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ISLAMABAD: The Federal Board of Revenue (FBR) – Pakistan’s apex revenue collecting agency – has collected over Rs2.31 trillion during the first five months (July – November) of the fiscal year 2021/2022.
According to provisional statistics released by the FBR on Tuesday, the net revenue collection is at Rs2.314 trillion during the first five months, which is Rs298 billion higher than the target of Rs2.016 trillion for the period.
This represents a growth of about 36.5 per cent over the collection of Rs. 1.695 trillion during the same period last year.
While chasing the target of Rs 408 billion fixed for the month of November 2021, the net collection for the month realized Rs. 470 billion, which is Rs 62 billion in excess of the assigned monthly target, representing an increase of 35.2 per cent over Rs 348 billion collected in November 2020.
These figures would further improve before the close of the day and after book adjustments have been taken into account, the FBR said.
On the other hand, the gross collections increased from Rs. 1,783 billion during July-November, 2020 to Rs. 2,437 billion in current Financial Year, showing an increase of 36.7 per cent.
The amount of refunds disbursed was Rs 123 billion during July- November 2021 compared to Rs. 88 billion paid last year, showing an increase of 40.5 per cent.
It is pertinent to mention that after collecting over Rs. 4.7 trillion and exceeding its assigned revenue targets set for tax year 2020-21, FBR has successfully maintained the momentum set in July, 2021.
Its tax collection posted historic high growth in the first quarter of the current fiscal year. During the first four months (July-October), FBR has far surpassed its revenue target by Rs 233 billion.
This spectacular performance in the first five months of the current financial year clearly shows that FBR is well on its way to achieving the assigned target of Rs. 5.829 trillion for the year despite the daunting challenges, compelling constraints posed by the corona pandemic, and sporadic tax cuts announced by the government as relief and price stabilization measures.
On the recommendation of the Ministry of Aviation, the Cabinet approved the renewal of aviation licenses of M/S SERENE AIR, M/S AIRBLUE, M/S PIACL and M/S PRINCELY JETS under the National Aviation Policy 2019.
Federal Minister Asad Omar briefed the Cabinet on the new variant of COVID-19, Omicron. The meeting was informed that the new variant originated in Africa. According to initial reports, the rate of spread is very high. The cabinet called for the implementation of COVID SOPs such as use of mask in public places, social distancing, and vaccinations for public safety.
The Cabinet was briefed regarding the introduction of an electronic voting machine and the empowerment of Overseas Pakistanis to vote. Federal Minister Shibli Faraz gave a briefing on procurement of Electronic Voting Machines, training of staff, responsibilities of concerned agencies, public awareness campaign and timely delivery. The cabinet expressed grave concerns over the release of a video of alleged vote-buying during the by-elections in N.A 133. The cabinet said such illegal actions were anti-democratic.
Keeping in view the transparency, the Cabinet directed the concerned departments to clarify about the audit report on the package for COVID-19.
Advisor for Finance presented a comparative review of the prices of essential commodities to the Federal Cabinet.
Weekly inflation fell to 0.67%. Prices of 5 Commodities have seen a reduction trend. The Cabinet was informed that apart from the prices of ghee and tea leaves in the region, prices of all other household items are lower in Pakistan.
These items include flour, grams, dal mash, dal mung, tomato, onion, chicken and petrol. The Cabinet was informed that the prices of flour, sugar, lentils and gram lentils in Sindh are much higher than other provinces. The Cabinet expressed grave concerns over the rising prices of essential commodities in Sindh.
Petroleum Division briefed the Cabinet on the vacancies of MD and CEO in the organizations under the division. The Cabinet was informed that at present 04 posts are vacant on which appointment process is in progress.
The Cabinet, on the recommendation of the Ministry of Aviation, approved the delimitation of high-rise buildings around airports under the Civil Aviation Authority Rules. The height limit of buildings in Islamabad Blue Area has been fixed at 1000 feet. The decision will also help prevent the rampant spread of urban boundaries, save vegetables and preserve agricultural land.
On the recommendation of the Ministry of Commerce, the Cabinet allowed the staff stationed at the Pakistani Embassy in Tehran to import personal vehicles on repatriation under the Hardship Policy.
On the recommendation of the Ministry of Interior, the Cabinet approved to increase the visa period from 120 days to 150 days for those coming to Pakistan from Tablighi Jamaat from abroad. The Cabinet also approved to grant 45 days Visa on Arrival for Tablighi Jamaat. Visas can be obtained through the online visa portal.
Cabinet approved procedure for appointment of EOBI (Employees Old-Age Benefits Institution) Chairman. This appointment will be carried out under the Competitive Process of Management Position Scale Policy 2020.
Cabinet on the recommendation of the Ministry of Overseas Pakistanis postponed approval to issue Overseas Employment Promoter Licenses. The Cabinet directed that a procedure be worked out within a week to review the work of these promoters. Special care should be taken that promoters should not be illegally charging extra money from those travelling abroad.
The Cabinet ratified the decisions taken at the meeting of the Committee on Institutional Reforms held on 12 November 2021. The meeting recommended the reorganization of the Pakistan Gems and Jewelery Development Company.
The Cabinet ratified the decisions taken at the meeting of the Committee on Energy held on 18 November 2021.
The Committee on Energy had recommended Gas Load Management Plan for Winter 2021-22 and setting up of Oil Depot at Kemari Karachi. Gas Load Management Plan for Winter 2021-22:-
Domestic gas will be reserved for domestic consumers only because of its low cost. The CNG sector will be closed from 01 December 2021 to 15 February 2022. Gas supply to IPPs and fertilizer factories will continue.
Gas supply to export sector industries will continue.
Power plants running on LNG will be provided 5 per cent additional gas.
Electricity prices have been reduced for domestic consumers in winter (Rs. 12.96 per kWh) to meet the gas shortage.
Gas saved from CNG, Cement and Captive Power will be used for domestic consumption.
A public awareness campaign is being launched to save gas.
On the recommendation of the Ministry of Commerce, the Cabinet approved the import of MONTANIDE OIL from France for the treatment of Foot-and-Mouth disease in cattle in Punjab.
On the recommendation of the Ministry of Information and Broadcasting, the Cabinet approved setting up of a selection board for the appointment of Chairman ITNE and Chairman Press Council of Pakistan. The Selection Board for Chairman ITNE will consist of the Minister of Information, Secretary Information, Additional Secretary Information, Grade 21 Representatives of Establishment Division and Ministry of Law. The Selection Board for the Chairman Press Council of Pakistan will consist of the Minister of Information, Secretary Information, Additional Secretary Information, Representatives of Establishment Division and Ministry of Law.
Cabinet approved the appointment of Muhammad Saleem as Chairman Privatization Commission.
Federal Minister for Industries and Production gave a detailed briefing to the Cabinet on the current stock and prices of fertilizers in the country. The meeting was informed that this year the fertilizer companies released 53 per cent more fertilizer to the dealers in Sindh as compared to the previous year, due to which there was shortage of urea in Punjab and other areas and the price had gone up.
However, on the directions of the Prime Minister, measures were taken to reduce this disparity and against hoarders, which resulted in an average reduction of Rs. 400 per sack.
At present a sack of urea is available in Gujranwala for Rs. 1850. There is a surplus of 200,000 tons of fertilizer compared to the domestic demand. The Cabinet was informed that an online portal has been set up to monitor the supply of fertilizers through which the federal government, provinces and all district administrations can monitor the movement and stock of fertilizers.
Punjab has taken several steps since November 13 to curb the hoarding of fertilizers. Among them 347 FIRs, 244 arrests, 21111 inspections, 480 warehouse seals and fines of Rs 2.79 crore have been imposed.
In addition, control rooms have been set up in each district where complaints related to shortage of fertilizers, hoarding and profiteering can be lodged. Checkpoints have been set up at provincial borders to curb smuggling. Amendments are being made to the relevant laws against hoarding and profiteering in which informants will be rewarded in proportion to the confiscated property.
The Cabinet ratified the decisions taken at the meeting of the Economic Co-ordination Committee held on November 29, 2021. Approval to hold a special meeting of OIC Foreign Ministers in Pakistan. Approval of 50,000 tons of wheat aid to Afghanistan.
ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 11.5 per cent on a Year-on-Year (YoY) basis in November 2021, the Pakistan Bureau of Statistics (PBS) said on Tuesday.
The Federal Minister for Economic Affairs Division (EAD) Omar Ayub Khan chaired the ECC meeting and took several important decisions.
Federal Minister for Energy Hammad Azhar, Abdul Razak Dawood Advisor to Prime Minister on Commerce, Textile, Industries & Production and Investment, Federal Secretaries and other senior officers participated in the meeting.
The ECC considered the summary submitted by the Ministry of National Food Security & Research approved the proposal for the donation of 50,000 M. Tons of wheat to Afghanistan. ECC further directed the Finance Division to provide funds for the purpose on an actual cost basis.
The ECC also recommended relaxation of the ban on the export of wheat/wheat flour to Afghanistan to the extent of the instant proposal with the direction that the Ministry of National Food Security and Research may inform the Federal Cabinet of the ratio for mixing of local and imported wheat in case export of wheat flour is required.
On a Summary tabled by the Ministry of Foreign Affairs regarding “Extraordinary Session of the OIC Council of Foreign Ministers (CFM) in Pakistan” the ECC approved two Technical Supplementary Grants (TSGs) for the purpose during CFY 2021-22 i.e., (i) Rs.233.342 million in favor of the Ministry of Foreign Affairs and (i) Rs 64.2 million in favor of the Interior Division.
KARACHI: State Bank of Pakistan (SBP) on Monday signed an agreement for a deposit of $3 billion from Saudi Fund for Development (SFD).
The SBP in a statement said that a deposit agreement between the Kingdom of Saudi Arabia, represented by the Saudi Fund for Development (SFD), and the Government of the Islamic Republic of Pakistan, represented by the State Bank of Pakistan (SBP), was signed on Monday by the Chief Executive Officer of SFD, H.E. Sultan Bin AbdulRahman Al-Marshad and the Governor SBP, Dr. Reza Baqir at the State Bank of Pakistan in Karachi, Pakistan.
Under this deposit agreement, SFD shall place a deposit of USD 3.0 billion with SBP.
The deposit amount under the agreement shall become part of SBP’s Foreign Exchange Reserves. It will help support Pakistan’s foreign currency reservesand contribute towards resolving the adverse effects of the COVID-19 pandemic.
The deposit agreement reflects the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and will further augment the economic ties between the two brotherly countries, the SBP said.
The rupee lost 74 paisas to end at Rs176.20 to the dollar from last Friday’s closing of Rs175.46 in the interbank foreign exchange market. The rupee previously recorded the historic low at Rs175.73 on November 12, 2021.
Currency experts said that the rupee deteriorated because the dollar demand for import and corporate payments remained high during the day.
The rupee was also under pressure as the market was opened after two weekly holidays.
The experts said that the large import bill of the country has kept the rupee under pressure. The import bill of the country recorded an increase of 65.40 per cent to $25.1 billion during the first four months of the current fiscal year as compared with $15.17 billion in the corresponding period of the last fiscal year.
The rupee is likely to recover in the coming days as the State Bank of Pakistan (SBP) on Monday signed a deposit agreement with the Saudi Fund.
ISLAMABAD: Pakistan has banned foreign travel from six South African countries and Hong Kong due to the emergence of a new coronavirus variant namely ‘Omicron’.
Minister for Planning, Development and Special Initiatives Asad Umar in his Tweet said: “Based on the emergence of the new Covid variant, notification has been issued restrict travel from 6 South African countries and Hong Kong.”
The minister who is also Chairman of the National Command and Operation Center (NCOC) said the emergence of new variant makes it even more urgent to vaccinate all eligible citizens 12 years and older.
KARACHI: The US dollar hit all-time high at Rs176.50 during intraday trading on Friday but later reversed to close at Rs175.46 in the interbank foreign exchange market.
The Pak Rupee (PKR) closed at Rs175.46 to the dollar as against the previous day’s closing of Rs174.98 in the interbank foreign exchange market.
Currency experts said that the rupee remained under pressure due to the outflow of the foreign currency in the shape of external debt repayment.
Pakistan’s foreign exchange reserves fell by $766 million to $22.774 billion due a week. According to the State Bank of Pakistan (SBP), the country’s foreign exchange reserves were at $22.774 billion by week ended November 19, 2021 as compared with $23.55 billion by the week ended November 12, 2021.
They further said that the large imports are a major threat to the rupee stability. The import bill registered 65 per cent growth to $25.1 billion during first four months of the current fiscal year as compared with $15.17 billion in the corresponding months of the last fiscal year.
The Pak Rupee hit the all-time low of Rs175.73 to the dollar on November 12, 2021 in the interbank foreign exchange market.
The State Bank of Pakistan (SBP) in its annual report 2020/2021 on State of Pakistan’s Economy released a day earlier said there was a need to expand revenue by aligning the property values with market prices.
In this regard, FBR has revised the valuation of immovable property rates in July 2019 for various cities. “There is a need to ensure continuity in this exercise to remove the disparity between the property values and market rates,” the SBP said.
The issues of widening fiscal imbalance and declining tax-to-GDP ratio Pakistan, the government has initiated tax policy reforms in past few years. These efforts were further streamlined under the IMF-Extended Fund Facility (EFF) program in 2019/2020.
In overall terms, the ongoing tax policy reforms in the country, like the elimination of preferential general sales tax rates, phasing out income tax exemptions, using third party data sources, etc., are in line with the best practices identified in the literature. However, there is a need to widen the scope of these efforts to ensure a sustained increase in tax base,.
Corporate incomes tax reforms. To improve the base for direct taxes, Pakistan introduced wide-ranging reforms in CIT in March 2021. These included: (i) withdrawal of tax exemptions on 36 categories; (ii) reversal of reduced tax rates to normal rates on various categories; and (iii) conversion of investment and income tax exemptions to tax credits, for instance, persons engaged in coal mining, start-ups certified by Pakistan Software Export Board, export of computer software or IT exports etc. These measures are likely to add around Rs 140 billion in the overall FBR taxes in 2021/2022. To give further support to revenues, excess profit taxes may be imposed on selected sectors on the basis of profitability.
Personal income taxes: PITs in Pakistan are collected through progressive rates on various income slabs. The tax rates on salaried and non-salaried individuals were also increased in FY20 and were kept unchanged in 2020/2021. The revenue in this category may be propped up by increasing the tax rates on the highest slabs or by the introduction of a temporary surcharge.
Consumption taxes: FBR has introduced various reforms aiming at Simplification of GST, and elimination of preferential rates including (i) replacing GST zero-rating regime on five export-oriented sectors (textile, leather, carpets, sports goods, and surgical goods) with normal tax rates in 2019/2020; (ii) eliminating preferential GST rates for sectors like sugar and steel in 2019/2020; (iii) extending GST to e-commerce sales transactions through Finance Act 2021. This step was taken after the surge in sales through e-commerce platforms during the lockdowns. Although currently, the contribution of this head in the total collection is negligible, this is expected to grow with expanding size of digital transactions. The tax base can be further enhanced by curtailing exemptions and improving tax design. Specifically, the tax incentives given during Covid can be gradually rolled back once the economic recovery takes hold.
Capital income taxes: To minimize tax evasion, FBR has initiated the use of third-party data sources through Maloomat Tax-Ray from September 2020. This system collects third-party information (such as banks) for individuals’ assets and withholding deductions, which help in determining accurate tax liabilities. Moreover, it also facilitates the tax-payer in evaluating the accurate tax liability while filing the tax returns.
