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  • Foreign exchange reserves remain flat at $20.159 billion

    Foreign exchange reserves remain flat at $20.159 billion

    KARACHI: The liquid foreign exchange reserves of the country are remained flat at $20.159 billion by week ended March 12, 2021, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.158 billion by week ended March 05, 2021,

    The official foreign exchange reserves of the central bank were at $13.02 billion by week ended March 12, 2021 as compared with $13.016 billion a week ago.

    The foreign exchange reserves held by commercial banks were at $7.139 billion by week ended March 12, 2021 as compared with $7.142 billion a week ago.

  • Foreign direct investment falls by 30pc during July-Feb

    Foreign direct investment falls by 30pc during July-Feb

    KARACHI: The net inflow of foreign direct investment (FDI) has declined by 30 percent during first eight months (July – February) 2020/2021 owing to significant increase in outflow of the investment during the period under review.

    According to data released by State Bank of Pakistan (SBP) on Wednesday, the FDI fell to $1.3 billion during first eight months of the current fiscal year as compared with $1.85 billion in the corresponding months of the last fiscal year.

    The inflows under this head witnessed a decline of 16 percent to $1.98 billion during July – February 2020/2021 as compared with $2.36 billion in the corresponding period of the last fiscal year.

    However, outflow under this head increased by 35 percent to $683 million during the period under review as compared with $507 million in the corresponding period of the last fiscal year.

    The overall inflow of private foreign investment fell by 43 percent to $1.04 billion during the first eight months of the current fiscal year as compared with $1.83 billion in the corresponding period of the last fiscal year.

    The portfolio investment from the equity market witnessed massive outflows during the period. The portfolio investment saw an outflow of $256 million during the first eight months of the current fiscal year as compared with outflow of $26.3 million in the same period of the last fiscal year.

    The foreign public investment recorded outflow of $132 million during first eight months of the current fiscal year as compared with inflows of $2.16 billion in the corresponding period of the last fiscal year.

  • Pakistan, Iran reiterate resolve to promote economic, trade linkages

    Pakistan, Iran reiterate resolve to promote economic, trade linkages

    ISLAMABAD: Pakistan and Iran on Friday reiterated resolve to promote economic and trade linkages between the two countries.

    Hassan Abghari, Deputy Minister of Economic and Finance Affairs and the Managing Director, Iran Foreign Investment Company (IFIC) of the Islamic Republic of Iran called on the Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, at the Finance Division on Friday.

    Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh extended a warm welcome to the H.E Deputy Minister of Economic and Finance Affairs who was accompanied by the Deputy Head of Mission Muhammad Surkhabi, Embassy of Iran.

    They exchanged views on matters of common interests and reiterated resolve to promote economic and trade linkages between the two countries by building upon historical ties, geographical proximity, cultural affinities and economic commonalities.

    The Finance Minister emphasized to find ways for furthering trade relations.

    The Pakistan Iran Investment Company can play a pivotal role in strengthening trade and investment between the two countries, he added.

    The Finance Minister briefed His Excellency Deputy Minister that Government of Pakistan is pursuing a broad-based economic reform agenda to achieve export led growth and sustainable economic development.

    He apprised about the economic challenges posed by the COVID-19 pandemic and outlined socio-economic measures taken by the Government of Pakistan to lessen the adverse impact of the pandemic on marginalized sections of the society.

    The government announced largest ever Fiscal Stimulus Package and introduced the strategy of a smart lockdown to protect the vulnerable segments of the society which has been acknowledged worldwide, he stated.

    The current Government is firmly committed to correct fundamentals of the economy through effective policy making and targeted reforms with an aim to achieving sustainable and inclusive growth strategy, he concluded.

  • Foreign exchange reserves inch up to $20.158 billion

    Foreign exchange reserves inch up to $20.158 billion

    KARACHI: The liquid foreign exchange reserves of the country inched by $25 million to $20.158 billion by week ended March 05, 2021, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.133 billion a week ago.

    The official foreign exchange reserves of the SBP increased by $38 million to $13.016 billion by week ended March 05, 2021 as compared with $12.978 billion a week ago.

    The foreign exchange held by commercial bank, however, fell by $13 million to $7.142 billion by week ended March 05, 2021 as compared with $7.155 billion a week ago.

  • Remittances surge by 24 percent in eight months

    Remittances surge by 24 percent in eight months

    KARACHI: The inflow of workers’ remittances has increased by 24 percent to $18.74 billion during first eight months (July – February) 2020/2021, according to data released by State Bank of Pakistan (SBP) on Thursday.

    The SBP received $15.104 billion as workers’ remittances during the same months of the last fiscal year.

    The inflows during the month of February 2021 also posted 24 percent increase to $2.26 billion when compared with $1.82 billion in the same month of the last year.

    The inflows recorded robust growth of 46.7 percent, 56.8 percent and 19.5 percent from USA, UK and Saudi Arabia, respectively, during first eight months of the current fiscal year.

  • ECC approves cotton import through land route

    ECC approves cotton import through land route

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved import of cotton through land route subject to fulfillment of codal formalities.

    Federal minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC.

    The ministry of commerce tabled a summary before the ECC seeking permission for import of cotton from Afghanistan and Central Asian States through land route via Torkham border to bridge the gap between supply and demand and to ensure sufficient availability of cotton for promoting textile exports.

    The ECC had granted such permission earlier to workout necessary arrangements with reference to Plant Quarantine Rules to meet Sanitary and Phytosanitary (SPS) requirements for import of cotton via land routes.

    The ministry of commerce requested to extend the above permission for import of cotton via land route during the current financial year. The ECC approved the said request subject to fulfillment of codal formalities.

    Ministry of Industries and Production presented a ‘Ramadan Relief Package-2021’ in accordance with the directive of the Prime Minister to provide maximum relief to the marginalized segments of the society during the holy month of Ramadan.

    The Utility Stores Corporation would subsidize 19 essential items under the proposed relief package entailing subsidy equivalent to approx. Rs. 7.8 billion including wheat flour, sugar and ghee which have significant differential vis-a-vis prevailing prices in the domestic markets.

    The MD, USC briefed the forum that procurement would start from 01 April, 2021 to ensure availability of basic items at discounted prices across 4000 outlets of USCs throughout the country. The Committee directed MD USC to coordinate with Finance Division for timely release of funds to ensure well-timed procurement and other contingent arrangements.

    The ministry of industries and production presented another summary seeking permission regarding operation of two plants namely Agritech and Fatima Fertilizer from March till November, 2021 to produce urea from SNGPL based plants.

    The underlying rationale is to bridge the gap between estimated demand and actual domestic production of urea in the country.

    The Committee approved operations of the above-mentioned plants with a direction that the Ministry may closely monitor the demand-supply situation and take decision to import urea, if needed, as per requirement during the current year.

    Secretary, Ministry of National Health Services, Regulation and Coordination tabled a summary for exemption of taxes and duties on import of auto disable syringes and raw material needed for local manufacturing of auto disable syringes in the country.

    The Secretary Health briefed the forum about efforts underway to switch from conventional syringes to auto disable syringes as reuse of conventional syringes leads to blood borne diseases in Pakistan such as hepatitis, HIV etc.

    The ECC approved the summary, in principle, and directed the Ministry of Health to hold a follow-up meeting with the Law Division to fine tune details.

    The ECC also considered a summary regarding exemption of Federal Excise Duty for 10 soft-skin vehicles imported by Food and Agriculture Organization (FAO) to be used by the Department of Plant Protection (DPP) for locust control operations. Ministry of NFS&R requested for a one-time exemption of Federal Excise Duty amounting to Rs.10.3 million for 10 vehicles.

    After due deliberation, the ECC constituted a Committee with representatives from Law Division, FBR and Ministry of National Food Security and Research for further discussion and submission of updated proposal before the Committee.

    Secretary, Ministry of the Information Technology and Telecommunication presented a summary before the Committee based on recommendations by a Cross-stakeholder Committee for addressing critical issues of Cellular Mobile Industry for digital enablement such as reduction in NADRA Biometric Verification Charges (BVC), License renewal under further Spectrum Price etc.

    After detailed discussion, the ECC constituted a sub-committee under the Chairmanship of the Adviser to the Prime Minister on Institutional Reforms and Austerity Ishrat Hussain with Secretary IT, Secretary Finance and a representative from PTA as its members to deliberate further and present before the ECC accordingly.

    Secretary, Ministry of Communications updated ECC on National Freight and Logistics Policy (NFLP) discussed in earlier meeting held on 20th January, 2021.

    The Ministry of Communications has segregated the proposals into two broad categories in line with the earlier directive of the Committee.

    The ECC directed to discuss the proposals involving multiple stakeholders as envisaged under the NFLP, through an Institutional framework, steered by the Deputy Chairman Planning for evolving consensus among all stakeholders including provincial representatives for a way forward.

    Petroleum Division updated the ECC about the recommendations firmed up by a sub-committee established in line with the earlier decision of the ECC dated 28 Jan, 2021 regarding review of Oil Marketing Companies (OMCs) and Dealers Margins on Petroleum products.

    After detailed discussion, the ECC approved to revise OMCs and Dealers Margins on the basis of 85% of the latest average core inflation with immediate effect, and directed to expedite a study by PIDE.

    The Power Division submitted another summary about re-targeting of Power Sector subsidies (phase-I). The Committee considered and approved the proposals recommending that Power Division will complete the analysis based on the listed principles and submit specific recommendations on thresholds and rates for the consumers before the ECC by 31st March, 2021.

    The following Technical Supplementary Grants were also approved by the ECC:

    1. Rs. 1056 million for the Ministry of Federal Education and Professional Training for completion of Projects related to COVID-19.

    2. Rs. 1.5 billion for the Ministry of Housing and Works for disbursement of interest free loans to the borrowers under Prime Minister’s Low-Cost Housing Scheme.

    3. Rs.334.306 million for the Ministry of Interior for the payment of salaries / subsistence allowance to the Civil Armed Forces deployed in the Peacekeeping Missions.

    4. Rs.31.50 million for meeting expenses of Federal Insurance Ombudsman Secretariat working under the Ministry of Law and Justice.

    5. Rs. 9.685 million for Pakistan National Shipping Corporation, Karachi to clear the dues of M/s Coniston against PSM.

    6. Rs.67.358 million for the Cabinet Division for meeting various expenses.

    7. Rs. 419 million were approved to facilitate Pakistan Central Cotton Committee to carry out its research and development activities.

    Federal Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Energy Omar Ayub Khan, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Industries and Production Hammad Azhar, Federal Minister for Railways Azam Khan Swati, Federal Minister for Privatization Muhammad Mian Soomro, Adviser to PM on Commerce Abdul Razak Dawood, Governor State Bank of Pakistan Reza Baqir, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Federal Secretaries from MNS&F, Ministry of Interior, Ministry of Maritime Affairs, National Health Services, Law and Justice Division, Ministry of Information Technology & Telecommunication, Chairman Board of Investment, Deputy Chairman Planning Commission, MD Utility Stores Corporation and other senior officials participated in the meeting.

  • Bill to be presented for abolishing tax exemptions

    Bill to be presented for abolishing tax exemptions

    ISLAMABAD: The government will present a bill before the parliament to abolish tax exemptions that are discriminate towards many individuals and sectors of the economy.

    Minister for Finance and Revenue Dr. Abdul Hafeez Shaikh said this at a press conference on Tuesday.

    He said many companies and sectors are exempted from the taxes and to abolish such discrimination and to bring uniform system all such exemptions would be brought under the law.

    He said under Prime Minister Imran Khan’ vision to collect taxes in a way that poor people should not be affected, tax system is being reformed.

    He said that the cabinet approved draft of State Bank of Pakistan (SBP) Amendment Bill 2021 to give absolute autonomy to the Central Bank.

    He said the central bank’s core objective was to control inflation and to fight increase in prices and the law also aimed at providing the Bank further autonomy to ensure that it fulfills its objectives of price stability with complete independence.

    He said the law would also help SBP to independently fulfill the requirements of monetary policy and exchange rates without intervention of the the government. The term of Governor SBP, he said would also be extended to five years.

    Hafeez Shaikh said the government would stop borrowing from the central bank so that the federal government could manage financing by its own resources or by lending from the commercial banks.

    Further he said the monetary and fiscal coordination board would also be abolished and instead the government would arrange coordination through special committees.

    The minister informed that the Governor would be appointed by the President of Pakistan and the Bank would only be accountable to the Parliament.

    He informed that the second law approved by the cabinet was about Pakistan’s State Owned Entities (SOEs) that were engaged in business activities.

    The purpose of this law is to provide more authority to the SOEs by stopping intervention of the ministries and the ministers.

    The board and the Chairman would be appointed by the government under a transparent and professional way and the CEOs of the institutions would appoint the boards, instead of the minsters so that professionalism in these areas should be promoted.

    Further he said the CEOs would be made more secure so they run their companies without any pressure to compete with the private sector.

    He pointed out that these bills would be followed on fast track basis.

    About International Monetgary Fund, Shaikh said Pakistan and the IMF were currently engaged to resume the Extended Fund Facility that was paused for few months due to COVID-19.

    “The IMF international Board would meet soon and financial lending for Pakistan will resume”, he added.

    Adviser to Prime Minister on Institutional Reforms Dr. Ishrat Hussain on the occasion said major reforms in the institutions were being introduced to promote transparency and professionalism in the government departments.

    He said the due to these reforms, losses in government institutions were drastically reduced and efforts were made to wipe out all losses in future.

    To a question, Shaikh said privatization was a difficult task and big investors were needed in this process.

    He said the privatization programme was being extended and the process was now resumed after a temporary halt due to COVID-19.

    To another question, he said the government was minimizing gap between the income and the expenditure and the primary fiscal balance was in surplus of Rs 400 billion.

    Besides, he said the government had also not borrowed a single rupee from the Central Bank nor it provided additional grants to the government departments.

    About inflation, he said the government had not control over the prices of such basic kitchen items which are imported from abroad.

    However, the government in this regard can only do to provide assistance to the extreme people and it is providing financial support to over 15 million, he added.

    Further he said at utility stores too, the government was providing the basic usable items at affordable prices to the targeted income group. He informed that the targeted subsidy would be further extended in future.

    Minister for Industries Hammad Azhar said that utility stores was providing wheat flour at a subsidized rate of Rs 800 per 20 kg bag, sugar at Rs 68 per kg, ghee at Rs 125 per kg and the price was retained for over a year an it has been decided that this price would continue in future as well.

    Chairman Federal Board of Revenue Javed Ghani and Secretary Finance Kamran Afzal were also present on the occasion.

  • Grant of disparity reduction allowance at 25pc for government employees notified

    Grant of disparity reduction allowance at 25pc for government employees notified

    ISLAMABAD: The finance division has notified grant of disparity reduction allowance at 25 percent of the basic pay to the civil employees in BS-1-19 of the federal government.

    Sources on Friday said that the finance division had issued a notification for the approval of the Federal Government for grant of Disparity Reduction Allowance at 25percent of the basic pay of Basic Pay Scales 2017 with effect from March 01, 2021.

    This allowance shall be admissible to civil employees in BPS 1-19 of the Federal Government, (including employees of the Federal Secretariat and attached departments), who have never been allowed additional allowance/allowances equal to or more than 100 percent of the basic pay (whether frozen or not) or performance allowance subject to the following conditions:

    a) This Allowance will not be admissible to the employees of the organizations as mentioned in Annexure-I and those employees who are drawing additional allowance/allowances equal to or more than 100 percent of the basic pay whether frozen or otherwise);

    b) This allowance will be frozen at the level drawn on March 01, 2021

    c) This Allowance will be subject to Income Tax;

    d) This Allowance will be admissible during leave and entire period of L.P.R. except during extra ordinary leave;

    e) This Allowance will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent;

    f) This Allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;

    g) This Allowance will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them, had they not been posted abroad;

    h) This Allowance will be admissible during the period of suspension;

    i) The term “Basic Pay” will also include the amount of Personal Pay granted on account of annual increment (s) beyond the maximum of the existing pay scales.

    Annexure-I

    Following is the List of organizations/Employees drawing Extra Allowances

    1. President/ PM Secretariat

    2. Federal Board of Revenue

    3. Health personnel/ Health establishments

    4. National Accountability Bureau (NAB)

    5. All Superior Courts

    6. Law & Justice Commission of Pakistan

    7. Islamabad Capital Territory Police

    8. National Highways & Motorways Police

    9. Islamabad Model Traffic Police

    10. Airport Security Force

    11. Civil Armed Forces

    12. Intelligence Bureau

    13. Inter Services Intelligence

    14. Federal Investigation Agency

    15. National Highways & Motorways Police

    16. National Assembly

    17. Senate Secretariat

    18. Parliamentary Affairs Division

    19. District Population Welfare Office

    20. Clinical Regional Training Institute

    21. Directorate General of Special Education

    22. National Institute of Rehabilitative Medicines

    23. National Institute of Special Education

    24. Rehabilitation Centre for Children with Development Disorders Islamabad

    25. National Council for Rehabilitation

    26. National Braille Press Islamabad

    27. Rehabilitation Unit Vocational Rehabilitation & Employment of Disabled persons Islamabad

    28. National Mobility & Independence Training Centre

    29. National Training Centre for Special Persons G-9/2 Islamabad

    30. Vocational Rehabilitation & Employment of Disabled persons SC-1 Islamabad

    31. Provision of Hostel facilities at NSEC VHC Islamabad

    32. National Special Education Centre for PHC Islamabad

    33. National Special Education Centre

    34. National Library & Resource Centre Islamabad

    35. National Trust for the Disabled

    36. Common Unit to Manage Global Fund

    37. Federal Services Tribunal

    38. Central Health Establishment and its Field Offices

    39. Federal Tax Ombudsman

    40. Appellate Tribunal Inland Revenue

    41. Customs Excise and Sales Tax Appellate Tribunal

    42. Environmental Protection Tribunal

    43. Accountability Courts

    44. Special Judge (Customs Taxation & Anti Smuggling)

    45. Special Judge (Central)

    46. Banking Courts

    47. Special Courts (Control of Narcotics Substance)

    48. Special Court (Offence in Banks)

    49. Special Court (Anti Terrorism)

    50. Competition Appellate Tribunal

    51. Intellectual Property Tribunal

    52. Drug Courts

    53. Anti Dumping Appellate Tribunal

    54. Senior Civil Judge West Islamabad

    55. Senior Civil Judge East Islamabad

    56. District & Session Judge West Islamabad

    57. District & Session Judge East Islamabad

    58. The civilian employees of PAF who are drawing additional allowance as allowed vide Finance Division’s U.O. note bearing No.F.1(7)lmp/2009-705, dated 19-12-2012.

  • Trade deficit widens by 24pc in February

    Trade deficit widens by 24pc in February

    ISLAMABAD: The trade deficit has been widened by 24 percent Year on Year (YoY) in February 2021 owing to increase in imports and decline in exports, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The import bill for the month of February 2021 increased to $4.56 billion as compared with $4.16 billion in the corresponding month of the last year, showing an increase of 9.55 percent.

    However, the exports fell by 4.12 percent to $2.05 billion in February 2021 when compared with $2.13 billion in the same month of the last year.

    The trade deficit widened by 10.64 percent to $17.536 billion in first eight months (July – February) 2020/2021 when compared with the deficit of $15.85 billion in the corresponding months of the last fiscal year.

    The imports posted 7.49 percent growth to $33.84 billion during first eight months of the current fiscal year as compared with $31.48 billion in the corresponding months of the last fiscal year.

    The exports registered an increase of 4.29 percent to $16.3 billion during July – February 2020/2021 as compared with $15.63 billion in the corresponding period of the last fiscal year.