Business

SIFC approves FBR overhaul, subsidy phase-out

Published

4 months ago

Farwa

Special committee formed on FBR restructuring.
PRAL restructuring with Nadra also gets a green light.
CMs asked to launch crackdown against fertilizer hoarding.

ISLAMABAD: The Special Investment Facilitation Council (SIFC) jointly run by the civilian and military top brass has approved a plan for the FBR, PRAL restructuring with the Nadra and the introduction of a simplified scheme for retailers within a 15-day period.

The SIFC’s Apex Committee also considered a proposal of the Finance Division and granted its assent that the federal government may stop subsidy on fertilizer, agriculture tube-wells and expenditure on provincial public sector universities from the next financial year (FY) 2024-25. The committee met under the chairmanship of Prime Minister Anwaarul Haq Kakar recently and top official sources disclosed that Minister of Finance Dr Shamshad Akhtar 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.

It has been decided that 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 which will be nominated based on 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 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 existing allocation of resources of the FBR. The Governor SBP advised that the audit function of the FBC and the FBIR would be placed under the Tax Policy Unit (TPU) for ensuring independence.

The Apex Committee in principle approved the proposed implementation of the plan for restructuring the FBR, constituting a special committee led by the Finance minister and including the cabinet secretary, Establishment, the secretary Finance, Law, Revenue and the secretary/chairman FBR which would conduct inter-ministerial consultation as required by the Rules of Business and a summary to the cabinet will be moved within two weeks for approval.

The PRAL restructuring with the Nadra also got a green light to conduct PRAL restructuring and rightsizing with focus on technical HR, Broadening to Tax Base (BTB), IT integration and transformation including data analysts and Artificial Intelligence for BTB and developing of Mathematical Models. The reorganization of the IT Wing will also be done.

Chief of Army Staff Gen Asim Munir has asked the chief ministers and chief secretaries of all provinces to initiate a nationwide crackdown and take strict action against those individuals engaged in hoarding of fertilizers (urea) to sell it at a higher rate to farmers, unethically expanding the dealer margins. He said fertilizer wholesalers and retailers must ensure transparency of operations for facilitating farmers across the country.

Business

Pakistan has amassed $14.5 billion in foreign exchange reserves.

Published

51 mins ago

Farwa

State Bank of Pakistan (SBP) statistics, which was made public on May 3, shows that the country’s foreign exchange reserves increased significantly to $14.45 billion.

A noteworthy increase of $1.11 billion to $9.12 billion was made in the SBP’s reserves.

The foreign exchange reserves that commercial banks possessed also experienced a notable surge, rising by $2.86 billion to $5.33 billion.

As per the State Bank of Pakistan (SBP), Pakistan got the $3 billion standby arrangement last month, including the much-awaited $1.1 billion final tranche from the International Monetary Fund (IMF).

Following the successful conclusion of the second review by the Executive Board of the IMF under Stand-By Arrangement (SBA),” the SBP stated that it had been awarded Special Drawing Rights (SDR) 828 million, or $1.1 billion in value.

SBP reserves for the week ending on May 3, 2024, will show the payout, according to the central bank.

The second review of Pakistan’s Stand-By Arrangement (SBA) was finished by the IMF Executive Board one day earlier, enabling a $3 billion increase in total disbursements under the contract.

According to a statement from the IMF, “the completion of the second and final review reflects the authorities’ stronger policy efforts under the SBA, which have supported the stabilization of the economy and the return of modest growth.”

“Policy and reform efforts by the authorities, including strict adherence to fiscal targets, are necessary to move Pakistan from stabilization to a strong and sustainable recovery,” the statement continued.

Business

In April, worker remittances rose by 27.9 percent year over year.

Published

59 mins ago

Farwa

Based on the central bank’s data, the United Arab Emirates (US$ 542.3 million), the United Kingdom (US$ 403.2 million), Saudi Arabia (US$ 712.0 million), and the United States of America (US$ 329.2 million) were the top four countries from which remittance inflows in April 2024 originated.

The SBP said in a statement that “for the first ten months of the current fiscal year, workers’ remittances increased by 3.5 percent cumulatively, with inflow of US$ 23.8 billion, as compared to the same period last year.”

Previous records show that in March 2024, remittances from overseas workers totaled US$3 billion.

Regarding expansion, remittances rose by 16.4% annually and 31.3 percent monthly during the month under consideration.

Comparing the first nine months of the fiscal year 2023–24 to the same period previous year, an inflow of US$ 21.0 billion in worker remittances was observed, up from US$ 20.8 billion.

Saudi Arabia (US$703.1 million), the United Arab Emirates (US$548.5 million), the United Kingdom (US$461.5 million), and the United States of America (US$372.5 million) were the top sources of workers’ remittance inflows on March 24.

Business

Problem with SIM blocking: FBR to “move” court against Telcos and PTA

Published

1 hour ago

Farwa

Unless telecom operators block the SIMs of 500,000 non-filers by May 15, FBR is reportedly planning legal action against them.

According to sources, the FBR has conferred with its legal counsel in order to challenge telecom providers, such as PTA, in the Islamabad High Court for failing to abide by directives to disable non-filers’ SIM cards.

Sources also stated that the FBR and Ministry of Finance have decided to take legal action against PTA and telecom providers for failing to carry out the directives to block the SIM cards of non-filers even after more than ten days had passed.

Following a nationwide impasse over the barring of recognized non-filers’ mobile SIMs, the Federal Board of Revenue (FBR) and telecom operators took action.

Tight sources on the matter disclosed that, citing operational and technical challenges, the Cellular Mobile Companies declined to disable the SIM cards of 506,000 taxpayers who had been recognized as non-compliant.

Reportedly, telecom providers argued in a statement that executing FBR’s regulations presents legal challenges.

The Federal Board of Revenue (FBR) called for the authorities to disable the SIM cards of over 506,000 identified non-compliant taxpayers nationwide on April 30, issuing a general income tax order. This is important to note.