Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Revenue collection registers 27pc growth in first month of 2020/2021

    Revenue collection registers 27pc growth in first month of 2020/2021

    ISLAMABAD: Federal Board of Revenue (FBR) has started the fiscal year 2020/2020 with 27 percent growth in revenue collection for July 2020.

    The FBR collected Rs300 billion in July 2020 as compared with Rs236 billion in the same month of the last year, according to provisional figures released by the FBR on Thursday.

    Another significance of the monthly collection, the FBR has surpassed the assigned target for the month of July 2020 by Rs57 billion.

    The revenue collection target for the month was set at Rs243 billion. However, with the improved economic activities after ease in lockdown the FBR managed to reach Rs300 billion mark, which is 125 percent of the target.

    The Inland Revenue overshot the target by Rs52 billion, whereas the Customs Wing exceeded the target by Rs5 billion.

    To redress the hardships of the business community caused by Covid-19, an unprecedented amount of refunds to the tune of Rs15 billion have been disbursed during July 2020, as compared to refunds of Rs.7 billion during July 2019.

    Sales Tax refunds are being issued under centralized and automated system called FASTER which is clearing refunds to exporters within 72 hours for the first time as committed by the Government in July, 2020.

    This has facilitated the exporters and the industry easing off their liquidity crunch.

    According to the official figure, total customs duty collected during July, 2020 is over Rs. 42 billion which is 6 percent higher than that collected in same period of July 2019. This is despite the fact that there is less than 1 percent growth in import values during this period.

    The higher growth in FBR revenues is primarily on account of better supervision and improved administrative controls despite economic conditions caused by Covid-19 during which the country mostly remained in lockdown state.

    The revenue trajectory also beat the adverse impact of governments’ import compression policy.

    FBR is also engaging with trade and industry to mitigate their genuine grievances.

    FBR is proactively reaching out to Trade and Industry and resolving their issues. FBR has also launched an unprecedented crackdown on corruption dismissing and suspending about a dozen officers and officials only during the month of July 2020.

  • FBR suspends 41 customs officials under disciplinary action

    FBR suspends 41 customs officials under disciplinary action

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday suspended 41 officials of Pakistan Customs Department for a period of three months with immediate effect.

    Following inspectors of BS-16 have been suspended:

    S.#Names & DesignationPresent Posting
    1Rehamtullah Khan, InspectorMCC, (E&C), Quetta
    2Shehzada Aamir, InspectorMCC, (E&C), Quetta
    3Mehmood -ul-Hassan, InspectorDirectorate of Transit Trade, Peshawar
    4Mir Zaman, SuperintendentMCC, (E&C), Peshawar
    5Amjad Maqbool Butt, InspectorDirectorate of Transit Trade, Peshawar
    6Irshad Akbar, InspectorDirectorate of Transit Trade, Peshawar
    7Azeem Khan Marwat, InspectorDirectorate of Transit Trade, Peshawar
    8Sagheer Baig, InspectorMCC, (A&F), Peshawar
    9Azhar Jalil, Appraising OfficerMCC, (A&F), Peshawar
    10Zia Ur Rehman, InspectorMCC, (A&F), Peshawar
    11Abdur Rahim, InspectorMCC, (A&F), Peshawar
    12Anika Malik, Appraising OfficerMCC, (A&F), Peshawar
    13Ms. Faiqa, Appraising OfficerMCC, (A&F), Peshawar
    14Saima Sweety, Appraising OfficerMCC, (A&F), Peshawar
    15Muhammad Arshad, InspectorMCC, (A&F), Peshawar
    16Muhammad Junaid, InspectorMCC, (A&F), Peshawar
    17Gulzar Muhammad, InspectorMCC, (A&F), Peshawar
    18Zafar Iqbal Joota, InspectorMCC, (E&C), Multan (posted at MCC, AIIA), Lahore.
    19Muhammad Ali Jamali, S/o Hazoor Bakhsh, InspectorMCC, Gwadar
    20Mashooq Ali, InspectorMCC, (JIAP), Karachi
    21Muhammad Ali Jamali, S/o Wahid Bakhsh, InspectorMCC, Gwadar
    22Saeed-uz-Rehman, InspectorMCC, Hyderabad
    23Manzoor Ahmed Khoso, Senior Preventive OfficerMCC, (E&C), Karachi
    24Saddam Hussain Bhalkani, Preventive OfficerMCC, (E&C), Karachi

    The following officials of Customs Department are placed under suspension under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules, 1973, for a period of three months with immediate effect:-

    S.#Name and DesignationPresent Posting
    1Haji Abdullah Achakzai, SepoyMCC, (E&C), Quetta
    2Abdul Ghani, SepoyMCC, (E&C), Quetta
    3Kala Khan, HavaldarMCC, (E&C), Quetta
    4Muhammad Javaid, S/o Ali Bahadur, SepoyMCC, (E&C), Quetta
    5Abdul Sattar Bangulzai, SepoyMCC, (E&C), Quetta
    6Abdul Kabeer, SepoyMCC, (E&C), Quetta
    7Muhammad Sarwar, SepoyMCC, (E&C), Quetta
    8Lehna Khan, SepoyMCC, Gwadar
    9Saeed Ahmed Mirwani, SepoyMCC, Gwadar
    10Ravi Lal, LDCDirectorate of Transit Trade, Peshawar
    11Manzoor Hussain, LDCDirectorate of Transit Trade, Peshawar
    12Rana Muhammad Ashraf, HavaldarMCC, (E&C), Multan
    13Muhammad Asad, SepoyMCC, (E&C), Multan
    14Muhammad Yousaf, SepoyMCC, (E&C), Multan
    15Sajjad Ali Memon, SepoyMCC, Hyderabad
    16Hamzo Khan, SepoyMCC, Hyderabad
    17Ghulam Shabir Ahmed Bhutto, SepoyMCC, Hyderabad
  • FBR transfers IRS officers of BS-16-20

    FBR transfers IRS officers of BS-16-20

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified transfers and postings of BS-16 to BS-20 officers of Inland Revenue Service (IRS) with immediate effect and until further orders.

    The FBR notified transfers and postings of following officers:

    01. Mohammed Nasser Janjua (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (IR-Analysis) (IR-Operations Wing) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner-IR, (HRM) Regional Tax Office III, Karachi.

    02. Muhammad Abid (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (IR-Formations) (IR-Operations Wing) Federal Board of Revenue (Hq), Islamabad from the post of Chief, Federal Board of Revenue (Hq), Islamabad.

    03. Ms. Yasmeen Fatima (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (TPA) Federal Board of Revenue (Hq), Islamabad from the post Chief, (Inland Revenue Operations) Federal Board of Revenue (Hq), Islamabad.

    04. Abdul Hafeez Nizamani (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office, Hyderabad from the post of Commissioner-IR, (zone-II) Regional Tax Office, Sukkur.

    05. Ijlal Ahmed Khattak (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Revenue & Operations) (IR-Opertaions Wing) Federal Board of Revenue (Hq), Islamabad from the post of Director, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad.

    06. Tariq Hussain Sheikh (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Regional Tax Office, Sukkur from the post of Chief, (Reforms & Implementation) Federal Board of Revenue (Hq), Islamabad.

    07. Ms. Rezwana Siddiqui (IT Cadre/BS-19) has been transferred and posted as Chief, (OPS) (IT) Federal Board of Revenue (Hq), Islamabad from the post of Chief, (OPS) (IR-Analysis) Federal Board of Revenue (Hq), Islamabad.

    08. Ms. Uzma Munir (Inland Revenue Service/BS-19) has been transferred and posted as SA to Member (IR-Operations), FBR (HQ), Islamabad from the post of Secretary, (Taxpayers Audit) Federal Board of Revenue (Hq), Islamabad.

    09. Naveed Ali Narejo (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (IR-Jurisdiction) Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner-IR, Corporate Regional Tax Office, Karachi.

    10. Sultan Muhammad Nawaz Nasir (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Peshawar from the post of Secretary, (Revenue & Budget) Federal Board of Revenue (Hq), Islamabad.

    11. Ms. Amra Sarwar (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (Taxpayers Audit) Federal Board of Revenue (Hq), Islamabad from the post of SA TO Member (IR-Operations), Federal Board of Revenue (Hq), Islamabad.

    12. Asad Aziz (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (Revenue & Budget) Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner-IR, Regional Tax Office, Sargodha.

    13. Zubair Khan (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (S.T) (IR-Operations Wing) Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner-IR, Large Taxpayers Unit, Lahore.

    14. Malik Akhlaq Ahmad (AOST/BS-18) has been transferred and posted as Second Secretary, (IR-Operations) Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit), Regional Tax Office, Rawalpindi.

    15. Rehan Khalid (AOST/BS-18) has been transferred and posted as Assistant Director (Audit), Regional Tax Office, Rawalpindi from the post of Second Secretary, (IR Operations) Federal Board of Revenue (Hq), Islamabad.

    16. Hammad Hussain Jaffari (Inland Revenue Service/BS-17) has been transferred and posted as Second Secretary, (TPU) (IR-Operations Wing) Federal Board of Revenue (Hq), Islamabad from the post of Deputy Commissioner-IR, Regional Tax Office, Faisalabad.

    17. Arafat Faiz Rasool (Sales Tax Department/BS-16) has been transferred and posted as Second Secretary, (IR-Operations) Federal Board of Revenue (Hq), Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.

    18. Bilal Afzal (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Regional Tax Office, Islamabad from the post of Senior Auditor, (IR-Operations Wing) Federal Board of Revenue (Hq), Islamabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR reshuffles BS-19-20 customs officers

    FBR reshuffles BS-19-20 customs officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday announced major reshuffle and notified transfers and postings of senior Customs officers of BS-19 and BS-20 with immediate effect and until further orders.

    The FBR notified transfers and posting of following officers of Pakistan Customs Service (PCS):

    01. Muhammad Asghar Khan (Pakistan Customs Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi from the post of Director, Directorate General of Intelligence & Investigation, FBR, Islamabad.

    02. Dr. Akhtar Hussain (Pakistan Customs Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation, FBR, Peshawar from the post of Collector, Collectorate of Customs (Adjudication), Faisalabad.

    03. Fayyaz Anwar (Pakistan Customs Service/BS-20) who is currently posted as Director, Directorate of Internal Audit-North (Customs), Islamabad, has been directed to look after the charge of Director, Directorate of Post Clearance Audit(Central), Lahore.

    4 Ms. Zeba Azhar (Pakistan Customs Service/BS-20) has been transferred and posted as Director, Directorate of Reforms and Automation (Customs), Karachi from the post of Director, Directorate General of Transit Trade, Karachi.

    05. Khalid Hussain Jamali (Pakistan Customs Service/BS-20) has been transferred and posted as Collector, Collectorate of Customs (Adjudication), Quetta  from the post of Collector, Model Customs Collectorate, Hyderabad.

    06. Feroze Alam Junejo (Pakistan Customs Service/BS-20) has been transferred and posted as Director, Directorate General of Transit Trade, Karachi from the post of Director, Directorate of Input Output Coefficient Organization (South), Karachi.

    07. Zahid Ali Baig (Pakistan Customs Service/BS-20) has been transferred and posted as Chief, Federal Board of Revenue (Hq), Islamabad from the post of Director, Directorate of Intelligence & Investigation,FBR, Rawalpindi.

    08. Rashid Habib Khan (Pakistan Customs Service/BS-20) has been transferred and posted as Collector, Model Customs Collectorate, Gilgit-Baltistan from the post of Director, Directorate of Intelligence & Investigation, FBR, Peshawar.

    09. Sami-ul-Haq (Pakistan Customs Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation, FBR, Quetta from the post of Director, Directorate of Reforms and Automation (Customs), Karachi.

    10. Asif Abbas (Pakistan Customs Service/BS-20) who is currently posted as Collector, Collectorate of Customs (Adjudication), Lahore has been directed to look after the charge of Collector, Collectorate of Customs (Adjudication), Faisalabad.

    11. Usman Bajwa (Pakistan Customs Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation, FBR, Multan from the post of Director, Directorate of Post Clearance Audit (Central), Lahore.

    12. Amer Rashid Sheikh (Pakistan Customs Service/BS-20) has been transferred and posted as Collector, Model Customs Collectorate, Hyderabad from the post of Director, Directorate of IPR Enforcement (South), Karachi.

    13. Muhammad Akram Ch. (Pakistan Customs Service/BS-19) has been transferred and posted as Chief, (OPS) Federal Board of Revenue (Hq), Islamabad from the post of Director, (OPS) Directorate of Intelligence & Investigation, FBR, Quetta.

    14. Syed Faisal Saeed Bokhari (Pakistan Customs Service/BS-19) has been transferred and posted as Chief, (OPS) Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Directorate of Intelligence & Investigation, FBR, Peshawar.

    15. Sanaullah Abro (Pakistan Customs Service/BS-19) has been transferred and posted as Director (OPS), Directorate General of Risk Management, Karachi from the post of Additional Collector, Model Customs Collectorate, Islamabad.

    16. Syed Naeem Akhtar (Pakistan Customs Service/BS-19) has been transferred and posted as Director, (OPS) Directorate of Internal Audit-South (customs), Karachi from the post of Additional Director, Directorate of Intelligence & Investigation, FBR, Hyderabad.

    17. Muhammad Tahir (Pakistan Customs Service/BS-19) has been transferred and posted as Director, (OPS) Directorate General of Intelligence & Investigation, FBR, Islamabad from the post of Secretary, Federal Board of

    Revenue (Hq), Islamabad.

    18. Ms. Nyma Batool (Pakistan Customs Service/BS-19) has been transferred and posted as Director (OPS), Directorate of IPR Enforcement (South), Karachi from the post of Additional Collector, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi.

    19. Muhammad Saleem Memon (Pakistan Customs Service/BS-19) has been transferred and posted as Director (OPS), Directorate of IOCO (South), Karachi from the post of Additional Collector, Model Customs Collectorate, Hyderabad.

    20. Muhammad Amir Thahim (Pakistan Customs Service/BS-19) has been transferred and posted as Director, (OPS) Directorate of Transit Trade, Quetta from the post of Additional Collector, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi.

    21. Yousaf Haider Orakzai (Pakistan Customs Service/BS-19) has been transferred and posted as Director (OPS), Directorate of CBCM/FATF Cell, DG I&I-FBR, Islamabad from the post of Additional Collector, Collectorate of Customs (Adjudication), Islamabad (stationed at Peshawar). He will also look after the charge of Director (OPS), Directorate of Law and Prosecution, DG I&I-FBR, Islamabad.

    22. Munib Sarwar (Pakistan Customs Service/BS-19) has been transferred and posted as Director (OPS), Directorate of IPR Enforcement (Central), Lahore from the post of Additional Director, Directorate of Customs Valuation, Lahore.

    23. Muhammad Ismail (Pakistan Customs Service/BS-19) has been transferred and posted as Director, (OPS) Directorate of Intelligence & Investigation, FBR, Gwadar from the post of Additional Director, Directorate of Transit Trade, Quetta.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • PTA lifts ban on PUBG

    PTA lifts ban on PUBG

    ISLAMABAD: Pakistan Telecommunication Authority (PTA) on Thursday lifted ban on PUBG game after a meeting with representative of the company.

    The PTA in a statement said that a meeting was held between PTA and legal representatives of Proxima Beta Pte Ltd (PB).

    The PB representatives briefed the authority on response to queries raised by the PTA with respect to controls put in place by PB to prevent misuse of the gaming platform.

    The authority expressed its satisfaction on measures adopted by the PB so far, and emphasized on continued engagement and a comprehensive control mechanism.

    The representative of the company welcomed PTA’s feedback on the issue and assured that the concerns of the PTA would be taken into account. In addition, the company requested PTA to unban PUBG.

    “Keeping in view the positive engagement and response of the company, the authority has decided to unban PUBG,” according to the statement.

    On July 27, 2020 the PTA issued a detailed order regarding blocking of online game PUBG. The order was issued in accordance with Islamabad High Court’s order after a hearing conducted by PTA on July 9 and in accordance with the provisions of PECA 2016.

    The PTA in the statement said that it had provided an opportunity of hearing to concerned parties including PUBG’s lawyers. As per the order of the authority, the PUBG game shall remained blocked in Pakistan.

    The PTA had also approached PUBG management to inform about a suitable framework to address key concerns. No response was received from PUBG.

    Related News

    PTA suspends PUBG

  • FBR offices to observe normal office timings after Eid holidays

    FBR offices to observe normal office timings after Eid holidays

    KARACHI: The offices of Inland Revenue and Pakistan Customs shall observe normal working hours (9:00am to 5:00pm) after the Eid holidays, a notification said on Thursday.

    The FBR directed all field formations that all offices of the federal government will revert to normal office timings i.e. 9:00 am to 5:00pm immediately after Eid holidays i.e. from August 03, 2020.

    The federal government reduced the office timings due to coronavirus pandemic. However, the pace of coronavirus has been slow down significantly.

  • Country foreign exchange reserves eases to $18.912 billion

    Country foreign exchange reserves eases to $18.912 billion

    KARACHI: The liquid foreign exchange reserves of the country eased by $135 million to $18.912 billion by week ended July 23, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $19.047 billion by week ended July 17, 2020.

    The foreign exchange reserves held by the central bank also fell by $146 million to $11.975 billion by week ended July 23, 2020 as compared with $12.122 billion a week ago.

    The SBP attributed the decline in reserves to government payment for external sector.

    The reserves held by commercial banks witnessed meager increase of $12 million to $6.937 billion by week ended July 23 as against $6.925 billion a week ago.

  • Stock market gains 422 points ahead Eid holidays

    Stock market gains 422 points ahead Eid holidays

    KARACHI: The stock market gained 422 points on Thursday on the last trading day ahead of Eid holidays.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,258 points as against 38,836 points showing an increase of 422 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today with +97 points, also being the last trading day before the long weekend.

    Power, Banks, Cement, Pharma, OMCs and Refinery helped the index post a total gain of 434 points and closing the session near session high.

    Privatization Commission’s deliberation on OGDC and PPL brought both the stocks down, however, despite price drop and high volumes the index didn’t bear any reflection.

    Technology sector topped the volumes with 57.7 million shares, followed by Cement (47.5 million) and Transport (43.8 million). Among scrips, PIBTL led the volumes with 43.3 million shares, followed by TRG (27.9 million) and PAEL (18 million).

    Sectors contributing to the performance include Cement (+75 points), Banks (+70 points), Fertilizer (+54 points), Pharma (+51 points) and Autos (+45 points).

    Volumes declined from 508.3 million shares to 368.1 million shares (-28 percent DoD). Average traded value also declined by 19 percent to reach US$ 102.2 million as against US$ 126.2 million.

    Stocks that contributed significantly to the volumes include PIBTL, TRG, PAEL, MLCF and WTL, which formed 33 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+37 points), SEARL (+35 points), HUBC (+30 points), TRG (+28 points) and ENGRO (+25 points). Stocks that contributed negatively include PPL (-22 points), OGDC (-11 points), NATF (-4 points), BAFL (-4 points), and AICL (-4 points).

  • Pakistan’s GDP growth contraction not severe as expected globally: SBP

    Pakistan’s GDP growth contraction not severe as expected globally: SBP

    KARACHI: The scale of the COVID-19 shock is underscored by the fact that for the first time in 68 years, as per the provisional estimates, Pakistan’s real GDP growth is set to contract in FY20.

    “At 0.4 percent, this contraction is not as severe as that expected in most parts of the world due to COVID-19,” State Bank of Pakistan (SBP) said in its third quarterly report on the country’s economy issued on Thursday.

    According to the report, successful stabilization measures that had fostered macroeconomic improvement in Jul-Feb FY20 provided a valuable cushion against the downturn faced from late March 2020 onward in the wake of the COVID-19 outbreak.

    In particular, major progress had been made during Jul-Feb FY20 period in curbing the fiscal and current account deficits on the back of strong revenue growth, policy shift to a market-determined exchange rate, and build up in foreign exchange reserves buffers. Following this period of necessary stabilization, there were also encouraging signs of recovery in the real economy, including exports.

    This made the economy relatively better equipped to respond to any external shocks than it would have otherwise been. This pre COVID-19 strengthening of Pakistan’s fundamentals and the prudent policy response to the outbreak later on should leave Pakistan well-placed to resume its earlier trajectory of recovery once the pandemic subsides.

    As in other parts of the world, the real, fiscal, and external sectors came under visible strain thereafter as COVID-19 struck the global economy, while the inflation outlook improved as a result of weaker domestic demand and lower oil prices.

    The report emphasizes that the estimated contraction in GDP owes mainly to a decline in industrial and services sector activities.

    The large-scale manufacturing (LSM) posted an improvement during Jan-Feb 2020, driven primarily by exporting sectors with some contribution from food and fertilizer segments.

    However, this nascent recovery was derailed by COVID-19 related disruptions, with LSM growth falling 22 percent on a month-on-month basis in March.

    The agriculture sector emerged largely unscathed by COVID-19 as important crops registered a turnaround compared to last year. That said, unfavorable climate conditions and pest and locust attacks prevented some annual targets from being met.

    The services sector felt the impact of COVID-19 acutely, as evident from high frequency data and negative sectoral growth is expected in FY20.

    The report documents a similar pattern in the fiscal sector, where a primary budget recorded a surplus during Jul-Mar FY20 on cumulative basis, the first ever since 2016.

    However, it turned into a deficit during the third quarter due to COVID-19. On the one hand, the lockdown created a drag for revenue, with growth in all categories of FBR revenues turning negative in March 2020.

    On the other hand, the induced slump in economic activity and rise in unemployment created a need for greater expenditures. The government announced aRs 1.24 trillion stimulus package towards the close of Q3-FY20, consisting of a combination of targeted handouts and sector-specific outlays for agriculture, construction, and exports. While this package is expected to give much-needed relief to individuals and businesses, it would simultaneously contribute to a larger fiscal deficit in the near term.

    Regarding the external sector, the report highlights that a sharp fall in imports, healthy growth in workers’ remittances, and contraction in the services trade deficit all played a part in narrowing the current account deficit (CAD) for Jul-Mar FY20 compared to last year.

    However, the pandemic prompted foreign investors to reduce their domestic debt and equity holdings in emerging markets, including Pakistan, and growth in remittances has moderated.

    These factors together with government debt repayments affected foreign exchange reserves in March 2020. However, Pakistan has generally been less affected than many other emerging markets and foreign exchange reserves of the country have since recovered, on the back of multilateral and commercial inflows.

    The SBP report notes that the inflation outlook improved following the global and domestic spread of COVID-19.

    A marked slowdown in domestic demand, stabilizing food inflation, and historic low oil prices led to a moderation in medium-term inflation prospects.

    The Monetary Policy Committee responded swiftly, slashing the policy rate by a cumulative 625 basis points in five meetings between mid-March to end-June 2020.

    To manage the cash flows of businesses and households, SBP allowed the deferment of principal amount and restructuring of loans. In addition, SBP launched three new refinancing schemes to support employment, new investments and BMR, and improve health facilities in the country. Together, these measures are estimated to provide a benefit of up to Rs.1.3 trillion (3.1 percent of GDP) to businesses and households.

    Together with the government’s stimulus package, these measures are helping to cushion the impact of the COVID-19 outbreak. Beyond their immediate impact, these measures are expected to support the post-COVID-19 economic recovery as well.

  • Rupee weakens by 20 paisas ahead of Eid holidays

    Rupee weakens by 20 paisas ahead of Eid holidays

    KARACHI: The Pak Rupee weakened by 20 paisas against dollar on Thursday ahead of higher demand for the foreign currency ahead of Eid holidays.

    The rupee ended Rs166.98 to the dollar from previous day’s closing of Rs166.78 in interbank foreign exchange market.

    Currency experts said that the rupee weakened owing to demand for the greenback for the payments of import and corporate during Eid holidays.

    The government has announced holidays for Eid-ul-Adha from July 31, 2020 to August 02, 2020,

    Currency experts said that positive indicators regarding external financing may help the rupee to recover the values.

    The State Bank of Pakistan (SBP) on this week received $505.5 million from the World Bank.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.