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 reaffirms commitment to work closely with Russia

ISLAMABAD: Pakistan on Thursday reaffirmed its commitment to work closely with Russia to further strengthen cooperation between the two countries.

Prime Minister Mian Muhammad Shehbaz Sharif held a warm and cordial meeting with President of the Russian Federation Vladimir V. Putin on the sidelines of the Shanghai Cooperation Organization (SCO) Council of Heads of State in Samarkand.

READ MORE: Pakistan premier arrives Russia after two decades

The two leaders discussed bilateral ties and exchanged views on regional and international issues.

The Prime Minister thanked President Putin for Russia’s expression of solidarity and support for the people affected by the massive floods in Pakistan. The Prime Minister also shared details of the devastating impact of this climate induced calamity.

The Prime Minister expressed satisfaction at steady growth of Pakistan-Russia relations, which were marked by strong mutual trust and understanding.

The Prime Minister reaffirmed Pakistan’s commitment to work closely with Russia to further expand and strengthen cooperation between the two countries across all areas of mutual benefit including food security, trade & investment, energy, defence and security.

It was agreed to convene the next meeting of the Inter-Governmental Commission (IGC) in Islamabad at an early date. Appreciating Russia’s constructive role in Afghanistan, the Prime Minister said that both Pakistan and Russia had vital stakes in a peaceful and stable Afghanistan.

The Prime Minister said that it was essential to intensify the pace of international engagement on Afghanistan and reaffirmed Pakistan’s commitment to support all regional and international efforts to stabilize Afghanistan.

Prime Minister Muhammad Shehbaz Sharif also met President of Iran Seyed Ebrahim Raisi on the sidelines of the SCO Council of Heads of State meeting in Samarkand on Thursday.

The Prime Minister extended his gratitude to President Raisi and to the people of Iran for their solidarity and support with the Pakistani nation during the massive floods in the country.

The Prime Minister highlighted the devastating impact of the floods caused by climate change, and underscored that Pakistan with the least carbon emissions was bearing the cost of something for which it was not responsible.

He stressed the importance of tangible international action to help address the challenges that climatically vulnerable countries like Pakistan were facing.

READ MORE: Presidents of Pakistan, Iran discuss trade, economy

During the meeting, the two leaders positively evaluated the outcome of the Pakistan-Iran Joint Economic Commission and agreed to further promote bilateral relations in diverse fields.

Both sides also affirmed the desire to strengthen cooperation in economic, trade, connectivity, energy, culture and people-to-people links.

The Prime Minister underscored the need for closer bilateral engagement for boosting economic and energy cooperation, operationalizing barter trade, opening border sustenance markets, and facilitation of Pakistani Zaireen.

It was agreed that Pakistan would be sending a delegation to discuss measures for expanded cooperation in bilateral trade and energy sectors. The Prime Minister reiterated his invitation to President Raisi to visit Pakistan at the earliest convenience. President Raisi renewed his invitation to the Prime Minister to visit Iran.

September 15, 2022
Pakistan FX reserves slip to $14.32 billion

KARACHI: The foreign exchange (FX) reserves of Pakistan have slipped by $156 million to $14.32 billion by week ended September 09, 2022, according to data released by the State Bank of Pakistan (SBP) on Thursday.

Total foreign exchange reserves of the country were at $14.473 billion a week ago i.e. September 02, 2022.

READ MORE: Pakistan’s FX reserves increase by $1.07bn after IMF inflows

The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $12.911 billion.

The official reserves of State Bank of Pakistan (SBP) also fell by $176 million to $8.624 billion by week ended September 9, 2022 as compared with $8.8 billion a week ago.

READ MORE: Pakistan FX reserves drop to $13.4 billion

The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.522 billion.

Earlier this month, SBP received US$ 1,166 million from IMF under EFF program, which increased the official reserves to $8.8 billion

READ MORE: Pakistan’s forex reserves fall to $13.52 billion

The foreign exchange reserves held by commercial banks however increased by $20 million to $5.693 billion by week ended September 09, 2022 as compared with $5.673 billion a week ago.

READ MORE: Pakistan’s forex reserves increase by $52 million

September 15, 2022
Rupee devaluation continues; Dollar jumps to PKR 235.88

KARACHI: The devaluation in Pakistani Rupee (PKR) continued for 10^th straight day as the US dollar ended PKR 235.88 in interbank foreign exchange market on Thursday.

The exchange rate witnessed a decline of Rs1.56 in rupee value to end at Rs235.88 to the dollar from previous day’s closing of Rs234.32 in the interbank foreign exchange market.

READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

The local currency recorded a decline of Rs16.08 or 8 per cent during the past 10 sessions from Rs218.60 against the dollar on September 01, 2022.

Currency experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.

Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

READ MORE: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

The rupee made some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

READ MORE: PKR losing streak continues; Dollar ends Rs231.92 at interbank

The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

READ MORE: PKR falls for 7th straight day; dollar jumps to Rs229.82

September 15, 2022
FBR updates salary tax card for year 2022-2023

The Federal Board of Revenue (FBR) has unveiled the revised salary tax card for the tax year 2022-2023, incorporating the latest withholding income tax rates.
(more…)

September 14, 2022
FBR issues withholding tax rates on imports for tax year 2022-2023

The Federal Board of Revenue (FBR) has released the latest rates of withholding income tax applicable to the import of goods for the tax year 2022-2023.
(more…)

September 14, 2022
FPCCI rejects central bank’s claim of ‘no import restriction’

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday strongly rejected the claim of the central bank regarding no restriction on imports.

FPCCI’s acting president, Suleman Chawla in a statement categorically refuted the claims and assertions made by the State Bank of Pakistan (SBP) that there are no restrictions in place on import of raw materials.

READ MORE: No restriction on imports, SBP clarifies

Import payments not being cleared swiftly by SBP are resulting in disruptions in industrial production; unbearable demurrages and container charges; loss-making delays in fulfillment of export orders; inflationary pressures in the domestic markets and compounding of discouraging investor sentiments, he added.

Acting FPCCI Chief explained that due to the unavailability of foreign exchange, continuous rupee depreciation, speculative trading and delays by SBP, manufacturers and commercial importers are in a jeopardy and exports have started to fall. The country will suffer due to the dwindling exports, increasing trade deficit and yawning current account deficit (CAD), he added.

READ MORE: Pakistan’s apex body wants fixed exchange rate regime

Suleman Chawla has maintained that SBP has failed in exercising its constitutional duties of effectively regulating the commercial banks through various policy tools at its disposal; and, commercial banks are making windfall profits through speculative trading of dollars.

FPCCI has time and again reminded SBP, in no uncertain terms, of their responsibilities to control commercial banks; but, it is always unfruitful & goes in vain, he added.

Acting FPCCI President emphasized that dollar is trading in the open market at a premium of PKR. 8 – 10 and it is a glaring testimony of the fact that the importers are not being able to source the dollars that they need to fulfill their import contracts and related commercial transactional procedures from the banking channels. It will only aggravate the situation and promote the informal open market, he added.

READ MORE: KCCI managing committee candidates elected unopposed

Chawla pointed out that there are still difficulties in opening LCs with commercial banks under chapter 84 & 85 of the custom tariff; despite the claimed circular issued by SBP to the commercial banks and that reflects badly on SBP’s ability to implement its regulatory role. However, he emphasized, SBP has all the means and policy tools to implement its decisions & circulars.

Engr. M. A. Jabbar, VP FPCCI, highlighted that despite taking responsibility of its failure, SBP has resorted to blaming the industrialists and their representatives; who are already under unprecedented strains due to the various other factors in addition to the dearth of dollars in the banking channel.

READ MORE: APTMA demands immediate release of textile machinery

Engr. Jabbar added that FPCCI sees SBP’s conduct as detrimental to industrial growth, an utter lack of responsibility, insensitivities to people’s sufferings due to depleting employment opportunities, debilitating inflation and counterintuitive coupled with lack of initiative to fulfill its mandated duties.

September 14, 2022
Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

KARACHI: The Pakistani Rupee (PKR) continued its falling spree for the ninth consecutive session against the dollar as the foreign currency ended at PKR 234.32 at closing of the interbank foreign exchange market on Wednesday.

The exchange rate witnessed a decline of Rs2.41 in rupee value to end at Rs234.32 to the dollar from previous day’s closing of Rs231.92 in the interbank foreign exchange market.

READ MORE: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

The local currency recorded a decline of Rs15.72 or 7.2 per cent during the past nine sessions from Rs218.60 against the dollar on September 01, 2022.

Currency experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.

Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

READ MORE: PKR losing streak continues; Dollar ends Rs231.92 at interbank

The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

The rupee made some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

READ MORE: PKR falls for 7th straight day; dollar jumps to Rs229.82

The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products. The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

September 14, 2022
Sindh exempts tax on services provided for flood relief

KARACHI: Sindh government has allowed whole of sales tax on services provided or rendered for flood relief operations.

In this regard, Sindh Revenue Board (SRB) issued a notification dated September 13, 2022, stated that the government of Sindh exempted the whole of sales tax payable on such taxable services as are certified by the National Disaster Management Authority (NDMA) or Provincial Disaster Management Authority (PDMA), Sindh to be meant for flood relief operations carried out in Sindh Province.

READ MORE: SBP allows flood relief donations through home remittance channel

The province allowed sales tax exemption on the following services:

01. Services provided or rendered by restaurants for free distribution as donation or charity.

02. Services provided or rendered by caterers, suppliers of food and drinks for free distribution as donation or charity.

READ MORE: FBR directs speedy clearance of flood relief goods

03. Advertisements for charity and donations in the Prime Minister’s Flood Relief Fund or in the Chief Minister Sindh’s Flood Relief Fund.

04. Renting of machinery, equipment, appliances and other tangible goods acquired and used for rehabilitation and reconstruction.

READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

05. Labor and manpower supply services provided in the course of flood relief operations.

06. Services provided or rendered by persons engaged in inter-city transportation or carriage of flood relief goods by road.

The SRB said that the notification, if not rescinded earlier, shall stand rescinded on and from January 01, 2023.

READ MORE: Pakistani fintech enables individuals to donate flood victims

September 14, 2022
No restriction on imports, SBP clarifies

KARACHI: State Bank of Pakistan (SBP) on Tuesday clarified that there is no restriction on import of raw material for any industry.

In a statement the central bank said that lately, some media reports and representatives of trade organizations have claimed that banks are not opening Letters of Credit (LCs) for essential raw materials including pharmaceuticals.

READ MORE: State Bank suspends two exchange companies

“This is contrary to the facts. It is clarified that there is no restriction on the import of raw material for any industry including export-oriented industry,” the SBP added.

It is further clarified that SBP has advised banks, through EPD Circular Letters No. 9 and No. 11 of May 20, 2022 and July 5, 2022, to seek prior permission before initiating transactions for import of Motor Cars (CKD), Mobile Phones (CKD) and machinery (falling under HS codes Chapter 84, 85 and certain codes with prefix 87).

READ MORE: Dollar hits PKR 232 in midday interbank trading

Keeping in view the concerns of the industry, SBP and the Federal Government, in consultation with the relevant stakeholders have devised a mechanism to accommodate import by different sectors/industries i.e. automobiles, mobile phones, home appliances, tractors, 2 and 3 wheelers, transformers and switchgear, auto parts manufacturers, telecom operators and exporters.

READ MORE: Pakistan remittances from Saudi Arabia fall by 7.5% in two months

The SBP has already approved more than 7,000 cases till date. “The delays in approval are caused sometimes because of submission of inaccurate or insufficient information to SBP,” it added.

SBP is, however, striving hard to expedite the approval process as much as it can, according to the statement.

READ MORE: State Bank signs deal to analyze property prices

September 13, 2022
Dollar hits PKR 232 in midday interbank trading

KARACHI: The US dollar maintained its upward journey against the Pakistan Rupee (PKR) and hit Rs 232 in midday interbank trading on Tuesday.

The exchange rate witnessed a fall of Rs2.18 in rupee value as the dollar is being traded Rs232 from previous day’s closing of at Rs229.82 in the interbank foreign exchange market.

READ MORE: PKR falls for 7th straight day; dollar jumps to Rs229.82

It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

The rupee witnessed free fall against the dollar and plunged for 7^th straight day against dollar a day earlier as the US dollar jumped to Rs229.82 in interbank foreign exchange market.

READ MORE: Rupee weakens sixth straight day; dollar ends PKR 228.18

The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF). The local currency has recorded Rs11.22 against the foreign currency during the past seven sessions. The local unit was at Rs218.60 to the dollar on September 01, 2022.

It is worth mentioning that Pakistan received $1.1 billion from the IMF under Extended Fund Facility (EFF) on August 31, 2022 following the executive board of the IMF approved the loan program on August 29, 2022.

READ MORE: Pakistani Rupee weakens; Dollar jumps to PKR 225.42 at interbank

Currency experts said that the rupee was under immense pressure due to high import payment demand and losses to the economy due to floods.

They said that high import payments by end of this quarter and corporate payments put pressure on the rupee value.

The rupee made some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

READ MORE: Dollar strengthens to PKR 223.42 at interbank closing

The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

The torrential rains and flash floods have inflicted a loss of $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products. The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

September 13, 2022