Leading IT companies create job opportunities
Leading IT companies of Pakistan are creating job opportunities for the technology professionals and offering capacity building programmes. As the economies around the world shut down amid the novel coronavirus outbreak, it caused an inevitable surge in the use of digital technologies across the world with many individuals and businesses working from home. Akin to this, Pakistan’s information technology industry also witnessed an expansion in the last two years, after the pandemic resulted in an increase in reliance on technology in the lives of consumers and businesses. As a result, the exports of the IT industry grew exponentially, which also created opportunities for thousands of professionals.
SBP’s forex reserves decline $241mn to $8.99bn
The foreign exchange reserves held by the central bank decreased 2.6 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On June 10, the foreign currency reserves held by the SBP were recorded at $8,985.3 million, down $241 million compared with $9,226.2 million on June 3. The central bank did not provide any reason for the decrease in reserves.
Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14,943 million. Net reserves held by banks amounted to $5,957.7 million. In the week ended August 27, 2021 the foreign exchange reserves held by the central bank soared to an all-time high of $20.15 billion after Pakistan received the general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the IMF on August 24.
Turnover tax 1.25 pc on traders
A turnover tax of 1.25 percent on traders, distributors and dealers is unbearable as profit margins are barely 2 percent on market sales and the tax will continue to discourage the SMEs from getting registered under the sales tax regime, said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) acting President Shabbir Mansha.
“Taxes on turnover can encourage SMEs to avoid sales tax registration where the government intends to document the economy,” Arif Habib Commodities CEO Ahsan Mehanti said. Mansha underscored that tax on profits is an equitable source and later on, helps the government to charge poverty tax from the high-earning small and medium enterprises (SMEs).
Rate of return edges decline in PIB auction
The rate of return for commercial banks on Wednesday dipped slightly in the range of one to three basis points on long-term financing for three to 10 years for the government, but the rates remained largely around the recent three-year highs. The government raised Rs155 billion at interest rates in the range of 13.15-13.97 percent, which were close to the three-year highs recorded in August 2019. The government raised the funds from the sale of three to 10-year Pakistan Investment Bonds (PIBs) to commercial banks. Commercial banks kept the rates high ahead of the next monetary policy meeting scheduled for July 7.
ECC raises K-Electric tariff
The government on Wednesday agreed to increase electricity tariff for K-Electric consumers and also approved supplementary grants of Rs139 billion, including Rs113 billion for power plants to keep running them and avoid default on payments for fuel supplies. Headed by Finance Minister Miftah Ismail, the Economic Coordination Committee (ECC) of the cabinet cleared an increase of 57 paisa per unit in the electricity rates for K-Electric consumers. However, it postponed decision on another proposal that called for imposing a surcharge of Rs1.45 per unit on K-Electric consumers to recover Rs113.1 billion in previous dues on account of quarterly tariff adjustments. The tariff hike of 57 paisa per unit will be recovered over a three month period.
MOU signed for small agri-businesses
Understanding (MoU) was signed on Wednesday between the Small and Medium Enterprises Development Authority (Smeda) and the International Trade Centre (ITC) to reduce poverty by strengthening small-scale agri-businesses in Pakistan. The selective activities of the European Unionfunded project
“Growth of Rural Advancement and Sustainable Progress (GRASP)” will be jointly implemented by Smeda and ITC in Balochistan and Sindh provinces. Federal Minister for Industries and Production Syed Murtaza Mehmud, while speaking on the occasion, expressed hope that implementation of the GRASP project would help unlock the potential in the livestock, dairy and horticulture sectors.
Mobile phone operators’ revenue contracts sharply
User (ARPU), a key tool for gauging the financial health of cellular mobile operators (CMOs), has declined sharply, setting off alarm bells for the telecom companies in Pakistan. The ARPU per month has dropped from $9 in 2003 to around $1 at present. At the same time, the cost of doing business has surged in various cases which include increase in spectrum fee from $291 million to $486 million and rise in taxes over the years to 34.5 percent, making Pakistan one of the highly taxed telecom markets. An analysis of the Pakistan Telecommunication Authority’s (PTA) annual report suggests that the ARPU of CMOs has been constantly on the wane in Pakistan and is among the lowest in the world.
Ismail assures realty sector of relief
Federal Minister for Finance and Revenue Miftah Ismail on Tuesday assured the real estate sector stakeholders that their proposal about capital gains tax would be considered by the government.
The minister gave the assurance during a meeting with a delegation of DHA Estate Agents Association, headed by its Chief Patron Mian Irfan, according to a statement issued by the finance ministry. The minister told the delegation that the government would consider a relief in terms of capital gains tax. He directed the Federal Board of Revenue (FBR) to formulate a separate mechanism for facilitating the overseas Pakistanis and reviving business activities in the country.