KARACHI: The US dollar has crashed against the Pakistani Rupee (PKR) and lost around PKR 16.21 since September 22, 2022 and is being trading at PKR 223.50.
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PKR maintains winning streak against dollar on 8th straight session
KARACHI: Pakistani Rupee (PKR) on Tuesday maintained winning streak against the US Dollar for eighth consecutive session.
The rupee gained 1.65 to end at PKR 225.64 to the dollar from previous day’s closing of PKR 227.29 in the interbank foreign exchange market.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
The local currency gained PKR 14.07 against the dollar during the last eight sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 225.64 on October 04, 2022.
Currency experts said that latest appreciation in rupee value was due to a statement of Finance Minister Ishaq Dar, who a day earlier said the PKR was undervalued and actual value of the dollar was less than PKR 200.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
Meanwhile, the international oil prices also crashed which helped the rupee to make gains.
It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessing a consecutive 15-session fall.
During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.
The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.
Currency experts said that the rupee recovered because of the contraction in the current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during the first two months (July – August) of the current fiscal year 2022/2023.
READ MORE: PKR makes recovery against dollar for fourth straight session
Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.
However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.
The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).
The local currency recorded 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 strengthens sharply to dollar during last three sessions
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.
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Pakistan import bill falls by 12.72% in 1QFY23
ISLAMABAD: The total import bill of Pakistan has declined by 12.72 per cent in the first quarter (July – September) of the fiscal year 2022/2023, according to data released by Pakistan Bureau of Statistics (PBS).
The import bill of the country was $16.33 billion in the first quarter of the current fiscal year as compared with $18.72 billion in the corresponding period of the last fiscal year.
READ MORE: Pakistan trade deficit narrows by 17% in 2MFY23
Exports of the country, however, exhibited a nominal 2 per cent growth to $7.12 billion during the quarter under review as compared with $7 billion in the same quarter of the last fiscal year.
The fall in import bill resulted in trade deficit contraction of 21.42 per cent. The trade deficit of the country fell to $9.21 billion during July – September 2022 as compared with the deficit of $11.72 in the same quarter of the last fiscal year.
READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022
In September 2022 the trade deficit contracted by 30.62 per cent on Year on Year (YoY) basis.
The trade deficit has been recorded at $2.88 billion in September 2022 when compared with $4.15 billion in the same month of the last year.
READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022
The import bill for the month under review recorded a decline of 20 per cent to $5.27 billion in September 2022 when compared with $6.56 billion in the same month of the last year.
Whereas, the exports of the country also recorded a decline of one per cent to $2.39 billion in September 2022 when compared with $2.41 billion in the same month of the last year.
READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months
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Dollar slips to PKR 225.50 in early interbank trading
KARACHI: US dollar slipped against Pakistani Rupee (PKR) by 1.79 to PKR 225.50 in early trading at interbank foreign exchange market on Tuesday.
The dollar is being traded at PKR 225.50 as compared with the last day’s closing of PKR 227.29 in interbank foreign exchange market.
Experts said that latest statement of Finance Minister Ishaq Dar helped the rupee to make gain.
The finance minister a day earlier said that the local unit is undervalued and actual value of dollar is below PKR 200. Furthermore, he vowed to bring down the value of the greenback in coming days.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
It is worth mentioning that the rupee is constantly gaining value against the dollar since the nomination and assumption the charge of finance ministry by Ishaq Dar.
The PKR a day earlier continued its upward journey against the greenback and strengthened for seventh consecutive session.
The rupee made a gain of PKR 1.16 to end at PKR 227.29 against the dollar as compared with last Friday’s closing of PKR 228.45 in the interbank foreign exchange market.
The local unit gained PKR 12.42 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 227.29 on October 01, 2022.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
It is worth mentioning that the local unit recorded the all-time low level of PKR 239.94 to the dollar on July 28, 2022. Although after the IMF deal the rupee appreciated against the dollar but following the disbursement of funds under Extended Fund Facility (EFF) the rupee again witnessed a steep decline to reach near to the record low at PKR 239.71 to the dollar on September 22, 2022.
READ MORE: PKR makes recovery against dollar for fourth straight session
Khurram Schehzad, a senior analyst, said the finance minister should not talk about setting currency parity, or at least not that openly, as its purely the prerogative of State Bank of Pakistan (SBP) and we have committed this in writing with the IMF that no one, at least from the ministry of finance will intervene in any way into the central bank matters.
“We should rather hold SBP accountable for achieving realistic currency parity (in line with fundamentals) as well as taming inflation (demand side), while managing the supply-side disruptions by a thorough strategy (farm to market management with necessary imports in time),” he added.
READ MORE: PKR strengthens sharply to dollar during last three sessions
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Dollar’s actual value less than PKR 200: Ishaq Dar
ISLAMABAD: Finance Minister Ishaq Dar on Monday said that the actual value of the US dollar is less than Pakistani Rupee (PKR) 200 and he vowed to bring down the exchange rate.
Talking to a private news channel, the finance minister the local currency is undervalued.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
It is worth mentioning that the rupee is constantly gaining value against the dollar since the nomination and assumption the charge of finance ministry by Ishaq Dar.
The PKR on Monday continued its upward journey against the greenback and strengthened for seventh consecutive session.
The rupee made a gain of PKR 1.16 to end at PKR 227.29 against the dollar as compared with last Friday’s closing of PKR 228.45 in the interbank foreign exchange market.
The local unit gained PKR 12.42 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 227.29 on October 01, 2022.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
It is worth mentioning that the local unit recorded the all-time low level of PKR 239.94 to the dollar on July 28, 2022. Although after the IMF deal the rupee appreciated against the dollar but following the disbursement of funds under Extended Fund Facility (EFF) the rupee again witnessed a steep decline to reach near to the record low at PKR 239.71 to the dollar on September 22, 2022.
READ MORE: PKR makes recovery against dollar for fourth straight session
Khurram Schehzad, a senior analyst, said the finance minister should not talk about setting currency parity, or at least not that openly, as its purely the prerogative of State Bank of Pakistan (SBP) and we have committed this in writing with the IMF that no one, at least from the ministry of finance will intervene in any way into the central bank matters.
“We should rather hold SBP accountable for achieving realistic currency parity (in line with fundamentals) as well as taming inflation (demand side), while managing the supply-side disruptions by a thorough strategy (farm to market management with necessary imports in time),” he added.
READ MORE: PKR strengthens sharply to dollar during last three sessions
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Pakistan petroleum sales plunge by 23% in 1QFY23
KARACHI: Pakistan sales of petroleum products have plunged by 23 per cent in first quarter (July – September) of the current fiscal year 2022/2023, official data revealed on Monday.
The petroleum sales fell to 4.49 million tons during the first quarter of the fiscal year 2022/2023 as compared with 5.86 million tons in the same quarter of the last year, according to Oil Companies Advisor Council (OCAC).
READ MORE: Pakistan high petroleum prices massively cut oil sales in July
The sales of HSD recorded 30 per cent decline to 1.46 million tons in the first quarter of the current fiscal year when compared with 2.1 million in the same quarter of the last fiscal year.
Furnace oil sales slipped by 23 to 0.98 million tons during the quarter under review as compared with 1.27 million in the same period of the last fiscal year.
Similarly, the sales of petrol fell by 21 per cent to 1.86 million tons during July – September 2022/2023 when compared with 2.35 million tons in the same period of the last fiscal year.
READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022
Whereas, the domestic sales of petroleum products plunged by 22 per cent Year on Year (YoY) basis in the month of September 2022.
The sales of petroleum products fell to 1.52 million tons in September 2022 when compared with 1.96 million tons in the corresponding month of the last year.
Analysts at Ismail Iqbal Securities attributed the sharp decline in petroleum sales to ongoing demand destruction following higher prices and overall economic slowdown.
The steep decline has been witnessed in sales of high speed diesel (HSD), which fell by 26 per cent during the period under review. The sales of HSD dropped to 0.52 million tons in September 2022 as compared with 0.71 million tons in the same month of last year.
READ MORE: New petroleum prices in Pakistan effective from September 21, 2022
Sales of furnace oil plummeted by 24 per cent to 0.31 million tons in the month under review as compared with 0.4 million tons in the same month of the last year.
Likewise, the sales of petrol fell by 22 per cent to 0.63 million tons in September 2022 as compared with 0.8 million tons in September last year.
READ MORE: New petroleum prices in Pakistan from September 01, 2022
According to Pakistan Bureau of Statistics (PBS) the petroleum products recorded massive jump in prices during the period.
The official data showed the prices of HSD, petrol and furnace oil recorded increase of 120.67 per cent, 96 per cent and 51.63 per cent, respectively YoY in September 2022.
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Honda suspends car production in Pakistan
KARACHI: Honda Atlas Cars (Pakistan) Limited on Monday announced to suspend production due to prevailing economic conditions in the country.
In a communication received by Pakistan Stock Exchange (PSX), the car manufacturer stated that considering the current economic situation of the country, the government had restored to stringent measures including minimizing the import of Completely Knocked Down (CKD) kits and raw materials, the company’s supply chain had also been disrupted by such measures.
READ MORE: Indus Motors to increase car prices to pass cost impact
“As a result, the company has also to rationalize its production and ultimately to shut down its plant from October 04, 2022 to October 11, 2022,” the company added.
Prior to this, other car manufacturers have also stop production due to same reasons.
Honda Atlas Cars (Pakistan) Limited is a joint venture between Honda Motor, Japan, and the Atlas Group, Pakistan.
READ MORE: PSMC offers free WagonR registration amid sales slump
The Company was incorporated on November 04, 1992 and listed on Pakistan Stock Exchange Limited.
The joint venture agreement was signed on August 05, 1993. The groundbreaking ceremony was held on April 17, 1993, and within a record time of 11 months, the construction and erection of machinery were completed.
The first car rolled off the assembly line on May 26, 1994. The official inauguration was honored by the then President of Pakistan, Late Sardar Farooq Ahmad Khan Leghari.
Nobuhiko Kawamoto, President of Honda Motor, Japan, and the late Yusuf H. Shirazi; Founder of Atlas Group were also present to grace the occasion.
READ MORE: Toyota stops car production in Russia
The Company enlisted on then Karachi & Lahore Stock Exchanges (now Pakistan Stock Exchanges) and Initial Public Offer (IPO) was made in November 1994.
On July 14, 1994, car booking started at six dealerships in Karachi, Lahore, and Islamabad.
Since then, the dealership network has expanded and now the Company has 37 3S (Sales, Service, and Spare Parts), 17 2S (Service and Spare Parts), and 5 1S (Spare Parts) authorized dealerships in Pakistan.
All dealerships are constructed in accordance with the standards defined by Honda the world over.
The Company started production in 1994, with the launch of the 5th generation of the Honda Civic in Pakistan.
READ MORE: Ferrari launches its first ever four-door car
Later on, the Company enriched the product line with the launch of Honda City in 1997 and Honda BR-V in 2017. The Company consistently increased production with the progress of the car market and to meet the growing customer demand.
A major plant expansion was done in 2006 and the production capacity was increased to 50,000 units/ year.
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PKR continues upward journey for seventh consecutive session against dollar
KARACHI: Pakistani Rupee (PKR) on Monday continued its upward journey against the dollar and strengthened for seventh consecutive session.
The rupee made a gain of PKR 1.16 to end at PKR 227.29 against the dollar as compared with last Friday’s closing of PKR 228.45 in the interbank foreign exchange market.
The local unit gained PKR 12.42 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 227.29 on October 01, 2022.
Market analysts said that the assumption of the charge of the finance minister by Ishaq Dar impacted the market positively.
A day earlier Ishaq Dar took oath as federal minister. Previously, he was known to effectively control the exchange rate in the last tenure of PML (N) government.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
Meanwhile, the international oil prices also crashed which helped the rupee to make gains.
It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessing a consecutive 15-session fall.
During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.
The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.
Currency experts said that the rupee recovered because of the contraction in the current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during the first two months (July – August) of the current fiscal year 2022/2023.
Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.
READ MORE: PKR makes recovery against dollar for fourth straight session
However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.
The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).
The local currency recorded 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 strengthens sharply to dollar during last three sessions
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.
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Pakistan’s headline inflation rises 23.2% in September 2022
ISLAMABAD: Pakistan’s headline inflation based on Consumer Price Index (CPI) increased to 23.2 per cent on year-on-year basis in September 2022 as compared to an increase of 27.3 per cent in the previous month and 9.0 per cent in September 2021.
On month-on-month basis, it decreased by -1.2 per cent in September 2022 as compared to an increase of 2.4 per cent in the previous month and an increase of 2.1 per cent in September 2021, according to data released by Pakistan Bureau of Statistics (PBS).
READ MORE: Pakistan’s headline inflation hits 47-year high in August 2022
CPI inflation Urban, increased to 21.2 per cent on year-on-year basis in September 2022 as compared to an increase of 26.2 per cent in the previous month and 9.1 per cent in September 2021.
On month-on-month basis, it decreased by -2.1 per cent in September 2022 as compared to an increase of 2.6 per cent in the previous month and an increase of 2.0 per cent in September 2021.
CPI inflation Rural, increased to 26.1 per cent on year-on-year basis in September 2022 as compared to an increase of 28.8 per cent in the previous month and 8.8 per cent in September 2021. On month-on-month basis, it increased by 0.2 per cent in September 2022 as compared to an increase of 2.2 per cent in the previous month and an increase of 2.3 per cent in September 2021.
READ MORE: Pakistan’s sensitive price inflation surges by 45%
Sensitive Price Indicator (SPI) inflation on YoY increased to 28.6 per cent in September 2022 as compared to an increase of 34.0 per cent a month earlier and an increase of 16.6 per cent in September 2021.
On MoM basis, it decreased by -1.4 per cent in September 2022 as compared to increase of 5.2 per cent a month earlier and an increase of 2.7 per cent in September 2021.
Wholesale Price Index (WPI) inflation on YoY basis increased to 38.9 per cent in September 2022 as compared to an increase of 41.2 per cent a month earlier and an increase of 19.6 per cent in September 2021.
READ MORE: Pakistan’s sensitive price inflation surges by 37.67%
WPI inflation on MoM basis increased by 1.4 per cent in September 2022 as compared to an increase of 3.1 per cent a month earlier and an increase of 3.2 per cent in corresponding month i.e. September 2021.
Measured by non-food non-energy Urban increased to 14.4 per cent on (YoY) basis in September, 2022 as compared to an increase of 13.8 per cent in the previous month and 6.4 per cent in September, 2021.
On (MoM) basis, it increased by 0.9 per cent in September, 2022 as compared to an increase of 1.8 per cent in previous month, and an increase of 0.4 per cent in corresponding month of last year i.e. September 2021.
Measured by non-food non-energy Rural increased to 17.6 per cent on (YoY) basis in September, 2022 as compared to an increase of 16.5 per cent in the previous month and 6.2 per cent in September, 2021.
READ MORE: Pakistan’s headline inflation may up 24% in July 2022
On (MoM) basis, it increased by 1.4 per cent in September, 2022 as compared to an increase of 1.8 per cent in previous month, and an increase of 0.5 per cent in corresponding month of last year i.e. September, 2021.
Measured by 20 per cent weighted trimmed mean Urban increased to 19.5 per cent on (YoY) basis in September, 2022 as compared to 21.4 per cent in the previous month and 8.7 per cent in September, 2021.
On (MoM) basis, it increased by 1.6 per cent in September 2022 as compared to an increase of 1.7 per cent in the previous month and an increase of 0.9 per cent in corresponding month of last year i.e. September, 2021.
Measured by 20 per cent weighted trimmed mean Rural increased to 24.4 per cent on (YoY) basis in September, 2022 as compared to 23.8 per cent in the previous month and by 8.2 per cent in September, 2021.
On (MoM) basis, it increased by 2.5 per cent in September, 2022 as compared to an increase of 1.8 per cent in the previous month and an increase of 1.2 per cent in corresponding month of last year i.e. September, 2021.
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FBR extends return filing date up to October 31, 2022
ISLAMABAD: Federal Board of Revenue (FBR) on Friday granted one month extension in filing of income tax return for tax year 2022.
The FBR issued Circular No. 16 of 2022 and extended date of filing of income tax returns for tax year 2022.
According to the circular the FBR extended the date for annual return filing up to October 31, 2022 from September 30, 2022.
Chambers and association have approached the FBR to extend the last date for filing income tax return, which is expiring on September 30, 2022.
READ MORE: FBR allows refund adjustment to facilitate return filing
Muhammad Idrees, President, Karachi Chamber of Commerce and Industry (KCCI) in a letter sent to the Finance Minister requested to issue to the FBR for extension in last date for filing income tax returns from September 30, 2022 to December 31, 2022 keeping in view the unusual situation emerging all over the country due to recent rainfalls and flash floods.
He stated that the chamber was constantly being approached by the members of the business and industrial community and also by the people belonging to different walks of life who wanted the last date to be extended till December 31, 2022.
“Due imposition of ban on imports which was followed by unusual situation all over the country emerging after torrential rainfalls and flashfloods, the taxpayers, particularly the members of the business & industrial community, are facing a lot of problems as a large portion of receivables from various parts of the country badly hit by floods are still pending,” he said.
READ MORE: FPCCI seeks statutory time for return filing after error removals
It was a well-known fact that the business, commercial, agricultural and all other activities in the flood-hit areas have come to a total halt which has created serious cashflow issues and it will take at least two more months to return to normalcy.
In this scenario, it has become inevitable to provide relief to loyal taxpayers in shape of extension in last date hence, keeping in view the ground realities, he requested the Finance Minister to order FBR to extend the last date for filing income returns to December 31, 2022 which will be widely welcomed by the loyal taxpayers from all over the country.
Besides, the return filing portal is also encountered with some glitches which the tax practitioners said those were not removed so far.
Karachi Tax Bar Association (KTBA) recently highlighted problems on the online return form. It said Column for adjustment of brought forward capital losses under the head of capital gains is not available in Income tax return form due to which tax on capital gain cannot be calculated correctly.
The Column of tax credit for specified industrial undertakings u/s 65G of the Income Tax Ordinance, 2001 is inadvertently available in the Tax Credits Annexure of income tax return for salaried individuals, which has no correlation with such tax credit.
READ MORE: FBR advised to extend tax return filing date for three months
Although the rate of tax on contract receipts under section 153 was reduced from 7.5 per cent to 7 per cent for Tax Year 2022, however, there is no column for such reduced rate in the return for the TY 2022 available on IRIS.
The draft of manual return forms for the Individuals and AOPs for the Tax Year 2022 was issued belatedly on August 26, 2022, whereas the final SRO. 1733(1)/2022 was issued on September 13, 2022 meaning thereby only 17 days of time has been allowed to file the manual returns, which is insufficient as provided under the law.
The IRIS portal is calculating incorrect tax liability on gain on sale of immovable properties in violation of section 37(1A) of the Income Tax Ordinance, 2001 which needs to be taken care off as soon as possible.
The IRIS portal is calculating incorrect tax on profit/yield on Bahbood Certificates/ Pensioner’s Benefit Account/ Shuhada Family Welfare Account in violation of clause (6) of Part-III, 2nd Schedule of the Income Tax Ordinance, 2001, which provides that tax shall not exceed 10 percent of such Profit/ Yield.
There lies no option list in drop downs country and currency under Code “7006” having description “Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.)” due to which a taxpayer remains unable to file the Foreign Income & Assets Statement under section 116A(1) of the Ordinance.
READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline
Opening wealth is being shown in “Reconciliation of Net Assets” Value of opening net assets is being shown under code ‘703002’ despite the fact that the taxpayer’s residency status is selected as “non-resident” for Tax Year 2022 after which, he should not be required to file the wealth statement including reconciliation of net assets.
The withholding rates on payment of Dividend @ 7.5 per cent, 15 per cent and 25 per cent, (under section 150 of the Ordinance) are appearing in the Income Tax Return Form of “Income for a person deriving income only from salary and other sources and the Column Code 64330052 (Dividend u/s 150 @25 per cent) is missing.
Proviso was inserted under section 22(2) of the Tax Ordinance by Finance Act, 2020 whereby depreciation on additions to fixed assets made after 01-Jul-2020 would be reduced by 50 per cent However, when entries related to written down values are entered in in depreciation schedule as opening values, the IRIS is calculating depreciation at 50 per cent on total values.