$30bn treasure trove useless
Pakistan received $35 billion worth of information from the Organisation for Economic Cooperation and Development (OECD) and nearly $30 billion treasure trove turned out to be not actionable amid complaints of misuse of data by the taxmen.
Sources told that in certain cases where the information was not having any tax value due to any reason, some Pakistani accountholders faced unnecessary arm-twisting at the hands of tax officials.
After the start of the exchange of information by the OECD in 2018, Pakistani authorities received $35 billion worth of information, said the sources.
The Federal Board of Revenue (FBR)’s function is limited to just recovery of due taxes on the actionable amount at prevailing rates.
RDA inflows continue to increase, cross $4bn
Foreign currency inflows on account of Roshan Digital Accounts (RDAs) from overseas Pakistanis have continued to rise, as they surpassed the $4 billion mark in April 2022, despite global political and economic instabilities– including Pakistan.
RDA inflows increased $245 million to $4.17 billion in April 2022, Arif Habib Limited (AHL) reported, citing State Bank of Pakistan’s (SBP) data on Monday.
The inflows stand as a huge support towards stabilising the country’s foreign exchange reserves.
“Had the RDA inflows not materialised the foreign exchange reserves would have decreased to a critical level,” Pak-Kuwait Investment Company (PKIC) Head of Research Samiullah Tariq said.
The inflows have helped maintain reserves close to less than two months import cover at $10.55 billion, which otherwise stood at a two-year low level. They were around $17 billion at the start of the current calendar year 2022.
The non-resident Pakistanis (NRPs) have continued to send an average amount despite the deteriorating political and economic situation, particularly in the country, as they anticipate Pakistan to recover from the crisis-like situation soon.
ECC gives nod to procure 4.5mn mt additional wheat
The government decided to procure an additional 4.5 million metric tonnes of wheat, including three million metric tonnes from abroad, and also allowed continuation of subsidies on essential edible items to cushion low-income people against soaring inflation.
The Economic Coordination Committee (ECC) of the Cabinet took the decision for more procurements after the domestic production fell short of target by 9 percent due to bad weather and shortages of inputs. Federal Minister for Finance Miftah Ismail presided over the ECC meeting.
The ECC allowed procurement of 1.5 million metric tonnes of wheat from the farmers and authorised the federal and Punjab governments to take Rs174 billion in loans, according to the Ministry of Finance statement. This will increase the total wheat procurements for this season to 7.9 million metric tonnes or 30 percent of the domestic harvest.
In April cement sales drop 29pc
Total cement dispatches declined by 28.7 percent to 3.52 million tons in April 2022 as compared to 4.94 million tons dispatched during the same month of previous fiscal year.
According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches by the industry during April 2022 were 3.37 million tons as compared to 4.06 million tons in April 2021, showing a decline of 17.06 percent.
Exports also suffered a massive dip of 82.15 percent as volumes reduced to 156,613 tons in April 2022 from 877,163 tons a year ago.
Pakistan yet to take full advantage of GSP plus
Pakistan’s Generalised Scheme of Preferences (GSP+) status is about to end in December 2023, but the country is yet to take full advantage of the scheme.
Contrary to the objective of GSP+ status, ie trade diversification, Pakistan is heavily relying on only textiles to date.
For the continuation of GSP+ status beyond 2023, Pakistan would need to make a fresh application seeking extension of the scheme, underlined the Pakistan Businesses Forum (PBF).
The European Union (EU) has recently announced that the countries must commit to implementing 32 EU conventions against the current 27 conventions, in order to qualify for the GSP+ status (2024-34).
Government to address tractor industry woes
Federal Minister for Industries and Production Syed Murtaza Mahmud Monday promised to discuss the issues being faced by the tractor industry with relevant ministries so as to resolve them at the earliest. He held a meeting with Millat Group Chairman Sikander Mustafa Khan, Chief Executive Officer Irfan Aqueel and senior directors at the offices of Millat Tractors Limited (MLT).The minister was informed about the issues being faced by the tractor industry, especially the latest SRO 563, which was feared to force closure of the industry. Syed Murtaza was apprised that the MTL had a market share of more than 60 percent which represents its customers’ satisfaction and trust in its quality, while the company has also expanded its products range. The minister appreciated the MLT efforts for achieving more than 90 percent deletion level in tractors.
In Q1 Pakistan’s exports to China up nearly 17pc
Pakistan’s exports to China crossed $1.039 billion in the first quarter of 2022, recording a nearly 17 percent increase from January to March this year, as per the General Administration of Customs of China (GACC).
According to data from GACC, in the first three months of this year, China’s exports to Pakistan also increased 28.69 percent amounting to $6.058 billion as compared with the previous year, when exports were valued at $4.70 billion.
Pakistani Embassy in Beijing’s Commercial Counsellor Badaruz Zaman said after the implementation of the second phase of China-Pakistan Free Trade Agreement (FTA) in 2020 – which allowed Pakistani manufacturers and traders to export around 313 new products to the Chinese market with zero duties – and with the deepening of economic and trade cooperation between the two countries, bilateral trade is increasing every year.