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No rise in taxes on non-filers’ cash withdrawals: PM directives

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The Federal Board of Revenue (FBR) has revealed that Prime Minister Shehbaz Sharif has rejected a plan to raise the tax on cash withdrawals from banks for non-filers in the run-up to the 2024–25 budget.

For bank withdrawals exceeding Rs50,000 made by non-filers, the idea was to increase the tax rate to 0.9%.

On bank withdrawals over this amount, non-filers are now charged a 0.6% withholding tax. Projected to bring in Rs20 billion from non-filers, the proposed hike was part of a larger plan to raise more money. In light of the possible financial hardship on non-filers, the prime minister chose not to approve the hike.

FBR officials noted the government’s position on preserving the current tax structure for these transactions, saying, “Prime Minister Shehbaz Sharif has rejected the proposal to increase the tax on cash transactions for non-filers.”

Since this decision affects the ongoing debates about fiscal policy and economic reforms, FBR officials have been required to inform the Finance Ministry in accordance with the PM’s directive.

The first suggestions for raising government employee pay have been made public by the Ministry of Finance. Although the PM will make the final decision after consulting with the Finance Ministry and the cabinet, sources within the ministry estimate a potential 15% to 20% pay increase for federal employees.

A significant recommendation is to raise the officials’ compensation policy. A suggested raise of Rs65,000 to Rs105,000 has been made for officers up to grade 20. The suggested salary increase for grade 21 officers is Rs120,000, up from Rs75,000. There could be a pay hike for grade 22 officers from Rs95,000 to Rs155,000.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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