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  • Petroleum prices in Pakistan for next 10 days; what next?

    Petroleum prices in Pakistan for next 10 days; what next?

    ISLAMABAD: Following are petroleum prices in Pakistan during next 10 days will or November 30, 2022 if those are not changed earlier:

    The price of petrol shall be Rs224.80 per liter; high speed diesel Rs235.30 per liter; kerosene oil Rs191.83; and light diesel oil Rs186.50 per liter.

    The government likely to review petroleum prices on November 30, 2022 for next fortnight starting from December 01, 2022.

    In the latest review on November 15, 2022 the government decided to keep the prices unchanged for the fortnight ending November 30, 2022.

    READ MORE: Petroleum prices in Pakistan for next fortnight effective from November 16, 2022

    It was third straight announcement to keep the prices of petroleum products unchanged. Previously, on September 30, 2022 the government made changes in petroleum prices.

    Experts said that the rise in petroleum prices were imminent in the next review as the government was under immense pressure from the IMF to impose sales tax on petroleum products.

    At present the government adopted a policy to keep zero sales tax on petroleum products instead flat rate of 17 per cent. Furthermore, the government also committed to apply petroleum levy to generate more revenue for curtailing budget deficit.

    READ MORE: Petroleum prices in Pakistan effective from November 01, 2022

    Besides, the exchange rate is again showing a deterioration in rupee value against the dollar. The US dollar continued to make gain for seventh straight session against the Pakistani Rupee (PKR) on November 21, 2022 and reached PKR 223.66 in the interbank foreign exchange market.

    The latest import data showed that the petroleum prices were on the higher sides as the country spent more money for import of lesser quantity of petroleum products.

    READ MORE: Pakistan keeps petroleum prices unchanged from October 16, 2022

    The imports of petroleum products recorded a decline 1.75 per cent to $2.84 billion during July – October of fiscal year 2022/2023 as compared with $2.89 billion in the corresponding period of the last fiscal year.

    However, import of petroleum crude recorded an increase of 6.61 per cent to $1.73 billion during the period under review as compared with $1.62 billion in the corresponding period of the last fiscal year.

    READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022

    Interestingly, quantities of both the segments fell 34.43 per cent and 23.26 per cent during the first four months of the current fiscal year, showing surge in prices of the international prices.

    Although the present government has kept the prices during last three review under political pressure. But considering the present scenario of fiscal deficit and IMF pressure the government may take tough decision in coming days.

  • Probe initiated into tax information leaks of COAS family members

    Probe initiated into tax information leaks of COAS family members

    Islamabad: The Federal Finance Ministry has launched a probe into the unauthorized disclosure of tax information pertaining to the family members of General Qamar Javed Bajwa, Chief of Army Staff (COAS), a statement confirmed on Monday.

    (more…)
  • SBP suspends two exchange companies namely Orient and Best Way in latest action

    SBP suspends two exchange companies namely Orient and Best Way in latest action

    KARACHI: State Bank of Pakistan (SBP) on Friday suspended authorization of two exchange companies for serious violation of regulatory environment.

    The central bank suspended the authorization of M/s Orient Exchange Company-B (Pvt) Limited and M/s Best Way Exchange Company-B (Pvt) Limited.

    READ MORE: Poll suggests SBP to keep benchmark policy rate unchanged at 15pc

    The SBP suspended the companies for three months due to serious violations of regulatory instructions.

    SBP has advised both the companies to strengthen their Internal Control Functions and submit a report, of corrective measures to be taken in this regard, to SBP.

    Both Exchange Companies, their Head Offices, all branches/outlets have been restricted from undertaking any kind of business activity during the suspension period.

    The central bank had initiated harsh action against the exchange companies in order to ensure legal mode of transactions for foreign currencies.

    REAR MORE: Action against banks for overcharging on LCs by month-end

    On October 27, 2022, the SBP suspended the authorization of M/s Mega Currency Exchange Company – B (Pvt) Limited.

    Similarly, on September 13, 2022, the central bank suspended the authorization of two Exchange Companies, namely, Swiss International Exchange Company-B (Pvt.) Limited and Great Union Exchange Company-B (Pvt.) Limited.

    On March 25, 2022, the SBP suspended with immediate effect the authorization of an Exchange

    Company namely M/s Noble Exchange International (Pvt) Limited till further orders for violation of SBP rules and regulations.

    Recently, the SBP and Federal Investigation Agency (FIA) have agreed to take joint action against illegal exchange companies.

    It was agreed by the both that concerted joint effort is required to apprehend and implicate the illegal foreign exchange operators and speculators across the country.

    READ MORE: SBP introduces reporting system for illegal foreign exchange activity

    SBP and FIA have jointly initiated action against illegal foreign exchange operators in Pakistan. To this effect, joint teams from SBP and FIA shall identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market.

    The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses across Pakistan.

    READ MORE: Pakistan remittances decline by 15.7% in October 2022

    Banks and Exchange Companies are authorized by the SBP to carry out Foreign Exchange business in Pakistan. Involvement of any person or entity, other than banks and Exchange Companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947. The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rate.

  • Pakistan establishes directorate to detect nuclear material at customs stations

    Pakistan establishes directorate to detect nuclear material at customs stations

    ISLAMABAD: Pakistan has established a directorate for detection of nuclear material and radiation at customs stations.

    In this regard Federal Board of Revenue (FBR) issued SRO 2047(I)/2022 to notify functions, jurisdiction and powers of the Directorate General of National Nuclear Detection Architecture (NNDA).

    READ MORE: FBR gathers dual nationality information of customs officials

    The Directorate-General of NNDA shall be responsible for enforcement of all the international agreements, treaties, conventions, domestic laws, rules and procedures relating to radiation and nuclear material detection with reference to cross border movement of persons and international or bi-lateral cargo through sea, land border stations and airports and domestic laws, rules and procedures relating to inland movement of cargo and persons, through the respective Directorates.

    READ MORE: Sales tax return lacuna traps taxpayers: FBR offices issue show cause notices

    The Directorate-General of NNDA shall also supervise functioning of the Directorates, furnish policy input to the Board on matters relating to designing and implementation of the nuclear detection architecture and maintain liaison with all stakeholders.

    The Directorate-General of NNDA shall be based at Islamabad, headed by the Director General, assisted by two Deputy Directors General one each at Islamabad and Karachi and the Director (HQ), Islamabad.

    READ MORE: Baggage rules amended for lowering cash limit for outbound passengers

    The Directorate-General of NNDA shall have its regional offices at Karachi, Lahore, Peshawar and Quetta. The Director General shall report to the Chairman, Federal Board of Revenue, Islamabad.

    All Directorates of the DirectorateGeneral of NNDA shall be headed by a Director and shall be assisted by Additional Directors, Deputy Directors, Assistant Directors, Supervisors, Assistant Supervisors, Radio Portal Monitor (RPM) Operators, Radio Portal Monitor (RPM) Technicians, or officers with any other designation and officials of Customs, as are required.

    READ MORE: FBR halts POS prize scheme

    The concerned officers and officials of the Directorate-General of NNDA shall exercise the respective powers of the appropriate officer conferred under the Act and rules made thereunder for discharge of the functions and duties specified in this Notification.

  • Baggage rules amended for lowering cash limit for outbound passengers

    Baggage rules amended for lowering cash limit for outbound passengers

    KARACHI: Federal Board of Revenue (FBR) on Wednesday notified draft rules to amend Baggage Rules for lowering cash limit for outbound passengers.

    The FBR issued SRO 2043(I)/2022 to make amendments in the Baggage Rules, 2006. The cash limit has been lowered to $5,000 per person per visit from $10,000.

    READ MORE: SBP limits cash up to USD 5,000 taking out of Pakistan

    According to the proposed rules, any persons travelling abroad (except to Afghanistan) is allowed to take out of Pakistan US Dollar or equivalent thereof in other foreign currencies as per the limits given below:

    The cash limit per visit per person shall be $5,000 for a person 18 years and above (adults). The annual limit per person shall be $30,000.

    The cash limit per visit per person shall be $2,500 for a person below 18 years (minors). The annual limit per person shall be $15,000.

    READ MORE: FBR halts POS prize scheme

    The FBR further said that foreign currency cash limit for passengers travelling to Afghanistan will be: maximum limit per person per visit shall be $1,000. The annual limit per person shall be $6,000.

    The FBR introduced further amendments to the Baggage Rules, according to which the annual limits for outbound passengers for the respective countries will be as per Tables ‘A’ and ‘B’ for a calendar year starting from the year 2023.

    However, for calendar year 2022, the existing annual limits in vogue before the issuance of this notification will continue to be effective till December 31, 2022.

    READ MORE: Tax on persons receiving dividends in Pakistan

    Any person taking foreign currency or any other prohibited or restricted item out of Pakistan shall file a declaration in the tbiin as set out in Appendix-C, before or at the time of departure, electronically in the WeBOC or pass track or manually at the airport.

    The incoming passenger when in possession of foreign currency exceeding US $ 10,000 or equivalent, or any other prohibited or restricted item, shall also file a declaration in the Form as set out in Appendix-C.”; and (3) in Appendix “C”, for the DECLARATION, the following shall be substituted, namely:-

    “DECLARATION

    Are you carrying any of the following goods?

    (a) Prohibited or restricted goods such as arms & ammunitions, narcotics, psychotropic substances or satellite phones etc.?

    (b) Gold and precious metals, jewelry, precious or semi-precious stones.

    READ MORE: Direct tax collection up 41% in four months of current fiscal year: FBR

    (c) Foreign currency in US $/ Bearer Negotiable Instrument or equivalent:

    1. For outbound passengers to all countries taking out foreign currencies; and

    2. Incoming passengers bringing into Pakistan amount exceeding US $ 10,000 or equivalent.

    Any other items requiring declaration before Customs.

    “I declare that t e information furnished by me is correct and in the event of its being incorrect, I hold myself liable for such action as deemed fit under the Foreign Exchange Regulation Act, 1947 and the Customs Act, 1969.” – Signature of the Passenger

  • Petroleum prices in Pakistan for next fortnight effective from November 16, 2022

    Petroleum prices in Pakistan for next fortnight effective from November 16, 2022

    ISLAMABAD: The government of Pakistan on Tuesday decided to keep the petroleum prices unchanged for next fortnight starting from November 16, 2022.

    It was third straight announcement to keep the prices of petroleum products unchanged. Previously, on September 30, 2022 following changes in petroleum prices were announced:

    The rate of petrol has been reduced by Rs12.63 per liter to Rs224.80 from Rs237.43.

    READ MORE: Petroleum prices in Pakistan effective from November 01, 2022

    The price of high speed diesel has been cut by 12.13 per liter to Rs235.30 from Rs247.43.

    The rate of Kerosene oil has been slashed by Rs10.19 to Rs191.83 from Rs202.02.

    The price of light diesel oil has been reduced by Rs10.78 to Rs186.50 from Rs197.28.

    The government has taken the latest decision amid challenges including long march initiated by leading opposition party and rising benchmark Brent crude rates in international markets.

    The present coalition government led by PML-N is under immense pressure since coming into power in April 2022. This government is mainly criticized for sky rocket prices of all essential items bringing inflation to record levels. The present government had opportunity to attract masses by lowering petroleum prices.

    READ MORE: Pakistan keeps petroleum prices unchanged from October 16, 2022

    On the other hand, Imran Khan, Chairman, Pakistan Tehreek I Insaaf (PTI) launched long march on October 28, 2022 from Lahore demanded the present government to announce general election as the country on the brink of default and masses were witnessing the brunt of high prices.

    The present government has annoyed people through its last decision to keep the prices of petroleum products unchanged. Experts had opinion that the government had room to give benefit by slashing the prices.

    Pakistan is the net importer of petroleum products to meet the domestic demands. Oil import bill of the country went up to $4.86 billion during first quarter (July – September) of the current fiscal year as compared with $4.59 billion in the corresponding quarter of the last year.

    READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022

    On the other hand the rupee once against started depreciation due to political instability and falling foreign exchange reserves. Although, the SBP recently received $1.17 billion from the International Monetary Fund (IMF) to buffer its foreign exchange reserves and support the local currency. Yet the scheduled repayment gradually dry to foreign exchange reserves position.

    Most recently, the SBP again received $1.5 billion from the Asian Development Bank (ADB) to strengthen the foreign exchange reserves position. However, the repayment pressure and rising political noise the rupee unable to show resistance against the dollar.

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    READ MORE: Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

  • Pakistan petroleum prices to go up with sales tax imposition

    Pakistan petroleum prices to go up with sales tax imposition

    The prices of petroleum products in Pakistan will go up with the imposition of sales tax, which presently at zero per cent.

    Analysts AKD Research Tuesday stated that with the IMF consistently conveying concerns over possible shortfall on account of petroleum development levy (PDL), the government is looking towards a contingency plan by taking up additional taxation measures, for one, imposing full 17 per cent general sales tax (GST) on petroleum products.

    READ MORE: SSGC stops gas supply to industries under load management plan

    To note, sales tax collection from the previous fiscal year stood Rs107 billion, against Rs235 billion in the preceding fiscal year, reflecting a decrease of 54 per cent.

    With petroleum products sales remaining robust during fiscal year 2021-2022, the halving of the collection was due to sales tax being effectively zero during the second half of the fiscal year, since mid-January more specifically.

    READ MORE: Pakistan has sufficient stock of fuel to meet domestic demand

    Assuming moderate 8 per cent imposition (Rs16-20 per liter) of sales tax on retail fuel products, the government could fetch additional around Rs30 billion revenue monthly at these rates.

    Furthermore, the government is likely to take a major hit in the non-tax revenue department as well i.e. PDL as retail offtakes have continued to decline during first four months of the current fiscal year, down 22 per cent year on year (YoY).

    READ MORE: ECC approves raising petroleum levy to Rs50 per liter on RON 95

    Total collection during the four months were estimated at Rs115 billion against the budgeted target of Rs250 billion. To note, annual PDL collection target stands at Rs750 billion (Rs62.5 billion per month).

    Assuming unchanged trends in POL offtakes and similar rates, total PDL collections will end the current fiscal year at Rs350 billion, an overall shortfall of Rs400 billion.

    READ MORE: Petroleum sales decrease by 22% in four months of 2022-2023

    The analysts further said that assuming the government pushes through by imposing further levies/taxes, although inflationary, this target may be more achievable now compared to five months ago, as falling global oil/petroleum prices has given the authorities more space to work with without severely hurting end consumers.

  • SSGC stops gas supply to industries under load management plan

    SSGC stops gas supply to industries under load management plan

    KARACHI: Sui Southern Gas Company (SSGC) on Tuesday suspended gas to local industries for three and a half months effective from November 15, 2022.

    The gas utility in an announcement stated that as part of load management plan, gas supplies to all local industrial customers for their use for power generation are being suspended for three and a half months i.e. from November 15, 2022 to February 28, 2023.

    READ MORE: Pakistan has sufficient stock of fuel to meet domestic demand

    Moreover, 50 per cent reduction in supplies of export industrial units for their power generation shall also be carried out for the same period.

    The SSGC said that the decision had been taken in view of the widening demand and supply gas especially with arrival of winter.

    SSGC implements government of Pakistan’s gas load management plan whereby it gives top most priority to the domestic and commercial sector for supplying gas, especially those living in Balochistan where demand for gas increases manifolds due to space and water heating needs.

    READ MORE: ECC approves raising petroleum levy to Rs50 per liter on RON 95

    “This situation is further compounded by the fact that gas reserves are being fast depleted at an annual rate of 10 per cent that further places pressure on the company’s line pack system,” it added.

    The company said that these closure are in line with the contract already signed between SSGC and each individual industrial consumer that clearly states:

    READ MORE: Petroleum sales decrease by 22% in four months of 2022-2023

    “Gas supply will be provided by the company on ‘as and when available basis’ only during the period from March to November each year. The consumer will make dual firing arrangements to avoid loss of production as and when gas is not available during March to November and also during December to February when the company will keep the consumer’s gas supply disconnected at his cost, each year.”

    READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    The company further said that gas volume curtailed from this management would be diverted to domestic customers for them to cater their enhanced gas loads in context of the winter season.

    “Gas thus saved approximately 160 mmcfd gas thus saved will then be diverted to Balochistan where gas serves as lifeline for the majority of the population.”

  • Pakistan organizes first international housing expo next month

    Pakistan organizes first international housing expo next month

    ISLAMABAD: Pakistan is organizing first international housing expo to be held in Islamabad next month.

    The housing expo will be jointly organized by the federal ministry of housing and works and Islamabad Chamber of Commerce and Industry from December 08 to 12 this year. Prime Minister Shehbaz Sharif will inaugurate the event as Chief Guest.

    A delegation of Islamabad Chamber of Commerce and Industry (ICCI) led by its President Ahsan Zafar Bakhtawari held a meeting with Iftikhar Ali Shallwani, Secretary Ministry of Housing and Works here Monday.

    The two sides discuss and agreed to finalize the arrangements for organizing the first International Housing Expo in Convention Centre, Islamabad.

    Speaking at the occasion, Iftikhar Ali Shallwani, Secretary, Ministry of Housing and Works said that Prime Minister Shehbaz Sharif is keen to promote affordable housing in Pakistan and he will inaugurate the Expo as Chief Guest.

    He said that all the major international and national developers, builders and real estate enterprises would be invited to display their projects in the Expo. He said that the Expo will help in attracting local and foreign investment to Pakistan and revive the economic activities in the country.

    He said that the government plans to provide affordable housing to low income people and the Expo will make positive progress towards this goal.

    He said that sessions on housing needs (realities, options, action), low cost housing, funding and financing frameworks for housing, regulation for housing sector, rehabilitation, climate resilient housing, public-private partnership and other topics will also be organized on the sidelines of the Expo.

    He hoped that the collaboration between the Ministry and the ICCI for the forthcoming IHE-2022 would be helpful in making the Expo a landmark event.

    Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce and Industry in his remarks said that the housing and construction sector stimulates the business activities of over 50 allied industries and organizing the Housing Expo will boost business activities in all sectors of the construction industry. It would also generate a lot of employment and improve the economy.0

    He said that many investors are interested in construction of high rise buildings in Islamabad and urged the Capital Development Authority (CDA) to amend its building bylaws to encourage vertical constructions, which would offer the best solution to tackling the affordable housing options in the federal capital and across the country.

    He urged that FBR to give at least one-year extension to the ongoing construction projects under the amnesty scheme of the previous government for their smooth completion.

  • State Bank, NBP to withdraw petitions in Riba case: Ishaq Dar

    State Bank, NBP to withdraw petitions in Riba case: Ishaq Dar

    ISLAMABAD: Finance Minister Senator Muhammed Ishaq Dar Wednesday said that State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) will withdraw their petitions from the Supreme Court of Pakistan against the judgment of Federal Shariat Court in which the Court had ordered implementation of interest-free (Riba free) banking system in the country.

    READ MORE: KCCI demands implementation of Riba free banking

    He said that in this regard he held several meetings and detailed discussions with the SBP Governor and under the special directives of Prime Minister, it was decided that both the SBP and NBP would withdraw their petitions against the decision.

    He said that the government would also expedite its efforts to introduce Shariah compliant banking system in the country for rapid growth and promotion of Islamic bank and finance.

    READ MORE: SBP seeks Supreme Court guidance on Riba case judgement

    He further informed that during 2013-2018 several steps were being taken to promote Islamic economic system and a special committee comprising on Islamic scholars were also formed, adding that Islamic Banking system also observed significant growth and progress at that time.

    READ MORE: IPS demands implementation of court judgment on Riba

    However, he said that from last few years the sector was completely neglected and no further progress was witnessed, adding that promotion of Islamic economic system and interest free banking was the top priority of incumbent government

    He said that government was also determined to overcome all the challenges faced for introducing interest free banking system and it will take all possible measures to take forward the interest free banking and economy for the prosperity of nation.

    READ MORE: Court judgment: Riba is Haram in any form