Ideas to propel Pakistan out of the economic crisis

[Red-Indian]

The Haqqani group has nothing to do with this thread. The main idea of this thread was to provide a solution to get Pakistan out of the economic crisis. Discussing terrorists or no-terrorist is not the topic here. Please stay on topic.

For topic thing, IMF has never helped any country to get out of economic troubles. Never seen 1 single nation that progressed because they took stupid loans from IMF. IMF is like a quick-sand and Pakistan is stuck in it now.

Look no further than India for an IMF success story. Jordan is another excellent example. Ghana's done pretty well.

The worst two cases are Argentina and Pakistan. But that's primarily because they sign the deals and arrangements but don't follow them.

 

[BouncerGuy]

The IMF is the International Mafia Federation. They're the loansharks of last resort. It will never work for Pakistan.

 

[shaz619]

Who wants to invest in a place full of crooks who are put on a pedestal by ignorant burgers who do a bhangra after they are awarded a few rotis for their loyalty.

The country is doomed more than ever before.

 

[FearlessRoar]

Bank deposits continued to grow and jumped to an all-time high of Rs27.8 trillion by the end of February 2024, the annual report of the Deposit Protection Corporation (DPC) showed on Saturday.

Correspondingly, the volume of eligible deposits for protection under the DPC scheme recorded a net increase of Rs4665 billion in last year (February 23 to February 24).

In February 2024, bank deposits clocked in at Rs27.8 trillion as compared to Rs22.9 trillion in February 23.

According to economic experts, the investors are increasing their deposits in the banks due to high interest rate.

The investors are getting high gains for their deposits and the practice is likely to continue amid current economic situation, the experts said.

Earlier, the State Bank of Pakistan (SBP) refuted “baseless” news reports suggesting that the central bank was mulling issuing polymer (plastic) banknotes series.

“SBP strongly refutes the reports [regarding issuance of polymer (plastic) banknotes] as baseless and without substance,” the central bank said in a statement, adding that there is no such plan or suggestion currently under consideration regarding the change in the substrate of banknotes from paper to polymer.

The statement comes days after a bank in Karachi received “misprinted” banknotes with two Rs1,000 notes having “blank” back sides.

Bank deposits hit all-time high of Rs27.8tr in Pakistan

KARACHI: Bank deposits continued to grow and jumped to an all-time high of Rs27.8 trillion by the end of February 2024, the annual report of the Deposit

arynews.tv

 

[FearlessRoar]

Well it reflects growing confidence in Pakistan's banking sector. High interest rates are probably attracting investors.

 

[Stewie]

Sure, after 9/11 us was directly funding a terrorist network which lists US as its enemy

Guessing you might gotten confused with ambassador haqqani

You are probably born yesterday, and don’t know anything about the history of the region.

The haqqani network was funded and trained by the US during the Soviet war in Afghanistan. So was Bin Laden. Bin Laden was a very valued asset of the Americans because he fought against the soviets.

Suggest you educate yourself and by educating don’t mean watching BJP propaganda videos.

 

[Cover Drive Six]

In my opinion, EU can help Pakistan overcome its economic crisis in several ways. Firstly, it can provide financial support through grants, loans, or debt relief to ease immediate financial pressures. Additionally, the EU can assist by opening up trade opportunities for Pakistani goods, which can boost exports and bring in much-needed foreign currency. Moreover, the EU can offer technical assistance and training programs to improve governance, reform institutions, and develop key sectors like taxation and infrastructure. By collaborating on initiatives such as renewable energy and sustainable development, both parties can work towards long-term economic stability and growth. Overall, tapping into the EU's resources and expertise can significantly aid Pakistan in addressing its economic challenges and moving towards a brighter future.

India has signed a $100bn free trade agreement with a four-member European bloc. (Iceland, Liechtenstein, Norway and Switzerland)
Just few days ago.

 

[rpant_gabba]

You are probably born yesterday, and don’t know anything about the history of the region.

The haqqani network was funded and trained by the US during the Soviet war in Afghanistan. So was Bin Laden. Bin Laden was a very valued asset of the Americans because he fought against the soviets.

Suggest you educate yourself and by educating don’t mean watching BJP propaganda videos.

Damn. that is news to me. such great insight /S

If you want to equate US support afghan mujahideen via Zia & ISI to how they viewed them post 9/11, you are a bit thick.

The post 9/11 activities of Taliban(+other groups) against Americans in Afghanistan was secretly funded and facilitated by pakistan.

why do you think PAkistan is in the dog house with US these days? no CSF, no support with IMF, no deferment of payments.

Anyway, $30B in loan payments every year to IMF and other banks.

CPEC guaranteed returns to China (unknown amount)

Pakistan is gonna have to pick its poison

 

[rpant_gabba]

The IMF is the International Mafia Federation. They're the loansharks of last resort. It will never work for Pakistan.

you are not wrong about the last resort.

A country has to screw up a lot, in lot of areas, for a long time to end IMF's door.

What you are looking for is a free ride and someone else to take responsibility.

unlikely to happen

 

[Stewie]

Damn. that is news to me. such great insight /S

If you want to equate US support afghan mujahideen via Zia & ISI to how they viewed them post 9/11, you are a bit thick.

The post 9/11 activities of Taliban(+other groups) against Americans in Afghanistan was secretly funded and facilitated by pakistan.

why do you think PAkistan is in the dog house with US these days? no CSF, no support with IMF, no deferment of payments.

Anyway, $30B in loan payments every year to IMF and other banks.

CPEC guaranteed returns to China (unknown amount)

Pakistan is gonna have to pick its poison

I don’t care what anyone views, facts are facts. Don’t change the goal posts. You claimed HAqqani group was funded by Pakistan. I educated you on the facts. Pakistan never has funded them. They are not Pakistanis.

 

[rpant_gabba]

I don’t care what anyone views, facts are facts. Don’t change the goal posts. You claimed HAqqani group was funded by Pakistan. I educated you on the facts. Pakistan never has funded them. They are not Pakistanis.

bottomline, unless Pakistan magically finds a BOP solution, hard to see how the downward spiral is going to stop?

 

[Stewie]

The day anybody is going to lose sleep over India labeling someone a terrorist. Its PM was banned from countries for state backed genocide.

Not all Pakistanis here are Britstanis by the way not that it matters. Perhaps pay more attention to the news about India becoming a Hindu nationalist state undermining Muslim rights rather than worrying about Pakistan. That land doesn’t belong to you guys anymore. Better accept that.

 

[rpant_gabba]

The day anybody is going to lose sleep over India labeling someone a terrorist. Its PM was banned from countries for state backed genocide.

Not all Pakistanis here are Britstanis by the way not that it matters. Perhaps pay more attention to the news about India becoming a Hindu nationalist state undermining Muslim rights rather than worrying about Pakistan. That land doesn’t belong to you guys anymore. Better accept that.

Guess being on FATF grey list is a badge on honor.

Give it up already. Same pm is addressing the same countries in their parliament and getting honored in in the gulf states while Pakistan is out there with a begging bowl.

 

[rpant_gabba]

so lets get back to topic.

I'm not convinced BOP situation is going to ease up anytime soon.

Two countries can help Pakistan

US: Has very good reasons not to and has plenty of more important things to take car off.

China: Iron brother has let Pak drift in spite of having huge resources. not sure that is gong to change with Chinese economy slowing with real estate and debt crisis.

Other than a collective national effort to reign in Imports, Pak doesn't have too many options

 

[rpant_gabba]

historical current account deficit

World Bank Open Data

Free and open access to global development data

data.worldbank.org

Pakistan would have pull out something extraordinary out of the hat to escape this

Explains why they went to IMF 22 times

 

[FearlessRoar]

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has kept the key policy rate unchanged at 22%, its sixth successive decision to maintain the status quo

“At its meeting today, the MPC decided to keep the policy rate unchanged at 22%,” it said in a statement on Monday.

“In approaching the decision, the MPC noted that inflation, in line with earlier expectations, has begun to decline noticeably from H2-FY24.

“It, however, observed that despite the sharp deceleration in February, the level of inflation remains high and its outlook is susceptible to risks amidst elevated inflation expectations. This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5–7% by September 2025.”

The statement said the MPC has reiterated that this assessment is also contingent upon continued targeted fiscal consolidation and timely realisation of planned external inflows.

The central bank added that latest data continues to depict moderate pick-up in economic activity, led by rebound in agriculture output. “Second, the external current account balance is turning out better than anticipated and has helped maintain FX buffers despite weak financial inflows. Third, while inflation expectations of businesses have shown a steady increase since December, those for consumers have also inched up in March. Lastly, on the global front, while the broader trend in commodity prices remained benign, oil prices have increased; partly reflecting the continued tense situation in the Red Sea.

“Moreover, amidst uncertainty regarding the inflation outlook, key central banks in both advanced and emerging economies have continued to maintain a cautious monetary policy stance in recent meetings.”

The MPC noted that any further adjustments in administered prices or fiscal measures that may push prices up pose risk to the near- and medium-term inflation outlook.

“Cognizant of these risks, the Committee assessed that it is prudent to continue with the current monetary policy stance at this stage.”

Background

Market experts Business Recorder reached out to earlier were divided with some anticipating the MPC to maintain status quo as Pakistan is engaged in talks with the International Monetary Fund (IMF) that has historically advised caution in monetary easing.

Some had said that developments including a fall in CPI inflation, manageable current account deficit, stable local and international oil prices as well as the currency could be factors advocating a rate cut.

Mohammed Sohail, CEO of brokerage house Topline Securities, had said: “We believe that the SBP will remain cautious despite the above-mentioned encouraging trends and adopt a ‘watch and see’ approach until the inflation trend maintains its fall.”

In its article on Friday, BR Research had also said that the SBP “should move with extra caution and keep real rates positive on current inflation”, arguing that to keep a delicate balance, slow and gradual easing is the order of the day.

“Expect around 200 bps cut in April, and SBP must maintain the policy rate on Monday,” it added.

On the other hand, Arif Habib Limited (AHL), another brokerage house, had seen a “strong possibility” that the SBP may cut the key policy rate by 100 basis points (bps).

AHL, in its report released earlier, had said there was a “strong possibility that the SBP may contemplate kickstarting the interest rate reversal cycle by implementing a 100bps cut in the upcoming policy”.

The brokerage house attributed its projection to a declining inflation rate and money market yields.

“We believe a data-driven approach will be pivotal in forming the SBP’s decision-making process,” it had said.

“This approach would likely take into consideration the downward trajectory of both headline and core inflation, which we anticipate to average approximately 17% and 15%, respectively, (on a 12-month forward basis), resulting in significantly positive real interest rates on a forward-looking basis.”

In its previous meeting on January 29, the MPC of the SBP had kept the key policy rate unchanged at 22%, which was in line with market expectations.

The MPC noted that “the external account (position) has become better.”

The MPC also revised its inflation projection for fiscal year 2023-24 from 20-22% to 23-25%, considering the latest round of energy tariff hikes.

Since the last MPC in January, several key developments on the economic front have taken place.

The rupee appreciated a marginal 0.3%, while petrol prices increased around 6%.

Internationally, oil prices remain volatile amid an escalation of tensions in the Middle East.

The Consumer Price Index (CPI)–based inflation clocked in at 23.1% on a year-on-year basis in February, according to the Pakistan Bureau of Statistics (PBS), much lower than the reading in January when it stood at 28.3%.

In addition, Pakistan posted a current account deficit of $269 million in January 2024, against a surplus of $404 million in December 2023.

Foreign exchange reserves held by the SBP increased by $17 million on a weekly basis, clocking in at $7.91 billion as of March 8, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $13.15 billion. Net foreign reserves held by commercial banks stood at $5.24 billion.

It may be mentioned here that during the last few months, the interest rate on short-term government papers declined notably due to lower inflation.

Pakistan is also likely to sign the staff-level agreement with the IMF, sources said on Saturday.

SBP keeps key policy rate unchanged at 22%

This is the sixth successive decision to hold rates by Pakistan's central bank

www.brecorder.com

 

[FearlessRoar]

So maintaining the key policy rate at 22% in Pakistan is a crucial step towards stabilizing our economy. While it might seem high and burdensome for borrowers initially, it's essential for curbing inflation, attracting foreign investment, and ensuring fiscal discipline. High-interest rates signal to investors that Pakistan is committed to macroeconomic stability, which ultimately fosters long-term growth and prosperity. Yes, it might present short-term challenges, but it's a necessary sacrifice for securing a stronger economic future for our country.

 

[IMMY69]

So maintaining the key policy rate at 22% in Pakistan is a crucial step towards stabilizing our economy. While it might seem high and burdensome for borrowers initially, it's essential for curbing inflation, attracting foreign investment, and ensuring fiscal discipline. High-interest rates signal to investors that Pakistan is committed to macroeconomic stability, which ultimately fosters long-term growth and prosperity. Yes, it might present short-term challenges, but it's a necessary sacrifice for securing a stronger economic future for our country.

So much sense. Thank you
Let's just forget the fact that the elections were rigged and Pakistan have crooks in power.

 

[shah_1]

There is no way out

The country will remain the same. After 5 years we have the same discussion on how to get Pakistan out of this mess. Establishment has the destroyed the country since the first martial law in Pakistan and they are not stopping.

 

[Cricket Warrior]

When investors will start realizing that their investment is safe because with the likes of Zardaris and Sharifs nobody can have that feeling.

 

[FearlessRoar]

The government is planning to get a big loan from the IMF, around $6-8 billion. They want to fix tax issues and boost local industries, like farming and real estate. But this loan could bring problems. IMF loans come with tough rules, which might make life harder for common people of Pakistan.Let's keep an eye on how this affects Pakistan

 

[YousafTheBeast]

Pakistan is at a point of no return, there’s no point discussing about the economy of Pakistan, nothing’s going to change, at least not in our lifetime.

 

[BouncerGuy]

Running a country on loan is never the way to progress. You still end up with nothing in the end and all that is left for the upcoming government is to blame the earlier ones and take more loans to fix which cannot be fixed in that manner. Boost local industry and make thing easier for small industries. One way to have some industry setup in your country.

 

[FearlessRoar]

SBP reserves saw a weekly increase of US$17 million, reaching US$7.91 billion as of March 8, with total liquid foreign reserves at US$13.15 billion. The reason for the increase was not specified by the central bank and it is concerning why they are not informing us about what is going on.

 

[FearlessRoar]

Pakistan to sell $300 mln Panda bonds in Chinese market, says finance minister

Pakistan has decided to sell $300 Panda bonds in Chinese markets, announced Finance Minister Muhammad Aurangzeb in an interview with Bloomberg on Friday.

China has the “second-largest and deepest bond market in the world” and it is the “right thing to do for the country” to tap the market, given Pakistan has already sold dollars and eurobonds, he said.

Aurangzeb said the initial Panda bond sale would be about $250 million to $300 million, which would be followed by further issuances.

A former banker from JPMorgan Chase & Co., Aurangzeb, 59, was picked as finance minister by Prime Minister Shehbaz Sharif in March after a contentious election.

He takes office at a time when economic pessimism in the country is at a record high and the government is trying to avoid defaulting on its debt. Pakistan has the highest inflation rate in Asia of more than 20% and faces $24 billion of external debt payments in the fiscal year starting July, three times its foreign-exchange reserves.

The finance minister said the government’s cash balances are strong enough that it’s able to pay its debts on time. The payments are unlikely to put pressure on the currency, and he expects the rupee to remain stable, he said.

Pakistan to sell $300 mln Panda bonds in Chinese market, says finance minister

Pakistan has decided to sell $300 Panda bonds in Chinese markets, announced Finance Minister Muhammad Aurangzeb in an interview with Bloomberg on Friday.

arynews.tv

 

[FearlessRoar]

I guess this move may help manage debt repayments, reducing the risk of default.

 

[FearlessRoar]

The World Bank has approved $149.7 million in financing for Pakistan to support two projects, the Digital Economy Enhancement Project ($78 million) and Sindh Barrages Improvement Project ($71.7 million).

According to a statement, the Digital Economy Enhancement Project ($78 million) will support the expansion of digitally enabled public services delivery for citizens and firms, while the second additional financing for the Sindh Barrages Improvement Project ($71.7 million) will support better resilience to floods and improvements in the reliability, safety, and management of the Sindh barrages.

“The catastrophic floods that hit Pakistan in 2022 were a tragic reminder of the importance to build resilience to such disasters, including by strengthening barrages and their management,” said Najy Benhassine, World Bank Country Director for Pakistan.

“Also, supporting the growing digital economy in Pakistan is key for economic and social development, broadening connectivity and access to government and financial services for citizens and entrepreneurs, particularly women.”

The Digital Economy Enhancement Project (DEEP) will develop digital authentication and data-sharing platforms to enable Pakistan to respond more effectively and efficiently to shocks, deliver better e-government services to citizens and firms, and support regulatory reforms in the sector, including to enable greater private participation, and strengthening personal data protection and online safety.

The project will also promote financial inclusion by enabling women in particular, to open bank accounts or apply remotely for credit through a smartphone application. It will also contribute to addressing barriers such as limited mobility and digital literacy.

“The digital economy and demand for digital government services have been growing across the country, increasing the need for connectivity, digital payments, and secure and trusted digital transactions. The project takes a whole-of-government approach to digital transformation and will help ensure that digital platforms are inclusive and trusted,” said Shan Rehman, Task Team Leader for the project.

The second additional financing for the Sindh Barrages Improvement Project (SBIP) will support the full completion and commissioning of the Guddu and Sukkur barrages rehabilitation works and improve the management of three barrages in Sindh including Guddu, Sukkur and Kotri.

The additional financing will also contribute to strengthening the provincial Barrage Management Unit’s technical capacities, promoting women’s participation in emergency preparedness, and implementing extensive citizen engagement and stakeholder participation.

“Barrages such as the ones supported by SBIP are critical for the livelihoods and climate-resilience of the Sindh Province,” said Francois Onimus, Task Team Leader for the project.

“The project will increase the resilience of the canal systems that are fed from these barrages, reducing the adverse impacts of extreme floods and drought events.”

Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided $40 billion in assistance. The World Bank’s program in Pakistan is governed by a Country Partnership Strategy with four priority areas of engagement: energy, private sector development, inclusion, and service delivery. The current portfolio has 54 projects and a total commitment of $14.6 billion.

World Bank okays $149.7m in financing for two projects in Pakistan

ISLAMABAD: The World Bank has approved $149.7 million in financing for Pakistan to support two projects, the Digital Economy Enhancement Project ($78

arynews.tv

 

[FearlessRoar]

It's great news for Pakistan, but it's disheartening to see that the government isn't taking the digital economy seriously, especially when X has been banned for over a month now.

 

[Nikhil_cric]

Not sure about what policies can be implemented to improve Pakistan's economy to create high value exports or if it will even happen.

But if Pakistanis feel that is unlikely, they should voluntarily stop having more than 1 child.

Considering your high fertility rates and population projections your state of economy , this will be an even bigger disaster.

 

[rpant_gabba]

This should help

In a significant move, Prime Minister Shehbaz Sharif has reshuffled key positions within the cabinet, depriving Finance Minister Muhammad Aurangzeb of chairmanships in two pivotal committees while carving out a major role for Foreign Minister Ishaq Dar in financial matters.

PM clips finance minister’s decision-making wings​

In a significant move, Prime Minister Shehbaz Sharif has reshuffled key positions within the cabinet, depriving Finance Minister Muhammad Aurangzeb of chairmanships in two pivotal committees while carving out a major role for Foreign Minister Ishaq Dar in financial matters.

The premier has reconstituted four cabinet committees. Out of these, Finance Minister Aurangzeb has been appointed as the chairman of only one committee – a departure from past practices where finance ministers typically chaired three out of the four committees.

The cabinet division has notified the reconstitution of the new committees.

Pakistan also officially acknowledged that the CPEC was moving slowly and has made the re-engagement of the Chinese companies as part of the terms of references of the newly reconstituted committee on Chinese investment.

PM Shehbaz has retained the chairmanship of the most important Economic Coordination Committee (ECC) of the cabinet instead of making Muhammad Aurangzeb head of it. However, in the absence of the prime minister, the finance minister would chair the ECC meeting.

The arrangement suggests that there was resistance to giving the ECC’s chairmanship to the finance minister, a PML-N insider told The Express Tribune.

In another significant development, the prime minister has appointed Foreign Minister Ishaq Dar as the chairman of the Cabinet Committee on Privatisation (CCOP) – a position previously held by the finance minister before the Pakistan Democratic Movement government.

During the caretaker setup, former finance minister Dr Shamshad Akhtar initially assumed the role of CCOP chairperson, which was later transferred to Privatisation Minister Fawad Hasan Fawad.

Sources informed The Express Tribune that within the PML-N, there were differing opinions regarding the appointment of a new finance minister in place of Dar during the government formation period. Ultimately, it was decided that Dar would retain involvement in economic affairs, albeit in a different capacity.

Finance Minister Muhammad Aurangzeb would chair only the cabinet committee on State-owned Enterprises (CCoSOEs). The prime minister also made Ahsan Iqbal, the planning minister, as the chairman of the Cabinet Committee on the Chinese Investment Projects.

Shehbaz Sharif’s decision to deprive the finance minister of the chairmanship of the ECC may limit his control over economic matters due to the wide range of decisions that the ECC takes and their implications on the budget.

When contacted, Finance Minister Aurangzeb said that “PM is taking full ownership of driving the economic agenda, which is the right thing to do”.

Earlier, the cabinet division had issued a notification, mentioning Revenue as an “additional portfolio” of Muhammad Aurangzeb. But Aurangzeb said last week that he would be permanently looking after the Revenue portfolio and it was just that the notification was not properly issued.

The members of the reconstituted ECC include the finance minister, the economic affairs minister, the commerce minister, the minister for petroleum and the minister for planning. There are 18 co-opted ECC members including the deputy chairman of the planning commission, the governor State Bank of Pakistan (SBP), the chairman securities and exchange commission and the chairman board of investment.

The PM has not made the industries minister and maritime affairs minister members of the ECC.

The ECC has been empowered to consider all urgent economic matters and to coordinate economic policies. It would also maintain vigilance on the monetary and credit indicators. It has also authorised the future pattern of growth of agriculture and industries but the industries minister is not a member of the ECC.

The ECC has been mandated to review import policy, and export performance watch the current price situation and ensure price stability. The ECC can make decisions about oil and gas exploration and will oversee the performance of the autonomous bodies.

The Prime Minister had earlier handed over the responsibility of the outsourcing of the three international airports to Ishaq Dar, although this transaction was not carried out under the Privatisation law.

But according to a new notification, now Minister for Defense and Aviation Khawaja Asif will be the chairman of the cabinet committee on the outsourcing of airports and privatisation of Pakistan International Airlines. Ishaq Dar is made the member of this committee, which will now get the secretariat support from the Aviation Division.

CCOP

Ishaq Dar, as chairman of CCOP, will also have vast powers on the privatisation matters and some of the functions of the CCOP also overlap with the functions of the CCoSOEs, which is headed by the finance minister.

The CCOP will formulate the privatisation policy and it will approve the SOEs for the privatisation. The CCOP will take policy decisions on inter-ministerial issues relating to the privatisation process and it will also monitor their progress.

The CCOP will take policy decisions on matters pertaining to privatisation, restructuring, deregulation, regulatory bodies and the privatisation fund account. It will be empowered to approve the reference price for the sale of the SOEs.

The Minister for Finance, Minister for Commerce, Minister for Power, Minister for Industries and Minister for Privatisation will be the members of the CCOP.

CCoSOEs

Muhammad Aurangzeb will chair the cabinet committee on SOEs, which will enforce and monitor the implementation of the SOEs Act and other related laws and policies, according to the cabinet division notification.

The committee will also have the mandate to make appointments on the board of the SOEs and formulate the reform and restructuring proposals. It will also take a periodical review of the financial and operational performance of the SOEs.

The minister for maritime affairs, minister for economic affairs, minister for science and technology and minister for housing & works will be the members of the cabinet committee on SOEs.

CCoCIP

The prime minister has appointed Planning Minister Ahsan Iqbal as the chairman of the cabinet committee on Chinese Investment Projects. His immediate challenge in hand will be to resolve the issue of delayed payments of over Rs515 billion to the Chinese power plants.

Foreign Minister Ishaq Dar will also be a member of the CCoCIP. Among other members are Minister for Interior, Minister for Finance, Minister for Commerce, Minister for Petroleum, Minister for Power, Minister for Railways and Minister for Science and Technology.

According to the cabinet division’s notification, the committee will oversee the progress of the investment projects executed by the Chinese investors and it will expeditiously resolve issues faced by the Chinese investors with different government entities. The committee will also facilitate Chinese investment in productive sectors of the economy as the next phase of CPEC.

While acknowledging that the CPEC was moving at a snail’s pace, the PM has mandated the committee to “reactive slow-moving projects of CPEC through re-engagements with nominated Chinese entities”. It will also review measures taken for the security of the Chinese working and living in Pakistan.

PM clips finance minister’s decision-making wings | The Express Tribune

Aurangzeb deprived of chairmanships of ECC, CCOP

tribune.com.pk

 

[gazza619]

This should help

In a significant move, Prime Minister Shehbaz Sharif has reshuffled key positions within the cabinet, depriving Finance Minister Muhammad Aurangzeb of chairmanships in two pivotal committees while carving out a major role for Foreign Minister Ishaq Dar in financial matters.

PM clips finance minister’s decision-making wings​

In a significant move, Prime Minister Shehbaz Sharif has reshuffled key positions within the cabinet, depriving Finance Minister Muhammad Aurangzeb of chairmanships in two pivotal committees while carving out a major role for Foreign Minister Ishaq Dar in financial matters.

The premier has reconstituted four cabinet committees. Out of these, Finance Minister Aurangzeb has been appointed as the chairman of only one committee – a departure from past practices where finance ministers typically chaired three out of the four committees.

The cabinet division has notified the reconstitution of the new committees.

Pakistan also officially acknowledged that the CPEC was moving slowly and has made the re-engagement of the Chinese companies as part of the terms of references of the newly reconstituted committee on Chinese investment.

PM Shehbaz has retained the chairmanship of the most important Economic Coordination Committee (ECC) of the cabinet instead of making Muhammad Aurangzeb head of it. However, in the absence of the prime minister, the finance minister would chair the ECC meeting.

The arrangement suggests that there was resistance to giving the ECC’s chairmanship to the finance minister, a PML-N insider told The Express Tribune.

In another significant development, the prime minister has appointed Foreign Minister Ishaq Dar as the chairman of the Cabinet Committee on Privatisation (CCOP) – a position previously held by the finance minister before the Pakistan Democratic Movement government.

During the caretaker setup, former finance minister Dr Shamshad Akhtar initially assumed the role of CCOP chairperson, which was later transferred to Privatisation Minister Fawad Hasan Fawad.

Sources informed The Express Tribune that within the PML-N, there were differing opinions regarding the appointment of a new finance minister in place of Dar during the government formation period. Ultimately, it was decided that Dar would retain involvement in economic affairs, albeit in a different capacity.

Finance Minister Muhammad Aurangzeb would chair only the cabinet committee on State-owned Enterprises (CCoSOEs). The prime minister also made Ahsan Iqbal, the planning minister, as the chairman of the Cabinet Committee on the Chinese Investment Projects.

Shehbaz Sharif’s decision to deprive the finance minister of the chairmanship of the ECC may limit his control over economic matters due to the wide range of decisions that the ECC takes and their implications on the budget.

When contacted, Finance Minister Aurangzeb said that “PM is taking full ownership of driving the economic agenda, which is the right thing to do”.

Earlier, the cabinet division had issued a notification, mentioning Revenue as an “additional portfolio” of Muhammad Aurangzeb. But Aurangzeb said last week that he would be permanently looking after the Revenue portfolio and it was just that the notification was not properly issued.

The members of the reconstituted ECC include the finance minister, the economic affairs minister, the commerce minister, the minister for petroleum and the minister for planning. There are 18 co-opted ECC members including the deputy chairman of the planning commission, the governor State Bank of Pakistan (SBP), the chairman securities and exchange commission and the chairman board of investment.

The PM has not made the industries minister and maritime affairs minister members of the ECC.

The ECC has been empowered to consider all urgent economic matters and to coordinate economic policies. It would also maintain vigilance on the monetary and credit indicators. It has also authorised the future pattern of growth of agriculture and industries but the industries minister is not a member of the ECC.

The ECC has been mandated to review import policy, and export performance watch the current price situation and ensure price stability. The ECC can make decisions about oil and gas exploration and will oversee the performance of the autonomous bodies.

The Prime Minister had earlier handed over the responsibility of the outsourcing of the three international airports to Ishaq Dar, although this transaction was not carried out under the Privatisation law.

But according to a new notification, now Minister for Defense and Aviation Khawaja Asif will be the chairman of the cabinet committee on the outsourcing of airports and privatisation of Pakistan International Airlines. Ishaq Dar is made the member of this committee, which will now get the secretariat support from the Aviation Division.

CCOP

Ishaq Dar, as chairman of CCOP, will also have vast powers on the privatisation matters and some of the functions of the CCOP also overlap with the functions of the CCoSOEs, which is headed by the finance minister.

The CCOP will formulate the privatisation policy and it will approve the SOEs for the privatisation. The CCOP will take policy decisions on inter-ministerial issues relating to the privatisation process and it will also monitor their progress.

The CCOP will take policy decisions on matters pertaining to privatisation, restructuring, deregulation, regulatory bodies and the privatisation fund account. It will be empowered to approve the reference price for the sale of the SOEs.

The Minister for Finance, Minister for Commerce, Minister for Power, Minister for Industries and Minister for Privatisation will be the members of the CCOP.

CCoSOEs

Muhammad Aurangzeb will chair the cabinet committee on SOEs, which will enforce and monitor the implementation of the SOEs Act and other related laws and policies, according to the cabinet division notification.

The committee will also have the mandate to make appointments on the board of the SOEs and formulate the reform and restructuring proposals. It will also take a periodical review of the financial and operational performance of the SOEs.

The minister for maritime affairs, minister for economic affairs, minister for science and technology and minister for housing & works will be the members of the cabinet committee on SOEs.

CCoCIP

The prime minister has appointed Planning Minister Ahsan Iqbal as the chairman of the cabinet committee on Chinese Investment Projects. His immediate challenge in hand will be to resolve the issue of delayed payments of over Rs515 billion to the Chinese power plants.

Foreign Minister Ishaq Dar will also be a member of the CCoCIP. Among other members are Minister for Interior, Minister for Finance, Minister for Commerce, Minister for Petroleum, Minister for Power, Minister for Railways and Minister for Science and Technology.

According to the cabinet division’s notification, the committee will oversee the progress of the investment projects executed by the Chinese investors and it will expeditiously resolve issues faced by the Chinese investors with different government entities. The committee will also facilitate Chinese investment in productive sectors of the economy as the next phase of CPEC.

While acknowledging that the CPEC was moving at a snail’s pace, the PM has mandated the committee to “reactive slow-moving projects of CPEC through re-engagements with nominated Chinese entities”. It will also review measures taken for the security of the Chinese working and living in Pakistan.

PM clips finance minister’s decision-making wings | The Express Tribune

Aurangzeb deprived of chairmanships of ECC, CCOP

tribune.com.pk

Nothing will help. The looters will still loot.

 

[rpant_gabba]

Nothing will help. The looters will still loot.

Bro,

I was being sarcastic. Ishaq Dar being foreign minister, but will have a say over finances.

recipe for disaster

 

[gazza619]

Bro,

I was being sarcastic. Ishaq Dar being foreign minister, but will have a say over finances.

recipe for disaster

Ishaq Dar is innocent, my friend.

The real enemy is someone else. Just read between the lines, will you.

 

[rpant_gabba]

Ishaq Dar is innocent, my friend.

The real enemy is someone else. Just read between the lines, will you.

Yup.

That said, Ishaq Dar is not going to help.

 

[guard]

There is no way out

The country will remain the same. After 5 years we have the same discussion on how to get Pakistan out of this mess. Establishment has the destroyed the country since the first martial law in Pakistan and they are not stopping.

The more ‘free money’ as the current government sees it, gets. The more Avenfield etc will be purchased. Past the point of no return now.

The Calibri cartel reigns

 

[offstump]

Looks like Ishaq dar is basically the de facto PM
lol

 

[BouncerGuy]

PM keeping important seats for himself in the finance ministry. Another plan for the heist is well set.

 

[BouncerGuy]

This should help

In a significant move, Prime Minister Shehbaz Sharif has reshuffled key positions within the cabinet, depriving Finance Minister Muhammad Aurangzeb of chairmanships in two pivotal committees while carving out a major role for Foreign Minister Ishaq Dar in financial matters.

PM clips finance minister’s decision-making wings​

In a significant move, Prime Minister Shehbaz Sharif has reshuffled key positions within the cabinet, depriving Finance Minister Muhammad Aurangzeb of chairmanships in two pivotal committees while carving out a major role for Foreign Minister Ishaq Dar in financial matters.

The premier has reconstituted four cabinet committees. Out of these, Finance Minister Aurangzeb has been appointed as the chairman of only one committee – a departure from past practices where finance ministers typically chaired three out of the four committees.

The cabinet division has notified the reconstitution of the new committees.

Pakistan also officially acknowledged that the CPEC was moving slowly and has made the re-engagement of the Chinese companies as part of the terms of references of the newly reconstituted committee on Chinese investment.

PM Shehbaz has retained the chairmanship of the most important Economic Coordination Committee (ECC) of the cabinet instead of making Muhammad Aurangzeb head of it. However, in the absence of the prime minister, the finance minister would chair the ECC meeting.

The arrangement suggests that there was resistance to giving the ECC’s chairmanship to the finance minister, a PML-N insider told The Express Tribune.

In another significant development, the prime minister has appointed Foreign Minister Ishaq Dar as the chairman of the Cabinet Committee on Privatisation (CCOP) – a position previously held by the finance minister before the Pakistan Democratic Movement government.

During the caretaker setup, former finance minister Dr Shamshad Akhtar initially assumed the role of CCOP chairperson, which was later transferred to Privatisation Minister Fawad Hasan Fawad.

Sources informed The Express Tribune that within the PML-N, there were differing opinions regarding the appointment of a new finance minister in place of Dar during the government formation period. Ultimately, it was decided that Dar would retain involvement in economic affairs, albeit in a different capacity.

Finance Minister Muhammad Aurangzeb would chair only the cabinet committee on State-owned Enterprises (CCoSOEs). The prime minister also made Ahsan Iqbal, the planning minister, as the chairman of the Cabinet Committee on the Chinese Investment Projects.

Shehbaz Sharif’s decision to deprive the finance minister of the chairmanship of the ECC may limit his control over economic matters due to the wide range of decisions that the ECC takes and their implications on the budget.

When contacted, Finance Minister Aurangzeb said that “PM is taking full ownership of driving the economic agenda, which is the right thing to do”.

Earlier, the cabinet division had issued a notification, mentioning Revenue as an “additional portfolio” of Muhammad Aurangzeb. But Aurangzeb said last week that he would be permanently looking after the Revenue portfolio and it was just that the notification was not properly issued.

The members of the reconstituted ECC include the finance minister, the economic affairs minister, the commerce minister, the minister for petroleum and the minister for planning. There are 18 co-opted ECC members including the deputy chairman of the planning commission, the governor State Bank of Pakistan (SBP), the chairman securities and exchange commission and the chairman board of investment.

The PM has not made the industries minister and maritime affairs minister members of the ECC.

The ECC has been empowered to consider all urgent economic matters and to coordinate economic policies. It would also maintain vigilance on the monetary and credit indicators. It has also authorised the future pattern of growth of agriculture and industries but the industries minister is not a member of the ECC.

The ECC has been mandated to review import policy, and export performance watch the current price situation and ensure price stability. The ECC can make decisions about oil and gas exploration and will oversee the performance of the autonomous bodies.

The Prime Minister had earlier handed over the responsibility of the outsourcing of the three international airports to Ishaq Dar, although this transaction was not carried out under the Privatisation law.

But according to a new notification, now Minister for Defense and Aviation Khawaja Asif will be the chairman of the cabinet committee on the outsourcing of airports and privatisation of Pakistan International Airlines. Ishaq Dar is made the member of this committee, which will now get the secretariat support from the Aviation Division.

CCOP

Ishaq Dar, as chairman of CCOP, will also have vast powers on the privatisation matters and some of the functions of the CCOP also overlap with the functions of the CCoSOEs, which is headed by the finance minister.

The CCOP will formulate the privatisation policy and it will approve the SOEs for the privatisation. The CCOP will take policy decisions on inter-ministerial issues relating to the privatisation process and it will also monitor their progress.

The CCOP will take policy decisions on matters pertaining to privatisation, restructuring, deregulation, regulatory bodies and the privatisation fund account. It will be empowered to approve the reference price for the sale of the SOEs.

The Minister for Finance, Minister for Commerce, Minister for Power, Minister for Industries and Minister for Privatisation will be the members of the CCOP.

CCoSOEs

Muhammad Aurangzeb will chair the cabinet committee on SOEs, which will enforce and monitor the implementation of the SOEs Act and other related laws and policies, according to the cabinet division notification.

The committee will also have the mandate to make appointments on the board of the SOEs and formulate the reform and restructuring proposals. It will also take a periodical review of the financial and operational performance of the SOEs.

The minister for maritime affairs, minister for economic affairs, minister for science and technology and minister for housing & works will be the members of the cabinet committee on SOEs.

CCoCIP

The prime minister has appointed Planning Minister Ahsan Iqbal as the chairman of the cabinet committee on Chinese Investment Projects. His immediate challenge in hand will be to resolve the issue of delayed payments of over Rs515 billion to the Chinese power plants.

Foreign Minister Ishaq Dar will also be a member of the CCoCIP. Among other members are Minister for Interior, Minister for Finance, Minister for Commerce, Minister for Petroleum, Minister for Power, Minister for Railways and Minister for Science and Technology.

According to the cabinet division’s notification, the committee will oversee the progress of the investment projects executed by the Chinese investors and it will expeditiously resolve issues faced by the Chinese investors with different government entities. The committee will also facilitate Chinese investment in productive sectors of the economy as the next phase of CPEC.

While acknowledging that the CPEC was moving at a snail’s pace, the PM has mandated the committee to “reactive slow-moving projects of CPEC through re-engagements with nominated Chinese entities”. It will also review measures taken for the security of the Chinese working and living in Pakistan.

PM clips finance minister’s decision-making wings | The Express Tribune

Aurangzeb deprived of chairmanships of ECC, CCOP

tribune.com.pk

PM Shahbaz withdraws decision to chair Economic Coordination Committee

Prime Minister Shahbaz Sharif withdrew the decision to chair the Economic Coordination Committee (ECC).

PM Shehbaz reconstituted the ECC and now Finance Minister Muhammad Aurangzeb has been appointed as the chairman of the ECC.

A notification has been issued.

ECC members include federal ministers for commerce, power and petroleum, federal ministers on Economic Affairs and Planning.

Earlier, the ECC chairman was Prime Minister Shehbaz Sharif.

Prime Minister Shehbaz Sharif has launched a significant initiative aimed at facilitating business operations in Pakistan. To spearhead this effort, a committee has been formed under the leadership of the Federal Minister for Privatisation and Board of Investment Abdul Aleem Khan.

The committee comprises the chief secretaries of all four provinces, along with Makram Jah Ansari from the Federal Board of Revenue (FBR).

Notable members also include former Finance Secretary Hamid Yaqoob Sheikh, DG Reforms and Automation, CEO of Pakistan Single Window Salman Ahmed, Ali Pervez Malik, and Rana Ehsan Afzal.

SAMAA

 

[Kianig89]

NS paid a secret visit to infamous Hudabiyya Paper Mills , maybe trying to restore it through govt funds

 

[FearlessRoar]

Let's see how this collaboration will lift the economy. It seems like a new experiment to solve the economic crisis.

================================

Pakistan government, army join hands to fix economy and power sector, fight crime

The Pakistan government on Friday decided to employ the country’s powerful military to launch a crackdown on illegal activities and criminal mafias, targeting smugglers, money launderers and hoarders to revitalize the ailing national economy.

The Pakistan military has been utilized in the past to deal with administrative and governance issues, such as the rampant challenge of power theft in certain areas of the country.

Last year, the military’s intervention to prevent foreign currency smuggling and control market manipulations helped the caretaker administration stabilize forex reserves and prices of essential commodities amid depreciating value of the national currency and spiraling inflation.

Prime Minister Shehbaz Sharif chaired a meeting, which was also attended by army chief General Asim Munir and other senior officials, to discuss a broad spectrum of issues.

“The participants were briefed in detail on steps taken against the criminal mafias, smuggling, hoarding, money laundering, power theft and repatriation of illegal foreigners etc.,” said an official statement released after the meeting.

“The meeting showed firm resolve to take action against smugglers, hoarders and market manipulators, who have impacted the economic trajectory and to provide immediate relief to common citizens,” it added.

The meeting gave approval of agreements among federal and provincial governments on anti-power theft policy, restructuring of power distribution companies on modern lines, installation of smart meters for full eradication of power theft and ordered strict action against corrupt officials in the energy sector.

The army chief assured unwavering resolve to support the government’s initiatives aimed at economic recovery of the country.

The prime minister also directed all stakeholders to vigorously pursue various initiatives against illegal activities discussed in the meeting to ensure their accomplishment within the stipulated period.

Pakistan government, army join hands to fix economy and power sector, fight crime

ISLAMABAD: The Pakistan government on Friday decided to employ the country’s powerful military to launch a crackdown on illegal activities and criminal mafias, targeting smugglers, money launderers and hoarders to revitalize the ailing national economy. The Pakistan military has been utilized in...

www.arabnews.pk

 

[FearlessRoar]

That's what we needed. Fresh brains can always do the best.

=====================================

NUST proposes interest rate reduction to tackle economic challenges

The Institute of Policy Studies at the National University of Science and Technology (NUST) has put forward a comprehensive solution to address Pakistan's economic challenges.

Highlighting the urgency of the situation, the institute emphasized the immediate need for a reduction in the country's high interest rates, calling for strong political commitment from both civil and military leadership.

According to the NUST report, Pakistan's economy is grappling with five major issues, including high fiscal and current account deficits, mounting debt, sluggish economic growth, and persistently high inflation rates. The report underscores the significance of addressing these challenges promptly.

Specifically, the institute suggests an immediate reduction in the current policy rate, which stands at 22 percent. It estimates substantial annual savings of billions of rupees with even a modest one percent reduction. Moreover, NUST proposes consolidating the federal development budget for the next two years and refraining from initiating new infrastructure projects.

Additionally, the report recommends expediting the privatization of state-owned enterprises such as Pakistan Steel Mills and Pakistan International Airlines (PIA) to mitigate losses. It advocates for reforms in social welfare programs like the Benazir Income Support Program (BISP), suggesting a reduction in the number of beneficiaries and fixed budget allocation.

Furthermore, NUST stresses the importance of sharing financial responsibilities with provincial governments, enhancing revenue generation, and implementing a point of sale system to streamline taxation, including sales tax.

In terms of human resource management, the institute suggests appointing highly qualified professionals to key ministries such as Finance, Planning, Federal Board of Revenue (FBR), Energy, Commerce, and Industry. It also recommends the formation of a specialized team to boost exports, recognizing the critical role of friendly nations in Pakistan's economic recovery and stability.

The comprehensive proposal by NUST underscores the need for concerted efforts and strategic reforms to navigate Pakistan through its economic challenges and pave the way for sustainable growth and development.

NUST Offers Solutions to Pakistan's Economic Challenges

Pakistan's National University of Science and Technology (NUST) proposes solutions for the country's economic woes. The plan includes reducing interest rates, budget consolidation, and privatizing state-owned enterprises

www.samaa.tv

 

[FearlessRoar]

I wanted to share my thoughts on how carbon trading could actually help boost Pakistan's economy.I am talking about investing in cleaner technologies and renewable energy sources, which means more jobs and opportunities for innovation.If we're serious about reducing emissions, we could attract a ton of foreign investment in green projects. And let's not forget about climate change. By cutting down on greenhouse gases, we're not just helping the environment, we're protecting our agriculture, our communities, and our economy from the worst impacts of climate change.

 

[rpant_gabba]

I wanted to share my thoughts on how carbon trading could actually help boost Pakistan's economy.I am talking about investing in cleaner technologies and renewable energy sources, which means more jobs and opportunities for innovation.If we're serious about reducing emissions, we could attract a ton of foreign investment in green projects. And let's not forget about climate change. By cutting down on greenhouse gases, we're not just helping the environment, we're protecting our agriculture, our communities, and our economy from the worst impacts of climate change.

do yo know any thing about economics at all?

where are you find the capital fro al this stuff you are talking about? Pak can't even pay its bills for its basic needs

 

[BouncerGuy]

First of all, we as a citizen of Pakistan should be looking to end the corruption within ourselves. One simple thing is, "A decent person is one who does not get an opportunity to do corruption". We have to be decent for real. STart giving importance to whatever local industry we have.

 

[FearlessRoar]

A chance to bring Euros to Pakistan

===================================================================================

Good news for Pakistani students from Norway

The decision to delist Pakistan was disclosed in a report published by the Norwegian Police Security Service.

Over the past several years, Pakistan, along with other nations, had found itself recurrently added to National Threat Assessment list, raising concerns and posing challenges for Pakistani students and researchers.

The inclusion of Pakistan’s name on the list had resulted in various complications, hindering the academic and professional pursuits of individuals associated with the country.

Moreover, the presence of Pakistan’s name on the list had provided fodder for negative propaganda by sections of the Indian media.

However, with Norway’s recent decision to remove Pakistan from the list, expressed optimism for improved bilateral relations and a reduction in unwarranted scrutiny and obstacles faced by Pakistani nationals.

Good news for Pakistani students from Norway

In a significant development highlighting the efficacy of diplomatic efforts, Norway has officially removed Pakistan from its National Threat Assessment

arynews.tv

 

[FearlessRoar]

FPCCI seeks broadening of tax base​

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Saturday that the desired tax-to-GDP ratio must be achieved by broadening the tax base and simplifying the taxation system rather than further squeezing the already taxed.

The only pragmatic approach to achieve a tax-to-GDP ratio of 15 per cent in the next five years is to add 1.5 to two million new taxpayers in the tax net, FPCCI President Atif Ikram Sheikh said in a statement.

The tax and Federal Board of Revenue (FBR) reforms should not be done without consultation with relevant stakeholders, he said.

Such efforts have been grossly unsuccessful in the past and the successive governments resorted to regressive and anti-business steps of further increasing the taxes on existing filers, he added.

FPCCI seeks broadening of tax base

The tax and FBR reforms should not be done without consultation with relevant stakeholders, says FPPCI president.

www.dawn.com

 

[FearlessRoar]

I think there is need of encouraging more small businesses in Pakistan to register for taxation.

 

[Cricket Warrior]

I think there is need of encouraging more small businesses in Pakistan to register for taxation.

people here know that their tax money won't be utilized properly which forces them to back off from paying taxes.

 

[hassan918]

Pakistan successfully repays foreign debt worth $1 billion​

KARACHI: Pakistan has successfully repaid a foreign debt worth $1 billion, days before the 10-year Eurobond was to mature, increasing the confidence of global investors in regard to the domestic economy.

"SBP (State Bank of Pakistan) has successfully executed the repayment of $1 billion Pakistan’s International Bond on April 12, 2024 (principal plus interest)," the central bank reported on Saturday.

"The payment was made to the agent bank for onward distribution to the bondholders," the central bank added.

This repayment occurred on Friday, three days ahead of the scheduled maturity date of the 10-year Eurobond, which was to fall on April 15.

Following this payment, Pakistan's outstanding foreign debt from international bonds has decreased to $6.8 billion, spread across seven bonds maturing between September 2025 and April 2051.

The recently repaid bond experienced a remarkable surge in value last week, reaching a record-high price of $1 per unit, marking a significant increase from its value of less than half in June 2023.

The surge reflected strong investor confidence in Pakistan's economy.

Moreover, Pakistan's other global bonds also saw a substantial rally after the nation reached a staff-level agreement with the IMF to secure the final tranche of $1.1 billion. This rally was further fueled by Pakistan's intent to pursue a longer and larger package with the IMF in June, following the completion of the current $3 billion program in April.

The anticipated IMF tranche of $1.1 billion, likely to be received by the end of April, is expected to restore the reserves to over the $8 billion mark.

Following the repayment of the $1 billion debt in April, the country's foreign exchange reserves will experience a decline.

Pakistan had repaid the last Eurobond of $1 billion days before its maturing date in December despite facing a foreign exchange reserves crisis at that time.

Source: The Express Tribune

 

[FearlessRoar]

UNICEF to provide $20m for youth projects in Pakistan

Prime Minister’s Youth Programme and the United Nations International Children’s Emergency Fund have signed an agreement to provide equal opportunities for education and training to the youth.

Prime Minister Shehbaz Sharif witnessed the signing of a letter of intent regarding the United Nations Generation Unlimited (GenU) programme between Prime Minister’s Youth Programme and the UN International Children’s Emergency Fund (UNICEF).

GenU was launched by the Secretary General of the United Nations in 2018 aimed at empowering the youth through education, technical training and entrepreneurship and working towards early education and training.

GenU is planning to start its full operations in Pakistan with an initial investment of 20 million Euros in youth related projects.

Signing the document would help provide equal opportunities to education and training to the youth. GenU and the PM Youth Programme will work together on operational strategic framework in this regard.

Earlier the UNICEF delegation headed by representative of UNICEF in Pakistan Abdullah A Fazil called on the prime minister. Chairman PM Youth Programme Rana Mashhood was also present in the meeting.

The delegation apprised the prime minister about the collaboration between PM Youth Programme and UNICEF regarding increasing the capacity of the youth in Pakistan.

The prime minister appreciated the steps being taken by UNICEF for the welfare of children all over the world including Pakistan.

UNICEF to provide $20m for youth projects in Pakistan

Prime Minister's Youth Programme and the United Nations International Children's Emergency Fund have signed an agreement to provide equal opportunities

arynews.tv

 

[FearlessRoar]

UNICEF to provide $20m for youth projects in Pakistan

Prime Minister’s Youth Programme and the United Nations International Children’s Emergency Fund have signed an agreement to provide equal opportunities for education and training to the youth.

Prime Minister Shehbaz Sharif witnessed the signing of a letter of intent regarding the United Nations Generation Unlimited (GenU) programme between Prime Minister’s Youth Programme and the UN International Children’s Emergency Fund (UNICEF).

GenU was launched by the Secretary General of the United Nations in 2018 aimed at empowering the youth through education, technical training and entrepreneurship and working towards early education and training.

GenU is planning to start its full operations in Pakistan with an initial investment of 20 million Euros in youth related projects.

Signing the document would help provide equal opportunities to education and training to the youth. GenU and the PM Youth Programme will work together on operational strategic framework in this regard.

Earlier the UNICEF delegation headed by representative of UNICEF in Pakistan Abdullah A Fazil called on the prime minister. Chairman PM Youth Programme Rana Mashhood was also present in the meeting.

The delegation apprised the prime minister about the collaboration between PM Youth Programme and UNICEF regarding increasing the capacity of the youth in Pakistan.

The prime minister appreciated the steps being taken by UNICEF for the welfare of children all over the world including Pakistan.

UNICEF to provide $20m for youth projects in Pakistan

Prime Minister's Youth Programme and the United Nations International Children's Emergency Fund have signed an agreement to provide equal opportunities

arynews.tv

If the government does not engage in corruption, these funds can be utilized properly to provide technical education in rural areas, especially.

 

[hassan918]

FBR orders blocking SIM cards of over half-a-million non-filers​

ISLAMABAD: In a major development, the Federal Board of Revenue (FBR) on Tuesday issued legally-binding instructions to the relevant departments to block mobile phone connections of over half-a-million non-filers, as its campaign to voluntarily register retailers also falls apart with only 75 retailers availing the scheme.

The tax machinery also faced another setback on Tuesday when its 10-month tax collection fell short of the goal by around Rs40 billion. Against the July-April target of Rs7.414 trillion, the FBR provisionally collected over Rs7.38 trillion. There was a 31% increase in the collection during the 10 months period.

The developments came on the heels of growing resentment within the tax machinery over the government’s decision to remove 25 allegedly corrupt and inefficient officers. The general body of the customs officers met on Tuesday and the 450 officers from grade 17 to 22 considered the options to either go on strike or file en masse applications to go on leave.

The FBR has issued the Income Tax General Order (ITGO) to disable the mobile phone SIMs of 506,671 persons who were not appearing on active taxpayer list but are liable to file the Income Tax Returns for Tax Year 2023 under the provisions of the Income Tax Ordinance, 2001, according to an announcement by the FBR.

One person may have more than one SIM card and all of those connections will be cut off with immediate effect, said a senior FBR official. He said that about 1 million to 1.5 million SIM cards would be blocked because of the FBR order.

It is the first major, much-needed step that the FBR has taken after all its reminders and tax notices could not convince the people to fulfil their statutory obligation. Under the act of parliament, every person earning Rs600,000 annual income or owning at least 1,000cc car or a house is liable to file the annual tax statement.

The FBR had served tax notices on 2.4 million such non-filers and in the first phase it had blocked the SIM cards of over half a million who had taxable income and were earlier filing statements but did not file this time.

Out of these, 450,000 individuals were identified by the FBR and the remaining 50,000 by using the third-party data of their expenditure and consumption patterns.

Malik Amjad Zubair Tiwana, the chairman of the FBR, said that the government was fully committed to go after non-filers and the process would not end at just 500,000 people.

For the tax year 2023, so far only 4.5 million people have filed their annual returns as against 5.9 million filers for tax year 2022.

The FBR said that mobile SIMs of these individuals will remain blocked until restored by the FBR or the Commissioner Inland Revenue having jurisdiction of the person. The Pakistan Telecommunication Authority (PTA) and all telecom operators have been directed to ensure compliance of the FBR’s orders with immediate effect.

The Special Investment Facilitation Council (SIFC) -- the joint civil-military body -- would seek regular updates from the FBR and the PTA. The telecom operators are mandated to furnish a compliance report to the FBR by May 15, 2024, to provide transparency and accountability in the enforcement process.

This strategic initiative underscores the FBR's commitment to fostering a culture of tax compliance and accountability among taxpayers, said the FBR.

FBR orders blocking SIM cards of over half-a-million non-filers | The Express Tribune

Around 1 million to 1.5 million SIM cards would be blocked, says official

tribune.com.pk

 

[hassan918]

FBR orders blocking SIM cards of over half-a-million non-filers​

ISLAMABAD: In a major development, the Federal Board of Revenue (FBR) on Tuesday issued legally-binding instructions to the relevant departments to block mobile phone connections of over half-a-million non-filers, as its campaign to voluntarily register retailers also falls apart with only 75 retailers availing the scheme.

The tax machinery also faced another setback on Tuesday when its 10-month tax collection fell short of the goal by around Rs40 billion. Against the July-April target of Rs7.414 trillion, the FBR provisionally collected over Rs7.38 trillion. There was a 31% increase in the collection during the 10 months period.

The developments came on the heels of growing resentment within the tax machinery over the government’s decision to remove 25 allegedly corrupt and inefficient officers. The general body of the customs officers met on Tuesday and the 450 officers from grade 17 to 22 considered the options to either go on strike or file en masse applications to go on leave.

The FBR has issued the Income Tax General Order (ITGO) to disable the mobile phone SIMs of 506,671 persons who were not appearing on active taxpayer list but are liable to file the Income Tax Returns for Tax Year 2023 under the provisions of the Income Tax Ordinance, 2001, according to an announcement by the FBR.

One person may have more than one SIM card and all of those connections will be cut off with immediate effect, said a senior FBR official. He said that about 1 million to 1.5 million SIM cards would be blocked because of the FBR order.

It is the first major, much-needed step that the FBR has taken after all its reminders and tax notices could not convince the people to fulfil their statutory obligation. Under the act of parliament, every person earning Rs600,000 annual income or owning at least 1,000cc car or a house is liable to file the annual tax statement.

The FBR had served tax notices on 2.4 million such non-filers and in the first phase it had blocked the SIM cards of over half a million who had taxable income and were earlier filing statements but did not file this time.

Out of these, 450,000 individuals were identified by the FBR and the remaining 50,000 by using the third-party data of their expenditure and consumption patterns.

Malik Amjad Zubair Tiwana, the chairman of the FBR, said that the government was fully committed to go after non-filers and the process would not end at just 500,000 people.

For the tax year 2023, so far only 4.5 million people have filed their annual returns as against 5.9 million filers for tax year 2022.

The FBR said that mobile SIMs of these individuals will remain blocked until restored by the FBR or the Commissioner Inland Revenue having jurisdiction of the person. The Pakistan Telecommunication Authority (PTA) and all telecom operators have been directed to ensure compliance of the FBR’s orders with immediate effect.

The Special Investment Facilitation Council (SIFC) -- the joint civil-military body -- would seek regular updates from the FBR and the PTA. The telecom operators are mandated to furnish a compliance report to the FBR by May 15, 2024, to provide transparency and accountability in the enforcement process.

This strategic initiative underscores the FBR's commitment to fostering a culture of tax compliance and accountability among taxpayers, said the FBR.

FBR orders blocking SIM cards of over half-a-million non-filers | The Express Tribune

Around 1 million to 1.5 million SIM cards would be blocked, says official

tribune.com.pk

PTA refuses FBR demand to block over 500,000 non-filers’ SIMs​

The Pakistan Telecommunications Authority (PTA) has refused the Federal Bureau of Revenue’s (FBR) demand to block the mobile phone SIMs of over half a million individuals who did not file tax returns in 2023, it emerged on Saturday.

Earlier this week, the FBR released a comprehensive list of 506,671 non-filers, adding that their mobile phone SIMs would be promptly blocked. The PTA and other telecom providers were ordered to comply with the decision.

The decision was issued in Income Tax General Order (ITGO) no 01 of 2024, which said that the mobile SIMs for these individuals would stay blocked until restored by the FBR or the Commissioner Inland Revenue.

In a declaration issued on Friday regarding enforcement of the ITGO, the PTA said its execution did not fall within its jurisdiction and thus the order would have “no legal binding effect” since it was inconsistent with the applicable legal framework.

The PTA said that before the order’s execution, “factual issues with regard to the usage of SIMs against CNICs (Computerised National Identity Card) also need to be verified on the premise that any person may obtain eight SIMs (three data and five voice) therefore, before issuing and implementing ITGO, procedural steps with regard to notices would require to be issued by the tax collection authority as provided in section 144-B of the Income Tax Ordinance, 2001”.

The authority said the order’s execution would have an “adverse impact on prevailing social norms”.

It said that most male users registered SIMs on their names instead of females and juveniles and thus only 27 per cent of of SIMs were registered on CNICs of females .

The PTA said that potential female and children subscribers would be deprived of access to communication with “specific reference to their educational activities” while the confidence of foreign investors in the telecom sector might also be adversely impacted.

Moreover, it added that blocking SIMs could affect financial transactions such as online payments, remittances, online banking and e-health activities, thus causing “multiple issues”.

The PTA recommended that instead of blocking SIMs at the first instance, the FBR needed to pursue “other alternative modes for ensuring better compliance for filing of income tax returns” such as awareness campaigns.

Furthermore, the authority said the issue needed to be reviewed in a “holistic manner after consultation with all stakeholders”, including the Ministry of Information Technology and Telecom.

A separate statement from the PTA issued today said it communicated to the FBR that the ITGO needed a review before its execution, adding that the authority had already also initiated consultation with stakeholders on the subject issue.

Source: DAWN

 

[Kianig89]

Rs.85 billion plundered from.general public in wheat import scandal, only amnesty schemes can propel this economy otherwise everybody has safe heavens

 

[BouncerGuy]

Mass SIM blocking not feasible, warn telcos

The telecom companies have collectively forwarded their concerns to the Ministry of IT that the Federal Board of Revenue (FBR) decision to block SIMs of non-filers was made in undue haste and will adversely impact telecom customers.

The letter has also been forwarded to the Pakistan Telecommunication Authority (PTA) regarding the FBR’s order under the Income Tax General Order (ITGO) issued on April 29, which sought to block SIMs of 506,671 individuals who have failed to file their tax returns for the tax year 2023.

The letter by the cellular mobile operators (CMOs) said that they were obligated to provide uninterrupted services to their customers except in the circumstances mentioned in the Telecom Act and applicable regulations; there are no instances wherein CMOs can disconnect or block the service of any customer.

“The ITGO being forced through with undue haste will adversely impact the customers,” the letter said. “This will gravely impact the customers’ ability to get essential services, which have now been defined as the right to life, according to different judgements of superior courts,” it added.

“Besides the aspect of consumer protection was important with relevant constitutional provisions of basic human rights, Consumer Protection Regulations mandated operators that any suspension of service is subject to prior notice of such intentions, and in the instant case the issuance of notice is not possible because of the legal defects of ITGO.”

The CMOs have suggested that delinquent individuals should be sanctioned and penalised directly without involving and adversely impacting the telecom industry.

The letter further said that if telecom operators comply with the ITGO, the affected individuals may initiate litigation against the CMOs.

“The affected individual may even seek to recover special costs, damages & losses that he/she has incurred because of SIM card being blocked,” the letter by the CMOs said, adding, “It is unjust, unreasonable, and unacceptable for CMOs to be exposed to such a risk.”

It added that telecom companies were one of the biggest contributors to revenue collection in the country, and before implementing such orders, certain protections or indemnities must be given to CMOs through an amendment in law to prevent adverse consequences or claims by customers.

The telecom industry has also added that the bulk blocking of SIMs would be an issue technically and CMOs would need to warn such customers multiple times before execution of any blocking through SMS messages, if required by law, as they have contractual obligations towards their consumers to provide advance statutory notice with valid reasons, which in this case are absent.

The letter added that telcos have to develop internal processes and system development, which requires reasonable time and resources; hence, immediate compliance with such ITGO is difficult.

The telecom industry also suggests that every individual is entitled to fair and equitable treatment with due process under the law. Therefore, individuals affected by the ITGO should be duly informed through an extensive media campaign and provided with show-cause notices, allowing them to present their case in a tribunal or court of law.

SOURCE: DAWN

 

[hassan918]

Non-filers to pay Rs90 out of every Rs100 mobile recharge​

(Web Desk) – With an aim to boost revenues and expand tax net, Federal Board of Revenue (FBR) has decided to target non-filers with a significant increase in withholding tax, jumping from 2.5 per cent to a whopping 90 per cent.

Under this new rule, non-filers will pay Rs90 out of every Rs100 mobile recharge. Rs90 will be deducted and sent to the tax authority.

Moreover, persistent non-compliance will lead to further penalties. Non-filers will face a 90 percent tax on every new SIM card purchase, as well as on subsequent recharges and usage of call and data plans.

To enforce this, the FBR has shared lists identifying over 500,000 non-filers and instructed the Pakistan Telecommunication Authority (PTA) and telecom companies to block their SIM cards.

Already, around 11,500 SIM cards have been blocked, with more expected to follow in the coming days.

Telecom companies have until May 15 to block SIM cards linked to all identified non-filers. This crackdown comes after the FBR identified millions of potential taxpayers who haven’t fulfilled their tax responsibilities.

The aim is to encourage everyone to contribute to the country’s development by paying their fair share of taxes.

Source: Dunya News

 

[hassan918]

It is hard to understand such policies. They should be taxing those people more who use more mobile phone and their bills are high rather than getting money out of the poor people who only recharge one or two hundred monthly.

 

[Cricket Warrior]

Over 11,000 SIM cards of non-filers blocked so far

The cellular companies on a recommendation of the Federal Board of Revenue (FBR) have blocked more than 11,000 SIM cards of the non-tax filers, ARY News reported.

As per the details, the telecommunication companies had over 3000 SIM cards of the citizens who failed to file their income tax returns in the first phase.

Then on the FBR’s another recommendation, the cellular companies on Wednesday blocked around 9000 SIM cards taking the toll to 11, 252.

FBR Spokesperson Bakhtiar Ahmed Khan while speaking to ARY News said that they have provided data of 30,000 non-filers to cellular companies, hinting that more SIM cards will be blocked.

Bakhtiar Ahmed Khan said that the FBR will provide data of 5,000 non-filers daily to telecom companies so that strict action could be taken against them.

The spokesman said the FBR so far identified over 550,000 non-filers.

Earlier, the FBR decided to impose an additional 87.5 percent withholding tax on non-tax filers phone users on mobile top-up

According to the details, the non-filers would have to pay a 90 percent withholding tax on mobile top-ups till they file their income tax returns. According to a proposal, if a non-filer user loads a balance of Rs 100, he would receive only Rs 10 as Rs 90 will be deducted as tax.

If mobile phone companies block SIM cards for non-payment of income tax, and the user buys another SIM, he would still also be charged 90 percent of tax. The non-filers will be charged additional taxes on every top-up and bundles.


ARY News

 

[FearlessRoar]

The management of the economy and finance ministry requires expertise beyond what bankers and bureaucrats can offer. Pakistan urgently needs highly qualified, independent economists and specialists to take the reins. Meanwhile, the federal bureaucracy, with its bloated workforce of approximately 600,000 people, needs significant downsizing - a reduction of at least 20% is necessary. This trimming of the fat will pave the way for a leaner, more competent bureaucracy, allowing us to streamline costs and elevate the quality of our public servants.

 

[Cricket Warrior]

Over 7000 SIMs unblocked after non-filers submit returns

The cellular companies unblocked over 7000 SIM cards that had been blocked earlier over non-filing of income tax return, ARY News reported

The Federal Board of Revenue (FBR) sources said that 7167 mobile SIM cards have been unblocked after the individuals filed their income tax returns.

The FBR said that it has shared the data of 65,000 non-filers with telecom companies and asked them to block the SIMs of these individuals.

The FBR sources said that a total of 506,671 non-filers have been identified, and it has been decided that their SIMs will be blocked under the Income Tax General Order.

Earlier on May 23, it was reported that the cellular companies on a recommendation of the FBR blocked more than 11,000 SIM cards of the non-tax filers.

As per the details, the telecommunication companies had over 3000 SIM cards of the citizens who failed to file their income tax returns in the first phase.

Then on the FBR’s another recommendation, the cellular companies on Wednesday blocked around 9000 SIM cards taking the toll to 11, 252.


ARY News

 

[Bewal Express]

The management of the economy and finance ministry requires expertise beyond what bankers and bureaucrats can offer. Pakistan urgently needs highly qualified, independent economists and specialists to take the reins. Meanwhile, the federal bureaucracy, with its bloated workforce of approximately 600,000 people, needs significant downsizing - a reduction of at least 20% is necessary. This trimming of the fat will pave the way for a leaner, more competent bureaucracy, allowing us to streamline costs and elevate the quality of our public servants.

It requires confidence in the rule of law, and the development of an education system that uses the talents of its people. It doesn't need criminals like Munir thinking they are economic experts

 

[JaDed]

Over 7000 SIMs unblocked after non-filers submit returns

The cellular companies unblocked over 7000 SIM cards that had been blocked earlier over non-filing of income tax return, ARY News reported

The Federal Board of Revenue (FBR) sources said that 7167 mobile SIM cards have been unblocked after the individuals filed their income tax returns.

The FBR said that it has shared the data of 65,000 non-filers with telecom companies and asked them to block the SIMs of these individuals.

The FBR sources said that a total of 506,671 non-filers have been identified, and it has been decided that their SIMs will be blocked under the Income Tax General Order.

Earlier on May 23, it was reported that the cellular companies on a recommendation of the FBR blocked more than 11,000 SIM cards of the non-tax filers.

As per the details, the telecommunication companies had over 3000 SIM cards of the citizens who failed to file their income tax returns in the first phase.

Then on the FBR’s another recommendation, the cellular companies on Wednesday blocked around 9000 SIM cards taking the toll to 11, 252.


ARY News

One thing is certain every country penalises middle class income earners with tax,Whether it’s Pakistan, India or US.

 

[JaDed]

The management of the economy and finance ministry requires expertise beyond what bankers and bureaucrats can offer. Pakistan urgently needs highly qualified, independent economists and specialists to take the reins. Meanwhile, the federal bureaucracy, with its bloated workforce of approximately 600,000 people, needs significant downsizing - a reduction of at least 20% is necessary. This trimming of the fat will pave the way for a leaner, more competent bureaucracy, allowing us to streamline costs and elevate the quality of our public servants.

One doesn’t need to fire the federal workers but find way around them.
Current BJP government has done that with passport offices and now recently for driving licenses from June1.

Government should make sure bureaucracy hiring is stopped and find privatisation around it.

 

[Cricket Warrior]

Pakistan decides to impose travel ban on non-filers

Pakistan has decided to restrict the foreign travel of non-filers, with the exception of those travelling for Hajj, Umrah, or educational purposes as the country presented its Rs18.9 trillion worth of budget on Wednesday.

According to the Finance Bill, the government has proposed a penalty of Rs10 million for travel agencies that fail to implement the new regulations.

Finance Minister Muhammad Aurangzeb presented the budget in a National Assembly session amid anti-Nawaz Sharif slogans from the opposition.

In his speech, he reiterated the need for digitising the Federal Board of Revenue and bringing reforms to the institution to improve tax collection.

The government has set an ambitious Rs12,970 billion tax revenue target for the FBR, which is 38 per cent more than the current fiscal year.

The Finance Bill further stated that a repeat offence of non-compliance would result in a fine of Rs20 million.


AAJ News

 

[hassan918]

After SIMs, non-filers' electricity, gas connections to be suspended: FBR chief​

ISLAMABAD: As Pakistan eyes boosting its tax revenues in budget 2024-25, the Federal Board of Revenue (FBR) chief has said that electricity and gas connections of the non-filers will be suspended along with SIMs.

In a latest development, the Senate’s Standing Committee on Finance and Revenue on Saturday okayed the proposal to impose a foreign travel ban on non-filers. A series of decisions were made in today’s session of the Senate body held under the chair of Saleem Mandviwalla.

FBR Chairman Zubair Tiwana informed the upper house body that those who failed to file tax returns would face actions under the Income Tax General Order (ITGO), however, exemptions would be given to nationals for Hajj, Umrah, children, students and holders of National Identity Card for Overseas Pakistanis (NICOP).

He detailed that non-filers will face suspension of their SIM cards, electricity and gas connections, as well as their businesses could be shut down.

During the session, Pakistan Peoples Party (PPP) Senator Farooq H Naek stressed that the travel restrictions on non-filers should be executed in the same way which were enforced on those who came under the category of exit control list (ECL).

Tiwana further said that a higher withholding tax rate was approved for the non-filers. He added that the non-filer list included 500,000 people with over 2 million in annual income.

He added that the listed individuals had already disclosed their income statements with their tax return documents in the past. The FBR’s top officer said that temporary filers will also have to pay additional tax during the purchases of vehicles, plots and residences.

Additionally, the Senate body also approved a proposal to reduce the salary slab and hike tax besides, approving the imposition of a 75% withholding tax on cellular and internet bills of non-filers.

Earlier this week, Finance Minister Muhammad Aurangzeb emphasised the need for widening the tax net, saying that the country cannot run with a 9.5% tax-to-GDP ratio.

“We have to bring everyone into the tax net. We are aiming to bring everyone on the active taxpayers' list,” said the finance czar while speaking on Geo News programme Aaj Shahzeb Khanzada Kay Sath on Wednesday.

“We have to abolish the non-filer category in the country,” he added.

His statement comes hours after he unveiled the federal budget for the fiscal year 2024-25 in the National Assembly, with a total outlay of Rs18.9 trillion.

Source: GEO

 

[JaDed]

Pakistan decides to impose travel ban on non-filers

Pakistan has decided to restrict the foreign travel of non-filers, with the exception of those travelling for Hajj, Umrah, or educational purposes as the country presented its Rs18.9 trillion worth of budget on Wednesday.

According to the Finance Bill, the government has proposed a penalty of Rs10 million for travel agencies that fail to implement the new regulations.

Finance Minister Muhammad Aurangzeb presented the budget in a National Assembly session amid anti-Nawaz Sharif slogans from the opposition.

In his speech, he reiterated the need for digitising the Federal Board of Revenue and bringing reforms to the institution to improve tax collection.

The government has set an ambitious Rs12,970 billion tax revenue target for the FBR, which is 38 per cent more than the current fiscal year.

The Finance Bill further stated that a repeat offence of non-compliance would result in a fine of Rs20 million.


AAJ News

No ban on people with criminal cases though aka Nawaz

 

[Gharib Aadmi]

Try the following:
Privatize all State run enterprises. - No more PIA, Steel Mill, WAPDA. They are overstaffed and inefficient. Many people employed in them are political hacks who are not qualified to clean toilets.
Tax unused land
End subsidies, especially of petrol
Remove red tape on business. - Singapore and New Zealand are always top 2 in the "ease of doing business index" so just copy them.
Trade with India -
Increase Remittances - work with friendly gulf countries to get more Pakistanis there.

 

[BouncerGuy]

No ban on people with criminal cases though aka Nawaz

This is why there is no way that Pakistan can come out of the economic crisis. When you have just thugs in your country, running the country, how can any idea work.

 

[The Bald Eagle]

Finance Minister Muhammad Aurangzeb on Tuesday assured that other sectors would be brought into the tax net, while also highlighting the need to reduce tax exemptions

His remarks come days after the government presented the federal budget for the upcoming fiscal year (FY2024-25) with a total outlay of Rs18.9 trillion, which analysts said was broadly “in line with International Monetary Fund (IMF) guidelines”.

Pakistan’s budget for the upcoming year aims for a modest 3.6 per cent gross domestic product (GDP) growth, and sets an ambitious Rs13tr tax collection target, raising taxes on salaried classes and removing tax exemptions for the rest.

Aurangzeb, during the budget presentation, had said that the goal was to widen the tax base to avoid burdening existing taxpayers.

Speaking at a press conference in Kamalia today, Aurangzeb said that the current tax-to-GDP ratio of 9.5 per cent was “not sustainable”.

“Schools, universities and hospitals can function with charity and philanthropy. Countries can only function with taxes,” he said, adding that the tax-to-GDP-ratio needed to be increased to 13pc.

He said that there were several ways to achieve this, including imposing direct taxation where previously there was none and the need to reduce tax exemptions.

“We have tax exemptions, or expenditures, of Rs3.9tr. We call them expenditures but they are exemptions and we need to reduce those exemptions,” he said, adding that the government had “ring-fenced some areas”, including health and agriculture.

The minister assured that the government was “bringing other sectors into the tax net”. He noted that approximately 32,000 retailers had been registered, adding that they would be taxed from July onward.

“There cannot be a segment which we do not bring under direct taxes,” he stressed.

“Because if we do not bring them in, then the conversation of what is happening with the salaried class and manufacturing [sector] will keep continuing. So there are other sectors that are going to be brought into the net,” he said.

Source : Dawn News

 

[The Bald Eagle]

Finance Minister Muhammad Aurangzeb emphasized on Tuesday that the government's top priorities include further reducing inflation and facilitating industries

Concluding the debate on the federal budget in the National Assembly, Aurangzeb acknowledged positive suggestions from parliament members during the discussions.

He highlighted that efforts are underway to accelerate the digitization of the Federal Board of Revenue (FBR) and the privatization of Pakistan International Airlines (PIA).

The government has already begun implementing budgetary measures, with a focus on sectors like agriculture, education, and health, said Aurangzeb.

The finance minister underscored the significance of agriculture, education, and health sectors in the government's agenda.

He mentioned considerations for exempting charitable hospitals from sales tax and emphasized stringent actions against retailers not partaking in the FBR's merchant-friendly scheme. Additionally, pension reforms aim to generate savings.

Aurangzeb expressed pride in the armed forces' performance, affirming the government's commitment to providing necessary resources. He added steps are being taken to ensure security for Chinese experts in the second phase of the China-Pakistan Economic Corridor (CPEC).

The finance czar informed about progress towards the next International Monetary Fund (IMF) program, aiming for it to be Pakistan's final such program. The upcoming fiscal year's budget prioritizes completing ongoing projects and promoting public-private partnerships, said Aurangzeb.

He further stated that the federal budget aims to reduce the fiscal deficit by focusing on increasing resources and cutting unnecessary expenses, adding immediate measures will target downsizing the federal government and curbing resource wastage, continuing the Prime Minister's directive for simplicity and austerity.

He affirmed the federal government's commitment to achieving financial stability in collaboration with provincial governments and enhancing the country's overall financial resources.

Discussions are ongoing regarding the distribution of federal expenses, with efforts to ensure provincial contributions align with national expenditures, said Aurangzeb, extending gratitude to chief ministers of all provinces for their contributions to this dialogue.

Aurangzeb earlier underscored the country's need to 'privatise' critical sectors of the country. Highlighting a staggering example, the minister revealed that Pakistan International Airlines (PIA) alone has accrued losses amounting to Rs. 622 billion, recently shouldered by the government.

He added that looking ahead, the administration plans to initiate the outsourcing of airports, a strategic move intended to stimulate economic growth by leveraging private sector efficiency.

Acknowledging the necessity of immediate relief measures, he reiterated the government's commitment to assuming full responsibility for mitigating losses and fostering a conducive environment for sustainable economic progress.

Saying that 'countries run on taxes, not charity' he also highlighted ongoing issue of tax evasion, noting that many individuals and businesses are avoiding FBR scrutiny due to concerns over harassment.

Source: The Express Tribune

 

[Cricket Warrior]

Centre decides to penalise tax evaders

As the government has decided to form a special wing to detect tax evasion, it has also proposed a fine on the tax evaders.

“The person who commits, causes to commit or attempts to commit the tax fraud shall pay a penalty of Rs25,000 or 100 per cent of the amount of tax evaded or sought to be evaded, whichever is higher,” according to the amended Finance Bill.

“Without prejudice to the above, he shall also be liable, upon conviction by a special judge to imprisonment for a term which may extend to five years if the tax evaded or sought to be evaded is less than Rs1 billion, and which may extend to 10 years if the tax evaded or sought to be evaded is Rs1 billion and above, and fine which may extend to an amount equal to the amount of tax evaded or sought to be evaded, or with both,” it said.

Moreover, the government has also penalise the person who helps others in tax fraud.

“The person who abets or connives in commissioning of tax fraud shall be liable, upon conviction by a special judge to imprisonment for a term which may extend to five years if the tax evaded or sought to be evaded is less than Rs1 billion, and which may extend to 10 years if the tax evaded or sought to be evaded is one billion rupees and above, and with fine which may extend to an amount equal to the amount of tax evaded or sought to be evaded or with both.”


AAJ News

 

[Kianig89]

Every person from age 24-35 should be bound to do work even if it is community work like an unemployed person be given the duty to maintain greenpaths in his area , these kind of habits Will instil hardwork and a tendency to not remain idle. At present the situation in Pakistan is that 1 family member earns while minimum 4 to 5 person are dependent on him

 

[FearlessRoar]

FBR recovers Rs14bln after ‘freezing’ power supplying companies’ accounts

According to sources, the Economic Coordination Committee (ECC) meeting, chaired by the Finance Minister, addressed a dispute between the Federal Board of Revenue (FBR) and the Power Division over sales tax collection on electricity supply to Azad Kashmir.

Sources said that FBR freezed accounts of Islamabad Electric Supply Company and recovered Rs 10.5 billion, Rs 2 billion from PESCO and Rs 1.58 billion from GEPCO.

Notices were issued to two companies for Rs 52.76 billion in tax payments including Islamabad Electric Supply Company for Rs 47 billion and Gujranwala Electric Power Company for Rs 5.76 billion, sources added.

Sources said that the Power Division had sought ECC’s help to resolve the dispute, which arised as the FBR refused to exempt Azad Kashmir from sales tax on electricity supply, contrary to an agreement between Power Division, WAPDA, and Azad Kashmir.

The ECC had directed Secretary Power, Secretary Finance, and Chairman FBR to resolve the issue.

FBR recovers Rs14bln after 'freezing' power supplying companies' accounts

ISLAMABAD: The Federal Board of Revenue (FBR) recovered approximately Rs 14 billion from three electricity companies, after freezing their accounts, ARY

arynews.tv

 

[FearlessRoar]

Pakistan's economy needs more such billions of recoveries to get back on track.

 

[FearlessRoar]

PM Shehbaz Sharif's taxation reforms are a step in the right direction

Digitization, tackling tax evasion, and promoting transparency will boost Pakistan's economy, increase revenue, and attract foreign investment. A well-implemented taxation system can be a game-changer for the country's economic growth and development

----------------------------------------------------------------------------------------------------

Prime Minister (PM) Shehbaz Sharif on Friday calling the digitisation of taxation system government’s priority to prevent tax evasion worth billions of rupees, directed the authorities concerned to immediately create a dashboard to monitor the ongoing digitisation and implementation of the reforms

The prime minister made these remarks while chairing a meeting to review the reforms process of the Federal Board of Revenue (FBR).

PM Shehbaz instructed to bring the taxable non-filers into the tax net and revoke the discretionary powers of the customs appraisers, and sought an implementation report from FBR chairman within 24 hours.

During the briefing on FBR’s digitisation, the meeting was told that during the FBR digitisation, 4.5 million taxable individuals have been identified who were not part of the tax net.

It was told that consequent to the government’s measures, over 300,000 more individuals have filed their tax returns within few week.

Besides, the refunds of 4,000 companies have been stopped during last two weeks, following the detection of under-invoicing and forged sales tax refunds.

The prime minister said that the tax evaders as well as the officers and staffers facilitating them would be punished and vowed not to spare those plundering the public kitty. Besides, the taxpayers fulfilling their responsibility timely would be acknowledged too, he added.

PM Shehbaz said that state-of-the-art scanners would be installed at the seaports to ensure transparency and prevent corruption in the system. He also sought a comprehensive report on the magnitude of tax evasion and the measures for its prevention.

He vowed to introduce a taxation system of international standard in the country and called for engaging well reputed professionals and experts for formulation of tax policy.

The prime minister sought a comprehensive strategy on FBR’s digitisation and reforms and the set targets in the next meeting.

Federal ministers Muhammad Aurangzeb and Ahad Khan Cheema, Minister of State Ali Pervaiz Malik, PM’s Coordinator Rana Ehsan Afzal, FBR Chairman, CEO of Pakistan Business Council Ehsan Malik, CEO of Karandaz Waqasul Hassan and relevant senior officer attended the meeting. Dr Shamshad Akhtar, Naveed Andrabi, Asif Pir and Ali Malik joined the meeting via video link.

Digitisation of tax system govt’s top priority: PM Shehbaz

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif on Friday calling the digitisation of taxation system government’s priority to prevent tax evasion worth

arynews.tv

 

[The Bald Eagle]

Minister for Privatization Abdul Aleem Khan has invited Chinese companies to invest in Pakistan by taking advantage of its business friendly policies

He was talking to Chinese Ambassador Jiang Zaidong in Islamabad today.

The Minister said that Pakistan is granting easy visa facility for business-men of 126 countries including China.

He reiterated that Pakistan will ensure foolproof security for chinese investors.

During the meeting seven sectors were identified for establishing of industries under "Match Making Industry". These include Medical equipment, Plastics, Textiles, Leather, Meat processing, fruits and vegetables and waste materials.

Chinese Ambassador Jiang Zaidong assured his country's all possible support for investment in Pakistan

Source: Radio Pakistan

 

[Kianig89]

How about some population control, why not MNS the tik tok CM takes initiative on it, Pakistan population will be double by 2050

 

[Bewal Express]

How about some population control, why not MNS the tik tok CM takes initiative on it, Pakistan population will be double by 2050

Population controls come with education of women and the general increase in economic welfare. Economic insecurities lead to higher a birthrate

 

[Cricket Warrior]

Economic insecurities lead to higher a birthrate

hain?

kaisay bhai?

 

[Bewal Express]

hain?

kaisay bhai?

All the evidence shows that as people move up the income and education strata, they have less children. China forced a one child policy but today people don't want to have kids as they are much better off. The reason for this is that as most people in poorer societies don't have any pensions or any sort of welfare, their biggest asset is their children.