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Forex dealers would be brought under tax net, Gen Asim Munir assures businessmen

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1 year ago

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  • Business leaders meet COAS at Corps Commander’s Headquarters in Lahore.
  • COAS highlights potential of SIFC to bring foreign investment of $100bn.
  • Reduction in income and sales tax rates on electricity bills proposed.

LAHORE: As the Pakistani rupee lost significant ground against the US dollar, Chief of the Army Staff (COAS) General Asim Munir has said that money exchanges would be brought under the tax net.

He stated this in a meeting with the business community at the Corps Commander’s Headquarters in Lahore on Sunday, reported The News.

Gen Munir assured the businessmen that transparency in dollar exchange and interbank rates would be ensured.

A statement issued here by the Lahore Chamber of Commerce and Industry (LCCI) stated that the association’s president Kashif Anwar, alongside prominent business figures, met the army chief and discussed the economic challenges facing the country.

Interim Punjab Chief Minister Mohsin Naqvi was also present at the meeting.

General Munir highlighted the pivotal role of the Special Investment Facilitation Council (SIFC), emphasising its potential to attract substantial investments of up to $100 billion from countries such as Saudi Arabia, the UAE, Kuwait, and others.

To bolster economic decision-making, he revealed the formation of task forces focused on economic matters and different sectors.

Kashif Anwar, in alignment with the broader business community, recommended active engagement with all chambers to incorporate diverse perspectives into the task force’s agenda.

Addressing critical issues faced by the public, the LCCI chief proposed a reduction in income and sales tax rates on electricity bills. He noted that the populace grapples with the burden of high taxation on electricity, impacting daily lives, businesses and common people.

He recommended a pragmatic approach to fuel adjustment charges, advocating for their collection during the winter months when electricity consumption is lower, alleviating financial stress on consumers.

Recognising the pivotal role of exchange rates in Pakistan’s economic landscape, Kashif Anwar urged for greater control over the rates of the US dollar in both interbank and open markets.

The LCCI president also pointed out that the disparity between the State Bank’s rate and the Hundi rate (illegal money exchange business) often leads to a preference for Hundi channels when it comes to remittances. He emphasised that if these rates were aligned, remittances would naturally flow through the SBP.

Anwar emphasised the importance of an enhanced and sustained interactive dialogue between the business community and relevant authorities. He expressed concerns over the prevailing lack of responsiveness to suggestions put forth by the business sector.

Furthermore, Anwar called for a unified commitment from political parties, suggesting the signing of a charter of economy as a precondition before any upcoming elections.

Expanding on the army chief’s earlier remarks regarding the existence of a grey economy, accounting for two to three times of the overall documented economy, he proposed an innovative approach. He recommended incentivising the grey economy sector to transition into the formal, white economy, offering a strategic solution to combat this pervasive issue.

The LCCI chief said that the expansion of the tax base will remain elusive as long as the grey economy remains unincorporated, unable to contribute to the formal white economy.

This gathering exemplified the shared dedication of both the business community and the military leadership to work collaboratively in addressing pressing economic challenges and propelling the nation toward growth.

As Pakistan continues to navigate economic complexities, this constructive dialogue signifies a promising step towards finding practical solutions and fostering economic prosperity for the nation.

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Petrol prices are expected to experience another increase in Pakistan.

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22 hours ago

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The inflation-affected nation is expected to encounter another increase in petrol prices, with recommendations indicating a rise of Rs. 2.58 per litre for petrol and Rs. 5.91 per litre for high-speed diesel.

Sources indicate that, if sanctioned, petrol prices will ascend to Rs. 250.96 per litre, whereas high-speed diesel will be priced at Rs. 261.05 per litre.

Sources indicated that the suggested increase is due to the elevated premium on petroleum products in the worldwide market and rising import expenses.

The premium on imported petroleum products has increased, leading the government to contemplate pricing modifications effective November 16, sources indicated.

On October 31, the federal government published the prices of petroleum products for the upcoming fortnight, increasing the prices of petrol and high-speed diesel.

A notification announced an increase in petrol price by Rs 1.35, raising it to Rs 248.38 a litre. The price of high-speed diesel was fixed at Rs 255.14 per litre after an increase of Rs 3.85.

Also read: Pakistan’s weekly inflation jumps to 15.02pc

Simultaneously, the costs of light diesel and kerosene oil were reduced. The statement states that kerosene oil is priced at Rs 148.5 per litre following a reduction of Rs 4.92.

The cost of light fuel was reduced by Rs 2.61 to Rs 147.51 per litre.

The rampant hike in the prices came at the time when the weekly inflation, measured by the Sensitive Price Indicator (SPI), witnessed an increase of 0.28 percent for the combined consumption groups during the week ended on October 17, the Pakistan Bureau of Statistics (PBS) reported.

According to the PBS data, the SPI for the week under review in the above-mentioned group was recorded at 319.79 points as compared to 318.91 points during the past week.

In comparison to the same week last year, the SPI for the combined consumption group during the reviewed week experienced a 15.02 percent increase.

The weekly SPI with the base year 2015-16 =100 covers 17 urban centres and 51 essential items for all expenditure groups.

Likewise, SPI for the lowest consumption group of up to Rs 17,732 witnessed increase of 0.27 percent and went up to 313.74 points from last week’s 312.91 points.

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PIA Privatization Is Referred to the Cabinet Committee by the Privatization Commission Board Meeting

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22 hours ago

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The privatization of Pakistan International Airlines has been referred to a cabinet committee by the Privatization Commission Board.

Aleem Khan, the Federal Minister for Privatization and Communications, presided over the board meeting, which examined and accepted proposals on a number of topics, including the privatization of Pia.

The government would move forward with privatization in line with the law and in Pakistan’s best interests, Federal Minister Aleem Khan reaffirmed.

He added that the entire privatization process for the PITA and other state agencies would be expedited and simplified.

Following prequalification, the Privatization Commission is unable to remove any department or institution from Privatization, as was decided during the meeting.

Additionally, the Federal Minister directed that the pre-qualifying conditions and privatization be made more profitable.

Members of the Privatization Commission will be included in the Privatization Process through a three-member committee.

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Gas production from the Dera Bugti well commences at 5 MMSCFD.

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23 hours ago

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Dera Bugti, Balochistan is home to a freshly drilled well that the Oil and Gas Development Company Limited (OGDCL) has started producing gas from.

The natural gas output of Pakistan has been significantly boosted by this breakthrough.

A letter sent by OGDCL to the Pakistan Stock Exchange states that the well is generating five million standard cubic feet of gas each day, which is quite an astounding amount.

The Uch Gas Processing Plant has been effectively connected with the gas output, which will help distribute and streamline the increased gas supply. The Dera Bugti well is fully owned by OGDCL, the biggest exploration and production company in the country, as stated in its letter to the PSX.

In response to a decline in power demand, Pakistan opted to divert its imports of liquefied natural gas (LNG) to local users on November 12th.

This article also discusses Pakistan’s decision to use imported LNG for domestic use.

The Ministry of Petroleum has estimated that an amount of Rs163 billion will be necessary to fund the supply of LNG to households in the country. According to sources, the pressure on pipelines is continuously increasing due to the imported LNG.

Confirmation from reliable sources indicates that 600 MMcfd of LNG has been consumed by the power industry. Since captive power facilities are being shut down, there will be an excess of 150MMcfd of LNG, and the gas industry is also making 400 billion rupees from captive electricity.

To solve the problem of circular debt, the government intends to raise gas pricing and do away with the tariff differential between domestic gas and LNG imports.

There is a current tariff of Rs1,550 per MMcfd on domestic gas and Rs3,500 per MMcfd on imported LNG. The government hopes to earn Rs200 billion by removing this tariff difference. As a part of the larger strategy to raise government revenue, the tariff for fertiliser firms will also be hiked.

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