ECONOMIC TIMES OF PAKISTAN
NA doubts FBR missed target due to low imports
A parliamentary panel has expressed doubts about the Federal Board of Revenue (FBR)’s claim of missing the revenue collection target due to import compression and also suspected that even the 16percent increase in collection against the target of 44percent growth was the result of blocking tax refunds and high inflation.
In a meeting of the National Assembly Standing Committee on Finance, an FBR team could not give satisfactory replies to the question about the board’s strategy to achieve 44percent growth in revenues. Former finance minister Asad Umar chaired the meeting.
The standing committee meeting came at a time when a few top-tier FBR officers were thinking of tinkering with the tax collection figures in order to pass the blame of failure on to external factors, according to sources.
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Farmers demands govt write off loans
The government should write-off interest-based loans disbursed to farmers by public and private financial institutions and extend monetary and other forms of assistance to the agricultural areas hit hard by the current heat wave, said Farmers Bureau of Pakistan (FBP) President Dr Zafar Hayyat.
While talking to source on Friday, he called upon the government to declare emergency in areas affected by extreme weather conditions and document the tentative losses incurred by farmers due to destruction of corn, cotton and rice crops.
He further urged the government to announce an incentive package enabling farmers to recover the losses and sow crops for the next season.
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Pakistani businessmen worried about impact of sit-in on economy
The upcoming Azadi March and possibility of yet another sit-in by opposition political parties have sparked a fresh wave of concern among the business community of Pakistan.
Though the planned sit-in will take place in Islamabad, still businessmen, especially those focused on the export and import business, feel the political chaos would have adverse economic implications throughout the country.
Traders have complained that containers with different consignments have been confiscated by administrations of different districts to block roads.
“Retailers and traders are annoyed because whatever business is left in the country is now being ruined by the latest round of container seizures,” said Pakistan FMCG Association Vice Chairman.
Central Government Debt (Provisional) (Rs in Bn) | ||||
---|---|---|---|---|
Debt Instruments | As on end period | |||
Jun-18 | Jun-19R | Aug-18 | Aug-19 | |
A. Central Government Domestic Debt (a+b) | 16,416.3 | 20,731.8 | 16,790.0 | 21,495.3 |
a. Long Term (i+ii+iii) | 7,527.3 | 15,231.1 | 7,211.8 | 15,762.3 |
b. Short Term | 8,889.0 | 5,500.6 | 9,578.2 | 5,733.0 |
B. Central Government External Debt7 | 7,795.8 | 11,055.1 | 7,941.9 | 10,745.0 |
Central Government Debt (A+B) | 24,212.1 | 31,786.8 | 24,731.9 | 32,240.2 |
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Pakistan improbable to meet debt reduction targets
The government may not achieve most of its targets set in the medium-term debt reduction strategy due to current high public debt levels amid addition of $14 billion to the external public debt in current fiscal year, said the Ministry of Finance on Friday.
However, it emphasised that the country would make significant progress on achieving the targets set for the 2019-24 period, including putting the country’s debt on a downward path.
Headed by Pakistan Tehreek-e-Insaf (PTI)’s former finance minister Asad Umar, the National Assembly Standing Committee on Finance took a briefing on the government’s debt management strategy.
“We may not be able to meet all the medium-term debt strategy targets due to current high debt levels but we will make significant progress towards achieving these goals,” stressed Abdul Rehman Warraich, Director General of Debt Policy Coordination Office of the Ministry of Finance.
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Dollar 2 bn north-south gas pipeline project in doldrums
Pakistan has conveyed to Russia that it would not award multibillion-dollar projects to US-sanctioned entities as such a move had already resulted in hampering progress on the North-South gas pipeline project.
The $2 billion North-South gas pipeline project hit snags following Russia’s failure in providing a sanctions-free entity to implement the project.
Under the proposed plan, a gas pipeline would be built from Karachi to Lahore and Russia would provide 85 per cent financing for the project.
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FBR attaches alleged benami properties
The Federal Board of Revenue (FBR) on Friday provisionally attached hundreds of millions of rupees’ worth of alleged benami properties on suspicion that the real owners are political persons who have kept the assets in the names of other people.
The Benami Transactions Prohibition Zone-I Islamabad has provisionally attached 3,141 kanals of land located in six jurisdictions of Rawalpindi Division, according to 12 different provisional attachment orders that the FBR issued on Friday.
These properties are in the names of 12 persons, three of them being close relatives. But the FBR suspects that the real owner is one Tausif Ahmad. The Benamidar are Tahir Rauf, M Sadiq, M Anas, Ijaz Ahmad, Abdul Shakoor, Faisal Ahmad, Waqas Nasim Akram, Ahmad Yar, Sana Hussain Gilani, Syed Fayaz Gilani and Sikandar Husain Gilani, according to provisional attachment orders.
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ILO working to enhance labour welfare in Pakistan
The Better Work Programme (BWP) will help improve Pakistan’s compliance and exhibit its commitment to improve labour welfare, said International Labour Organisation (ILO) Country Director Ingrid Christensen.
Addressing a consultative session at the Pakistan Textile Exporters Association (PTEA) on Thursday, she said that the BWP was successfully being run by ILO and IFC in eight countries benefiting a workforce of 2.5 million as 1,700 factories and 150 international brands are linked with this programme.
She informed the audience that the programme included a comprehensive framework on improving industrial relations through training and compliance with international labour standards including occupational safety and health, nature of employment, discrimination and other forms of labour practices as well as strengthening employers’ and workers’ organisation in textile industry.
Emphasising the importance of ratifying and implementing international labour standards for the business community, she elaborated the situation of working conditions in terms of employment, child labour, informality of work and wages.
Also speaking on occasion, Ministry of Overseas Pakistanis and Human Resource Development Joint Secretary Atika Riffat highlighted the recent interventions carried out by the federal and provincial governments to improve working conditions in the country. She elaborated various ILO conventions, which were ratified. Riffat identified a number of avenues where the textile industries in Pakistan in collaboration with ILO, could bring improvements in the work practices thus enabling more exports to Europe.
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President backs action against corrupt taxmen
President Arif Alvi has upheld a decision of the Federal Tax Ombudsman (FTO) who had recommended action against corrupt taxmen who failed to bust a syndicate involved in smuggling and sale of non-duty-paid vehicles in Pakistan.
FTO Mushtaq Ahmad Sukhera had taken a suo motu notice in February last year on reports of influx of smuggled vehicles into Pakistan. The FTO busted a syndicate who would first smuggle a vehicle and then the Customs department would recover it and subsequently sell the same vehicle to smugglers through an auction.
The FTO had recommended the Revenue Division secretary to take action against the corrupt FBR officers who were accused of either negligence or being part of the syndicate. However, instead of taking action, the FBR filed a representation against the FTO’s decision with the president of Pakistan.
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Trade contracts eroding market access
An increase in preferential trade arrangements and free trade areas between some members of the World Trade Organisation (WTO) is eroding market access, said Ambassador-designate to the permanent mission of Pakistan at the WTO Mujtaba Paracha.
Speaking at the Islamabad Chamber of Commerce and Industry (ICCI), he stressed that Pakistan’s private sector should adopt a proactive approach in order to search for new markets and improve exports. He assured businessmen that he would play due role in promoting Pakistan’s exports across the world.
He pointed out that the current government was sending trade and investment officers to Pakistan’s foreign missions abroad with an aim of promoting exports.