Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR implements functional system for big taxpayers

    FBR implements functional system for big taxpayers

    ISLAMABAD: Federal Board of Revenue (FBR) has implemented a functional system separating functions of enforcement, audit and legal for big taxpayers.

    This functional system has only been introduced at the large taxpayers units (LTUs) where FBR makes assessment of taxpayers with high annual turnover.

    In order to implement the FBR has issued jurisdiction orders for LTUs Karachi, Lahore and Islamabad.

    According to an order issued on August 05, 2020 the FBR re-designated the jurisdiction of Chief Commissioner Inland Revenue and Commissioner Inland Revenue of LTU Karachi.

    The functional system has been implemented from August 10, 2020.

    The Commissioner Audit shall have powers and functions included:

    Income Tax:

    (a) Calling for information and audit of cases under Part VIII of chapter X, assessment, amendment of assessment and agreed assessment under Part II of Chapter X, charge of tax under Chapter II, computation of taxable income and total income under Chapter III and computation of taxable income under Part II of Chapter X arising out of such orders, rectification of orders related to audit and exercise of powers and functions under Section 175 and 176 or under any specific provision of law and rules provided in the Income Tax Ordinance, 2001 and Schedules thereto in respect of audit and assessment;

    (b) assessment under Section 143 and 144;

    (c) Computation of income chargeable to tax, determination of tax payable thereon, allowing credit of the tax already paid or of the determined refunds while exercising powers and performing function and mentioned at (a) and (b).

    (d) Best judgment assessment under Section 121 read with sub section 10 of Section 177 in respect of cases under audit;

    (e) Exercising powers to determine income under ‘Anti-Avoidance’ provisions contained in Chapter VIII;

    (f) Revision of assessment under Section 122A in respect of audit related cases;

    (g) imposition of penalty under Part X of Chapter X against defaulters in respect of cases under audit;

    (h) Perform any other functions in determining and computing income chargeable to tax and correct tax payable under the said Ordinance and Rules made thereunder;

    (i) To process / finalize complaints in respect of existing taxpayers’ cases;

    (j) Implementation of audit planning and audit strategy in accordance with audit guidelines and audit manuals developed by FBR or Member (Taxpayers’ Audit);

    (k) To grant approval for revision of return of income and wealth statements;

    (l) Disposal of external / internal audit paras related to audit;

    (m) Giving effect to orders of the appellate authorities / FTO orders related to audit;

    (n) Any other audit functions assigned the Chief Commissioner Inland Revenue or FBR for achieving the purpose of the Income Tax Ordinance, 2001 & Rules and Procedures framed thereunder.

    Sales Tax:

    (a) Audit and assessment of registered persons;

    (b) Risk based audit through profiling and analysis;

    (c) Recovery of un-disputed liability detected during audit;

    (d) Monitoring of audit schedule, etc.;

    (e) Maintenance and analysis of audit records and audit related database;

    (f) Post refund audit and scrutiny;

    (g) Deregistration audit;

    (h) Investigative audit in cases related for audit under Section 38 of the Sales Tax Act, 1990, and exercise of powers under Section 38A and 38B in respect of cases under audit;

    (i) Implementation of audit planning and audit strategy in accordance with audit guidelines and audit manuals developed by FBR or Member (Taxpayers’ Audit);

    (j) Disposal of external/internal audit paras related to audit;

    (k) Granting approval for the revision of returns;

    (l) Grant of extension in time/condonation of delay in respect of audit related functions as per the relevant provisions of Sales Tax Act and Rules made thereunder;

    (m) Exercise of powers under Section 38 regarding functions/assignments related to cases selected for audit;

    (n) Exercise of powers under section 45A(4) in respect of the cases related to audit functions;

    (o) Rectification of mistakes in respect of orders relating to audit functions;

    (p) Giving effect to orders of the appellate authorities/FTO orders relating to audit;

    (q) Any other audit function given by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of Sales Tax Act, 1990 and Rules and Procedure framed thereunder.

    Federal Excise:

    (a) Audit and assessment of registered persons;

    (b) Risk based audit through profiling and analysis;

    (c) Maintenance and analysis of audit records and audit related database;

    (d) Implementation of audit planning and audit strategy in accordance with audit guidelines and audit manuals developed by FBR or Member (Taxpayers’ Audit);

    (f) Disposal of external / internal audit paras related to audit;

    (g) Granting approval for the revision of return;

    (h) Grant of extension in time / condonation of delay in respect of audit related functions as per the relevant provisions of Federal Excise Act 2005 and Rules made thereunder;

    (i) Rectification of mistakes in respect of orders relating to audit functions;

    (j) Exercise of powers and chapter IV of FED Act, 2005 regarding functions/assignments related to audit to the extent of conducting search of a premises;

    (k) Any other audit function given by Chief Commissioner Inland Revenue or FBR for achieving the purpose of Federal Excise Act, 2005 and Rules and procedures framed thereunder.

    The Commissioner Enforcement shall have powers and functions included:

    Income Tax:

    (a) Enforcement, recovery and collection of income tax;

    (b) Ensuring and enforcing compliance of the statutory provisions regarding filing of statutory returns, statements, furnishing of information, maintenance of prescribed accounts, documents and records; imposition of penalty and taking other action under the law against non-compliant taxpayers;

    (c) Best judgment assessment under Section 121, except in cases under audit;

    (d) Provisional Assessment under the Tenth Schedule;

    (e) Monitoring of deduction, collection and payment of tax at source by withholding/collecting agents; issuance of exemption/lower rate certificates and charging of tax on defaulting withholding/collecting agents;

    (f) Passing orders under Division IV of Part V of Chapter X of the Income Tax Ordinance, 2001;

    (g) Imposition of penalty and charging default surcharge for non-filing of statutory statements and default of withholding/payment of withholding taxes;

    (h) To make any other related action under the provisions of the Income Tax Ordinance, 2001 regarding withholding taxes;

    (i) Effect collection and recovery of tax under Part-IV and V of Chapter X;

    (j) Determine and issue refunds under Part-VI of Chapter-X including refund adjustments;

    (k) Rectification of mistakes in respect of orders relating to the enforcement functions;

    (l) Giving effect to orders of the appellate authorities / FTOs orders relating to enforcement;

    (m) Rectification of cases not related to audit;

    (n) Launching prosecution under Part-XI of Chapter-X;

    (o) Disposal of international and external audit observation / paras other than those related to audit and assessment;

    (p) Imposition of penalty under Part-X of Chapter-X except the cases under audit;

    (q) Revision of assessment under Section 122A in respect of enforcement related cases;

    (r) Grant of extension in filing of returns/statements;

    (s) Any other powers and functions not specifically assigned to any other commissioner Inland Revenue;

    (t) Exercise powers under Section 175 and 176 in respect of cases other than cases under audit;

    (u) Any other enforcement related powers and functions assigned by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of the Income Tax Ordinance, 2001 and Rules and procedures framed thereunder.

    Sales Tax:

    (a) Enforcement and collection of sales tax;

    (b) Recovery action under section 11 of the Sales Tax Act, 1990 against non-filers and short-filers, and any other auction under Section 11 for enforcement related functions, except the cases under audit;

    (c) Suspension, black listing and deregistration of the registered persons;

    (d) Enforcement of returns;

    (e) Sales Tax registration;

    (f) Processing and sanctioning of refund claims filed under Section 10 and 66 of the Sales Tax Act, 1990;

    (g) Reporting of Revenues;

    (h) Disposal of international and external audit observations/paras related to enforcement functions;

    (i) Disposal of CREST discrepancies;

    (j) Industrial Surveys;

    (k) Powers and functions regarding investigation, prosecution and arrest of a person;

    (l) Implementation of enforcement planning and strategy in accordance with guidelines developed by the FBR;

    (m) Extension in time/condonation of delay regarding filing of returns/refund claims;

    (n) Authorization of zero rated/concessionary imports and local purchases;

    (o) Exercise of powers under Section 38, 38A and 38B regarding functions/assignments related to enforcement;

    (p) Exercise of powers under section 40B and 40C;

    (q) Exercise of powers under section 45A(4) in respect of cases related to enforcement functions;

    (r) Giving effect to orders of appellate authorities / FTO orders relating to enforcement;

    (s) Rectification of mistakes in respect of orders relating to enforcement functions;

    (t) Any other powers and functions not specifically assigned to any other commissioner Inland Revenue;

    (u) Any other enforcement related power function assigned by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of Sales Tax Act 1990 and Rules made there under.

    Federal Excise:

    (a) Enforcement and Collection of Federal Excise;

    (b) Processing and sanctioning of refund claims filed under Federal Excise Act 2005;

    (c) Enforcement of returns and registration of persons liable to be registered;

    (d) Reporting of Revenue;

    (e) Disposal of internal and external audit observations/paras/Crest discrepancies related to enforcement functions;

    (f) Implementation of enforcement planning and strategy in accordance with guidelines developed by the FBR or Member (Enforcement and Accounting);

    (g) Extension in time / condonation of delay for filing of return;

    (h) Exercise of powers under chapter IV of the FED Act 2005 with the exception of the powers and functions assigned to Commissioners Inland Revenue Audit.

    (i) Rectification of mistakes in respect of orders relating to enforcement functions;

    (j) Any other powers and functions not specifically assigned to any other Commissioner Inland Revenue;

    (k) Any other enforcement related power and function assigned by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of Federal Excise Act, 2005 and Rules and Procedures framed thereunder.

    The Commissioner Legal shall have powers and functions included:

    Income Tax:

    (a) Defending appeals before Commissioner Inland Revenue (Appeals), instituting and defending departmental appeals and references under Part-III of Chapter X, prosecution of cases instituted under any provision of the Income Tax Ordinance, 2001, filing and pursuing CPLAs in the Supreme Court of Pakistan, and representing the department in the process of liquidation;

    (b) Defending complaints before Federal Tax Ombudsman (FTO);

    (c) File/defend presentations before the President of Pakistan;

    (d) Appoint legal advisors and assign cases, wherever required, for representation before appellate fora;

    (e) Grant recognition/approval to provident funds, superannuation funds, and gratuity funds under the Sixth Schedule; and exercise all the powers under the said Schedule;

    (f) Grand of approval to Non-Profit Organizations under Section 2(36).

    (g) Any other legal functions assigned by the Chief Commissioner Inland Revenue or the FBR for achieving the purposes of Income Tax Ordinance, 2001 and Rules made thereunder.

    Sales Tax:

    (a) Preparation, institution, follow up and defense of cases before Supreme Court, High Court, Appellate Tribunal;

    (b) Preparation, follow-up and defense of cases before Commissioner (Appeals) and Alternative Dispute Resolution Committee;

    (c) Matters relating to Federal Tax Ombudsman (FTO); and

    (d) Any other legal function assigned by the Chief Commissioner Inland Revenue or the FBR for achieving the purpose of Sales Tax Act, 1990 and rules made thereunder.

    Federal Excise:

    (a) Preparation, institution, follow up and defense of cases before Supreme Court, High Court, Appellate Tribunal;

    (b) Preparation, follow-up and defense of cases before Commissioner (Appeals) and Alternative Dispute Resolution Committee;

    (c) Matters relating to Federal Tax Ombudsman (FTO); and

    (d) Any other legal function assigned by the Chief Commissioner Inland Revenue or the FBR for achieving the purpose of FED Act 2005 and rules made thereunder.

  • Withholding tax rate on educational fee updated

    Withholding tax rate on educational fee updated

    ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rate on payment of educational fee for tax year 2021.

    The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) after incorporating amendment to Income Tax Ordinance, 2001 through Finance Act, 2020.

    Under Section 236I of Income Tax Ordinance, 2001, every person preparing fee voucher or challan shall collect/deduct withholding tax from the person depositing/paying fee at the time of payment of fee. The tax paid as withholding tax is adjustable against payable tax liability.

    Every Educational institution has to collect advance tax on the amount of fee (inclusive of tuition fee & all charges received by the educational institution, by whatever name called, excluding the amount which is refundable) exceeding Rs. 200,000 per annum ( other than an amount paid by way of scholarship) at the rate of five percent from the persons not appearing in the Active Taxpayers List (ATL).

    Through Finance Act, 2020 the persons filing income tax returns and are on the ATL are no more require to pay advance tax at the time of paying educational fee.

  • Withholding tax rates on sales made to retailers, wholesalers, distributors

    Withholding tax rates on sales made to retailers, wholesalers, distributors

    ISLAMABAD: Federal Board of Revenue (FBR) has issued withholding tax rates on sales made by manufacturers to retailers, wholesalers and distributors during tax year 2021.

    The FBR issued the withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment made to Income Tax Ordinance, 2001 made through Finance Act, 2020.

    Under section 236G of the Ordinance, every manufacture or commercial importer of electronics sugar, cement, iron and steel products, fertilizers, motorcycles, pesticides, cigarettes glass, textile, beverages, paint or foam sector shall collect/deduct withholding tax from distributor, wholesaler and dealer at the time of sale.

    Advance tax has to be collected from wholesaler, distributor and dealers at the time of sales made to them:

    In case of fertilizers the withholding tax rate shall be 0.7 percent of gross amount. The tax rate shall be increased by 100 percent in csae persons are not on the Active Taxpayers List (ATL).

    In case of other than fertilizers the tax rate shall be 0.1 percent of gross amount. The tax rate shall be 0.2 percent of gross amount if persons not on the ATL.

    The tax withheld under this section shall be adjustable.

    Under Section 236H of the Ordinance, every manufacture ,distributor, dealer, wholesaler or commercial importer of electronics, sugar, cement, iron & steel products, motorcycles, pesticides, Cigarettes glass, textile, beverages, paint or foam sector shall collect/deduct from every retailer at the time of sale.

    Advance tax has to be collected from retailers at the time of sales made to them:

    In case of electronics the withholding tax rate shall be 1 percent of the gross amount and the rate shall be 2 percent of gross amount if persons are not on the ATL.

    The withholding tax rate under this section for others shall be 0.5 percent of gross amount and the rate shall be 1 percent in case persons are not on the ATL.

    The tax collected/deducted under this section shall be adjustable.

    Under Section 236HA of the Ordinance, every person selling petroleum products shall collect/deduct withholding tax from every petrol pump operator or distributor, where such operator or distributor is not allowed a commission or discount at the time of sale of such products.

    Advance tax has to be collected on ex-depot sale price of such petroleum products at the rate of 0.5 percent of ex-depot sale price and the rate shall be 1 percent of ex-depot sale price.

    The withholding tax collected/deducted under this section shall be final.

  • Weekly Review: Market to materialize GIDC judgment

    Weekly Review: Market to materialize GIDC judgment

    KARACHI: The stock market likely to materialize decision of the apex court related to Gas Infrastructure Development Cess (GIDC) in coming week.

    Analysts at Arif Habib Limited said that although profit taking at the index was due, materialization of certain decisions recently (GIDC judgment and MOUs signed with IPPs) exacerbated the market performance.

    With that being said, Pakistan continues to fare better amongst regional and world markets on the COVID-19 front while positive economic developments such as augmenting remittances, growing FX reserves, stable currency, and revival in cyclical demand (Cement, Steel and Automobile) also paints a positive picture for the country.

    The benchmark KSE-100 index of Pakistan Stock Exchange is currently trading at a PER of 7.1x (2021) compared to Asia Pac regional average of 14.0x and while offering DY of ~6.3 percent versus ~2.7 percent offered by the region.

    Pressure was witnessed at the index this week, marking the end of a rally that spanned over 8 consecutive weeks.

    To recall, trading commenced on a negative note given possible curtailment of returns of Independent Power Producers (IPPs) by the incumbent government, under MOUs signed over the weekend.

    Whereas negative bearings from the GIDC judgment of the Supreme Court on industries (Fertilizer and Cement scrips in particular) from end of last week rolled over in the outgoing week.

    On the flip side, Oil Marketing Companies (OMCs) rallied on the back of expected clearance of the circular debt position. With that said, the equity bourse closed at 39,622 (down by 669 points / 1.7 percent WoW).

    Sector-wise positive contributions came from i) Oil & Gas Marketing Companies (39 points), ii) Pharmaceuticals (22 points), iii) Transport (9 points), iv) Paper & Board (5 points), and v) Vanaspati & Allied Industries (3 points). Whereas negative contributions came from Power Generation (218 points) and Fertilizer (165 points). Scrip-wise positive contributions were led by POL (33 points), FFC (32 points), SNGP (30 points), ABL (15 points), and SSGC (14 points).

    Foreign selling this week clocking-in at USD 4.0 million compared to a net buy of USD 8.7 million last week. Selling was witnessed in Banks (USD 3.2 million) and Cement (USD 2.9 million). On the domestic front, major buying was reported by Insurance Companies (USD 7.9 million and Individuals (USD 7.3 million). Average volumes settled at 441 million shares (down by a 24 percent WoW) while average value traded clocked-in at USD 107 million (down by 15 percent WoW).

  • Stock market sheds 247 points on heavy profit booking

    Stock market sheds 247 points on heavy profit booking

    KARACHI: The stock market witnessed heavy profit booking on Friday on reports of approval of privatization of two major energy companies.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,621 points as against 39,869 points showing a decline of 247 points (-0.6 percent DoD).

    Analysts at Arif Habib Limited said that the market took heavy bantering today on the pretext of profit booking as well as news of approval of privatization of OGDC and PPL.

    Both the E&P scrips saw significant selling pressure, besides Cement, O&GMCs, Pharma and Fertilizer sectors. Banking sector that bore selling pressure throughout the session saw recovery by the end, which helped KSE-100 index put recovery.

    Technology sector led the volumes with 74.5 million shares, followed by Cement (64.9 million) and Power (31.8 million). Among scrips, WTL posted 23.9 million shares, followed by ANL (21.7 million) and TPL (9.4 million).

    Sectors contributing to the performance include E&P (-89 points), Power (-45 points), Cement (-36 points), O&GMCs (-29 points) and Inv Banks (-13 points).

    Volumes increased from 394.6 million shares to 400.5 million shares (+2 percent DoD). Average traded value, however, registered a decline of 3 percent DoD to reach US$ 81.6 million as against US$ 84.5 million.

    Stocks that contributed significantly to the volumes include WTL, ANL, TPL, DCL and UNITY, which formed 25 percent of total volumes.

    Stocks that contributed positively to the index include NBP (+14 points), HBL (+12 points), ENGRO (+12 points), FCEPL (+10 points) and BAFL (+7 points). Stocks that contributed negatively include PPL (-52 points), OGDC (-40 points), HUBC (-37 points), PSO (-23 points) and DAWH (-14 points).

  • Rupee gains 9 paisas on inflows

    Rupee gains 9 paisas on inflows

    KARACHI: The Pak Rupee gained nine paisas against dollar on Friday owing to improved external inflows of the country.

    The rupee ended Rs168.29 to the dollar from previous day’s closing of Rs168.38 in interbank foreign exchange market.

    Currency experts said that the external inflows and improved foreign exchange reserves of the country helped the local currency to gain value.

    The liquid foreign exchange reserves of the country increased by $137 million to $19.655 billion by week ended August 13, 2020, State Bank of Pakistan (SBP) said.

    The foreign exchange reserves of the country were at $19.518 billion by week ended August 07, 2020.

    The foreign exchange reserves held by the central bank also increased by $139 million to $12.608 billion by week ended August 13, 2020 as compared with $12.469 billion a week ago.

    The SBP attributed the increase in reserves to proceeds of $249.4 million from Asian Infrastructure Investment Bank (AIIB). Meanwhile, during the week, SBP also made government external debt repayments of $151.0 million.

    The foreign exchange reserves held by commercial banks slightly down by $2 million to $7.047 billion by week ended August 13, 2020 as compared with $7.049 billion a week ago.

  • FBR asks exporters to resubmit claims for stuck-up refunds

    FBR asks exporters to resubmit claims for stuck-up refunds

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday offered exporters to resubmit their refund claims which were stuck up due to any reason.

    The FBR said that sales tax refund claims of exporters, which were stuck up at pre-processing stage in Fully Automated Sales Tax e-Refund (FASTER) system due to any reason including erroneous filing stand rolled back to provide an opportunity to exporters to review and resubmit their claims after removing shortcomings by September 20, 2020.

    All such refund claimants have also been informed electronically, the FBR added.

    Two days ago, the FBR issued instructions to all chief commissioners Inland Revenue regarding sales tax refunds.

    The FBR said that it had been observed that sales tax refund claims prior to July 2019 were pending for first processing as well as deferred processing, requiring over-ruling of objections raised by Risk Management System (RMS).

    In order to liquidate the pendency of deferred claims, the FBR has already issued circular No. 01/2020 dated August 04, 2020 for rule-based over-ruling objections. “The purpose of circular is to bring uniformity into the system, and to avoid discretion and delay in processing of refunds,” the FBR added.

    The FBR also informed the chief commissioners that processing of refunds should not be stopped on pretext that some case is pending against the claimant at any adjudication or appellate forum unless there is specific stay against processing of refunds. “In cases where the discrepancies pointed out by the department relating to refund claims are held twice in favor for the claimant, refunds be processed even if field office has preferred further appeal, unless specifically barred by the appellate forum or the board.”

    The FBR directed that field formations should ensure that pending refunds of claimants are processed in routine on the basis of Circular No. 01/2020.

  • Sindh EPA takes measures to control Industrial, vehicular emissions

    Sindh EPA takes measures to control Industrial, vehicular emissions

    KARACHI: Sindh Environmental Protection Agency (SEPA) has taken major steps to control industrial and vehicular emissions and retain 40 percent improvement in air quality.

    The air quality of Karachi city has improved by 40 percent after imposition of lockdown to contain spread of COVID-19.

    In this regard, SEPA issued directives to all industrial associations to conduct air quality monitoring in their industrial areas to check air quality degradation and plant saplings in huge number in and around their factories.

    Industries have been asked to submit their tree plantation plan within one week into the office of SEPA.

    Industries have also been directed to improve the conditions of their buses of shuttle service to control their air emissions and take practical measures to facilitate smooth plying of vehicles in and around their factories.

    Moreover, SEPA is also re-launching its vehicular emission control campaign throughout the city to fine/penalize smoke-emitting vehicles with the help of traffic police.

    In this regard an emergency meeting of all industrial associations of the city including Federal B Area, North Karachi, SITE, and Super Highway was held under the chairmanship of Director General SEPA Naeem Ahmed Mughal at the office of SITE Association.

    The meeting was attended by Sulaiman Chawla President SITE Association, Shaheen Ilyas President Super Highway, Nasim Akhtar President North Karachi Industrial Association, Noman Yaqoob President Landhi Association, Abdullah Abid F.B.Area Industrial Association, Sheikh Umer Rehan President Korangi Association of Trade and Industry, Naveed Shakoor President Bin Qasim Association besides prominent industrialists Zubair Motiwala, Salim Pareekh and Javed Balwani.

    Representatives from SEPA were Director Regional Office Karachi Aashiqui Langha, Deputy Directors Waris Gabol and Imran Sabir besides DG SEPA.

    Addressing the meeting, the DG SEPA Naeem Ahmed Mughal said that for the vigorous enforcement of environmental laws all necessary measures are being taken by the environmental watchdog on priority basis.

    He informed the participants of the meeting that SEPA had conducted a comparative study of air quality of Karachi prior to lock-down and during the lock-down; which revealed a 40 per cent improvement in air as a result of lock-down.

    He pointed out that deteriorating air environment is equally a matter of grave concern for all of us and its control is possible with the collective efforts of all stakeholders including industries and vehicle owners/transporters.

    He further said that to improve the air quality in the city all the industrial associations should start beautification campaigns at the major roundabouts in their areas along with plantation at the open spaces to improve the air quality parameters.

    DG SEPA further directed that all the industrial associations should conduct an air quality study in Karachi to analyze the present air quality with regard to its improvement.

    He also underscored the need of environment-friendly transport for commuting the industrial workers to help mitigate their air emissions.

    The DG SEPA specifically directed for the proper disposal of solid waste being generated by the industries which includes both hazardous and non-hazardous industrial waste.

    “Wastewater treatment plants should be installed as per the directives of Water Commission and in case of any negligence on this score, SEPA will take stern action’, he warned.

    He further said that the culprits who are responsible for the burning of solid waste in any area will be dealt with iron hand. SEPA simply needs cooperation of public in this regard to complain us as and when any such incident occurs in their area.

    At the end, he vowed to provide technical assistance to industries with regard to industrial pollution control.

    It may be recalled that according to data collected in April 2020 during the lock-down by SEPA from different locations of six districts of Karachi the average particulate matter 2.5 (PM 2.5) – the most lethal and stubborn air pollutant – was improved by 39 percent as compared to the same data taken from 76 locations of the city in February 2020 before the lock-down. Likewise, the noise level of the city was also improvement by 19 percent during the lock-down.

    The district-wise details of the data revealed that air quality of districts Central, East, South, West, Malir and Korangi was improved by 8, 61, 40, 37, 25 and 54 percent respectively while an improvement in the noise level of Central 42, East 20, South 15, West 17, Malir 2 and Korangi 26 percent occurred during the lock-down as compare to before lockdown.

  • SBP allows extension in foreign currency loan settlement

    SBP allows extension in foreign currency loan settlement

    KARACHI: State Bank of Pakistan (SBP) has allowed extension in settlement of foreign currency loans to facilitate exporters and importers in wake of coronavirus pandemic.

    In a statement issued on Thursday, the SBP said that continuing with its commitment to support the industry amid COVID-19 pandemic, the central bank further facilitated the exporters and importers by allowing extension up to 180 days in settlement of their export and import loans under FE-25 Scheme.

    Banks can now allow extension up to 180 days to exporters in settlement of their FE-25 loans in case they are facing delay in realization of export proceeds due to COVID-19.

    Moreover, banks can also allow settlement of FE-25 loans to exporters through substitute contract during the extended period of 180 days where the original export contract has been cancelled due to COVID-19.

    Likewise, SBP has also allowed the bank to extend the maturity of FE-25 import loans by 180 days.

    This facilitation has been provided to exporter and importers for their foreign currency loans maturing up to September 30, 2020.

    State Bank reiterates its unflinching resolve to continue working with all stakeholders to provide all needed facilitation in these uncertain times in the larger interest of people of Pakistan.

  • Foreign exchange reserves increase to $19.655 billion

    Foreign exchange reserves increase to $19.655 billion

    KARACHI: The liquid foreign exchange reserves of the country increased by $137 million to $19.655 billion by week ended August 13, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $19.518 billion by week ended August 07, 2020.

    The foreign exchange reserves held by the central bank also increased by $139 million to $12.608 billion by week ended August 13, 2020 as compared with $12.469 billion a week ago.

    The SBP attributed the increase in reserves to proceeds of $249.4 million from Asian Infrastructure Investment Bank (AIIB). Meanwhile, during the week, SBP also made government external debt repayments of $151.0 million.

    The foreign exchange reserves held by commercial banks slightly down by $2 million to $7.047 billion by week ended August 13, 2020 as compared with $7.049 billion a week ago.