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Pakistan’s pace of economic growth to slow down to 4% in FY22: ADB

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  • ADB, however, says growth is expected to accelerate to 4.5% in FY23.
  • “Pakistan’s economy is recovering steadily due to well-coordinated fiscal and monetary responses to the pandemic,” ADB country director says.
  • Manilla-based institute notes that in FY22, industrial growth is forecast to decelerate.

ISLAMABAD: Following a remarkable economic rebound in the previous fiscal year 2020-21, the Asian Development Bank (ADB) projected Pakistan’s economic growth to slow down to 4% in the ongoing fiscal year 2021-22 amid tighter fiscal and monetary policies before picking up again in the fiscal year 2022-23.

According to the Asian Development Outlook (ADO), 2022 — ADB’s annual flagship economic publication — Pakistan’s gross domestic product (GDP) growth is projected to slow to 4% in FY22 from 5.6% in FY21 as the government applies measures to reduce the current account deficit, raise international reserves, and cut inflation.

“Growth is expected to accelerate to 4.5% in FY23 due to stronger private consumption and investment,” the Manilla-based institution projected.

Commenting on the forecast, ADB Country Director for Pakistan Yong Ye said: “Pakistan’s economy is recovering steadily thanks to well-coordinated fiscal and monetary responses to the pandemic.”

“These led to a remarkable expansion in the industry and services sectors. It is key to continue structural reforms along with appropriate fiscal and monetary policies to contain rising inflation and external imbalances. Comprehensive reforms in tax policy and administration are also critical to boosting revenues in order to fund essential public services. ADB is fully committed to supporting Pakistan’s sustainable development.”

The ADB further noted that in FY22, industrial growth is forecast to decelerate, reflecting fiscal and monetary tightening together with significant depreciation of the local currency, and upward adjustments to domestic oil and electricity prices.

Meanwhile, agriculture is expected to continue lending impetus to GDP growth supported by the government’s package of subsidised inputs and increased support prices of wheat and sugarcane.

The Manilla-based institution further added that inflation declined to 8.9% in FY21 but is expected to pick up in FY22 to around 11% due to higher international energy prices, significant currency depreciation, and elevated global food prices from supply disruptions.

As a net importer of oil and gas, Pakistan will continue experiencing strong inflationary pressures for the remainder of FY22 from the jump in global fuel prices resulting from the Russian invasion of Ukraine.

“Inflationary pressures are likely to be less pronounced in FY23, with inflation forecast to drop to 8.5% as fiscal consolidation progresses and oil and commodity prices stabilize,” the report mentioned.

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In four months, FBR found Rs 800 billion in fraudulent tax refunds.

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Over the last four months, the Federal Board of Revenue (FBR) has discovered a Rs800 billion tax refund scam.

The Inland Revenue and Customs reforms were considered at a review meeting that Prime Minister Shehbaz Sharif convened. During this time, the board allegedly discovered the Rs800 billion tax refund fraud.

According to the conference, there are 83,579 outstanding tax cases totaling Rs3.2 trillion, of which about 63 cases, or Rs44 billion, have been settled as a consequence of various government measures.

In an effort to speed up the resolution of tax issues, the prime minister also ordered the creation of 100 tribunals.

The gathering also featured the identification of around five million new taxpayers, of whom fifteen thousand retailers have enrolled since April 1, 2024.

View more:More than 46,000 traders have signed up for the Tajir Dost Scheme: FBR.

The prime minister has instructed the tax authorities to promptly include the five billion tax evaders in the tax system and has placed a strong emphasis on working with merchants to improve system efficiency.

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PM Gives FBR Instructions To Speed Up Digitization Work: An investigation revealed a Rs. 800 billion tax refund scam.

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Noting favorable results of FBR’s digitization efforts, Prime Minister Shehbaz Sharif revealed an 800 billion rupee tax refund scam discovered in the last four months.

Shehbaz Sharif stressed improving the tax refund system further while presiding over an important meeting on FBR reforms and digitization in Islamabad.

Regretting the delays in putting various reform programs into action, he emphasized that FBR changes had the potential to increase income.

There is a total of 3.2 trillion rupees worth of ongoing tax cases in various courts and tribunals, according to the briefing given to the conference. With 63 lawsuits worth 44 billion rupees resolved in the last four months, the current government has taken action to resolve these outstanding matters.

The prime minister has directed that efforts be made to attract as many of the 4.9 million potential taxpayers who are wealthy into the tax system as possible without putting undue strain on the impoverished.

Fifty thousand merchants have enrolled so far for the mobile phone retailer registration effort, which began in April.

He also emphasized the necessity for a consolidated approach for continuing reform initiatives and the complete digitization of FBR’s fraud detection and investigation department.

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Mining in Balochistan: Mari Pvt Ltd Secures Exploration License

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Licenses for mineral prospecting in the Chagai District of Balochistan have been obtained by Mari Mining Company Private Limited.

501 square kilometers and 513 square kilometers, respectively, are covered by the licenses that the Directorate General Mines and Minerals Balochistan awarded.

Mari Petroleum Company Limited has formed Mari Mining Company as a subsidiary. Major player in Pakistan’s natural gas sector, Mari Petroleum manages the country’s largest gas deposits in Sindh’s Dakhri Gas Field.

With a success record of 70%, which is much greater than many of its peers both domestically and internationally, Mari Petroleum is a major oil and gas exploration and production business.

Because of the efforts of organizations like the International Monetary Fund, Balochistan, a region rich in minerals and natural resources, is developing quickly.

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