Tag: economic milestones

  • FBR surpasses Rs1 trillion tax collection milestone in December

    FBR surpasses Rs1 trillion tax collection milestone in December

    In a historic achievement, the Federal Board of Revenue (FBR) announced the unprecedented collection of over Rs1 trillion in December, marking the first instance of such a milestone, as per a press release issued today.

    Furthermore, the FBR has set a new record by collecting Rs4.468 trillion in the initial six months of Fiscal Year 2024, indicating a notable increase of over Rs1 trillion when compared to the Rs3.43 trillion collected during the same period in FY23.

    Remarkably, the FBR has surpassed its targeted collection for the first half of FY24, which was initially set at Rs4.425 trillion. The government’s ambitious projection for the entire fiscal year stands at Rs9.415 trillion.

    Despite challenges such as the issuance of Rs230 billion in refunds, up from Rs177 billion in the corresponding period of the previous year, and sustained import compression, the FBR continues to face obstacles in revenue collection at the import stage.

    Traditionally, the revenue mix at the import stage and domestic taxes had a 50:50 ratio. However, this balance has shifted to 36:64, with the FBR mitigating the impact of import compression by generating more revenue domestically.

    The ratio of direct to indirect taxes has also experienced a shift, with the share of direct taxes increasing to 49 per cent in the first six months.

    Notably, in December alone, direct taxes accounted for 59 per cent, marking a 41 per cent increase in the first six months compared to the previous year.

    Within the category of direct taxes, the FBR has reduced the share of withholding taxes from 70 per cent to 55-58 per cent over the past two years. Remarkably, the share of withholding taxes reached as low as 40 per cent in December 2023.

    It’s worth noting that the FBR had achieved a Rs1 trillion annual collection back in 2007-08, a milestone that took 50 years to accomplish.

    In contrast, the FBR has achieved a comparable feat within a single month after 15 years, underscoring the relentless efforts, unwavering dedication, and hard work demonstrated by the field formations and top leadership of the FBR.

  • Pakistan’s economy picks up pace: GDP growth hits 2.13%

    Pakistan’s economy picks up pace: GDP growth hits 2.13%

    In the first quarter of the fiscal year 2023-24, Pakistan’s economy exhibited signs of recovery with a Gross Domestic Product (GDP) growth rate of 2.13 per cent, marking a significant improvement from the 0.96 per cent recorded in the same period of the previous fiscal year, according to estimates released by the Pakistan Bureau of Statistics (PBS) on Tuesday. 

    These estimates gained approval during the 107th National Accounts Committee (NAC) meeting convened on the same day.  

    To align with the structural benchmarks outlined in the IMF-SBA program, PBS engaged in consultations with stakeholders and data providers. They presented revised GDP figures for both the fiscal year 2022-23 and the first quarter of 2023-24 to the NAC. 

    In a noteworthy development, the NAC also sanctioned the incorporation of quarterly national accounts into the country’s statistical system. 

    Revisiting the GDP figures for the fiscal year 2022-23, the growth rate has been revised to -0.17 per cent, a departure from the provisional report of 0.29 per cent. 

    Breaking down the growth by industry, the 107th NAC greenlit a sector-specific methodology for compiling quarterly GDP. This includes a series of quarterly growth rates for various industries spanning from the first quarter of 2016-17 to the first quarter of 2023, with 2015-16 serving as the base year. 

    For the first quarter of 2023-24, the agricultural sector exhibited growth of 5.06 per cent, the industrial sector 2.48 per cent, and services 0.82 per cent. 

    In agriculture, crops recorded a robust growth of 6.13 per cent, with a notable 11.16 per cent increase in important crops.  

    The expansion is attributed to a rise in the sowing area, particularly for rice, cotton, and maize, with increases of 21 per cent, 11 per cent, and 5 per cent, respectively. Sugarcane saw an 11 per cent decline, but this was offset by growth in other major crops. 

    The industrial sector, which experienced a continuous decline in the preceding fiscal year except for a modest growth in the second quarter, reversed its trend in the first quarter of 2023-24, registering a growth of 2.48 per cent. Mining and quarrying posted a positive growth of 2.15 per cent, based on quarterly production in the mining sector.  

    Large-Scale Manufacturing (LSM) demonstrated growth of 0.93 per cent according to the Quantum Index of Manufacturing (QIM). Construction industry growth was estimated at 1.73 per cent, with a notable 15.38 per cent increase in cement production. 

    In services, the overall growth was 0.82 per cent. Wholesale and retail trade, reliant on the output of agriculture, manufacturing, and imports, was estimated at 3.05 per cent due to positive growth in agriculture and industry.  

    Transport grew by 1.7 per cent, based on quarterly data. Information & Communication, previously negative, showed a growth of 2.4 per cent, primarily due to a low base and quarterly information received from sources. 

    The finance and insurance industry reported a growth of -12.79 per cent, driven by a decline in the output of insurance companies and brokers, along with high growth in the deflator.  

    Public administration reported -16.65 per cent growth in the quarter, with high deflators contributing to a decline in constant prices.  

    Negative growth in education and human health and social work activities was largely influenced by a decrease in government budget data along with a high deflator.