Tag: Pakistan News

  • Petroleum minister confirms gas prices will remain unchanged, highlights falling inflation

    Petroleum minister confirms gas prices will remain unchanged, highlights falling inflation

    In a recent press conference, Minister for Petroleum Musadik Malik announced that the federal government has decided to keep gas tariffs unchanged. He confirmed that consumers will not experience any increase in gas prices.

    Malik highlighted that the government’s economic policies are beginning to yield positive results. He reported a substantial reduction in food inflation, which has decreased from 48 per cent to just 2 per cent.

    Overall inflation has also dropped significantly, falling from 38 per cent to 12 per cent, with a continued downward trend anticipated. Malik stated that all economic indicators suggest the country is moving towards greater stability.

    The minister emphasised that the government’s primary objectives are to alleviate poverty, control inflation, and create job opportunities for the youth. He revealed that Prime Minister allocated Rs600 billion in the current federal budget to support the underprivileged.

    Development projects are being prioritised, particularly in underserved areas, to generate local employment. Additionally, Rs50 billion has been earmarked to protect 86 per cent of electricity consumers for the upcoming three months.

    Malik reiterated the government’s commitment to providing further relief to the public by enhancing healthcare facilities, digitising the Federal Board of Revenue (FBR), and pursuing the privatisation of state-owned enterprises.

    Criticising the previous Pakistan Tehreek-e-Insaf (PTI) administration, Malik accused them of distributing $4 billion to the wealthiest individuals during their tenure. He also addressed the issue of terrorism, asserting that while the government is working to combat it, opposition parties are criticising these efforts.

    The minister expressed disappointment with the opposition’s approach, which he described as destructive and confrontational. He specifically criticised the Sunni Ittehad Council (SIC) for its negative campaign against state institutions and its focus on sit-ins without offering viable solutions.

    Furthermore, Malik accused PTI leaders of inconsistency, recalling that they previously claimed their government was overthrown by the US, yet they are now seeking assistance from the same country.

  • Federal cabinet to approve FBR restructuring in upcoming meeting

    Federal cabinet to approve FBR restructuring in upcoming meeting

    In a significant development, the caretaker government has concluded the comprehensive restructuring plan for the Federal Board of Revenue (FBR).

    The approval for this pivotal reform comes from the Apex Committee of the Special Investment Facilitation Council (SIFC), highlighting a crucial step towards enhancing efficiency and transparency in Pakistan’s tax administration.

    According to reliable sources, the Apex Committee granted its approval for the FBR’s reforms and restructuring plan during its recent meeting. The caretaker government is now poised to move a summary for the approval of the FBR’s restructuring plan in the upcoming federal cabinet meeting.

    The decision to move the summary will follow the meticulous review of the minutes of the last SIFC committee meeting, ensuring a thorough examination of the proposed reforms. The anticipated summary aims at facilitating the implementation of a robust action plan geared towards restructuring Pakistan’s tax administration, thereby fortifying the internal governance mechanisms of the FBR.

    As part of the ongoing reform initiative, the caretaker government is contemplating the establishment of a dedicated Customs Board to oversee the operations of Pakistan Customs. This strategic move aims to streamline and enhance the efficiency of customs affairs while ensuring a clear demarcation from the revenue collection mechanism.

    It is expected that the revenue collection mandate will continue to be under the purview of the FBR. In line with this reform trajectory, the creation of a separate Inland Revenue Board is also under consideration, which will operate under the vigilant supervision of the Revenue Division.

    This bifurcation is designed to address concerns related to smuggling and other illicit activities, providing a specialised focus on each aspect of tax administration.

    Furthermore, as part of the tax reform programme, five federal secretaries, namely Finance, Industries and Production, National Food Security, Commerce, and Interior, are slated to become ex-officio members of the proposed Customs Board. This inclusion is envisioned to bring multidimensional expertise to the board, fostering collaboration among various sectors crucial for effective customs management.

    The restructuring plan marks a pivotal moment in Pakistan’s efforts to modernise and fortify its tax administration system. The caretaker government’s commitment to transparency and efficiency is evident in these strategic reforms, setting the stage for a more resilient and responsive revenue collection framework.

    The anticipated approval of the summary at the federal cabinet meeting will further propel the implementation of these transformative changes.

  • New tax rules: Discounts for overseas Pakistanis, higher costs for importers

    New tax rules: Discounts for overseas Pakistanis, higher costs for importers

    In a recent development, commercial importers of new mobile phones are set to miss out on any concessions following the issuance of the new valuation ruling.

    Conversely, a significant benefit has been extended to incoming international passengers, particularly overseas Pakistanis, who can now avail themselves of a depreciation of up to 60 per cent on used or refurbished mobile phones.

    The Directorate of Valuation Karachi’s latest ruling, numbered 1834 of 2023, is positioned to ease processes for overseas Pakistanis.

    However, it paints a different picture for commercial importers dealing with new mobile phones, who are now obligated to pay duties and taxes based on relatively higher customs values.

    The new ruling encompasses several additional models to refine the assessment of duties and taxes.

    Regrettably, the ruling does not offer any respite for commercial importers, placing the onus on them to adhere to the heightened customs values.

    In contrast, overseas Pakistanis stand to benefit from the increased depreciation rates outlined in the ruling, reaching up to 60 per cent for phones up to five years old brought in by incoming international passengers.

    Under the provisions of the new ruling, customs values for used or refurbished mobile phones imported by legitimate passengers will be assessed, considering the allowance for depreciation as stipulated in the provided tabulated values.

    For brands and models imported in commercial quantities but omitted from the annexure, clearance collectorates are advised to assess them under Section 81 of the Customs Act, 1969.

    Subsequently, a reference should be forwarded to the Directorate for the final determination of their values, according to the ruling.

    Sources indicate that overseas Pakistanis will find relief in the ruling due to the augmented depreciation rates, offering a substantial advantage for phones up to five years old.

    Meanwhile, commercial importers are left without any reprieve, as the new models of mobile phones will incur higher prices compared to their less-aged counterparts.

    This policy aims to curtail under-invoicing margins for both existing and new models of branded mobile phones.

  • Rangers seize sugar worth Rs1 billion in crackdown against hoarders 

    Rangers seize sugar worth Rs1 billion in crackdown against hoarders 

    In a well-executed operation against sugar hoarders in Karachi, Rangers seized a significant quantity of sugar valued at Rs1 billion.

    They conducted raids at two separate sugar warehouses on Hub River Road in Baldia Town, resulting in the recovery of about 140,000 bags of sugar, as confirmed by the paramilitary spokesperson.

    The estimated value of the confiscated sugar is over Rs1 billion. Interestingly, this sugar was destined for illegal smuggling into Afghanistan via Balochistan, and it has been handed over to the civil authorities for legal action.

    The surge in sugar prices, exceeding Rs200, prompted the government to crack down on sugar hoarding nationwide, aiming to control the artificial inflation of this essential commodity.

    This crackdown not only recovered thousands of sugar bags but also led to the arrest of individuals involved in the illicit sugar trade, known as “sugar mafias,” who were stockpiling and selling sugar at high prices.

    While effectively addressing sugar hoarding, this campaign also reduced sugar prices in the local market. Recent data from the Pakistan Bureau of Statistics (PBS) shows a significant 9.11 per cent decrease in sugar prices.

    In a well-executed operation against sugar hoarders in Karachi, Rangers seized a significant quantity of sugar valued at millions of rupees, as reported by The News on Saturday.

    They conducted raids at two separate sugar warehouses on Hub River Road in Baldia Town, resulting in the recovery of about 140,000 bags of sugar, as confirmed by the paramilitary spokesperson.

    The estimated value of the confiscated sugar is over Rs1 billion. Interestingly, this sugar was destined for illegal smuggling into Afghanistan via Balochistan, and it has been handed over to the civil authorities for legal action.

    The surge in sugar prices, exceeding Rs 200, prompted the government to crack down on sugar hoarding nationwide, aiming to control the artificial inflation of this essential commodity.

    This crackdown not only recovered thousands of sugar bags but also led to the arrest of individuals involved in the illicit sugar trade, known as “sugar mafias,” who were stockpiling and selling sugar at high prices.

    While effectively addressing sugar hoarding, this campaign also reduced sugar prices in the local market. Recent data from the Pakistan Bureau of Statistics (PBS) shows a significant 9.11 per cent decrease in sugar prices.Additionally, this effort against hoarders and smugglers had a broader positive impact.

    Weekly inflation decreased by 0.25 per cent in the week ending on September 14, reversing seven consecutive weeks of inflation, mainly due to lower prices of chicken and sugar in local markets following government intervention.

  • PM Kakar urges rapid privatisation of PIA as flight suspensions loom

    PM Kakar urges rapid privatisation of PIA as flight suspensions loom

    Interim Prime Minister Anwaar-ul-Haq Kakar has issued a directive to accelerate the privatisation process of Pakistan International Airlines (PIA), which has been facing substantial financial losses. This move comes in response to reports suggesting that PIA’s flight operations could be halted by September 15 unless emergency funding is secured. 

    In a recent interview with Geo News, a senior PIA director revealed that the airline had reduced its operational fleet from 23 to just 16 aircraft, resulting in numerous flight cancellations. Additionally, major aircraft manufacturers, Boeing and Airbus, had suspended the supply of spare parts to PIA due to outstanding payments, causing daily losses amounting to millions of rupees.  

    The dire situation was further exacerbated when a PIA plane was detained at Dammam airport and four others were held at Dubai airport due to unpaid fuel bills. 

    The official cautioned that unless emergency funds amounting to Rs23 billion were secured, flight operations might come to a standstill by September 15. In response to these pressing concerns, Prime Minister Kakar chaired a meeting regarding PIA-related matters and assigned the caretaker Minister for Privatisation, Fawad Hasan Fawad, to oversee the privatisation process with the utmost urgency.  

    The prime minister stressed the need for a swift privatisation process to ensure reliable services for users and to bring PIA’s standards in line with global aviation standards. 

    Furthermore, the prime minister urged all relevant stakeholders to collaborate in finding immediate solutions to the challenges associated with privatization. The meeting also included a briefing on the progress of the privatisation process at PIA. 

    Read more: Islamabad Police launches campaign to catch students bunking school and college 

    According to Geo, PIA has been grappling with severe financial difficulties, including the grounding of five out of its 13 leased aircraft, with the possibility of grounding four more due to ongoing financial constraints. The airline had previously requested an emergency bailout of Rs22.9 billion, which was rejected by the Economic Coordination Committee (ECC).  

    Additionally, requests for deferring payments of Rs1.3 billion per month to the Federal Board of Revenue (FBR) and Rs0.7 billion per month to the Civil Aviation Authority (CAA) were also denied by the ECC.  

    Moreover, PIA had warned of potential disruptions in the supply of spare parts by Boeing and Airbus by mid-September. In a further blow, the FBR froze 13 of PIA’s bank accounts due to unpaid dues totaling Rs8 billion in Federal Excise Duty (FED). 

  • Pakistan to import 100,000 tonnes of sugar from Brazil due to high prices, shortage

    Pakistan to import 100,000 tonnes of sugar from Brazil due to high prices, shortage

    With the price of sugar skyrocketing in the market, aided by the exploitative practices of the sugar mill cartel, and the commodity facing scarcity, a decision has been reached to import 100,000 metric tonnes of sugar from Brazil.

    The Trading Corporation of Pakistan has formally communicated its intention to procure sugar from the South American nation. This comes as a reversal of trends, considering that sugar had been exported back in June; however, preparations are now underway for its import in September.

    Nevertheless, there are concerns that the price of sugar might surge further in the market following its import. It is anticipated that sugar could reach a staggering Rs200 per kilogramme.

    Insider sources have disclosed that the country is grappling with a significant shortage of sugar after its previous export. In November 2022, sugar was priced at Rs91, but following its export, the price catapulted to Rs180. The impending import of 100,000 metric tonnes is feared to exacerbate the price increase.

    Speaking on the issue, Food Secretary Zaman Wattoo revealed that the recent surge in sugar prices has collectively burdened the masses with an additional cost of Rs47 billion.

    Meanwhile, the price of sugar persistently climbs, now touching the Rs170 per kilogramme mark in the retail sector. Over a span of just four days, the price has gradually escalated by Rs10 per kilogramme.

    At the wholesale level, sugar is valued at Rs16,400 per 100 kilogrammes. Different sugar mills are offering rates ranging from Rs15,800 to Rs16,600 per 100 kilogrammes.

    According to Samaa, despite the ongoing dynamics, there is still no officially defined market rate for sugar, leaving room for potential further spikes in pricing. Furthermore, considering the current market conditions, the export of sugar has been placed under a temporary prohibition.

  • Pakistan puts brakes on diesel imports: Economic slowdown and smuggling impact

    Pakistan puts brakes on diesel imports: Economic slowdown and smuggling impact

    In response to a drop in demand within Pakistan due to an economic slowdown and smuggling from Iran, the country opted not to import high-speed diesel (HSD) in July.

    Around 70 per cent of Pakistan’s diesel is consumed by its transport and agriculture sectors. However, these sectors have been severely affected by the economic crisis and the fact that Pakistani diesel is more expensive compared to the cheaper Iranian fuel.

    In the same period the previous year, Pakistan imported 162,000 metric tonnes of HSD. An industry expert stated, “The economic slowdown has greatly affected the transport sector’s operations, and even the agricultural sector’s diesel consumption has been low.” He also noted that daily diesel consumption through legal channels had dropped from 22,000 metric tonnes to 15,000 metric tonnes.

    Pakistan State Oil (PSO), the largest oil importer, postponed its planned HSD imports for July because local refineries had enough stock to meet the reduced demand. Another source explained, “If HSD had been imported, refineries would have had to stop operations as the local transport sector wouldn’t have been able to absorb their diesel output.”

    According to Geo, it is expected that PSO will not import HSD in August or September either, given the dim demand outlook and the growing price difference compared to Iranian diesel. Notably, Iranian diesel, which costs around Rs200 per litre in border areas, has become a viable alternative, meeting much of the demand in Pakistan.

    In response to an increase in diesel prices by 7 per cent to Rs293.40 per litre on August 15, the consumption of diesel through legal channels has decreased by approximately a third, according to an industry official.

    Given the ongoing circumstances, officials do not anticipate an improvement in diesel consumption patterns. The expected rise in diesel prices will likely further drive the preference for Iranian diesel in the country.

  • ‘Desire peaceful relations’ – Khan replies to Modi’s letter

    ‘Desire peaceful relations’ – Khan replies to Modi’s letter

    Prime Minister Khan has responded to the letter written by his Indian counterpart Narendra Modi on Pakistan Day, telling Modi that the Pakistani people “also desire peaceful, cooperative relations with all neighbours, including India”. The letter is dated March 29, a week after PM Khan received the letter from Modi.

    PM Khan started the letter by saying, “I thank you for your letter conveying greetings on Pakistan Day. The people of Pakistan commemorate this Day by paying tribute to the wisdom and foresight of our founding fathers in envisioning an independent, sovereign state where they could live in freedom and realise their full potential,” clearly stating that Pakistan is a place where people live in freedom.

    Letter written by Imran Khan to Narendra Modi

    PM Khan said Pakistan was convinced that “durable peace and stability in South Asia is contingent upon resolving all outstanding issues between India and Pakistan, in particular the Jammu & Kashmir dispute” . He also added that the “creation of an enabling environment is imperative for a constructive and result-oriented dialogue.”

    “Please accept, Excellency, the assurances of my highest consideration,” PM Khan concluded, after conveying his best wishes to the Indian people in the fight against coronavirus.

    It should be noted that in Modi’s letter to Khan, the same phrase was used to end the letter.

    In the letter that Modi wrote to Khan, Modi stated that, “an environment of trust, devoid of terror and hostility” was necessary if both countries were to move forward.

    Social media was abuzz after the news of the letter broke, with details emerging that Pakistan and India were going to resume trade.

    Others were hopeful that maybe this time Pakistan and India might commit to a new peace.

    While some are apprehensive.

    A separate message was also sent by President Ram Nath Kovind to his Pakistani counterpart Arif Alvi. Indian government officials have told the Indian press that it is a routine letter sent every year.

  • UK court says Daily Mail allegations against Shehbaz ‘highest level of defamation’

    UK court says Daily Mail allegations against Shehbaz ‘highest level of defamation’

    A London court judge, Justice Sir Matthew Nicklin, has ruled that the words used in an article of Daily Mail for Shehbaz Sharif and his son-in-law Imran Ali Yousaf are “slanderous, and constitute the highest level of defamation under United Kingdom (UK) law”.

    The judge declared that the article against Sharif and Yousaf, written by David Rose, constitutes Chase Level 1 defamation, which is considered the highest form of defamation law in the UK.

    On July 14, 2019, David Rose alleged that Shehbaz and his son-in-law were involved in money-laundering and embezzlement of British money meant for Pakistani citizens.

    Justice Nicklin remarked at the hearing that he analysed the material put before him by Daily Mail and Shehbaz Sharif’s lawyers. He was also aware of the proceeding happening in Pakistan, as per the judge. He said that “it is not for me to know. I would rather not know what is happening in Pakistan.”

    The publication’s lawyer quoted Prime Minister (PM) Imran Khan advisor Shahzad Akbar’s statement that the money-laundering investigation started in Pakistan and it has led to multiple cases of corruption.

    In response, Shehbaz’s lawyer said that “the state has just proceeded with the investigation and now they are trying to tap the sources of these funds. It means that the investigation is far from complete, and Daily Mail had limited information at the time of the publication of the article”.

    The lawyer took the court through the entire article and said that the article is defamatory from the start till the end. It is also lacking evidence and making baseless allegations of fraud and money-laundering.

    Barrister Victoria Simon-Shore appeared for Shehbaz Sharif’s son-in-law Imran Ali Yousaf. She told the court that her client rejected all allegations of corruption, misuse of funds, and money-laundering.

    She said, “The allegations in the article that Mr Yousaf mysteriously accumulated money because his in-laws were in power was far from the truth. The presumption of innocent till proven guilty applies.”

    After the recent developments, the Pakistan Muslim League Nawaz (PML-N) demanded the release of Shehbaz Sharif. Marriyum Aurangzeb said, “The decision of the London court is a testimony of the innocence of Shehbaz Sharif and PM Imran Khan being a proven liar.”

    She demanded an apology from PM Imran and his spokesperson because the president of the PML-N has been severely defamed, under British Law.

    “Those who have no self-respect, their only job is to malign the honourable people,” she added.

    In response, Prime Minister’s Special Assistant on Accountability Mirza Shahzad Akbar claimed that the PML-N is declaring a premature victory by giving the perception that Shehbaz Sharif has won the case.

    He further said, “It was just a meaning hearing, which means it was held to decide the meaning of the words complained of in the claim brought by Shehbaz.”

    Addressing a press conference in Islamabad, Akbar accused Marriyum Aurangzeb of spreading misinformation. He challenged Shehbaz to file a defamation suit against him in London and he will present all the evidence.

    Akbar said that “misreporting was done by PML-N and some sections of the media to give the perception that Shehbaz had won something.”

    He also referred to David Rose’s tweets in which the journalist said that the hearing was “not a victory for anyone and was strictly preliminary.”