Pkrevenue.com

Category: Top stories

Find top stories in this section. Pakistan Revenue brings you the latest and most important news from Pakistan and around the world, keeping you informed with key updates and insights.

  • Pakistan exports plunge 18.34pc in November 2021

    Pakistan exports plunge 18.34pc in November 2021

    ISLAMABAD: Pakistan exports have registered 18.34 per cent decline Year on Year (YoY) in November 2022 owing to import restrictions and slowdown in global demand.

    Data released by Pakistan Bureau of Statistics (PBS) on Thursday revealed that exports fell to $2.37 billion in November 2022 when compared with $2.9 billion in the corresponding month last year.

    READ MORE: Pakistan’s import restrictions help narrowing trade deficit by 27%

    Imports of the country recorded 33.60 per cent decline to $5.245 billion in November 2022 when compared with $7.9 billion in the same month of the last year.

    This resulted contraction in trade deficit of 42.46 per cent to the deficit of $2.876 billion in November 2022 as against $5 billion in the same month of the last year.

    READ MORE: Pakistan import bill falls by 12.72% in 1QFY23

    The decline in exports can be attributed to the restrictions imposed on imports which hampered industrial and export activities. Furthermore, global slowdown also added to export fall.

    Meanwhile, exports recorded a nominal decline of 0.63 per cent to $2.37 billion in November 2022 when compared with previous month of September 2022 at $2.38 billion.

    However, imports recorded an increase of 11.34 per cent to $5.24 billion on Month on Month (MoM) in November 2022 when compared with $4.71 billion in the previous month.

    READ MORE: Pakistan trade deficit narrows by 17% in 2MFY23

    This brings the widening of trade deficit by 23.59 per cent to $2.876 billion in November 2022 when compared with the deficit of $2.33 billion in September 2022.

    Overall trade deficit during first five months (July – November) 2022/2023 contracted by 30.14 per cent to $14.41 billion when compared with the deficit of $20.62 billion in the corresponding months of the last fiscal year.

    READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022

    Exports of the country recorded 3.48 per cent decline to $11.93 billion during first five months of the current fiscal year as against $12.36 billion in the same months of the last year.

    Whereas, import bill fell by 20.15 per cent to $26.34 billion during the period of July – October of fiscal year 2022-2023 as against $32.98 billion in the same period of the last fiscal year.

  • SBP denies restricting import payment for petroleum products

    SBP denies restricting import payment for petroleum products

    KARACHI: State Bank of Pakistan (SBP) on Thursday strongly rejected reports of restricting oil and petroleum products import payment.

    The central bank clarified that some reports suggested regarding restriction on import of oil and petroleum products by the SBP.

    READ MORE: Last date extended up to Dec 31 for exchanging old designed banknotes

    “It is clarified that SBP has not placed any restriction (verbal or otherwise) on opening of Letters of Credit (LCs) or contracts for import of crude oil, LNG and petroleum products,” according to a statement issued by the central bank.

    Such misinformation is being spread with ulterior motives to create uncertainty in the market, it added.

    READ MORE: SBP withdraws NADRA Verisys for activation of dormant bank accounts

    In fact, SBP ensures timely processing of foreign exchange payments through banks related to import of oil and gas products (including LNG) and in accordance with the contractual maturity of the trade documents.

    All the LCs/contracts for oil import are being retired on their due date through interbank foreign exchange market without any delay.

    READ MORE: Pakistan rebuts reports of stopping payments to Google

    The same is also evident from trade data released by SBP in terms of which country’s oil import stood at $1.48 billion and $1.47 billion for the month of September 2022 and October 2022, respectively.

  • Tax commission constituted to make pro-economic growth policies

    Tax commission constituted to make pro-economic growth policies

    ISLAMABAD: Finance Minister Ishaq Dar has constituted a high powered tax commission for identifying bottlenecks in tax system and recommending pro-economic policies.

    The Federal Board of Revenue (FBR) issued a notification on Thursday regarding constitution of Reforms and Resource Mobilization Commission (RRMC).

    The commission comprising following members:

    READ MORE: FBR notifies circular to allow third extension in date of return filing

    01. Ashfaq Tola, Chairman of the commission

    02. Asif Haroon

    03. Haider Ali Patel

    04. Abdul Qadir Memon

    05. Dr. Veqar Ahmed

    06. Saqib Sherazi

    07. Ghazanfar Bilour

    08. President of FPCCI or his nominee

    READ MORE: FBR collects Rs2.69 trillion in 5MFY23 despite tax free petroleum products

    09. President Pakistan Tax Bar Association

    10. Chairman FBR

    11. Member (Reforms & Modernization) FBR Secretary to the Commission

    Subject Experts included:

    12. Nisar Muhammad-Customs

    13. Dr. Muhammad Iqbal-Income Tax

    14. Abdul Hameed Memon-Sales Tax

    According to Terms of Reference (TORs), the commission will advise and made recommendations to the finance minister on the following areas:

    READ MORE: Tax return filing date extended up to Dec 15, 2022

    (i) To review existing revenue policies, evaluate FBR data and macro level, and identify initiatives/measures/policies for resource mobilization, ease of doing business and pro-economic growth.

    (ii) To identify issues/difficulties/snags/risks of the existing tax system and recommend remedial measures.

    (iii) To review the budget proposals, evaluate their consequences on business, and advise the finance minister on practical aspects of budget proposals.

    (iv) To review the proposed amendments in Finance Bill and make recommendations to the finance minister on implications of proposed amendments on businesses.

    (v) To review the complexities of tax legislation and recommend simplification e.g. different compliance level for different categories of taxpayers.

    READ MORE: FBR sets up check posts for monitoring supplies from tax exempt areas

    (vi) To suggest action plan to curb the parallel economy and to make recommendations for improving financial inclusion in the documented system.

    (vii) To review and recommend a robust IT system on modern lines and upgrade existing IT facilities to maximize tax compliance, enforcement, broaden the tax base and provide taxpayer facilitation.

    (viii) To make recommendations for minimizing taxpayer/tax collector interaction and maximizing trust between the FBR and the taxpayers.

    (ix) To revie and advise restructuring of FBR from the following perspectives:

    a. To evaluate the possibility of making FBR autonomous.

    b. To evaluate the possibility of establishing and independent audit system.

    c. To evaluate the possibility of establishing a separate legal department.

    (x) To make recommendations on harmonization of GDT between the Federation and provinces and development of a single portal for filing of sales tax returns.

    (xi) Any other related matter.

    According to the notification, the commission:

    READ MORE: Tax on deemed income from immovable property under Section 7E

    (i) Shall be independent and headed by a full-time chairman; its chairman shall report directly to the finance minister.

    (ii) May interact with stakeholders and form sub-group, and evaluate their proposals for the federal budget.

    (iii) May co-opt any other person with the prior approval of the finance minister.

    (iv) May avail services of any expert (s) on need basis.

    (v) Will have a full-time secretariat at FBR Headquarter, and FBR shall provide logistic and human resource support to the commission.

    (vi) Shall take decision by majority vote of all members.

    (vii) Shall submit its first report by mid of April 2023.

  • Pakistan’s inflation increases by 23.8pc in November 2022

    Pakistan’s inflation increases by 23.8pc in November 2022

    Pakistan’s headline inflation based on Consumer Price Index (CPI) increased by 23.8 per cent in November 2022, according to official data revealed on Thursday.

    CPI inflation General, increased to 23.8 per cent on year-on-year basis in November 2022 as compared to an increase of 26.6 per cent in the previous month and 11.5 per cent in November 2021. On month-on-month basis, it increased to 0.8 per cent in November 2022 as compared to an increase of 4.7 per cent in the previous month and an increase of 3.0 per cent in November 2021.

    READ MORE: Headline inflation surges by 26.6% in October 2022

    CPI inflation Urban, increased to 21.6 per cent on year-on-year basis in November 2022 as compared to an increase of 24.6 per cent in the previous month and 12.0 per cent in November 2021. On month-on-month basis, it increased to 0.4 per cent in November 2022 as compared to an increase of 4.5 per cent in the previous month and an increase of 2.9 per cent in November 2021.

    READ MORE: Pakistan’s headline inflation rises 23.2% in September 2022

    CPI inflation Rural, increased to 27.2 per cent on year-on-year basis in November 2022 as compared to an increase of 29.5 per cent in the previous month and 10.9 per cent in November 2021. On month-on-month basis, it increased to 1.3 per cent in November 2022 as compared to an increase of 5.0 per cent in the previous month and an increase of 3.1 per cent in November 2021.

    READ MORE: Pakistan’s headline inflation hits 47-year high in August 2022

    Sensitive Price Indicator (SPI) inflation on YoY increased to 27.1 per cent in November 2022 as compared to an increase of 24.0 per cent a month earlier and an increase of 18.1 per cent in November 2021. On MoM basis, it increased by 6.1 per cent in November 2022 as compared to a decrease of 1.5 per cent a month earlier and an increase of 3.6 per cent in November 2021.

    READ MORE: Pakistan inflation hits 14-year high at 25% in July

    Wholesale Price Index (WPI) inflation on YoY basis increased to 27.7 per cent in November 2022 as compared to an increase of 32.6 per cent a month earlier and an increase of 27.0 per cent in November 2021. On MoM basis, it decreased by 0.02 per cent in November 2022 as compared to a decrease of 0.5 per cent a month earlier and an increase of 3.8 per cent in corresponding month i.e. November 2021.

  • Pakistan keeps prices of petrol, HSD unchanged till December 15, 2022

    Pakistan keeps prices of petrol, HSD unchanged till December 15, 2022

    ISLAMABAD: Pakistan on Wednesday kept the prices of petrol and high speed diesel (HSD) for next fortnight starting December 01, 2022.

    However, the prices of kerosene oil and light speed diesel (LDO) reduced by Rs10 per liter and Rs7.5 per liter, respectively.

    READ MORE: Pakistan to decide petroleum prices effective from December 01, 2022

    Finance Minister Ishaq Dar in a press conference announced the revision in petroleum prices for the period December 01 to 15, 2022.

    Previously, on September 30, 2022 the government made changes in petroleum prices.

    READ MORE: Pakistan may impose petroleum tax to avert revenue shortfall

    The new prices of petroleum products for next fortnight will be as follow:

    The prices of petrol and HSD shall be Rs224.80 per liter and Rs235 per liter, respectively.

    However, the rate of kerosene shall be reduced by Rs10 to Rs181.83 per liter from Rs191.83. Similarly, the price of LDO shall be reduced by Rs7.50 to Rs179 per liter from Rs186.50.

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

    The benchmark Brent crude oil ended at $83.19 a barrel on November 28, 2022, having slumped more than 3 per cent to $80.61 earlier in the session for its lowest since January 4, 2022.

    The Brent crude has hit above $120 per barrel during mid-June this year and now fell to the present level leaving ample room to the present government to revise downward the prices to provide relief the domestic consumers.

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

  • Tax return filing date extended up to Dec 15, 2022

    Tax return filing date extended up to Dec 15, 2022

    ISLAMABAD: The federal government on Wednesday extended the last date for filing income tax returns by 15 days to December 15, 2022 from November 30, 2022.

    Finance Minister Ishaq Dar at a press conference announced the extension in return filing date.

    READ MORE: Another tax return filing date extension on the cards?

    A large number of taxpayers have filed their income tax returns for tax year 2022. Yet many taxpayers are stuck up in a complicated calculation of income from property and unable to discharge their liability of return filing.

    The Federal Board of Revenue (FBR) had extended the last date till November 30, 2022 for filing income tax return for tax year 2022. However, tax experts believe that the FBR should have to resolve the matter under Section 7E of Income Tax Ordinance, 2001 before setting deadline for return filing.

    The last date for filing income tax return was September 30, 2022 for all taxpayers except companies, which are required to file their returns up to December 31, 2022.

    However, through Circular No. 16 of 2022 and Circular No. 17 of 2022, the FBR granted date extension twice due to current flood situation in the country and request from various trade bodies and tax bar associations.

    Tax practitioners said that although the FBR had extended the date for return filing and resolved many issues pertaining to the return filing yet the taxpayers are facing problems related to calculation of deemed income under Section 7E of the Income Tax Ordinance, 2001.

    Interestingly, the FBR issued SRO 1955(I)/2022 on October 24, 2022 to amend Income Tax Rules, 2002 and made it mandatory for taxpayers to provide details pertaining to deemed income of immovable property along with the return for tax year 2022.

    Since many taxpayers had filed their income tax returns during July 01 – October 23 so the amendment deprived such taxpayers in providing the required details.

    In order to resolve the issue the FBR issued another SRO 2052(I)/2022 allowing to submit details of deemed income by those taxpayers, who filed their returns before October 24, 2022.

    The tax practitioners said that the FBR should have been allowed relaxation to all the taxpayers the mandatory requirement of deemed income detail. They said that it should be deferred for one year as many taxpayers may not able to fulfil the requirement.

    During his recent visit Karachi, FBR chairman Asim Ahmad had made it clear that no date extension would be granted further beyond November 30, 2022. He however assured the tax practitioners that all the issues pertaining to the return filing would be resolved. Furthermore, tax authorities promised to issue a clarification related to Section 7E.

    Tax practitioners said that so far no such clarification was issued and complications in this regard was also not resolved.

    A month ago, Karachi Tax Bar Association (KTBA) sent a letter to the FBR chairman highlighting many issues related to return filing. At present the issues pertaining to Section 7E still are creating hurdles in return filing.

  • Pakistan slaps 5pc regulatory duty on yarn import

    Pakistan slaps 5pc regulatory duty on yarn import

    ISLAMABAD: Pakistan on Tuesday slapped regulatory duty at 5 per cent on the import of filament yarns.

    The 5 per cent regulatory duty would be imposed on filament Yarns falling in Pakistan Customs Tariff (PCT) of 5402.3300, 5402.4600, 5402.4700, 5402.5200 and 5402.6200.

    The decision has been taken at a meeting of Economic Coordination Committee of the Cabinet (ECC) which was presided over by Finance Minister Ishaq Dar.

    READ MORE: PYMA urges government not to impose regulatory duty on yarn

    Ministry of Commerce submitted a summary on Individual Tariff Rationalization proposal from different sectors for review of Regulatory Duties (RDs). The ECC after discussion approved the proposal to reduce RD on Disodium Carbonate (PCT – 2836.2000) from current rate of 20 per cent to 10 per cent and imposed RD at rate of 5 per cent on filament Yarns (PCT 5402.3300, 5402.4600, 5402.4700, 5402.5200 and 5402.6200).

    Federal Minister for National Food Security and Research Tariq Bashir Cheema, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Federal Minister for Information and Broadcasting Ms. Marriyum Aurangzeb, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Shahid Khaqan Abbasi MNA/Ex-PM, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Coordinator to PM on Commerce and Industry Rana Ihsan Afzal, Federal Secretaries, Chairman Federal Board of Revenue (FBR) and other senior officers attended the meeting.

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

    Finance Division submitted a summary on launch of Credit Guarantee Scheme under Credit Guarantee Trust Fund through Second Supplemental Trust Deed.

    It was presented that Pakistan Mortgage Refinance Company Limited (PMRC) has been setup as a joint initiative of the government of Pakistan and Commercial Banks/Development Finance Institutions (DFIs) to provide medium and long term funding to primary mortgage lenders by raising from the capital debt market at cheaper rates.

    PMRC being the trustee launched a scheme titled, Credit Guarantee Trust Scheme under the First Supplemental Trust Deed.

    To expand the provision of risk cover to FIs against financing in housing sector, the WB approved an additional credit line to the government of Pakistan for housing finance project which may be passed on to Credit Guarantee Trust Fund.

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

    In view of above, the ECC allowed to launch a new scheme titled, Credit Guarantee Trust Scheme for low income housing through Second Supplemental Trust Deed with an amount of $85 million to be obtained from the World Bank (WB) to provide risk cover to financing institutions against their financing in housing sector.

    Ministry of National Food Security and Research submitted a summary on fixation and notification of Minimum Indicative Prices of Tobacco Crop 2023. After detailed deliberation, the ECC approved minimum indicative prices for various types of tobacco for different areas for 2023 tobacco crop as under: S. No Types of Tobacco Minimum Indicative prices for 2023 Crop (Rs. Per Kg) 1. Flue Cured Virginia (FCV) i. Plain Area ii. Sub-mountainous Area 310 351 2. Dark Air-Cured Tobbaco (DAC) 190 3 White Patta 146 4. Burley 223 5. Naswar/ Snuff/Hookah and other Rustica tobacco and its products 146 6.

    Sun Cured Virginia (SCV) 200 Power Division submitted a summary on Uniform tariff for K-electric. It was submitted that KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country with category wise increases including general supply tariff – residential, general supply tariff – commercial, industrial supply tariff, bulk supply tariff, agriculture tariff, and public lighting with recovery period of four months.

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

    It was also shared such adjustment shall be applicable on the consumption from October 2022 to January 2023 to be recovered from consumers in December 2022 to March 2023, respectively.

    The ECC after deliberation approved this proposal. Power Division submitted another summary on settlement of payables to Government Owned Power Plants at par with IPPS. The ECC approved Technical Supplementary Grant of Rs. 93.438 billion in three tranches of Rs. 31.146 billion each.

    The ECC discussed summary submitted by Ministry of National Food Security and Research submitted on Kissan Package-2022 and approved base tariff for electric tube wells at Rs. 13/kWH from Rs. 16.60/kWH, providing relief to farmers of Rs. 3.60/kWH effective from November 01, 2022 to compensate the damage caused by the floods and heavy rains.

    Ministry of Information and Broadcasting submitted a summary for allocation of budget to launch comprehensive media awareness campaign on government initiatives, programmes and projects. The ECC after detailed discussion approved Supplementary Grant of Rs. 2 billion for flood related media campaigns.

    ECC approved Rs. 15 billion in favour of Election Commission of Pakistan for Current Financial Year 2022-23. Out of Rs. 15 billion, Rs. 5 billion will be released immediately while the balance will be released in tranches on utilization of the first tranche.

    The ECC also approved Technical Supplementary Grant amounting to Rs. 162.521 million in favour of Ministry of Housing and Works in addition to approving Rs. 250 million for execution of development scheme titled “Construction of Railway underpass, Gojra, District Toba Tek Singh” and Rs. 144.210 million for execution of development schemes in District D.I. Khan.

  • Pakistan out of default risk: PM Shehbaz

    Pakistan out of default risk: PM Shehbaz

    ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif Tuesday said Pakistan is out of default risk due to difficult decisions taken by the present government.

    The prime minister said the government was taking all possible steps to further strengthen the national economy and was striving with priority measures to reduce price hike and provide relief to the common people.

    The prime minister expressed these views while talking to a delegation of Jefferies, a leading global investment banking and capital markets firm. Minister for Finance Ishaq Dar was also present during the meeting.

    The prime minister regretted that unfounded rumours were being spread about the economy of Pakistan and reprehensible efforts were being made to create havoc.

    He said the coalition government without caring for the political price, saved the country from the repercussions of the previous four years’ maladministration by the former government.

    He also reiterated that the government was making efforts to reduce the foreign trade deficit and providing all possible facilities to the foreign investors. 

    Welcoming the delegation, the prime minister invited the firm to open its office in Pakistan.

    The delegation termed the economic recovery of Pakistan as a good sign under the leadership of prime minister that faced the economic challenges in an effective manner and put the country on the path of economic stability.

  • Pakistan to decide petroleum prices effective from December 01, 2022

    Pakistan to decide petroleum prices effective from December 01, 2022

    Pakistan will decide petroleum prices on Wednesday November 30, 2022 for next fortnight starting from December 01, 2022.

    The country will revise the petroleum prices for the next fortnight amid sharp fall in international oil prices. However, on the other hand the depreciation in rupee value and imminent imposition of sales tax on petroleum products the benefit of decline in international oil prices may not pass on to domestic consumers.

    READ MORE: Pakistan may impose petroleum tax to avert revenue shortfall

    The benchmark Brent crude oil ended at $83.19 a barrel on November 28, 2022, having slumped more than 3 per cent to $80.61 earlier in the session for its lowest since January 4, 2022.

    The Brent crude has hit above $120 per barrel during mid-June this year and now fell to the present level leaving ample room to the present government to revise downward the prices to provide relief the domestic consumers.

    However, on the other side the government is considering to impose sales tax on petroleum products in order to satisfy International Monetary Fund (IMF) for upcoming talks, which were already delayed.

    Experts believed that the imposition of sales tax on petroleum products would increase the retail prices as well as result in high inflation.

    READ MORE: Petroleum prices in Pakistan for next 10 days; what next?

    At present the prices of petroleum products till November 30, 2022 are: price of petrol is Rs224.80 per liter; high speed diesel Rs235.30 per liter; kerosene oil Rs191.83; and light diesel oil Rs186.50 per liter.

    In the latest review on November 15, 2022 the government decided to keep the prices unchanged for the fortnight ending November 30, 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 for next fortnight effective from November 16, 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 28, 2022 and reached PKR 223.95 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.

    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: Petroleum prices in Pakistan effective from November 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.

  • SBP withdraws NADRA Verisys for activation of dormant bank accounts

    SBP withdraws NADRA Verisys for activation of dormant bank accounts

    KARACHI: State Bank of Pakistan (SBP) has abolished NADRA verisys for activation of dormant bank accounts.

    The central bank on Monday issued a circular to amend “ANTI-MONEY LAUNDERING, COMBATING THE FINANCING OF TERRORISM & COUNTERING PROLIFERATION FINANCING (AML/ CFT/ CPF) REGULATIONS FOR STATE BANK OF PAKISTAN’S REGULATED ENTITIES (SBP-REs).”

    READ MORE: Pakistan rebuts reports of stopping payments to Google

    The FBR said that the amendments have been made in order to provide further clarity regarding dormancy requirements and to simplify the dormant account activation process.

    As per amended provisions, banks and other SBP regulated entities may activate the dormant account upon receipt of a formal request from the customer through any authenticated medium, including their mobile banking applications, internet banking portals, ATMs, call centers, surface mail, email, registered mobile or landline number, etc.

    Previously, the regulated entities were required to use the NADRA Verisys and a formal request (through postal address or email address or registered mobile number or landline number) for activation of dormant account by customers. “They should retain the NADRA Verisys for record keeping requirements (digitally or hard copy).”

    READ MORE: Pakistan repays $1.8 billion in November 2022: SBP

    NADRA Verisys is verification services of National Database Registration Authority and it facilitates verify NADRA’s issued identity document (CNIC, NICOP, POC, CRC and FRC).

    As per new amendments, the banks shall send prior notice to the account holder through any registered medium, e.g. SMS, email, etc. before marking the account as dormant. Notices shall be sent one (1) month, seven (7) days and one (1) day prior to marking the account as dormant.

    “Notice shall also include the account activation procedures/ channels,” according to the SBP.

    SBP REs may allow credit entries in dormant or inoperative accounts.

    Debit transactions/ withdrawals shall not be allowed until the account is activated.

    READ MORE: State Bank stuns market with massive policy rate hike

    However, transactions e.g. debits under the recovery of loans and markup etc., any permissible bank charges, government duties or levies and instruction issued under any law or from the court will not be subject to debit or withdrawal restriction.

    The SBP also revised definition of “Dormant or In-Operative Account”. According to prior amendment it was the account in which no transaction has taken place during the preceding one year.

    READ MORE: SBP raises benchmark interest rate by 100 basis points to 16pc

    The amended definition is: “Dormant or In-Operative Account” means the account in which no customer initiated transaction (debit or credit) or activity (e.g. login through digital channels) has taken place during the preceding one year.