Day: December 4, 2021

The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to conduct a special audit into cases of steel melters.

A handout states that the FTO, exercising its own motion powers under section 9(1) of the Federal Tax Ombudsman Ordinance 2000, took cognizance of connivance in gross misuse of sales Tax Special Procedure Rules, 2007 on the steel sector.

This in-house analysis also unearthed specific instances of misuse of powers, negligence, inattention, delay, incompetence, inefficiency, and ineptitude, of FBR officers, in the administration of duties and responsibilities in the cases of steel melters at Lahore, assigned to CTO Lahore.

The FTO’s In-House Analysis report confirmed that glaring instances of organized fiscal fraud are visible in the handling of cases of steel smelters.

Initially, it was found that 881 Exclusion Certificates (ECs) in 39 cases of registered persons (during 2016-19) were issued without ensuring payment of tax in state exchequer rather only against bank Cheques. Thus state Revenue was compromised.

In addition, 347 cheques out of 881 were found missing for clearance besides another 29 cheques were bounced/dishonored. As the total number of steel cases is around 200, therefore, the fate of other unattended cases can be well judged from this sample.

In certain cases, evidence on record proves that in addition to the issuance of ECs, original Cheques were returned to the Registered Persons after the receipt of bribes.

In some cases, cheques submitted by one taxpayer were credited to some others who thus availed ECs without paying any tax. Despite having solid evidence of fraud in 39 cases only in 08 cases FIRs were registered against the culprits, according to the FTO inquiry.

Despite the solid documentary trail thus far, only one formal inquiry has been initiated, and that too is against a UDC. The state of affairs of this inquiry can be judged from the fact that this hushed-up inquiry was initiated by an officer who himself was part of the team, alleged to have issued bogus ECs. Even the alleged official was granted leave from Ex-Pakistan and currently, he is in Dubai.

Thus, for the fraudulent issuance of ECs which is an exclusive domain of Commissioner-IR, the department has held a UDC responsible which is a mockery of internal accountability.

Despite all of the above, the department is portraying the whole scam as a minor procedural lapse, FTO mentioned in its findings.

The FTO directed the FBR to conclude the unending trail of Fact-Finding Inquiries and some formal administrative proceedings, based on the valid observations made by external audit besides an inquiry also be initiated against the officers who have been playing havoc with the state exchequer.

In addition, it also directed the FBR to conduct a Special Audit of all steel cases at Lahore and other stations to gauge the quantum of similar loss at other stations. This audit needs to be assigned to Directorate General I&I-IR so as to ensure an objective and independent exercise.

Source: Pro Pakistani

Saudi Arabia has officially deposited $3 billion in the State Bank of Pakistan (SBP) under its support package agreement which was signed between the two countries almost 2 months ago.

Advisor to the Prime Minister on Finance and Revenue Shaukat Tarin confirmed the development on Twitter that Pakistan’s central bank had officially received $3 billion from Saudi Arabia.

The deposit is anticipated to stabilize the local currency while also bolstering the country’s foreign exchange reserves. The rupee is projected to recover partially, according to market speculations, since the deposit will strengthen market sentiment.

Prior to the Kingdom’s release of funds to Pakistan, it is pertinent to mention that the Middle Eastern nation had agreed to deposit $3 billion in cash in SBP when PM Imran Khan visited the country in October. During deliberations, the Kingdom at that time also agreed to contribute $1.2 billion in oil on a deferred payment basis as part of the agreement.

Source: Pro Pakistani

The federal government aims to start construction on the Greater Karachi Water Supply Project K-IV within 4 months.

The project cost, which was initially Rs. 25 billion, is now said to have exceeded Rs. 100 billion. In this regard, a meeting to review the progress of Greater Karachi Water Supply Project K-IV was held in Islamabad with Federal Minister for Planning Asad Umar in the chair.

Additional Secretary Development Abdul Aziz Uqaili, Project Director Amir Mughal, and Project Consultants Dr. Bashir Lakhani, and senior officials attended the meeting.

Project Director Amir Mughal briefed the meeting about the revised PC-1 of the K-IV project, the project components, and design details. It was informed in the meeting that WAPDA had completed the revised design of 650 MGD K-IV to be executed as phases. The project work was said to commence in 3-4 months, to be completed by October 2023. All planning, design, and procurement activities are as per the project timeline, and the construction of this project will be completed by October 2023.

The project director informed the chair that the design of the K-IV project has been developed with a modular approach, in which 5 pumping stations with 5 large mild steel pipes of 84 inches diameter pipes each carrying 130 MGD with a total capacity of 650 MGD have been planned to be executed.

The chair was informed that WAPDA had submitted PC-1 with a modified design of the 650 MGD K-IV project with various options for execution of the project, which can be done in phases. The project director was advised for ensuring an uninterrupted power supply to operate the pumping stations and to supply water to the proposed reservoirs.

Asad Umar directed the Planning Division to expedite the processing of this Revised PC-1 to get it approved as early as possible from CDWP and ECNEC.

It is worth mentioning that the Executive Committee of the National Economic Council (Ecnec) had approved Rs. 25.551 billion K-IV in 2014 and the prices/cost of the project were based on the rates of 2010.

The federal government had committed to share 50 percent of the cost of the project while the remaining 50 percent is being borne by the provincial government. The project was scheduled to be completed in three years, i.e., 2019. Sources in the planning ministry say that the cost of the project has already exceeded the 2019 revised PC-1, which was estimated at Rs. 75 billion.

Sources suggest that design and site issues, major deviations in quantities, and exchange rate hikes, are the key reasons behind such a huge increase and that the project cost may rise to over Rs. 100 billion.

The Minister expressed satisfaction over the pace of progress and work on the development of revised planning and design of this project which is in line with the Prime Minister’s commitment to ensure water availability to the residents of Karachi in the shortest possible time.

Source: Pro Pakistani

Pakistan’s manpower exports to different countries have shown a downward trend in the past three years, mainly due to the prevailing situation of the Covid-19 pandemic which affected the work situation in different host countries and resulted in a strict ban on traveling.

According to the statistics of the Overseas Employment Bureau, Pakistan’s worker exports stood at 0.625 million in 2019, which decreased to 0.224 million in 2020 and 0.176 million by end of October 2021.

In the last three years, the overall exports of human resources from Pakistan to different countries totaled 1.02 million. The human resource included workers with first-time experience and those who returned to their host countries after spending vacations. The gradual decline in exports of workers has also been witnessed by regional countries such as India and Bangladesh, which are also leading human resource-providing countries to various states. Saudi Arabia, Qatar, Oman, and Kuwait are the leading destinations of Pakistan migrant workers.

The categories of migrant workers include laborers, drivers, technicians, and masons. The origin of Pakistan workers is usually from Dera Ghazi Khan, Sialkot, Swat, Lower Dir, Gujranwala, Lahore, Faisalabad, Mardan, Upper Dir, and Rawalpindi.

The situation of the human resource exports is likely to improve in the coming months with the reopening of business with SOPs and various preventive measures like vaccination, the work opportunities in various host countries are uncertain nonetheless.

Is Exporting 2 Million Workers Possible?

The expectation of Fawad Chaudhry, Minister of Information and Broadcasting is highly ambitious for human resource exports of up to 2 million from Pakistan to different countries in the next two years.

He claimed the over 1 million exports of human resources in the last three years as the success of the government, which is a weird claim. The data of the Overseas Employment Bureau suggested that Pakistan did not export manpower up to 1 million in a single calendar year in history.

The highest ever exports of workers stood at 0.83 million in 2016. Hence, the export of 2 million workers is next to impossible however the possible upsurge in demand of workers could not be ruled out in various host countries with the normalization of business activities.

According to overseas employment promoters, the overall expense including airfare, visa, and various SOPs has surged to an unaffordable level for aspirant workers in Pakistan, who are now looking for easing off conditions related to Covid-19 in the host countries which can also reduce the cost of migration.

Syed Muhammad Javed Zaidi, one of the leading promoters of overseas employment, said the conditions for sending workers to different countries are not conducive right now but it is expected that restrictions related to Covid-19 will be relaxed soon which will increase the country’s export of manpower next year.

Presently, migrant workers receiving financial support from their employees can afford to resume their work in the host countries, he added. He said the exports of manpower can increase with the support of the government which should make efforts to enhance the quota of migrant laborers in different countries mainly in the Gulf States.

Pakistan’s quota of laborer export is less than Bangladesh, India, the Philippines, and different states at present, hence the export potential of manpower has not reached its maximum yet.

Source: Pro Pakistani