Tag: Miftah Ismail

  • ‘I am an easy target’: Miftah Ismail reacts to criticism after another petroleum hike

    ‘I am an easy target’: Miftah Ismail reacts to criticism after another petroleum hike

    Finance Minister (FM) Miftah Ismail once again explained how the petrol prices are calculated after receiving criticism for the increase in petroleum prices.

    Responding to senior journalist Hamid Mir on Twitter, he said the government has not imposed any tax on petroleum products.

    Clarifying his position, the minister said that he did not say that the price will not be increased.

    “Mir sahib I said I will not add one penny of new taxes or levies to the price. And I have not. But you know Hamid sahib that the fuel price summary is moved by OGRA and sent to Finance division through the Petroleum division. We get it only a few hours before prices are set.”

    “I am an easy target. Which is fine. But this price change only reflects the change in PSO costs and doesn’t have any new taxes,” said Miftah Ismail.

    The finance minister added that people are welcome to critique or criticise him.

    “I know I am sincere to my country and have saved it from default and working to the best of my ability.”

    Zardari unhappy with govt’s decision to increase petrol prices

    Pakistan People’s Party (PPP) Co-Chairperson Asif Ali Zardari distanced himself from the recent increase in the petroleum prices by the government.

    Zardari said the PPP is a part of the government and supports it, but there must be consultations on such decisions.

    “We are all here in this government to give relief to the people and that should be our top priority. We are with the prime minister and will meet him soon and talk about the economic team,” he added.

    ‘I am not involved in this decision’: Nawaz Sharif leaves party meeting over increase in petrol prices

    Pakistan Muslim League-Nawaz (PML-N) leader Maryam Nawaz took to Twitter and said that PML-N supremo Nawaz Sharif was unhappy with the government increasing the petrol prices and as a result left the meeting.

    “Mian Sahib strongly opposed this decision and even said that I cannot burden the people with one more penny. And if there is any compulsion of the government, I am not involved in this decision and he left the meeting,” tweeted Maryam.

    She further tweeted, “I stand with the people. Cannot support this decision.”

    The government increased the price of petrol by Rs6.72 per litre and decreased the price of high-speed diesel (HSD) by Rs0.51 and kerosene oil by Rs1.67 per litre.

    Read more: Govt raises petrol price by Rs6.72 to Rs233.91 per litre

    The price of light diesel oil (LDO) was raised by Rs0.43 per litre by the government.

    Prior to this, the coalition administration had decreased the cost of petrol and LDO starting on August 1 by Rs3.05 and Rs0.12, respectively.

  • Miftah Ismail commended for his ‘bold and clear’ comments on violence against religious minorities

    Miftah Ismail commended for his ‘bold and clear’ comments on violence against religious minorities

    Speaking on Geo News’ programme “Naya Pakistan”, Finance Minister (FM) Miftah Ismail on Sunday said that most Pakistanis are driven by emotions and not rationality.

    “How many people spoke up for a Christian couple burnt alive in an industrial kiln? A few days ago, an Ahmadi was killed but not many people raised their voices. People are scared.”

    Read more: Ahmadi man allegedly murdered for not chanting slogans in praise of Khadim Rizvi

    A 62-year-old member of the Ahmadi community named Naseer Ahmad was stabbed to death in Chenab Nagar on August 12, for allegedly refusing to chant slogans in praise of Tehreek-i-Labbaik Pakistan (TLP) founder Khadim Hussain Rizvi.

    https://twitter.com/SAMRIReports/status/1559108747502538753?s=20&t=1PbwDx-IqmjAnhPaRqTy-A

    Miftah went on to say that we don’t value education and that we are an emotionally driven country. “We are an emotional country that does not give much precedence to rationality and thinking.”

    “We don’t own Nobel laureate, Dr Abdus Salam, because he was an Ahmadi. Our daughter, Malala [Yousafzai] won a Nobel Prize and we find all kinds of faults in the world and associate them with her,” said Miftah.

    The minister also said that our country lacks the basic awareness required for a country to progress because we don’t give preference to education.

    Twitterati reacted to Miftah’s comments about minority rights.

  • IMF to send Letter of Intent soon to release $1.17 billion tranche

    IMF to send Letter of Intent soon to release $1.17 billion tranche

    The International Monetary Fund’s (IMF) agreement with Pakistan to release two tranches totaling $1.17 billion as part of a loan facility that was stalled is nearing completion, as the Letter of Intent (LoI) from the fund may arrive in a few days.

    Pakistan is likely to receive the LoI, which the governor of the State Bank of Pakistan (SBP) and the Finance Minister, Miftah Ismail, will jointly sign, according to The News.

    The IMF mission leader had to rush to Australia for a personal engagement, according to senior officials at the Finance Ministry, thus the Fund was likely to submit the LoI “anytime soon.”

    The IMF board would also discuss adding $1 billion to a $6 billion programme agreed upon in 2019 at its meeting scheduled for August 24.

    The government may impose higher taxes on cigarettes, tobacco leaves, fertiliser, and other items in order to appease the IMF.

    Additional taxes are being considered for a variety of sectors. Through a Presidential Ordinance, tax rates on cigarettes and the processing of tobacco leaf might be increased.

  • Another friendly country to confirm assurance this week: Miftah Ismail

    Another friendly country to confirm assurance this week: Miftah Ismail

    According to Pakistan’s Finance Minister Miftah Ismail, “one friendly country” has confirmed its commitment to assist Pakistan in filling the funding gap, while another nation would confirm its assurance in a day or two.

    An announcement will be made soon on this subject after confirmation.

    Earlier, the International Monetary Fund (IMF) said that Pakistan has completed the final prior action for the combined seventh and eighth reviews with the increase in the petroleum development levy (PDL).

    The IMF also stated that the board meeting is tentatively scheduled for late August once adequate financing assurances are confirmed.

    In order to prevent Pakistan from having a liquidity vacuum following the IMF loan, the international lender wants to make sure Pakistan will be able to get $4 billion in additional cash.

    The country has a $4 billion finance imbalance, according to Miftah, and the IMF wants our reserves to grow by $6 billion.

    Pakistan is in touch with friendly nations to cover the gap, and one of them has already reaffirmed its assurance. Within a day or two, the other nation will confirm as well.

    The assurances would be announced in advance of the IMF board meeting, which is slated to take place in the last week of August. According to reports, the IMF would announce the disbursement for Pakistan as soon as sufficient finance assurances are verified.

    The import bill has decreased to $4.92 billion, according to the minister. Due to this, there is now more cash coming in than going out. The market attitude has improved as a result of this.

    He believed that the Pakistani rupee had grown significantly versus the US dollar and would continue to do so.

    The Pakistani rupee made a significant recovery on Wednesday, recording its largest day-over-day gain in absolute terms against the US dollar to settle at Rs228.8, up Rs9.58 or 4.19 per cent in the inter-bank market. In the early hours of Thursday, trade, the rupee kept rising.

    On Thursday, stocks extended their gains, with analysts blaming the strong recovery of the rupee and soaring global equities for the optimistic trend.

    Read more: Dollar may drop near Rs180 after IMF tranche

    The benchmark KSE-100 index increased 356.50 points or 0.87 per cent to settle at 41,425.37 points, according to the Pakistan Stock Exchange (PSX).

    After being battered for weeks due to political and economic unrest, the local currency recovered by Rs9.59 on Wednesday, marking the highest one-day rise in decades.

  • Miftah assures to address the issues of business community

    Miftah assures to address the issues of business community

    Finance Minister Miftah Ismail has assured the business community that their problems related to electricity bills and taxation will be resolved soon.

    He made this announcement during a meeting at the Finance Division with a Markazi Tanzeem-Tajaran Pakistan delegation led by its president, Muhammad Kashif Chaudary.

    Miftah tweeted on Sunday that he would meet with business leaders to discuss their concerns. “The Prime Minister has also called me and instructed me to ensure that small traders are completely satisfied with the new tax law,” Ismail tweeted.

    According to him, the government will exempt stores with invoices of less than 150 units from the tax in an effort to appease small enterprises.

    The government would charge Rs3,000 to retailers who are not registered with the FBR, and neither tax notices nor FBR officers’ visits to their stores will be made.

    Additionally, a new fixed income and sales tax scheme for small business or retailers was suggested. The coalition government in power declared in the budget for 2022–2023 that fixed income and sales taxes would also be collected in addition to electricity bills.

    The amount of this tax, according to Finance Minister Miftah Ismail, will range from Rs3,000 to Rs10,000.

    According to Kashif Chaudary, the business sector is crucial to the nation’s economic growth. Ismail also acknowledged the situation and gave his word that the government will take every necessary action to assist and support the neighbourhood.

    Previously, the business community urged that the federal government immediately stop collecting the “fixed tax” through electricity bills.

    Hasnain Khurshid Ahmad, president of the Sarhad Chamber of Commerce and Industry, stated that the government has been able to collect sales tax from Rs3,000 to Rs20,000 through power bills, which is incomprehensible to local business owners.

    The forced system of “fixed” sale tax on commercial power metres, which did not distinguish between small and large firms or godowns, was a reflection of the government’s anti-business policies and amounted to the economic murder of the community of merchants, according to Khurshid.

  • Petrol, diesel prices may increase by Rs10-17 per litre

    Petrol, diesel prices may increase by Rs10-17 per litre

    Despite the fact that the prices for petroleum products and crude oil have remained largely stable, the price of petrol and diesel may increase by Rs10 to Rs17 per litre as of August 1, 2022. The depreciation of the Pakistani rupee is anticipated to be the cause of the upcoming increase.

    According to The News, sources claim that without taking into account the petroleum levy (PL), a price increase of Rs10 for petrol and Rs16–17 for diesel has been estimated. Additionally, Mogas prices have been forecasted at Rs15 per litre and diesel at Rs23 per litre if the government increases the petroleum levy of Rs5 per litre on gasoline.

    The anticipated increase in POL prices has also been calculated without taking into account the ECC’s Thursday approval of an increase in dealers’ margins (DMs) on POL prices of Rs2.10 per litre for gasoline and Rs2.87 per litre for diesel to Rs7 per litre. Petrol’s price could increase by Rs2.10 to Rs17.10 per litre, and diesel’s price could increase by Rs2.87 to Rs25.87 per litre.

    The increase in dealers’ margin will take effect on August 1, 2022, if the federal cabinet approves this decision in the next two days. Industrial sources reported that the US dollar has increased in value by Rs40 so far this month.

    The current exchange rate against the US dollar is Rs239.9427, and the open market price is Rs246.15. However, they did say that the exact price of gasoline and diesel will depend on the exchange rate in force as of today (Friday).

    Since the price of crude oil as of Thursday settled at $99.4 per barrel, according to independent experts, Pakistani consumers won’t be able to benefit from the decrease in price of POL as a result of the rising exchange rate. The government seems more inclined to impose PL on both gasoline and diesel by Rs5 per litre each.

    Liquefied petroleum gas (LPG) costs also rose by Rs10 per kilogramme on Wednesday without an Oil and Gas Regulatory Authority notification (OGRA).

    The chairman of the LPG Distribution Association (LDAP), Irfan Khokhar, told Profit that a household cylinder now costs Rs2,750 after an increase of Rs150, while the cost of a commercial cylinder has increased by Rs450 to Rs10,438 as a result of the unannounced price increase.

  • Government will soon lift the import ban on certain items

    Government will soon lift the import ban on certain items

    The government will lift the import ban on some items in the upcoming weeks, according to Finance Minister Miftah Ismail, but restrictions for cellphones, cars, and home appliances will remain in place.

    He stated that the Commerce Ministry has sent a summary to the federal cabinet for removing restrictions on the import of non-essential and luxury items while speaking at a seminar about the performance of state-owned enterprises (SOEs) here in the federal capital.

    According to the finance minister, the decision was made in light of a lower import bill as a result of restrictions placed on the import of new machinery and raw materials, as well as lower oil prices on the global market. “In the upcoming months, we anticipate a decrease in petroleum product imports. Lower imports will enable Pakistan to conserve its foreign currency, he continued.

    He continued by saying he was hopeful for higher dollar inflows compared to outflows starting in the upcoming month, which would ease pressure on the local currency.

    “Imports in Pakistan as of July 25 were $3.758 billion and our total imports are likely to be $4.824 billion. This number will be less than our exports plus remittance”, he had written on Twitter a day earlier.

    The ban on 30 categories and 83 Customs headings was reportedly requested to be lifted by the finance minister on Tuesday to Prime Minister Shehbaz Sharif.

    He did, however, suggest that the Commerce Ministry keep the ban on completely built units (CBUs), cars, and home appliances in place.

    Speaking with Profit, sources said that between May 19 and July 19, 2021, Pakistan imported CBU automobiles, mobile phones, and home appliances worth Rs399 million. However, after the ban was imposed on May 19, 2022, the trend of importing these items decreased.

    Pakistan imported goods worth Rs123 million between May 19 and July 19, 2022, a difference of Rs276 million compared to the corresponding months of the previous fiscal year.

    It is important to note that the government has outright banned the import of cars, mobile phones, home appliances, dry fruits (aside from those from Afghanistan), crockery, shoes, chandeliers, lights (except energy savers), headphones, and loudspeakers.

    Some items on the list included condiments, doors and window frames, travel bags and suitcases, sanitary ware, fish and frozen fish, preserved fruits, tissue paper, furniture, shampoos, confectionery, luxury mattresses, and sleeping bags, jams and jellies, cornflakes, toiletries, heaters, blowers, sunglasses, kitchenware, aerated water, frozen meat, juices, pasta, ice cream, cigarettes, shaving supplies, luxury leather apparel, and musical instruments.

  • ‘Pakistan is not going to default’: Miftah Ismail

    ‘Pakistan is not going to default’: Miftah Ismail

    The pressure on the Pakistani rupee will “vanish” in a few weeks, according to Finance Minister Miftah Ismail, who also stated that Pakistan is not going to default.

    He predicted that dollar inflows into Pakistan will exceed dollar outflows soon, creating a “stable exchange rate”. Additionally, he said that within three months, imports will “organically” decline, and exports will soar as a result of the government’s impending strategic plan.

    “It’s no fun going to the world, to the International Monetary Fund (IMF), to the Chinese, to the Saudis, asking for money,” said Miftah Ismail in an interview with Mosharraf Zaidi, CEO of advisory services firm Tabadlab.

    According to Miftah, the IMF loan influx will be completed within weeks.

    “The only thing is that from August 1 to August 15, the directors of the IMF are on vacation. That’s why the meeting is starting a little later than I’d prefer,” he added.

    The finance minister defended the government’s policy of limiting imports to stop the dollar from leaving the country during the discussion. “Nobody is happy with the surgery, but sometimes it’s necessary,” he added.

    Without mentioning the country, Miftah stated that Pakistani authorities had requested a “friendly country” to shore up foreign exchange reserves through dollar-denominated deposits but it turned down Islamabad’s request, saying the latter never returned the deposits.

    The friendly nation subsequently expressed interest in purchasing shares of publicly traded government-owned companies under a buyback arrangement, giving Islamabad the option — but not the obligation — to repurchase the same ownership at a 5 per cent higher price.

    In addition to stating that “there’s not even (a question of) price discovery,” the minister stated that the country “tried to help Pakistan and is giving a great deal”.

    =Earlier today, the Pakistani rupee again fell to a record low versus the US dollar. During intraday trading on Wednesday at 1:00pm, the US dollar reached Rs239.

  • IMF board to approve Pakistan’s $1.17 billion tranche in August

    IMF board to approve Pakistan’s $1.17 billion tranche in August

    The International Monetary Fund (IMF) Board’s approval for the release of $1,177 million to Pakistan is expected in the third or fourth week of August, according to Minister for Finance and Revenue Miftah Ismail.

    “Most probably August 26 is the date of board approval,” he said.

    A staff-level agreement (SLA) was achieved between the IMF team and the Pakistani government on Thursday to conclude the Extended Fund Facility’s (EFF) combined seventh and eighth evaluations, according to Brecorder.

    As per IMF’s statement, “Subject to Board approval, about $1,177 million (SDR 894 million) will become available, increasing the total disbursements under the Programme to approximately $4.2 billion.” The agreement also included a nine-month extension of the EFF programme and an additional $1 billion.

    The federal government stated that the administration has already performed all of the preliminary steps necessary for approval. “Therefore, after the staff-level agreement, the approval from the board could be considered a formality,” he said.

    The World Bank, the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB), among others, may all provide finance as a result of the development, he claimed.

    “Pakistan can easily borrow money from multilateral institutions,” he said.

    While discussing commodity pricing, Miftah remarked that the people will also profit from the falling costs of goods like edible oil and wheat on the world market.

    The administration made difficult choices, the finance minister continued, to prevent the nation from going into debt and to help it from its current economic crisis.

    He said that the government is exerting every effort to address the circular debt and poor governance problems.

  • Govt may reduce petrol prices before midnight: Miftah Ismail

    Govt may reduce petrol prices before midnight: Miftah Ismail

    The government will lower petroleum prices before midnight, according to Finance Minister Miftah Ismail, who also announced that Prime Minister (PM) Shehbaz Sharif has received a report from the Oil and Gas Regulatory Authority (Ogra) recommending the drop.

    Speaking to the media, he emphasised that the International Monetary Fund (IMF) had no issues with the government’s decision.

    The announcement came the same day the IMF announced that it had reached a staff-level agreement with Pakistan for the conclusion of the combined seventh and eighth reviews of the Extended Fund Facility; the agreement is now awaiting the Executive Board’s approval.

    Additionally, he declared that the government will lower oil prices now rather than wait until July 15th (14 July). “PM Shehbaz wants to announce immediate relief to the people of Pakistan,” he said. “The public stood with the government during difficult times and bore the burden of inflation and now we want to provide relief.”

    In its conclusion, Ogra suggested lowering the cost of gasoline by Rs18 per liter and diesel by more than Rs20 per liter.

    The decision to lower petroleum product prices was made in response to recent sharp declines in the price of crude oil on the world market.

    The government approved a price increase for petroleum products on June 30. The increase brought the new ex-depot price of gasoline to Rs248.74 per liter (up Rs14.85), and diesel to Rs276.54 (after a hike of Rs13.23).

    On July 1, the new rates became effective. In the pricing structure, a petroleum levy of Rs10 had been added to the cost of gasoline, and Rs5 had been added to the cost of kerosene, high-speed diesel, and light diesel oil per liter.