Pkrevenue.com

Tag: finance ministry

  • Pensioners living abroad require presenting life certificate

    Pensioners living abroad require presenting life certificate

    ISLAMABAD: The finance division has made it mandatory for pensioners living abroad to submit life certificate in place of biometric verification.

    The ministry of finance on Tuesday issued a notification stating that through a SRO issued January 28, 2021 it was made mandatory for pensioners to ensure verification of biometric in order to receive pension.

    The ministry however stated that the pensioners receiving pension abroad through Pakistan Mission Office, Ministry of Foreign Affairs (MOFA) / Chief Accounts Officer, MOFA will continue to provide proof of life through a medical certificate or by way of Life Certificate signed by a Gazetted Officer of Pakistan Mission in that area/country.

    The Pakistan Mission, shall forward the life certificate or medical certificate through chief accountants office, MOFA to Accounts Office concerned for information and record purposes.

  • Hammaz Azhar given Finance Minister portfolio

    Hammaz Azhar given Finance Minister portfolio

    ISLAMABAD: Hammaz Azhar has been named new Finance Minister of the country. Hammad Azhar, who is presently federal minister for industries and production, has confirmed his new assignment through a tweet on Monday.

    “I am honored to be entrusted with the additional charge of finance by the prime minister,” Hammad Azhar said in the tweet.

    “Pakistan’s economy has made significant gains towards stabilization since 2018. We shall continue to consolidate these gains and strengthen the growth momentum,” he added.

    Earlier, Senator Shibli Faraz confirmed the changes in the finance ministry.  The government decided to remove Dr Abdul Hafeez Shaikh from the post of finance minister and replace him with Minister for Industries and Production Hammad Azhar, Faraz told a private TV channel.

    He said that Prime Minister Imran Khan decided to bring in a new finance team in view of the inflation that had taken place.

    Hammad is the third finance minister of PTI government.

    Prime Minister Imran Khan gave the portfolio of finance to Hammad Azhar who is a young and able minister so that he devises policies according to the ground realities of Pakistan and the poor get relief, according to Faraz.

  • Stamp duty collection falls by 24 percent in first half

    Stamp duty collection falls by 24 percent in first half

    The revenue collection from stamp duty fell sharply by 24 percent during first half of the current fiscal year owing to significant decline in revenue reported by the province of Punjab, according to a report issued by the federal finance ministry.

    (more…)
  • Budget deficit widens to 2.5 percent in first half: finance ministry

    Budget deficit widens to 2.5 percent in first half: finance ministry

    ISLAMABAD: The budget deficit has widened to 2.5 percent of the GDP during first half (July – December) of the current fiscal year 2020/2021 as compared with the deficit of 2.3 percent in the corresponding half of the last fiscal year, according to statistics released by the ministry of finance on Wednesday.

    According to the details, the total revenue was at Rs3,351 billion during the first half of the current fiscal year. Meanwhile, total expenditures was at Rs4,489 billion in the same period of the current fiscal year. Therefore, budget deficit stood at Rs1,138 billion or 2.5 percent of the GDP.

    The total tax revenue was recorded at Rs2,456 billion during the first half of the current fiscal year.  Out of which the contribution of the federal government was Rs2,210 billion and the rest Rs246 billion was by the provincial governments.

    The non-tax revenue was recorded at Rs895 billion out of which federal government contributed Rs484 billion and the provincial governments share was at Rs47 billion.

    The current expenditure has increased to Rs4,029 billion out of which the government’s mark up payments against loans were at Rs1,475 billion and defence expenditures were at Rs486 billion.

    The government spent Rs458 billion on development expenditure during the first half of the current fiscal year.

    The total revenue collection to GDP ratio during first half of the current fiscal year was at 7.4 percent. The total expenditure to GDP ratio was at 9.9 percent.

  • Remittances to remain strong for financing trade deficit: finance ministry

    Remittances to remain strong for financing trade deficit: finance ministry

    ISLAMABAD: The ministry of finance on Monday hoped the inflows of remittances to remain strong enough to support the financing of the trade deficit in coming months.

    In its monthly economic update and outlook – January 2021, the ministry said that the sudden surge in imports due to the increase in international oil prices and import of additional food products enhanced imports by $ 1.2 billion alone in December 2020 ($ 5.0 billion) compared to December 2019 ($ 3.8 billion).

    “However, there was no pressure on foreign reserves as Current Account remained in surplus for H1 FY 2021. Looking forward, depending on these explanatory factors, imports may remain $ 4.5 – $ 5.0 billion in next month,” the ministry said.

    Exports are expected to stabilize around current levels, it added.

    “But in the baseline scenario, the trade balance is not expected to further deteriorate. Remittance inflows remain strong and continue to provide strong support to the financing of the trade deficit,” the ministry said.

    The finance ministry said that Pakistan’s economy consecutively suffered from Balance of Payment (BOP) crisis and COVID-19 pandemic kept economy below its potential level.

    Since the start of current fiscal year, economy has started recovering. The government is committed to monitor external balance and its financing closely.

    Furthermore, the government has also taken policy and administrative measures to monitor the supply and market functioning wherever necessary to mitigate inflationary pressure.

    The restoration and acceleration of Pakistan’s productive capacity is a necessity to ensure a high and sustainable growth in the near and longer term. In the near future, the economic recovery is expected to translate into more productive investment expenditures.

    The government is committed to motivate investments in crucial sectors of the economy to enhance productive capacities and to stimulate economic growth.

    Fiscal performance remained satisfactory. Currently, the fiscal policy actions are primarily concentrated on relief measures to support businesses stay afloat and to protect vulnerable segments of society.

    At the same time, the government is focused on containing the fiscal deficit at a manageable level and keeping the primary balance at a sustainable level.

    According to latest fiscal numbers, healthy growth in non-tax revenues, satisfactory performance of FBR tax collection despite issuance of higher number of refunds and controlling of expenditures other than mark-up payments and COVID related would pave the way to maintain the fiscal deficit within the reasonable limits in coming months, the ministry said.

    The finance ministry said that the current outlook ensures economic revival on the basis of continued recovery seen in recent months but there is possibility of slower economic activities especially in services sector depending on the intensity and duration of pandemic.

  • Process initiated to assess, evaluate retirement benefit scheme

    Process initiated to assess, evaluate retirement benefit scheme

    ISLAMABAD, July 12, 2024 – In a significant move aimed at managing fiscal responsibilities, the federal government of Pakistan has launched an initiative to evaluate and assess liabilities pertaining to its retirement benefit schemes.

    (more…)
  • Rising coronavirus cases may impact revenue collection in second quarter

    Rising coronavirus cases may impact revenue collection in second quarter

    ISLAMABAD: The ministry of finance has said that the rising cases of coronavirus may slowdown economic activities and adversely impact revenue collection in second quarter (October – December) of the current fiscal year.

    (more…)
  • Budget deficit swells to 1.1 percent in first quarter

    Budget deficit swells to 1.1 percent in first quarter

    ISLAMABAD: The budget deficit has ballooned to 1.1 percent of the GDP for the first quarter (July – September) 2020/2021 as compared with the deficit of 0.7 percent in the corresponding quarter of the last fiscal year, according to fiscal statistics released by the finance ministry on Wednesday.

    The size of GDP has been estimated at Rs45,567 billion by the end of first quarter of the current fiscal year as compared with the size of Rs44,003 billion in the same period of the last fiscal year.

    The ministry said that the total revenue had declined nominally to Rs1478.75 billion during the first quarter of the current fiscal year as compared with Rs1,489 billion in the same quarter of the last fiscal year.

    Tax revenue has also declined to Rs1,122 billion for the quarter under review as compared with Rs1,142 billion in the same quarter of the last fiscal year.

    Out of the total tax revenue for the first quarter of the current fiscal year, the federal government contributed Rs1,011 billion and provincial governments contributed Rs111.76 billion.

    The ministry said that non-tax revenue witnessed an increase to Rs356.35 billion during the first quarter of the current fiscal year as compared with Rs346 billion in the same quarter of the last fiscal year.

    Out of total non-tax revenue, the federal government contribution was Rs336 billion and the share of provincial government was Rs20 billion.

    Total expenditures have registered significantly to Rs1,963 billion during July – September of fiscal year 2020/2021 as compared with Rs1,775 billion in the corresponding quarter of the last fiscal year.

    Current expenditure sharply increased to Rs1,812 billion during first quarter of the current fiscal year as compared with Rs1,582 billion in the same quarter of the last fiscal year.

    Expenditure of mark-up payment increased to Rs742 billion as compared with Rs571 billion.

    However, defence expenditure fell to Rs224 billion during first quarter of the current fiscal year as compared with Rs242 billion in the same quarter of the last fiscal year.

    The government spent Rs215 billion on development projects during the first three months of the current fiscal year as compared with Rs147.17 billion in the corresponding period of the last fiscal year.

    The fiscal deficit for the first quarter of current fiscal year was recorded at Rs484 billion as compared with the deficit of Rs286 billion in the same quarter of the last fiscal year.

  • Govt. slashes prices of petrol, HSD

    Govt. slashes prices of petrol, HSD

    ISLAMABAD: The government on Saturday announced reduction in prices of petrol and High Speed Diesel (HSD) effective from November 01, 2020.

    (more…)
  • Inflation is one of main challenges: finance ministry

    Inflation is one of main challenges: finance ministry

    ISLAMABAD: The ministry of finance has said that economic growth is showing persistent recovery but the inflation is one of the main challenges.

    According to monthly economic update issued on Tuesday, the finance ministry said that economic growth is showing persistent recovery in first quarter (July – September) 2020/2021.

    In absence of any adverse future shocks, the economy is on its way not only to rebound from the pandemic related crises, but also to record a reasonable growth rate for the full fiscal year.

    “Presently, inflation is one of the main challenges. However, the government is taking all possible measures to control it,” it said.

    Together with measures that ensure sufficient supply of goods, especially food related production, it is expected that inflation will remain under control whereas policy measures will contribute to better functioning markets.

    Most importantly, although domestic economic activity is expected to recover, still the risk of pandemic attack persists if the SoPs are not fully followed.

    “Thus, Pakistan’s near-term economic prospects are promising subject to reducing uncertainty and restoring business confidence,” the ministry added.

    Usually main drivers of the consumer price index (CPI) are international commodity prices, especially food and oil products, the exchange rate, growth of broad money and the policy interest rate.

    “However, in Pakistan most recently, CPI remained driven by higher food prices, while non-food inflation remained moderated,” the ministry added.

    Supply disruption in food related commodities was mainly due to extended monsoon season which has built inflationary pressure.

    In recent weeks, the international food prices have rebounded somewhat, whereas oil prices declined and the Pak Rupee exchange rate slightly appreciated against the USD, thus easing out inflationary prospects.

    There is no change in Indirect tax or other fiscal measures. Likewise, interest rate is kept same as per the policy interest rate in July 2020.

    “Thus, accommodative Fiscal and Monetary Policy helped in controlling core inflation. The government is making all efforts to control inflation by smoothing supply even by expediting imports of sugar and wheat, which are considered as essential food commodities.

    On weekly basis, impact can be predicted from decline of 0.23 percent in SPI on 22nd October 2020. This decline occurred after seven weeks.

    On the basis of current economic scenario, headline inflation is expected to remain within a range of 7.3 to 9.3 percent in October 2020.

    Economic recovery has been observed from the start of the new fiscal year.

    Most importantly the decrease in number of Corona virus cases and the resumption of economic activities have contributed in dampening the negative impact of health crisis on the economy.

    Economic recovery was seen in Q1 FY2021 and it is expected that this trend will continue but fears and risk factors are appearing due to the possible second wave of COVID, the ministry said.