Pkrevenue.com

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.

  • ITFC provides $761.5 million for Pakistan oil, gas import

    ITFC provides $761.5 million for Pakistan oil, gas import

    ISLAMABAD: The International Islamic Trade Finance Corporation (ITFC) will provide financing of an amount $761.5 million to Pakistan for import of oil and gas.

    In this regard a financing agreement amounting to $761.5 million has been signed between the Ministry of Economic Affairs, Government of Pakistan and International Islamic Trade Finance Corporation (ITFC) for import of crude oil, refined petroleum products and LNG etc.

    The financing agreement was signed by Mian Asad Hayaud Din, Secretary, EAD and Eng. Hani Salem Sonbol, CEO, ITFC. The facility has been made effective immediately and ready for utilization by Pakistan State Oil Company Ltd (PSO), Pak Arab Refinery Ltd (PARCO) and Pakistan LNG Ltd (PLL) for import of oil and gas.

    This Syndicated Murabaha Financing facility of $ 761.5 million is for a period of one year and is a part of umbrella Framework Agreement signed with ITFC in June 2021 for total envelop of $ 4.5 billion ($ 1.5 million annually) for a period of three-years.

    Originally, ITFC had agreed to provide the financing of US$ 300 million. However, due to growing energy needs of the country and enhanced confidence level of international financial institutions on economic reforms and recovery amid COVID-19 pandemic, the financing was over-subscribed by 2.5 times i.e. from $ 300 million to from $ 761.5 million.

    The financing facility will also be helpful in financing oil and gas import bill of the country and easing of pressure on foreign exchange reserves of the country.

    Mian Asad Hayaud Din, Secretary, EAD appreciated the support for ITFc for arranging US$ 761.5 million for trade financing. He lauded the efforts of Eng. Hani Salem Sonbol, CEO, ITFC and his team for making this transaction successful.

    The ITFC and GOP have also agreed to continue their cooperation in future to mobilize financial resources to support Pakistan in its endeavours to achieve its economic growth targets through ITFC financing facility.

    Trade financing facility of $551 million signed for import oil, LNG
  • Dollar advances to Rs172.93 at interbank closing

    Dollar advances to Rs172.93 at interbank closing

    KARACHI: The US dollar advanced to Rs172.93 at the closing of the interbank foreign exchange market on Wednesday.

    The dollar recorded the gain for the third consecutive gain. The rupee lost Rs1.30 against the dollar to close at Rs172.93 from the previous day’s closing of Rs171.63 in the interbank foreign exchange market.

    The currency dealers said that the rupee witnessed massive decline owing to higher dollar demand for import payments.

    The import bill registered a growth of 65.15 per cent to $25.06 billion during July – October 2021 as compared with $15.17 billion in the same period of the last fiscal year.

    The said that non-availability of expected inflows from Saudi Arabia had also put pressure on the dollar demand. The Saudi government on October 26, 2021 pledged to provide $3 billion assistance to Pakistan in managing balance of payment.

    The local unit recorded the all-time low of Rs175.27 on October 26, 2021.

    Dollar makes sharp gain to end at Rs171.63
  • FBR decides posting officials for sugar crushing 2021-22

    FBR decides posting officials for sugar crushing 2021-22

    ISLAMABAD: The Federal Board of Revenue (FBR) has decided to deploy officials at sugar mills for monitoring of production and supply of sugar, sources said on Tuesday.

    The sources said that the tax offices having jurisdiction over sugar mills would post their officials for the crushing season 2021-2022.

    In this regard the FBR would invoke Section 40B of Sales Tax Act, 1990 for physical monitoring of manufacturing and supply of the commodity.

    In this regard, tax offices in Lahore have initiated the process for deploying the officials at the sugar mills. The Regional Tax Office (RTO) Lahore has placed its officials at the disposal of chief commissioner Inland Revenue, Large Taxpayers Office (LTO) Lahore.

    The sources said that the monitoring would help bringing down retail price of the commodity in the local market.

    It is worth mentioning that the sugar prices have gone up to Rs160 per kilogram in some parts of the country. However, as the crushing is coming near the prices have come down.

    This year the FBR has planned to document all the supply chain from manufacturing to the retail sale of the sugar.

    Through Finance Act, 2021 the treatment of sales tax on supply of sugar was changed and it was brought taxation at the retail price. The FBR through Circular No. 02 of 2021 stated: “Currently, the price of white crystalline sugar is fixed at Rs60 per kg in terms of SRO 812(I)/2016 dated September 02, 2016, which is considerably below the actual market price of the commodity.

    “In order to address this anomaly, sugar is proposed to be included in Third Schedule of the Sales Tax Act, 1990, so that sales tax is charged and collected on actual retail price of the product at the manufacturing stage.

    “This measure would not only ensure due payment of tax but also help in putting a more effective price control mechanism in place for sugar.”

    The rate of sales tax at 17 per cent on retail price was to be applicable on sugar supply from July 01, 2021. However, the implementation was deferred till November 30, 2021. Therefore, the normal sales tax rate on sugar supply will be applicable from December 01, 2021.

    Meantime, the FBR has increased the minimum sales tax rate on domestically produced sugar to Rs72.22 per kg from Rs60 per kg.

    Tax on sugar retail sale to be imposed from December 01
  • Pakistan’s fiscal deficit lowers by 9.5% in first quarter

    Pakistan’s fiscal deficit lowers by 9.5% in first quarter

    KARACHI: Pakistan’s fiscal balance in the outgoing first quarter of 2021/2022 posted a deficit of PKR 438 billion, -9.5 per cent YoY lower than prior year’s deficit, according to data released by the finance ministry on Tuesday.

    In terms of per cent GDP, the deficit arrived at 0.8 per cent in 1QFY22 compared to 1.1 per cent recorded in 1QFY21 (PKR 484 billion), said analysts at Arif Habib Limited.

    However, the primary surplus during the period stood at PKR 184 billion (0.3 per cent of GDP in 1QFY22) , down 29 per cent YoY, compared to a primary surplus of PKR 258 billion witnessed same period last year (0.6 per cent of GDP).

    Primarily, total revenue growth of 22 per cent in 1QFY22 to PKR 1.8 trillion (1QFY21: PKR 1.5 trillion) aided the fiscal balance, translating into 3.4 per cent of GDP vs. 3.2 per cent same period last year.

    The total tax revenue collection was up by 37 per cent YoY to PKR 1.5 trillion. Indirect taxes (+42 per cent YoY to PKR 917 billion) mainly on the back of higher sales tax (+43 per cent YoY to PKR 264 billion), and direct taxes (+32 per cent YoY to PKR 481 billion amid higher number of tax payers), contributed to the overall collection.

    In addition, the government collected PKR 276 billion in non-tax revenues, displaying a decline of 23 per cent YoY. This was particularly owed to lower Petroleum Levy (-90 per cent YoY | PKR 13 billion). On the flipside, the surplus profit of State Bank of Pakistan and Pakistan Telecommunication Authority increased during 1QFY22 to PKR 109 billion (+4 per cent YoY) and PKR 30 billion (+269 per cent YoY), respectively.

    In addition, total expenditures went up by 14 per cent YoY to PKR 2.3 trillion (4.2 per cent of GDP vs. 4.3 per cent of GDP in 1QFY21).

    Further breakup revealed that current expenditure underwent an uptick of 9 per cent YoY of which defence rose by 17 per cent YoY.

    However, the markup expenses went down by 16 per cent YoY to PKR 623 billion. Moreover, development expenditure and net lending undertaken by the government increased by 38 per cent YoY to PKR 180 billion.

    Total PSDP expenditure in 1QFY22 arrived at PKR 262 billion (+63 per cent YoY) with provincial expenditure at PKR 154 billion (+71 per cent YoY), outdoing federal disbursement of PKR 108 billion (+53 per cent YoY).

    Pakistan’s fiscal deficit narrows in nine months
  • Dollar makes sharp gain to end at Rs171.63

    Dollar makes sharp gain to end at Rs171.63

    KARACHI: The US dollar made a gain of Rs1.12 against the Pak Rupee on Tuesday as import payment demand remained high during the day.

    The rupee ended at Rs171.63 to the dollar from the previous day’s closing of Rs170.51 in the interbank foreign exchange market.

    The dollar advanced against the local currency for the second straight trading session. Currency experts said that the rupee made recovery during the past week after Saudi pledge to assist Pakistan in balance of payment.

    However, the dollar for the large import payment has once again started deterioration in the rupee value.

    The import bill registered a growth of 65.15 per cent to $25.06 billion during July – October 2021 as compared with $15.17 billion in the same period of the last fiscal year, according to the PBS.

  • Two basic salaries announced for timely tax inquiry report

    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
  • Inflation is core issue in Pakistan: PM Imran

    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
  • Consumer confidence declines sharply on high inflation

    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…)
  • Pakistan to emerge as food surplus country: PM Imran

    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.

  • Pakistan, Iran discuss promoting agriculture cooperation

    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…)