupees. Such a health insurance was never thought of in the world. To lift the living standards of poor segments of society, the government also launched Ehasaas programme and stipends.

The prime minister recounted that country’s exports for the first time in history reached to $31 billion, remittances recorded $32 billion, tax revenues reached to around Rs6000 billion.

READ MORE: Pakistan offers huge potential for e-commerce: PM Imran

The prime minister said the expansion of industry was vital for a country’s economy. In Pakistan, large-scale manufacturing (LSM) witnessed a growth by 15 percent. The corporate profits reached Rs930 billion while private sector offtake touched Rs1138 billion. IT sector exports recorded 70 percent increase reaching to about $3 billion, the prime minister said while enumerating the growth of the economy due to the government’s business-friendly policies.

He said the construction sector was also on the boom while the rural agriculture economy earned Rs1100 billion where 60 to 65 pc population of the country was residing. The change in their economic condition could be gauged from the increased sale of motorcycles.

The prime minister said Pakistan was still a cheaper country when compared with petroleum product prices in India and others in the region.

About state of Madina, the prime minister said it had brought the biggest revolution in the world, transforming the humble people as the leaders of the world.

He also shared Allama Iqbal’s opinion that a Muslim society would always rise to prominence when it followed the model of Riyasat-e-Madina.

The prime minister further said that rule of law in a society was critical as in its absence, corruption would assume the role of cancer.

“Corruption is a symptom of lack of rule of law in a society. Our fight is for the rule of law in Pakistan. It is a difficult one because of different cartels and mafias who did not want the rule of law,” he said terming it a ‘Jihad’ against these mafias to secure future of the country.

“In a banana republic, there are two sets of laws for the powerful and the weak,” he maintained.

The prime minister stressed that alongside him (Imran Khan), the society would have to carry out this struggle because it was connected with the economic prosperity. “Nations had been destroyed due to corruption and lack of rule of law,” he added.

The prime minister said Pakistan had huge potential to excel on the economic front and, in tourism sector alone, they could earn to meet the current account deficit.

He also assured the participants that all facilities and utilities would be provided for setting up industrial zones along the Rawalpindi Ring Road project.

Imran Khan informed that the project was in the final stages which was delayed due to corruption that changed its alignment.

He also regretted that any initiatives like this one always drew speculations only for the real estate business, shooting up prices of lands.

He assured that government would ensure provision of lands on lease at affordable prices to set up economic zones.

January 11, 2022
Apex court suspends order in tax notices to overseas assets

The apex court of Pakistan has suspended the order of the higher court related to tax notices to Pakistanis for their overseas assets.
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January 11, 2022
PTCL Group wins GDEIB award in five categories

ISLAMABAD: PTCL Group has won the prestigious Global Diversity, Equity, and Inclusion Benchmark (GDEIB) Award in five categories in recognition of its forward-looking human resource practices and work culture.

The achievement highlights the Group’s standing as a progressive and wholly employee-centric organization with unique attributes that have been validated previously as well, a statement said on Monday.

READ MORE: PTCL registers 7.3% revenue growth for nine months

GDEIB are global standards developed by The Centre for Global Inclusion (CBI), with more than 112 experts from across the world. The standards help organizations across the world determine their strategy and measure progress in managing diversity and fostering inclusion to strive for excellence in their respective fields.

This year, PTCL Group won the prestigious award in five categories, thereby reinforcing its reputation as one of the most progressive organizations in the country.

Among these three; Vision, strategy, and Business impact; Work-life integration, flexibility and benefits; and Assessment, Measurement, and Research were categorized as proactive whereas the other two; DEI Communications and Community, Government Relations, and Philanthropy were categorized in progressive stage.

READ MORE: PTCL, Dell to launch Azure Services in Pakistan

The GDEIB, ‘Diversity Hub’, a center of expertise with HR Metrics, Islamabad, holds annual awards to celebrate the accomplishments of organizations in GDEIB in 15 categories on a maturity scale of 1-5. Award submissions are reviewed by globally renowned jury members through a democratic review process.

Commenting on the achievement, Group Chief Human Resource Officer, PTCL & Ufone, Syed Mazhar Hussain said: “We are thrilled to receive outstanding recognition at the GDEIB Awards for diversity and inclusion at PTCL. As an organization, we believe in making sustained efforts to foster gender and cultural diversity and continuously strive to provide an environment for these changes to take root.

READ MORE: PTA renews PTCL’s license for next 25 years

“We are glad that we have been able to provide a favorable and equitable working environment and growth-oriented culture to our diverse teams.”

PTCL Group has strongly established itself as one of the most forward-looking organizations in terms of inclusivity, equity, and acceptance. The GDEIB Award is the second of its kind to acknowledge the Group’s credentials in this regard this year, following its success at the Pakistan Society of Human Resource Management (PSHRM) Awards earlier this year.

READ MORE: PTCL signs deal to launch Avaya Spaces

January 10, 2022
Retail sector’s sales worth Rs16 trillion not in tax net: Tarin

ISLAMABAD: Finance Minister Shaukat Tarin on Monday said that sales worth Rs16 trillion of the retail sector is not in the tax net.

“The total sale of retail sector in the country is Rs20 trillion, and Rs16 trillion of it is not in the tax net,” he said while briefing the Senate’s Standing Committee on Finance and Revenue.

The committee continued its deliberations under the chairmanship of Talha Mehmood on the fourth consecutive day to finalize its recommendations on the Finance Supplementary Bill 2021. The minister said the Federal Board of Revenue (FBR) had refunded some Rs50 billion in six months, which had never happened in any government’s tenure.

READ MORE: Tarin warns tax evaders of strict actions

He said the sale of pharmaceutical industry was around Rs700 billion but it was paying tax on only Rs100 billion.

A number of sectors like fertilizer, pesticide, and agriculture did not fall under the tax regime, he added. Shaukat Tarin said the International Monetary Fund (IMF) wanted to tax Rs700 billion but the government brought the target down to Rs343 billion through negotiations.

He said the IMF’s review meeting was postponed to January 28 on the government’s request. The minister said no additional tax was imposed on the infants formula milk of normal price, rather only expensive imported one was suggested to be taxed.

READ MORE: Tarin directs FBR to ensure security of taxpayers’ data

He clarified that all amendments pertaining to the tax were not being undertaken under the IMF’s pressure as the government already had the agenda to bring tax reforms for the socio-economic development of the common man.

The committee chairman asked the government take the parliament on board whenever it would opt for any IMF programme in future.

The minister said the government had a cushion of Rs33 billion to provide subsidy on laptops and solar panels. Tarin said the federal government was also considering to bring the agriculture income under tax and for that Punjab and Khyber Pakhtunkhwa governments had already agreed, while negotiations with the AJK and Gilgit Baltistan governments were in progress. “We will also convince Sindh and Balochistan in this regard.”

He said the rise in exchange rate was due to international commodity prices and situation in Afghanistan.

READ MORE: Mini-budget: FBR to generate Rs4.5bn through tax rate increase on cellular services

The minister added that in order to promote tax culture, the government had launched a cash price scheme for the public. The supply chain could play an important role as Rs15 trillion could be collect from that source.

Through track and trace system, cigarette and other industries were being brought under tax net, he added. With respect to the State Bank of Pakistan bill, the minister dispelled the impression of compromising the country’s autonomy.

The government successfully pursued the IMF to omit five important clauses from the bill. The employment period of SBP governor would be reviewed by the government itself.

While discussing the proposed Supplementary Finance Bill, the committee recommended withdrawing tax on desalination plants, and medical, surgical, dental and veterinary furniture. It also proposed to withdraw tax on machinery and equipment for development of grain handling and storage facilities, including silos.

READ MORE: Mini-budget: Advance tax on motor vehicles doubles

The committee also rejected additional tax on imported yogurt, butter, Desi ghee, milk and cream. The meeting was attended by senators Farook Ahmed Naek, Saleem Mandviwala, Sherry Rehman, Mohsin Aziz, Zeeshan Khanzada, Musadik Masood Malik, Syed Faisal Ali Subzwari and Faisal Saleem Rehman.

January 10, 2022
Dogecoin to Pak Rupee on January 10, 2022

KARACHI: The exchange rate of Dogecoin (DOGE) in Pak Rupee (PKR) is Rs26.67 on January 10, 2022, in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate Rs27.64 on January 09, 2022.

The rate of Dogecoin in US Dollar (USD) is $0.15 on January 10, 2022, in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate $0.15 on January 09, 2022.

Disclaimer: All data and information are provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.

Dogecoin to Pak Rupee on January 09, 2022

January 10, 2022
Retail price of sugar may be abolished for sales tax

ISLAMABAD: The government has proposed to withdraw sugar for charging sales tax on retail price by making amendment in the main tax law.

Through Finance (Supplementary) Bill, 2021 dated December 30, 2021, the government proposed to withdraw the condition of collecting sales tax on sugar retail price.

The government after just six months of making legislation regarding sales tax on sugar has proposed to withdraw the law.

READ MORE: Jahangir Tareen’s sugar mill declares 248% rise in annual profit

In case the parliament approve the bill, then whatever retail price is the sales tax to be collected at the value notified by the Federal Board of Revenue (FBR).

The FBR through SRO 1027(I)/2021 dated August 16, 2021, notified the minimum value of the domestically produced white crystalline sugar at Rs72.22 per kilogram from Rs60/kg.

The FBR on July 01, 2021 issued Circular No. 02 of 2021 to explain inclusion of sugar in the Third Schedule to the Sales Tax Act, 1990.

“Currently, the price of white crystalline sugar is fixed at Rs60/kg in terms of SRO 812(I)/2016 dated September 02, 2016, which is considerably below the actual market price of the commodity. In order to address this anomaly, sugar is proposed to be included in the Third Schedule to the Sales Tax Act, 1990, so that sales tax is charged and collected on actual retail price of the product at the manufacturing stage.

READ MORE: Digital tax monitoring yields Rs32.43bn from sugar sector

“This measure would not only ensure due payment but also help in putting a more effective price control mechanism in place for sugar.”

In its memorandum on the finance supplementary bill, PwC A. F. Ferguson & Co. – a chartered accountancy firm, said that goods specified in the Third Schedule are subject to sales tax on their retail price.

“At present, the Government is empowered to include or exclude any goods from the Third Schedule through a notification. The Bill proposes to vest such power to the Board [FBR].”

READ MORE: FBR tightens condition for tax stamped sugar bags

Through the Finance, 2021 sugar was included in the Third Schedule whereby sugar supplied other than as industrial raw material to pharmaceutical, beverage and confectionary industries was subject to sales tax at retail price.

Through SRO 989(I)/2021 dated August 5, 2021, sugar was taken out of Third Schedule for the period from July 1, 2021 till November 30, 2021.

The bill proposes to exclude sugar from Third Schedule w.e.f. December 1, 2021; thus, making it liable to sales tax at its value of supply across the board.

READ MORE: FBR decides posting officials for sugar crushing 2021-22

KPMG Taseer Hadi & Co. – another chartered accountancy firm, explained that the Finance Act, 2021 had put sugar at serial No. 50 of the Third Schedule with the exception of sugar supplied as an industrial raw material to pharmaceutical, beverage and confectionary industries.

“Now the bill proposes to omit the entry, effective from December 01, 2021, meaning thereby that henceforth supply of sugar will be taxable at 17 per cent of the value thereof.”

January 10, 2022
PTA allows free mobile calls for Murree emergency

The Pakistan Telecommunication Authority (PTA) has announced the provision of free mobile calling facilities for individuals stranded in Murree and the Galliat region due to extreme weather conditions. This emergency initiative was implemented on Sunday following reports of severe disruptions caused by heavy snowfall and traffic gridlocks in the area.
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January 9, 2022