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  • FBR urged to make Google pin location must for retailers

    FBR urged to make Google pin location must for retailers

    KARACHI: The Federal Board of Revenue (FBR) has been urged to make Google pin location mandatory for Tier-1 retailers to stop misusing sales tax registration for point of sales (POS).

    Pakistan Business Council (PBC) in its proposals for budget 2022/2023 submitted to the FBR proposed to make Google pin location for Tier-1 retailers.

    READ MORE: Commercial importers misusing tax registration

    The PBC suggested measures for preventing misuse of POS by importers who use fake registration profile of retailer.

    In order to avail / misuse reduced rate of sales tax at 12 per cent on supplies of textile (which is available on supply of finished textile article through integrated POS system for retail outlets), some unscrupulous persons, after importing raw materials get tolling bills issued in their name from other manufacturers.

    Thereafter, such imported raw material is being sold as finished textile article through POS integrated with FBR system to avail reduced sales tax rate of 12 per cent.

    READ MORE: FBR urged to massively reduce tax rates for return filers

    FBR, view notification dated January 4, 2022 has already clarified that bulk supply through POS is tantamount to be treated as wholesale and hence would be chargeable to standard rate of 17 per cent sales tax.

    To prevent this unscrupulous practice, the following should be made mandatory for entities whose imports are over 70 per cent of their output and who have a POS facility:

    a) Should declare the number of their retail shops and

    b) Provide the square ft. retail space, detailed address, and Google pin location of all the retail stores

    c) Report per shop per month sales volume and invoices along with the monthly sales tax return.

    READ MORE: Commercial importers’ under invoicing destroying industry

    Earlier, the PBC also highlighted practice of commercial importers misusing tax registration to avail lower rates.

    Considering the fact that most of the commercial importers have been misusing the lower rate of tax otherwise available to manufacturers, therefore, FBR has reduced down the rate of tax at import stage to 1 per cent/2 per cent/5.5 per cent [on the basis of HS codes] for manufacturers as well as commercial importers.

    READ MORE: FBR’s database mining suggested for new taxpayers

    However, instead of making rate of tax at par for both commercial importers and manufacturers, PBC recommends to place system-based controls to track those commercial importers involved in under invoicing and importing under the garb of registration as manufacturers.

  • FBR chairman replaced despite massive collection growth

    FBR chairman replaced despite massive collection growth

    ISLAMABAD: The new coalition government led by Prime Minister Shahbaz Sharif soon after taking oath replaced the chairman of Federal Board of Revenue (FBR) despite massive growth in revenue collection during the current fiscal year.

    The government appointed Asim Ahmed as the new chairman of the FBR replacing Dr. Muhammad Ashfaq Ahmed.

    READ MORE: FBR surpasses collection target for July – April FY22

    Ashfaq Ahmed was appointed by the former PTI government on August 24, 2021. However, Asim Ahmed has been given the charge of the apex tax agency on April 27, 2022.

    Various quarters are now raising questions about the change of top brass at the FBR at a time when only two months left to complete the fiscal year 2021/2022.

    The FBR posted a massive growth in revenue collection during the tenure of Dr. Ashfaq Ahmed. The press release issued by the FBR is self explainatory about the performance of ex-FBR chairman.

    READ MORE: LTO Karachi posts 41% collection growth in 10 months

    The FBR collected net revenue of Rs 4,858 billion during July, 2021-April, 2022 of current Financial Year 2021-22, which has exceeded the target of by Rs 239 billion. This represents a growth of about 28.6 per cent over the collection of Rs 3,778 billion during the same period, last year.

    The net collection for the month of April, 2022 realized Rs 480 billion representing an increase of 24.9 per cent over Rs 384 billion collected in April, 2021.

    On the other hand, the gross collections increased from Rs 3,981 billion during July, 2020-April, 2021 to Rs 5,122 billion in current Financial Year July, 2021- April, 2022, showing an increase of 28.7 per cent.

    READ MORE: FBR issues sales tax refund rules for tractor manufacturers

    Finance Minister Miftah Ismail acknowledged the growth saying that FBR collected Rs 5122 billion in current FY (Jul 21- Apr 22) up from Rs 3981 billion during Jul 20-April 21, registering 28.7 per cent growth. Refunds of Rs Rs264 billion disbursed during July 2021-April 2022 compared to Rs 203 billion paid last year, up by 30.1 per cent. “The FBR team deserves appreciation”.

    A big factor in the increase however was increased imports. For instance, sales tax at import stage grew by 58 per cent while it declined by 2 per cent for local goods. “With the right mix of policies and tools I am sure this team will perform even better and to the expectations of the nation,” the finance minister added.

    READ MORE: Tax officials warned of strict action for private consultancy

    Shaukat Tarin, the former finance minister of PTI government, responded to the current finance minister, saying: “Miftah Bhai, if FBR has done such a good job, you should not have changed its Chairman.”

  • Pakistan’s inflation sharply up by 13.4% in April 2022

    Pakistan’s inflation sharply up by 13.4% in April 2022

    ISLAMABAD: Pakistan’s headline inflation based on Consumer Price Index (CPI) increased sharply by 13.4 per cent in April 2022, according to details released on Sunday.

    Pakistan Bureau of Statistics (PBS) said that CPI inflation General, increased by 13.4 per cent on year-on-year basis in April 2022 as compared to an increase of 12.7 per cent in the previous in March 2022 and 11.1 per cent in April 2021.

    READ MORE: Pakistan’s headline inflation increases by 12.7% in March

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 0.8 per cent in March 2022 and increase of 1.0 per cent in April 2021.

    CPI inflation Urban, increased by 12.2 per cent on year-on-year basis in April 2022 as compared to an increase of 11.9 per cent in the previous month and 11.0 per cent in April 2021.

    READ MORE: Food inflation rural increases by 14.6% in February 2022

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 0.7 per cent in the previous month and increase of 1.3 per cent in April 2021.

    CPI inflation Rural, increased by 15.1 per cent on year-on-year basis in April 2022 as compared to an increase of 13.9 per cent in the previous month and 11.3 per cent in April 2021.

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 1.0 per cent in the previous month and increase of 0.6 per cent in April 2021.

    READ MORE: Pakistan’s inflation climbs up 24-month high in January

    Sensitive Price Indicator (SPI) inflation on YoY increased by 14.2 per cent in April 2022 as compared to an increase of 13.0 per cent a month earlier and an increase of 21.3 per cent in April 2021.

    On MoM basis, it increased by 1.5 per cent in April 2022 as compared to increase of 0.6 per cent a month earlier and increase of 0.4 per cent in April 2021.

    READ MORE: Sales tax exempted on all petroleum products

    Wholesale Price Index (WPI) inflation on YoY basis increased by 28.1 per cent in April 2022 as compared to an increase of 23.8 per cent a month earlier and an increase of 16.6 per cent in April 2021.

    WPI inflation on MoM basis increased by 3.2 per cent in April 2022 as compared to increase of 3.9 per cent a month earlier and a decrease of -0.4 per cent in corresponding month i.e. April 2021.

  • FBR urged to massively reduce tax rates for return filers

    FBR urged to massively reduce tax rates for return filers

    KARACHI: The Federal Board of Revenue (FBR) has been urged to massively reduce the withholding tax rates for annual filers of income tax returns in order to ease burden on compliant taxpayers.

    Pakistan Business Council (PBC) in its proposals for budget 2022/2022 submitted to the FBR, recommended reduction in withholding tax rates for return filers.

    READ MORE: Commercial importers’ under invoicing destroying industry

    It said difference in withholding tax rate between filers and non-filers is nominal. Discrimination in tax treatment of filers and non-filers is commendable.

    “However, this has now become a revenue measure with no effort to use the data collected to increase documentation and broaden the tax base,” the PBC said.

    READ MORE: FBR’s database mining suggested for new taxpayers

    It recommended that the withholding tax regime should be simplified by reducing the number of withholding provisions.

    The current withholding tax guide available on FBR website is a 48-page document as of 2021, which clearly shows the complexity of the regime from compliance and ease of doing business aspects.

    READ MORE: PBC recommends restriction on cash above certain limit

    “There needs to be a significant distinction in the withholding income tax rates charged from non-filers as compared with the rates for filers. The rates of filers need to be reduced so that not only the burden of complaint taxpayers is reduced, but also the cost of doing business for non-complaint persons is increased.”

    Earlier, the PBC urged the tax authorities to monitoring under invoicing and mis-declaration by commercial importers as those are destroying local industry.

    READ MORE: FBR proposed to exempt withholding tax on telecom services

    It further said that information regarding values at which various custom check posts clear import consignments is not publicly available. This encourages unscrupulous importers to under-declare the value of consignments to evade government revenues.

    “Values at which import shipments are cleared through PRAL or CARE need to be publicly available,” the PBC recommended.

  • FBR surpasses collection target for July – April FY22

    FBR surpasses collection target for July – April FY22

    ISLAMABAD: The Federal Board of Revenue (FBR) has surpassed revenue collection target for the first 10 months (July – April) 2021/2022 (FY22) and collected Rs4.86 trillion, a statement said on Saturday.

    The provisional collection showed the FBR collected Rs4.86 trillion during the first ten months of the current fiscal year as against the target of Rs4.346 trillion. The FBR collected Rs239 billion above the revenue collection target.

    READ MORE: March collection up over 20% amid political unrest: FBR

    The revenue body also posted a growth of 28.6 per cent to collect Rs4.86 trillion during the period under review as compared with the revenue of Rs3.778 trillion in the corresponding months of the last fiscal year.

    READ MORE: FBR posts 30% revenue collection growth in 8MFY22

    The monthly collection showed an increase in collection of 25 per cent. The FBR collected Rs480 billion during April 2022 as compared with Rs383 billion in the same month of the last year.

    The FBR said that it had agreed to a target of Rs6.1 trillion with the International Monetary Fund (IMF). However, it was never made a target for revenue collection. The actual revenue collection target was Rs5.829 trillion for the fiscal year 2021/2022.

    READ MORE: FBR collects Rs2.92 trillion in first half of FY22

    The FBR would need Rs484.5 billion per month to achieve initial target of Rs 5.829 trillion and Rs 621 billion each in May and June to achieve revised target of Rs 6100 billion. The present government is determined to collect Rs.6100 in the current fiscal year.

    READ MORE: FBR eyes Rs6 trillion collection in current fiscal year

  • Dollar gains six paisas against PKR in interbank

    Dollar gains six paisas against PKR in interbank

    KARACHI: The US dollar gained six paisas against the Pakistan Rupee (PKR) on Saturday due to higher foreign currency demand on the last day before long holidays.

    The exchange rate ended at Rs185.69 to the dollar from previous day’s closing of Rs185.63 in the interbank foreign exchange market.

    READ MORE: Rupee gains 24 paisas to dollar in interbank

    Currency experts said that the market had seen dollar demand for import and other external payments ahead holidays for Eid ul Fitr.

    The government has announced holidays from May 02 to May 05, 2022 on account of Eid ul Fitr.

    The rupee during the outgoing week made recovery owing to resumption of talks with the IMF.

    The appreciation in rupee value to recent talks of Pakistan’s new finance minister with the management of the IMF regarding initiation of stalled loan program.

    READ MORE: Dollar appreciates 42 paisas against PKR

    Further, both the sides also agreed to remove unnecessary subsidy to ease burden on the government to spare funds for development projects.

    The exchange rate is remained volatile during past one month due to uncertain political situation and massive decline in foreign exchange reserves.

    READ MORE: Rupee recovers third straight day against dollar

    The recent measures of the State Bank of Pakistan (SBP), including raising the key policy rate by 2.5 per cent, have failed to support the local currency.

    Previously, the rupee made significant recovery for seven consecutive trading sessions after the central bank announced a sharp increase in key policy rate.

    The SBP on April 07, 2022 announced 2.5 per cent increase in interest rate to enhance the key policy rate to 12.25 per cent from 9.75 per cent. The rupee was at all-time low PKR 188.18 to the dollar on the day of monetary policy announcement.

    READ MORE: Rupee recovers 43 paisas to dollar in interbank

  • FBR issues sales tax refund rules for tractor manufacturers

    FBR issues sales tax refund rules for tractor manufacturers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday April 29, 2022 issued sales tax refund rules for agriculture tractor manufacturers.

    The FBR issued SRO 563(I)/2022 dated April 29, 2022 to insert new rules in the Sales Tax Rules, 2006.

    Refund to Agricultural Tractor Manufacturers

    READ MORE: FBR transfers senior IR officers in major reshuffle

    390. Application.— (1)This Chapter shall apply to existing and future refund claims as filed by the registered agricultural tractor manufacturers engaged in supply of agricultural tractors.

    (2) The provisions of these rules shall apply only if the incidence of tax sought to be refunded has not been passed on to the consumers.

    39P. Definition.— In this chapter, unless there is anything repugnant in the subject or context,-

    (a) “agricultural tractor” means a tractor used by farmers or growers engaged in production of agricultural produce through tractor; and

    READ MORE: IR offices to observe extended working hours for collection

    (b) “eligible person” means manufacturer of agricultural tractors who supplies tractors to a person holding a valid proof of land holding such as agriculture pass book and copy of record of rights of agricultural land duly verified from Provincial Land Revenue Authorities.

    39Q. Condition on supplies of agricultural tractors.— Only eligible persons shall qualify for availing reduced rate under the Sr. No. 25 of Table-1 of the eighth schedule to the Sales Tax Act, 1990.

    39R. Filing of refund application.—The eligible person shall file a refund claim through STARR/RCPS system and refund application to the Commissioner Inland Revenue having jurisdiction, along with the following documents, namely:—

    (a) a copy of tax paid and e-filed sales tax return;

    (b) an undertaking affirming the genuineness of refund as per Sales Tax Act, 1990 and relevant rules made thereunder;

    (c) a revolving bank guarantee valid for at least one hundred and twenty days issued by a scheduled bank, to the satisfaction of the Commissioner Inland Revenue having jurisdiction of an amount not less than the average monthly refund claim during last twelve months; and

    (d) name, CNIC of buyers along with valid proof of land holding, ledger of already purchased agricultural tractors against each buyer.

    39S. Pre-refund audit.— Where the processing officer or the officer-in-charge is of the opinion that any further inquiry or audit is required in respect of refund claim or for any other reason to establish genuineness and admissibility of the claim, he may make or cause to make such inquiry or audit as deemed appropriate, after seeking approval from the concerned Additional Commissioner and inform the refund claimant accordingly. Audit under this rule shall be completed within thirty days of initiation of the proceedings.

    39T. Refund of input tax.— The refund of admissible excess input tax shall be allowed and issued within seven days of the completion of proceedings initiated under rule 39S and in case no pre-refund audit is conducted, within fifteen days of filing of the refund claim. In any case the refund of admissible excess input tax under these rules shall not be processed through FASTER module.

    39U. Filing of complete refund claim.— Within fifteen days of the sanctioning of refund, the eligible person shall file a complete refund claim along with the requisite supportive documents prescribed under Chapter V of the Sales Tax Rules, 2006.

    39V. Post Refund Audit.— Post refund audit of the refund claims processed under these rules shall be carried out by the concerned division based on the documents submitted by the eligible person and any other relevant documents called by the concerned officer to ascertain the admissibility and genuineness of the refund processed and issued under rule 39T. The proceedings under this rule shall be concluded within sixty days of filing of a complete refund claim by the refund claimant under rule 39U.

    39W. Cost Audit.— In order to determine that the incidence of excess input tax claimed as refund under these rules by an eligible person has not been passed on to the consumers,

    (a) annual cost audit will be conducted by a Cost Accountant authorized by the Board; and

    (b) cost audit for a tax year shall be conducted on the basis of twelve sales tax returns for the tax year, documents filed for refund under these rules, and any other documents called by the Cost Accountant.

    39X. Amount if found inadmissible.— In case any amount already sanctioned and paid is found inadmissible, the same shall be recovered within seven days of completion of proceedings initiated under rule 39V by encashing the bank guarantee to the extent of adjudged liabilities.

    39Y. Section 8B not applicable.— The provisions of sub section (1) of section 8B of the Sales Tax Act, 1990 shall not be applicable on refund claims of admissible excess input tax filed under these rules.

    39Z. Repeal.— The refund claims of Recognized Agricultural Tractor Manufacturers Rules, 2012 are hereby repealed.”

  • FBR transfers senior IR officers in major reshuffle

    FBR transfers senior IR officers in major reshuffle

    ISLAMABAD: The Federal Board of Revenue (FBR) has transferred senior officers of Inland Revenue Service (IRS) following change of its chairman.

    The new government appointed Asim Ahmad as FBR chairman, who assumed the charge on April 27, 2022. Asim replaced Dr. Muhammad Ashfaq Ahmed.

    After this key transfer, the FBR made major reshuffle by notifying transfers and postings of senior IRS officers.

    READ MORE: IR offices to observe extended working hours for collection

    The FBR notified transfers of the following officers of BS-19 and BS-20:

    01. Aqeel Ahmed Siddiqui (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, Benami Zone-III, Karachi from the post of Commissioner Inland Revenue (Appeals-V), Karachi.

    The officer will assume charge after charge relinquishment of Najeeb Ahmad Memon, proceeding on NMC w.e.f 09.05.2022.

    02. Adnan Inamullah Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (WHT) Regional Tax Office, Islamabad from the post of Commissioner, (WHT) Regional Tax Office, Sargodha.

    03. Ms. Humaira Maryam (Inland Revenue Service/BS-20) has been transferred as Commissioner Inland Revenue, (Audit-I) Corporate Tax Office, Lahore from the post of Commissioner, (Legal) Corporate Tax Office, Lahore.

    The officer will assume charge of the post on charge relinquishment of Ms. Laila Ghafoor, proceeding on NMC w.e.f 09.05.2022.

    READ MORE: Asim becomes 32nd FBR chairman

    04. Dr. Erfa Iqbal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Legal) Corporate Tax Office, Lahore from the post of Chief, (Legal-II) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad.

    05. Zulfiqar Ahmad (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Admin Pool Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Enforcement) Large Taxpayers Office, Islamabad.

    06. Naeem Babar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement-II) Corporate Tax Office, Lahore from the post of Commissioner, (Chenab Zone) Regional Tax Office, Faisalabad.

    The officer will assume charge of the post on charge relinquishment of Ms. Iram Shabbir, proceeding on study leave w.e.f 15.05.2022.

    07. Ms. Shabana Mumtaz (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement) Large Taxpayers Office, Islamabad from the post of Commissioner, (Legal) Large Taxpayers Office, Islamabad.

    08. Saleem Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Chief (IMC), Federal Board of Revenue (HQ), Islamabad from the post of Commissioner, (Zone-I) Regional Tax Office, Sargodha.

    09. Mohy ud Din Ismail (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue AEOI Zone, Islamabad from the post of Commissioner, (ICTO Zone) Regional Tax Office, Islamabad.

    10. Rehan Safdar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Lyallpur Zone) Regional Tax Office, Faisalabad from the post of Commissioner, (WHT) Regional Tax Office, Faisalabad.

    READ MORE: POS service fee issue hampers sales tax return filing

    The officer is also assigned the additional charge of the post of Commissioner-IR (WHT), Regional Tax Office, Faisalabad, as per Rules.

    11. Sajjad Azhar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Legal) Large Taxpayers Office, Islamabad from the post of Commissioner, (WHT) Regional Tax Office, Islamabad.

    12. Abdul Hameed Shaikh (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals-V), Karachi from the post of Chief, (IR-Formations) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad.

    13. Ms. Sajida Kausar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Admin Pool Federal Board of Revenue (Hq), Islamabad from the post of Commissioner Inland Revenue AEOI Zone, Islamabad.

    14. Murtaza Siddique Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (SPR&S-I) Strategic Planning Reforms & Statistics Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Regional Tax Office, Gujranwala.

    15. Fazli Malik (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Chenab Zone) Regional Tax Office, Faisalabad from the post of Additional Commissioner, Regional Tax Office, Peshawar.

    16. Basit Saleem Shah (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (IR-Formations) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad.

    The officer is also assigned the additional charge of the post of Chief (OPS) (Analysis), Inland Revenue Operations, FBR (HQ), Islamabad, as per Rules.

    17. Muhammad Asif (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (WHT) Regional Tax Office, Sargodha from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Peshawar.

    READ MORE: IR officers’ bid to deny tax refund adjustment criticized

    18. Pervez Ahmad Shar (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (WHT) Regional Tax Office, Bahawalpur from the post of Additional Commissioner, Regional Tax Office, Sukkur.

    19. Ms. Adeela Yusuf Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (Reforms) Reforms & Modernization Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Rawalpindi.

    20. Attique-ur-Rehman Mughal (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Jhang Zone) Regional Tax Office, Faisalabad from the post of Additional Commissioner, Large Taxpayers Office, Lahore.

    21. Tauqeer Ahmad (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (POS) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Large Taxpayers Office, Islamabad.

    22. Rehmatullah Khan Durrani (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Zone-II) Regional Tax Office, Quetta from the post of Additional Commissioner, Regional Tax Office, Sukkur.

    23. Ihsan Ullah (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Islamabad from the post of Additional Commissioner, Regional Tax Office, Rawalpindi.

    24. Qadir Nawaz (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Faisalabad from the post of Additional Commissioner, Corporate Tax Office, Lahore.

    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.

  • IR offices to observe extended working hours for collection

    IR offices to observe extended working hours for collection

    The Federal Board of Revenue (FBR) has issued a directive for the extension of working hours at Inland Revenue (IR) offices on April 29 and 30, 2022 (Friday and Saturday) for revenue collection.

    (more…)
  • SBP forex reserves shrink to 1.69 months import cover

    SBP forex reserves shrink to 1.69 months import cover

    KARACHI: The official foreign exchange reserves of State Bank of Pakistan (SBP) reduced to provide only 1.69 months covers for import payment.

    According to details released by the SBP, the official reserves of the central bank fell by $328 million to $10.558 billion by week ended April 23, 2022 as compared with $10.886 billion a week ago.

    READ MORE: Pakistan forex reserves inch up to $17.045 billion

    The import bill of Pakistan was $6.425 billion in March 2022. On the basis of import bill in March 2022 the import cover is only for 1.69 months.

    The SBP attributed the decline in official foreign exchange reserves to external debt and other payments.

    The total foreign exchange reserves of the country declined by $377 million during the week under review.

    The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

    Meanwhile, the foreign exchange reserves held by commercial banks fell by $49 million to $6.11 billion by week ended April 23, 2022 as compared with $6.159 billion a week ago.