Business

FBR reform plan in works amid opposition over private members

Published

4 months ago

Farwa

FBR top management will send summary to cabinet.
SIFC has approved the restructuring plan of the FBR.
Reforms aim at strengthening governance with accountability.

ISLAMABAD: The Federal Board of Revenue’s (FBR) top management will send a summary to the federal cabinet on a reform plan to implement the decision of the Special Investment Facilitation Council (SIFC), The News reported on Wednesday.

However, the FBR has decided to oppose private members as head of Inland Revenue and Customs boards in writing.

“Whatever is not in the larger interest of revenue generation efforts, the FBR will oppose it tooth and nail,” sources confirmed to The News on Tuesday.

It is yet to ascertain as to how the private members, after getting the position of chairman of boards, would ensure that there would be no conflict of interest. The SIFC has approved the restructuring plan of the FBR and assigned the chairman/Revenue Division secretary to prepare and send summary to the cabinet in 15 days.

Sources said that the SIFC possessed overriding on all directives and its directive would be fully complied.

However, the FBR’s top guns would oppose in writing private members as head of boards in Inland Revenue and Customs side as well as inclusion of different federal secretaries into the boards.

There has been an impression within the ranks of the FBR that the mighty DMG officers found space to clinch positions over and above the director generals (DGs) of Inland Revenue of FBR and Federal Board of Customs. It might also erode the accountability mechanism because if all these top notches secretaries were appointed on the boards, then they might close their eyes to any wrongdoings of subordinates in IRS and Customs.

There has been another apprehension if the tax revenue generation will go up or there was no commitment. On appointment of private members, one official reminded the episode of last one and half decades when the audit was outsourced to private firms after which a fiasco had surfaced and ultimately, the government had to shelve its decision of outsourcing of audit.

Caretaker Minister of Finance Dr Shamshad Akhtar had proposed a new governance structure for the FBR to establish separate Federal Board of Customs and Federal Board of Inland Revenue and appointment of DGs from respective cadres as their heads.

The separate Oversight Boards for Customs and Inland Revenue Administrations to be chaired by independent high caliber professionals, and members of the board will include public and private sector representation nominated through proper criteria and right expertise and integrity.

The focus of reforms will be on strengthening governance with accountability through oversight boards. The reconstitution of the Federal Policy Board under the minister for finance with the secretary Revenue Division will report to the Federal Policy Board with a new policy mandate.

The Tax Policy Office will be constituted with HR having right expertise, including taxation and industry professionals under the Federal Policy Board, which will look after the harmonization of assets valuation modalities and legal and regulatory framework of taxation regimes and promote revenue and policy coordination. The proposed reforms will be implemented within the existing allocation of resources of the FBR.

The governor SBP advised that the audit function of FBC and FBIR would be placed under the Tax Policy Unit (TPU) to ensure independence.

Business

Pakistan’s gold prices are still declining; see the most recent

Published

5 hours ago

Farwa

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Business

Pakistan and the IMF begin talks for a new loan.

Published

6 hours ago

Farwa

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

6 hours ago

Farwa

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.