Day: April 22, 2024

The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to take action against exporters, who are intentionally misusing unique user identifier (CNICs/ NTNs) of non-exporters under Pakistan Single Window (PSW) and web-based customs clearance system (WeBoc). The Complaint was filed in terms of Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance), against the FBR, PRAL, Directorate General of landl-Customs, M/s Export Express Freight Logistics and M/s Pearl International, Karachi, for filing of fake GDs on his account. Briefly, the complainant stated that he repeatedly reported through calls and emails to FBR, Pakistan Revenue Automation Limited (PRAL) and Customs Intelligence and Investigation regarding fake export GDs filed against his name. However, neither the department provided any written information of persons involved, nor they took any action against those involved in this fraudulent activity. The FTO's order revealed that it is evident that the courie r company has intentionally and knowingly misused the Complainant's NTN. However, the complainant's NTN has been misused and this fact was informed by him to the concerned department and M/s Export and M/s Pearl International, Karachi, but to no avail. The FTO observed that the department has failed to rectify the issue of misuse of Complainant's NTN and the department needs to address and rectify this issues on priority basis where the CNIC and NTN of non-relevant individual is intentionally misused. On the other hand, the non-rectification of Complainant's NTN leads to maladministration on the part of the Department. The FTO has directed the FBR to issue an alert to all the concerned field formations of Customs to identify and rectify on priority basis the intentional misuse of unique user identifier, CNICs and NTNs of the non-relevant taxpayers while filing of GDs by various exporters through PSW/WeBOC within 30 days. The FBR should direct, the Collector of Customs JIAP, Karachi, to black list M/s Expo rt Express Freight Logistics and MIs Pearl International and initiate necessary proceedings by suspending the use of unique user identifier of M/s Export and M/s Pearl International after giving them show cause notice and opportunity of being heard, as per law within 15 days. The concerned Commissioner IRS and Collector, Collectorate of Customs (JIAP) to resolve the Complainant's contention and permit him after rectification of NTN to file his sales tax returns which were affected due to misuse of his CNIC and NTN, FTO order added. Source: Pro Pakistani

The Federal Cabinet has approved multiple Memorandums of Understanding (MoUs) for enhancing cooperation with Iran, particularly in setting up a Worker's Welfare Fund and collaboration in the film industry, high-level sources told ProPakistani. Sources said the Federal Cabinet has approved separate summaries for circulation. President of Iran Ebrahim Raisi will ink these MoUs during his visit to Pakistan this week. One of the MoUs will focus on workforce collaboration and the exchange of skilled manpower between the two countries. Sources said joint efforts will be made to promote the welfare of workers, including the setting up of a Workers Welfare Fund. Both countries will send delegations across the border to develop a basic understanding of various sectors in each country. Regarding agreements on the exchange of films and cooperation in the cinema industry, sources said joint production projects and the exchange of delegations would help gain insights into each other's film industries. Sources added t hat under the proposed MoUs, cultural events such as Film Weeks will be organized in both countries. Source: Pro Pakistani

The Competition Commission of Pakistan (CCP) has granted approval to the share acquisition of a Pakistani food company by four acquirers including a Singapore-based investment holding company. The approved transaction involves the acquisition of a 23.20% shareholding in M/s. Unity Foods Limited by the four acquirers. One of the acquirers is M/s. Wilmar Pakistan Holdings Pte. Limited, a wholly owned subsidiary of M/s. Wilmar International Limited, a Fortune 500 company incorporated in Singapore. The other three acquirers include M/s. Unity Wilmar Agro (Private) Limited, a private limited company incorporated in Pakistan and engaged in the edible oils business, and two individual Pakistani investors who are also the existing shareholders of the target company. CCP's merger analysis revealed that the proposed transaction will not result in the dominance of the acquirers in the relevant market, post-transaction. Therefore, the merger has been authorized. This approval reflects the confidence of international investors in Pakistan's economy and its potential for growth. Wilmar International's investment in Unity Foods reaffirms its commitment to Pakistan's economy, showcasing confidence in the resilience and potential of the country's economic landscape. This merger approval is expected to enhance consumer choice and spur innovation in the food business sector, ultimately benefiting Pakistani consumers. Source: Pro Pakistani

The Securities and Exchange Commission of Pakistan (SECP) has officially registered The Bank of Punjab's (PSX: BOP) exchange company. 'We are now pleased to inform you that subsequent to the issuance of above referred NOC from the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has issued the Certificate of Incorporation to 'BOP Exchange (Private) Limited', a fully owned subsidiary of The Bank of Punjab,' the bank informed the main bourse on Monday. 'As a next step in the process, the application will now be submitted to SBP for issuance of the license to commence operations, as per the SBP Exchange Companies Manual,' the bank added. BOP is principally engaged in commercial banking and related services. The majority shares of the Bank are held by the Government of Punjab (GoPb). Source: Pro Pakistani

Pakistan's Real Effective Exchange Rate (REER) increased by 1.97 percentage points to 104.07 in March 2024, according to data released by the State Bank of Pakistan (SBP) on Monday. According to the latest monthly data released by the central bank, the trend indicates an increase from 102.10 recorded in February 2024. March 2024's REER is the highest since April 2021 (just a month shy of 3 years) when it was recorded at 104.2. The REER was between 85 and 90 during February-June period last year. It is pertinent to mention here that a REER above 100 indicates a loss in trade competitiveness with exports becoming more expensive and imports getting cheaper, while a REER below 100 means the country's exports are competitive. Pakistan's current REER value of 104.07 suggests that exports offer poor returns. Source: Pro Pakistani

Pakistan and Iran have decided to increase the trade volume between the two countries to $10 billion, Iranian President Ebrahim Raisi said Monday. Addressing a joint press conference alongside Prime Minister Shehbaz Sharif after the two held a meeting in Islamabad, the Iranian President said that the existing trade volume between the two countries was not acceptable. The two also held delegation-level talks. The Iranian President also emphasized the need for the promotion of trade and business activities in the border areas for the well-being of the people there. The president said both Pakistan and Iran are determined to fight terrorism and other organized crimes. He expressed the hope that his visit to Pakistan would be a turning point regarding the expansion and promotion of bilateral relations between the great people of Pakistan and Iran. In his remarks, Prime Minister Shehbaz Sharif expressed Pakistan's firm commitment to further strengthen bilateral relations with Iran. He said the time has come t o transform our border areas into the ones of economic progress and prosperity. He expressed confidence that the visit of the Iranian President will further strengthen and deepen the bilateral relationship between Pakistan and Iran. MoUs signed Separately, Radio Pakistan reported that Pakistan and Iran signed eight agreements and MoUs for cooperation in diverse fields. The agreements included cooperation in security, judicial assistance in civil matters, and veterinary and animal health. Source: Pro Pakistani