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  • Notification issued for implementing 15% salary increase

    Notification issued for implementing 15% salary increase

    ISLAMABAD: The finance ministry has notified an office memorandum for the increase of 15 per cent in the salary of federal government employees from March 01, 2022.

    According the memorandum dated February 23, 2022, the employees of the federal government will get disparity reduction allowance at 15 per cent of the basic pay scales 2017 with effect from March 01, 2022.

    The federal government on February 10, 2022 announced an increase of 15 per cent in salaries of employees from BS-1 to BS-19.

    READ MORE: Federal government announces 15% increase in salaries

    The latest memorandum stated that the allowance shall be admissible to civil employees in BPS-1 to BPS-19 of the federal government, (including employees of the federal secretariat, attached departments and subordinate offices) who have never been allowed additional allowance / allowances equal to or more than 100 per cent of the basic pay (whether frozen or not) or performance allowance subject to the following conditions:

    READ MORE: Withholding tax rates on salary income for 2021-2022

    a. This allowance will not be admissible to the employees of the organizations who are drawing additional allowance/allowances equal to or more than 100 per cent of the basic pay (whether frozen or otherwise);

    b. This allowance will be frozen at the level drawn on March 01, 2022;

    c. This allowance will be subject to Income Tax;

    d. This allowance will be admissible during leave and entire period of LPR except during extra ordinary leave;

    e. This allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent;

    READ MORE: Employers to deduct tax on salary income

    f. This allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;

    g. This allowance will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them, had they not been posted abroad;

    READ MORE: Tax on salary income of earlier year

    h. This allowance will be admissible during the period of suspension;

    i. The term ‘basic pay’ will also include the amount of personal pay granted on account of annual increment (s) beyond the maximum of the existing pay scales.

  • SBP relaxes financing for under construction houses

    SBP relaxes financing for under construction houses

    KARACHI: The State Bank of Pakistan (SBP) has relaxed financing conditions for housing units in under construction projects.

    The central bank issued a circular dated February 25, 2022 to ease the conditions for house financing. It said that in order to further facilitate buyers of housing units in under construction projects, requirement of builder/developer to avail construction financing is being relaxed.

    READ MORE: Bank Alfalah tops in house financing under MPMG

    “Accordingly, purchasers of housing units in under construction projects may avail housing finance against their housing units in projects where builder/developer has not availed construction financing,” the SBP said.

    In such cases, the builder/developer will have to create mortgage charge over project’s land in favor of bank/DFI through an agreement. The charge will only be vacated after completion of the project and transfer of housing units to the purchasers. Moreover, the builder/developer will comply with all other provisions of subject guidelines, it added.

    Any bank/DFI can provide housing finance to a purchaser of a housing unit in such under construction projects.

    READ MORE: SBP launches webpage for promoting house financing

    However, if the purchaser wants to avail financing from a bank/DFI other than the mortgagee bank/DFI, then it will have to obtain NOC from the mortgagee bank/DFI in this regard.

    Moreover, financing bank/DFI of such purchasers will also be required to enter into bilateral arrangement with the mortgagee bank/DFI to secure its risk.

    With regard to the requirement of informed consent under guidelines, it is clarified that the builder/developer will be responsible to arrange written informed consent from the customers who intend to purchase housing units from their own sources without availing mortgage finance.

    The letters of written consent of such purchasers will be submitted to the bank/DFI in original by the builder/developer.

    The builders/developers are developing and marketing a number of multi-storey projects of housing units across the country. Although these under construction projects are exposed to project completion risk and performance risk of builders/developers, many individuals are attracted to book housing units in these projects owing to their affordability and option of payments through installments.

    However, the banks/DFIs have traditionally shied away from financing to the housing units in under construction projects due to issues in availability of legally enforceable title documents and registration of mortgages as per requirements of Prudential Regulations (PR) for Housing Finance.

    It may be noted that banks/DFIs extend project financing to builders/developers for construction of multistorey housing projects after adequately securing their project and builder risks through mortgage of project land and other securities. Utilizing these already established security arrangements with the builders/developers, the banks/DFIs may also extend housing finance against housing units in multistorey housing projects. This will expand options of affordable housing to the individual borrowers. This will also facilitate banks/DFIs in ensuring repayment/ settlement of their project financing through conversion of the same in housing finance.

  • PM Imran, President Putin discuss regional development

    PM Imran, President Putin discuss regional development

    MOSCOW: Prime Minister Imran Khan and Russian President Vladimir Putin on Thursday held a one on one meeting in Moscow with a wide-ranging agenda in focus relating to bilateral matters and regional developments.

    The two leaders reviewed the entire array of bilateral relations including economic and energy cooperation, particularly the Pakistan Stream gas pipeline.

    The regional situation including the developing scenario of Ukraine also came under discussion.

    PM Imran Khan, earlier on his arrival at Kremlin – the executive headquarters of the Russian Federation, was warmly received by President Putin.

    This is the first bilateral visit by a Pakistani prime minister to Russia after a gap of 23 years and is being termed as a historic step to renew relations between the two countries.

    On the invitation of President Putin, Prime Minister Imran Khan arrived in the Russian capital Wednesday on a two-day visit where he was given a guard of honour at the airport.

    The prime minister was accompanied by a high-level delegation, including federal ministers Shah Mahmood Qureshi, Chaudhry Fawad Hussain, Asad Umar and Hammad Azhar, Commerce Advisor Abdur Razzak Dawood, National Security Advisor Moeed Yusuf and Member of the National Assembly Amir Mahmood Kiyani. 

    Pakistan premier arrives Russia after two decades
  • Pakistan premier arrives Russia after two decades

    Pakistan premier arrives Russia after two decades

    MOSCOW: Prime Minister Imran Khan on Wednesday arrived Russia, which is the first visit of any Pakistani premier in last two decades.

    The prime minister was accorded a accorded a red carpet welcome upon his arrival to Russia on a two-day official visit.

    Upon arrival at the airport, the prime minister and his delegation was warmly received by Deputy Russian Foreign Minister Igor Morgulov and the high officials of Pakistan Embassy. The prime minister was also given a guard of honour.

    READ MORE: PM Imran visits Russia on February 23-24

    The prime minister is undertaking the visit at the invitation of President of the Russian Federation Vladimir Putin.

    The prime minister is accompanied by a high-level delegation including federal ministers Shah Mahmood Qureshi, Chaudhry Fawad Hussain, Asad Umar, Hammad Azhar, Commerce Advisor Abdur Razzak Dawood, National Security Advisor Moeed Yusuf and Member of the National Assembly Amir Mahmood Kiani.

    After a span of two decades, this is the first visit by a Pakistani prime minister to Russia.

    READ MORE: PM Imran announces setting up technology startup fund

    The bilateral summit will be the highlight of the visit. During the summit meeting, the two leaders will review the entire spectrum of bilateral relations including energy cooperation, according to Foreign Office.

    They will also have a wide-ranging exchange of views on major regional and international issues, including Islamophobia and the situation in Afghanistan.

    READ MORE: Tax reduced on POL products to ease inflation: PM Imran

    The prime minister’s visit will contribute to the further deepening of the multifaceted Pakistan-Russia bilateral relationship and enhancement of mutual cooperation in diverse fields.

    Pakistan-Russia relations have made impressive progress over the past two decades. There has been regular interaction between the two sides at the highest level as well as the working level.

    Prime Minister Imran Khan has spoken thrice to President Putin on August 25, 2021, September 14, 2021 and January 17, 2022. The prime minister has also extended an invitation to President Putin to visit Pakistan.

    READ MORE: PM Imran launches 2nd phase of Raast payment system

  • PM Imran visits Russia on February 23-24

    PM Imran visits Russia on February 23-24

    ISLAMABAD: Prime Minister Imran Khan will pay an official visit to Russia on February 23-24, 2022.

    The Pakistan premier is paying the official visit on the invitation of President of the Russian Federation Vladimir Putin.

    The Prime Minister will be accompanied by a high-level delegation including members of the Cabinet.

    The bilateral summit will be the highlight of the visit. Pakistan and Russia enjoy friendly relations marked by mutual respect, trust and convergence of views on a range of international and regional issues.

    During the Summit meeting, the two leaders will review the entire array of bilateral relations including energy cooperation.

    They will also have wide-ranging exchange of views on major regional and international issues, including Islamophobia and situation in Afghanistan.

    The visit of the Prime Minister will contribute to further deepening of the multifaceted Pakistan-Russia bilateral relationship and enhancement of mutual cooperation in diverse fields.

  • 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.