Business leaders have raised serious concerns over the continuous intervention of the International Monetary Fund (IMF), warning that its influence is exacerbating Pakistan’s economic struggles.
(more…)Author: Mrs. Anjum Shahnawaz
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Prices of essential items surge by 19.5% in Pakistan
ISLAMABAD: The prices of essential items have surged by 19.5 per cent during past one year by week ended December 16, 2021, Pakistan Bureau of Statistics (PBS) said.
The year on year trend depicts increase of 19.49 per cent when compared with the week ended December 17, 2020.
READ MORE: Headline inflation surges by 11.5% in November 2021
The PBS issued Sensitive Price Indicator (SPI) to gauge inflation on weekly / short term basis. The SPI is computed on weekly basis to assess the price movements of essential commodities at shorter interval of time so as to review the price situation in the country. SPI comprises of 51 essential items collected from 50 markets in 17 cities of the country.
The prices of following essential items registered growth on year on year basis:
READ MORE: Comparing inflation target not correct: State Bank
Electricity for Q1 (83.95 per cent), LPG (65.26 per cent), Cooking Oil 5 litre (60.37 per cent), Vegetable Ghee 1 Kg (57.56 per cent), Vegetable Ghee 2.5 Kg (55.62 per cent), Mustard Oil (55.60 per cent), Washing Soap (45.75 per cent), Petrol (35.42 per cent), Chilies Powdered (32.24 per cent), Pulse Masoor (29.52 per cent) and Diesel (26.72 per cent), while major decrease observed in the prices of Onions (28.72 per cent), Pulse Moong (24.87 per cent), Chicken (16.09 per cent), Tomatoes (14.76 per cent), Potatoes (14.58 per cent) and Eggs (9.86 per cent).
READ MORE: Inflation is core issue in Pakistan: PM Imran
The SPI for the current week ended on December 16, 2021 recorded an increase of 0.55 per cent. Increase in the prices of food items Pulse Masoor (4.11 per cent), Salt (3.70 per cent), Pulse Gram (2.08 per cent), Bananas (1.69 per cent), Mustard Oil (1.35 per cent), Pulse Mash (1.32 per cent), non-food items Electricity for Q1 (10.37 per cent) and Washing Soap (1.23 per cent) was observed with joint impact of (1.55 per cent) into the overall SPI for combined group of (0.55 per cent).
On the other hand, decrease observed in the prices of Potatoes (15.52 per cent), Tomatoes (12.65 per cent), Chicken (5.94 per cent), Onions (3.94 per cent), Diesel (3.48 per cent), Petrol (3.40 per cent), Eggs (1.69 per cent), Gur (1.34 per cent), Sugar (1.29 per cent), Chilies Powdered (0.57 per cent), Beef (0.54 per cent), Pulse Moong (0.37 per cent), Rice Basmati Broken (0.20 per cent), Mutton (0.15 per cent) and Wheat Flour (0.04 per cent).
During the week, out of 51 items, prices of 17 (33.34 per cent) items increased,15 (29.41 per cent) items decreased and 19 (37.25 per cent) items remained stable.
READ MORE: Consumer confidence declines sharply on high inflation
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Tarin assures car importers of maximum support
ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, assured an association of car dealers and importers of maximum support in resolving their issues during a meeting held on Friday.
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Dr. Alvi rejects banker’s plea in woman harassment case
ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, has rejected a petition filed by a banker for reinstatement into service, who was sacked for harassing a woman.
The petitioner filed the appeal before the president against the decision of the Federal Ombudsman for Protection against Harassment of Women at Workplace which had modified the punishment of “dismissal from service” into “removal from service”.
READ MORE: President Alvi rejects MCB Bank’s appeal in fraud case
The President upheld the orders of the ombudsman noting that the petitioner was awarded the penalty of dismissal from service after inquiry wherein allegations of harassment stood established against him and the petitioner had failed to point out any illegality with the order of the learned ombudsman.
According to the background of the case, Naeem Iqbal was appointed as Bank Cashier Grade-1 at Bank Alfalah Ltd, on February 01, 2006, and he was later promoted to Operation Officer, Counter Services Manager and Branch Operation Manager in 2010, 2014 and 2016 respectively.
READ MORE: President Alvi orders two banks to pay victims of fraud
Ms Habiba Rauf had filed a complaint before the management of the bank alleging acts of harassment against the accused.
After inquiry, Iqbal was found guilty and, consequently, dismissed from the service by Bank Alfalah Ltd.
After making a representation before the competent authority, he filed an appeal before the Woman Ombudsman who ordered that the appeal of the accused deserves outright dismissal, yet, on considering his long service and the fact that he has a large family, consisting of small kids and aged parents, leniency in punishment looks more appropriate and nearer to justice and fair play.
READ MORE: President Alvi orders State Life to pay death insurance
The ombudsman, therefore, modified the punishment of “dismissal from service” into “removal from service” and disposed of his appeal.
Subsequently, Naeem Iqbal filed a representation with the President for reinstatement into service. While disposing of his appeal, the President noted that the petitioner was seeking setting aside of the order of the bank, dated March 18, 2019, and reinstatement into service purely on humanitarian grounds.
The learned Ombudsman had already converted the penalty of dismissal to removal from service on such grounds.
The President observed that since the petitioner had failed to point out any illegality with the order and no justification existed to interfere with the order of the Ombudsman, therefore, the instant representation is dismissed.
READ MORE: Dr. Alvi opens property exhibition for UAE based NRPs
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FBR notifies increase in sales tax on petrol, HSD
The Federal Board of Revenue (FBR) has announced an increase in sales tax on the supply of petrol and high-speed diesel (HSD), as outlined in the recently issued SRO 1640(I)/2021.
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Old currency notes can be exchanged till December 2022
ISLAMABAD: The federal cabinet chaired by Prime Minister Imran Khan on Tuesday approved the extension in exchanging old Pakistani currency notes.
The cabinet approved the extension of the period for the exchange of old Pakistani 10, 50, 100, and 1000 currency notes till 31st December 2022.
At the meeting, Special Assistant to the Prime Minister Dr. Faisal Sultan gave a briefing on the preventive measures regarding the new type of Corona variant, Omicron.
The cabinet emphasized the need to increase vaccinations, maintain social distance, and wearing masks.
It was informed that at present 20 million people in Pakistan have not been vaccinated with the second dose of Corona Vaccine.
READ MORE: Cabinet renews aviation licenses of four airlines
The cabinet appealed to all such citizens to take the second dose as soon as possible to prevent the spread of COVID.
The meeting was also informed that Immunity increases 17-folds after the second dose of the vaccine.
The Prime Minister directed the Federal Ministers Asad Umar and Ms. Zubeida Jalal to visit Gwadar as soon as possible so that recommendations could be formulated for quick resolution of the problems of the people of Gwadar.
The meeting was briefed regarding the introduction of electronic voting machines and voting rights for overseas Pakistanis. The Cabinet welcomed the ECP’s decision to use an electronic voting machine in the local body elections in Islamabad. The Cabinet was given a detailed briefing on the schedule regarding delivery and use of electronic voting machines at all polling stations in the country and training of staff.
READ MORE: Pakistan abolishes visa fee for Afghans
The Cabinet expressed its firm resolve to hold the next elections through electronic voting machines after the implementation of laws regarding electronic voting machines and voting rights for overseas Pakistanis.
Advisor Finance presented a comparative review of the prices of essential commodities to the Federal Cabinet. The weekly inflation rate has come down by 0.07 per cent. Prices of Sugar, flour and household items have decreased. Collectively, prices of 09 items decreased. Prices of 23 items remained stable. The Cabinet was informed that apart from the prices of Banaspati Ghee and tea leaves in the region, prices of all other essential items are lower in Pakistan.
These items include flour, grams, dal mash, dal mung, tomato, onion, chicken, and petrol. Concerns were raised over higher prices of essential commodities in Sindh including flour, sugar, milk, ghee, and pulses.
The Cabinet approved the amendment in the bilateral air route between Pakistan and Tajikistan. This decision will reduce both air distance and travel costs.
The Cabinet allowed Kazakh Air Company (SCAT) to operate in Pakistan to start air travel between Pakistan and Kazakhstan. The decision will enable direct air travel between Pakistan and Kazakhstan and help boost bilateral trade.
READ MORE: Pandora papers: PM says returning taxpayers’ money
To promote trade between Pakistan and Central Asian countries, the Cabinet directed the Aviation Division to start work on finalizing air travel agreements with all Central Asian countries.
The Cabinet approved an amendment to the air travel agreement between Pakistan and Iraq. This decision will increase the number of commercial flights between Pakistan and Iraq.
The Cabinet was informed that there is no shortage of urea in the country at present. However, to ensure the supply of urea fertilizer for the Rabi crop in the country, the following approvals were given.
Sui Northern Gas Company will supply gas to urea plants by January 2022. Gas supply to Pak Arab and Fatima Fertilizer Plants will be ensured. The process of importing additional 50,000 tons of urea should be completed expeditiously. The cabinet was also informed that the price of urea per sack in Pakistan is about Rs. 1864 while in other countries it is being sold at Rs. 10,000 per sack.
The present government has taken huge and significant steps for the development of agriculture in the country and the welfare of farmers.
READ MORE: Prime Minister issues directives for reducing burden of indirect taxes
The Cabinet was given a detailed briefing on sugar production and sugar prices in the country. The Cabinet expressed satisfaction over the current stock and price of sugar. The Prime Minister directed that the strategic reserves of sugar be maintained so that prices remain stable. The Cabinet also approved the issuance of the recommendations of the report of the Special Committee on Sugar Sector Reforms for public opinion.
On the basis of humanitarian grounds, the process of obtaining Pakistani visas for Afghans has been further eased. After this decision, the security clearance required for obtaining a visa has been reduced from 30 days to 15 days.
It was also decided to further facilitate the registration process of international NGOs working for the welfare and assistance of the Afghan people.
This decision has been made on humanitarian grounds and to aid the people of Afghanistan.
The facility for Afghans immigrating to other countries through Pakistan has been extended for another 60 days. This facility includes travel by land and air routes.
It was also decided to make the process of obtaining a Pakistani visa easier for the officials of international NGOs working for the welfare of the Afghan people.
READ MORE: Authorities seal 192 illegal pumps selling smuggled petroleum products
This decision has been made on humanitarian grounds and for helping the people of Afghanistan. OGRA’s annual report for the year 2019-20 was presented to the Cabinet.
The report comprises recommendations regarding the performance of Pakistan’s petroleum industry, production, supply and demand, and improvement of the petroleum industry.
The Cabinet was informed that at present there is a 27-days stock of petrol and diesel. About 75 Exploration licenses generated revenue of Rs. 29 billion. Safety standards for LPG cylinders are being improved and a public awareness campaign is underway. 10 licenses were issued to LPG companies. An audit is being carried out to prevent gas theft. Action is being taken against those selling petrol at illegal petrol pumps and in plastic containers.
The Cabinet endorsed the decisions taken at the meeting of the Committee on Institutional Reforms held on November 24, 2021.
CCIR Decisions – Merger of National Research Institute for Fertility Care Karachi with National Institute of Population Studies, Islamabad.
The Cabinet ratified the decisions taken in the meeting of the Committee on Energy held on 02 December 2021.
CCOE Decision – Tariff Protection (Deemed Duty) for Refineries – Report by Implementation Committee for renegotiation with IPPs under 2002 Power Policy (Rs. 134 billion paid to IPPs) The Cabinet ratified the decisions taken at the meeting of the Economic Coordination Committee (ECC) held on December 10, 2021.
ECC decisions
Small and Medium Enterprises (SMEs) Policy 2021-25
Commercial Gas allocation from M/S United Energy Pakistan’s Fields.
The mechanism for Granting Concessionary Tariff to the eligible Consumers of Zero-Rated Industrial Consumers of Lahore and Sundar Industrial Estate and for prospective Industrial Estates.
Cabinet approved giving the additional charge of CEO, Central Power Purchasing Agency to Chief Financial Officer, CPPA.
Cabinet approved NDMA’s assistance to Afghanistan on humanitarian grounds. The government of Pakistan has already provided 200,000 tons of wheat under the World Food Program and has provided an additional 50,000 tons of wheat as aid to the Afghan people.
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FBR to distribute prizes worth Rs53 million every month
ISLAMABAD: The Federal Board of Revenue (FBR) will distribute prizes worth Rs53 million every month. The first lucky draw will be held on January 15, 2022. The FBR will distribute the prizes to 1,007 winners.
The said prize scheme was introduced through Finance Act-2021 which was followed by issuance of rules for the prize scheme on 9th August, 2021 by FBR.
The computerized balloting for the prize scheme will be held on 15th of every month, the first one on January 15, 2022 at FBR (HQs), Islamabad. Initially, the denomination of prizes has been set as Rs. 10,00,000 (1st Prize), Two prizes of Rs. 500,000, four prizes of Rs. 250,000 and one thousand prizes of Rs. 50,000 each.
This lucrative Prize Scheme of FBR aims to maximize transparency and plug revenue leakage through real time monitoring of sales.
It also aims to ensure that tax collected from customers at the point of sale is deposited in state exchequer. This will not only force the Tier-1 retailers to expedite the integration of their retail outlets with FBR POS System but will also encourage the customers to prefer shopping from the POS-integrated retail outlets.
FBR is expecting a substantial increase in revenue through this innovative initiative as it will reduce tax evasion and minimize concealment of sales by the retailers.
Customers can participate by verifying the receipt of purchases through Tax Asaan Mobile App of FBR or by sending the invoice number through an SMS on 9966. FBR has launched a very aggressive print and electronic media campaign for the awareness of people across the country.
The FBR also rebutted disinformation being spread on the social media against the proposed Service Charge of Rs.1 to be collected on all invoices issued by Tier-1 Retailers integrated with FBR’s electronic system of real-time reporting of sales.
It is being insinuated as if the rate of the Service Charge is 1 percent instead of Rupee 1 per invoice only. This baseless propaganda by some vested interests is thoroughly malicious in intent and definitely suspicious in content.
The nominal Service Charge at Re.1 per invoice of whatever denomination, would be collected under Section 76 of the Sales Tax Act, 1990. This petty amount will be utilized to ensure integration of all Tier-1 Retailers, promote ongoing publicity campaign, and finance a prize scheme for all customers who duly verify their invoices to determine the validity and genuineness of the invoices issued by the integrated Tier-1 Retailers, FBR further clarified.
Hence, the above unfounded campaign appears to have been initiated by those vested interests who tend to oppose POS integration. They continue to collect Sales Tax from the general public but are always reluctant to deposit the same in the Government Treasury.
FBR has reaffirmed its unflinching resolve to continue integrating Tier-1 Retailers across the country with full vigor and an indomitable spirit.
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Exchange rates: PKR to USD on December 14, 2021
KARACHI: Following are the rates of buying and selling of one US dollar (USD) in Pakistani Rupee (PKR) in the open market on December 14, 2021:
Buying: Rs 179.00 to the US Dollar
Selling: Rs 180.50 to the US Dollar
The buying rate means an exchange company or a bank buys foreign currency from a customer.
The selling rate means an exchange company or a bank sells the foreign currency from a customer.
The rate has been updated at 11:56 AM Pakistan Standard Time (PST).
The US Dollar /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand. Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.
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FBR decides penal action against defaulting retailers
ISLAMABAD: Federal Board of Revenue (FBR) has decided to take all penal action and launch prosecution against defaulting Tier-1 retailers.
In this regard an important meeting was held recently in the FBR headquarter. The meeting was headed by Member Federal Board of Revenue (IR-Operations), Qaiser Iqbal meeting with the top leadership of FBR Field Formations through video link facility.
READ MORE: FBR redefines Tier-1 retailers for integration
He reaffirmed his commitment to continue with integration of eligible Tier-1 retailers with full force and vigor.
He conveyed the unflinching resolve of Adviser to the Prime Minister on Finance and Revenue, Shaukat Tarin with the directions that the largest 500 retailers be fully integrated in the first phase, followed by next 500 and so on.
The prize Scheme launched by FBR on both Print and Electronic Media was also discussed in details.
READ MORE: FBR announces first POS prize scheme draw on Jan 15
He directed the Field Formations to ensure its proper promotion and ensure that the Tier-1 retailers update all their branches on Goolge to facilitate their customers.
Qaiser Iqbal also stressed upon effective enforcement measures for ensuring true and accurate reporting of sales by Tier-1 integrated retailers.
READ MORE: Who are Tier-1 retailers under Sales Tax Act? PkRevenue.com
He emphasized upon adopting all penal and prosecution measures against defaulting Tier-1 retailers on account of non-integration and those involved in tax fraud of any shade or grade.
He also hoped that Team Inland Revenue would spare no effort nor energy to make this innovative campaign on POS a true success story which promises a significant increase in tax revenue.
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Prize Bonds (bearer) expire by this month
National prize bonds (bearer or unregistered) are expiring this month and the bills will become a useless piece of paper after December 31, 2021.
The government has set a deadline of December 31, 2021, to withdraw bearer bonds with denominations of Rs7,500, Rs15,000, Rs25,000, and Rs40,000.
READ MORE: History of Prize Bonds in Pakistan
The holders of these bonds have been asked to exchange or convert those bills before the cutoff date.
The State Bank of Pakistan (SBP) data showed that bearer bonds worth Rs28 billion were still in the possession of the investors by the end of October 2021.
However, the bondholders surrendered these bills worth Rs437.59 billion during the last one year. The stock of these bearer bonds is Rs465.59 billion by October 2020.
In June 2019, the government decided to discontinue high denomination bearer bonds in a phased manner. The government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds. Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.
READ MORE: Income tax on prize bonds, lottery winning
The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of SBP Banking Services Corporation, and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited, and Bank Alfalah Limited.
The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.
READ MORE: Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith
The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP Banking Services Corporation as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.
Following the announcement to discontinue the bearer bonds the investments in premium prize bonds recorded a phenomenal surge.
The investment in premium prize bonds increased to Rs54.5 billion by the end of October 2021 as compared with Rs20.54 billion in the same month of the last year, showing an increase of 169 per cent.