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  • Pakistan remittances from Saudi Arabia fall by 7.5% in two months

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

    KARACHI: Remittances sent by overseas Pakistani workers living in Saudi Arabia fell by 7.5 per cent during first two months of the fiscal year 2022/2023.

    Pakistani workers living in Saudi Arabia are remain the major sender of remittances during the period under review. The country received $1.27 billion from Saudi Arabia during July – August 2022 as compared with $1.37 billion in the corresponding period of the last year, according to data released by the State Bank of Pakistan (SBP) on Tuesday.

    READ MORE: State Bank signs deal to analyze property prices

    The overall remittances sent by Pakistani workers declined by 3 per cent during first two months (July – August) 2022/2023. The overseas Pakistani workers sent $5.25 billion during first two months of the current fiscal year as compared with $5.42 billion in the same months of the last fiscal year.

    READ MORE: SBP bars banks from taking service charges on flood donations

    The inflows from the UAE recorded a decline of 8.2 per cent during the period under review. The remittances from the UAE fell to $987 million during first two months of the current fiscal year as compared with $1.07 billion in the same period of the last fiscal year.

    READ MORE: Complaints against banks for refusing flood donations

    Remittances sent by Pakistani workers living in the USA and the UK were $549 million and $781 million, respectively during the first two months of the current fiscal year.

    The foreign inflows received by the country were $2.72 billion in the month of August 2022, which were $2.68 billion in the same month of the last year and $2.52 billion in the previous month (July 2022).

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

  • Pakistan implemented currency declaration decade ago: FBR

    Pakistan implemented currency declaration decade ago: FBR

    ISLAMABAD: Pakistan has implemented currency declaration for all international passengers a decade ago, the Federal Board of Revenue (FBR) clarified on Monday.

    FBR, the apex tax collecting agency of Pakistan, stated that the currency declaration regime for all international passengers has been in field for more than a decade, rather than being recently introduced on account of any recent FATF review requirements.

    READ MORE: Last date for filing tax return is September 30, FBR reminds

    It said a misleading impression has been created in some section of the press that Pakistan has recently imposed currency declaration requirements for passengers coming into Pakistan, which is contrary to facts.

    Unlike portrayed by some section of the press, the mandatory requirement for passengers coming into Pakistan and bringing currency and/or negotiable instruments was notified by the State Bank of Pakistan more than 10 years ago vide notification no. F.E.1/2012-SB dated 16th June 2012. This requirement came into force on July 01,2012.

    READ MORE: Disclosure of beneficial ownership made mandatory for companies

    Subsequently, in order to widen the scope of declaration to include gold jewelry, precious stones and other prohibited/ restricted goods, Pakistan Customs also introduced a comprehensive “Customs Declaration Form for Passengers” which was notified vide SRO 689(I)/2019 dated 29th June, 2019. These rules cover both the incoming and outgoing passengers.

    READ MORE: KTBA highlights pharmaceutical industry’s reporting issues

    These requirements for declaration are in line with international standards and the best practices adopted by most of the countries in the world. The passengers can make the declaration either manually at the Customs counter or electronically in the Customs System.

    In order to increase awareness amongst the international passengers, Pakistan Customs has been collaborating with the Civil Aviation Authority, Airlines, and Immigration Authorities to improve its outreach for both departing and arriving passengers. As a result, the compliance has been steadily increasing.

    READ MORE: FBR directs 81 retailers to integrate with POS system

  • Pakistan to review petroleum prices on September 15, 2022

    Pakistan to review petroleum prices on September 15, 2022

    ISLAMABAD: Pakistan is likely to review petroleum prices on Thursday September 15, 2022 for the next fortnight starting from September 16, 2022.

    The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Experts believe that Pakistan may increase the petroleum prices for the fortnight starting from September 16, 2022 because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

    The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

    The finance division notified the new prices of petroleum products with effect from September 01, 2022.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    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.

    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.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    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.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    Pakistani Rupee (PKR) has plunged by Rs9.43 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by Rs9.43 or 4.31 per cent to Rs228.18 to the dollar on September 09, 2022 in interbank foreign exchange market.

  • Last date for filing tax return is September 30, FBR reminds

    Last date for filing tax return is September 30, FBR reminds

    ISLAMABAD: The Federal Board of Revenue (FBR) on Sunday reminded that the last date for filing income of return for tax year 2022 is September 30.

    In order to ensure return filing by due date, the tax authority launched massive awareness campaign

    The FBR said: “Like every year before, the FBR launched a comprehensive awareness campaign to maximize its outreach through electronic and print media, urging taxpayers both existing and new, to file Income Tax Returns on time. The last date to file returns is Sep 30, 2022.”

    READ MORE: Disclosure of beneficial ownership made mandatory for companies

    The FBR issued an alert about the last date stating that last date to file income tax returns will not be extended. “Last date to file income tax returns for individuals and association of persons (AOPs) is September 30, 2022,” the FBR added.

    The revenue body said that income tax returns can be filed through: Tax Asaan APP and FBR website.

    It further stated that tax payment is possible through: internet and mobile banking; credit card and ATMs; cash and bank account.

    The FBR further urged the taxpayers to file tax returns and avail exemption from 100 per cent increased withholding tax rates.

    READ MORE: KTBA highlights pharmaceutical industry’s reporting issues

    The tax body highlighted mandatory income tax return filing for persons and corporate entities.

    The FBR said that all resident persons registered with professional bodies, i.e. chamber of commerce, Pakistan Bar Council or Market Committee etc. are required to file income tax returns.

    Association of persons and Individuals having more than Rs400,000 annual business income are also required to file their return of income on annual basis.

    READ MORE: FBR directs speedy clearance of flood relief goods

    “The income tax return filing is must for salaried persons if annual income exceeds Rs600,000,” the FBR added.

    The revenue body said that the income tax return filing for tax year 2022 is also mandatory for persons who were charged to income tax in tax years 2020 and Tax Tear 2021.

    Furthermore following persons are required to file income tax return:

    — Persons having National Tax Number (NTN)

    — Persons who own a motor vehicle having engine capacity more than 1,000CC

    — Persons who own 500 sq. yards or more property / flat in urban areas.

    READ MORE: FBR directs 81 retailers to integrate with POS system

    — Owners of flat with 2,000 sq. feed covered area of 500 sq. yards or more land in FBR rating area.

    — All Non for Profit Organizations (NPOs) or welfare organizations that fall under Income Tax Ordinance, 2001.

    — Commercial and Industrial consumers paying more than Rs500,000 electricity bill annually.

    — Resident persons required to file foreign income and assets statement.

  • PKR plunges Rs9.43 or 4.31% against dollar since IMF transfers

    PKR plunges Rs9.43 or 4.31% against dollar since IMF transfers

    KARACHI: Pakistani Rupee (PKR) has plunged by Rs9.43 against the US dollar since the country received tranche from the International Monetary Fund (IMF).

    The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The fund transfer was made possible after the IMF Executive Board approved resumption of Pakistan loan program on August 29, 2022.

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

    The government was hopeful of improvement in economic indicators once the money is received from the IMF.

    However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by Rs9.43 or 4.31 per cent to Rs228.18 to the dollar on September 09, 2022 in interbank foreign exchange market.

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

    Currency experts said that the dollar demand was increased due to massive imports for flood relief program and removal of import ban on luxury and non-essential items under IMF pressure.

    Pakistan is facing catastrophic floods, which incurred huge losses both human and monetary. To an estimate, the country has suffered about $12 billion – $15 billion due to floods devastation.

    A large scale relief operations have been started from both local and international agencies along with the government. This relief operations require huge amount of imported goods in the country.

    READ MORE: Dollar strengthens to PKR 223.42 at interbank closing

    Pakistan’s apex tax agency i.e. Federal Board of Revenue (FBR) recently issued notifications to allow exemption from duty and taxes on import of goods for flood relief operations. Besides, the FBR also directed the customs authorities to ensure clearance of goods imported under PM flood relief program within 24 hours.

    Furthermore, the rupee is also under pressure after the government withdrew the ban on import of luxury and non-essential goods to prevent depreciation in rupee value and cut import bill to support balance of payment.

    The government imposed the ban on import of luxury and non-essential items on May 19, 2022. The ban yielded results as the trade deficit and current account deficit narrowed in subsequent months.

    However, the government on August 20, 2022 removed this ban in order to satisfy the IMF for continuation of loan program.

    READ MORE: Dollar continues upward journey; ends at PKR 221.42 in interbank

    It is pertinent to mention that the foreign exchange reserves of the country improved after the inflows received by the State Bank. However, repayment pressure and already significant decline failed to improve the market sentiments.

    Pakistan’s foreign exchange reserves have increased by $1.07 billion. The foreign exchange reserves of Pakistan increased to $14.473 billion by week ended September 02, 2022 as compared with reserves position of $13.403 billion a week ago i.e. August 26, 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 $12.755 billion.

    The official reserves of State Bank of Pakistan (SBP) also recorded an increase of $1.103 billion to $8.8 billion by week ended September 02, 2022 as compared with $7.697 billion a week ago.

    During the week ended, SBP received US$ 1,166 million from IMF under EFF program. After accounting for external debt and other payments, SBP reserves increased by US$ 1,103 million to US$ 8,799.9 million.

    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 $11.346 billion.

  • Disclosure of beneficial ownership made mandatory for companies

    Disclosure of beneficial ownership made mandatory for companies

    The Federal Board of Revenue (FBR) has made it mandatory for companies and Associations of Persons (AOPs) to make disclosure of their beneficial ownership.

    (more…)
  • Pakistan raises petroleum prices by 100% in one year

    Pakistan raises petroleum prices by 100% in one year

    ISLAMABAD: Pakistan has increased prices of petroleum products by around 100 per cent during past one year, according to official data released on Friday.

    According to data released by Pakistan Bureau of Statistics (PBS), the price of petrol was increased by 99 per cent to Rs236.98 per liter by week ended September 08, 2022 as compared with Rs119.25 per liter by week ended September 09, 2021.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Similarly, the price of high speed diesel (HSD) recorded a massive increase of 114 per cent to Rs248.40 per liter by week ended September 08, 2022 when compared with Rs116 per liter by week ended September 09, 2021.

    The PBS issued weekly Sensitive Price Indicator (SPI) based inflation details.

    The year on year trend depicts an increase of 42.70 per cent. The items have witnessed increase in prices are included: Tomatoes (144.25 per cent), Diesel (114.08 per cent), Petrol (98.73 per cent), Pulse Masoor (76.34 per cent), Cooking Oil 5 litre (67.99 per cent), Mustard Oil (66.53 per cent), LPG (64.98 per cent), Washing Soap (64.50 per cent), Electricity for Q1 (63.03 per cent), Vegetable Ghee 2.5 Kg (62.53 per cent), Pulse Gram (61.02 per cent), Onions (59.97 per cent) and Vegetable Ghee 1 Kg (58.19 per cent).

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

    While a decrease observed in the prices of Chillies Powder (43.42 per cent), Sugar (18.07 per cent) and Gur (2.08 per cent).

    The SPI for the current week ended on September 08, 2022 recorded a decrease of 0.58 per cent. Decrease is observed in the prices of food items, Onions (41.99 per cent), Tomatoes (8.11 per cent), Bananas (2.51 per cent), Pulse Masoor (1.37 per cent), Vegetable Ghee 1Kg (0.55 per cent), Cooking Oil 5 litre (0.33 per cent), Mustard Oil (0.16 per cent) and Vegetable Ghee 2.5Kg & Sugar (0.11 per cent) each.

    READ MORE: Pakistan’s sensitive price inflation surges by 45%

    On the other hand, an increase observed in the prices of LPG (10.66 per cent), Wheat Flour (4.15 per cent), Eggs (3.96 per cent), Bread (3.27 per cent), Pulse Moong (2.74 per cent), Curd (2.72 per cent), Tea Lipton (2.50 per cent), Pulse Gram (1.65 per cent), Chicken (1.58 per cent), Milk Fresh (1.57 per cent), Fire wood (1.54 per cent) and Potatoes (1.02 per cent).

    During the week, out of 51 items, prices of 26 (50.98 per cent) items increased, 09 (17.65 per cent) items decreased and 16 (31.37 per cent) items remained stable.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

  • Rupee weakens sixth straight day; dollar ends PKR 228.18

    Rupee weakens sixth straight day; dollar ends PKR 228.18

    KARACHI: The Pakistani Rupee (PKR) weakened for the sixth straight day as the US dollar ended PKR 228.18 closing of interbank foreign exchange market on Friday.

    The exchange rate recorded a decline of Rs2.76 in rupee value to end at Rs228.18 to the dollar from previous day’s closing of Rs225.42 in the interbank foreign exchange market.

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

    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 Rs9.58 against the foreign currency during the past six 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: Dollar strengthens to PKR 223.42 at interbank closing

    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 fell to the record low of Rs239.94 to the dollar on July 28, 2022.

    READ MORE: Dollar continues upward journey; ends at PKR 221.42 in interbank

    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: Dollar ends up to PKR 219.86 on September 05, 2022

    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.

  • USC to disburse ration bags worth Rs540 million to flood victims

    USC to disburse ration bags worth Rs540 million to flood victims

    ISLAMABAD: Utility Stores Corporation (USC) will disburse 113,700 ration bags worth Rs540 million to the flood affected people across the country.

    In this regard the Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the grant in favor of the USC.

    Ministry of Industries and Production presented a summary for release of funds for Utility Stores Corporation for provision of essential commodities in flood affected areas.

    READ MORE: OTP requirement abolished for USC purchases

    The meeting was apprised that the Utility Stores Corporation, in collaboration with provincial governments, is actively participating in relief operation for supply of essential food items in flood affected areas across Pakistan.

    Due to emergency situation and based on the preliminary need assessment, 113,700 ration bags amounting to Rs. 540 million would be disbursed. Considering emergency situation, the ECC approved Supplementary/ Technical Supplementary Grant of Rs. 540 million in favour of Utility Stores Corporation (USC).

    READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn

    Finance Mnister Miftah Ismail chaired the ECC meeting. Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Shahid Khaqan Abbasi, MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Dr. Muhammad Jehanzeb Khan, Special Assistant to the Prime Minister on Government Effectiveness, MD USC, MD PASSCO, Federal Secretaries and senior officers attended the meeting.

    Ministry of National Food Security & Research tabled a summary for allocation of PASSCO’s local and imported wheat sock among recipient agencies.

    READ MORE: USC, NBP complete integration for Ehsaas Rashan

    It was briefed that PASSCO serves as a strategic organization to procure wheat from Punjab, Sindh and Baluchistan to build strategic reserves and to supply wheat to recipient agencies in case of emergency.

    Every year, on the request of recipient agencies, PASSCO makes allocation of wheat from its stocks. PASSCO held wheat stock of 2.499 MMT, including 1.232 MMT carry forward stocks.

    In view of above, the ECC allowed to supply PASSCO’s wheat among all recipients at 50 per cent local and 50 per cent imported.

    However, USC will be provided wheat at 75 per cent local and 25 per cent imported.

    All recipients including USC would pay full cost of wheat (local + imported) and incidental charges to PASSCO.

    READ MORE: USC automation to ease provision of targeted subsidy

    Ministry of Industries and Production presented a summary on Urea Fertilizer requirement for Rabi season 2022-23. The meeting was briefed on the demand and supply situation of Urea fertilizer for the Rabi season 2022-23.

    After detailed deliberation, the ECC allowed Trading Corporation of Pakistan (TCP) to initiate the process for import of 300,000 MT of Urea on G2G basis and decided the provinces to bear their subsidy share.

    The ECC approved funds amounting to Rs. 3 billion to NDMA to meet its growing expenditure on account of procurement of rescue, relief and rehabilitation of the calamity stricken population across Pakistan.

    NDMA briefed the meeting that in the aftermath of devastation caused by floods across the country, millions of people have suffered in terms of loss of life, property, livestock and standing crops.

    NDMA was tasked by the Prime Minister to coordinate with PDMAs and to proactively undertake rescue and relief operation in the affected areas.

    The ECC also approved funds requirement of Rs. 1,009,480,191/- in favour of Ministry of National Health Services, Regulation & coordination for further transfer to Government of Afghanistan through approved mechanism for running cost/salary of the staff of three Pakistani hospitals in Afghanistan.

  • Pakistan’s FX reserves increase by $1.07bn after IMF inflows

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

    KARACHI: Pakistan’s foreign exchange reserves have increased by $1.07 billion after the country received inflows from International Monetary Fund (IMF), a statement said on Thursday.

    The foreign exchange reserves of Pakistan increased to $14.473 billion by week ended September 02, 2022 as compared with reserves position of $13.403 billion a week ago i.e. August 26, 2022.

    READ MORE: Pakistan FX reserves drop to $13.4 billion

    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 $12.755 billion.

    The official reserves of State Bank of Pakistan (SBP) also recorded an increase of $1.103 billion to $8.8 billion by week ended September 02, 2022 as compared with $7.697 billion a week ago.

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

    During the week ended, SBP received US$ 1,166 million from IMF under EFF program. After accounting for external debt and other payments, SBP reserves increased by US$ 1,103 million to US$ 8,799.9 million.

    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 $11.346 billion.

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

    Previously, the SBP stated that it had received proceeds of $1.16 billion (equivalent of SDR 894 million) from IMF under the Extended Fund Facility (EFF) on August 31, 2022 which would be included in SBP’s foreign exchange reserve position for the week ending on September 02, 2022.

    The foreign exchange reserves held by commercial banks fell by $33 million to $5.673 billion by week ended September 02, 2022 as compared with $5.706 billion a week ago.

    READ MORE: Pakistan’s reserves plunge 43-month low to $13.56 billion