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  • Pakistan not renegotiating IMF-program

    Pakistan not renegotiating IMF-program

    ISLAMABAD: Pakistan is not renegotiating IMF program and the country remains committed to implement the policies and reforms spelled out in the IMF-supported program, said a clarification issued on Friday.

    A certain news item published on 6th September 2019 has reported that the IMF is sending an SOS mission to Pakistan owing to the fiscal outcomes of FY 2018-2019. The news item has also claimed that programme may be renegotiated.

    It is clarified that both these assertions are completely incorrect are not based on actual ground realities.

    The upcoming IMF Mission is a staff level visit and coincides with the visit of the Director of the Middle East and Central Asia Department of the International Monetary Fund.

    The Director’s visit to Pakistan had been planned for September soon after the finalisation of the programme. As such, it is absolutely erroneous to construe that the IMF staff level mission is any kind of SOS mission as it had already been planned much earlier. The claim that the IMF programme is being renegotiated is equally misconceived.

    “The Government of Pakistan remains firmly committed to implement the policies and reforms spelled out in the IMF-supported program.”

    As indicated in the program documents, the IMF-supported program will be monitored and reviewed according to a calendar of quarterly reviews. The first one is scheduled to take place at some point in December.

    Our understanding is that as part of our technical work program, an IMF team will come on a routine Staff Visit in mid September 16-20. It must also be emphasised that after the initial adjustments, the economy is rapidly stabilising, in particular the external sector, and that the current fiscal year will yield some very positive economic outcomes.

  • Foreign exchange reserves flat at $15.619 billion

    Foreign exchange reserves flat at $15.619 billion

    KARACHI – The State Bank of Pakistan (SBP) reported a marginal shift in the country’s liquid foreign exchange reserves, indicating stability in the economic landscape.

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  • Rebasing lowers average inflation for July-August

    Rebasing lowers average inflation for July-August

    ISLAMABAD: The average headline inflation i.e. Consumer Price Index (CPI) was calculated at 9.44 for the months of July and August, 2019 on the basis of revised base year, a statement said on Wednesday.

    Pakistan Bureau of Statistics (PBS) revised base year for calculating Consumer Price Index (CPI) from 2007-2008 to 2015-2016.

    The CPI on new base (2015-16) comprises of urban CPI and Rural CPI. The Urban CPI covers 35 cities and 356 consumer items. The Rural CPI covers 27 Rural Centers and 244 consumer items. In the new base year (2015-16) National CPI for 12 major groups is also computed by taking weighted average of Urban CPI and Rural CPI.

    According to the PBS, the inflation rate for August 2019 over July 2019 as per base year 2007-2008 is 1.3 percent and 1.64 percent as per base year 2016-2016.

    The inflation rate for August 2019 over August 2018 is at 11.63 percent as per base year 2007-2008 and 10.49 percent as per base year 2015-2016.

    The average inflation rate for July – August 2019 over the same period of last year is 10.98 percent as per base year 2007-2008 and 9.44 percent as per base year 2015/2016.

    The CPI National with base year (2015-16) for the month of August, 2019 has increased by 1.64 percent over July, 2019. The Urban CPI with base year (2015-16) recorded an increase of 1.46 percent while Rural CPI with base year (2015-16) recorded an increase of 1.91 percent. CPI with old base year (2007-08) recorded an increase of 1.38 percent.

    Top few commodities which varied from previous month i.e. July, 2019 are given below:

    URBAN:

    Increased: Chicken (40.75 percent), Tomatoes(37.47 percent), Onions(32.31 percent), Fresh vegetables(12.84 percent), Eggs (9.76 percent), Potatoes(6.21 percent), Cooking oil(4.68 percent), Vegetable ghee(4.18 percent), Motor fuel(3.88 percent), Sugar(3.78 percent), Pulse masoor(2.54 percent), Mustard oil(1.75 percent), Pulse gram(1.44 percent), Wheat flour (1.29 percent) and Pulse mash(1.01 percent).

    Decreased: Fresh fruits(15.64 percent), Liquified Hydrocarbons (LPG) (5.19 percent), and Wheat(0.3 percent).

    RURAL:

    Increased: Tomatoes(35.4 percent), Onions(28.49 percent), Chicken(26.56 percent), Potatoes(18.18 percent), Fresh Vegetables(10.96 percent), Eggs(9.79 percent), Sugar(5.21 percent), Doctor Clinic Fee (4.74 percent), Motor Fuels (4.21 percent), Cooking oil(3.22 percent), Pulse Moong(2.81 percent), Vegetable ghee(2.51 percent), Pulse Mash(2.35 percent) and Milk powder(1.85 percent).

    Decreased: Fresh fruits(20.6 percent), Fish(2.8 percent), Beans(1.72 percent) and Wheat(0.32 percent).

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    Headline inflation increases by 10.3pc in July 2019

  • Simplified tax regime for non-residents approved: Dr. Hafeez Shaikh

    Simplified tax regime for non-residents approved: Dr. Hafeez Shaikh

    ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday approved a simplified tax regime to facilitate the non-resident companies for investment in the local capital market.

    Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance said that the ECC had approved a simplified tax regime to facilitate the non-resident companies for investment in the local capital market.

    Dr. Abdul Hafeez Shaikh said that these incentives will increase the foreign exchange inflows and reserves of the country.

    A statement issued after the ECC meeting stated that the meeting has approved separate proposals for simplification of tax regime for non-resident companies investing in the local debt market, revision of cess rate on tobacco for the year 2019-2020 and payment of outstanding amount of Rs 5.85 billion as gas subsidy to the fertilizer industry.

    The approvals were given at a meeting of the ECC which met here at the Cabinet Block with Adviser to the Prime Minister on Finance & Revenue Dr. Abdul Hafeez Shaikh in the chair.

    The ECC was also briefed on the wheat situation in the country and it was pointed out that while prices were stable in most parts of the country, there were certain areas and places such as Karachi where the wheat and flour prices had escalated.

    The ECC directed the Ministry of National Food Security and Research to sit down with all stakeholders and ensure that the situation does not get out of hands and supply of wheat and flour at regular prices is ensured.

    The ECC also considered a proposal by the Ministry of Energy for application of quarterly adjustment notified on 1st July 2019 to the zero rated industrial consumers and for it to be charged over and above the notified tariff for zero rated industrial consumers at 7.5 cents as well as a proposal to the effect that Financial Cost Surcharge, Neelum Jhelum Surcharge, taxes and positive fuel adjustments would not be part of billing to zero rated sector industrial consumers and would be part of subsidy claims to be picked by the Government of Pakistan.

    The Committee discussed the pros and cons of the proposal in view of its financial implications and asked the Finance Division to hold a meeting with the stakeholders, including the Power Division, Commerce Division and Industries & Production Division and resubmit the case to ECC with solid proposals.

    The ECC also approved proposals submitted by the Ministry of Finance for simplification of tax regime for non-resident companies investing in the local debt market with a view to deepening the country’s capital markets, reducing the cost of debt for the government and increasing foreign exchange inflows and reserves.

    The new tax regime as approved by the ECC would apply to the non-resident companies having no permanent presence in Pakistan.

    The ECC also took up a proposal for extension and rehabilitation of gas network in the oil and gas producing districts of Khyber Pakhtunkhwa and referred the matter to the Development Working Party headed by the Secretary Petroleum for an appropriate decision.

  • Two cellular companies pay $449 million as license renewal fees

    Two cellular companies pay $449 million as license renewal fees

    ISLAMABAD: The government has received $449 million from two cellular companies as license renewal fees.

    “The government of Pakistan has received payment amounting to $224.6 million and Rs 35.262 billion (equivalent of $224.6 million) from two cellular companies respectively as their license renewal fee,” says a press statement issued by the Ministry of Finance on Tuesday.

    According to the statement, the license renewal fee of telecom companies collected by Pakistan Telecommunication Authority is a significant source of non-tax revenue for the federal government.

    “The government received Rs 35.2 billion from Jazz and US$ 224.6 million from Telenor in partial settlement for their cellular license renewal,” Dr. Hafeez Shaikh, Advisor to the Prime Minister on Finance, said in a twitter message.

    “Good news for the telecom industry and revenue collection of the federal government,” he added.

    Due to stay orders given by the apex court, the collection of this renewal fee from two telecom companies which was budgeted in previous fiscal year had been delayed.

    However, with the efforts of the Adviser to Prime Minister Dr Abdul Hafeez Shaikh, his team led by Secretary Finance and Pakistan Telecommunication Authority, due payment from the two companies has now been received by the government.

  • Govt. decides immediate release of Rs22 billion tax refunds: Dr. Hafeez Shaikh

    Govt. decides immediate release of Rs22 billion tax refunds: Dr. Hafeez Shaikh

    ISLAMABAD: The government has decided to released tax refunds amounting Rs22 billion immediately for the promotion of economic activities, Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance said in a twitter message on Monday.

    According to him the government had taken important decision on tax refunds for the promotion of economic activities in the country and to provide liquidity support to businesses.

    He said that it was decided to issue Rs22 billion of verified sales tax refunds for all years to be released immediately.

    Further, Rs1.7 billion of income tax returns (up to Rs100,000) for all years to be released immediately.

    The verification process for other outstanding refunds to be expedited, he said.

    He also announced that income tax refunds between Rs1 billion to Rs5 billion for all years will be paid next month.

  • PM’s economic team to hold dialogues with business community for growth

    PM’s economic team to hold dialogues with business community for growth

    ISLAMABAD: The economic team of the Prime Minister will hold dialogues with business community to take input for economic stability and growth.

    A meeting decided this on Friday to promote dialogue with the business community to seek their views on increasing the pace of growth and achieving economic stability.

    Prime Minister Imran Khan chaired the meeting of the economic team at PM’s Office.

    The meeting was attended by Muhammad Hammad Azhar Minister for Economic affairs, Makhdoom Khusro Bakhtiyar Minister for Planning & Development, Omar Ayub Khan Minister for Power, Muhammad Mian Somro Minister for Privatization, Advisor on Finance Dr. Abdul Hafeez Sheikh, Advisor on Commerce Abdul Razak Dawood, Adviser on Institutional Reforms Dr. Ishrat Hussain, SAPM Dr. Sania Nishtar, SAPM Nadeem Babar, SAPM Dr. Firdous Ashiq Awan, Chairman Board of Investment Syed Zubair Gilani, Chairman FBR Syed Shabbar Zaidi, Deputy Chairman Planning Commission Jehanzeb Khan and senior officials of the government.

    The prime minister directed that promotion of SMEs must be focused to enable such enterprises to flourish in the country.

    The meeting reviewed the current economic situation and initiatives of the government to improve the business climate, increase exports, reduce current account deficit and stabilizing the economy.

    It was noted that current financial year since July 2019 has commenced on a positive note. Exports have registered an increase and the Current Account Deficit has been reduced by 31 percent.

    It is expected that the fuel prices will also decrease on 1st September, 2019.

    The international financial institutions such as the World Bank and Asian Development Bank have restored budgetary support.

    The meeting was informed that ECNEC also approved Rs. 579 billion of projects in agriculture, water and infrastructure sectors including mass-transit projects for Karachi.

  • Foreign exchange reserves increase by $25 million to $15.63 billion

    Foreign exchange reserves increase by $25 million to $15.63 billion

    Karachi – The State Bank of Pakistan (SBP) has reported an increase of $25 million in the country’s liquid foreign exchange reserves, bringing the total to $15.63 billion for the week ending August 23, 2019.

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  • Fiscal deficit balloons to record 8.9 percent in 2018/2019

    Fiscal deficit balloons to record 8.9 percent in 2018/2019

    Pakistan’s fiscal deficit surged to an unprecedented level of 8.9 percent of Gross Domestic Product (GDP) during the fiscal year 2018-2019, as per the latest data released by the federal finance ministry on Tuesday.

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  • Total number of SECP registered companies increases to 102,864

    Total number of SECP registered companies increases to 102,864

    ISLAMABAD: The total number of registered companies with Securities and Exchange Commission of Pakistan (SECP) has increased to 102,864 by end of July 2019, said a statement on Saturday.

    The SECP said that in July it registered 1,525 new companies. As compared to the corresponding month of last financial year, it represents a growth of 41 percent raising the number of total registered companies to 1,02,864.

    The massive increase is the result of series of recent reform measures undertaken by the SECP.

    Around 71 percent companies were registered as private limited companies, while around 25 percent were registered as single member companies.

    Four percent were registered as public unlisted companies, not for profit associations, foreign companies and Limited Liability Partnership (LLP) whereas 96 percent of these companies were registered by using online facility including applications received from overseas subscribers through eService and around 49 percent of these companies were registered on same day.

    The SECP has also upgraded its browser’s compatibility and now in addition to Internet Explorer, other browsers like Google Chrome, Mozilla Firefox and Microsoft Edge, Safari and Opera can be used for name reservation and company incorporation process.

    The trading sector took the lead and 266 new companies are registered in this sector, construction with 186, Information Technology with 183, Services sector with 177, Tourism with 69, Real Estate Development with 59, Food and Beverages with 56, Engineering with 44, Education with 43, Marketing and Advertisement with 40, Textile with 39, Corporate Agricultural Farming with 36, Pharmaceutical with 30, Healthcare with 29, Transport with 28, Chemical with 27, Mining and quarrying with 24, Communication with 21, Auto and Allied with 18, Fuel and Energy with 16, Logging with 14, Broadcasting and Telecasting with 12, Paper & Board, and Power Generation with 11 each and 86 companies were registered in other sectors.

    Foreign investment has been reported in 58 new companies. These companies have foreign investors from, Australia, Austria, Canada, China, Denmark, Germany, Hong Kong, Iran, Italy, Korea South, Norway, Saudi Arabia, Serbia, Sweden,, Turkey, the UAE the UK and the US.

    The highest numbers of companies, i.e. 603 were registered in Company Registration Office-Islamabad, followed by 378 and 283 companies registered in Lahore and Karachi respectively.

    The Company Registration Offices in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta, and Sukkur registered, 100, 76, 41, 27, 10 and 7 companies, respectively.