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ISLAMABAD: Pakistan on Wednesday established a fund namely ‘Afghanistan Relief Fund’ to provide humanitarian assistance to Afghanistan.
According to a notification issued by the Finance Division, all proceeds on account of ‘Afghanistan Relief Fund’ and payment into the aforesaid fund will be received at all branches of State Bank of Pakistan, all treasuries and branches of National Bank of Pakistan and all other scheduled banks.
The finance division said that the fund may receive donations from both domestic, international donors and contributions from aboard which will be received at all the branches of above referred banks where such branches are existing. “In other foreign countries contributions will be received at Pakistan missions and remitted to the State Bank of Pakistan, which would prescribe necessary procedure for their accounting.”
All proceeds received in the name of the fund will be credited to the public account of the federal government under following head of account:
Major object: G12: Special deposit fund
Minor Object: G121: relief fund
Detailed Object (New): G12163: Afghanistan Relief Fund
The finance division said that accounts of the fund would be maintained by Accountant General of Pakistan Revenue, Islamabad and Fund will be administered by the ministry of economic affairs in consultation with the finance division.
The dollar reached crossed the previous record high which was on December 7, 2021 at Rs176.79 in the interbank foreign exchange market. The Pak Rupee (PKR) lost 64 paisas against the dollar when compared with the last day closing.
Currency experts said that the dollar demand for import and corporate payments were remained high during the day.
They said that deposit of $3 billion by Saudi Development Fund (SDF) with the State Bank of Pakistan (SBP) had failed to impact the rupee value. Further, the monetary tightening by the SBP also unable to support the rupee. The SBP in its last monetary policy on November 19, 2021 jacked up the key policy rate by 150 basis points to 8.75 per cent.
The experts said that the local unit would only be supported by curtailing the imports.
The import bill of the country surged by 69.17 per cent to $33 billion during first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.
The government is set to introduce a finance supplementary bill which may bring major changes in sales tax regime, sources said on Wednesday.
The sources said that in the Sales Tax Act, 1990, zero-rating under the Fifth Schedule is proposed to be streamlined and certain entries are to be withdrawn.
Exemption regime under Sixth Schedule is proposed to be curtailed including pharmaceutical sector and restricted to import and local supply of essential commodities only.
Reduced rates of sales tax under Eight Schedule on certain items are proposed to be streamlined in order to achieve equity in the tax system.
Likewise, sales tax on import of high-end mobile phones in CBU condition under Ninth Schedule is proposed to be rationalized. The scope of Tier-1 retailers is also proposed to be rationalized.
The government is also planning to bring changes in Customs Act, 1969.
Under the Customs Act, 1969 the power of Collector to determine the value of imported or exported goods is proposed to be withdrawn which shall be exercised by Director Valuation that has been the case prior to Finance Act, 2021.
Similarly, the appeal against the decision of DG Valuation shall hereinafter be filed before judicial for a instead of Member Customs (Policy) in consonance with the principle of separation of judicial and executive functions. Moreover, in the interest of revenue, corporate guarantee is proposed to be taken out as was the case before September 15, 2021.
Minimal amendments in the Income Tax Ordinance, 2001 are aimed at promoting digital economy, documentation and facilitation measures. Additionally, advance tax on foreign produced drama serials is proposed to be introduced and slightly enhanced on cellular services.
Disclosure of information in respect of high-level public officials is proposed in line with the requirements of the development partners, rule of law and integrity. Furthermore, Special Purpose Vehicle (SPV) under the REIT regulations, 2015 is proposed to be extended.
During the tenure of the present Government far-reaching structural and administrative reforms have been initiated to achieve economic and financial stability through inclusive reforms and sustainable economic growth.
The Federal Board of Revenue (FBR) is committed to achieve tax reforms with the assistance of development partners with the ultimate objective to be able to generate sufficient revenue for the State.
The underlying purpose of reforms is also to rebuild the tax system on ideal principles of taxation and without any distortions. Amendments in tax laws, as outlined below, are warranted in order to achieve efficiency and equity in the tax systems through removal of aberrations, broaden the tax base, and document the economy.
The Federal Board of Revenue (FBR) has opted to postpone the implementation of valuation tables for immovable properties following concerns raised by various stakeholders.
The Federal Board of Revenue (FBR) has issued a notification, SRO 1579(I)/2021, announcing revisions in the sales tax rates on various petroleum products, excluding petrol.
KARACHI: The free fall in rupee value continued on Tuesday as the dollar hit new high at Rs176.79 in the interbank foreign exchange market.
The Pak Rupee (PKR) lost 31 paisas against the dollar to end at Rs176.79 from the previous day’s closing of Rs176.48 in the interbank foreign exchange market.
Currency experts said that dollar demand remained high and offset the impact of Saudi fund support.
The Saudi Development Fund (SDF) placed an amount of $3 billion with the State Bank of Pakistan (SBP) on December 04, 2021. The market was expecting some gain in rupee value following the fund transfers. However, large import bill remained big challenge for the rupee stability.
According to the official data of the Pakistan Bureau of Statistics (PBS) released a day earlier, showed the import bill of the country surged by 69.17 per cent to $33 billion during first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.
ISLAMABAD: A deal has been signed on Sunday by Pakistan and Saudi Arabia for certification and employment of Pakistani skilled workforce through Takamol and NAVTTC.
The agreement was signed by Minister for Federal Education and Professional Training, Shafqat Mahmood from the Pakistan side, and Dr. Ahmad Jabbar Al Yamni, from Saudia Arabia Takamol side.
The Agreement signing ceremony took place at the Ministry of Human Resources and Social Development, Saudi Arabia and it was witnessed by senior officials of both countries.
This important cooperation between both countries has a far-reaching impact for enhancing the employment opportunities for the skilled Pakistani workforce by joint certification and testing by Takamol Saudi Arabi and NAVTTC National Vocational and Technical Training Commission Pakistan.
This will also safeguard the existing Pakistani workforce in Saudi Arabia. In order to facilitate the Pakistani expatriate workforce, NAVTTC under the leadership of Shafqat Mahmood, Minister for Federal Education and Professional Training, Chairman NAVTTC Syed Javed Hassan and Executive Director NAVTTC Sajid Baloch worked hard to achieve this hallmark far-reaching Agreement between NAVTTC and Takamol.
It is expected that millions of Pakistani skilled workers will get gainful employment opportunities with higher earning as a result of the efforts of the Government of Pakistan.
Under this partnership, NAVTTC, National Vocational and Technical Training Commission Pakistan and Takamol, a subsidiary of the Government of Saudi Arabia are establishing the testing regime under the Skills Verification Program, by exchanging the NOS (National Occupational Standards) and facilitating skill verification of candidates through competency-based assessment (Theory & Practical) at exam Centers in Pakistan for candidates desirous of working in the Kingdom of Saudi Arabia.
This will enable the Pakistani skill workforce to have authentic and internationally recognized joint certification by both Takamol Saudi Arabia and NAVTTC Pakistan, through the Recognition of Prior Learning (RPL) assessment.
The Ministry of Human Resource and Social Development of the Kingdom of Saudi Arabia (KSA) has introduced Skill Verification Program (SVP) implemented from July 2021 in order to regulate its labor market. After the implementation of SVP in KSA, skill verification has become necessary for the Pakistani skilled workers, who intend to have employment in Saudi Arabia.
It is important to note that the largest number of Pakistani expatriate workforce is based in Saudi Arabia, who contribute substantially to Pakistan’s economy through foreign remittances.
Most of the present Pakistani workforce in KSA fall in the category of un-skilled or semi-skilled labor, which means reduced remunerations and it also impacts remittances negatively.
Moreover, in the changing scenario of labour laws and dynamics of the labor market overseas, a large number of Pakistani skill workforce require skills certification as presently they face non-recognition of their qualifications, skills and certification.
This cooperation will help a large number of these workers, also leading to national productivity and development.
The dollar gained 35 paisas against the previous day’s closing of Rs176.42 in the interbank foreign exchange market. The dollar made a new peak just after a day reaching the historic high.
The official reserves of the State Bank fell by $244 million to $16.01 billion by the week ended November 26, 2021 as compared with $16.254 billion a week ago.
The import bill of the country surged by 69.17 per cent to $33 billion during the first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.
The exports of the country also grew at 27 per cent but much lower than the pace in the growth of the import bill during the period under review. The exports of the country increased to $12.34 billion during July – November 2021/2022 as compared with $9.74 billion in the same period of the last fiscal year.
Earlier in the day the US dollar has breached the level of Rs177 to make a new record high during intraday trading. The exchange rate reached at Rs177.30 to the dollar during midday trading in the interbank foreign exchange market.
The Federal Board of Revenue (FBR) has issued a notification (No. 2863-IR-I/2021) on Friday, officially announcing the promotion of several senior officers from the Inland Revenue Service (IRS) to BS-21 from their previous BS-20 positions.
ISLAMABAD: Pakistan’s trade deficit ballooned by 112 per cent to $20.59 billion during the first five months (July – November) of the current fiscal year 2021/2022, according to official data released on Thursday.
The trade deficit was at $9.72 billion in the same months of the last fiscal year, revealed by the data released by the Pakistan Bureau of Statistics (PBS).
Pakistan’s import bill surged by 69.17 per cent to $32.934 billion during July – November 2021/2022 as compared with $19.468 billion in the same period of the last fiscal year.
The exports of the country also exhibited by 26.68 per cent to $12.344 billion during the period under review as compared with $9.744 billion in the corresponding period of the last fiscal year.
The country reported $4.963 billion as trade deficit for the month of November 2021. The trade deficit has swelled by 134 per cent in November 2021 as compared with the deficit of $2.121 billion in the same month of the last year.
The import bill registered a phenomenal growth of 82.83 per cent to $7.847 billion in November 2021 as compared with $4.292 billion in the same month of the last year.
The exports also grew by 33 per cent to $2.884 billion in November 2021 as compared with $2.171 billion in the same month of the last year.
