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  • FBR tightens monitoring to prevent currency smuggling

    FBR tightens monitoring to prevent currency smuggling

    ISLAMABAD: The Federal Board of Revenue (FBR) has tightened monitoring to prevent currency smuggling in the wake of free-fall in rupee value against the foreign currencies.

    A statement issued on Sunday stated that FBR Chairman Asim Ahmad had instructed customs field formations for stepping up vigilance to ensure monitoring of passengers to stop currency smuggling.

    “Building further on its policy of zero tolerance against currency smuggling, Chairman FBR has instructed Customs field formations for stepping up vigilance at airports and land border stations. Concerned Collectorates to ensure monitoring of all inbound and outbound passengers,” according to a Tweet.

    The US dollar has continued momentum of appreciation against the Pakistan Rupee (PKR) in the interbank foreign exchange market.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    The rupee fell for the eight straight days to the record low of Rs192.53 to the dollar on May 13, 2022. The fall in rupee value may be attributed to fall in foreign exchange reserves and high payments for imports. However, some believed the unrecorded outflow of foreign currency also depressed the foreign exchange market.

    Previously, the FBR on September 24, 2021 issued a clarification rebutting the reports of currency smuggling from Pakistan to Afghanistan.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

    In the statement, the FBR categorically rebutted the unfounded, malicious intent and misleading in content propaganda being advanced by some irresponsible elements that there was a huge flight of dollars from Pakistan.

    It is further clarified that previously the bilateral trade between Pakistan and Afghanistan was carried out in US Dollars but now the same is being conducted in Pak Rupees (PKR).

    Furthermore, FBR has taken very stringent enforcement measures at the Airports to eliminate the possibility of any such an unethical practice.

    Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    READ MORE: Multan customs auctions smuggled diesel oil on May 18, 2022

    It is most likely that Chairman FBR and Member (Customs Operations) will visit the Pak-Afghan border to oversee the functioning of the above mechanism on the ground.

    It is further reiterated that this transparent and efficient mechanism being adopted at all the airports across Pakistan is facilitating the smooth and easy movement of outbound passengers, thus significantly reducing their time and cost.

  • FAP suggests incentive to undeclared $3 billion

    FAP suggests incentive to undeclared $3 billion

    People have an undeclared amount of $2 billion to $3 billion foreign currency in their homes and personal bank lockers. They want to exchange with Pakistani Rupee (PKR) but due to certain restrictions they are unable to bring it out. The government should provide legal shelter for declaration of concealed dollars, which will help to boost the foreign exchange reserves.

    READ MORE: Pakistan’s forex reserves fall to $16.37 billion

    Malik Muhammad Bostan, President, Forex Association of Pakistan (FAP) commented these at a conference on present economic woes, especially falling rupee and depletion of foreign exchange reserves.

    “Many people taking advantage of Economic Reform Act purchased huge amount of dollars from the local market during the period of 1993 to 2008 and deposited in the banks of foreign countries or retained the dollars at their homes or lockers,” he said.

    READ MORE: Pakistan’s forex reserves dip to $16.55 billion

    Prior to year 2008, there were many unlicensed money exchange companies were operating under Economic Reform Act. Those exchange companies were allowed to sale and purchase foreign currency without ‘Know Your Customer (KYC)’. SBP licensed exchange companies were required to conduct KYC on sale/purchase of above $10,000.

    “Now those people want to sale their dollars through KYC but without identification,” he said, adding that the under Financial Action Task Force (FATF) conditions, the banks are required to obtain identification on sale/purchase of above $15,000.

    READ MORE: SBP forex reserves shrink to 1.69 months import cover

    “If this condition is relaxed then exchange companies will able to purchase huge amount of dollars and other foreign currency from public,” Bostan said.

    FAP President said the government should allow purchase of gold from local market. “They may sale gold in international market and surrender foreign currency in the local market.”

    Pakistan forex reserves inch up to $17.045 billion

    There is need to channelize foreign currency invested in cryptocurrency, he said and demanded that the government should provide legal cover to bring foreign currency back home.

    He suggested that banks should stop forward dollar selling and should be allowed to sale dollar equivalent to purchase.

    Bostan said the State Bank of Pakistan (SBP) should imposed 100 per cent cash margin on all imports except for necessary items.

    Pakistan’s forex reserves deplete to $17.03 billion

  • FBR issues procedure for restoration of input tax adjustment

    FBR issues procedure for restoration of input tax adjustment

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued procedure to restore input tax adjustment claimed by Tier-1 retailers.

    The FBR on Friday issued Sales Tax General Order (STGO) No. 17 of 2022 dated May 13, 2022 regarding Tier-1 retailers – integration with FBR POS System.

    The procedure for reversal of bar on input tax adjustment by 60 per cent (i.e. the exclusion), as provided for in STGO No. 1 of 2022 dated August 3, 2022 has been automated. The STGO No. 1 has now been amended to the extent of reversal of bar on input tax adjustment by 60 per cent / issuance of exclusion certificates.

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

    The FBR said a registered person whose adjustable input tax has been reduced by 60 per cent under Section 8B(6) of the Sales Tax Act, 1990, by inclusion in STGO shall file application for removal of this bar / for restoration of input tax adjustment. Application shall be filed through the system (IRIS) by selecting the relevant reason for the exclusion from the purview of the said section, along with any proof / evidence in support of the application.

    Once an application is submitted, the FBR said, adding that it shall be examined and an order (exclusion certificate) shall be passed by the concerned commissioner IR in the system, after such inquiries and examination of such record, as deemed necessary by him/her, as under:

    READ MORE: FBR issues list of 185 retailers for mandatory integration

    A. Acceptance of application (i.e. Exclusion Certificate allowed):

    In the event of acceptance of the application (i.e. exclusion certificate allowed) by the concerned commissioner IR, the system shall automatically restore the input tax adjustment as per law as under:

    i. Application accepted by the concerned commissioner IR for the reason of ‘integration with FBR’s POS system’: Restoration of input tax adjustment shall apply with effect from the tax period next following the tax period(s) during which the Tier-1 Retailer remained non-integrated. As already clarified by the Board, the 60 per cent reduction in input tax adjustment (disallowance) shall apply to the tax period in which the Registered Person integrated with FBR’s system, as well as, to the prior tax period(s) during which the registered person remained non-integrated or remained partially integrated (i.e. not all the terminals and / or branches were integrated).

    READ MORE: Adjustment restrictions hamper return filing by retailers

    Concerned Commissioner – IR, at the time of passing the order in the system shall provide the date of integration and the system shall restore the input tax adjustment accordingly, as above.

    ii. Application accepted by the concerned Commissioner-IR for the reason ‘Not a Tier-1 Retailer as defined under Section 2(43A) of the Sales Tax Act, 1990: In this scenario the reduction in input tax adjustment (disallowance) by 60 per cent, shall be reversed with effect from the date this bar was placed on and no tax period shall remain subjected to reduction in input tax adjustment (which was originally placed under section 8B(6) of the Sales Tax Act, 1990).

    READ MORE: FBR announces winners of third POS invoice draw

    B. Rejection of Application (i.e. Exclusion Certificate disallowed): In the event of rejection of the application, this reduction (disallowance) in input tax adjustment shall continue in all subsequent tax period(s) as before,

    The FBR said the procedure of automation in the hands of concerned commissioner-IR will be effective from May 10, 2022 and cases for restoration of 60 per cent reduction (disallowance) of input tax adjustment (excluded cases) as already communicated to PRAL by the Board, shall be managed/implemented in the system by PRAL.

  • Rupee falls for 8th straight day; dollar hits Rs192.53

    Rupee falls for 8th straight day; dollar hits Rs192.53

    KARACHI: The Pakistan Rupee (PKR) continued to slide against the US dollar for eighth straight day and reached to historic low at Rs192.53 on Friday.

    (more…)
  • Pakistan receives record monthly high $3 billion as remittances

    Pakistan receives record monthly high $3 billion as remittances

    KARACHI: Pakistan has received a monthly record workers’ remittance of $3.13 billion in the month of April 2022, the central bank said on Friday.

    The State Bank of Pakistan (SBP) said the remittances grew by 12 per cent in April 2022 to $3.125 billion as compared with $2.79 billion received in April 2021. Meanwhile, the country received $2.81 billion in the month of March 2022.

    READ MORE: SBP receives $2.2 bn as workers remittances in February

    The inflow of remittances recorded 7.6 per cent growth to $26.08 billion during the first 10 months (July – April) 2021/2022 when compared with $24.23 billion in the corresponding months of the last fiscal year.

    Pakistanis living in the USA have sent $2.556 billion during July – April 2021/2022, which is 20 per cent higher when compared with $1.4 billion in the same period of the last fiscal year.

    READ MORE: Remittances increase to record $18 billion in 7 months

    The SBP received an amount of $3.67 billion during the first ten months of the current fiscal year from Pakistani workers living in the UK as compared with $1.98 billion in the corresponding period of the last fiscal year, showing an increase of 9.9 per cent.

    Pakistanis living in Saudi Arabia sent an amount of $6.41 billion during the period under review as compared with $5.32 billion in July – April 2020/2021, showing a growth of 1.6 per cent.

    READ MORE: Pakistani overseas workers send $15.8 billion in 1HFY22

    The inflows of remittances from the UAE, however, posted a decline of 3.6 per cent to $4.90 billion during the first 10 months of the current fiscal year as compared with $5.08 billion in the same period of the last fiscal year.

    Pakistanis living in the EU countries have sent an amount of $2.80 billion during the first ten months of the current fiscal year as compared with $2.21 billion in the same period of the last fiscal year, showing a growth of 27.1 per cent.

    READ MORE: PM Imran launches incentive program for remittances

  • Dollar jumps to Rs193 in midday interbank trading

    Dollar jumps to Rs193 in midday interbank trading

    KARACHI: The US dollar reached to all time high at Rs193 during midday trading at interbank foreign exchange market on Friday.

    The rupee lost Rs1.23 to the dollar and being traded at Rs193 from previous day’s closing of Rs191.77 in the interbank foreign exchange market.

    Currency experts said that falling foreign exchange reserves and high import payments had escalated dollar demand.

    READ MORE: Rupee crashes to record low at Rs190.02 against dollar

    The rupee continued its free fall for the seventh consecutive day yesterday.

    Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

    READ MORE: Rupee hits all-time low at Rs188.66 to dollar

    The depleting foreign exchange reserves are also putting pressure on the local currency.

    Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

    READ MORE: Dollar ends Rs187.53 at interbank market close

    This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

    READ MORE: Rupee fall continues; dollar hits new high at Rs191.77

  • Pakistan’s forex reserves fall to $16.37 billion

    Pakistan’s forex reserves fall to $16.37 billion

    KARACHI: Pakistan’s foreign exchange reserves fell by $177 million to $16.376 billion by week ended May 6, 2022, according to data released by the State Bank of Pakistan (SBP) on Thursday.

    The foreign exchange reserves of the country were $16.553 billion by week ended April 30, 2022.

    READ MORE: Pakistan’s forex reserves dip to $16.55 billion

    The country’s foreign exchange reserves hit record high at $27.228 billion by week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $10.852 billion.

    The official reserves of the State Bank witnessed a decline of $190 million to $10.309 billion by week ended May 6, 2022 as compared with $10.499 billion a week ago.

    READ MORE: SBP forex reserves shrink to 1.69 months import cover

    The SBP reserves reached to record high at $20.145 billion by August 27, 2021. The official reserves also fell by $9.836 billion after reaching record high.

    The official reserves of the SBP have been reduced to provide import payment cover for only 1.56 months.

    The foreign exchange reserves of held by commercial banks however inched up by $13 million to $6.067 billion by week ended May 6, 2022 as compared with $6.054 billion a week ago.

  • Rupee fall continues; dollar hits new high at Rs191.77

    Rupee fall continues; dollar hits new high at Rs191.77

    KARACHI: The free-fall in Pakistan Rupee (PKR) continued on Thursday as the US dollar advanced to make a new high at Rs191.77 at close of interbank foreign exchange market.

    The exchange rate witnessed a decline of Rs1.75 in Pak Rupee (PKR) to end at Rs191.77 from previous close of Rs190.02 in the interbank foreign exchange market.

    READ MORE: Rupee crashes to record low at Rs190.02 against dollar

    Currency experts said that falling foreign exchange reserves and high import payments were the main reasons behind rupee fall.

    The rupee continued its free fall for the seventh consecutive day.

    Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

    READ MORE: Rupee hits all-time low at Rs188.66 to dollar

    The depleting foreign exchange reserves are also putting pressure on the local currency.

    According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by the week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

    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.

    READ MORE: Dollar ends Rs187.53 at interbank market close

    Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

    This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

    READ MORE: Rupee falls Rs187.50 to dollar at market open

  • Dollar makes new high at Rs191.50 in midday trading

    Dollar makes new high at Rs191.50 in midday trading

    KARACHI: The Pakistan Rupee (PKR) crashed to new record low at Rs191.50 to the dollar in midday trading of interbank foreign exchange market on Thursday.

    The exchange rate witnessed a decline of Rs1.48 and is trading at Rs191.50 to the dollar from previous day’s closing of Rs190.02 in the interbank foreign exchange market.

    Currency experts said that balance of payment crisis were impacting the rupee value. They said that high import payment and scheduled repayment of foreign debt had increased dollar demand.

    READ MORE: Rupee crashes to record low at Rs190.02 against dollar

    The rupee has fallen sharply during first three days of the current week.

    Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

    READ MORE: Rupee hits all-time low at Rs188.66 to dollar

    The depleting foreign exchange reserves are also putting pressure on the local currency.

    According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by the week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

    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.

    READ MORE: Dollar ends Rs187.53 at interbank market close

    Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

    This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

    READ MORE: Rupee falls Rs187.50 to dollar at market open

  • Pakistan gives no trade relaxation to India

    Pakistan gives no trade relaxation to India

    ISLAMABAD: Pakistan on Wednesday clarified that it has not given any relaxation in trade with India. The clarification has been issued by the ministry of commerce.

    It said that the Ministry of Commerce manages 57 Trade Missions in 46 countries which includes the post of Minister (Trade and Investment) in New Delhi, India.

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

    The Post of Minister (Trade and Investment) in New Delhi exists for more than two decades and has no connection with the operationalization of trade with India or otherwise in the current context.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    The current cycle for selection of Trade and Investment Officers (TIOs) including New Delhi was initiated in December, 2021 and the final recommendations of the Interview Board were sent to Prime Minister’s Office on 01-04-2022 i.e. during previous Government.

    READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

    The present Government has given the final approval on the recommendations of previous Government for selection of 15 TIOs.

    The appointment of Minister (Trade and Investment) New Delhi, therefore, may not be seen in the context of any relaxation of trade restrictions with India.

    READ MORE: Pakistan’s trade deficit widens by 92% in seven months