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  • Dollar falls for ten straight days against Pakistani Rupee; ends at Rs213.98

    Dollar falls for ten straight days against Pakistani Rupee; ends at Rs213.98

    KARACHI: The US dollar continued to fall against the Pakistani Rupee (PKR) for ten straight trading days on Monday to end at Rs213.98 in the interbank foreign exchange market.

    The exchange rate recorded a gain of Rs1.51 to end at Rs213.98 against the dollar from last Friday’s closing of Rs215.49 in the interbank foreign exchange market.

    READ MORE: Dollar plummets to Rs215.49 against Pakistani Rupee on August 12, 2022

    The local units gained about Rs25.96 or 10.82 per cent during past nine trading days. The rupee is continuously making recovery against the green back since making a historic low of Rs239.94 to the dollar on July 28, 2022.

    Currency experts said that reports of renewal of Saudi financial assistance helped to improve sentiments in the currency market.

    Further, Pakistani authorities are confident about release of $1.2 billion tranche by the International Monetary Fund (IMF) in next few days.

    READ MORE: Dollar continues to fall against PKR; ends at Rs218.88

    Besides, they said that the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.

    It is worth mentioning that the foreign exchange reserves of the country depleted massively.

    Pakistan’s foreign exchange reserves have declined 43-month low at $13.56 billion by week ended August 05, 2022. The foreign exchange reserves of country fell by $648 million as those were $14.21 billion a week ago i.e. July 29, 2022.

    READ MORE: Rupee jumps to Rs221.91 against dollar

    Pakistan’s foreign exchange reserves were seen at $13.597 billion on January 2019. 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 $13.668 billion.

    However, the recent recovery in rupee value may be attributed to the efforts of the central bank.

    The State Bank of Pakistan (SBP) initiated inspection against the exchange companies on August 01, 2022. On August 2, 2022, the SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.

    The central bank also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

    READ MORE: Pakistani rupee extends gain to dollar for sixth session

    The dealers said that after assurance from the International Monetary Fund (IMF) that Pakistan had met all the requirement for the disbursement of $1.2 billion tranche under Extended Fund Facility (EFF).

    The currency experts said that the rupee was also supported by reduction in trade deficit during the first month of the current fiscal year.

    The trade deficit narrowed by 18.33 per cent to $2.62 billion for the month of July 2022 as compared with the deficit of $3.23 billion in the same month of the last year.

    READ MORE: Dollar plunges to Rs226.15 at interbank closing on August 4, 2022

    The trade deficit was mainly contracted due to 12.8 per cent decline in import bill during the month under review. The import bill of the country was reduced to $4.86 billion in July 2022 as compared with $5.57 billion in the same month of the last year.

  • Pakistan issues Rs75 banknote to celebrate Independence Day

    Pakistan issues Rs75 banknote to celebrate Independence Day

    KARACHI: State Bank of Pakistan (SBP) on Sunday issued Rs75 commemorative banknote to celebrate 75th Independence Day.

    Acting Governor State Bank of Pakistan (SBP) Dr. Murtaza Syed unveiled the Rs75 Commemorative Banknote to mark the 75 years of Pakistan’s Independence in a graceful ceremony held at the SBP Museum, Karachi on August 14, 2022.

    He also inaugurated the Roshan Pension Plan (RPP) to augment the lifestyle banking under Roshan Digital Account (RDA) initiative for overseas Pakistanis.

    READ MORE: SBP automates verification of refinance claims

    Governor Dr. Murtaza Syed commenced the formal proceedings by hoisting the national flag in the presence of jubilant officers of the Bank and their families followed by playing of national anthem.

    Dr. Murtaza Syed unveiled the design of Rs75 Commemorative Banknote. He noted that while issuance of coins and postage stamps is a regular and recurring feature to mark days of national importance, it is relatively rare that the SBP issues a commemorative banknote.

    It is worth noting that the Rs75 Commemorative Banknote is the second such banknote to be issued by the SBP.

    READ MORE: Interest rates on export, business loans enhanced to 10%

    Earlier, the SBP issued the first and so far the only commemorative banknote in 1997 to mark the Golden Jubilee of Pakistan’s Independence. He also elaborated the features of the Banknote.    

    Paying tribute to the overseas Pakistanis for their relentless contributions towards the country, Governor (A) also inaugurated the Roshan Pension Plan (RPP) scheme, as a part of SBP’s resolve to augment the lifestyle banking under RDA initiative that is being added to the RDA product suite.

    He said the overseas Pakistani’s can now avail the benefits of financial planning for their post-retirement life in Pakistan through RPP and enjoy exclusive pension plan.

    READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%

    Soft launch of the product will start from August 15, 2022 with collaboration of RDA banks and Asset Management Companies.

    Dwelling on the latest economic developments and challenges faced by the economy, Dr. Syed shared his thought-provoking views with the audience.

    From the onset he separated on-ground facts from negative fake news making rounds on social media, which projected a doomsday scenario for Pakistan and advised citizens to not pay heed on such rumors.

    He spoke on forthcoming IMF bailout package and Pakistan’s prospects amidst troubled economic scenario internationally.

    READ MORE: PHMA cries foul on gas suspension to textile industry

    The Governor brushed aside perception that Pakistan’s economy was in dire straits and said that economically weak and developing economies may undergo drastic challenges in next 12 months and Pakistan is no exception.

    He reminded the audience that administrative infrastructure in countries like Pakistan is not very strong and resultantly, effects of price hike become more pronounced here.

    He hoped the crucial IMF bailout program would provide reprieve to the country and Pakistan will not be vulnerable as compared to the countries that do not have the IMF program.

    In the end, Dr. Syed inaugurated exhibition of rare photographs of Quaid e Azam in collaboration with Press Information Department (PID). Governor took keen interest in the photographs and appreciated the hard work of officials of PID and the SBP Museum.

    Features of Rs75 Banknote:

    The Banknote is predominantly green, complemented by white shades and some yellowish tone to enrich its appeal.

    The green color represents growth and development and derives inspiration from the Islamic identity of the country, whereas the white color emphasises the religious diversity of population.

    The distinctive feature of this Banknote is multiple portraits on its front side. The personalities to grace the banknote are Quaid-i-Azam Muhammad Ali Jinnah, Sir Syed Ahmed Khan, Allama Muhammad Iqbal and Mohtarma Fatima Jinnah.

    The Markhor and Deodar trees pictures on the reverse of the Banknote highlights our national commitment to address climate change and its repercussions.

    Both Markhor and Deodar trees serve as symbols of the devastations wrought by these changes and call for urgent measures to combat and reverse environmental degradation.

    Finance Department of the SBP bent over backwards for timely completion of this important project and I appreciate their efforts,’ said Dr. Syed.

  • Donald Blome visits Karachi to support US-Pakistan trade ties

    Donald Blome visits Karachi to support US-Pakistan trade ties

    KARACHI: The U.S. Ambassador Donald Blome visited Karachi on Saturday to support the US-Pakistan trade ties and further strengthen the economic partnership and bilateral trade.

    During the visit, U.S. Ambassador met with the Federal Minister for Maritime Affairs, the Chief Ministers of Balochistan and Sindh, the Administrator of Karachi, the Commander of Pakistan Navy Pakistan Fleet (COMPAK), government officials, financial and business leaders, trade and energy executives, and other business and commercial representatives.

    Donald Blome said that, “I am glad to be back in Karachi, a financial and commercial hub with tremendous energy.”

    He added that, “this year marks the 75th anniversary of U.S.-Pakistan bilateral relations and I look forward to strengthening U.S.-Pakistan partnerships in trade, investment, clean energy, health, security, education, and other mutually beneficial priority areas.”

    READ MORE: US calls for strengthening bilateral trade with Pakistan

    Ambassador Blome visited Port Qasim and met with Federal Minister for Maritime Affairs Faisal Subzwari.  The Ambassador expressed interest in how the United States can work with Pakistan to develop more linkages with U.S. port and maritime institutions.

    In the Ambassador’s meetings with Balochistan Chief Minister Abdul Quddus Bizenjo and Sindh Chief Minister Murad Ali Shah, he discussed political, economic, and security matters, as well as the ongoing relief efforts to address the tragic impact of the recent floods in both provinces.

    In his meeting with Sindh Chief Minister Shah, Ambassador Blome announced the United States is providing a new $1 million grant to build the resilience of agricultural communities in Sindh Province, and support Pakistan’s disaster management authorities in Sindh, Khyber Pakhtunkhwa, and Gilgit-Baltistan provinces, to better respond to future disasters.

    Ambassador Blome and Karachi Administrator Murtaza Wahab discussed the impact of flooding and other challenges in the city, as well as opportunities for growth including in the information technology sector.

    READ MORE: US Treasury sanctions virtual currency mixer Tornado Cash

    During the Ambassador’s meeting with COMPAK Vice Admiral Ovais Bilgrami, he further discussed relief efforts in flood-stricken areas and affirmed the importance of the U.S.-Pakistan military relationship and the desire to strengthen and expand our ongoing security cooperation.

    Ambassador Blome met with CEO of Cargill Pakistan Imran Nasrullah. The Ambassador also toured Excelerate’s floating storage and regasification unit at Port Qasim to emphasize our mutual interest in seeing Engro and Excelerate’s LNG joint venture succeed in Pakistan.

    He met other U.S and Pakistani business leaders to show his commitment to promoting U.S. business and investment in Pakistan through a wide range of effective services, products, and programs.

    The U.S. government is dedicated to expanding the ties between the Pakistani and American people to promote a more stable, secure, and prosperous future for both our nations.  Bilateral trade reached nearly $9 billion in 2021.

    READ MORE: Toyota Motors suspends production at Tsutsumi plant

    The United States is Pakistan’s largest single country export market and one of the largest sources of foreign investment, with U.S. direct investment growing by 50 percent in the past year.

    U.S. companies and their local affiliates are among Pakistan’s largest employers, with roughly 80 U.S. companies directly employing more than 125,000 Pakistanis, and more than one million Pakistanis employed indirectly. In 2021, U.S. firms invested up to $5.7 million in corporate social responsibility initiatives in Pakistan.

    One of the highlights of Ambassador Blome’s time in Karachi was a visit to the Lincoln Corner Karachi at Liaquat Memorial Library where he inaugurated the StartUp Lab! along with Minister of Sindh for Education, Culture, Tourism, Antiquities and Archives, Syed Sardar Ali Shah.

    “The StartUp Lab! is unique and a one-of-a-kind space in Pakistan where aspiring entrepreneurs with an idea for a startup business can turn ideas into reality using the latest technology and equipment for free,” noted Ambassador Blome.

    READ MORE: Xiaomi further improves rank to 266 in Fortune Global 500 list

    Ambassador Blome said, “The people-to-people ties between the United States and Pakistan are among our greatest strengths.  We are proud to partner with the Culture Department of Sindh to ensure young Pakistanis are prepared to face 21st century challenges.”

    The Lincoln Corner Karachi is one of 18 in the U.S. Mission to Pakistan’s network of American Spaces nationwide that offer free educational and cultural programs, as well as technology and information resources, to young Pakistani leaders.

    Ambassador Blome also visited Frere Hall in Karachi to appreciate its architecture and murals.  There, he was given a tour by representatives of NGO Sindh Exploration and Adventure Society (SEAS), Dr. Asma Ibrahim and Dr. Kaleemullah Lashari.

    SEAS received in 2021 a grant from the U.S. Ambassadors Fund for Cultural Preservation (AFCP) to renovate portions of Frere Hall.  This AFCP project further demonstrates our respect for Pakistan’s rich cultural heritage.

    In celebration of Pakistan’s National Minority Day, the Ambassador was honored to meet religious minority community leaders in Karachi to promote interfaith cooperation, religious tolerance, and diversity.

    He also visited the Mausoleum of the founder of Pakistan Quaid-e-Azam Muhammad Ali Jinnah and laid a wreath in honor of the founding father of Pakistan, ahead of Pakistan’s 75th Independence Day.

    Ambassador Blome said that, “It is a great honor to be here at the Mazar-e-Quaid to pay my respects and commemorate the legacy of Muhammad Ali Jinnah.  The United States shares Quaid-e-Azam’s vision of a unified Pakistan, at peace with itself and its neighbors, a Pakistan of religious tolerance, economic prosperity, and social inclusion.”

  • Pakistan Met office issues thundershower alert from August 14

    Pakistan Met office issues thundershower alert from August 14

    ISLAMABAD: Pakistan Meteorological Department (PMD) on Saturday issued warnings of thundershower and urban flooding in various parts of the country.

    In a statement, the Met Office informed a depression has developed in Arabian Sea which is likely to move towards west along Makran coast.

    “Due to this weather system monsoon currents are continuously penetrating in southern parts of the country,” it added.

    READ MORE: Pakistan to review petroleum prices amid rupee appreciation, falling global oil

    Another low pressure (LPA) is likely to approach Sindh on 16th August. Under the influence of this weather system:

    • Rain-wind/thundershower (with few heavy falls) is expected in Sindh, Balochistan, Punjab, Islamabad, Khyber Pakhtunkhuwa, Gilgit Baltistan and Kashmir from 14th to 16th August with occasional gaps.

    • Widespread rain-wind/thundershowers (with scattered heavy to very heavy falls) are expected in Sindh and Balochistan from 16th to 18th August with occasional gaps.

    READ MORE: Pakistan MET issues alert for heavy rains, flooding

    Possible Impacts:

    • Heavy Rains may generate urban flooding in Karachi, Thatta, Badin, Hyderabad, Dadu, Jamshoro, Sukkur, Larkana, Shaheed Benazirabad and Mirpurkhas from 14th to 18th August.

    • Flash flooding is expected in Qilla Saifullah, Loralai, Barkhan, Kohlu, Mosa Khel, Sherani, Sibbi, Bolan, Kalat, Khuzdar, Lasbella, Awaran, Turbat, Panjgur, Pasni, Jiwani, Ormara, Gwadar and hill torrents of Dera Ghazi Khan during the forecast period from 14th to 18th August.

    READ MORE: KATI seeks precautionary measures before rains

    • Heavy Rains may generate urban flooding in Rawalpindi/Islamabad, Peshawar, Nowshera, Mardan, Faisalabad, Lahore and Gujranwala on 14th (night) to 16th August.

    • Flash flooding is expected in local Nullahs of Islamabad/Rawalpindi, Shakargarh, Sialkot, Narowal, Abbottabad, Mansehra, Dir, Karak, Lakki Marwat, Bannu and Kashmir on 15th & 16th August.

    • Rainfall may trigger landslides in Kashmir, hilly areas of Khyber Pakhtunkhwa, Galiyat, Murree, Chillas, Diamir, Gilgit, Hunza, Astore, Ghizer and Skardu during the forecast period.

    READ MORE: SBP issues options to make donation in PM flood relief fund

    • Fisherman are advised to remain more cautious from 16th to 18th August.

    • Travelers and tourists are advised to remain more cautious during the forecast period.

    The met office advised all the concerned authorities to remain alert and to take necessary precautionary measure during the forecast period.

  • Pakistan, Türkiye sign preferential trade agreement

    Pakistan, Türkiye sign preferential trade agreement

    ISLAMABAD: Pakistan and Türkiye Friday signed the Preferential Trade Agreement (PTA) for enhancing trade in goods between the two countries.

    Prime Minister Shehbaz Sharif witnessed the signing of the PTA at a ceremony held at the PM Office, as the visiting Turkish Trade Minister Dr Mehmet Mus and Minister for Commerce Syed Naveed Qamar signed the accord.

    READ MORE: Banks not issuing forms for land trade with Turkey: FPCCI

    Commonly known as Trade in Goods Pact, the PTA includes comprehensive provisions on bilateral safeguards, balance of payment exceptions, dispute settlement, and periodic review of the agreement. Prime Minister in his remarks termed the agreement “a great moment and a milestone” in the brotherly and historic relations between Pakistan and Türkiye. He recalled that following his official visit to Türkiye in May, the untiring efforts of the ministries of both sides resulted in the signing of the agreement.

    READ MORE: Turkey eases COVID restriction for Pak travelers

    He said immense business opportunities existed between the two countries and expressed confidence that the accord would further explore the trade avenues in diverse sectors.

    The prime minister said Pakistan would continue to work with Türkiye on strengthening bilateral ties.

    Trade Minister Dr Mehmet Mus said the occasion marked a significant milestone which would contribute in a long way to further strengthening and expansion of trade ties.

    READ MORE: Ten-day quarantine must for Pakistanis arriving Turkey

    He said meeting expectations of all stakeholders was not easy, however added that dedication and step-by-step measures led to conclusion of the accord.

    He thanked PM Shehbaz Sharif for his leadership to seal the agreement for the betterment of the two countries and enhancing linkages between their business communities.

    The key highlights of the trade concessions offered by both sides under the agreement are as follows: (i) Türkiye had offered concessions to Pakistan on 261 Tariff Lines, which include key items of Pakistan’s export interest to Türkiye from both agriculture and the industrial sectors.

    READ MORE: Pak-Turkey agree to strengthen cooperation

  • Pakistan car sales drop 59% in July 2022

    Pakistan car sales drop 59% in July 2022

    KARACHI: The total sales of car in Pakistan have dropped by 59 per cent Month on Month (MoM) in July 2022.

    The sales are also included non-members of Pakistan Automotive Manufacturers Association (PAMA).

    READ MORE: Pakistan car sales surge 54 per cent in FY22

    Analysts at Topline Securities on Friday said Pakistan car sales (including sales of Non-PAMA members) clocked in at around 14,000 units down 59 per cent MoM primarily due to production issues, higher car prices resulting low purchasing power of consumers, and less working days due to Eid ul Adha holidays in Jul-2022.

    The car sales is also down by 52 per cent Year on Year (YoY).

    READ MORE: Toyota unveils all new Crown for first time

    Indus Motors (INDU) posted decline of 62 per cent MoM to 2,375 units primarily due to non-production days in the month of July 2022. Similarly, Hyundai sales was down by 89 per cent MoM to 201 units from 1,871 units in June 2022.

    Pak Suzuki Motors Company (PSMC) sales was down 58 per cent MoM in July 2022. All variant of company reported decline in the range of 57-95 per cent on MoM basis except for Alto where sales increased to 4,618 units from 1,216 units in June 2022, largely due to low base effect.

    Honda Atlas Car (HCAR) also recorded decline of 35 per cent MoM to 2,537 units in July 2022 led by decline in sales of City & Civic by 30 per cent MoM.

    READ MORE: Honda Motors to start pre-orders of ZR-V SUV by September 2022

    Amongst Tractors, Millat Tractors (MTL) recorded decline of 60 per cent MoM and 65 per cent YoY to 1,011 units . Al Ghazi Tractors (AGTL) recorded sales of 1,243 units, down 48 per cent MoM and 12 per cent YoY.

    Pakistan bike sales were down by 33 per cent MoM and 34 per cent YoY in July 2022. Atlas Honda (ATLH) recorded sales of around 80,000 units down 28 per cent MoM and 20 per cent YoY.

    Trucks & Buses sales were down 22 per cent MoM and 37 per cent YoY to 379 units in July 2022 primarily due to drop in transportation activities amid slowdown in overall economy.

    READ MORE: New tax rates on car registration from July 01, 2022

  • Dollar plummets to Rs215.49 against Pakistani Rupee on August 12, 2022

    Dollar plummets to Rs215.49 against Pakistani Rupee on August 12, 2022

    KARACHI: The US dollar plummeted by Rs3.39 against the Pakistani Rupee to Rs215.49 on Friday August 12, 2022 in interbank foreign exchange market.

    The rupee appreciated to Rs215.49 to the dollar from previous day’s closing of Rs218.88 in the interbank foreign exchange market.

    The local units gained about Rs24.45 or 10.19 per cent during past nine trading days.

    READ MORE: Dollar continues to fall against PKR; ends at Rs218.88

    Currency dealers said that the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.

    It is worth mentioning that the foreign exchange reserves of the country depleted massively.

    Pakistan’s foreign exchange reserves have declined 43-month low at $13.56 billion by week ended August 05, 2022. The foreign exchange reserves of country fell by $648 million as those were $14.21 billion a week ago i.e. July 29, 2022.

    READ MORE: Rupee jumps to Rs221.91 against dollar

    Pakistan’s foreign exchange reserves were seen at $13.597 billion on January 2019. 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 $13.668 billion.

    However, the recent recovery in rupee value may be attributed to the efforts of the central bank.

    The State Bank of Pakistan (SBP) initiated inspection against the exchange companies on August 01, 2022. On August 2, 2022, the SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.

    READ MORE: Pakistani rupee extends gain to dollar for sixth session

    The central bank also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

    The dealers said that after assurance from the International Monetary Fund (IMF) that Pakistan had met all the requirement for the disbursement of $1.2 billion tranche under Extended Fund Facility (EFF).

    The currency experts said that the rupee was also supported by reduction in trade deficit during the first month of the current fiscal year.

    READ MORE: Dollar plunges to Rs226.15 at interbank closing on August 4, 2022

    The trade deficit narrowed by 18.33 per cent to $2.62 billion for the month of July 2022 as compared with the deficit of $3.23 billion in the same month of the last year.

    The trade deficit was mainly contracted due to 12.8 per cent decline in import bill during the month under review. The import bill of the country was reduced to $4.86 billion in July 2022 as compared with $5.57 billion in the same month of the last year.

  • Pakistan’s reserves plunge 43-month low to $13.56 billion

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

    KARACHI: Pakistan’s foreign exchange reserves have declined 43-month low at $13.56 billion by week ended August 05, 2022.

    The foreign exchange reserves of country fell by $648 million as those were $14.21 billion a week ago i.e. July 29, 2022, the State Bank of Pakistan (SBP) said on Thursday.

    READ MORE: Pakistan’s foreign reserves dip to $14.21 billion

    Pakistan’s foreign exchange reserves were seen at $13.597 billion on January 2019.

    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 $13.668 billion.

    The official reserves of the State Bank also fell by $556 million to $7.83 billion by week ended August 5, 2022 as compared with $8.386 billion a week ago.

    READ MORE: Pakistan forex reserves deplete to $14.42 billion

    The SBP attributed the decline in foreign exchange reserves to external debt repayments.

    It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

    Further, the country is in negotiation with the IMF for release of next tranche under Extended Fund Facility (EFF) to boost its foreign exchange reserves.

    READ MORE: Pakistan’s forex reserves decline to $15.24 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 declined by $12.316 billion.

    The commercial banks held foreign exchange witnessed a decline of $92 million to $5.731 billion by week ended August 05, 2022 when compared with $5.82 billion a week ago.

    READ MORE: Pakistan’s forex reserves drop to $15.61 billion

    The sharp decline in foreign exchange reserves has resulted in free-fall of rupee value.

    The local currency ended historic low of Rs239.94 to the dollar at closing of interbank foreign exchange market on July 28, 2022. However, on the hope of inflows from the IMF and improved indicators the rupee rebounded in the month of August 2022.

    READ MORE: Pakistan’s forex reserves deplete to $15.74 billion

  • Dollar continues to fall against PKR; ends at Rs218.88

    Dollar continues to fall against PKR; ends at Rs218.88

    KARACHI: The US dollar continued to fall against the Pakistan Rupee (PKR) on Thursday and ended at Rs218.88 in the interbank foreign exchange market.

    The exchange rate witnessed an increase of Rs3.06 in the rupee value to end at Rs218.88 from previous day’s closing of Rs221.94 in the interbank foreign exchange market.

    READ MORE: Rupee jumps to Rs221.91 against dollar

    The local units gained about Rs21.06 or 8.78 per cent during past eight trading days.

    Currency dealers said that the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.

    The SBP initiated inspection against the exchange companies on August 01, 2022. On August 2, 2022, the SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.

    READ MORE: Pakistani rupee extends gain to dollar for sixth session

    The central bank also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

    The dealers said that after assurance from the International Monetary Fund (IMF) that Pakistan had met all the requirement for the disbursement of $1.2 billion tranche under Extended Fund Facility (EFF).

    The currency experts said that the rupee was also supported by reduction in trade deficit during the first month of the current fiscal year.

    READ MORE: Dollar plunges to Rs226.15 at interbank closing on August 4, 2022

    The trade deficit narrowed by 18.33 per cent to $2.62 billion for the month of July 2022 as compared with the deficit of $3.23 billion in the same month of the last year.

    The trade deficit was mainly contracted due to 12.8 per cent decline in import bill during the month under review. The import bill of the country was reduced to $4.86 billion in July 2022 as compared with $5.57 billion in the same month of the last year.

    The experts, however, expressed concerns over massive decline in foreign exchange reserves. They said that expected inflows from IMF would help the country’s external sector.

    READ MORE: Pakistani Rupee makes historic recovery; dollar ends at Rs228.80

  • FBR allows tax refund deducted through electricity bills

    FBR allows tax refund deducted through electricity bills

    KARACHI: The Federal Board of Revenue (FBR) has allowed tax refund deducted through electricity bills, sources said on Thursday.

    The sources said that electricity supply companies had started adjusting the amount deducted as sales tax on monthly bills of commercial connection holders.

    READ MORE: Pakistan decides to roll back fixed tax scheme

    In this regard the FBR circulated the recent decision of a committee regarding fixed tax regime for retailers.

    Sources in K-Electric, the power producing and supply company mainly for residents of Karachi, said that the utility was adjusting the electricity bills of those consumers who have days for due date in payment of electricity charges.

    Furthermore, those who had paid their bills along with sales tax will be adjusted in the next bill, the sources added.

    The power companies are making adjustment against the paid amount on the directives of the FBR, the sources further added.

    READ MORE: FTO investigates tax collection through electricity bills

    In order to review the fixed tax regime a meeting was held on August 04, 2022 at the ministry of finance to finalize the collection of sales tax through electricity bills.

    The meeting was presided over by Finance Minister Dr. Miftah Ismail. The meeting decided that the fixed tax scheme introduced through Finance Act, 2022 would be rolled back ab initio and the retailers would continue to pay taxes as per previous (pre-budget) mechanism and rates.

    The meeting decided that for the next three months i.e. July to September 2022, the previous tax rates would continue to apply on retailers.

    It was decided that the government would review the situation and would notify new tax rates effective from October 01, 2022.

    For reversal of fixed tax scheme, necessary legislation would be enacted by the FBR as soon as possible.

    The fixed tax rate was implemented and the FBR started collection through electricity bills effective from July 01, 2022. The power utility on the behalf of the FBR applied the fixed tax on all the commercial connections irrespective of nature of business, including service providers.

    The illogical application of fixed tax regime invited huge and cry from the several quarters, which forced the government to review its decision.

    READ MORE: Withdrawal of sales tax through electricity bills demanded

    Recently, the Federal Tax Ombudsman (FTO) launched investigation in a complaint received regarding sales tax collection through electricity bills.

    The FTO on July 29, 2022 issued notices to Secretary, Revenue Division, Chief Commissioner and Commissioner Inland Revenue Large Taxpayers Office (LTO) Karachi, in the complaint filed by Mrs. Fauzia Salman against illegal and unlawful collection of taxes through electricity bills by K-Electric Limited.

    READ MORE: Tax through electricity connections on retailers, service providers