The President ordered the bank to pay the amount to complainant in fraud case, a statement said on Saturday.
According to the details, President Dr. Arif Alvi has rejected the representation, filed by the Soneri Bank Ltd (SBL) against the order of the Banking Mohtasib, and has made the bank responsible to make good the loss of the money to the complainant without further delay.
While upholding the orders of the Banking Mohtasib to pay an amount of Rs 800,000 amount to the complainant, the President stated in his decision that the bank could not escape the liability in a case of this kind, when the commission of fraud with the account holder by its management was established and admitted.
He said that the ample opportunity had been provided to the Bank before the learned Banking Mohtasib to defend and controvert the claim of the complainant and even before the forum, however, the bank had failed to discharge the burden and statutory liability cast upon it under the law.
Muhammad Danish Naseem (the complainant) maintains an account with the Soneri Bank Ltd Sargodha Road Branch, Sheikhupura.
Danish opened his account on 22-10-2018 in the bank branch and requested the Manager to deposit PKR. 2,000,000/- (two million rupees) cash in the said account. Whereas, the Manager gave him deposit slips of Rs. 500,000/-, Rs. 900,000/- and Rs. 600,000/- respectively.
Despite insistence of the account holder for issuing one deposit slip of amount i.e. Rs. 2 million, the bank manger issued three deposit slips saying that it was to overcome the restrictions of the SBP.
Later, the account holder wanted to draw money from his account but there was no sufficient balance in his account. He lodged a complaint with the bank’s authorities but his grievance was not addressed.
Although, the complainant possessed valid deposit slips admittedly issued by the Ex-Manager bearing his genuine signature and Branch Stamp affixed thereon which validated customer claim to the extent that the Bank had not accounted for amounts of PKR. 2,000,000/- in his account.
Furthermore, the Bank had admitted during the proceedings before the Banking Mohtasib that the receipts in possession of the customers bore signatures of the Bank’s ex-Manager.
Despite all these proofs, the complainant was compelled to run from pillar to post and no relief was provided to him. Feeling aggrieved, Danish Naseem approached the Banking Mohtasib for his grievance.
The Banking Mohtasib, under Section 82 D of the BCO read with Section 9 of the Federal Ombudsmen Institutional Reforms Act, 2013 (No. XIV of 2013), advised the Bank to forthwith make good the loss by crediting the account of the complainant with a sum of Rs800,000/- in pursuance of the findings.
While rejecting representation of the Bank, the President has noted that it is a case of wrong doing and maladministration by the Bank officials and it is, therefore, responsible to make good the loss of the complainant.
He further stated that the ambit and extent of jurisdiction of Banking Mohtasib was spelt out under Section 82A (3)(a)(e), Section 82B(4)(5) and Section 82F of the Banking Companies Ordinance, 1962.
The cumulative reading and perusal of these provisions of law undoubtedly leads to the conclusion that the Banking Mohtasib is to inquire into the complainants about banking malpractices, maladministration, wrong doings, the fraudulent transactions, the corrupt and malafide practices by the Bank officials and pass appropriate orders on conclusion of inquiry.
These powers of the Banking Mohtasib when considered in context with Section 18 and 24 of the Federal Ombudsmen Institutional Reforms Act, 2013 further show that in matters falling within the jurisdiction of the Banking Mohtasib, stated the decision.
KARACHI: Shaukat Tarin, Advisor to Prime Minister on Finance and Revenue, on Friday said that comprehensive economic plan is pivotal to regain Pakistan’s economic glory.
“Comprehensive economic plan and political will was pivotal in order to regain country’s lost economic glory,” he said.
He stated this while addressing as a chief guest at 18th Annual Excellence Award ceremony of Chartered Financial Analysts (CFA) Society at a local hotel.
He said almost all economic indicators were showing positive growth.
Shaukat Tarin said when the PTI government came into power there was large current account deficit and devalued rupee. The government entered into a tough IMF program with many conditions which initially led to slowing down the economy.
Then came the COVID-19 pandemic which also damaged our economy to some extent.
However, he said, Prime Minister Imran Khan’s visionary idea to impose smart lockdown which was recognized globally saved the country from further economic crisis.
Shoukat Tarin said PM concurrently invested in agriculture, housing, industrial and exports sectors. All those areas which promoted employment in the country and resulted in 3.94 growth last year.
He said the government to strengthen industry and exports the government gave incentives to both sectors with prime focus on IT industry and its related exports.
Besides, the government also was going to give subsidies to energy sector for its uplifting.
Advisor to PM also shed light on economic crisis caused by the improper plannings and no execution of policies of previous governments.
ATTOCK: Prime Minister Imran Khan on Friday directed the law minister to pursue the cases against sugar mills on urgent basis for the benefit of general public and for addressing price hike of the commodity.
To address the ongoing sugar crisis, Prime Minister Imran Khan on Friday directed the law minister to urgently get vacated various stay orders obtained by the sugar mill owners from courts against the government.
Addressing a public gathering after the foundation-laying of a 200-bed mother and child hospital, the prime minister said closure of sugarcane crushing by three sugar mills in Sindh and the subsequent hoarding was the reason behind the current spike in sugar prices.
The sugar price soared as wholesale rate touched Rs150 per kilogram in most parts of the country and retail rate up to Rs160kg.
Also, the other stay order was against Federal Board of Revenue (FBR) in line with its action on tax evasion and the ‘off-the-books’ activity of sugar mills.
On overall inflation, he said Pakistan was bearing the impact of global price hike of commodities, mainly due to shortage of supplies in the wake of pandemic.
He said the sharp increase in global petroleum prices from $45 to $85 dollar greatly affected Pakistan as the country relied on imports of several items, including petrol, palm oil, and pulses.
Despite such a situation, he said, Pakistan had the lowest rate of petroleum at Rs 146 per litre among importing countries compared with India at Rs 250 and Bangladesh at Rs 200 per litre.
Imran Khan hoped that as the world businesses open up after decline in pandemic following the coming winters, things would improve.
To reduce the financial impact on poor, he said the government had recently provided food subsidies to 130 million people across the country through Ehsaas programme.
He mentioned that other socio-welfare initiatives such as Kamyab Pakistan would provide interest-free loans to two million households for house building, start-ups, and skills training. Also, the Kamyab Jawan is providing loans to youth across the country, he added.
The prime minister said establishment of five mother and child hospitals in two years would ensure provision of health facilities to women on health issues related to gynecology and obstetrics.
He said it was shameful that due to the apathy of previous governments, a rise in deaths of women during pregnancy was recorded in the wake of non-availability of medical facilities.
He said by March, all households of Punjab would get health insurance of Rs 0.7 to one million for their medical treatment.
He termed the health card a proper system where the private sector would also be encouraged to establish hospitals in rural areas so as to expand the network of healthcare facilities.
Imran Khan said the priority of his government in its tenure was to uplift the people and provinces that lagged behind in development.
On completion of five years, he said, his biggest success would be to bring a positive change in the lives of common man.
He regretted that Pakistan in the past suffered the rule of two political families in 30 years that incurred a huge loss to national exchequer.
The prime minister mentioned that under his government, the country for the first time was witnessing an era of long-term planning besides the boom in industrial growth, exports and historic foreign remittances.
Chief Minister Punjab Usman Buzdar said the mother and child hospital in Attock would provide quality healthcare facilities to two million residents, particularly women, of the Attock district and in the suburbs.
He said the Punjab government would complete the 200-bed hospital equipped with modern facilities in two years at a total cost of Rs 5.3 billion. The federal government has already released Rs 2.66 billion to Punjab for the project.
He said establishment of 21 different universities in the province was also under consideration.
Punjab Health Minister Dr Yasmin Rashid said the mother and child hospitals would help the women get timely medical advice and treatment.
She said after 50 years, the second phase of Nishtar Hospital would be constructed in Multan to meet the medical needs of the growing population.
The FBR said that the Finance Act, 2019 added sub-section 6 to the Section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailer who did not integrate its retail outlet in the manner prescribed under sub-section 9A of Section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for the period would be reduced by 15 per cent. The figure 15 per cent has been raised to 60 per cent through Finance Act, 2021.
The FBR further said that in order to operationalize the important provision of the law, a system-based approach has been adopted whereby all Tier-1 retailers, who are liable to integrate but have not yet integrated, with effect from July 2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 3, 2021.
Through the latest STGO No. 04 of 2022, a list of 608 identified Tier-1 retailers has been placed on the FBR’s portal allowing them to integrate with the FBR’s system by November 10, 2021 and the procedure of exclusion from this list of 608 identified Tier-1 retailers shall apply as laid down in Para 2 STGO 1 of 2022 dated August 3, 2021.
Upon filing of sales tax return for the month of October 2021 all notified Tiler-1 retailers having yet integrated, the input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.
KARACHI: The stock market gained 77 points on Friday amid profit taking observed during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 47,296 points from previous day’s closing of 47,219 points.
Analysts at Topline Securities said that KSE-100 index opened on a positive note and gained to make an intraday high of 389 points, however profit taking was observed during the latter hours of the trade as index declined to close at 47,296 level up by 77 points).
Major contribution to the index came from UBL, HBL, MCB, OGDC and PIOC, as they cumulatively contributed 102 points to the index, whereas on the other hand FFC, TRG, SYS, POL and THAL lost value to weigh down on the index by 124 points.
Traded volume and value for the day stood at 469 million shares and Rs.15.95 billion respectively. WTL was today`s volume leader with 42 million shares.
ISLAMABAD: The government on Thursday night announced an increase of Rs8.03 to Rs145.82 per liter in the price of petrol effective from November 05, 2021.
The price has been increased from previous high of Rs137.79.
Similarly, the price of high speed diesel has been increased by Rs8.14 to Rs142.62 from Rs134.48.
The rate of kerosene oil has been increased by 6.27 per liter to Rs116.53 from Rs110.26. Likewise, the price of light diesel oil has been increased by Rs5.72 per liter to Rs114.07 from Rs108.35.
A notification issued by the Finance Division stated that on November 01, 2021, the prime minister had not agreed with the proposals worked out by the Oil and Gas Regulatory Authority (OGRA) and the finance division directed to maintain the prices as notified on October 16, 2021.
It is pertinent to mention that maintaining the October 16, 2021 petroleum prices had some underlying concerns for cash flow issues due to short recovery of the cost, according to the statement.
It is important to note that in the previous petroleum prices, already a significant relief was provided to the consumers. The government is cognizant of its responsibility to provide maximum relief to the consumers.
“This has dented the petroleum levy budget of Rs152.5 billion during July – September, 2021 as compared to Rs20 billion realized only,” it said.
Foregoing in view, prices of petroleum products have been increased partially as compared to the prices being worked out by the OGRA. If the government had accepted OGRA’s recommendations, the new prices would have been much higher.
Infact, the government has absorbed the bulk of the pressure after making adjustment after making adjustment in the sales tax and petroleum levy. The collection of petroleum levy is far short of its fixed target for the first quarter of the fiscal year 2021/2022, it added.
ISLAMABAD: FINCA Microfinance Bank Pakistan has shown intention to expand its operation in the country. Ms. Andree Simon, Global Chief Executive Officer of FINCA Microfinance Bank said on Thursday at a meeting with Shaukat Tarin, Advisor to the Prime Minister on Finance and Revenue
Ms. Andree Simon briefed about operation of FINCA Micro Finance Bank Pakistan and apprised that the Bank is working to provide micro finance services to the under-privileged segments of this society.
She further added that FINCA micro-finance Bank is operating in 20 developing countries in the world including Pakistan with 130 branches across the country and is very keen to expand its operation in Pakistan. FINCA Global considers Pakistan as a very promising market for its operation.
Advisor to the PM on Finance and Revenue Shaukat Tarin welcomed the FINCA microfinance Bank in Pakistan and said that present government is determined to uplift the living standards of the under privileged especially in the rural areas.
Therefore, government is encouraging the foreign investment and focusing on increasing the footprints of micro-finance banking in Pakistan for the stimulating the economic activity in the country.
Tarin appreciated FINCA for reaching out to the remote areas of Pakistan where formal banking sector is not available.
The government is ready to provide all out support and cooperation to the microfinance banking sector in Pakistan, he added.
KARACHI: The exchange companies are required to deploy biometric verification system (BVS) for transactions of foreign currencies from November 6, 2021.
“All exchange companies are advised to deploy BVS as provided by NADRA at their outlets for biometric verification after November 05, 2021,” the State Bank of Pakistan (SBP) said in a communication on Thursday.
The SBP said that exchange companies were required to implement the BVS latest by October 22, 2021. Towards this, State Bank had requested National Database Registration Authority (NADRA) to facilitate the exchange companies in the implementation of BVS.
“However, given the technical challenges currently faced by the exchange companies (EC Sector), NADRA proposed to offer an android based BVS for exchange companies.”
The State Bank on request of the Exchange Companies Association of Pakistan (ECAP) allowed the exchange companies to accommodate its customers by using the services of another facility of NADRA named e-Sahulat till the implementation of android based BVS i.e. November 05, 2021.
The SBP said that it forwarded the technical requirements, received from NADRA, to exchange companies with an objective to ensure implementation of BVS with the given timelines. The SBP further stated that any technical and financial matter related to implementation of BVS is the sole discretion of NADRA and respective exchange companies. “Therefore, ECAP or individual exchange company may like to approach NADRA directly for any technical / financial issues, regarding implementation and procurement of systems, devices etc.”
The SBP advised all exchange companies to deploy BVS as provided by NADRA at their outlets for biometric verification after November 05, 2021. However, any relaxation / extension in the timeline shall only be allowed to the companies that will approach the SBP with genuine reasons along with an explicit time bound implementation plan.”
The SBP said NADRA has informed that the android-based BVS could also be integrated with the core business application of the exchange companies. “Therefore, all exchange companies are required to continue their coordination with NADRA to ensure that the integrated system is implemented within the stipulated timeline of June 30, 2022,” the SBP added.
ISLAMABAD: Prime Minister Imran Khan on Wednesday announced food subsidy package of Rs120 billion providing 30 percent discount at ghee, flour and pulses.
The prime minister, in his televised address to the nation, said 20 million families would benefit from the subsidy package to be funded jointly by the federal and provincial governments.
Under the package, the beneficiaries would avail a 30 per cent discount on the said three food commodities for next six months.
He said the subsidy package was apart from the ongoing different programs under Ehsaas Initiative worth Rs 260 billion affecting 120 million families.
The prime minister particularly thanked the Ehsaas team for compiling the national database of households to enable the government provide direct subsidy to the entitled families.
“Today, we have a data and now I am in the position to announce… country’s biggest ever welfare program,” he remarked.
The prime minister also announced Rs 1400 billion for Kamyab Pakistan Program aimed at providing interest free business loans to the entitled four million families.
The package consists of interest free loans for house construction, Rs 0.5 million each loan for farmers and businesses besides skill training to a member of the entitled family.
He said under Kamyab Jawan Program had so far given Rs 30 billion loan to 22,000 businesses. The program also featured a program to provide six million scholarship and stipends to the students.
Calling it his dream project, the prime minister the Health Insurance Card has been extended to whole of KP province and would be replicated in Punjab, AJK, GB and federal capital by March next year.
The prime minister also asked the Sindh government to launch the program to provide Rs 1 million health insurance cover to every family.
Imran Khan said the government had inherited a Pakistan with the biggest ever fiscal deficit, foreign debt burden, heaviest mark up, reserves touching the lowest mark, and the kitty with no money to pay back debts.
He thanked Saudi Arabia, UAE and China which supported the country in difficult time to save the country from default.
He said it took almost a year to stabilize the economy which unfortunately followed the outbreak of COVID pandemic – the biggest ever crisis the world faced during last century.
The prime minister felt proud for his team in the NCOC comprising top doctors, cabinet members and Pakistan Army which took bold decisions based on the data and made the country steered through the crisis effectively.
“On one side it was the fear of overcrowding of hospitals like India while the other fear was that the lockdown would destroy the economy. Pakistan opted for the middle course which also involved risks,” he said.
The prime minister recalled that he was pressured to impose India-like blanket lockdown but he said Pakistan was among few countries which successfully sailed through the situation which was also acknowledged by the World Bank, World Health Organization, World Economic Forum as well as the international media including The Economist magazine.
Giving an overview of the COVID impact on world economy, the prime minister the United States spent $4,000 billion to support its economy while Pakistan could only scrape $8 billion to avert the burden of unemployment and support the industry, construction and agriculture.
The prime minister said owing to the government’s prudent policies, the country witnessed a 13.8 per cent growth in rice production, pulses 8 per cent, sugarcane 22 per cent, wheat 8 per cent and cotton 81 per cent growth.
Moreover, an additional Rs1100 billion went to the farmers which was manifested by the record sale of motorbikes, tractors and urea.
He said following the incentives announced by the government, the construction projects worth Rs 600 billion were going on in the country and large scale manufacturing achieved record growth. Moreover, the profit of engineering sector increased by 350 per cent, textile sector 160 per cent, automobiles 138 per cent, cement 113 per cent and oil and gas 75 per cent.
Besides, the country’s tax collection also grew by 37 per cent as the government had already surpassed the set target.
“Our (economic) indicators are on right course. IT achieved 47 per cent growth last year and this year it will touch 75 per cent. This is good news for youth,” he remarked.
The prime minister said no doubt the inflation was an issue but instead of merely criticizing like opposition, the media should also teach the people about the worldwide inflation.
Quoting the Bloomberg Commodity Price Index, the prime minister said commodities’ prices grew by 50 per cent in a year against just 9 per cent in Pakistan.
He said Turkey, US, China and Germany had been facing highest inflation. The gas prices surged by 116 per cent in US, 300 per cent in Europe but Pakistan had made no increase except for the one being imported.
He said oil prices in the global market had increased by 100 per cent but Pakistan shifted only 33 per cent of the burden. Even in India oil prices surged to Rs 250, Bangladesh 200 while it was yet at Rs138 in Pakistan.
The government avoided to shift burden from the masses which otherwise could bring in additional Rs 450 billion revenue to the government.
However, the prime minister said the government would have to increase the oil prices which otherwise would lead to swelling the deficit.
Giving a comparison of food commodities in the region, the prime minister said flour rate was Rs83per kg in India while Pakistan had half of the world’s average price. Moreover, Daal Moong was being sold at Rs338 in India against Rs 162 in Pakistan.
Despite that, the government decided to launch the subsidy program in order to avert the burden of inflation from the people, he remarked.
The prime minister particularly appealed the industrialists and businessmen to take special care of labour class and give them a pay raise considering the inflation.
Commenting on the opposition’s criticism against the government, the prime minister committed to bring down prices of food commodities to half if the opposition leaders’ families brought back even half of the money to the country they had looted over last three decades.
According to the details of the subsidy package provided by the PM Office, the federal cabinet had approved the program on Tuesday which would affect 53 per cent of the country’s population.
Under the package, a subsidy of Rs. 1,000 a month would be given to each of the 20 million families with a poverty score of less than 39 and an income of Rs. 31,500 per month.
Ehsaas has developed a digitally enabled mobile point of sale system in collaboration with National Bank of Pakistan (NBP) to serve beneficiaries through a network of Kiryana stores designated by NBP, all over the country.
This system will digitize parts of the retail sector; there will be use of real time data for decision making. This process will help make beneficiaries and storeowners more digitally adept.
The participating Kiryana store owners will be required to open bank accounts which will help further increase financial inclusion and settlement payments made through RAAST will help increase scale of digital transactions in Pakistan.
For online registration of beneficiaries, Ehsaas will open a registration portal next week.
In interest of transparency, the registered Kiryana stores and beneficiaries will undergo a rigorous verification process to minimize the incidence of fraud.
The federal government and all participating federating units will share fiscal resources in the ratio of 35/65.
The governments of Punjab, Khyber Pakhtunkhwa, Gilgit Baltistan and AJK have already agreed to participate in the programme.
In other federating units, federal share of subsidy worth Rs. 350 per month will be given for each eligible household.
