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.

  • Gas price hike report baseless: Musadiq Malik

    Gas price hike report baseless: Musadiq Malik

    ISLAMABAD: Minister of State for Petroleum Musadiq Malik on Friday addressed in a news conference about the baseless speculations regarding the increase in prices of gas.

    READ MORE: Govt. halts gas supply to export industry: APTMA

    While addressing in a news conference he said, we have just proposed new slabs to protect the people with low income while capable people will pay just 50 to 60 percent of the real price of gas.

    READ MORE: FBR exempts sales tax on oxygen gas import

    The state minister also said according to newly proposed prices, fifty percent of the consumers will pay the existing amount or less than that for gas.

    READ MORE: OGDCL discovers oil, gas reserves in Sindh

    He added that our every step is aimed at protecting poor segment of society and for this purpose, we have proposed subsidy for those consumers who use gas for just cooking and they are fifty percent of total consumers.

    READ MORE: OGDCL declares over 63% net profit for 1HFY22

  • Pakistan records 33.66% rise in prices of essential items

    Pakistan records 33.66% rise in prices of essential items

    KARACHI: Pakistan has recorded a massive increase of 33.66 per cent in prices of essential items by week ended July 06, 2022 when compared with same week last year, according to official data released on Friday.

    Pakistan Bureau of Statistics (PBS) said that the inflation based on Sensitive Price Indicator (SPI) recorded 33.66 per cent increase on YoY basis for week ended July 06, 2022.

    READ MORE: Petroleum prices in Pakistan push inflation 13-year high

    According to the bureau, the year on year trend depicts an increase of 33.66 per cent, Diesel (141.46 per cent), Petrol (119.61 per cent), Onions (101.98 per cent), Pulse Masoor (88.16 per cent), Vegetable Ghee 1 Kg (83.03 per cent), Cooking Oil 5 litre (79.29 per cent), Mustard Oil (77.60 per cent), Vegetable Ghee 2.5 Kg (74.87 per cent), Washing Soap (57.43 per cent), Gents Sponge Chappal (52.21 per cent), Pulse Gram (51.80 per cent), LPG (49.11 per cent), Tomatoes (44.71 per cent), Garlic (43.23 per cent) and Chicken (41.09 per cent).

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    While major decrease observed in the prices of Chillies Powdered (43.42 per cent), Sugar (12.57 per cent), Pulse Moong (3.23 per cent) and Gur (2.57 per cent).

    The SPI for the week ended on July 6, 2022 recorded an increase of 1.32 per cent. Increase observed in the prices of food items, Garlic (5.06 per cent), Potatoes (2.57 per cent), Vegetable Ghee 2.5 Kg (1.64 per cent), Cooked Daal (1.50 per cent), Wheat Flour (1.46 per cent), Pulse Gram (1.32 per cent), Tea Prepared (1.09 per cent) and Pulse Masoor (1.02 per cent), nonfood items Petrol (6.36 per cent), Diesel (5.06 per cent) and LPG (2.33 per cent), with joint impact of (0.85 per cent) into the overall SPI for combined group of (1.32 per cent).

    READ MORE: Average inflation estimated up to 12% in FY22

    On the other hand, decrease observed in the prices of Tomatoes (5.12 per cent), Onions (1.03 per cent), Mustard Oil (0.70 per cent), Bananas (0.43 per cent) and Pulse Mash (0.12 per cent).

    During the week, out of 51 items, prices of 30 (58.82 per cent) items increased, 05 (9.81 per cent) items decreased and 16 (31.37 per cent) items remained stable.

    READ MORE: SBP jacks up policy rate by 6.75% to 13.75%

  • Pakistan’s forex reserves deplete to $15.74 billion

    Pakistan’s forex reserves deplete to $15.74 billion

    KARACHI: The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by week ended June 30, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.

    READ MORE: State Bank’s reserves dip to 32-month low at $8.238 billion

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $11.486 billion.

    The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by week ended June 30, 2022 as compared with $10.309 billion a week ago.

    READ MORE: Pakistan’s central bank reserves shrink to one month import cover

    The central bank attributed the decline in foreign exchange reserves to external debt repayments.

    It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

    READ MORE: SBP’s forex reserves slip 2½-year low to $9.226 billion

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.33 billion.

    The commercial banks held foreign exchange to the tune of $5.926 billion by week ended June 30, 2022 when compared with $5.887 billion a week ago, showing an increase of $59 million.

    READ MORE: SBP’s forex reserves fall two-year low to $9.72 billion

  • Pakistan allows release of banned items stuck up at ports

    Pakistan allows release of banned items stuck up at ports

    ISLAMABAD: Pakistan Tuesday allowed one-time release of consignment carrying imported goods that were banned by the government on May 19, 2022 and stuck up at ports.

    The country through SRO 598(I)/2022 imposed a ban on import of luxury and non-essential items in order to discourage outflow of dollars and support balance of payment.

    Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

    READ MORE: SBP makes permission mandatory for motor car import

    In this regard the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

    Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

    In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

    Ministry of Commerce presented another summary on suspension of import conditions contained in import policy order 2022 with regard to import of timber/wood.

    In view of hardship case of timber importers as the consignments were supplied against contracts months ago and the shipments have already arrived, the ECC decided that date of implementation of Import Policy Order 2022 regarding import of timber and wood falling under HS Codes 4401 to 4409 may be suspended till August 31, 2022 i-e for the bills of Lading issued till August 31, 2022.

    The ECC also approved another summary of Ministry of Commerce to amend paragraph 3(1) of the Import policy Order 2022 to allow import of goods of Afghan origin against Pak Rupee and without the requirement of Electronic Import Form (EIF) for a period of one year, subject to the condition that Afghan exporters will provide a Certificate of Origin issued by Afghan Customs proving that the goods have originated from Afghanistan.

    Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

    READ MORE: CMOs worry over power outages, 100% cash margin on imports

    Federal Minister for Planning, Development and Special Initiatives Mr. Ahsan Iqbal, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Minister of State for Petroleum Division Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

    Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of second international wheat tender 2022 opened on 1st July, 2022 for 500,000 MT.

    The ECC considering the lower trend of wheat in the international market approved the lowest bid offer of M/s Cargill Int. PTE /Cargill Agro Foods Pakistan @ US$ 439.40/MT for 110,000 MT +/- 5% MOLSO to the extent of 500,000 MT.

    Ministry of National Food Security & Research submitted a summary on WPF operation- purchase/ reservation of 120,000 metric tons of wheat for Afghanistan in the year 2022-23.

    In view of the situation in Afghanistan and on humanitarian ground, the ECC approved the request of the WFP for purchase/ reservation of 120,000 MT of wheat from the imported wheat stock of PASSCO on the latest import price.

    The amount of supplied wheat along with cost and incidentals would be charged in US dollars. The wheat will be locally grinded into wheat flour and will be supplied to Afghanistan by WFP, subject to relaxation of ban on the export of flour to the extent of the instant proposal of 120,000 MT of wheat.

    READ MORE: KCCI demands release of stuck up containers

    Ministry of National Food Security & Research presented another summary on the declaration of “National Disease Emergency” on account of Emergence of Lumpy Skin disease in Pakistan. The ECC after detailed discussion directed Ministry of National Food Security & Research to prepare a cost sharing plan after convening a meeting with concerned provincial secretaries and NDMA.

    Ministry of Industries and Production submitted a summary on continuation of PM’s relief package, 2020, Sasta Atta initiative for KPK & expansion of Utility Stores network across Pakistan.

    The ECC decided to continue subsidy on five essential commodities with direction to M/o I & P to work out feasible proposal on subsidy programme keeping in mind the financial implications.

    The ECC also approved a summary submitted by Ministry of Information Technology and Telecommunication on constitution of Auction Advisory Committee to oversee spectrum auction(s) for next generation mobile services (NGMS) in Pakistan.

    The Committee will be headed by Federal Minister for Finance and Revenue. The ECC also approved supplementary grant in favor of Economic Affairs Division amounting to Rs. 193.006 Billion for foreign loan repayments.

  • Pakistan’s import bill records over $80 bn in 2021/2022

    Pakistan’s import bill records over $80 bn in 2021/2022

    KARACHI: The total import bill of Pakistan has crossed a record $80 billion mark, showing 42 per cent increase during fiscal year 2021/2022, according to official data released on Tuesday.

    The total import bill of the country increased to $80.02 billion during fiscal year 2021/2022 as compared with $58.38 billion in the preceding fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

    READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months

    The exports of the country also posted an increase of 25.51 per cent to $31.76 billion during the fiscal year under review as compared with $25.30 billion in the preceding fiscal year.

    Pakistan posted a record trade deficit of $48.26 billion in the fiscal year 2021/2022 as compared with the deficit of $31.07 billion in the preceding year, showing an expansion in deficit of 55.29 per cent.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    The import bill in June 2021 increased by 14 per cent to $7.72 billion when compared with $6.77 billion in the month of May 2022. It was increased by 21.57 per cent when compared with $6.35 billion in June 2021.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    The exports posted an increase of 10 per cent to $2.88 billion in June 2022 when compared with $2.63 billion in May 2022. The exports increased by 5.83 per cent when compared $2.73 billion with June 2021.

    READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

  • Petroleum prices in Pakistan push inflation 13-year high

    Petroleum prices in Pakistan push inflation 13-year high

    KARACHI: The continuous rise in petroleum prices in Pakistan have pushed headline inflation up 13-year high at 21 per cent in June 2022.

    (more…)
  • State Bank’s reserves dip to 32-month low at $8.238 billion

    State Bank’s reserves dip to 32-month low at $8.238 billion

    KARACHI: The official foreign exchange reserves of State Bank of Pakistan (SBP) have decreased around 32-month low at $8.238 billion by week ended June 17, 2022, official data revealed on Thursday.

    The official reserves of the central bank fell by $747 million to $8.238 billion by week ended June 17, 2022 as compared with $8.985 billion by week ended June 10, 2022.

    Previously, the foreign exchange reserves of the SBP were seen on November 01, 2019 when those were at $8.358 billion.

    READ MORE: Pakistan’s central bank reserves shrink to one month import cover

    Considering the current official reserves of the State Bank at $8.238 billion, the import cover is only for 1.21 months.

    The central bank attributed the decline in foreign exchange reserves for external debt repayments. However, SBP reserves are expected to increase in coming days on realization of proceeds of China Development Bank (CDB) loan, the central bank added.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021.

    READ MORE: SBP’s forex reserves slip 2½-year low to $9.226 billion

    Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.91 billion by week ended June 17, 2022 from touching the peak on August 27, 2021.

    The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

    The falling foreign exchange reserves also put pressure on the local currency. The Pakistani Rupee (PKR) is also depreciating to record low against the US dollar on daily basis.

    The total foreign exchange reserves of Pakistan have declined to around three-year low at $14.21 billion by week ended June 17, 2022. Previously, the foreign exchange reserves of the country were seen at $14.259 billion by week ended July 5, 2019.

    READ MORE: SBP’s forex reserves fall two-year low to $9.72 billion

    The country’s foreign exchange reserves have fallen by $733 million to $14.21 billion by week ended June 17, 2022 as compared with $14.943 billion a week ago i.e. June 10, 2022.

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.018 billion.

    The foreign exchange held by commercial banks however slightly up by $14 million to $5.972 billion by week ended June 17, 2022 as compared with $5.958 billion a week ago.

    READ MORE: Moody’s changes Pakistan’s outlook to negative

  • Pakistan decides 10% regulatory duty on petrol import

    Pakistan decides 10% regulatory duty on petrol import

    KARACHI: Pakistan has decided to impose regulatory duty at 10 per cent from July 01, 2022.

    The country presented its federal budget 2022/2023 on June 10, 2022 and proposed increase on regulatory duty on various imported goods.

    READ MORE: Penalty amount revised for late filing income tax returns

    The Finance Bill, 2022 suggested levying 10 per cent regulatory duty on import of motor spirit as against existing rate of zero percent.

    Experts at PwC A.F. Ferguson Chartered Accountants said that the notifications for amendments relating to regulatory duty and additional duty are yet to be issued. “The comments are based on ‘Salient Features’ issued with the finance bill,” they added.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    The government also proposed increase in regulatory duty from zero per cent to 10 per cent on other paper, paperboard, cellulose wadding and webs of cellulose fibers.

    Furthermore, the government planned to increase regulatory duty from 10 per cent to 20 per cent on optic fiber cables.

    The Finance Bill also proposed amendments in reduction of regulatory duties, which included:

    Regulatory duty has been proposed to be reduced as follows:

    Case hardening steel from 30 per cent to 20 per cent

    Chrome yellow from 15 per cent to 0 per cent

    The Finance Bill proposed reduction / concessions in customs duty:

    Customs Duty (CD) leviable on the import of following categories of items / sectors is proposed to be exempted for incentivizing the respective sectors:

    READ MORE: Pakistan massively increases taxation on motor vehicles

    – Machinery and capital goods for mechanization of farming including machinery pertaining to irrigation, drainage, harvesting, plant protection etc.

    – Specified raw materials used for manufacturing of LED lights, LED bulbs (including parts thereof) and brush ware.

    – 26 Active Pharmaceutical Ingredients for incentivizing Pharmaceutical manufacturers.

    – Raw materials for manufacture of first aid bandages.

    – Membranes for filtering / purifying water.

    – The drug ‘Grafalon’ and gadget ‘Irisvision’.

    – Raw materials of Ivy leaves extract powders.

    – Motor spirit.

    In addition to CD, Additional Customs Duty (ACD) is also proposed to be exempted on import of the following goods:

    – Raw materials imported by paper sizing industry and chlorinated paraffin wax industry and manufacturers of aluminum conductor composite cores.

    – Stamping foils for manufacturing of optic fiber cables.

    – Aluminum paste and powder imported by the Coating industry.

    – Guts, bladders and stomachs of animals.

    READ MORE: New rates of capital gain tax on disposal of securities

    Reduction in Customs Duty and Additional Customs Duty

    CD leviable on import of following goods is proposed to be reduced:

    – Specified categories of other woven fabrics and artificial flowers / foliage of other materials imported by manufacturers of footwear.

    – High-density fiber (HDF) boards of wood or other ligneous materials

    – Specified fibers of polypropylene.

    In addition to CD, ACD, leviable on import of following goods is also proposed to be reduced:

    – Direct and reactive dyes.

    – Glycerol crude and Glycerol for the coating industry.

    – Goods pertaining to Aluminum, polymers of ethylene, Biaxially Oriented Polypropylene (BOPP) used by the packing industry.

    – Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality imported by manufacturers of filters, other than automotive.

    READ MORE: Pakistan slaps 45% corporate tax on banks

    – Organic composite solvents and thinners imported by manufacturers of Dibutyl Orthophthalates.

    – Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate) and cyanoacrylate.

    – Flavoring powders for food preparation for snacks manufacturers.

  • Prices of essential items surge by 28% in Pakistan

    Prices of essential items surge by 28% in Pakistan

    ISLAMABAD: The prices of essential items have recorded 28 per cent increase Year on Year (YoY) by week ended June 16, 2022, Pakistan Bureau of Statistics (PBS) said on Friday.

    The surge in prices have been seen following the massive increase in prices of petroleum products by the government during last three rounds: first on May 27, 2022; second on June 02, 2022; and the last one on June 15, 2022.

    READ MORE: Prices of essential items rise by 20% on first POL rate jump

    However, the cumulative effect of inflation is expected to be seen in coming weeks.

    The latest Sensitive Price Indicator (SPI) based inflation for the week ended June 16, 2022 has shown massive increase in prices of essential items over the same week last year.

    Following are the rates that have witnessed increase during last one year:

    READ MORE: Pakistan’s headline inflation up by 13.8% in May 2022

    Onions (135.31 per cent), Diesel (132.61 per cent), Tomatoes (117.27 per cent), Petrol (110.16 per cent), Vegetable Ghee 1 Kg (81.76 per cent), Mustard Oil (80.88 per cent), Pulse Masoor (74.77 per cent), Cooking Oil 5 litre (71.52 per cent), Vegetable Ghee 2.5 Kg (68.47 per cent), LPG (60.97 per cent), Garlic (57.72 per cent), Washing Soap (52.73 per cent), Gents Sponge Chappal (52.21 per cent) and Chicken (51.11 per cent).

    There are some other essential items that have witnessed decline in prices on YoY basis:

    Chillies Powdered (43.42 per cent), Pulse Moong (18.06 per cent), Sugar (10.79 per cent), Electricity charges for Q1 (5.85 per cent) and Gur (3.35 per cent).

    READ MORE: Pakistan’s inflation sharply up by 13.4% in April 2022

    The comparison of prices of essential items on week on week basis, showed 3.38 per cent.

    Increase observed in the prices of food items Chicken (12.10 per cent ), Potatoes (6.89 per cent), Cooked Daal (5.90 per cent), Pulse Gram (5.29 per cent) and Cooked Beef (5.19 per cent),non-food items Diesel (28.91 per cent), Gents Sponge Chappal (26.76 per cent), Gents Sandal (15.40 per cent), Petrol (11.43 per cent), Electricity Charges for Q1 (6.63 per cent) and Cigarettes (6.27 per cent), with joint impact of (2.53 per cent) into the overall SPI for combined group of (3.38 per cent).

    On the other hand, decrease observed in the prices of Onions (5.20 per cent), Wheat Flour (2.19 per cent), LPG (1.32 per cent), Bananas (0.83 per cent), Gur (0.45 per cent) and Sugar (0.02 per cent).

    READ MORE: Pakistan’s headline inflation increases by 12.7% in March