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Pakistan agrees on Rs 215 b taxes to complete IMF’s 9th pending review: Dar

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Pakistan agrees on Rs 215 b taxes to complete IMF’s 9th pending review: Dar

ISLAMABAD, Jun 24 (APP):Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Saturday informed the National Assembly that Pakistan had agreed on Rs 215 billion taxes after three-day parleys with the officials of the International Monetary Fund (IMF) to complete the 9th review under the Extended Fund Facility (EFF), pending due to the country’s external financing gap.

“As a result of the talks with IMF, for the fiscal year 2023-24, the final taxes of only Rs 215 have been agreed, ensuring that it will not burden the poor and middle segments of the society,” he said while winding-up general discussion on the budget for the year 2023-24.

Similarly, he said Pakistan would bring down the running expenditure by Rs 85 billion, which would have no impact on the proposed development budget, the raise in salaries and pensions of the federal government employees.
He said Pakistan held talks with the IMF with complete sincerity and assured the House that once the things with the international lender were settled; all details would be made public by placing the agreement on the official website of the Ministry of Finance.

Resultantly, he said the proposed tax collection target of Federal Board of Revenue (FBR) had been increased from Rs 9200 billion to Rs 9415 billion, with the provincial share going up from Rs5276 billion to Rs 5390 billion, the federal government total expenditure estimate from Rs 14460 billion to Rs 14480 billion and pension estimate from Rs 761 billion to Rs 801 billion.

Similarly, he said the subsidy estimate would be at Rs 1064 billion and grants at Rs 1405 billion, adding as a result of all these measures, the overall budget deficit would come down with a cushion of Rs 300 billion [Rs 215 billion taxes and Rs85 billion reduction in running expenditures].

Finance Minister Ishaq Dar expressed gratitude to members of the National Assembly, coalition partners, Foreign Minister Bilawal Bhutto Zardari and Leader of Opposition in the National Assembly leader Raja Riaz Ahmed for giving valuable suggestions to improve the federal budget.

He also acknowledged the role of the NA and Senate Standing Committee for Finance and Revenue, and the Senate for giving input to finalize the budget and subsequently strengthening the national economy.

Highlighting the prevailing economic conditions, he explained that in December last the import restrictions were imposed to ensure timely external payments and address the country’s debt situation.

However, now considering the impact on traders, businesspersons, and industries, the government had decided to lift all import restrictions following a circular issued by the State Bank of Pakistan (SBP), adding the decision was aimed at redressing the issues faced by traders and business communities, contributing to the foreign exchange reserves.

“Yesterday evening, the SBP issued a circular to lift all restrictions on import, which has now come into effect. This decision will resolve the issues faced by traders, businesspersons, and industries, and it will also contribute to an increase in foreign exchange reserves.”

In a recent development, the minister said the government had incorporated changes to the super tax system, increasing the slabs and introducing new tax rates based on recommendations.

Introduced last year, Ishaq Dar said the super tax structure had been made more progressive and for effective enforcement of the 10 per cent tax, the income tax slab had been increased from Rs 300 million to Rs 500 million.

Similarly, he said the tax ratio had been made progressive, like 1-4% and 6, 8 and 10%, which was earlier straight 10%, using the ‘progressive canon of taxation.’

The purpose of the super tax is to target individuals with higher incomes and ensure a fair contribution to the country’s economy. Furthermore, in an effort to document the economy, non-filers will be subjected to a 0.6% withholding tax on cash withdrawals from banks.

“It is an important step towards documentation of the national economy and bringing the maximum number of taxpayers on the net,” he said.

Addressing concerns raised by the lawmakers, the finance minister acknowledged opposition to the tax on bonus shares.

Historically, companies have rewarded their shareholders through cash dividends and bonus shares, while cash dividends were subject to a 15% tax, and there was no tax on bonus shares.

However, as part of the federal budget for the new fiscal year, the government has proposed a 10% tax on bonus shares and 15% on cash dividends. “The tax on bonus shares will not be paid by the companies but the shareholders,” he added.

“These measures aim to promote equity and ensure that individuals and companies contribute their fair share to national development.”

In an effort to address excessive electricity consumption and promote energy conservation, the government imposed an additional duty on fans that consumed excessive electricity.

On recommendations of the stakeholders, he said the government has revised the timeline for tax implementation and provided a relaxation period of six months, allowing manufacturers sufficient time to comply with it. The proposed tax on fans would now be implemented from January 1, 2024, instead of the previously scheduled date of July 1, 2023.

In an effort to resolve tax-related disputes, the finance minister expressed regret over the existence of tax-related cases worth Rs 3.2 trillion at various levels. To tackle this issue, the government has decided to strengthen the Alternate Dispute Resolution Committees (ADRCs).

A committee headed by a retired judge from the High Court or Supreme Court, along with representation from tax authorities and taxpayers would be established to swiftly resolve tax-related cases, given the current backlog of more than 62,000 cases pending in different courts.

Ishaq Dar said the budget focused on public welfare and combating inflation, with a strong emphasis on addressing the needs of the common man and curbing excessive spending.

A significant allocation of Rs 24 billion had been made for essential food items in utility stores for the fiscal year ending on June 30, 2023.

For the fiscal year 2023-24, he said, a Rs 5 billion Ramazan package and a Rs 30 billion Prime Minister’s package, utilizing scorecards, had been introduced to further support public welfare initiatives.

He said the Benazir Income Support Programme was aimed at providing financial assistance to low-income individuals and had received an increased budget allocation of Rs 466 billion for the upcoming fiscal year, considering recommendations of the lawmakers.

“The government takes pride in the performance of the armed forces and prioritizes defense. As recommended by the Senate, funds will be released in a timely manner to fulfill all the requirements of the Pakistani armed forces,” he added.
In light of climate change concerns, he said the federal government had allocated Rs 30 billion and planned to collaborate with provinces to formulate better policies.

Other measures included an increase in the minimum pension fixing it at Rs12,000 and a minimum monthly wage from Rs 25,000 to Rs 32,000 within the Islamabad Capital Territory (ICT).

He said the deposit limit of the Pensioners Benefit Account had been suggested to increase from Rs5 million to Rs 7.5 million.

The minister said the government had passed on the maximum benefit of the reduced petroleum prices in the international market to the consumers and it would continue with the same spirit in the coming days.

To encourage overseas Pakistanis to send maximum foreign remittances to the country, the minister said the government had devised a scheme amounting to Rs 80 billion to reward them and extend maximum facilities.

He said sufficient funds had been allocated for the development of merged districts in Khyber Pakhtunkhwa.

He said funds amounting to Rs30 billion had been earmarked for the conversion of agricultural tube wells to solar energy, following the directives of Prime Minister Shehbaz Sharif.

He said the government intended to implement the Contributory Biometric Fund for federal employees, ensuring that government employees from grades 17 to 22 were eligible for only one pension, besides outlining certain provisions for pension allowances.

He expressed confidence in Pakistan’s economy and its ability to cope with difficult situations, citing past achievements.
“In 2017, Pakistan was the 24th largest economy in the world, and the country will regain that position . . . . The time is not far when Pakistan will become part of the G20,” he concluded.

PBF stresses more trade among SAARC countries

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PBF

LAHORE, Jun 24 (APP): Pakistan Business Forum (PBF) Lahore President Momin Ali Malik has stressed the need for enhancing trade among South Asian Association for Regional Cooperation (SAARC) countries in high-growth sectors including information technology, manufacturing, energy, tourism and agribusiness.

Talking to APP here on Saturday, he regretted that trade among the South Asian nations was declining every year. He said there had been rapid economic growth in the region, but unfortunately, it confronted a range of complex issues and barriers to trade that limited cross-border regional trade.

“Contrary to this, we see increased integration in other regional blocs,” he said, arguing that intra-regional trade was over 40 per cent in NAFTA (North American Free Trade Agreement), 68 per cent in EU (European Union), and 27 per cent in ASEAN (Association of South East Asian Nations). Their economic integration was directly linked to their GDP per capita, higher productivity, lower poverty and unemployment, he added.

Malik stressed the need for studying the successes achieved by other regions and adopting their strategies of regional identity and solidarity to ensure speedy economic growth and people’s prosperity in the SAARC region as well.

He said that according to a notification, issued by the Special Investment Facilitation Council (SIFC), the Pakistan government would help create job opportunities for unemployed youth in the country.

“According to an estimate, SIFC will provide job opportunities to around 20 million people directly and indirect jobs to around 100 million individuals in the next five years,” he added.

Governor takes notice of Tariq Road fire incident

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KARACHI, Jun 24 (APP):Sindh Governor Mohammed Kamran Khan Tessori on Saturday took notice of a fire incident in Tariq Road area of the city.
He directed the Commissioner Karachi to take immediate steps to overcome the fire and present him a detailed report on the incident.

Vendors displaying sacrificial animals to attract customers at I-15 sector Cattle Market in connection with upcoming Eid ul Azha

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Vendors displaying sacrificial animals to attract customers at I-15 sector Cattle Market in connection with upcoming Eid ul Azha
APP03-240623 ISLAMABAD: June 24 – Vendors displaying sacrificial animals to attract customers at I-15 sector Cattle Market in connection with upcoming Eid ul Azha. APP/SMR/FHA
Vendors displaying sacrificial animals to attract customers at I-15 sector Cattle Market in connection with upcoming Eid ul Azha
APP03-240623 ISLAMABAD:
Vendors displaying sacrificial animals to attract customers at I-15 sector Cattle Market in connection with upcoming Eid ul Azha
APP04-240623 ISLAMABAD: June 24 – Sacrificial animal being unloaded from truck at I-15 sector Cattle Market in connection with upcoming Eid ul Azha. APP/SMR/FHA
Vendors displaying sacrificial animals to attract customers at I-15 sector Cattle Market in connection with upcoming Eid ul Azha
APP05-240623 ISLAMABAD: June 24 – Sacrificial animal being unloaded from truck at I-15 sector Cattle Market in connection with upcoming Eid ul Azha. APP/SMR/FHA
Vendors displaying sacrificial animals to attract customers at I-15 sector Cattle Market in connection with upcoming Eid ul Azha
APP06-240623 ISLAMABAD: June 24 – Traders unloading the sacrificial animals from a truck at livestock market for the in connection with upcoming Eid ul-Adha at I-15 sector Cattle Market. APP/SMR/FHA

Federal Minister for Poverty Alleviation, Social Safety and Chairperson Benazir Income Support Programme Ms. Shazia Marri addressing a press conference at PID media center

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Federal Minister for Poverty Alleviation, Social Safety and Chairperson Benazir Income Support Programme Ms. Shazia Marri addressing a press conference at PID media center
APP01-240623 ISLAMABAD: June 24 - Federal Minister for Poverty Alleviation, Social Safety and Chairperson Benazir Income Support Programme Ms. Shazia Marri addressing a press conference at PID media center. APP/SMR/FHA
Federal Minister for Poverty Alleviation, Social Safety and Chairperson Benazir Income Support Programme Ms. Shazia Marri addressing a press conference at PID media center
APP01-240623 ISLAMABAD:
Federal Minister for Poverty Alleviation, Social Safety and Chairperson Benazir Income Support Programme Ms. Shazia Marri addressing a press conference at PID media center
APP02-240623 ISLAMABAD: June 24 – Federal Minister for Poverty Alleviation, Social Safety and Chairperson Benazir Income Support Programme Ms. Shazia Marri addressing a press conference at PID media center. APP/SMR/FHA

Over Rs 41.37 trillion charged expenditure presented in NA

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Over Rs 41.37 trillion charged expenditure presented in NA

ISLAMABAD, Jun 24 (APP):The government on Saturday presented in the National Assembly over Rs.41.37 trillion charged expenditure included in demands for grants and appropriations for the financial year ending June 30, 2024.

Charged expense included Rs. 28,898,039,594,000 for repayment of domestic debt, Rs.6,430,305,002,000 for Servicing of Domestic Debt, Rs.4,398,067,501,000 for Foreign Loans Repayment, Rs.872,218,501,000 for Servicing of Foreign Debt, Rs.46,690,000,000 for Repayment of Short Term Foreign Credits, Rs.658,644,140,000 for External Development Loans and Advances by the Federal Government.

Similarly, these expense included Rs.4,017,000,000 for Superannuation Allowance and Pensions, Rs. 26,4000,000,000 for Grants, Subsidies and Miscellaneous Expenditure , Rs.10,000,000 for Pakistan Post Office Department, Rs.50,000,000 for Foreign Mission, Rs 369,105,000 for Law and Justice Division, Rs.4,000,787,000 for National Assembly, Rs.3,281,840,000 for Senate, Rs,596,646,000 for Staff, Household and Allowance of the President (public), Rs 812,380,000 for Staff, Household and Allowance of the President (Personal), Rs.7,561,128,000 for Audit, Rs.3,555,000,000 for Supreme Court, Rs.1,543,322000 for Islamabad High Court, Rs.7,786,255,000 for Election, Rs.1,250,195,000 for Wafaqi Mohtasib, Rs115,000,000 for Federal Ombudsman Secretariat for Protection against Harassment of Women at Work Place and Rs.390,621,000 for Federal Tax Ombudsman.

Indian forces firing along LoC leaves two martyred, one critically injured

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Indian forces firing along LoC leaves two martyred, one critically injured
RAWALPINDI, Jun 24 (APP):In a sequel to Indian Army unprovoked firing on Saturday while adopting an inhumane approach towards innocent  Kashmiris at Sattwal Sector, one more civilian has embraced shahadat while one remained critically injured taking the total death toll to two.
The Shaheeds (martyrs) included Obaid Qayyum son of Muhammad Qayyum, age 22 years and Muhammad Qasim son of Muhammad Din, age 55 years.
Both Shaheeds were residents of Village Bara Dari Tetrinote, Tehsil Hajira District Poonch.

Indian forces open indiscriminate fire on innocent shepherds in Sattwal Sector along LoC

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Indian forces open indiscriminate fire on innocent shepherds in Sattwal Sector along LoC

RAWALPINDI, Jun 24 (APP):The Indian forces on Saturday morning opened indiscriminate fire on innocent shepherds in Sattwal Sector along the line of control as a result of which, one civilian embraced shahadat and two others got critically injured.

According to the Inter-Services Public Relations (ISPR) news release, “Today, at 1155 hours, Indian Army, in a display of its usual inhumane approach towards innocent Kashmiris, opened indiscriminate fire onto a group of shepherds in Sattwal Sector.”

The military’s media wing said that driven by a newly found geo-political patronage, Indian forces have embarked on a plan to take innocent lives to satiate their false narratives and concocted allegations.

While a strong protest was being launched with India and Pakistan reserved the right to respond back in a manner of its choosing to protect Kashmiris’ lives in the LoC belt.

“Indian side is reminded to respect basic human rights of Kashmiris, particularly, their inalienable right to till their lands,” the ISPR said.

ICCI welcomes Asif Ali Zardari’s proposal for Charter of Economy

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Asif Ali Zardari

ISLAMABAD, Jun 24 (APP):President Islamabad Chamber of Commerce and Industry (ICCI) Ahsan Zafar Bakhtawari Saturday welcomed the statement of former president and co-chairman Pakistan Peoples Party Asif Ali Zardari regarding the Charter of Economy among all political parties to overcome the economic challenges, which was faced by the country.

The business community of the federal capital strongly supports this proposal, he said in a statement received here.

He further said that the his (former president’s) address to the business community in Lahore was a reflection of the true understanding of the economic problems faced by the country.

He said that his suggestion to give the most important ministries related to the economy to people associated with the business community was also a step towards solving economic problems.

He said that his suggestion of cotton cultivation in Jhal Magsi area of Balochistan can be a milestone for achieving quality production as well as development of the province.

He said that lack of long-term planning and in continuity in policies were the main reason of the economic problems that were faced by the country today.

The former president offered the business community that he was ready to strike a deal with all political parties on the issue of economy, which was highly commendable Initiative, he remarked.

He said that the Pakistan People’s Party was the largest political party in Pakistan and the second largest party in the current coalition government and urged all other parties to positively respond the offer for turning around the national economy.

Ahsan Zafar said that a grand national dialogue on the issue of economy was the needs time and the
Islamabad Chamber being the representative chamber of the federal capital and the country, was ready to play its full role to organize such debates and dialogue.

He said that the former president’s vision regarding regional connectivity was commendable. Pak-Iran gas pipeline can be the best alternative to solve energy problems, he added.

APP employees host reception in honour of MD Muhammad Asim Khichi

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ISLAMABAD, Jun 24 (APP): Managing Director Associated Press of Pakistan (APP) Muhammad Asim Khichi on has urged APP staffers particularly those in editorial cadre to work with more dedication and professionalism to help further excel the premier news in the current era of social and digital media.

Speaking at a dinner reception hosted in his honour by the APP Employees Union here on Friday, Asim Khichi assured all out support of the management to realize this objective.

APP employees host reception in honour of MD Muhammad Asim Khichi

The Managing Director said that his focus was on further strengthening the APP Social and Digital Media and making it a success story so that the premier news agency was able to generate its own financial resources for the benefit of its employees.

He expressed his gratitude to the APP employees as well as union for hosting a wonderful reception in his honour and giving him a lot of respect.

Union leaders in their remarks on the occasion thanked MD Muhammad Asim Khichi for resolving the longstanding issues of APP including the regularisation of 135 employees.

APP employees host reception in honour of MD Muhammad Asim Khichi

On this occasion a souvenir was presented to the Managing Director and Seraiki Ajrak to the guests from APP employees.

A Mehfil-e-Qawali, led by Ustad Shabih Sain (from Sainya Gharana) held on this occasion mesmerised the audience, especially due to Seraiki Jhoomar and Lok music.

APP employees host reception in honour of MD Muhammad Asim Khichi

Besides APP employees and senior officers, the reception was also attended by some senior journalists and representatives of media community from the twin cities of Rawalpindi and Islamabad.

APP employees host reception in honour of MD Muhammad Asim Khichi