Category: Industry

The Federal Tax Ombudsman has proposed disciplinary proceedings against 17 officers of the Federal Board of Revenue (FBR) involved in malpractices.

According to a handout, FTO Dr Asif Mahmood Jah chaired a meeting of the Advisory Committee to discuss measures to improve taxpayers’ facilitation through early redressal of issues raised by traders, the public at large, international investors and corporations.

While speaking in the meeting, the FTO explained the mandate and functions of the Advisory Committee. He informed that in a number of complaints, the issues raised by the complainants were resolved on telephonic discussion or by forwarding SMS to the relevant tax functionaries under the FBR, by exercising the powers under Section 33 of the FTO Ordinance, 2000.

Dr Jah informed that the recommendations have been issued to the FBR for resolution of refund-related issues raised by the members of Rawalpindi Chamber of Commerce & Industry.

He said that interns will be appointed for a door-to-door campaign for taxpayers’ awareness of the FTO office and facilitation at their doorstep. Dr Jah added that since he joined as FTO, the number of complaints registered on average has gradually increased as compared to previous months which shows that confidence of the taxpayers has increased in the FTO office.

He said that the suggestions and recommendations to improve the tax system and resolution of taxpayers’ grievances, provided by the members of the committee, will be warmly welcomed. He added that the FTO Office is the only institution, which provides cost-free and transparent justice within days.

Dr Jah said that the FTO office will try to conduct meetings of the Advisory Committee on a quarterly basis.

The advisory committee members lauded the performance of FTO and stressed the need to share FTO’s publications in Urdu language to promote tax awareness.

The participants, that included heads of various trade bodies, discussed a number of issues and appreciated the FTO for providing a listening ear to the complainants.

Source: Pro Pakistani

The Economic Coordination Committee of the Cabinet has given approval for the removal of one slab benefit (incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross-subsidies under Retargeting of Power Sector Subsidies Phase –II.

The ECC meeting chaired by Federal Minister for Economic Affairs, Omar Ayub Khan, on Thursday also approved various Technical Supplementary Grants in favor of different Ministries.

ECC also held detailed discussions on various other summaries, including summaries pertaining to Auto Industry Development and Export Policy (AIDEP) 2021-26, Retargeting of Power Sector Subsidies (Phase-II), enhancement of Ways and Means Limit of Khyber Pakhtunkhwa (KP) government, scrapping of the tenders on sugar import, and gas supply to fertilizer sector.

After deliberation, ECC approved the Ministry of Commerce’s summary on the Textile and Apparel Policy 2020-25 with directions to include the input from FBR and the Division while addressing the observations made by the Power Division.

It also approved the summary tabled by the Ministry of Industry & Production on Auto Industry Development and Export Policy (AIDEP) 2021-26, directing the Ministry to review the export targets given in the policy every year and update accordingly. It also directed the Ministry to separately present the proposed tariff structure.

The committee approved the summary about ‘Retargeting of Power Sector Subsidies (Phase-II), which included removal of one slab benefit (incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross-subsidies. Ministry of Energy had submitted the summary.

ECC also recommended the summary tabled by Finance Division seeking enhancement of Ways and Means Limit of KP government from Rs. 27.0 billion to Rs. 31.3 billion due to the impact of the wage bill of erstwhile FATA [Federally Administered Tribal Areas].

The Ministry of Industries & Production has submitted a summary for endorsement on the decision of the committee constituted by ECC on scrapping of the tenders floated by the Trading Corporation of Pakistan in respect of the import of sugar. The ECC discussed and approved the summary.

On the recommendation of the Technical Advisory Sub-Committee, ECC also approved the summary tabled by the Ministry of Industries & Production on the revised gas supply priority order to the fertilizer sector. System gas supplies will be ensured to these plants during the current Rabi Season 2021-22 ensuring immediate availability of urea and saving of foreign exchange in case of import of urea from abroad.

On the recommendations of the Technical Advisory Sub-Committee, ECC also approved the following Technical Supplementary Grants:

i. Technical Supplementary Grant for amount Rs. 2,650.968 million in favor of the Ministry of Housing & Works for the execution of development schemes in the province of Sindh and Balochistan under SAP

ii. Supplementary Grant/Technical Supplementary Grant in favor of Ministry of Energy for payment of First Installment (40%) to IPPS of 2002 underpayment mechanism

iii. Supplementary Grant to Ministry of Information & Broadcasting amounting to Rs. 2 billion for launching comprehensive media campaign on government initiatives, programs, and projects

It is pertinent to note that ECC on 23 September 2021 also approved a supplementary grant of Rs 52.432 billion in respect of 11 IPPs under the 2002 policy to be released in accordance with the payment mechanism. Notably, the Committee on September 30 approved a supplementary grant of Rs. 14.52 billion payment to an IPP (TNB Liberty) under 1994 policy in accordance with the same payment mechanism.

The ECC deferred a summary tabled by the Ministry of National Food Security & Research for notification of minimum indicative price of tobacco crop 2022 with the directions that a committee may be formed to address the observations of stakeholders and present the proposal in the next meeting after detail revision.

The ECC meeting was attended by Advisor to the Prime Minister on Finance & Revenue, Shaukat Tarin, Minister for Industries & Production, Makhdum Khusro Bakhtyar, Minister for Energy, Hammad Azhar, Minister for Railways, Muhammad Azam Khan Swati, Minister for Interior, Sheikh Rashid Ahmed, Federal Minister for National Food Security & Research, Syed Fakhar Imam, Advisor to the Prime Minister on Commerce & Investment, Abdul Razak Dawood, Minister of State for Information & Broadcasting, Farrukh Habib, Governor State Bank of Pakistan, respective federal secretaries and other senior government officers.

Earlier, Advisor on Finance & Revenue, Shaukat Tarin, presided over a meeting of the Technical Advisory Sub-Committee, wherein the summaries were reviewed in detail and, subsequently, recommendations were made to ECC.

Source: Pro Pakistani

The Large Scale Manufacturing Industries (LSMI) output increased by 3.56 percent in the first four months (July-October) of the current fiscal year 2021-22 compared to the same period of last fiscal year, as almost all major manufacturing sectors posted growth, the data released by the Pakistan Bureau of Statistics (PBS) showed on Thursday.

According to the provisional Quantum Index numbers of the Large Scale Manufacturing Industries (QIM), the LSMI output decreased by 1.19 percent for October 2021 compared to October 2020 and increased by 1.86 percent compared to September 2021.

The LSM data released by the PBS, after collecting it from the Provincial Bureau of Statistics (BOS), the Oil Companies Advisory Council (OCAC), and the Ministry of Industries, showed that the OCAC recorded month-on-month growth of 9.82 percent in October 2021 against the previous month and 14.75 percent growth was recorded year-on-year in October 2021 against October 2020.

The data showed that the Ministry of Industries-related sectors witnessed a growth of 3.08 percent in October 2021 against September 2021 on an MoM basis while year-on-year basis, it registered a negative growth of 1.21 percent in October 2021 compared to the same month in 2020.

The PBS data said that the LSM-related data to the BOS month-on-month witnessed a decline of 2.57 percent in October 2021 against the previous month, and on a YoY basis, the BOS witnessed a negative growth of 4.33 percent in October 2021 against October 2020.

The production in July-October 2021-22 compared to July-October 2020-21 has increased in textile, food, beverages and tobacco, pharmaceuticals, cook and petroleum products, chemicals, automobiles, iron and steel products, paper and board, leather products, engineering products, and wood products, while it decreased in non-metallic mineral products, fertilizers, electronics, and rubber products.

Textile, the top contributing sector to the overall large industry output, increased by 0.91 percent, food, beverages, and tobacco 5.15 percent, cook and petroleum products 7.33 percent, pharmaceuticals 6.55 percent, chemicals 3.14 percent, automobiles 37.91 percent, iron and steel products 11.62 percent, leather products 10.49 percent, engineering products 0.81 percent, paper, and board 9.39 percent and wood products 6.56 percent during July-October 2021-22 compared to the same period of 2020-21.

The sectors registering a decline during July-October 2021-22 compared to July-October 2020-21 included non-metallic mineral products 2.66 percent, fertilizers 7.23 percent, electronics 10.92 percent, and rubber products 32.23 percent.

The petroleum products on year-on-year witnessed growth of 7.33 percent as its output increased from 4.644 billion liters in July-October 2020-21 to 4.984 billion liters in July-October 2021-22.

High-speed diesel witnessed 4.98 percent growth in July-October 2021-22 and remained 1.958 billion liters compared to 1.865 billion liters during the same period last year.

Furnace oil witnessed 0.62 percent negative growth in July-October 2021-22 and remained 906.613 million liters compared to 912.290 million liters during the same period last year.

Motor spirit witnessed a growth of 8.58 percent in July-October 2021-22 and remained 1.175 billion liters compared to 1.082 billion liters during the same period last year.

The LPG witnessed 11.62 percent growth in July-October 2021-22 and remained 305.806 million liters compared to 273.969 million liters during the same period last year.

Jet fuel oil witnessed 28.35 percent growth in July-October 2021-22 and remained 232.159 million liters compared to 180.881 million liters during the same period last year.

Kerosene oil witnessed 5.57 percent growth in July-October 2021-22 and remained 48.915 million liters compared to 46.333 million liters during the same period last year.

Sugar production remained zero in July-October 2021-22 and was also zero in July-October last year, as shown by the PBS data. Cement witnessed 2.74 percent negative growth in July-October 2021-22 and remained 15.982 million tonnes compared to 16.433 million tonnes during the same period last year. Tractors witnessed 14.40 percent growth in July-October 2021-22 and remained 17,427 numbers compared to 15,234 during the same period of last year.

Motorcycles witnessed 4.64 percent negative growth in July-October 2021-22 and remained 769,802 compared to 807,230 during the same period last year.

Source: Pro Pakistani

Transparency International (TI) Pakistan, an anti-corruption watchdog, has urged the Government of Sindh to address the issue of an alleged loss of Rs. 136 billion in the Greater Karachi Water Supply Scheme, commonly known as the K-IV project.

In a formal letter addressed to the Office of the Chief Minister of Sindh, TI Pakistan has requested the Sindh government to aptly examine the aforesaid allegations and consider reconvening a technical committee in this regard.

According to the letter, TI Pakistan received a complaint regarding the alleged loss in the K-IV project due to a design change, adding “84 inches steel pipe to carry water, to benefit pipe suppliers, resulting in [an] increase in cost from Rs. 45 billion to over Rs. 191 billion, which is more than the Contract Cost of Rs. 183.5 billion of Mohmand Dam awarded by WAPDA”.

In its observations, TI Pakistan said it had informed the Chief Minister of Sindh vide letter dated 8 June 2021, “about efforts of introducing Steel Pipe in K-IV”. The watchdog stated,

In the interest of completing K-IV Water Supply Project to provide 260 MGD extra water for Karachi, along with 300% saving of additional cost, TI-P strongly believes that the GoS Technical Committee recommendations of March 2020, developed as a result of deliberations on the NESPAK Design Review Report, should be adopted without delay.

TI Pakistan has urged the Sindh government to maintain the existing route/alignment for the K-IV project and allow groundwork to resume once all modifications “suggested by the Technical Committee are finalized”. It remarked, “[the] Government of Sindh needs to approve [the] implementation of 260 MGD of K-IV project as envisaged and planned earlier, preferably adopting Option-I, referred in March 2020 report, in view of its advantages & early completion of the Project.”

The government should reconsider reconvening the Technical Committee on 30 October 2019 to examine the K-IV project and review the design change which allegedly increased its cost by almost 400 percent, it emphasized.

In retrospect, the multibillion-rupee project to address the water needs of the residents of Karachi remains a faraway dream, even after more than 10 years since its formal inauguration in 2011. The construction has been delayed due to various factors, raising the estimated cost to Rs. 150 billion.

Regardless, the construction will begin in the next few months and is expected to be completed by October 2023.

Source: Pro Pakistani

The Afghan administration has revised the tariff on Pakistani citrus, giving relief to the fruits traders from the two countries.

The tariff has declined from Rs. 33 per kilogram (kg) to Rs. 10 per kg.

The development has taken place as a result of relentless efforts by the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) on both sides of the border.

The step to rationalize the tariff positively will impact both sides, as it will generate much-needed revenue, especially for Afghanistan amid the prevailing financial crisis and absence of a formal banking system.

Such steps must be continually taken in order to sustain stable economic activity.

Chairman PAJCCI Zubair Motiwala appreciated the concentrated efforts of Vice-President Afghanistan Chamber of Commerce and Industry Khan Jan Alokozai, who along with Afghan Union of Fresh Fruit traders met with Afghan Minister for Industry and Commerce and officials of the Ministry of Finance to solicit the support of Afghan administration in giving relief to the traders.

It is to note that PAJCCI held last week a meeting of the stakeholders with Sargodha Chamber of Commerce and Industry to discuss the issue of held citrus consignments and the high tariff impacting the trade and to bring it to the limelight for an immediate resolution and, thus, save businesses from loss. President Sargodha Chamber of Commerce and Industry Shoaib Ahmed Basra had lauded the role of PAJCCI and its Chairman Zubair Motiwala for bringing all stakeholders for negotiations.

In his remarks, Motiwala stated that PAJCCI was committed to not only raising concerns but also coming up with practical solutions on the ground in both countries. He added that PAJCCI would continue taking the voice of the business community to the authorities concerned.

He requested Prime Minister Imran Khan to take notice of the recent State bank of Pakistan’s notification regarding the removal of the cash-on-counter facility. He said it cast terrible impacts on transacting with both Afghanistan and CIS [Commonwealth of Independent States] countries. He regretted that the consignments of raw cotton being imported from Afghanistan and transited from Central Asian Republics were stuck on the border due to persisting banking problems.

Source: Pro Pakistani

Pakistan’s liquid foreign reserves witnessed an outflow of $90 million on account of debt servicing in the week ending on December 10, 2021.

According to the data released by the State Bank of Pakistan (SBP), the foreign exchange reserves decreased to $18.56 billion in the week. During the week, the foreign exchange reserves of commercial banks stood at $6.4 billion.

The foreign exchange reserves recorded inflows of over $2.6 billion in the previous week as part of the financial cover from the brotherly state of the Kingdom of Saudi Arabia.

The inflows from Saudi Arabia will provide a cushion to the foreign exchange reserves for the next few months. However, the value of the Rupee against the Dollar has failed to recover despite the Saudi injection.

In order to minimize the pressure of foreign exchange outflows, the country needs to explore other avenues to build reserves.

Source: Pro Pakistani