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  • Raw materials excluded from import banned items list

    Raw materials excluded from import banned items list

    ISLAMABAD: The ministry of commerce on Monday excluded raw materials from the list of items, which were banned through SRO 598(I)/2022.

    The ministry issued an office memorandum to issue clarification with regard to the SRO 598(I)/2022 dated May 19, 2022.

    Through the SRO 598(I)/2022, the federal government imposed ban on import of certain luxury and non-essential items.

    The ministry said that the decision has been taken in view of the concerns expressed by different trade organizations and the domestic industry regarding import of raw materials, intermediate goods and industrial equipment falling under Pakistan Customs Tariff (PCT) codes listed in the SRO.

    “The SRO 598(I)/2022 dated May 19, 2022 shall not apply on the import of raw materials, intermediate goods and industrial equipment/machinery required by industrial / manufacturing concerns and foreign grant-in-aid projects,” the ministry said.

    Prior to this, the ministry of commerce issued another clarification related to the banned imported items on May 26, 2022.

    Through this clarification, the ministry said that in order to address concerns of the citizenry and certain anomalies out of implementation of the said SRO, it is clarified:

    READ MORE: Banned items: FBR deputes officers 24X7 to facilitate passengers

    The SRO 598(I)/2022 dated May 19, 2022 shall not apply on import of goods for which an airway bill has been issued prior to the issuance of the said SRO.

    Import of following PCT codes description ‘others’ shall be exempted from the prohibition contained in the SRO if they are:

    PCT Code 2309.9000: Other than cat and dog food

    PCT Code 9405.1090: Energy savers.

  • Banned items: FBR deputes officers 24X7 to facilitate passengers

    Banned items: FBR deputes officers 24X7 to facilitate passengers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday deputed senior Customs officers at all the international airports of the country to facilitate passengers related to imported items that are banned by the government.

    The FBR through an order nominated focal persons at all the airports of the country. It said that in wake of the issuance of SRO 598(I)/2022, and to facilitate the genuine passengers arriving at all the international airports of the country, a list of officers has been issued regarding facilitation and compliant redressal.

    The list of officers and their contact number can be accessed here.

    The FBR directed that all the focal persons should ensure their availability over the respective telephone numbers round the clock.

    The government on May 19, 2022 imposed a complete ban on luxury and non-essential items in order to reduce import bill and to prevent rupee devaluation. In this regard, the ministry of commerce issued SRO 598(I)/2022 to impose the ban on imported items.

    READ MORE: Import ban not to apply on L/C issued before May 19, 2022

    The FBR on May 24, 2022 issued a press statement saying that Pakistan Customs has stepped up enforcement at all International Airports across Pakistan to prevent smuggling of items which have recently been banned by the Federal Government vide SRO No. 598(I)/2022, dated 19.05.2022 by amending Import Policy Order, 2022.

    This round-the-clock vigilance at International Terminals to prevent smuggling have already resulted in seizures of these items which were being brought in in the garb of bonafide passenger baggage.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    During scanning and checking at Jinnah International Airport (JIAP), Karachi on 23.05.2022, banned items such as food stuff, fruits, sanitary wares, used mobile phones, and branded shoes, in commercial quantities were recovered. The said items have been detained/seized under Section 168 of the Customs Act, 1969 for violation of SRO 598(I)/2022, dated 19.05.2022, (Import Policy Order, 2022) and Sections 16 and 139 of the Customs Act, 1969.

    While commending the efforts of Pakistan Customs, Chairman FBR has reiterated unflinching resolve of the FBR to further strengthen enforcement measures at all airports, seaports, and land border stations to ensure the prevention of smuggling of goods including newly banned items.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    However, Finance Minister and Chairman FBR have issued instructions not to bother bonafide passengers bringing in goods in noncommercial/small quantities for personal use and to facilitate such passengers at airports to the maximum extent possible as per legal provisions.

  • FBR transfers additional collectors, directors of Customs

    FBR transfers additional collectors, directors of Customs

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday May 30, 2022 transferred about 12 BS-19 officers of Pakistan Customs Service (PCS) with immediate effect.

    The FBR notified transfer and posting of following officers:

    01. Muteen Alam (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, KPK from the post of Additional Collector, Collectorate of Customs Enforcement, Lahore.

    READ MORE: FBR transfers BS-20 officers of Pakistan Customs Service

    02. Aftab Ullah Shah (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, Quetta from the post of Additional Collector, Collectorate of Customs Appraisement, Quetta.

    03. Nawabzada Kamran Khan Jogezai (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Internal Audit-North (customs), Islamabad from the post of Deputy Collector, Collectorate of Customs, Islamabad.

    READ MORE: FBR transfers IRS officers of BS-17 to BS-20

    04. Ms. Zehra Tahir Naqvi (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs, Jinnah International Airport (JIAP), Karachi from the post of Deputy Director, Directorate General of Customs Valuation, Karachi.

    05. Ms. Nausheen Riaz Khan (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Law & Prosecution (Customs), Karachi from the post of Deputy Director, Directorate of Intelligence & Investigation, FBR, Karachi.

    READ MORE: FBR tightens monitoring to prevent currency smuggling

    06. Ms. Aneeqa Afzal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Enforcement, Lahore from the post of Deputy Collector, Collectorate of Customs (Adjudication), Faisalabad.

    07. Ms. Amna Naeem (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate (HQs), Post Clearance Audit & Internal Audit, Karachi from the post of Deputy Director, Directorate of Post Clearance Audit (South), Karachi.

    08. Shah Faisal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Appraisement, Quetta from the post of Deputy Collector, Collectorate of Customs Appraisement, Quetta.

    READ MORE: FBR transfers senior IR officers in major reshuffle

    09. Mohammad Rehan Akram (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Cross Border Currency Movement, Directorate General of Intelligence & Investigation-FBR, Islamabad from the post of Deputy Collector, Collectorate of Customs Enforcement, Multan.

    10. Ms. Palwasha Syed (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore from the post of Deputy Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore.

    11. Ms. Haleema Qasim (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate General of Customs Valuation, Karachi from the post of Deputy Director, Directorate of Cross Boarder Currency Movement, Islamabad.

    12. Ms. Khansa Mahmood Chaudhry (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi Stationed at Gilgit-Baltistan from the post Deputy Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR extends working hours on May 30 – 31 for tax collection

    FBR extends working hours on May 30 – 31 for tax collection

    ISLAMABAD: The Federal Board of Revenue (FBR) on Saturday directed the offices of Inland Revenue to observe extended working hours to facilitate taxpayers in payment of duties and taxes.

    The FBR in an office memorandum directed all Large Taxpayers Offices (LTOs)/ Medium Tax Office (MTO)/ Corporate Tax Offices (CTOs)/ Regional Tax Offices (RTOs) to open and observed extended working hours till 20:00 hrs on Monday May 30, 2022 and till 22:00 hrs on Tuesday, May 31, 2022 to facilitate the taxpayers in payment of duties and taxes.

    READ MORE: FBR to install more scanners for customs clearance

    The FBR asked chief commissioners of Inland Revenue to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National bank of Pakistan (SBP) to ensure transfer of tax collected by these branches to the respective branches of the SBP on the same date to account for the same towards collection for the month of May 2022.

    READ MORE: FBR promotes Customs officers to BS-19

    The SBP has also issued a statement in regard. The central bank said that in order to facilitate the collection of government receipts / duties / taxes, it has been decided that the field offices of SBP Banking Services Corporation (SBP-BSC) and authorized branches of National Bank of Pakistan (NBP) will observe extended banking hours till 8:00 P.M. and 10:00 P.M. on 30th and 31st May, 2022 respectively.

    READ MORE: FBR drafts ID evidence rules to subscribe Pakistan Single Window

    Accordingly NIFT has been advised to arrange a special clearing at 8:00 P.M. on 31st May, 2022 (Tuesday) for same day clearing of payment instruments.

    All banks are advised to keep their concerned branches open on 31st May, 2022 (Tuesday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.

    READ MORE: Trade Information Portal of Pakistan

  • SBP directs banks to report digital fraud cases

    SBP directs banks to report digital fraud cases

    KARACHI: The State Bank of Pakistan (SBP) has directed banks to submit reports of all digital frauds and scams related to their account holders.

    The SBP issued a circular dated May 26, 2022 said it had been decided that all banks and microfinance banks (MFBs) would additionally submit data of all digital frauds and scams on monthly basis.

    “This will include all frauds and scams reported at call centers or through other means such as email, letters, etc. or otherwise detected by the banks/ MFBs themselves,” the central bank said.

    The banks/ MFBs shall report data as per the prescribed format to the Banking Supervision Department (BSD)-2 of SBP on monthly basis.

    The data shall be reported in soft copy in Microsoft Excel format (Annexure – A) within 10 days from the close of every month at email ID [email protected].

    The SBP directed the banks to submit reports of frauds and scams related to digital products. The report shall also include the cases of frauds related to: number of accounts/cases; mobile app/wallet (Android); mobile app/Wallet (IOS); E-Commerce Transactions/Merchant Payment Authorization (via USSD/Mobile App/Internet Banking; internet banking; USSD; Branchless Banking Agent Retail Application; ATMs; Point of Sale; and other digital channels.

    The banks are required to provide details of digital fraud including number of affected accounts and amount disputed. Further, related to digital scams, the banks are required to provide number of affected accounts and amount disputed.

  • Rupee ends month-long losing streak; dollar at Rs199.76

    Rupee ends month-long losing streak; dollar at Rs199.76

    KARACHI: The Pakistan Rupee (PKR) ended its almost month-long losing streak against the dollar on Friday May 27, 2022 by gaining Rs2.25 to end at Rs199.76 in the interbank foreign exchange market.

    The rupee make recovery after the government decided to increase prices of petroleum products to pave way for release of tranche under Extended Fund Facility (EFF) by the International Monetary Fund (IMF).

    READ MORE: Rupee makes historic low at Rs202 against dollar

    The exchange rate was at Rs185.63 on April 29, 2022 and since then the local unit continued its free fall to reach at the historic level of Rs202.01 to the dollar on May 26, 2022.

    The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.

    READ MORE: Dollar continues record-breaking journey to reach Rs201.92

    The State Bank of Pakistan (SBP) on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.

    Last week the government announced to impose a complete ban on imports to support balance of payment and help rupee to stable. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall.

    Pakistan’s foreign exchange (forex) reserves eased to $16.15 billion by week ended May 20, 2022. The foreign exchange reserves were at $16.161 billion a week ago i.e. May 13, 2022. The country’s foreign exchange reserves hit record high at $27.228 billion by week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $11.078 billion.

    READ MORE: Dollar hits record high at Rs201.41 despite monetary tightening

    The official reserves of the State Bank witnessed a decline of $178 million to $10.089 billion by week ended May 20, 2022 as compared with $10.164 billion a week ago. The SBP reserves reached to record high at $20.145 billion by August 27, 2021. The official reserves also fell by $10.056 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1 ½ months.

    READ MORE: Dollar hits fresh high at Rs200.93 as rupee free-fall continues

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s energy bill was $17.03 billion during the first nine 10 months (July – April) 2021/2022 as compared with $8.69 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.

  • Pakistan increases petroleum prices by Rs30 per liter

    Pakistan increases petroleum prices by Rs30 per liter

    ISLAMABAD: Pakistan on Thursday announced a massive increase in prices of all petroleum products by Rs30/- per liter in order to satisfy International Monetary Fund (IMF) for release of $1 billion tranche.

    Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

    READ MORE: Govt. decides to continue subsidy on petroleum prices

    Ismail said that the government had decided to increase the prices of petrol, high speed diesel and kerosene oil by Rs30/- liter each effective from midnight 12:00 AM on May 27, 2022.

    A day earlier, the IMF refused to continue its talks on bailout package under Extended Fund Facility (EFF) until Pakistan removed the subsidy on fuel and energy.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    Former PTI government in February 2022 decided to grant subsidy on petroleum products to ease inflationary pressure on masses.

    With the announcement the prices of petroleum products would be: Petrol Rs179.86 per liter; diesel Rs184.15; and kerosene oil Rs156.56.

    READ MORE: New government keeps petroleum prices unchanged

    On February 28, 2022, former Prime Minister Imran Khan announced reduction in prices of petroleum products and freeze the prices till June 30, 2022. This decision came with announce of multi-billion rupees subsidy to keep the fuel prices lower.

    This decision was strongly criticized by the legislators, who are now sitting on the treasury benches. The present government despite strong opposition to the decision to grant of subsidy on the petroleum prices, has no option but to keep the prices unchanged during its tenure of more than a month.

    However, after the refusal of the IMF to continue talks without removal of subsidy, the PML-N led government passed on heavy burden to the masses.

    READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies

  • Pakistan’s forex reserves ease to $16.15 billion

    Pakistan’s forex reserves ease to $16.15 billion

    KARACHI: Pakistan’s foreign exchange (forex) reserves eased to $16.15 billion by week ended May 20, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $16.161 billion a week ago i.e. May 13, 2022.

    READ MORE: Pakistan’s forex reserves fall to $16.37 billion

    The country’s foreign exchange reserves hit record high at $27.228 billion by week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $11.078 billion.

    READ MORE: Pakistan’s forex reserves dip to $16.55 billion

    The official reserves of the State Bank witnessed a decline of $178 million to $10.089 billion by week ended May 20, 2022 as compared with $10.164 billion a week ago.

    The SBP reserves reached to record high at $20.145 billion by August 27, 2021. The official reserves also fell by $10.056 billion after reaching record high.

    READ MORE: SBP forex reserves shrink to 1.69 months import cover

    The official reserves of the SBP have been reduced to provide import payment cover for only 1 ½ months.

    The foreign exchange reserves of held by commercial banks however inched up by $64 million to $6.061 billion by week ended May 20, 2022 as compared with $5.997 billion a week ago.

    Pakistan forex reserves inch up to $17.045 billion

  • Rupee makes historic low at Rs202 against dollar

    Rupee makes historic low at Rs202 against dollar

    KARACHI: The Pakistan Rupee (PKR) continued to bleed against the dollar on Thursday as exchange rate ended at Rs202 to the dollar at closing of interbank foreign exchange market.

    The rupee lost eight paisas against the dollar from previous day’s closing of Rs210.92 in the interbank foreign exchange market.

    READ MORE: Dollar continues record-breaking journey to reach Rs201.92

    Currency experts believed that delay in tranche under IMF bailout package had further deteriorated the local currency.

    Besides, political uncertainty remained the major reason for the rupee depreciation.

    The rupee for the last one year remained under pressure due to weak economic indicators including ballooning current account deficit, high import payments and depletion in foreign exchange reserves.

    The State Bank of Pakistan (SBP) on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent, considering the weak economic indicators.

    The SBP hiked the rate with arguments that after contracting by 0.9 percent in FY20 in the wake of Covid, the economy has rebounded much more strongly than anticipated, growing by 5.7 percent last year and accelerating to 5.97 percent this year, as per provisional estimates.

    READ MORE: Dollar hits record high at Rs201.41 despite monetary tightening

    “At 13.4 percent (y/y), headline inflation unexpectedly rose to a two-year high in April and has now been in double digits for six consecutive months. Inflation momentum was also elevated, at 1.6 percent (m/m), and core inflation rose further to 10.9 and 9.1 percent in rural and urban areas, respectively. On the external front, notwithstanding some encouraging moderation in the current account deficit during April, the Rupee depreciated further due both to domestic uncertainty as well as recent strengthening of the US dollar in international markets following tightening by the Federal Reserve.”

    The present government inherited with serious economic challenges including falling foreign exchange reserves and ballooning current account deficit. The PML-N led coalition government is negotiating with the IMF for bailout package amid these economic crisis.

    Last week the government announced to impose a complete ban on imports to support balance of payment and help rupee to stable. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall.

    READ MORE: Dollar hits fresh high at Rs200.93 as rupee free-fall continues

    Pakistan’s foreign exchange reserves fell to $16.161 billion by the week ended May 13, 2022. The foreign exchange reserves of the country were $16.373 billion by week ended May 6, 2022.

    The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $11.067 billion.

    The official reserves of the State Bank witnessed a decline of $146 million to $10.163 billion by the week ended May 13, 2022 as compared with $10.309 billion a week ago.

    The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by around $10 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.50 months.

    READ MORE: Dollar touches new peak at Rs200.14

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.

  • Dollar jumps to Rs202.50 in midday interbank trading

    Dollar jumps to Rs202.50 in midday interbank trading

    KARACHI: The US dollar appreciated by 58 paisas against the Pakistan Rupee (PKR) to make new high at Rs202.50 in midday trading at the interbank foreign exchange market on Thursday.

    The exchange rate ended at Rs201.92 to the dollar a day earlier in the interbank foreign exchange market.

    Currency experts said that delay in IMF next tranche further deteriorated the rupee value.foreign exchange market was under pressure due to deepening in political uncertainties.

    READ MORE: Dollar continues record-breaking journey to reach Rs201.92

    The State Bank of Pakistan (SBP) on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent, considering the weak economic indicators.

    The SBP hiked the rate with arguments that after contracting by 0.9 percent in FY20 in the wake of Covid, the economy has rebounded much more strongly than anticipated, growing by 5.7 percent last year and accelerating to 5.97 percent this year, as per provisional estimates.

    “At 13.4 percent (y/y), headline inflation unexpectedly rose to a two-year high in April and has now been in double digits for six consecutive months. Inflation momentum was also elevated, at 1.6 percent (m/m), and core inflation rose further to 10.9 and 9.1 percent in rural and urban areas, respectively. On the external front, notwithstanding some encouraging moderation in the current account deficit during April, the Rupee depreciated further due both to domestic uncertainty as well as recent strengthening of the US dollar in international markets following tightening by the Federal Reserve.”

    READ MORE: Dollar hits record high at Rs201.41 despite monetary tightening

    The present government inherited with serious economic challenges including falling foreign exchange reserves and ballooning current account deficit. The PML-N led coalition government is negotiating with the IMF for bailout package amid these economic crisis.

    Last week the government announced to impose a complete ban on imports to support balance of payment and help rupee to stable. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.

    READ MORE: Dollar hits fresh high at Rs200.93 as rupee free-fall continues

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall.

    Pakistan’s foreign exchange reserves fell to $16.161 billion by the week ended May 13, 2022. The foreign exchange reserves of the country were $16.373 billion by week ended May 6, 2022.

    The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $11.067 billion.

    The official reserves of the State Bank witnessed a decline of $146 million to $10.163 billion by the week ended May 13, 2022 as compared with $10.309 billion a week ago.

    READ MORE: Dollar touches new peak at Rs200.14

    The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by around $10 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.50 months.

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.