Category: Top stories

Find top stories in this section. Pakistan Revenue brings you the latest and most important news from Pakistan and around the world, keeping you informed with key updates and insights.

  • KE adjusts electricity bills under FCA relief package

    KE adjusts electricity bills under FCA relief package

    KARACHI: K-Electric, the power distribution utility for Karachi, has started providing relief under package to waive Fuel Charge Adjustment (FCA), which was announced by Prime Minister Shehbaz Sharif.

    According to a statement issued by the power utility on Tuesday, following PM’s Announcement of FCA’s relief package for the month of June, 1.8 million eligible electricity consumers across KE serviced territory in Karachi and adjoining regions are receiving benefit and being delivered adjusted bills for August at their doorsteps with extended due dates.

    READ MORE: Date extension demanded for electricity bills payment

    The announcement of June’s FCA relief has come in two parts, it was first announced for Non-ToU Residential Consumers having electricity consumption up to 200 units in June, and later it was extended to the same category of consumers with power consumption up to 300 units in June following the announcement by the Government of Pakistan.

    While the revised bills for August are being delivered to the consumers on their premises, it is also important to note that all those eligible consumers who have already paid their non-revised August bills will receive adjusted bills for the month of September.

    READ MORE: Power tariff hike termed disaster for industries

    Commenting on the matter, Spokesperson K-Electric said, “We are taking every possible measure to pass on the benefit to the qualifying consumers in line with the announcement made by the Honorable Prime Minister.

    Following the announcement of the relief package, our customer care centers operated for extended hours and remained open during the weekends for consumers’ convenience.

    However, to further ease the procedure for their benefit, we are also delivering the bills to consumers’ doorsteps so that they do not have to visit our centers physically. KE Customers may also download their bills via KE WhatsApp Service, KE Live App and from the company’s website.”

    While reiterating the eligibility criteria of the relief package, the Spokesperson further said, “June FCA’s relief applies only to Non-ToU residential consumers who have a power consumption equal to or less than 300 units.

    READ MORE: Pakistan petroleum sales slump by 24% in 2MFY23

    All the remaining electricity consumers, such as ToU residential consumers, Non-ToU residential consumers having power consumption exceeding 300 units, commercial, and industrial consumers do not qualify for the relief, and thus, are requested to timely pay their bills to avoid late payment surcharge.”

    “Our customer care platforms, including our call center 118, 8119 SMS service, and social media channels are also available 24/7 to answer any query from our consumers in this regard,” the Spokesperson further added.

    K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas.

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

    The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.

  • FBR transfers 153 IRS officers in major reshuffle

    FBR transfers 153 IRS officers in major reshuffle

    The Federal Board of Revenue (FBR) has undertaken a significant reshuffle in the Inland Revenue Service (IRS), announcing the transfers and postings of 153 officers in the latest round of administrative changes.

    (more…)
  • Pakistan trade deficit narrows by 17% in 2MFY23

    Pakistan trade deficit narrows by 17% in 2MFY23

    ISLAMABAD: Trade deficit fell by 17.13 per cent during first two months (July – August) 2022/2023 2MFY23, owing to fall in import bill, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The statistics revealed that the trade deficit for the period July – August 2022/2023 was at $6.27 billion as compared with the deficit of $7.56 billion in the same period of the last fiscal year.

    READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022

    Pakistan’s exports increased by 3.75 per cent to $4.76 billion during July – August 2022/2023 as compared with $4.58 billion in the corresponding period of the last fiscal year.

    On the other hand, import bill of the country fell to $11.03 billion during the first two months of the current fiscal year as compared with $12.15 billion in the same period of the last fiscal year, showing a decline of nine per cent.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

    However, trade deficit surged by 29 per cent to $3.53 billion in August 2022 when compared with the deficit of $2.74 billion in the month of July 2022.

    The exports recorded 11 per cent increased to $2.50 billion in August 2022 when compared with $2.25 billion in July 2022.

    READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months

    Meanwhile, the import bill also climbed up by 21 per cent to $6.03 billion in August 2022 when compared with $4.99 billion in the month of July 2022.

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

  • Pakistan estimates flood devastation to cost $10 billion

    Pakistan estimates flood devastation to cost $10 billion

    ISLAMABAD: The torrential rains and flash floods across Pakistan have inflicted an estimated loss of $10 billion to the national economy.

    Federal Minister for Finance and Revenue Miftah Ismail on Thursday said the current devastation of flood in Pakistan is estimated to cost $10 billion.

    READ MORE: Pakistan allows tax exemption on tomato, onion imports

    During flood, railway lines, roads, bridges, grid stations, power lines and houses etc. were badly damaged, which has to be rehabilitated, the minister added.

    The minister said that the United Nation has made a commitment of $160 million and USAID has announced the provision of 30 million dollars.

    Miftah added that in addition to this, friendly countries including the United Kingdom, European countries, Australia and Arab countries has provided financial support and also delivered aid materials.

    READ MORE: FBR announces tax exemptions for flood relief operation

    He said that rehabilitation is a long process which Pakistan will try to complete with the help of its own resources and friendly countries.

    The Minister said that the devastating magnitude of the flood was very high and it is a big challenge for us which “we will try our best to tackle.”

    In response to a question, he said that the federal and provincial governments are helping the flood victims and adding that the central government is disbursing money, for which a woman in every house is being given an amount of up to Rs 2500.

    He said that this amount will be disbursed to 4.2 million women across the country.

    READ MORE: Complaints against banks for refusing flood donations

    Miftah said that the federal and provincial governments and National Disaster Management Authority are currently busy helping the flood victims and the government is delivering food packets, mosquito nets, tents and medicines to the flood affected areas.

    He said that there is no shortage of food, but there is a shortage of onions and tomatoes.

    He said that “we are importing tomatoes and onions by reducing the import duty.”

    The Minister said that apart from this, several million tons of wheat are being imported and the duties on it are being reduced and are being ordered at subsidy rates.

    He said that the goods which will have shortages will be imported so that there is no shortage of essential goods.

    READ MORE: US provides Rs6.65 billion for Pakistan flood relief

    He said that this is a very challenging situation, crops have been damaged due to flood in Sindh province.

    Miftah said that cotton crops have been damaged up to 30% in Sindh province and sugarcane crop has been damaged up to 20 per cent.

    He said that wheat will be sown in the next two months and water draining out is a big challenge but it will be resolved so that the farmers can sow their crops.

    In response to a question, he said that the government is considering giving incentives to farmers and banks will relax the loans of farmers so that they can cover their losses.

  • FBR invites proposals for new retailers tax scheme

    FBR invites proposals for new retailers tax scheme

    ISLAMABAD: The Federal Board of Revenue (FBR) is formulating new tax scheme for retailers and in this regard the authority has invited proposals from stakeholders.

    The Chairman FBR invited proposals regarding the features of the proposed tax scheme that would serve the purpose of facilitating filing of income tax returns as well as ensuring revenue for the country.

    READ MORE: Pakistan amends laws to tax retailers

    The government has withdrawn the fixed tax on retailers through the recently promulgated Ordinance. Any new scheme of tax on retailers will be planned and implemented in consultation with the traders.

    The Chairman FBR held a detailed meeting with the representatives of traders from all across the country at the FBR House Islamabad on Thursday afternoon. About 21 representatives of Markazi Tanzeem e Tajiraan Pakistan attended the meeting and some participants joined through video link.

    READ MORE: FBR allows tax refund deducted through electricity bills

    The traders appreciated the initiative of active consultative approach taken by the FBR and put forth various suggestions on the issue.

    Earlier on August 25, a meeting with the representatives from all across Pakistan under All Pakistan Anjuman e Tajiraan was also held by the Chairman FBR in Islamabad.

    READ MORE: Pakistan decides to roll back fixed tax scheme

    While addressing the participants of the two meetings, the Chairman FBR resolved to keep follow-up meetings at the FBR headquarters and also at the regional level so that, through consultation and consensus, a feasible and workable scheme of taxation for retailers & traders is evolved.

    The traders were requested to make in-house deliberations amongst themselves and firm up their suggestions for the future tax scheme to be rolled out next month.

    The next round of meetings will be held with the traders’ bodies next week.

    READ MORE: FTO investigates tax collection through electricity bills

  • Pakistan’s headline inflation hits 47-year high in August 2022

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

    ISLAMABAD: The headline inflation in Pakistan has recorded 47-year at 27.3 per cent in August 2022. This is a 47-Year high after 1975 and has crossed peak levels of global financial crisis 2008 of 25.3 per cent, according to Fahad Rauf, analyst at Ismail Iqbal Securities.

    Pakistan Bureau of Statistics (PBS) on Thursday issued the data of Consumer Price Index (CPI) stating that it increased by 27.3 per cent on year-on-year basis in August 2022 as compared to an increase of 24.9 per cent in the previous month and 8.4 per cent in Aug 2021.

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

    On month-on-month basis, it increased by 2.4 per cent in August 2022 as compared to an increase of 4.3 per cent in the previous month and an increase of 0.6 per cent in August 2021.

    CPI inflation Urban, increased by 26.2 per cent on year-on-year basis in August 2022 as compared to an increase of 23.6 per cent in the previous month and 8.3 per cent in August 2021.

    On month-on-month basis, it increased by 2.6 per cent in August 2022 as compared to an increase of 4.5 per cent in the previous month and an increase of 0.5 per cent in August 2021.

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

    CPI inflation Rural, increased by 28.8 per cent on year-on-year basis in August 2022 as compared to an increase of 26.9 per cent in the previous month and 8.4 per cent in August 2021.

    On month-on-month basis, it increased by 2.2 per cent in August 2022 as compared to an increase of 4.2 per cent in the previous month and an increase of 0.7 per cent in August 2021.

    Sensitive Price Indicator (SPI) based inflation on YoY increased by 34.0 per cent in August 2022 as compared to an increase of 28.2 per cent a month earlier and an increase of 15.9 per cent in August 2021.

    READ MORE: Pakistan’s headline inflation may up 24% in July 2022

    On MoM basis, it increased by 5.2 per cent in August 2022 as compared to increase of 7.3 per cent a month earlier and an increase of 0.7 per cent in August 2021.

    Wholesale Price Index (WPI) based inflation on YoY basis increased by 41.2 per cent in August 2022 as compared to an increase of 38.5 per cent a month earlier and an increase of 17.1 per cent in August 2021.

    WPI inflation on MoM basis increased by 3.1 per cent in August 2022 as compared to an increase of 2.0 per cent a month earlier and an increase of 1.2 per cent in corresponding month i.e. August 2021.

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

  • Pakistan allows tax exemption on tomato, onion imports

    Pakistan allows tax exemption on tomato, onion imports

    ISLAMABAD: Pakistan on Wednesday granted exemption of income tax and sales tax on imports of tomato and onion during next four months.

    In this regard, the Federal Board issued notifications in this regard. The FBR issue SRO 1639(I)/2022 to allow withholding income tax exemption on import of tomato and onion imported till December 31, 2022.

    READ MORE: FBR collects Rs948 billion as tax revenue during 2MFY23

    Similarly, another SRO 1640(I)/2022 was issued to allow sales tax exemption on import of tomato and onion during September – December 2022.

    Previously, on August 30, 2022, in a meeting at the Ministry of National Food Security and Research (MNFSR), it was decided that the Ministry will issue import permits of onion and tomatoes within 24 hours.

    The Ministry has also proposed to FBR to waive-off taxes and levies on import of onion and tomatoes.

    It is expected that this will be made effective on immediate basis. These steps are taken to ensure a supply of the essential commodity in the market and to stabilize the prices.

    READ MORE: FBR announces tax exemptions for flood relief operation

    According to the details, the importers will be allowed to import onion and tomatoes.

    Ministry of National Food and Security has directed the Department of Plant Protection (DPP) to facilitate the import and ensure that there are no hindrances for importers.

    MNFSR has taken on-board all the stakeholders with an aim to ensure a supply of the essential commodities to the consumers.

    Furthermore, a contact group to facilitate imports is created, where importers will be able to share their problems. While a team at Ministry of National Food Security will monitor the situation and will take necessary action for redressal.

    READ MORE: KTBA demands suspending further tax due to practical issues

    Ministry of National Food Security and Research has taken the above decisions to ensure that onion and tomatoes are available in the market at reasonable rates to the consumers.

    Pakistan Embassies in Iran, Afghanistan, UAE and other countries have been requested to assist imports. Ministry of National Food Security and Research, with stakeholders, will continue to take necessary steps to ensure food security in the country in the times when crops have been heavily damaged because of recent floods and rains.

    READ MORE: FBR gets 3.38 million active taxpayers by August 28, 2022

  • New petroleum prices in Pakistan from September 01, 2022

    New petroleum prices in Pakistan from September 01, 2022

    ISLAMABAD: Pakistan on Wednesday announced increase in prices of all petroleum products. These prices are implemented with effect from September 01, 2022.

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

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

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

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

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

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

    It is important to note that the government revised the prices in the wake of falling international oil prices and massive recovery in rupee value.

    The sources said that the government was striving to get loans under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF). The government met all the conditions and received $1.16 billion from the IMF after it’s executive board accorded approval on August 29, 2022.

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

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

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

    The benchmark Brent crude is about $100 dollars. Brent crude futures were at $97.40 per barrel in New York trade on August 10, 2022.

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

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

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

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

  • Pakistan receives $1.16 billion from IMF

    Pakistan receives $1.16 billion from IMF

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday received $1.16 billion from International Monetary Fund (IMF) under Extended Fund Facility.

    SBP in a Tweet said that it had received proceeds of $1.16 billion (equivalent of SDR 894 million) after the IMF Executive Board completed the combined seventh and Eight review under the EFF for Pakistan.

    READ MORE: IMF board allows $1.1 billion disbursement for Pakistan

    “This will help improve SBP’s foreign exchange reserves and will also facilitate realization of other planned inflows from multilateral and bilateral sources,” according to the Tweet.

    Earlier, on August 29, 2022 the executive board of the IMF completed the combined seventh and eighth reviews of the Extended Arrangement under the EFF for Pakistan.

    READ MORE: Pakistan may face food security due to flash floods

    The Board’s decision allows for an immediate disbursement of SDR 894 million (about $1.1 billion), bringing total purchases for budget support under the arrangement to about $3.9 billion.

    The EFF was approved by the Executive Board on July 3, 2019 for SDR 4,268 million (about $6 billion at the time of approval, or 210 percent of quota).

    READ MORE: SBP issues IBAN list for donations to PM flood relief fund

    In order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board approved an extension of the EFF until end-June 2023, rephasing and augmentation of access by SDR 720 million that will bring the total access under the EFF to about $6.5 billion.

    READ MORE: Flash floods affect internet services in Pakistan

  • Dollar slips to PKR 218.75 at interbank closing on August 31, 2022

    Dollar slips to PKR 218.75 at interbank closing on August 31, 2022

    KARACHI: The US dollar slipped to Pakistan Rupee (PKR) 218.75 at the closing of interbank foreign exchange market on Wednesday.

    The exchange rate witnessed an appreciation of Rs1.37 to end at Rs218.75 to the dollar from previous day’s closing of Rs220.12 in the interbank foreign exchange market.

    READ MORE: Dollar falls to PKR 220.12 at interbank closing on August 30, 2022

    Currency experts said that the market was remained optimistic due to resumption of bailout package by the International Monetary Fund (IMF).

    On August 29, 2022, the executive board of the IMF completed its Seventh and Eighth review for Pakistan under the Extended Fund Facility (EFF) which is likely to lead to the release of $1.1 billion tranche. This will take total disbursement by IMF under the EFF program to $3.9 billion to Pakistan and will help support foreign exchange reserves of the country.

    The rupee fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

    READ MORE: Dollar strengthens to PKR 221.92 amid political uncertainty

    The currency market witnessed a non-stop depreciation in rupee value since the government lifted the ban on import of luxury and non-essential items. Besides, the prices of international oil are also seeing a rising trend.

    The government on August 20, 2022 withdrew the ban on import of luxury and non-essential items. The government on May 19, 2022 imposed this ban in the wake of massive depreciation in rupee value and significant depletion of foreign exchange reserves.

    The rupee witnessed a continuous decline against the dollar since the government lifted the ban. The local currency depreciated continuously during the week (August 22 – August 26) and fell Rs6.01 or 2.8 per cent during the period.

    The currency experts said that the vertical decline in foreign exchange reserves also put pressure on rupee value.

    READ MORE: Dollar surges to PKR 220.66 ahead IMF board meeting

    Pakistan’s foreign exchange reserves fell by $91 million to $13.522 billion by the week ended August 19, 2022. The foreign exchange reserves of the country were at $13.613 billion a week ago i.e. August 12, 2022.

    The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.703 billion.

    READ MORE: Pakistani Rupee falls for 4th day; dollar climbs up to Rs219.14

    The official foreign exchange reserves of the State Bank witnessed a decline of $87 million to $7.81 billion by the week ended August 19, 2022 as against $7.897 billion a week ago.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by the week ended August 27, 2021. Since then the official reserves of the SBP declined by $12.336 billion.