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Pakistan Economy & Development

Discussion in 'South Asia & SAARC' started by BlueOval, Jul 27, 2010.

  1. layman

    layman Aurignacian STAR MEMBER

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    Pakistan’s stock market closes at all-time high

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    KARACHI: Pakistani stocks continued their upward trend, breaking through their all time high record on Wednesday. The market gained 263.72 points on the back of heavy trading witnessed in the banking and oil and gas sectors.

    The benchmark 100 index of the Karachi Stock Exchange gained 1.16 per cent, closing at a record 22984.94 points. Record activity was witnessed on the local bourse as volumes reached close to a four-year high of Rs18 billion.

    Large cap stocks supported overall activity as foreign inflows increased, evident from the fact that top three stocks made 35 percent of the volume.

    Riding on the back of continued optimism in the market, the oil and gas sector saw heavy gains as investors expected gas prices going up in the future. This, coupled with the government plan to resolve the circular debt issue, bolstered investor optimism in the power sector as well.

    An analyst at Optimus Securities claimed continued foreign investment in the market led to the rise yet again. “Overall liquidity in the market aided the optimism of foreign investors,” he said.

    The pro-business administration of Prime Minister Nawaz Sharif has recently concluded various large investment deals with neighbouring China as well as a loan agreement with the International Monetary Fund, calming investors worried about the crippling economy, the analyst said.

    The biggest gainers of the day were in the oil and gas sector as the stock prices of PSO, Attock Refinery and Pak Petroleum went up by 5 per cent, 5 per cent and 2.7 per cent respectively due to aggressive institutional buying.

    Commercial banks consolidated their earlier gains as National Bank rose to a price of 50.47 up by 3.7 per cent while Muslim Commercial Bank also rose by Rs 1.51.

    The construction and materials sector shed prices after having risen in the past week, with Fauji Cement and Maple leaf cement both slightly losing on earlier gains after having traded a volume of over 10 million.

    Out of a total of 391 stocks up for trade, the losers, 180 of them, exceeded the 156 gainers. The total traded volume dipped to 338m, lower than Tuesday’s level of 351m.

    The rupee ended weaker at 100.01/100.06 against the dollar, compared to Tuesday's close of 99.98/100.03.

    Overnight rates in the money market remained flat at 9 per cent.
     
  2. layman

    layman Aurignacian STAR MEMBER

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    Pakistan stocks end higher, rupee steady, o/n rate fall

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    KARACHI: Pakistan's main stock exchange closed higher on Tuesday, buoyed by interest in telecommunications shares.

    The benchmark 100-share index of the Karachi Stock Exchange rose 0.11 per cent or 25.46 points to 23,683.27.

    Pakistan Telecommunication Co Ltd rose 4.44 per cent to 27.99 rupees while Faysal Bank Ltd was down 2.24 per cent at 12.20 rupees.

    The rupee ended steady at 100.66/100.70 against the dollar, compared to Monday's close of 100.67/100.72.

    Overnight rates on the money market fell to 7.50 per cent from Monday's close of 8.50 per cent.
     
  3. layman

    layman Aurignacian STAR MEMBER

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    Fall of rupee alarms govt

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    KARACHI: The fast devaluation of local currency against the US dollar forced finance minister to hold meeting with currency dealers and to discuss the situation with the State Bank Governor on Friday.

    While the minister, Ishaq Dar, expressed concern over rising spread between Inter-bank and Kerb market rates recently, currency dealers demanded immediate ban on gold imports that siphoned off dollars from the open market.

    The meeting was held at the State Bank in the presence of the Governor of State Bank to develop a strategy to deal with the fluid situation of the exchange rate regime.

    Gold imports increased by 500 per cent since February this year. Most of this gold is smuggled to India which has increased import duty on gold. Pakistan has no duty on gold imports.

    Since banks do not provide dollars for gold imports, importers buy dollars from the open market.

    “In February, gold import was 280 kg per month which is now 1400 kg per month,” said Malik Bostan, Chairman, Exchange Companies Association of Pakistan (ECAP).

    This high import increased the dollar demand from $20 million per day to $40 million per day while the size of the market is estimated around $20m.

    The minister discussed the matter with the State Bank, but no decision was taken on Friday.

    Another meeting with the representatives of exchange companies is scheduled with the governor, State Bank on Saturday.

    The government and the State Bank came under fire over steep fall of local currency against the international currencies, including the US dollar.

    In the first 50 days of the government, rupee lost 4.5pc in the open market and 2.4pc in inter-bank against the US dollar.

    The dollar price in the open and inter-bank market developed a gap of over Rs3 per dollar which threatened inflow of remittances through banking channels while reviving the illegal channels, like Hundi and Hawala system.

    During the meeting, exchange companies showed their apprehensions over the recently issued circular by the State Bank which put tough conditions on dollar transactions. Bostan said the condition that each buyer of $10,000 requires NTN number would simply encourage people to deal with the people doing illegal trading of currencies.

    “For all sale and outward transactions of $10,000 or above (or equivalent), National Tax Number (NTN) of the customer will be obtained by the exchange company which will be mentioned on the transaction receipt along with CNIC/Identification Number of the customer,” said the SBP circular issued on July 23.

    “The finance minister at the outset expressed his appreciation of the positive role played by exchange companies in the past for the country and hoped that they would once again remain conscious of their responsibilities in stabilising the exchange rate in support of Pakistan’s economy,” said a press release issued by the State Bank on Friday.

    The exchange rate remained erratic in both the markets while the dollar was traded at different rates at different places.

    However, inter-bank market seems to have lost patience as it traded dollar as high as Rs101.30. This was the highest price of the greenback in this market so far.
     
  4. layman

    layman Aurignacian STAR MEMBER

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    Govt intervenes to stabilise market

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    KARACHI: Gold importers disappeared from the currency market which suddenly reduced the dollar price gap in open and inter bank markets to Re1 from Rs3.5 per dollar on Tuesday.

    Informed currency dealers said that importers spent $500 million in July to import gold, causing a serious dent to country’s weak dollar reserves.

    Dealers said that the government’s decision to put a temporary ban on gold for one month would surely help stabilise exchange rate in favour of local currency and lift pressure on the open market.

    The ministry of finance had started searching the importers data from Saturday which cautioned the gold importers and they left dollar buying. The ban and official activity to find responsible for this unwanted situation impacted positively in the first two days of trading. The difference in dollar prices of the two markets shrunk to Re1 from a peak of Rs3.5 per dollar just few days back.

    However, the decline in the dollar spread was a 2-way act, the dollar fell in the open market but swelled in the inter-bank market.

    The gold-related dollar price hike jolted the local currency market during a couple of months as serious lost of balance in demand and supply created panic in the market.

    After increase in import duty on gold by India to cut its widening current account deficit, gold from Pakistan started moving in the Indian market through smuggling. The illegal business is highly lucrative for the gold smugglers through Pakistan as the import duty on gold is almost zero in the country.

    “We were confirmed by the ministry of finance that import of gold has been banned for a month and that the gold in import in pipeline will be cleared on Tuesday,” said Malik Bostan, Chairman Exchange Companies of Pakistan.

    He said the dollar was traded at Rs102.80 on Tuesday and it was a clear indication that the gold importers are out of currency market.

    The gold importers, who are not provided dollars from banks, used to buy dollars from open market for import of gold. The gold import suddenly increased in Pakistan when India started increasing its import duty on gold up from 6 per cent to 8pc in this month. Smugglers found a lucrative channel to feed Indian market through Pakistan as there is no import duty on gold.

    The gold import jumped from 280kg in February to 1400kg in July. The gold importers siphoned off dollars from open market and the $20 million market was facing a demand of $40m dollar per day. The demand inflated the dollar price and the local currency lost 4.5pc against US dollar in open market and 2.4pc in inter-bank in just 50 days.

    The gap in dollar prices widened to Rs3.5 per dollar. Finance minister, State Bank and currency dealers held a meeting on Friday to stop this strange enemy, the gold, from destroying the already weakening exchange rate regime.

    “Officially $500m gold was imported in 26 days of July but what was imported illegally would be more,” said Bostan.

    The country is facing a grave problem of dollar reserves which kept the exchange rate under pressure at least for last 16 month. The inter-bank market is now started showing pressure as the dollar further appreciated and traded at Rs102 with slight fluctuations on Tuesday. It also helped to narrow the dollar price gap.
     
  5. layman

    layman Aurignacian STAR MEMBER

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    Rs138bn fresh notes issued

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    KARACHI: The State Bank issued Rs138 billion fresh currency notes on public demand during the month of Ramazan, but the target could not be achieved owing to delay in supply.

    Failing to secure fresh notes from bank branches, people turned to open market, hence brisk trading of new currency notes was witnessed throughout the month.

    The State Bank on Wednesday said it had issued fresh currency notes worth Rs138.76bn for general public during Ramazan and the amount was much higher than the previous year.

    The State Bank traditionally issues fresh currency notes each year in Ramazan and the amount is rising every year. However, banks delay supply of fresh notes that become available after 10 to 15 days of Ramazan.

    It mounts demand and many customers have to be turned away because of limited supply.

    “It is intriguing that bank branches complain of limited supply while fresh currency notes were traded openly in market few hundred yards away from the State Bank,” commented an account holder.

    The currency market is in close vicinity of head offices of commercial banks in Karachi.

    At a National Bank branch, customers requests for new notes were declined on the pretext that the head office or the main office has yet not supplied notes.

    The situation was comparatively better at United Bank branches. At other banks, notes were supplied but on a limited scale.

    The State Bank said it has issued fresh currency notes of Rs10 and Rs100 denominations double than last year.

    The high demand was noted for Rs100 denomination notes. The SBP did not provide figures of the amount of Rs100 denomination.

    However, the SBP said compared to last year the amount of fresh currency notes was significantly higher.

    Last year the SBP issued notes worth Rs114bn and this year Rs138bn.

    “The SBP fully utilized the large network of over 10,000 branches of commercial banks for distribution of fresh currency notes to the general public during the holy month of Ramazan,” said the SBP in a press release.
     
  6. layman

    layman Aurignacian STAR MEMBER

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    Services export up 31pc

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    ISLAMABAD: Export of services recorded a robust growth of 31.46 per cent during the outgoing fiscal year (2012-13) from a year ago.

    The growth in export of services was mainly driven by substantial increase in exports of government services, suggested data compiled by the Pakistan Bureau of Statistics.

    In absolute terms, export of services rose to $6.618 billion in July-June period of 2012-13 compared with $5.035bn in the corresponding period last year.

    The services sector has emerged the main driver of economic growth. The share of the services sector has increased from 56pc of GDP in GDP in 2005-06 to 57.7pc in 2012-13.

    The growth in exports of services was largely driven by increase in remittances received by foreign missions in Pakistan, increase in receipts through international bodies, increase in earnings of Pakistan diplomatic mission abroad and in other government services.

    Other services, export of which witnessed increase include—communication services, computer and information services, other business services, personal, culture and recreation services.

    On a monthly basis, export of services witnessed a growth of 8.55pc in June 2013 over the corresponding month of last year. This reflects that export of services rebounded after witnessing a slight negative growth in the past couple of months.

    Export proceeds from services sector stood at $4.949bn in 2011-12 as against $5.767bn over the preceding year. Services sector contributes over 57.7pc to GDP. Major sub-sectors are finance and insurance, transport and storage, wholesale and retail trade, public administration and defence.

    Pakistan has opened up its banking, insurance, telecommunications, retail and some other sectors to the foreign service providers.

    Import of services dropped 5.70pc to $7.758bn in July-June period this fiscal year as against $8.227bn in the same period last year. On a monthly basis, import of services witnessed a decline by 31.51pc in June 2013 over the corresponding month last year.

    Services import, which decreased include transportation, travel, communications, insurance services, financial services, computer and information services and other business services during the months under review over last year.

    In 2011-12, import of services was up by 3.30pc to $7.962bn as against $7.707bn over the previous year.

    As a result of increase in exports and decline in imports, trade deficit in services also narrowed down by 64.31pc to $1.139 bn in July-June period this fiscal year from $3.192bn in the corresponding period of last year.

    On monthly basis, deficit in services witnessed a decrease of 72.19pc to $118.65 million in June 2013 as against $426.66m over the corresponding month last year.
     
  7. layman

    layman Aurignacian STAR MEMBER

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    Pakistan’s debt reaches new heights: Minister of Finance

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    ISLAMABAD: The National Assembly on Friday was informed that the previous government borrowed a staggering Rs8,136 billion, with no traceability. Minister of State for Privatisation informed the assembly that an investigation was being carried out regarding the previous government’s borrowing and spending.

    Dastagir added that a total of Rs6,044 billion was borrowed in total by all of Pakistan’s governments preceding the last government.

    According to the Ministry of Finance, the previous government borrowed international loans amounting to $2.057billion during the past two years.

    Out of this, the majority, amounting to a total of $1.9 billion was borrowed from China.

    Chaudhry Nisar stated that in the last 5 years 67,522 prohibited arms licenses were issued, whereas 119,667 non-prohibited arms licenses were issued.

    Ishaq Dar, the Finance Minister of Pakistan, told the assembly that the government had earned revenues worth Rs 1.46 billion in June alone due to the one per cent increase in General sales tax (GST).

    The Telecommunication Company, Etisalat, still had to pay $800 million to the government, according to the federal finance minister.

    He added that for this reason PTCL did not transfer 131 of its properties to Etisalat.

    In other related news, opposition party, Muttahida Qaumi Movement (MQM), protested against the absence Pakistan Muslim League-Nawaz (PML-N) lawmakers from the National Assembly session, prompting the National Assembly speaker Ayaz Sadiq to comment on the non-serious attitude of the government.

    The National Assembly speaker pointed out the uselessness of assembly sessions in the absence of government members.

    Chief whip of the PML-N, Sheikh Aftab, apologised for the absence of his colleagues at the NA session and said that he would speak to Prime Minister Nawaz Sharif regarding the issue.

    Moreover the NA secretariat issued notifications for the formation of 34 standing committees in the assembly. The period for the current NA session was also extended for a week.
     
  8. layman

    layman Aurignacian STAR MEMBER

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    Pakistan repays $393m to IMF

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    KARACHI: Pakistan paid the 19th instalment on Monday under IMF Standby Agreement facility amounting to SDR 258 million (equivalent to $393m), the State Bank said.

    With this repayment, the country has so far repaid SDRs 3.319bn ($5.055bn) since Jul 2011. SDRs 2.835bn ($ 4.311bn) has been paid under SBA facility.

    The SBP said the remaining amount due under IMF-SBA until Sept 2015 is SDRs 2.101bn.
     
  9. layman

    layman Aurignacian STAR MEMBER

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    Pakistan inflation rises to 8.55 per cent

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    ISLAMABAD: Inflation in Pakistan increased to 8.55 per cent year-on-year in August from 8.3 percent recorded a month earlier, according to figures released by the Pakistan Bureau of Statistics on Monday.

    In July, prices jumped from 5.8 percent reported a month earlier due to higher food prices associated with shopping habits during the holy Muslim month of Ramazan.
     
  10. layman

    layman Aurignacian STAR MEMBER

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    Revenue collection up 20pc in July-Aug

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    ISLAMABAD: The tax authorities reported over 20 per cent growth in revenue collection during the first two months (July-August) of this fiscal year.

    The rising trend in collection is the outcome of new revenue measures including raising of general sales tax rate from 16pc to 17pc, reviving hopes that the Federal Board of Revenue will meet its target for 2013-14.

    The provisional revenue collection reached Rs278 billion in July-August 2013 from Rs230bn collected in the same period last year, reflecting an increase of 20.86pc.

    The government has projected Rs2,475bn revenue collection target for 2013-14 as against the collection of Rs1,936bn in the outgoing fiscal year 2012-13, an increase of 27.84pc.

    The government has imposed Rs210bn worth of new taxation measures in the budget to achieve the target.

    The FBR witnessed over Rs445bn shortfall in revenue collection in the last fiscal year.

    The collection under the head of Inland Revenue Service (IRS) — income tax, sales tax and federal excise duty — witnessed a growth of 24.75pc as it reached Rs246bn in July-Aug period this year from Rs197.79bn over the corresponding months of last year.

    On the other hand, customs collection witnessed no growth during the first two months 2013-14 because of depreciation of the rupee and drop in dutiable imports.

    As a result, customs collections in July-Aug stood at Rs32bn this year as against Rs32.821bn collected in the same months last year.

    A senior official told Dawn on Tuesday that the revenue collection may go up because of finalisation of the revenue figures in the next few days.

    FBR was expecting increased revenue from two policy measures of the present government — upward price adjustments in petroleum products, electricity tariffs etc.

    These will jack up the inflation in the country, which will cross the double digit in the next few months. The increase in inflation as well as petroleum products prices will yield additional revenue for the government exchequer.
     
  11. layman

    layman Aurignacian STAR MEMBER

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    Re: Pakistan Economy & development !!

    Pakistan facing serious economic challenges: International Monetary Fund

    Washington: Pakistan is facing 'serious economic challenges' and it needs to carry out a set of comprehensive economic reforms, the International Monetary Fund said hours after it approved financial assistance of USD 6.7 billion to prevent it from a brink of economic collapse.

    "Pakistan is facing serious economic challenges. Overall vulnerabilities and crisis risks are high, with subpar growth and unsustainable fiscal and balance of payments positions," said Nemat Shafik, the IMF Deputy Managing Director and Acting Chair.

    Pakistan's 2013-14 federal budget represents an important initial step towards the needed fiscal consolidation, she said.

    "However to ensure medium-term fiscal sustainability and create fiscal space for social and investment spending, it is important to raise the tax-to-GDP ratio, including by broadening the tax base through a reduction in exemptions and concessions and extending taxation to areas currently not fully covered by the tax net," she said.

    Tax administration overhaul is also required, and provinces should contribute fully to the adjustment effort, she added.

    The IMF official said that monetary and exchange rate policies should be geared to rebuilding external buffers, direct lending to the government should cease and efforts to improve independence of monetary policy need to be stepped up to pave the way for improved price stability.

    Shafik said that risks to the banking sector are manageable, although the undercapitalisation of vulnerable banks needs to be addressed.

    "To achieve sustained and inclusive growth, short-term macroeconomic measures must be complemented by significant structural and governance reforms.

    "The recently announced energy policy will address the long-standing problems in the sector, which constitute the most crucial constraint on growth and have generated large fiscal costs," said Shafik.

    In addition, the trade regime and public sector enterprises needs to be liberalised, she said.

    Noting that protecting the most vulnerable from the direct and indirect impacts of fiscal consolidation and price adjustments is a priority, she said coverage and benefits of these programs should be expanded as savings from tariff adjustments and fiscal space are realised.

    According to IMF, Pakistan's growth trajectory has borne the tolls of both internal security and macroeconomic imbalances, as well as an uncertain global and regional environment.

    These factors, along with the country's longstanding structural problems, mainly in the energy sector, have kept growth below the level needed to reduce poverty and absorb the growing labour force, it said.

    Power outages, resulting from many years of financial and governance problems and averaging about 8-10 hours a day, together with devastating floods and a difficult security situation have contributed to the anaemic growth, it noted.

    GDP growth has averaged only three per cent over the past five years.

    Private domestic investment has dropped from 14 per cent of GDP in 2007-08 to around 11 per cent in 2012-13 due to a difficult business climate.

    With capital flows virtually drying up, central bank reserves have declined to critical levels, falling by some 45 per cent in the past year alone.

    As of end June 2013, reserves stood at USD 6 billion.

    Much effort is needed to boost confidence in order to attract foreign direct investment in line with Pakistan's long-term growth potential, the IMF said.

    The new Pak Government has put in place an ambitious economic reform program aimed at reversing the current large fiscal deficits, fostering inclusive growth and addressing short and medium term problems.

    They have already implemented key measures to ensure a strong start, including fiscal consolidation measures totalling two per cent of GDP, adjusting electricity tariffs as part of a new comprehensive energy policy, reorienting monetary policy to rebuild foreign exchange reserves, in addition to reducing inflation, and launching a decisive tax enforcement program.

    These measures are expected to reduce the budget deficit to sustainable levels, reduce crowding-out of private investment, and containing inflation over the medium-term, the IMF said.
     
  12. layman

    layman Aurignacian STAR MEMBER

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    IMF warns Pakistan of worse economic growth in coming days

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    ISLAMABAD: The International Monetary Fund warned Pakistan Thursday that economic growth could be worse than expected next year due to strict austerity measures built into a $6.7 billion rescue loan.

    Pakistan is in the grip of its worst energy crisis in modern history which causes power outages up to 20 hours in parts of the country and has hammered industrial output.

    During the last five years, GDP has averaged only three percent, far short of the seven percent considered necessary to lift the country out of poverty and fully absorb the growing labour force.

    Central bank reserves have fallen to $6 billion, down from $14.78 billion in fiscal year 2010-11 and are enough only to cover imports for one and a half months.

    On September 5, the IMF agreed to extend Pakistan a three-year $6.7 billion loan, making an initial disbursement of $540 million available to the authorities.

    The loan is aimed at reducing Pakistan's fiscal deficit – which neared nine percent of gross domestic product last year -- to a more sustainable level and reform the energy sector to help resolve severe power cuts that have sapped growth potential.

    But future disbursements are dependent on the completion of tough economic reforms measured at quarterly reviews.

    In Pakistan, a country of 180 million people, only around 250,000 people pay income tax and agriculture, which still accounts for 50 percent of the economy, is largely exempt.

    To repair the economy, Prime Minister Nawaz Sharif has promised to widen the tax base, improve the image of paying taxes and limit corruption.

    The IMF said his budget for the fiscal year to June 30, 2014 “represents an important initial step” but cautioned that “a more efficient and equitable tax system is needed”.

    Austerity will also push down growth. Before Thursday, the IMF predicted growth of 3.5 percent of GDP but has revised that down to 2.5 percent if the necessary reforms are implemented.

    In announcing the loan, the IMF said Pakistan's adherence to the programme would likely encourage financial support from other donors.

    The Asian Development Bank has this week announced that it will invest $245 million in Pakistan's power distribution systems.—AFP

    Reuters adds: “Economic performance in Pakistan has been substandard in recent years,” the IMF said. “Executive directors noted that Pakistan's economic vulnerabilities and crisis risks are high, with subpar growth and unsustainable fiscal and balance of payments positions.”
     
  13. The Drdo Guy

    The Drdo Guy Captain SENIOR MEMBER

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    A republic country with zamindari system still prevailing.IMF refused to give loans few months back and warned pakistan to take essential steps to improve economy and yet they are investing in making nukes.
     
  14. layman

    layman Aurignacian STAR MEMBER

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    IMF asks govt to introduce VAT in toto

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    ISLAMABAD: The International Monetary Fund has asked Pakistan to introduce a full-fledged value-added tax (VAT), saying it “remains the first best option to raise tax revenue”.

    “Pakistan’s tax-to-GDP (gross domestic product) ratio for 2012-13 was 9.7 per cent -- significantly less than 11.4pc of GDP in 2002-03. So fiscal consolidation will have to rely heavily on tax policy changes to broadening of tax base,” the IMF said in its report on policy discussions with Pakistan’s economic team.

    The introduction of an integrated VAT in 2009-10 was resisted by major political parties, including the PML-N and the PPP, because of opposition from industrial and commercial lobbies. It led to half-way termination of $11.3 billion standby arrangement by the IMF.

    Given the highly politicised nomenclature of VAT, the government, however, gave a commitment to the lending agency that it would take measures through tax policy decisions and move the existing general sales tax (GST) regime to a full-fledged integrated “VAT-style” modern indirect tax system.

    “These steps will facilitate gradually moving the GST to a full-fledged integrated modern indirect tax system with a few exemptions and to an integrated income tax by 2016-17,” Finance Minister Ishaq Dar committed to the IMF in writing.

    The IMF agreed that if VAT “remains politically unfeasible, other permanent tax policy measures could be considered to come closer to it by wholesale reductions in exemptions and concessions, by fully incorporating services into the tax net”.

    The agreement, however, has a caveat. The two sides agreed that if policy adjustments failed to achieve quantitative benchmarks, including those relating to reducing fiscal deficit to 5.8pc of GDP, the government would advance policy measures like tax expansion, subsidy reductions and expenditure controls in the current fiscal year which were originally planned for the next two fiscal years. This includes a further increase in energy prices, over and above those envisaged for the current year, and more withdrawals of tax exemptions.

    The government committed that besides these initiatives to widen the tax base, it would finalise a comprehensive plan to separate the existing statutory regulatory orders either by eliminating those granting exemptions or concessions through SROs by the end of this year.

    “We will introduce the remaining (measures) in the 2014-15 finance bill,” the government said, adding that it had already stopped issuing any new tax concessions or exemptions, including customs tariff through SRO, except those protected by an act of parliament, and would also approve by the end of December 2015 legislation to permanently prohibit this practice.

    The IMF insisted that continuation of the practice would lead to further degradation of the tax net. It advised that income tax should integrate income from all sources by eliminating concessions and exceptions. The IMF also advised that withholding tax be adjusted with the minimum tax on turnover remaining as a control for deductions.

    On the income tax side, the authorities will focus on 300,000 potential taxpayers through the national data warehouse. In addition to the 100,000 notifications for late return filing under section 114 envisaged for the fiscal year 2013-14, the authorities will pursue additional 100,000 in each of the following two years.

    If taxpayers fail to respond satisfactorily, these notifications will be followed by provisional assessment of income tax under section 122 which will become final if the taxpayers again fail to respond satisfactorily.

    More Info
     
  15. layman

    layman Aurignacian STAR MEMBER

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    Non-textile exports rise

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    ISLAMABAD: Export of non-textile products witnessed a growth of 8.399 per cent in the first quarter of this fiscal year from a year ago.

    The increase in exports from these sectors was mainly driven by surge in export of petroleum products, sports goods, leather products and molasses during the period under review, suggested data compiled by the commerce ministry.

    In absolute terms, the export of non-textile products reached to $3.136 billion in July-Sept 2013-14 as against $2.893 billion in the corresponding period last year.

    Analysis of data showed a massive growth in export of petroleum products to $520.495 million in the quarter under review against $0.287 million the same period last year. Naphtha led the growth in the petroleum sector export.

    The export of sports goods registered 8.20 per cent growth during the quarter over the same period last year. Foreign sales of footballs jumped 9.08pc and gloves by 29.60pc.

    The surge in export of footballs is an encouraging sign because it has been witnessing a negative growth for the last few years.

    The export of tanned leather witnessed a growth of 15.94pc.

    Leather products export also witnessed a growth of 10.25pc over the last year. The export of leather garments rose 14.11 per cent during the quarter under review.

    Exports of cement showed a growth of 1.86pc and furniture 6.45pc during the period under review.

    Similarly, export of footwear witnessed a growth of 21.45pc in July-Sept 2013 over the last year. This growth was mainly driven by 29.79pc growth in exports of leather footwear.

    The export of surgical goods and medical instruments witnessed a growth of 7.22pc and engineering goods 54.21pc during the period under review over the last year.

    Contrary to these positive developments, the export of carpets in July-Sept this year witnessed a negative growth of 3.75pc over the previous year. Export of gur declined by 45.34pc, jewellery 83.61pc and handicrafts 100pc during the period under review over the last year.

    Pakistan’s traditional products export has witnessed substantial decline in the last fiscal years owing to many factors including the high energy cost, low demands from the emerging leading markets because of recession.

    Similarly, the official said that these products were also facing stiff competition from China and India on the international market as well.

    However, the export of meat, oil, spices, tobacco, pulses, vegetables, fruits and fish has witnessed an increase while the other declined during the first three months of the current fiscal year.

    In the agriculture sector, the rice exports witnessed a growth of over 10.84pc in July-Sept period this year over the last year.

    This growth was mainly driven by non-basmati rice exports. Export of basmati rice witnessed a decline of 11.15pc during the period under review.


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