Category: Finance

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  • Pakistan complies with 31 requirement of FATF

    Pakistan complies with 31 requirement of FATF

    KARACHI: Asia Pacific Group (APG) on Money Laundering has published results of Pakistan’s second Mutual Evaluation follow-up Report on 2 June 2021.

    As per the report, Pakistan has achieved compliant/largely compliant rating in 31 out of 40 Recommendations of Financial Action Task Force (FATF) in Technical Compliance.

    These results prove the sincerity along with resolve of the Government in complying with FATF requirements.

    These results are also a manifestation of the irreversibility and sustainability of the complete process in bringing Pakistan at par with Global AML/CFT standards.

    These results are manifestation of a whole of government approach adopted to achieve the same.

    An upgrade of 21 Recommendations within this short period of time remains unprecedented in FATF history.

  • Country’s foreign exchange reserves increase by $278mn to $23.294bn

    Country’s foreign exchange reserves increase by $278mn to $23.294bn

    The State Bank of Pakistan (SBP) announced on Thursday that the country’s liquid foreign exchange reserves witnessed a significant boost, soaring by $278 million to reach $23.294 billion by the week ending May 28, 2021.

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  • Date extended for encashment of bearer prize bonds

    Date extended for encashment of bearer prize bonds

    ISLAMABAD: The finance division has extended last date for redemption of bearer prize bonds Rs40,000 and Rs25,000 denominations up to September 30, 2021.

    According to notifications issued by the Finance Division the last date for redemption of Rs40,000 denomination bearer prize bonds has been extended up to September 30, 2021. Similarly, the last date for encashment of Rs25,000 denomination bearer prize bonds has also been extended up to September 30, 2021.

  • Finance ministry, IMF meeting to finalize budget proposals

    Finance ministry, IMF meeting to finalize budget proposals

    ISLAMABAD: An important meeting of the ministry of finance with representatives of International Monetary Fund (IMF) will be held today evening (Thursday evening) to finalize the recommendations for budget 2021/2022.

    Senior officials of the ministry of finance, three representatives, including country head, of IMF and senior officials of Federal Board of Revenue (FBR) will attend the meeting, sources said.

    Officials of the IMF will attend the meeting through video link.

    The meeting will discuss important points of the budget, which will include salary income tax and sales tax reforms.

    The sources said that the meeting would finalize tax slabs for salaried persons.

    The IMF had proposed reduction in salary tax slabs from 11 to five. Further the meeting will discuss sales tax incentives and reduced rates.

    The sources said that the government would finalize the proposals after discussions with the IMF.

    The source said that the government is considering an increase of 10 percent in salaries and pension. This increase would be given through adhoc basis. However, the government is not considering to grant the increase in basic pay scale.

    The government has decided to allocate an amount of Rs900 billion for Public Sector Development Program (PSDP).  The budget deficit may be curtailed at six percent of the GDP.

    In his recent statement, Finance Minister Shaukat Tarin had already made it clear that the government was not in position to take strict measures due to covid pandemic.

  • CCP issues notices to 19 poultry feed companies for cartelization

    CCP issues notices to 19 poultry feed companies for cartelization

    ISLAMABAD: Competition Commission of Pakistan (CCP) on Tuesday issued show cause notices to 19 poultry feed companies for collusive activities and entering into prohibited agreements.

    A statement issued by the commission stated that it had taken suo motu notice of the concern and complaints regarding a concurrent increase in the feed prices and initiated an enquiry.

    Data gathered from market sources showed that there was indeed a simultaneous increase in price by poultry feed mills and the average quantum of increase in price also appeared to be similar, which raised suspicion of collusive decision making and violation of Section 4 of the Competition Act, 2010.

    The CCP said that from December 2018 to December 2020, the feed mills colluded to raise the poultry feed prices by Rs825 per 50 kilogram bag, thus making feed 32 percent costlier for the poultry farmers. “Moreover, data from the Pakistan Bureau of Statistics (PBS) for September 2020 shows that chicken prices rose by 18.31 percent and eggs by 5.2 percent. The rise in these prices coincided with an increase in feed prices by almost Rs100 per bag.”

    In October 2020, the CCP said, after another price increase by poultry feed mills by Rs125 on layer and 175 on broiler feed, the chicken prices rose by 26.62 percent and eggs by 23.81 percent as compared to the previous month. In November 2020, the poultry feed prices rose again by Rs150 per bag, and the prices of chicken and eggs rose by 20.76 percent and 5.23 percent. In December 2020, another price increase in poultry feed by Rs250 per bag caused prices of chicken and eggs to rise by 3.21 percent and 14.08 percent, respectively.

    Moreover, the CCP said, multiple sources shared the concerns that some of the top poultry feed mills were meeting at different locations and fixing the feed poultry feed prices. Therefore, exercising its powers under Section 34 of the Competition Act, 2010, the CCP on February 04, 2021 carried out search and inspection of two major poultry feed mills based in Rawalpindi and Lahore to impound the proofs of their suspected involvement in collusive activities and collective fixing of poultry feed rates. Two authorized team of the CCP conducted the inspection and successfully impounded the relevant record including computer-stored information.

    “The impounded record revealed that officials of 19 feed mills were using an active WhatsApp group where one feed producer would announce its intended price increase and the rest expressing and sharing their willingness to follow suit.

    “These discussions and decisions were implemented on the ground, as evidenced by the official price lists of these companies.”

    The CCP said that based on the examination and review of the documents/material impounded during the raid, the enquiry report has been concluded.

    According to the enquiry report, from December 2018 to December 2020, the poultry feed mills have acted in a collective manner to fix the price of poultry feed, which constitutes a prima facie violation of Section 4 of the Act.

    Moreover, while poultry feed companies produce the poultry feed which are mostly located in Punjab, the feed is sold/supplied to poultry farms in Sindh and KPK to meet their requirements and therefore given the inter-provincial movement of poultry feed, any anticompetitive effects would have a spillover effect throughout Pakistan.

    The feed companies have been called upon to show cause in writing within 14 days and to appear and place before the commission for hearing. Once the CCP’s bench concludes the hearings, it will pass the order under Section 31 of the Act.

    The CCP said if proven, Section 4 violations entail a penalty of Rs75 million in case of a business association and up to 10 percent of the annual turnover or Rs75 million penalty in case of a company/business entity. The companies against whom proceedings are underway can also compete for leniency (reduction in or waiver of penalty) under the CCPs Leniency Regulations subject to provision of additional substantial information or evidence and acceptance by CCP.

  • Commerce ministry issues guidelines for joining Amazon

    Commerce ministry issues guidelines for joining Amazon

    ISLAMABAD: The ministry of commerce has issued guidelines for local businessmen to join Amazon – one of the world’s largest e-Commerce platform – as Pakistani seller.

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  • Total foreign investment surges by over 98pc in 10 months

    Total foreign investment surges by over 98pc in 10 months

    KARACHI: The inflow of total foreign investment into Pakistan has surged by over 98 percent during first 10 months (July – April) 2020/2021 of the current fiscal year owing to massive investments in public debt securities.

    According to data released by State Bank of Pakistan (SBP) on Friday, the total foreign investment into the country increased to $3.736 billion during first ten months of the current fiscal year as compared with $1.884 billion in the corresponding months of the last fiscal year.

    The foreign public investment in debt securities has increased to $2.463 billion during the period under review as compared with the outflow of $234 million in the same period of the last fiscal year.

    The foreign private investment fell by around 40 percent to $1.273 billion during first ten months of the current fiscal year as compared with $2.118 billion in the corresponding months of the last fiscal year.

    The major component of foreign private investment i.e. foreign direct investment (FDI) registered a decline of 32.5 percent to $1.553 billion during July – April 2020/2021 as compared with $2.301 billion in the same period of the last fiscal year.

    The other component of the foreign private investment i.e. portfolio investment in the stock market witnessed a sharp outflow of $280 million during the period under review as compared with the outflow of $182.7 million in the same period of the last fiscal year.

  • Foreign exchange reserves increase to $22.91 billion

    Foreign exchange reserves increase to $22.91 billion

    KARACHI: The foreign exchange reserves of the country increased by $167 million to $22.91 billion by week ended May 07, 2021, State Bank of Pakistan (SBP) said on Monday.

    The foreign exchange reserves of the country were at $22.743 billion by week ended April 30, 2021.

    The foreign exchange reserves held by the SBP increased by $176 million to $15.774 billion by week ended May 07, 2021 as compared with $15.598 billion by week ended April 30, 2021. The SBP attributed the weekly increase in the foreign exchange reserves to the government’s official inflows.

    The foreign exchange reserves held by commercial banks eased by $9 million to $7.136 billion by week ended May 07, 2021 as compared with $7.145 million on the week ended by April 30, 2021.

  • Pakistan, Saudi Arabia agree to strengthen bilateral economic ties

    Pakistan, Saudi Arabia agree to strengthen bilateral economic ties

    JEDDAH, Saudi Arabia: Prime Minister Imran Khan met His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud in Jeddah and held wide-ranging talks on bilateral, regional and international issues. The talks were marked by exceptional cordiality and a commitment to fortify the upward trajectory in the bilateral relationship.

    The Prime Minister conveyed sincere regards to the Custodian of the Two Holy Mosques, His Majesty King Salman bin Abdulaziz, and thanked the Crown Prince for his gracious invitation to him to visit the Kingdom.

    The Prime Minister expressed gratitude for affording him the opportunity to visit the two Holy Mosques during the special days of Ramadan.

    The two leaders reaffirmed the strong and historic bonds between the two countries rooted firmly in shared beliefs, common values, mutual trust and longstanding tradition of mutual support.

    The Prime Minister reiterated Pakistan’s abiding support for the sovereignty and territorial integrity of the Kingdom, and expressed special reverence accorded to the Land of the Two Holy Mosques by the people of Pakistan.

    During the meeting, it was agreed to further strengthen, deepen and diversify the existing bilateral political, economic, trade, defence and security ties.

    Special emphasis was laid on increasing Saudi investments in Pakistan, collaboration in the field of energy, and increased job opportunities for Pakistanis in Saudi Arabia.

    The Prime Minister appreciated the Crown Prince’s recently launched “Green Saudi Arabia and Green Middle East” initiatives and hoped to build upon the synergies between the vision of the Crown Prince and his own environment-related initiatives including the “10 Billion Trees Tsunami”.

    Acknowledging the positive and constructive role of more than two million Pakistani Diaspora in the Kingdom, the two leaders discussed ways to maximize mutual benefit from cooperation in the human resource sector.

    The Prime Minister thanked the Saudi leadership for taking considerate measures for the welfare of Pakistani expatriates during the COVID-19 pandemic. Views were exchanged on regional and international issues. The Prime Minister outlined his vision of a peaceful neighborhood to advance the objectives of national economic development.

    Highlighting the situation in IIOJK, the Prime Minister stressed the importance of peaceful resolution of the Jammu and Kashmir dispute. The Prime Minister also highlighted Pakistan’s consistent efforts to support peace and reconciliation in Afghanistan.

    The Prime Minister lauded the Crown Prince for the Kingdom’s efforts and initiatives aimed at reinforcing and further promoting regional peace and security. After the meeting, the Prime Minister and the Crown Prince signed the Agreement on Establishment of the Saudi-Pakistan Supreme Coordination Council (SPSCC). The Council, co-chaired by the Prime Minister and the Crown Prince, is designed to impart strategic direction to the development of Pakistan-Saudi relations.

    The Prime Minister expressed the hope that the SPSCC will play a catalytic role in fostering enhanced bilateral cooperation in all fields.

    The two leaders also witnessed signing of a number of bilateral agreements/Memoranda of Understanding (MoU), including Agreement on Cooperation in the Field of Combating Crimes; Agreement on Transfer of Convicted Individuals (Prisoners); MoU on Combating Illicit Traffic in Narcotic Drugs; Psychotropic Substances and Precursor Chemicals; and Framework MoU for financing of projects (totaling up to USD 500 million) in energy, hydropower generation, infrastructure, transport and communication and water resource development.

    The Prime Minister extended an invitation to HRH the Crown Prince to visit Pakistan at the earliest convenience. Earlier, upon arrival at Jeddah airport, Prime Minister Imran Khan was received warmly by HRH Crown Prince Mohammad bin Salman.