Pkrevenue.com

Category: Finance

Explore finance-related stories with Pakistan Revenue, your source for the latest updates on Pakistan’s economy, financial trends, and market insights. Stay informed with real-time economic developments.

  • Sugar mills monitoring: ECC approves Rs350 million for VAS purchase

    Sugar mills monitoring: ECC approves Rs350 million for VAS purchase

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved Rs350 million for procurement of Video Analytics System (VAS) to monitor production of sugar mills.

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

    The Federal Board of Revenue (FBR) presented a summary regarding procurement of VAS for proper monitoring of the production and sale of sugar in compliance with the directive of the prime minister.

    “The ECC approved an allocation of Rs350 million as a Technical Supplementary Grant for installation of the most optimal VAS solution at the sugar mills’ premises during the current crushing season as requested by the FBR,” a statement said.

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Omar Ayub Khan, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Governor State Bank Reza Baqir, Chairman FBR and Chairman Board of Investment participated in the meeting.

    Secretary, Ministry of Energy briefed the ECC about the detailed report by the Implementation Committee regarding conversion of MOUs into Agreements with IPPs to devise a payment mechanism for clearing outstanding payables.

     The Implementation Committee has agreed the payment mechanism with the 46 IPPs to clear the outstanding dues as on 30th November, 2020.

    The ECC commended the efforts made by the Implementation Committee and acknowledged the input of all concerned including Federal Minister for Energy, Federal Minister for Planning, SAPM on Power, Finance Division, Chairman Federal Land Commission, SAPM on Revenue, Governor SBP etc in working out a viable payment mechanism with the IPPs which will eventually save approximately Rs836 billion for the government over the average life of the projects.

    The ECC approved the report of the Implementation Committee with a direction to present the same before Cabinet for final approval.

  • Pakistan’s trade deficit widens by 8.27 percent to $14.96 billion in July – January

    Pakistan’s trade deficit widens by 8.27 percent to $14.96 billion in July – January

    ISLAMABAD: Pakistan’s trade deficit has surged by 8.27 percent to $14.96 billion during the first seven months (July – January) of the 2020/2021 fiscal year, propelled by an uptick in import bills following improved economic activities.

    (more…)
  • Exports cross $2 billion for four consecutive months in eight years

    Exports cross $2 billion for four consecutive months in eight years

    ISLAMABAD: Pakistan’s exports have crossed over $2 billion for the fourth consecutive months in January 2021 for the first time in last eight years, a statement said on Friday.

    A consultative meeting was held by the Advisor to Prime Minister on Commerce and Investment, Abdul Razaq Dawood, via video link to review the provisional trade data till the month of January 2021.

    He was informed that exports in January 2021 have increased by 8 percent to USD 2,135 million as compared to USD 1,978 million in January 2020.

    He was informed that this is the first time in last eight years that exports have crossed the $ 2 billion mark for four consecutive months.

    He was briefed that in January 2021, an increasing trend has been witnessed in the export of value-added and non-traditional products.

    The exports of Jerseys & Cardigans increased by 72 percent, Pharmaceutical by 55 percent, T-shirts by 43 percent, Plastics by 24 percent, Women’s Garments by 21 percent, Home Textiles by 19 percent, Textile Made-up by 11 percent, Men’s Garments by 8 percent and Rice by 7 percent as compared to January 2020.

    He was also informed that decreasing trend was noted in export of mostly non-value-added products.

    The exports of Maize decreased by 82 percent, Raw Leather by 23 percent, Cotton yarn by 11 percent, Cotton Fabric by 14 percent and Meat by 5 percent as compared to January 2020.

     The meeting was informed that geographically, in January 2021 exports increased to Canada (43 percent), Australia (42 percent), the United States (36 percent), South Africa (27 percent), China (21 percent), the United Kingdom (21 percent), Belgium (18 percent), and Saudi Arabia (14 percent).

    However, there was decrease in exports to Jordan (-68 percent), Senegal (-59 percent), Italy (-24 percent), Turkey (-21 percent), Bangladesh and the United Arab Emirates (-19 percent each).

    The 7-months’ performance of exports was also discussed in the meeting.

    The advisor was informed that the provisional export data for the period July-January 2020-21 showed that the exports increased by 5.5 percent, to USD 14,245 million as compared to USD 13,507 million during the same period last year.

    During July-January 2020-21, the exports of value-added and non-traditional products increased especially for Tents & Canvas (49 percent), Jerseys & Cardigans (37 percent), Pharmaceuticals (28 percent), Cutlery (27 percent), Socks & Stockings (26 percent), Women’s Garments (22 percent), Home Textiles (17 percent) and Textile Made-ups (9 percent) as compared to the same period last year.

    He was informed that as compared to the same period in the previous year, during July-January 2020-21 the export decrease was observed in mostly non-value added products, such as Cotton (-96 percent), Maize (-49 percent), Raw Leather (-30 percent), Cotton yarn (-24 percent) and Cotton Fabric (-9 percent).

    Dawood was informed that on the basis of export growth Pakistan’s Top markets for 7-months’ period are Indonesia (43 percent), Australia (22 percent), the United States (21 percent), the United Kingdom (21 percent), Poland (14 percent), Germany (12 percent), the Netherlands (11 percent) and China (9 percent).

    He was further informed that compared to last year, the markets showing declining exports during July-January 2020-21 were Thailand (-43 percent), Malaysia (-24 percent), Sri Lanka (-23 percent), the United Arab Emirates (-21 percent), Bangladesh (-18 percent), Italy (-7 percent) and Spain (-5 percent).

    Dawood advised the officials of the commerce ministry that much more needs to be done. He paid rich tributes to Pakistan’s exporters for this performance during difficult times despite the COVID-19 pandemic and contraction in Pakistan’s major markets. He urged them to aggressively focus on capturing a larger share of international exports.

  • Pakistan’s foreign exchange reserves increase to $20.163 billion

    Pakistan’s foreign exchange reserves increase to $20.163 billion

    KARACHI: Pakistan’s total liquid foreign exchange reserves have increased by $57 million to $20.163 billion by week ended January 29, 2021, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.106 billion by week ended January 22, 2021.

    The official reserves of the State Bank increased by $33 million to $13.031 billion by week ended January 29, 2021 as compared with $20.106 billion a week ago.

    The foreign exchange reserves held by commercial banks also increased by $24 million to $7.132 billion by week ended January 29, 2021 as compared with $7.108 billion a week ago.

  • Meeting decides speeding up installing video monitoring cameras at sugar mills

    Meeting decides speeding up installing video monitoring cameras at sugar mills

    ISLAMABAD: A high level meeting chaired by Prime Minister Imran Khan on Wednesday decided to speed up the process of installing video monitoring cameras at sugar mills to ensure transparency in production and supply.

    The prime minister was presiding over weekly review meeting regarding the availability and prices of basic commodities across the country.

    The meeting was briefed about the various measures taken in the light of Sugar Inquiry Report to keep the price of sugar under control. It was decided that the process of installation of cameras in sugar mills would be quickened.

    Besides, the Federal Board of Revenue (FBR) will provide the provincial governments with details of sales tax collected in the head of sugar so as to make the system transparent.

    The meeting was told that owing to the effective measures taken by FBR, the collection of sales tax from sugar had recorded 84 percent increase during July-January period of the current fiscal year.

    Prime Minister Imran Khan said that besides making the availability of basic commodities certain, ensuring appropriate prices was foremost priority of the government.

    He directed the administration of Utility Stores Corporation (USC) to ensure the ample availability of basic goods at all outlets.

    The meeting was attended by the relevant Federal and Provincial Ministers, Secretaries, Chief Secretaries and other senior officers.

    The prime minister directed the Ministry of National Food Security to complete at the earliest the assessment work regarding the future requirement of basic commodities like wheat and sugar so as to ensure advance arrangements in that regard.

    He directed all the chief secretaries to ensure the implementation of price list through active and effective role of the administration.

    The prime minister ordered to ensure immediate action against the officers committing any negligence in that respect.

    Minister for Finance Dr Hafeez Sheikh told the meeting that in the month of January 2021, the Consumer Price Index (CPI) was recorded at 5.7 percent as against 14.6 percent recorded in the corresponding month of previous fiscal year.

    Similarly, the CPI recorded at 8.2 percent during July-January period of the current fiscal was also lower when compared with 11.2 percent recorded during the same period of last fiscal, he added.

    The meeting was told that the comparison based on the latest statistics depicted significant decline in CPI.

    It was further told that the prices of sugar, eggs, onion etc. have recorded decline whereas the price of wheat flour had shown stability.

    The meeting was also briefed about the situation of official release of wheat along with the details of price differential at whole sale and retail levels in various districts.

    It was told that price differential at whole sale and retail levels depicted the failure of market committees.

    The meeting decided to immediately abolish the existing market committees in the two provinces ruled by Pakistan Tehrik-e-Insaf (PTI) and hand over the responsibilities to District and Tehsil administrations till the constitution of new committees comprising competent people through a transparent process.

    It was decided that in case of non-implementation of price list, action would be taken against the relevant Assistant Commissioner.

  • Budget deficit widens to 2.5 percent in first half: finance ministry

    Budget deficit widens to 2.5 percent in first half: finance ministry

    ISLAMABAD: The budget deficit has widened to 2.5 percent of the GDP during first half (July – December) of the current fiscal year 2020/2021 as compared with the deficit of 2.3 percent in the corresponding half of the last fiscal year, according to statistics released by the ministry of finance on Wednesday.

    According to the details, the total revenue was at Rs3,351 billion during the first half of the current fiscal year. Meanwhile, total expenditures was at Rs4,489 billion in the same period of the current fiscal year. Therefore, budget deficit stood at Rs1,138 billion or 2.5 percent of the GDP.

    The total tax revenue was recorded at Rs2,456 billion during the first half of the current fiscal year.  Out of which the contribution of the federal government was Rs2,210 billion and the rest Rs246 billion was by the provincial governments.

    The non-tax revenue was recorded at Rs895 billion out of which federal government contributed Rs484 billion and the provincial governments share was at Rs47 billion.

    The current expenditure has increased to Rs4,029 billion out of which the government’s mark up payments against loans were at Rs1,475 billion and defence expenditures were at Rs486 billion.

    The government spent Rs458 billion on development expenditure during the first half of the current fiscal year.

    The total revenue collection to GDP ratio during first half of the current fiscal year was at 7.4 percent. The total expenditure to GDP ratio was at 9.9 percent.

  • ECC approves renewal of gas supply agreement between SSGC, Fauji Fertilizer

    ECC approves renewal of gas supply agreement between SSGC, Fauji Fertilizer

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved the renewal agreement of gas supply between Sui Southern Gas Company (SSGC) and Fauji Fertilizer Bin Qasim Limited.

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

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Interior Sheikh Rasheed Ahmad, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Federal Minister for Energy Omar Ayub Khan participated in the meeting.

    Petroleum Division placed a summary before ECC regarding renewal of Gas supply Agreement (GAS) between Sui Southern Gas Company Limited and Fauji Fertilizer Bin Qasim Limited.

    After detailed discussion, the ECC approved with a condition that renewal would be allowed on “as and when available basis” for a period of 05 years. SSGCL may restore the gas supplies to M/S Fauji Fertilizer till December, 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalization of tariffs (whichever is earlier).

    The ECC considered and approved another summary by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in District Ghotki, Sindh Province to M/S Sui Southern Gas Company Limited from its previous allocation to SNGPL (as approved earlier by the ECC dated 06-10-2009). The price of gas will be as per the applicable Petroleum policy.

    Petroleum Division also moved a summary for removal of Dividend Distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company is being considered for privatization.

    After due deliberation, the ECC allowed that the dividend distribution cap may be removed to ensure that the divestment transaction generates optimum sale proceeds for the Government.

    The Committee further decided that MPCL would ensure dividend distribution in accordance with the Provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.

    On the recommendation of the Ministry of Housing and Works, the ECC allowed the Ministry to utilize its own funds equal to Rs. 377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi.

    The following Technical Supplementary Grants (TSGs) were approved by the ECC:

    a) Rs. 141.308 million to Ministry of Information and Broadcasting for an expenditure incurred on media campaigns to create awareness among public during COVID-19 pandemic.

    b) Rs. 9.025 million to Ministry of Information and Broadcasting for a media campaign on occasion of Kashmir Solidarity Day – 05 Feb. 2021.

    c) Rs. 5 million for purchase of spare parts for helicopter maintenance by HQs Pakistan Rangers (Punjab).

    d) Rs. 25 million for purchase of spare parts for helicopter maintenance by HQs Frontier Corps Balochistan (South).

    e) Rs. 10 million for repair and maintenance of helicopter by HQs Frontier Corps KP (South), D.I.Khan.

  • Headline inflation grows by 5.7 percent in January

    Headline inflation grows by 5.7 percent in January

    ISLAMBAD: The headline inflation based on Consumer Price Index (CPI) has increased by 5.7 percent in the month of January 2021, according to data released by Pakistan Bureau of Statistics (PBS).

    The headline inflation in January 2021 was increased when compared to an increase of 8.0 percent in the previous month and 14.6 percent in January 2020.

    On month-on-month basis, it decreased by 0.2 percent in January 2021 as compared to a decrease of 0.7 percent in the previous month and an increase of 2.0 percent in January 2020.

    CPI inflation Urban, increased by 5.0 percent on year-on-year basis in January 2021 as compared to an increase of 7.0 percent in the previous month and 13.4 percent in January 2020. On month-on-month basis, it decreased by 0.2 percent in January 2021 as compared to a decrease of 0.3 percent in the previous month and an increase of 1.7 percent in January 2020.

    CPI inflation Rural, increased by 6.6 percent on year-on-year basis in January 2021 as compared to an increase of 9.5 percent in the previous month and 16.3 percent in January 2020. On month-on-month basis, it decreased by 0.3 percent in January 2021 as compared to a decrease of 1.2 percent in the previous month and an increase of 2.4 percent in January 2020.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 7.7 percent in January 2021 as compared to an increase of 9.1 percent a month earlier and an increase of 18.3 percent in January 2020. On MoM basis, it decreased by 0.8 percent in January 2021 as compared to a decrease of 2.7 percent a month earlier and an increase of 0.5 percent in January 2020.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 6.4 percent in January 2021 as compared to an increase of 5.7 percent a month earlier and an increase of 15.4 percent in January 2020. WPI inflation on MoM basis increased by 2.5 percent in January 2021 as compared to an increase of 0.3 percent a month earlier and an increase of 1.8 percent in corresponding month i.e. January 2020.

  • Pensioners to undergo biometric verification twice a year; rules amended

    Pensioners to undergo biometric verification twice a year; rules amended

    ISLAMABAD: Pensioners are required to undergo biometric verification twice in a year in order to continue withdrawal of pension amount.

    The Finance Division on Friday issued SRO dated January 28, 2021 to notify amendments in the Federal Treasury Rules.

    As per the amendments, a pensioner drawing pension shall be bound to undergo biometric verification on National Database and Registration Authority (NADRA) system from any branch of a bank maintaining his pension account, every year in the months of March and October or provide a life certificate signed by a person authorized, if he is unable to undergo biometric verification due to incapacitation by bodily illness, infirmity or if his fingerprints do not exist due to old age or a genetic condition.

    Authorities shall obtain declaration yearly from pensioners whose pension is terminable by their marriage or re-marriage and shall be attached to the bills for pension paid for September, however, this requirement shall be dispensed with after attaining by the pensioner the age of sixty years.

    The disbursing officer must take special precautions to prevent imposition and must, at least once a year, receive proof of life or proof of continued existence of the pensioner, through NADRA’s biometric verification at any branch of a bank maintaining his pension account, which shall be conclusive proof of the continued existence of the pensioner.

    “Any pensioner who is incapacitated by bodily illness or infirmity from so going to any branch of a bank for biometric verification or whose finger prints no longer exist due to old age or infirmity or a genetic condition, that pensioner shall give written request for exemption and for that pensioner, the disbursing officer shall allow proof of life through life certificate as conclusive proof of his continued existence.”

    The disbursing officer shall be responsible for any payment wrongly made and in all cases of doubt, he must consult the Accountant General.

    “If a pensioner drawing pension fails to submit a life certificate or fails to undergo NADRA’s biometric verification during the months of March and October or he does not draw his pension for consecutive six months, his account shall become dormant.”

  • Foreign exchange reserves ease to $20.106 billion

    Foreign exchange reserves ease to $20.106 billion

    KARACHI: The liquid foreign exchange reserves of the country fell slightly by $14 million to $20.106 billion by week ended January 22, 2021, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.12 billion by week ended January 15, 2021.

    The official reserves of the central bank witnessed a decline of $16 million to $12.998 billion from $13.014 billion a week ago.

    The foreign exchange reserves held by commercial banks increased to $7.108 billion by week ended January 22, 2021 as against $7.106 billion a week ago.