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  • Tax reduced on POL products to ease inflation: PM Imran

    Tax reduced on POL products to ease inflation: PM Imran

    Prime Minister Imran Khan on Friday said the government has reduced taxes and duties on petroleum products to ease inflationary pressure.

    The Prime Minister Imran Khan said Pakistan has been put on right course with record exports, tax collection and remittances by the expatriates.

    READ MORE: Pakistan’s sensitive price inflation jumps up 18%

    Addressing a public gathering in Mandi Bahauddin, he said the inflation impacting the common man and the government is trying to ebb away its pressure by reducing taxes and duties on petrol import.

    Imran Khan said for the first time, the government also granted overseas Pakistanis voting right, enhanced farmers’ income, ensured the timely payments to sugarcane farmers.

    READ MORE: Pakistan’s inflation climbs up 24-month high in January

    The prime minister said the government is bringing about an IT revolution in the country as 70% rise in IT exports has been recorded. He also said the government was providing interest free loans to the youth and Rs 1 million health insurance to every family in Punjab.

    READ MORE: January headline inflation may clock near 13%

    Imran Khan said this is just the beginning and we have to make Pakistan a welfare state with Sehat Card being the biggest step towards it.

    He said by March, Sehat Card will be available across Punjab for which provincial government has allocated 400 billion rupees.

    READ MORE: Mini-budget likely to push up inflation: SBP

  • KATI strongly criticizes hike in petroleum prices

    KATI strongly criticizes hike in petroleum prices

    KARACHI: Korangi Association of Trade and Industry (KATI) in a statement on Wednesday strongly criticized the government for the substantial increase in petroleum prices.

    Ms. Maheen Salman, acting president of KATI said that increase in prices of petroleum products by the government more than Rs 12 per liter is unacceptable and unbearable.

    READ MORE: Pakistan raises petrol price to record high at Rs160/liter

    She said that the price of petrol in the history of the country has crossed the highest level of Rs150 liter and reached a PKR 160 per liter which is alarming. Earlier, the price of petrol was beyond the purchasing power of the people.

    Maheen Salman said that due to the policy of the government, the inflation for the lower income group had gone up to 21 percent and now the recent increase in petroleum products will further increase the inflation which will severely affect the middle class and upper-middle-class including the poor.

    READ MORE: Korangi Association flays key policy rate hike

    Acting President KATI said that inflation has broken the back of the low-income group. There are no steps being taken by the government to provide some relief to the poor.

    Maheen Salman further said that the statement of the Finance Minister came out in the assembly that the IMF has strict conditions to withdraw the subsidy from the people.

    READ MORE: Around 65,000 industry workers vaccinated: KATI

    In such a situation, the government is increasing inflation on a daily basis but the means for the increase in revenue are not being created.

    Job opportunities are dwindling, industries are closing, flight of investment is all-time high, so how can the country develop. She appealed to the government to keep the inflation rate in line with the purchasing power of the people.

    READ MORE: KATI seeks precautionary measures before rains

  • NKATI urges PM Imran to reduce petroleum prices

    NKATI urges PM Imran to reduce petroleum prices

    Faisal Moiz Khan, the President of the North Karachi Association of Trade & Industry (NKATI), has expressed deep concerns regarding the recent surge in domestic petroleum prices.

    (more…)
  • Pakistan raises petrol price to record high at Rs160/liter

    Pakistan raises petrol price to record high at Rs160/liter

    ISLAMABAD: Pakistan on Tuesday sharply increased the price of petrol to a new record high level at around Rs160 per liter in the wake of surge in international oil prices.

    According to a statement issued by the Finance Division, the government has announced a massive increase in all the petroleum products effective from February 16, 2022.

    READ MORE; Petroleum prices kept unchanged for next fortnight

    The government increased the rate of petrol by Rs12.03 to Rs159.86 from Rs147.83. The rate of high speed diesel has been enhanced by Rs9.53 to Rs154.15 from Rs144.62. The government increased the price of kerosene oil by Rs10.08 to Rs126.56 from Rs116.48. Similarly, the rate of light diesel oil has been increased b Rs9.43 to Rs123.97 from Rs114.54.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    The finance division in the press release said that the price of petroleum products were showing drastic increase in the international markets and presently are at the highest level since 2014.

    “Despite the unabated increase since the beginning of the year, Prime Minister Imran Khan deferred the last review of petroleum products prices on January 31, 2022 and advised against the summary of Oil and Gas Regulatory Authority (OGRA).”

    READ MORE: Prices of all POL products increased to wish New Year

    In order to provide utmost relief to the consumers, the government levied zero per cent sales tax and reduced petroleum levy rate against the budgeted targets.

    Resultantly, the government is bearing the revenue loss of Rs35 billion (fortnightly) on account of budgeted to existing petroleum levy and sales tax rates.

    READ MORE: Petrol price reduces to Rs140.82 per liter

    The finance division said that in the fortnightly review of petroleum products prices, the Prime Minister has considered the recommendations to increase the prices of petroleum products in line with change in the international oil prices. “Despite the increase in the prices of petroleum products, petroleum levy and sales tax have been kept to the minimum,” it added.

  • FBR announces sharp cut in sales tax on POL products

    FBR announces sharp cut in sales tax on POL products

    ISLAMABAD: The Federal Board of Revenue (FBR) has announced sharp cut in sales tax on supply of petroleum products.

    The FBR on Thursday issued SRO 183(I)/2022 to reduce the sales tax against normal rate of 17 per cent.

    The revenue body previously issued SRO 88(I)/2022 dated January 18, 2022 to change the sales tax rates.

    READ MORE: FBR slashes sales tax rates on petrol, HSD

    According to the SRO 183(I)/2022, the sales tax rate on light diesel oil has been slashed to zero percent from previous 2.7 per cent.

    The sales tax rate on petrol has been reduced to 0.79 per cent from 2.5 per cent. Similarly, the sales tax on high speed diesel has been reduced to 3.17 per cent from 5.44 per cent.

    The sales tax rate on kerosene oil has been slashed to 5.30 per cent from 8.30 per cent.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    The federal government had deferred the increase in prices of petroleum products for next fortnight starting February 01, 2022. A statement issued by the Finance Division stated that the petroleum products were showing substantial increase in the international market and presently trading at highest level since 2014.

    The oil prices have witnessed an increase of 14.5 per cent just in January 2022 in the global market. The existing sales tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets.

    READ MORE: Prices of all POL products increased to wish New Year

    The government is bearing the revenue loss of around Rs30 billion (fortnightly) on account of budgeted to existing petroleum levy and sales tax rates and Rs 260 billion annually due to reduced sales tax rate.

    Despite revenue losses due to rising petroleum prices globally, the Prime Minister of Pakistan has deferred the proposal by OGRA to increase up to Rs. 16.79/Litre in the petroleum product prices and desired that petroleum product prices shall remain the same from 1st February, 2022 as notified earlier on January 15, 2022 for providing maximum relief to the general public.

  • PM Imran, Chinese President reaffirm resolve to build community for shared future

    PM Imran, Chinese President reaffirm resolve to build community for shared future

    ISLAMABAD: Pakistan Prime Minister Imran Khan met Chinese President Xi Jinping at the Great Hall of People in Beijing on Sunday. The two leaders reaffirmed their resolve to building of the Pakistan-China Community for Shared Future in the New Era.

    The Prime Minister renewed his invitation to President Xi Jinping to undertake a visit to Pakistan at his early convenience.

    This was the first meeting of the two leaders since the Prime Minister’s visit to China in October 2019.

    READ MORE: Pakistan, China discuss bilateral economic, trade ties

    The two leaders reviewed the entire gamut of Pakistan-China bilateral cooperation and exchanged views on regional and global issues of mutual interest, in a warm and cordial atmosphere.

    Prime Minister Imran Khan congratulated the leadership and people of China on successful hosting of the 24th Olympic Winter Games in Beijing and extended his best wishes on the Chinese Lunar New Year.

    The Prime Minister underscored that China was Pakistan’s steadfast partner, staunch supporter and Iron Brother. The All-Weather Strategic Cooperative Partnership between Pakistan and China had withstood the tests of times and the two nations firmly stood side by side in realizing their visions and shared aspirations of peace, stability, development and prosperity.

    READ MORE: PM Imran invites Chinese companies to invest in Pakistan

    The Prime Minister briefed President Xi on people-centered geo-economics vision and his Government’s policies for Pakistan’s sustained growth, industrial development, agricultural modernization, and regional connectivity.

    He lauded China’s continued support and assistance to Pakistan’s socio-economic development which had greatly benefitted from the high quality development of CPEC.

    The Prime Minister welcomed increased Chinese investments in CPEC’s Phase-II which centered on industrialization and improving people’s livelihoods. The Prime Minister shared his views with President Xi on growing polarization in the world which threatened unraveling of global developmental gains, and posed serious risks to the developing countries.

    He highlighted that insurmountable challenges like climate change, health pandemics and growing inequalities could only be tackled though unqualified cooperation of all nations in accordance with the purposes and principles of the UN Charter.

    In this regard, he lauded President Xi’s visionary Belt and Road and Global Development Initiatives which called for collective action for sustainable development and win-win outcomes.

    The Prime Minister highlighted that atrocities being perpetrated in the Indian Illegally Occupied Jammu and Kashmir, and the persecution of minorities in India in advancing the Hindutva mindset of RSS-BJP, was a threat to regional peace and stability.

    He added that rapid militarization of India was undermining regional stability.

    Prime Minister Imran Khan highlighted that partnership between Pakistan and China was an anchor for peace and stability in the region and thanked China for its unwavering support to Pakistan’s sovereignty, territorial integrity, independence and national development.

    The Prime Minister also reaffirmed Pakistan’s full support to China on all issues of its core interest. Both leaders acknowledged that a peaceful and stable Afghanistan would promote economic development and connectivity in the region and called on the international community to promptly assist the Afghan people in averting a humanitarian catastrophe.

    Both leaders appreciated the signing of a number of agreements covering industrial cooperation, space cooperation, and vaccine cooperation.

  • Pakistan, China discuss bilateral economic, trade ties

    Pakistan, China discuss bilateral economic, trade ties

    BEIJING: Pakistan Prime Minister Imran Khan held wide-ranging talks with Li Keqiang, Premier of the State Council of the People’s Republic of China on Saturday.

    (more…)
  • Prime Minister Imran kicks off visit to China

    Prime Minister Imran kicks off visit to China

    ISLAMABAD: Prime Minister Imran Khan on Thursday kicked off a four-day visit to China. Prime Minister Imran will attend the ceremony of Winter Olympics and meet the Chinese leadership.

    The prime minister’s delegation included Foreign Minister Shah Mahmood Qureshi, Finance Minister Shaukat Tarin, Planning Minister Asad Umar, Information Minister Chaudhry Fawad Hussain, National Security Adviser Dr Moeed Yousaf, Commerce Adviser Abdul Razak Dawood and Special Assistant on China Pakistan Economic Corridor Khalid Mansoor.

    READ MORE: PM Imran terms exports, tax collection must for growth

    The prime minister besides attending the ceremony of Beijing Winter Olympics will meet President Xi Jinping and Premier Li Keqiang.

    Prior to departure, the accompanying ministers termed the prime minister’s visit to China of great significance.

    Foreign Minister Shah Mahmood Qureshi said PM Khan’s meeting with the Chinese leadership would focus on bilateral strategic partnership, regional matters, and peace and security in South Asia.

    READ MORE: PM Imran Khan announces food subsidy package

    Finance Minister Shaukat Tarin said the prime minister during the visit would propose the Chinese leadership to relocate their industry in Pakistan’s Special Economic Zones for a win-win situation besides extending assistance in agriculture.

    National Security Adviser Dr Moeed Yousaf said the visit would provide an opportunity to discuss ways to improve peace in Afghanistan to end terrorism.

    READ MORE: PM Imran launches landmark Karachi BRTS project

    Commerce Adviser Dawood said the meetings would the Chinese counterparts would focus on some areas of Free Trade Agreement and trade of cement, rice, fruit and vegetables.

    During the visit of PM Khan, a book titled ‘China Pakistan Economic Corridor – Investment Opportunities in Pakistan’ will be presented to the Chinese president, premier and investors.

  • Petroleum prices kept unchanged for next fortnight

    Petroleum prices kept unchanged for next fortnight

    ISLAMABAD: The government has kept the prices of petroleum products unchanged for next fortnight on Monday after Prime Minister Imran Khan rejected the proposals to hike the POL prices.

    Prime Minister Imran Khan Monday rejected proposals to increase the petrol price by Rs 10 per liter and diesel by Rs 14, in the national interest.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    The prime minister said that government would bear the burden of the price hike this time to protect the people from the additional economic burden.

    READ MORE: Prices of all POL products increased to wish New Year

    As the government was striving to avert the burden of inflation from the people, therefore the prime minister deferred the Energy Ministry’s summary despite the fact that the oil prices were increasing worldwide owing to the swelling global inflation.

    Following the decision, the prices of petroleum products will be maintained at: petrol Rs147.83 per liter; high speed diesel (HSD) Rs144.62 per liter; kerosene Rs116.48 per liter; and light diesel oil at Rs114.54 per liter.

    READ MORE: Petrol price reduces to Rs140.82 per liter

    A statement issued by the Finance Division stated that the petroleum products are showing substantial increase in the international market and presently trading at highest level since 2014. The oil prices have witnessed an increase of 14.5% just in last month in the global market.

    The existing Sales Tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets. The Government is bearing the revenue loss of around Rs.30 billion (fortnightly) on account of budgeted to existing PL and ST rates and Rs. 260 billion annually due to reduced ST rate.

    READ MORE: Govt. keeps petroleum prices unchanged

    Despite revenue losses due to rising petroleum prices globally, the Prime Minister of Pakistan has deferred the proposal by OGRA to increase up to Rs. 16.79/Litre in the petroleum product prices and desired that petroleum product prices shall remain the same from 1st February, 2020 as notified earlier on 15th January, 2022 for providing maximum relief to the general public. The Prime Minister has further desired to keep the prices at the same level through adjustments in Sales Tax, if required.

  • January headline inflation may clock near 13%

    January headline inflation may clock near 13%

    KARACHI: The headline inflation based on Consumer Price Index (CPI) may clock near 13 per cent for the month of January 2022.

    Analysts at Arif Habib Limited forecast that January 2022 inflation to settle at 12.97 per cent Year on Year (YoY) compared to 5.65 per cent in January 2021 and 12.28 per cent in December 2021, respectively.

    This will take the average inflation to 10.24 per cent during first seven months (July – January) 2021/2022 compared to 8.21 per cent in corresponding months of the last fiscal year.

    READ MORE: Mini-budget likely to push up inflation: SBP

    The YoY uptick in CPI will likely be led by Food (12.5 per cent YoY), Clothing & Footwear (13.3 per cent YoY), Alcoholic Beverages & Tobacco (2.2 per cent YoY), Housing (15.0 per cent YoY), House Hold Equipment (13.5 per cent YoY) and Miscellaneous (9.4 per cent YoY).

    The analysts predicted that on a Month on Month (MoM) basis, CPI reading to increase 0.4 per cent. While Housing and Transport index are likely to keep MoM inflation up, food index is expected to decline 0.7 per cent MoM.

    This is the second consecutive MoM decline in food index in the current fiscal year.

    READ MORE: Headline inflation rises by 12.3% in December 2021

    As per Sensitive Price Index (SPI) data published by the Pakistan Bureau of Statistics (PBS), average prices of Potatoes, Tomatoes and Condiments and Spices are expected to register a decline of 13 per cent, 35 per cent and 21 per cent MoM, respectively which will keep the food index contained.

    On the other hand, prices of essential food items like Fresh Fruits and Onions are expected to increase 8 per cent MoM and 5 per cent MoM, respectively. However, quarterly adjustment in House rent and increase in petroleum products will keep the Housing index and Transport Index up 0.5 per cent MoM and 1.9 per cent MoM, respectively.

    READ MORE: Headline inflation surges by 11.5% in November 2021

    Inflation has witnessed slowdown recently with supply-side pressures from food showing a decline and core-inflation still under control. However, going forward we expect inflation to remain in check on account of adjustments in electricity price (base tariff hike-which is expected in phased manner), any increase in prices of petroleum products owing to higher international oil prices and surge in prices of perishable and nonperishable food items in the month of Ramadan.

    The analysts expect average inflation for FY22 to remain in double digit, above 10 per cent YoY. On monetary policy front, the SBP kept policy rate unchanged at 9.75 per cent in its recent January 2022 Monetary Policy Statement (MPS).

    READ MORE: Headline inflation increases by 9.2% in October

    The Committee no longer targets mildly positive interest rates as it believes the current levels appear appropriate for the economy.