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Two basic salaries announced for timely tax inquiry report

ISLAMABAD: Federal Board of Revenue (FBR) has announced an incentive scheme for its officials in completion and timely submission of inquiry reports, official sources said on Tuesday.

Under the incentive scheme up to two basic salaries have been announced for the authorized officer for submitting inquiry report up to 60 days from receipt of letter nominating inquiry officer/authorized officer.

The FBR has decided the incentive while observing that most inquiry officers were delaying the finalization of inquiries which lead to delay in conclusion of disciplinary proceedings against the officer/officials of FBR.

“This not only reflect poorly on the part of inquiry officer, authorized officer, authorized concerned but also puts the career of the accused officers in the state of limbo for longer periods,” the FBR said.

Therefore, with a view to encourage expeditious finalization of inquiries and with a view to prevent delays in finalization of inquires, the FBR chairman approved the incentive and punitive regime.

For inquiry officers/inquiry committees/fact finding inquiry officers/fact finding inquiry committees; for submitting quality reports to the satisfaction of the authorized officers/authorized concerned:

i. Two basic salaries to be given as incentive on submission of inquiry report up to 60 days from receipt of letter nominating inquiry officer / authorized officer.

ii. One basic salary to be given as incentive on submission of inquiry report up to 75 days from receipts of letter nominating inquiry officer/authorized officer.

iii. Half basic salary to be given as incentive on submission of inquiry report up to 90 days from receipt of letter nominating inquiry officer/authorized officer.

For authorized officer the incentive shall be one basic salary on disposal of inquiry report within 30 days from date of receipt of inquiry report.

For authority the incentive shall be one basic salary for passing order within 30 days from date of receipt of reply to show cause notice/recommendations of inquiry officer / authorized officer.

The FBR also introduced punitive regime for delaying inquiry report.

The FBR said that Internal Job Posting (IJP) allowance of inquiry officers/inquiry committee members/fact finding inquiry officer/ fact finding inquiry committee members shall be discontinued who will take more than 100 days to complete the inquiry till completion of such inquires.

Similar shall apply to authorized officers who take more than 40 days to decide the inquiry; and in case of proceedings against officers’ upto to BS-16; the authority who takes more than 40 days for doing the needful.

The FBR said any excuse including requests for adjournment, non-availability of record etc., shall not be taken as valid excuse for lack of adherence to the time set for doing the needful. Time will not run only in the case of valid stay order from a court of competent jurisdiction.

“These instructions will have prospective effect, but these instructions shall be applicable to all pending inquiries from the date of issuance of these instructions by the board. Accordingly, time will from the date of issuance of these instructions.”

The instruction have been implemented with effect from November 08, 2021.

FBR warns of action for delaying inquiry reports

November 9, 2021
Inflation is core issue in Pakistan: PM Imran

ISLAMABAD: Prime Minister Imran Khan on Monday said that currently inflation is the core issue in Pakistan. The prime minister said that due to recent inflationary trend in international commodity market, inflation is the core issue in Pakistan currently.

“We are working hard to ensure effective monitoring of prices of essential commodities through good governance and better price control mechanism.”

Ensuring a proper control on supply chain, effective price enforcement and a strict check on hoarding are being made more effective for this purpose, he added.

The prime minister directed the authorities concerned to take all necessary measures to provide maximum relief to common man by making the Market Committees at district and tehsil levels more effective.

Earlier the Prime Minister was apprised that a successful pilot project was launched in Rawalpindi/Islamabad by PTIs Good Governance Team which resulted in substantial drop in prices of essential commodities by ensuring strict enforcement of Government notified rates.

The prime minister was also informed that stay orders secured by the ineffective market committees need to be vacated at the earliest to reconstitute robust price monitoring mechanism at district and tehsil levels.

The meeting was attended by Advisor on Finance Shaukat Fayyaz Tarin, Senator Saifullah Niazi and other officers concerned.

Pakistan to emerge as food surplus country: PM Imran

November 8, 2021
Consumer confidence declines sharply on high inflation

KARACHI: The Consumer Confidence Index (CCI) has declined sharply to 70.8 points in the third quarter of 2021, compared to 88.0 points in the second quarter of 2021, translating into 19.6 per cent decrease.
(more…)

November 8, 2021
Pakistan to emerge as food surplus country: PM Imran

ISLAMABAD: Prime Minister Imran Khan has said that Pakistan will emerge from a food deficit to a food surplus country.

The prime minister on Sunday said that the prices of oil, gas and edible oil were not in the government’s control. “However the owing to the record crops this year, Pakistan would emerge from a food deficit to a food surplus country.”

He said that Pakistan had comparatively managed “much better” than other countries amidst unprecedented price hike of commodities caused by the COVID lockdown.

In a Tweet, the prime minister said that an unprecedented rise in commodity prices internationally had adversely affected most countries in the world as a result of the COVID lockdowns.

However, he said, “Pakistan MashaAllah has fared relatively much better.”

Quoting the data of Food and Agriculture Organization, he said from September to October this year, food prices increased by 1.9 per cent, World Cereal Index by 3.2 per cent, edible oil prices by 9.6 per cent, and dairy products by 2.6 per cent.

However, he said despite the worldwide inflation trend, Pakistan’s exports recorded an increase of 17 per cent in October and are likely to touch $30 billion mark this year. Textile exports are expected to reach $22 billion this year.

He said consequent to the government’s timely measures, the non-oil imports of the country reduced by 12.5 per cent last month making a difference of $750 million.

He said due to increasing income, tax collection also surged with 32 per cent increase in four months making the government to receive additional Rs 151 billion compared to last year.

He said according to the latest data, country’s cotton crop increased by 81 per cent during the last four months. In August, the industry recorded a growth of over 12 per cent and companies’ profits by 21 per cent.

“All this shows that the country’s economy is heading fast and employment would be required in the coming days,” the spokesperson commented.

Addressing a question about any relief for the middle class in PM’s recently announced Rs 120 billion relief package, he said the government had already announced a concession of Rs5-7 on every electricity unit to be consumed more than the previous year’s consumption during November to February.

Moreover, he said the sugar prices would fall in the near future owing to record sugarcane crop.

“All these things will appear on the ground in coming days,” he remarked.

November 8, 2021
Pakistan, Iran discuss promoting agriculture cooperation

ISLAMABAD: Pakistan and Iran have engaged in extensive discussions aimed at enhancing agricultural cooperation between the two neighboring countries.
(more…)

November 8, 2021
FTO directs setting up quality Customs labs

ISLAMABAD: Federal Tax Ombudsman (FTO) has directed the tax authorities to expedite setting up Customs laboratories at collectorates.

In its recommendations, the FTO office directed the Federal Board of Revenue (FBR) to expedite the task of setting up of customs laboratories in the remaining customs collectorates and upgradation of existing customs labs as per international best practices.

The FBR has also been advised to assign administrative control to Member (Customs) to save the lab officials from local pressures.

The FTO made this recommendations in an own motion investigation initiative to investigate systemic maladministration of the Customs Administration for failing to establish customs laboratories in the Customs Collectorates as per World Customs Organization (WCO) guidelines, besides failure to upgrade the existing customs lab functioning at MCC Karachi, Lahore and Faisalabad.

Absence of quality laboratory facilities not only compromise collection of legitimate due government revenue but also put at risk import/export controls, environmental protection, control of dangerous goods.

The FBR responded to the FTO notice that the existing Customs lab at Karachi had been upgraded and more than 95 per cent of items, such as textile fabrics, yarn, chemicals, dyes, petroleum hydrocarbons, pharmaceutical materials and metals etc. are conducted there. “Few samples were, however, forwarded to other labs, like HEJ Research Institute of Chemistry and PCSIR…”

Crux of the investigation is that necessary actions have been initiated by the FBR, after initiation of the investigation, through constituting a committee on June 16, 2021, to examine the proposals for setting up modern Customs labs in the remaining Customs Collectorates as well as upgrading the existing labs as per the best international practices.

FTO reconstitutes advisory committee

November 7, 2021
Wheat support price increases to Rs1,950/40kg

ISLAMABAD: The federal government has increased the minimum support price for wheat to Rs1,950 per 40 kilograms from Rs1,800/40kg.

A statement issued on Saturday said that to achieve self-sufficiency in wheat, the government has decided to increase the minimum support price for wheat to Rs 1,950/40 kg compared to Rs. 1,800/40 kg last year.

The government believes that increase in support price will incentivise farmers to grow sufficient wheat to meet the national production target of 28.90 million metric tons.

It is also hoped that availability of irrigation water and weather conditions will be conducive during rabi season to achieve this target.

Due to much higher international prices of DAP fertilizer and shipping cost, the domestic price (Rs. 7,300/bag) has also increased significantly. But thankfully, the price of urea (Rs. 1,850/bag) is stable and significantly lower than the international price (Rs. 5,400/bag) because government provide Rs. 126 billion annual subsidy for natural gas.

The government is working closely with the fertilizer companies to ensure adequate availability of both key fertilizers during this rabi season.

Moreover, the government has provided over Rs. 16 billion for fertilizer, seed, pesticide, agricultural loan markup subsidies. These timely initiatives have helped generate record production of many commodities.

“Our hardworking farmers have produced record crops this year. Pakistan has achieved the highest ever production of wheat (27.5 million mt), rice (8.4 million mt), maize (8.5 million mt), mung beans (0.275 million mt), onion (2.3 million mt), and potato (5.7 million mt). And sugarcane achieved the second-highest production (81 million mt).”

In 2021-22 … Sugarcane production is estimated at 87.67 million tons; 8 per cent higher than that of last year. Rice production is estimated at 8.84 million tons which is 5 per cent higher than that of last year. Maize production is estimated at 9.0 million tons which is 8.5 per cent higher than that of last year. Cotton production as of November 01, 2021 is 6.2 million bales compared to 3.4 million bales (82 per cent higher) at the same date last year.

ECC approves import of 550,000MT wheat

November 7, 2021
President rejects Soneri Bank’s appeal in fraud case

ISLAMABAD: President Dr. Arif Alvi has rejected an appeal filed by Soneri Bank Limited against an order made by Banking Mohtasib.

The President ordered the bank to pay the amount to complainant in fraud case, a statement said on Saturday.

According to the details, President Dr. Arif Alvi has rejected the representation, filed by the Soneri Bank Ltd (SBL) against the order of the Banking Mohtasib, and has made the bank responsible to make good the loss of the money to the complainant without further delay.

While upholding the orders of the Banking Mohtasib to pay an amount of Rs 800,000 amount to the complainant, the President stated in his decision that the bank could not escape the liability in a case of this kind, when the commission of fraud with the account holder by its management was established and admitted.

He said that the ample opportunity had been provided to the Bank before the learned Banking Mohtasib to defend and controvert the claim of the complainant and even before the forum, however, the bank had failed to discharge the burden and statutory liability cast upon it under the law.

Muhammad Danish Naseem (the complainant) maintains an account with the Soneri Bank Ltd Sargodha Road Branch, Sheikhupura.

Danish opened his account on 22-10-2018 in the bank branch and requested the Manager to deposit PKR. 2,000,000/- (two million rupees) cash in the said account. Whereas, the Manager gave him deposit slips of Rs. 500,000/-, Rs. 900,000/- and Rs. 600,000/- respectively.

Despite insistence of the account holder for issuing one deposit slip of amount i.e. Rs. 2 million, the bank manger issued three deposit slips saying that it was to overcome the restrictions of the SBP.

Later, the account holder wanted to draw money from his account but there was no sufficient balance in his account. He lodged a complaint with the bank’s authorities but his grievance was not addressed.

Although, the complainant possessed valid deposit slips admittedly issued by the Ex-Manager bearing his genuine signature and Branch Stamp affixed thereon which validated customer claim to the extent that the Bank had not accounted for amounts of PKR. 2,000,000/- in his account.

Furthermore, the Bank had admitted during the proceedings before the Banking Mohtasib that the receipts in possession of the customers bore signatures of the Bank’s ex-Manager.

Despite all these proofs, the complainant was compelled to run from pillar to post and no relief was provided to him. Feeling aggrieved, Danish Naseem approached the Banking Mohtasib for his grievance.

The Banking Mohtasib, under Section 82 D of the BCO read with Section 9 of the Federal Ombudsmen Institutional Reforms Act, 2013 (No. XIV of 2013), advised the Bank to forthwith make good the loss by crediting the account of the complainant with a sum of Rs800,000/- in pursuance of the findings.

While rejecting representation of the Bank, the President has noted that it is a case of wrong doing and maladministration by the Bank officials and it is, therefore, responsible to make good the loss of the complainant.

He further stated that the ambit and extent of jurisdiction of Banking Mohtasib was spelt out under Section 82A (3)(a)(e), Section 82B(4)(5) and Section 82F of the Banking Companies Ordinance, 1962.

The cumulative reading and perusal of these provisions of law undoubtedly leads to the conclusion that the Banking Mohtasib is to inquire into the complainants about banking malpractices, maladministration, wrong doings, the fraudulent transactions, the corrupt and malafide practices by the Bank officials and pass appropriate orders on conclusion of inquiry.

These powers of the Banking Mohtasib when considered in context with Section 18 and 24 of the Federal Ombudsmen Institutional Reforms Act, 2013 further show that in matters falling within the jurisdiction of the Banking Mohtasib, stated the decision.

President Alvi orders State Life to pay death insurance

November 6, 2021
FPCCI alleges SBP for misguiding on Pak-Iran trade

KARACHI: The apex trade body of the country has alleged the State Bank of Pakistan (SBP) for misguiding the ministry of commerce on Pak-Iran trade.

Mian Nasser Hyatt Maggo, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Saturday said that the SBP had misdirected the commerce ministry by advising against banking channels with Iran for sanctions-related concerns; and, not offering and advocating its due and required facilitative role for the barter trade. “Any State Bank should be an enabler of trade and growth; not a block and disruptor like SBP,” the FPCCI said.

The FPCCI chief hailed the Ministry of Commerce’s efforts to kick start barter trade with Iran on a mass scale; however, he has expressed his concerns and apprehensions pertaining to the conduct of the SBP for creating obstacles and showing inaction for the same.

Maggo maintained that when Europe, India and China can do barter trade with Iran, why Pakistan can not do that; while, Pakistan is at the greater advantage on the back of long border and geographical contiguity as compared to all other countries and regions.

Nasir Khan, VP FPCCI from Balochistan, emphasized that it is in the national interest of Pakistan to have barter trade with Iran and have marketplaces in the border areas of the two brotherly countries.

He added that he considers the conduct of the Governor SBP against the national interest and detrimental to the economic growth and prosperity of Pakistan.

Nasir Khan added that Pakistani exporters can export large quantities of rice, meat, pharmaceuticals and textiles to Iran and that can translate into upwards of equivalent of five billion dollars annually; which, in turn, will create millions of jobs.

Nasir Khan further said that the current Governor SBP is an imported one and is not taking care of Pakistani interests into account. We need a die-hard Pakistani at the helm of the affairs, he added.

FPCCI demands replacing SBP governor

November 6, 2021
PM directs pursuing legal cases against sugar mills

ATTOCK: Prime Minister Imran Khan on Friday directed the law minister to pursue the cases against sugar mills on urgent basis for the benefit of general public and for addressing price hike of the commodity.

To address the ongoing sugar crisis, Prime Minister Imran Khan on Friday directed the law minister to urgently get vacated various stay orders obtained by the sugar mill owners from courts against the government.

Addressing a public gathering after the foundation-laying of a 200-bed mother and child hospital, the prime minister said closure of sugarcane crushing by three sugar mills in Sindh and the subsequent hoarding was the reason behind the current spike in sugar prices.

The sugar price soared as wholesale rate touched Rs150 per kilogram in most parts of the country and retail rate up to Rs160kg.

Imran Khan said the sugar mills had attained stay orders against the fine imposed by the Competition Commission of Pakistan.

Also, the other stay order was against Federal Board of Revenue (FBR) in line with its action on tax evasion and the ‘off-the-books’ activity of sugar mills.

On overall inflation, he said Pakistan was bearing the impact of global price hike of commodities, mainly due to shortage of supplies in the wake of pandemic.

He said the sharp increase in global petroleum prices from $45 to $85 dollar greatly affected Pakistan as the country relied on imports of several items, including petrol, palm oil, and pulses.

Despite such a situation, he said, Pakistan had the lowest rate of petroleum at Rs 146 per litre among importing countries compared with India at Rs 250 and Bangladesh at Rs 200 per litre.

Imran Khan hoped that as the world businesses open up after decline in pandemic following the coming winters, things would improve.

To reduce the financial impact on poor, he said the government had recently provided food subsidies to 130 million people across the country through Ehsaas programme.

He mentioned that other socio-welfare initiatives such as Kamyab Pakistan would provide interest-free loans to two million households for house building, start-ups, and skills training. Also, the Kamyab Jawan is providing loans to youth across the country, he added.

The prime minister said establishment of five mother and child hospitals in two years would ensure provision of health facilities to women on health issues related to gynecology and obstetrics.

He said it was shameful that due to the apathy of previous governments, a rise in deaths of women during pregnancy was recorded in the wake of non-availability of medical facilities.

He said by March, all households of Punjab would get health insurance of Rs 0.7 to one million for their medical treatment.

He termed the health card a proper system where the private sector would also be encouraged to establish hospitals in rural areas so as to expand the network of healthcare facilities.

Imran Khan said the priority of his government in its tenure was to uplift the people and provinces that lagged behind in development.

On completion of five years, he said, his biggest success would be to bring a positive change in the lives of common man.

He regretted that Pakistan in the past suffered the rule of two political families in 30 years that incurred a huge loss to national exchequer.

The prime minister mentioned that under his government, the country for the first time was witnessing an era of long-term planning besides the boom in industrial growth, exports and historic foreign remittances.

Chief Minister Punjab Usman Buzdar said the mother and child hospital in Attock would provide quality healthcare facilities to two million residents, particularly women, of the Attock district and in the suburbs.

He said the Punjab government would complete the 200-bed hospital equipped with modern facilities in two years at a total cost of Rs 5.3 billion. The federal government has already released Rs 2.66 billion to Punjab for the project.

He said establishment of 21 different universities in the province was also under consideration.

Punjab Health Minister Dr Yasmin Rashid said the mother and child hospitals would help the women get timely medical advice and treatment.

She said after 50 years, the second phase of Nishtar Hospital would be constructed in Multan to meet the medical needs of the growing population.

PM Imran Khan announces food subsidy package

November 5, 2021