Author: Faisal Shahnawaz

  • SBP to announce monetary policy on March 29; experts expect 75bps increase

    SBP to announce monetary policy on March 29; experts expect 75bps increase

    KARACHI: State Bank of Pakistan (SBP) will announce Monetary Policy for the next two months on Friday, March 29, 2019, a statement said on Wednesday.

    In the last monetary policy announcement, the central bank increased the policy rate by 25 basis points to 10.25 percent effective from February 01, 2019.

    The monetary policy committee (MPC) decided to increase the rate on the basis of: (i) the fiscal deficit is yet to show signs of consolidation despite a reduction in PSDP spending; (ii) although a gradual improvement in current account deficit is visible, it remains high; (iii) a marked shift in the pattern of government borrowing from scheduled banks to SBP entails inflationary concerns; and (iv) even as stabilization measures gradually work through the economy, underlying inflationary pressures persist.

    Analysts at Arif Habib Limited said that the SBP to increase policy rate by 75 basis points to 11.00 percent (Discount rate 11.50 percent) in the upcoming monetary policy statement.

    This might be the last rate hike before Pakistan enters the International Monetary Fund (IMF) program whereas inflation will remain moderate after making its peak in the ongoing month.

    The monetary tightening is expected on the back of i) rising inflationary pressure due to recovery in prices of petroleum products and essential food items, ii) mounting Fiscal deficit despite sharp cut in PSDP and rationalization of tariffs and duties, and iii) narrowing real interest rate as it declined to 1.6 percent compared to last four year average of 2.85 percent.

  • Income Tax Ordinance 2001: total exemption on payment of pension, retirement

    Income Tax Ordinance 2001: total exemption on payment of pension, retirement

    KARACHI: Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement is exempted from income tax.

    The Second Schedule of Income Tax Ordinance, 2001 explained the exemption from total income.

    Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement or, in the event of his death, by his heirs as does not exceed –

    (i) in the case of an employee of the Government, a Local Government, a statutory body or corporation established by any law for the time being in force, the amount receivable in accordance with the rules and conditions of the employee’s services;

    (ii) any amount receivable from any gratuity fund approved by the Commissioner in accordance with the rules in Part III of the Sixth Schedule;

    (iii) in the case of any other employee, the amount not exceeding three hundred thousand rupees receivable under any scheme applicable to all employees of the employer and approved by the Board for the purposes of this sub-clause; and

    (iv) in the case of any employee to whom sub-clause (i), (ii) and (iii) do not apply, fifty per cent of the amount receivable or seventy-five thousand rupees, whichever is the less:

    Provided that nothing in this sub-clause shall apply –

    (a) to any payment which is not received in Pakistan;

    (b) to any payment received from a company by a director of such company who is not a regular employee of such company;

    (c) to any payment received by an employee who is not a resident individual; and to any gratuity received by an employee who has already received any gratuity from the same or any other employer.

  • FIA summons fashion designers in PIA premier service case

    FIA summons fashion designers in PIA premier service case

    KARACHI: Federal Investigation Agency (FIA) has summoned leading fashion designers in inquiry related to losses to PIA in Premier Service Operations.

    The FIA summoned the fashion designers in connection that PIA had acquired their services for design of ‘PIA Premier Service Uniform’ for its cabin crew.

    The agency said the designers were acquainted with the facts of the enquiry. Therefore, the designers have been asked to record their statements on April 03 and 04.

    The designers are included Noman Ansari, Yasmin Sheikh, Saniya Maskatiya and Pinto Kazmi.

    Sources said that the PIA acquired services of these designers in 2015. The PIA organized a fashion show abroad for the uniforms designed by such designers.

    The sources said that the PIA issued large number for free tickets to members of a local television channel.

  • FPCCI to draft proposals for new tax amnesty scheme

    FPCCI to draft proposals for new tax amnesty scheme

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has decided to finalize draft proposals for new tax amnesty scheme.

    FPCCI President Engr. Daroo Khan Achakzai called a meeting of stakeholders on Tuesday to discuss the proposals for New Tax Amnesty Scheme 2019 at Federation House, Karachi, Regional office Lahore and Capital Office Islamabad via video link.

    The meeting decided that a committee will be formed consisting of experts which will be headed by President FPCCI for the finalization of draft of new amnesty scheme.

    The meeting was attended by S. M. Muneer, former President FPCCI, Iftikhar Ali Malik, Sr. Vice President SAARC-CCI & Former President FPCCI, Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI, all Vice Presidents of FPCCI and the representatives of different chambers and associations.

    While welcoming the participants of meeting, Engr. Daroo Khan Achakzai informed the house about the outcomes of last amnesty schemes and focused on the need of new amnesty scheme for the documentation of economy and enhancement of tax revenue.

    He also highlighted his discussion with the Prime Minister of Pakistan who showed his desire to launch another amnesty scheme and advised President FPCCI to formulate recommendations in consultation with stakeholders with the aim to document the economy by declaring of foreign and domestic assets.

    In his remarks, Iftikhar Ali Malik emphasized to create awareness about converting the black money into white money, to increase the confidence of tax payer, incentives for the SMEs, exports warehouses, agriculture sector, removal of piracy, mis-declaration and smuggling.

    S. M. Muneer underlined the need of revival of last amnesty scheme with some necessary amendments announced in April 2018 for three months.

    Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI also stressed on the same tax rates of last amnesty scheme 2018 and continuation of Foreign Exchange Reforms Act which allowed opening of account, transactions and remittance facility in foreign currency.

    During the meeting, the stakeholders suggested that the new scheme should be based on same rules, regulation and tax rates 2 percent, 3 percent and 5 percent announced in last amnesty scheme in 2018.

    The stakeholders also stressed on the strict monitoring of tax collection system, measures of discretionary power to conduct audit of tax filers, removal of harassment and ease of documentation.

    They argued that the tax collection system in Pakistan is very complicated which needs to be reviewed as per global requirement.

    Moreover, the tax amnesty scheme should also boost industrialization and create new investment in other than real estate sector of economy and improve cost/ease of doing business.

    The house also advocated imposing of taxes on agriculture and other sectors which are currently not under tax net instead of putting extra burden on minuscule number of existing tax payers.

    They also suggested to announce incentives for filer/ taxpayers and should announce clean chit if taxpayers pay 2 percent or 5 percent additional tax and this scheme should be for three to five years.

  • FBR freezes 4,000 bank accounts for arrears recovery

    FBR freezes 4,000 bank accounts for arrears recovery

    KARACHI: Federal Board of Revenue (FBR) has frozen around 4,000 bank accounts of tax defaulters in a major crackdown, according to media reports on Tuesday.

    These bank accounts have been attached during last three months to recover outstanding amount from tax defaulters.

    In the major action against tax defaulters the FBR recovered around Rs8.2 billion through various means provided under income tax laws.

    Besides freezing bank accounts, the FBR also attached 78 immovable properties and 46 vehicles for the recovery.

    Further, about nine people were arrested in this recovery drive. The arrests have been made each in Faisalabad and Peshawar. Further, warrants for arrest in two cases have been issued.

  • Asad Umar meets IMF mission chief

    Asad Umar meets IMF mission chief

    ISLAMABAD: Finance Minister of Pakistan Asad Umar met the IMF Mission Chief Ernesto Ramirez Rigo in Islamabad, on Tuesday.

    The minister and the Mission Chief discussed all issues including fiscal, monetary, structural reforms and energy sector, a statement said.

    Asad Umar briefed Ramirez Rigo about the steps taken by the government for improving the economy of the country.

    The minister informed that the structural reforms and other economic initiatives introduced by the government were yielding desired results.

    The minister said that the government would continue to address the macroeconomic imbalances and would take necessary corrective measures in this regard.

  • Govt. decides to end open sky policy: Fawad

    Govt. decides to end open sky policy: Fawad

    ISLAMABAD: The government has decided to end the open sky policy in order to prevent losses to national flag carrier i.e. Pakistan International Airlines (PIA).

    Federal Minster for Information and Broadcasting Chaudhry Fawad Hussain at a press conference after the federal cabinet meeting on Tuesday said that the government had decided to end the country’s open sky policy which proved to be disastrous for PIA.

    Most of the profitable routes were given to international airlines which led to huge loss for PIA, he said.

    All agreements with international airlines would be reviewed, he added.

    He said that the cabinet approved civil aviation policy to pro-actively promote tourism and give boost to aviation industry in the country.

    The decisions made in the cabinet meeting, chaired by Prime Minister Imran Khan.

    He said traveling to the tourist resorts of Pakistan will be facilitated by reducing travel expenditures.

    Fawad said facilities, including reduction in traveling expenses and cuts in taxes, worth Rs3.8 billion would be offered to promote tourism and aviation sector.

    He said the cabinet also discussed to start helicopter and 40-seat plane service to the tourist sites in the country including Gilgit-Baltistan and Swat.

    The purpose for this initiative, was to provide benefits to local aviation industry,” he said, adding that it was necessary to improve travel facilities to the country’s tourist locations to attract elite tourism.

    The minister announced that passenger airlines in Pakistan will be allowed to import aeroplanes which are 18-years-old compared to the previous limit of 12 years while cargo planes up to 30 years old, could be imported.

    New recommendations with regards to aviation also included charges on flight kitchens being abolished, and a recommendation to reduce taxes on domestic routes, he added.

    The minister also announced a special initiative by CAA of paying up to Rs 400,000 in fees for women to attract them for becoming pilots.

  • PTCL signs agreement for clean, green Pakistan

    PTCL signs agreement for clean, green Pakistan

    ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) and Ministry of Climate Change (MoCC) have signed an agreement to support the Clean Green Pakistan Movement.

    This collaboration will enable to tackle issues of low forest cover and poor cleanliness in urban & rural areas of Pakistan, said a statement on Tuesday.

    Under this MoU, PTCL and MoCC agreed upon afforestation of 200,000 trees across PTCL sites in the next five years.

    The MoU was signed by Syed Mazhar Hussain, Chief Human Resource Officer, PTCL and Babar Hayat Tarar, Additional Secretary, Ministry of Climate Change, followed by plantation of saplings at PTCL HQ.

    Furthermore, PTCL will initiate cleanliness drives in Karachi, Lahore and Islamabad to assist the solid waste management.

    In the initial phase, the company pledges to ban non-recyclable plastics in PTCL HQ in Islamabad.

    The company shall also arrange clean drinking water for its employees in connection with its resolve to implement health care and better environment to the workforce.

    Moreover, PTCL will also install filtration units to provide clean drinking water for the general public.

    On the occasion, Ms. Zartaj Gul Wazir, State Minister for Climate Change, said, “We are glad to collaborate with PTCL on Clean Green Pakistan Movement, which is to create awareness across the country regarding the importance of environmental preservation. PTCL has initiated a comprehensive awareness campaign on converting customers from paper bill to eBilling, which is a step in the right direction. As a nation, we need to come together to tackle issues like pollution and low forest cover. Under the Prime Minister Imran Khan’s vision of clean and green Pakistan, partnerships like this are going to pave the way in achieving our objective.”

    On the occasion, Rashid Khan, President and CEO, PTCL, said, “As a national company, it is our responsibility to support Clean Green Pakistan Movement. We are happy to collaborate with Ministry of Climate Change to create awareness and conduct trainings on environmental preservation. To promote this initiative, our teams across Pakistan will be executing afforestation campaigns.”

    In the past, PTCL has partnered with WWF for plantation of200,000 mangrove seeds in Balochistan, as part of the conservation organizations nationwide tree plantation campaign, called ‘Rung Do’. PTCL HQ is also Green Office certified by WWF.

    Recently, the company has also taken steps to ensure that numerous avenues are open for customers to opt for eBilling like PTCL website, Touch App and helpline 1218, to go paperless and save trees.

    PTCL is constantly contributing towards saving the environment and a greener Pakistan.

  • FBR notifies promotion of IRS officers to BS-22

    FBR notifies promotion of IRS officers to BS-22

    ISLAMABAD – In a significant development, the Federal Board of Revenue (FBR) announced the promotions of two distinguished officers from the Inland Revenue Service (IRS) to the coveted BS-22 rank.

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  • Eatery owners knowingly ignore hygiene requirements: Sindh Food Authority

    Eatery owners knowingly ignore hygiene requirements: Sindh Food Authority

    KARACHI: Eatery owners are well aware about their shortcomings yet they ignore hygiene requirements and compromise with public health, Abrar Ahmed Sheikh, Director Operations, Sindh Food Authority (SFA) said on Tuesday.

    Talking at Karachi Chamber of Commerce and Industry (KCCI), the director urged the owners of all eateries, restaurants, bakeries and other food-related businesses to improve the hygienic conditions in their business premises and provide safe & healthy food to the public otherwise strict action will continue to take place and no compromise will be made over the quality and hygienic conditions.

    Abrar Sheikh said: “It is impossible that the eatery owners are not aware of the shortcomings. They know what exactly is going wrong and they simply cannot deny it yet they ignore it, do not take remedial measures and continue to play with lives of the masses by providing unhygienic and hazardous food which cannot be tolerated.”

    President KCCI Junaid Esmail Makda, Senior Vice President Khurram Shahzad, Vice President Asif Sheikh Javaid, Former President AQ Khalil, Former Vice President Agha Shahab Ahmed Khan, Chairman All Pakistan Restaurants Association Shaukat Ali Omerson, Managing Committee members and a large number of businessmen associated with food-related businesses also attended the meeting.

    Director Operations SFA further stated that SFA works under a transparent mechanism in which the working parameters for food technologists and food safety officers have been defined in such a manner that leave absolutely no room for any kind of under the table deal therefore, all businessmen associated with food businesses should stop thinking about bribing the officers and must rectify their shortcomings, improve the hygienic conditions and provide healthy food to the masses otherwise they will be taken to task by the Authority.

    He explained that SFA never seals any business premises immediately after identifying hygiene and food quality related shortcomings as the authority initially issues an improvement notice and also raises awareness about the hygiene and food quality requirements, which is followed by a warning notice and penalty if the eatery owners fail to improve.

    Subsequently, if the eatery owners continue to avoid taking corrective steps even after the imposition of penalty and warning notice, it leaves no other option for SFA but to seal the business premises under Section 45 of CrPC that results in temporary suspension of commercial activities until all the SFA requirements are complied.

    Referring to President KCCI’s remarks, Director SFA said, “We also want to promote the ease of doing business but no compromise will made over the food quality and hygienic conditions. It is high time to change which has become inevitable now.

    “We firmly believe in consultation rather than taking decisions in isolation, which is the basic reason why SFA carries out awareness drives prior to issuing any warning notice or imposing penalty.”

    He further informed that work was in progress at SFA for setting up a world-class state-of-the-art laboratory where the facility to carry out all forms of tests and verifications will be available which will be acceptable globally.

    Vegetables being cultivated by using the sewage water cannot be tolerated which was a very serious issue therefore, the SFA has decided to initiate a massive drive in which all such productions will be completely bulldozed and strategies will be devised to make that no sewage water is used in future for cultivation of vegetables, he added.

    He stressed that both institutions will have to work collectively to create a healthier society. “We need KCCI’s support otherwise we cannot move forward”, he added.

    Speaking on the occasion, President KCCI Junaid Esmail Makda stated that the Karachi Chamber has been successfully playing the role of bridge between the business community and SFA therefore, any grievance being faced by businessmen be brought to Chamber’s notice so that the issue could be amicably resolved.

    “The authorities at Sindh Food Authority must also work closely with KCCI and carry out all its operation in consultation with KCCI in order to create an enabling business environment”, he added.

    He was of the opinion that prior to taken any action, SFA must hold frequent awareness sessions and make people aware of the required hygienic conditions and food quality as it takes many years to build a brand name which is destroyed within minutes as it has been observed that all the activities being carried out by SFA were being widely broadcasted in the media.

    He also underscored the need to adopt uniform policies by all the food authorities across Pakistan as it has been observed that these policies vary in Sindh, Punjab and KPK, creating a confusing situation for businessmen.

    Referring to SFA operation largely confined to Karachi only, he said that the department should expand its operations to other cities of Sindh as well where hundreds of people were suffering terribly due to unhygienic and low-quality food stuff.