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

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6 months ago

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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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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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2 days ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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2 days ago

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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2 days ago

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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