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  • Prudent reforms helped improve tax-to-GDP ratio: Tarin

    Prudent reforms helped improve tax-to-GDP ratio: Tarin

    ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, Thursday said prudent fiscal reforms have helped in improving the tax-to-GDP ratio.

    He said this while addressing at an event organized by Pakistan Business Council.

    READ MORE: Tax to GDP ratio at 20% prime objective: Tarin

    The adviser highlighted the economic priorities of the government and said that the government is committed to introducing growth-oriented measures to stimulate economic growth, with a clear roadmap of strategic priorities, business facilitation, investment opportunities, revenue, and expenditure plans.

    The aspiration was to lay the foundation of higher inclusive and sustainable growth so that the economy withstands any shock. These policies stabilized the economy while simultaneously improving the growth prospects.

    READ MORE: FBR projects 12 percent tax to GDP ratio in three years

    He said that prudent fiscal reforms have helped in improving the tax-to-GDP ratio and improving revenue generation. Increasing tax collection and expanding the tax base were key objectives of the government’s financial agenda.

    The adviser identified priority sectors such as agriculture, IT, and industry modernization to boost exports and said special economic zones have been set up to attract foreign investment.

    READ MORE: Tax to GDP ratio slips to 11.4 percent in FY20

    The government is vigorously pursuing a “Make in Pakistan” policy to promote export-oriented industrialization in the country. The government’s efforts had been to further the investment climate and attract FDIs in the country.

    The Adviser also shared the steps taken to help the underprivileged through the social protection programs to improve the living standard of vulnerable segments of the society by empowering them.

    READ MORE:

  • Profit rates on saving schemes sharply increased

    Profit rates on saving schemes sharply increased

    ISLAMABAD: The government has announce sharp increase in profit rates for national saving scheme following the significant rise in key policy rate announced last month by the State Bank of Pakistan (SBP).

    The Central Directorate of National Savings (CDNS) on Thursday notified increase in profit rates of saving schemes. The CDNS increased the profit rate up to 240 basis points with effect from December 10, 2021.

    READ MORE: SBP increases policy rate by 150 basis points to 8.75%

    The profit rate on special saving account has been increased by 240 basis points to 10.6 per cent from 8.20 per cent.

    The profit rate on regular income certificate has been increased by 204 basis points to 10.8 per cent from 8.76 per cent.

    The profit rate on pension and Behbood certificates have been increased by 192 basis points to 12.96 per cent from 11.04 per cent.

    The profit rate has been increased by 175 basis points to 7.25 per cent from 5.5 per cent on saving accounts.

    Similarly, the profit rate on defence saving certificates has been increased by 161 basis points to 10.98 per cent from 9.37 per cent.

    READ MORE: CDNS decides screening all customers of national saving schemes

  • Mandatory biometric verification restored for pensioners

    Mandatory biometric verification restored for pensioners

    ISLAMABAD: The government has made mandatory the biometric verification for pensioners to make withdrawal of their pension amount from banking system.

    In an office memo, the Finance Division said that the mandatory requirement of biometric verification has been restored for the pensioners, which was suspended due to COVID-19.

    READ MORE: Grant of 10% increase in pension notified

    The finance division on January 28, 2021 has made it mandatory for direct credit system (DCS) pensioners to undergo biometric verification on National Database and Registration Authority (NADRA) system through any branch of a bank every year in the months of March and October. However, the same was held in abeyance through office memo dated May 6, 2021 due to COVID-19.

    Since the normal working has been restored, therefore, it has been decided to operationalize the biometric verification for federal government pensioners with immediate effect who were issued pension from AGPR Islamabad (for military pensioner, and those who were issued pension from AGPR sub-offices and District Account Offices will be communicated separately), according to the finance division.

    READ MORE: Pensioners living abroad require presenting life certificate

    Pensioners to undergo biometric verification twice a year; rules amended
  • ICIJ shares Pandora Papers information with PMIC

    ICIJ shares Pandora Papers information with PMIC

    ISLAMABAD: The International Consortium of Investigative Journalists (ICIJ) has shared information related to the Pandora Papers with the Prime Minister’s Inspection Commission (PMIC), a statement said on Wednesday.

    It said that the investigation into Pandora Papers is now at a fairly advanced stage.

    In the first phase, PMIC collated information regarding the individuals and entities named in the Pandora Papers followed by a process of verification of details through the concerned governmental agencies and regulatory bodies.

    READ MORE: Pandora papers: PM says returning taxpayers’ money

    “During this process, contact was also established with the ICIJ, and the concerned journalists. They shared the information which was available with them,” it added.

    It is relevant to mention that, as opposed to the initial media reports that more than 700 individuals of Pakistan origin were linked with Pandora Papers; the number revealed to PMIC so far is considerably less. PMIC is now focusing on these persons and undertaking necessary assessment as per its Terms of Reference.

    READ MORE: PM task force initiates proceedings in Pandora papers

    Relevant information regarding the individuals, their financial interests and transactions is being thoroughly examined. In order to ensure impartiality and completeness of exercise in all respects, it has been decided not to place information regarding any individual in public domain before concluding the investigation.

    It has further been decided to allow sufficient opportunity to the individuals concerned to clarify their position. All persons, including present and past holders of public office who have been named in the Pandora Papers, are being formally contacted for their version and contention.

    READ MORE: PMIC initiates action against 50 individuals, entities

    The proceedings are being conducted in a manner so as to avoid speculation, media hype and possibility of harassment especially in the case of private persons and businessmen.

    PMIC is satisfied that the task is being completed in an objective manner and a comprehensive report substantiated through data and documents would be completed soon.

    It is reiterated that no adverse inference will be drawn against any individual or entity without first formally placing on record their version or clarification.

    The final report will include a way forward and preferred actions for different categories and sets of persons besides recommendations for system improvement through enhanced transparency and accountability.

    PMIC acknowledges the cooperation and assistance extended by all concerned which helped in streamlining the information gathering, compilation, verification and the evaluation.

  • Pakistan establishes Afghanistan relief fund

    Pakistan establishes Afghanistan relief fund

    ISLAMABAD: Pakistan on Wednesday established a fund namely ‘Afghanistan Relief Fund’ to provide humanitarian assistance to Afghanistan.

    According to a notification issued by the Finance Division, all proceeds on account of ‘Afghanistan Relief Fund’ and payment into the aforesaid fund will be received at all branches of State Bank of Pakistan, all treasuries and branches of National Bank of Pakistan and all other scheduled banks.

    READ MORE: Pakistan donates 50,000MT wheat to Afghanistan

    The finance division said that the fund may receive donations from both domestic, international donors and contributions from aboard which will be received at all the branches of above referred banks where such branches are existing. “In other foreign countries contributions will be received at Pakistan missions and remitted to the State Bank of Pakistan, which would prescribe necessary procedure for their accounting.”

    All proceeds received in the name of the fund will be credited to the public account of the federal government under following head of account:

    Major object: G12: Special deposit fund

    Minor Object: G121: relief fund

    Detailed Object (New): G12163: Afghanistan Relief Fund

    The finance division said that accounts of the fund would be maintained by Accountant General of Pakistan Revenue, Islamabad and Fund will be administered by the ministry of economic affairs in consultation with the finance division.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

  • Pakistan’s trade deficit widens by 112% to $20.59 billion

    Pakistan’s trade deficit widens by 112% to $20.59 billion

    ISLAMABAD: Pakistan’s trade deficit ballooned by 112 per cent to $20.59 billion during the first five months (July – November) of the current fiscal year 2021/2022, according to official data released on Thursday.

    The trade deficit was at $9.72 billion in the same months of the last fiscal year, revealed by the data released by the Pakistan Bureau of Statistics (PBS).

    Pakistan’s import bill surged by 69.17 per cent to $32.934 billion during July – November 2021/2022 as compared with $19.468 billion in the same period of the last fiscal year.

    The exports of the country also exhibited by 26.68 per cent to $12.344 billion during the period under review as compared with $9.744 billion in the corresponding period of the last fiscal year.

    The country reported $4.963 billion as trade deficit for the month of November 2021. The trade deficit has swelled by 134 per cent in November 2021 as compared with the deficit of $2.121 billion in the same month of the last year.

    The import bill registered a phenomenal growth of 82.83 per cent to $7.847 billion in November 2021 as compared with $4.292 billion in the same month of the last year.

    The exports also grew by 33 per cent to $2.884 billion in November 2021 as compared with $2.171 billion in the same month of the last year.

    Pakistan’s import bill surges by 65% in four months
  • Pakistan’s import cover reduces to two months

    Pakistan’s import cover reduces to two months

    KARACHI: Pakistan’s import cover has been reduced to two months with a reduction in official foreign exchange reserves of the State Bank of Pakistan (SBP) to $16.01 billion.

    The import cover was 3.3 months in August 2021, according to analysts at Topline Securities.

    According to the data released by the SBP, its official reserves were declined by $244 million to $16.01 billion by the week ended November 26, 2021, as compared with $16.254 billion a week ago.

    The foreign exchange reserves of the country reduced by $275 million to $22.499 billion by the week ended November 26, 2021, as compared with $22.774 billion by the week ended November 19, 2021.

    The foreign exchange reserves held by commercial banks also declined by $31 million to $6.489 billion by the week ended November 26, 2021 as compared with $6.52 billion a week ago.

    Pakistan’s foreign exchange reserves slip to $23.55 bn
  • PM Adviser directs to reduce luxury items import

    PM Adviser directs to reduce luxury items import

    ISLAMABAD: Shaukat Tarin, Adviser to Prime Minister on Finance and Revenue, has directed the authorities to take measures to reduce the import of luxury items.

    He was presiding over a meeting to review the balance of trade at Finance Division on Thursday.

    Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Adviser to the PM on Commerce & Investment Abdul Razak Dawood, Federal Secretaries, Governor State Bank of Pakistan (SBP), Chairman Federal Board of Revenue (FBR) and other senior officers participated in the meeting.

    The meeting reviewed and discussed the import bill for the last five months- July to Nov 2021.

    It was informed that the pressure on import bill was mainly due to global high commodity prices especially energy, steel, and industrial raw materials.

    The forum also noted that high import of vaccine contributed significantly to the rise in import bill.

    Moreover, it was informed that there will be less import of food items, furnace oil and vaccine in the coming months that will significantly reduce the pressure on trade bill in the second half of the current fiscal year.

    At the conclusion, the Adviser to the PM on Finance and Revenue advised the concerned authorities to take effective policy measures to reduce unnecessary imports of luxury items.

    IMF Board to approve $1.059bn by Jan 12, 2022: Tarin
  • Timelines for CPEC projects should be adhered to: PM

    Timelines for CPEC projects should be adhered to: PM

    ISLAMABAD: Prime Minister Imran Khan on Wednesday emphasized that timelines specified for completion of China-Pakistan Economic Corridor (CPEC) should be adhered to.

    Prime Minister Imran Khan chaired a high level meeting to review progress on CPEC projects.

    The Prime Minister emphasized that timelines specified for completion of CPEC projects should be adhered to. He said that Government of Pakistan is fully committed to provisions of CPEC agreements.

    The Prime Minister stated that China has been a time-tested friend of Pakistan and that the Government accords high priority to implementation and operationalization of CPEC projects.

    The Prime Minister highlighted that continuity of policies is essential for long-term projects in order to achieve maximum benefits for the country.

    Earlier, SAPM on CPEC Affairs Khalid Mansoor briefed the meeting about updated status of CPEC projects.

    The meeting was attended by Federal Ministers Muhammad Hammad Azhar, Ali Haider Zaidi, Asad Umar, Advisor Finance Shaukat Fayaz Tarin, Advisor Commerce Abdul Razaq Dawood and senior officers.

    PM Imran launches incentive program for remittances
  • PM adviser stresses need to rationalize salaries

    PM adviser stresses need to rationalize salaries

    ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, on Tuesday stressed the need to rationalize salaries, allowances, and perks.

    Tarin was addressing a virtual meeting of the Pay and Pension Commission.

    The Commission is headed by Zafar Ahmed Khan and is composed of senior professionals from public and private sectors as well as serving Federal and Provincial Secretaries, AJK and GB and other senior officers of the governments also attended the meeting.

    Speaking on the occasion, the Adviser underscored that current model for pay and pension is not sustainable and there is a need to rationalize the salaries, allowances, perks etc. on the basis of performance and quality work.

    The performance of the employees may be assessed on the basis of setting targets and KPIs and simultaneously best performers may be compensated with rewards.

    The Adviser stressed for removal of anomalies in basic pay structure and suggested a uniform basic pay structure for all the organizations. He suggested for the adoption of internationally accepted practices in the matter of pensions.

    Tarin emphasized that there is a need to work out ranges for linking compensation with performance. This will ensure meritocracy in the recruitment and result in improved service delivery in the public sector.

    The Adviser further extended his full support and cooperation to the Commission.

    Chairman, Pay and Pension Commission thanked Adviser to the PM on Finance and Revenue for his keen interest and ownership of the work of the Pay and Pension Commission. He assured that the Commission will do its best to come up to the expectations of the Government and would present an actionable set of recommendations to the Government for rationalizing the pays of the public servants.

    Withholding tax rates on salary income for 2021-2022