Category: Top stories

Top stories featuring the most important and trending news updates from politics, business, world affairs, and breaking events across various sectors.

Tax collection from property purchase climbs up 24%

ISLAMABAD: The collection of advance tax from purchase of immovable properties climbed up by 24 per cent during first half of the current fiscal year.

According to official data released by Federal Board of Revenue (FBR), the collection of advance tax on purchase / transfer of immovable property increased to Rs27.7 billion during first half (July – December) of fiscal year 2021/2022 as compared with Rs22.36 billion in the corresponding half of the last fiscal year.

READ MORE: FBR registration made mandatory for housing projects

The FBR collects advance income tax on purchase or transfer of immovable property under Section 236K of the Income Tax Ordinance, 2001. Under this Section any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect advance tax from purchaser or transferee at the rate of one per cent of the fair market value.

READ MORE: Advance tax on purchase of immovable property

The collection of withholding tax from income from property also recorded an increase of 12 per cent during the first half of the current fiscal year.

The FBR collected withholding tax amounting Rs14.90 billion on income from property during first half (July – December) of 2021/2022 as compared with Rs13.32 billion in the corresponding half of the last fiscal year.

The authorities collect withholding tax on income from property under Section 155 of the Income Tax Ordinance, 2001.

READ MORE: Income tax on rental immoveable property

March 8, 2022
SBP decides to keep policy rate unchanged at 9.75%

KARACHI: The State Bank of Pakistan (SBP) on Tuesday decided to keep policy rate unchanged at 9.75 per cent for the next two months.
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March 8, 2022
Rupee falls to all-time low against dollar at Rs178.61

KARACHI: The Pakistan Rupee (PKR) fell to an all-time low at Rs178.61 against the dollar on Tuesday amid significant rise in international oil prices and Ramzan related demand for imported goods.

The rupee previously recorded the all-time low at Rs178.24 to the dollar on December 29, 2021.

READ MORE: Rupee ends near record low against dollar

The rupee ended Rs178.61 to the dollar from previous day’s closing of Rs178.13 in the interbank foreign exchange market.

The local currency recorded a decline of Rs21.07 or 13.37 per cent from Rs157.54 on June 30, 2021 to the present level of Rs178.61.

READ MORE: PKR gains 33 paisas to dollar after 3-day depreciation

Currency experts said that Ramzan related commodity buying escalated the dollar demand. Besides rising oil prices in the international market also depreciated the rupee value.

The import bill of petroleum group recorded an increase of 107 per cent to $11.7 billion during first seven months of the current fiscal year as compared with $5.64 billion in the corresponding months of the last fiscal year.

READ MORE: Dollar up 21 paisas to PKR amid surge in global oil prices

The dealers said that the rise in import bill will also widen the current account deficit.

The country’s Current Account Deficit (CAD) surged to its highest ever monthly deficit of $2.6 billion in January 2022 ($1.9 billion in December 2021) taking CAD of $11.6 billion during the first seven months of the current fiscal year.

READ MORE: Dollar surges 21 paisas to PKR on high oil price concerns

March 8, 2022
ECC approves Ramzan relief package worth Rs8.28 bn

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a Relief Package worth Rs8.28 billion to provide essential items at subsidized rates during the holy month of Ramzan.

The ECC approved a summary tabled by Ministry of Industries and Production for Ramzan Relief Package 2022.

The ECC after discussion approved Ramzan Relief Package 2022 for 19 essential items to be sold at subsidized rates at Utility Stores Corporation (USC) with total subsidy of Rs. 8.28 billion.

READ MORE: PM Imran reduces, freezes POL prices

Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting.

Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Railways Muhammad Azam Khan Swati, Federal Minister for Energy Hammad Azhar, Federal Secretaries and senior officers attended the meeting.

ECC approved Kamyab Overseas Programme (KOP) as a new component of Kamyab Pakistan Programme. The new initiative is meant for prospective low income overseas workers having confirmed foreign job offer, employment agreement and valid travel documents and registered with NSER to avail interest free loans under KPP.

READ MORE: PM Imran announces setting up technology startup fund

Maximum amount of loan would be Rs. 300,000 and returned in easy installments starting after three months of departure. The loan will be provided to 10,180 beneficiaries with estimated required funds of Rs. 3 billion for the 4th quarter of 2021-2022.

ECC considered and approved a summary presented by Ministry of Commerce on proposed amendments in the import and export policy order 2020 for the development of Integrated Tariff Management System (ITMS) for Pakistan Single Window (PSW).

Ministry of Energy (Petroleum Division) submitted a summary for allocation of Gas from Togh Field on commercial basis.

The ECC after discussion allowed up to 16 MMCFD gas from Togh Field to SNGPL on commercial basis. The wellhead price of the gas will be decided by the concerned regulator under the applicable rules and policy. Ministry of Energy (Petroleum Division) submitted a summary to allow amending the Petroleum Concession Agreement, allowing GHPL Assignment of Working interest in Wali, Jandaran West, Saruna and Pesu block of OGDCL.

The ECC approved to amend the respective Petroleum Concession Agreements by allowing GHPL to increase its Working Interest above its statutory Working Interest of 2.5 per cent being state participator in Wali, Jandran West,Saruna and Pesu blocks of OGDCL.

Ministry of Energy (Power Division) submitted a summary on incentive package announced by the Prime Minister regarding reduction in price of electricity.

The ECC considered and approved PM’s relief package of Rs. 5 per unit by way of reduction in electricity charges base rate for the relief period of four months (March 2022 to June 2022).

The relief package will be applicable to all commercial and domestic non- ToU consumers having monthly consumption up to 700 units, excluding life-line consumers.

The cash flow requirement for the PM Relief Package is Rs. 136 billion. Ministry of Energy (Petroleum Division) submitted another summary on reimbursement of price differential claims of oil marketing companies (OMCs) and refineries, in line with PM relief package of reduction in the consumer prices of Motor Spirit and Diesel by Rs. 10 per litre. The price differential would be paid to the Oil Marketing Companies/ Refineries by the Government as a subsidy to avert any shortage in the market.

The ECC approved special PDC disbursement mechanism to pay the PDC speedily within 15 days, opening of special assignment account with PSO and initial amount of Rs20 billion to PSO in accordance with the mechanism.

The ECC also considered and approved following Technical Supplementary/ Supplementary Grants:

i. Rs. 428.90 million to Foreign Affairs Division to meet the expenditure for holding of 48th session of the OIC Council of Foreign Ministers to be held in Islamabad on 22-23 March, 2022.

ii. Rs. 47.561 million to poverty Alleviation and Social Safety Division.

iii. Rs. 135.078 billion for principal and interest payments against Naya Pakistan Certificates and Islamic Naya Pakistan Certificates.

March 7, 2022
Pakistan stocks nosedive on world oil, political unrest

KARACHI: Pakistan’s stocks plunged by 1,284 points on Monday owing to sharp increase in world oil prices and political unrest locally.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,267 points as against last Friday’s closing of 44,551 points, showing a decrease of 1,284.38 points.

READ MORE: Weekly Review: market to remain jittery

Analysts at Arif Habib Limited said that bloodbath session was observed today due to political unrest and overheated commodities cycle.

Market opened in the red zone and stayed under pressure throughout the day. Across the board selling was witnessed by the institutional investors.

READ MORE: Stocks gain 25 points in range bound trading

In the last trading hour, value buying was observed mainly in the E&P sector.

Sectors contributing to the performance include Cement (-235.2 points), Banks (-222.1 points), Technology (-159.2 points), Fertilizer (-97.8 points) and Power (-91.3 points).

READ MORE: Stocks make slight gain amid higher fuel price concerns

Volumes increased from 134.8 million shares to 236.9 million shares (+75.7 per cent DoD). Traded value also increased by 73.4 per cent to reach US$ 46.1 million as against US$ 26.6 million.

Stocks that contributed significantly to the volumes include HUMNL, WTL, FLYNGR1, TRG and TELE.

READ MORE: Stocks shed 289 points on high global commodity prices

March 7, 2022
Rupee ends near record low against dollar

KARACHI: The Pak Rupee (PKR) ended near to historic low against the dollar on Monday owing to oil prices spiked to multi-year high in international markets.

The rupee fell by 63 paisas and was trading at Rs178.13 to the dollar as compared with last Friday’s closing of Rs177.50 in interbank foreign exchange market.

READ MORE: PKR gains 33 paisas to dollar after 3-day depreciation

The rupee recorded historic low at Rs178.24 to the dollar on December 29, 2021.

Currency experts said that the uncertainty over oil prices pressured the local currency. The oil prices soared to $140 per barrel in international markets.

READ MORE: Dollar up 21 paisas to PKR amid surge in global oil prices

They said that the rising international oil prices were still threat to the rupee stability. The rupee was witnessed sharp decline since start of Russia-Ukraine war, which resulted in massive jump in international oil prices.

READ MORE: Dollar surges 21 paisas to PKR on high oil price concerns

Pakistan’s import bill of petroleum group recorded an increase of 107 per cent to $11.7 billion during first seven months of the current fiscal year as compared with $5.64 billion in the corresponding months of the last fiscal year.

The surge in dollar demand for import bill will further weaken balance of payment as current account deficit already touched record in January 2022.

READ MORE: Dollar eases by six paisas to PKR

The country’s Current Account Deficit (CAD) surged to its highest ever monthly deficit of $2.6 billion in January 2022 ($1.9 billion in December 2021) taking CAD of $11.6 billion during the first seven months of the current fiscal year.

March 7, 2022
FBR allows 20-year old house value to open plot

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the value of immovable property constructed more than 20 years equal to the value of open plot.

According to property valuation for Karachi issued through SRO 345(I)/2022, the FBR issued a fresh property valuation for the residential and open plots located in various parts of the city.

READ MORE: FBR re-notifies valuation of immovable properties

The property registrar of the provincial government will collect withholding tax on the behalf of the FBR on the basis of property valuation fixed by the federal tax authority.

The FBR allowed reduction in valuation of properties on the basis of age of the built up structure.

It said that the value of residential built up property (including basement and first floor) is allowed to be reduced according to the following criteria:

01. Age of built up structure up to five years: no reduction is allowed in value.

02. Age of built up structure between five to 10 years: five per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 15 years: 7.5 per cent has been allowed as reduction in value.

04. Age of built up structure between 15 to 20 years: 10 per cent has been allowed as reduction in value.

05. Age of built up structure more than 20 years: the value shall be equal to an open plot.

The FBR further allowed reduction in value of built up properties (flats and apartments) according to following criteria:

01. Age of built up structure up to five years: no reduction will be allowed in value.

02. Age of built up structure between five to 10 years: 10 per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 20 years: 20 per cent has been allowed as reduction in value.

04. Age of built up structure between 20 to 30 years: 30 per cent has been allowed as reduction in value.

05. Age of built up structure more than 30 years: 50 per cent has been allowed as reduction in value.

The FBR also allowed reduction in value of commercial built up property according to the following criteria:

01. Age of built up structure up to 10 years: no reduction is allowed.

02. Age of built up structure between 10 to 15 years: 5 per cent has been allowed as reduction in value.

03. Age of built up structure between 15 to 20 years: 8 per cent has been allowed as reduction in value.

04. Age of built up structure more than 20 years: 10 per cent has been allowed as reduction in value.

The FBR said that the value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10 per cent.

The value of commercial built up excluding ground floor has been reduced by 25 per cent.

The value of Residential Plots (Defence Housing Authority) of following categories may be decreased by 25 per cent:-

01. Nala facing plot

02. Commercial facing plot

03. School facing, mosque facing plot/Graveyard facing plot.

04. Rear plot (Back Side plot)/Triangle plot

For further details download new FBR’s property valuation for Karachi city.

March 7, 2022

FBR re-notifies valuation of immovable properties

ISLAMABAD: The Federal Board of Revenue (FBR) has re-notified fresh and revised valuation of immovable properties.

The FBR on March 02, 2022 issued re-notified the valuation tables of immovable properties for major cities of the country.

The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022. The FBR once again deferred the implementation on the valuation table till February 28, 2022.

The revenue body decision to defer the implementation came after several complaints received by the FBR those were pertaining to high valuation in the new tables.

The complaints were lodged by stakeholders including real estate agents and town developers, who pointed out extraordinary rise in property rates in the latest valuation tables.

The FBR issued detailed instructions to the tax offices on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.

Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.

The FBR asked all the Chief Commissioners Inland Revenue (CCIRs) to constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021.

Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.

To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.

However, certain objections from stakeholders highlighted anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

Following are the valuation tables re-notified by the FBR:

PM Imran directs implementing incentives for IT industry

ISLAMABAD: Prime Minister Imran Khan on Friday directed the authorities to timely implement incentives for freelancers and IT industry as announced by the government.

The prime minister, chairing a meeting to review the incentives being provided to the IT sector, said the government was extending maximum facilitation to the sectors with immense potential to support the national economy.

READ MORE: PM Imran reduces, freezes POL prices

Mentioning the historic package announced by the government for promotion of the IT sector, he said the government had introduced massive reforms to facilitate the business sector.

He viewed that the facilitation of the skilled freelancers would lead to increasing the remittances as promotion of the IT exports was among the government’s priorities.

The participants of the meeting were apprised of the implementation status of the incentives for the startups, industrial sector and IT companies.

READ MORE: PM Imran announces setting up technology startup fund

It was told the implementation of the government’s recently announced industries and IT package was going on with fast pace and an increase in the number of freelancers had been witnessed consequent to the government’s measures.

The meeting was told that the one-step registration of freelancers through the portal of Pakistan Software Export Board had been ensured which would automatically register them with the Federal Board of Revenue.

READ MORE: Tax reduced on POL products to ease inflation: PM Imran

Moreover, the State Bank of Pakistan was also taking steps to ensure the transfer of freelancing funds from abroad through the banking channels. Besides, a mechanism to take benefit from the tax exemptions for the IT companies would also be in place very soon.

An awareness system to ensure the implementation of the announced facilities through commercial banks would also be initiated.

READ MORE: PM Imran launches 2nd phase of Raast payment system

Federal ministers Asad Umar, Hammad Azhar, Chairman of Special Technology Zones Authority Amer Hashmi, and senior officers attended the meeting. Governor of State Bank Raza Baqir joined via video link.

March 5, 2022
Pakistan, Saudi Fund sign debt service suspension pacts

ISLAMABAD: Pakistan and Saudi Fund for Development (SFD) have signed debt service suspension agreements amounting $846 million, a statement said on Thursday.

The agreements have been signed under the G-20 Debt Service Suspension Initiative (DSSI) Framework.

Nawaf bin Saeed Al-Malkiy, Ambassador of the Kingdom of Saudi Arabia to Pakistan witnessed the signing ceremony held in Islamabad.

READ MORE: SBP signs $3bn deposit agreement with Saudi Fund

Dr. Saud Ayid R. Alshammari, Director General for Asia represented the SFD in the signing ceremony.

This amount which was due to be paid during the testing period from May 2020 to December 2021 will now be repaid over a period of six years starting from 2022 in semi-annual installments.

READ MORE: Saudi oil facility for Pakistan to start soon

Due to the support extended by the Saudi Fund for Development – one of the major bilateral development partners of Pakistan – along with other bilateral creditor countries, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and socioeconomic needs of the Islamic Republic of Pakistan.

The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, is $ 3,688 million.

READ MORE: KSA extends oil on deferred payments to Pakistan

Pakistan has already concluded and signed 80 agreements with 21 bilateral creditors for the rescheduling of its debts under the G-20 DSSI framework, amounting to rescheduling of $ 2,088 million.

The signing of agreements with the Saudi Fund for Development brings the total rescheduled amount to $ 2,934 million while negotiations for the remaining $ 754 million are underway.

The agreements for this amount are expected to be signed with respective bilateral development partners within the current fiscal year.

READ MORE: PM Imran thanks Saudi assistance; dollar retreats

March 4, 2022