Energy imports drop 13pc
Pakistan experienced a 13 percent decline in overall energy imports, reaching $1.42 billion in November 2023, shedding light on subdued demand for petroleum, oil, and gas products. Economic activities remained lacklustre due to sluggish growth, and the recent surge in product prices has hampered purchasing power across various sectors.
The Diminishing demand for products, particularly furnace oil utilised in power production, prompted refineries to explore export opportunities. By exporting furnace oil, refineries created room to import larger quantities of crude oil, which, in turn, allowed them to produce premium products such as petrol and diesel.
According to the latest data from the Pakistan Bureau of Statistics (PBS), refined product imports plummeted by 29 percent to $499 million in November compared to $708 million in the corresponding period last year. Meanwhile, crude oil imports increased by 4 percent to $566 million, up from $546 million in the same month the previous year.
Govt refuses harsh conditions for PIA loan
The Federal Government has refused to accept the harsh conditions set by commercial banks for providing a new loan of Rs15 billion to the struggling Pakistan International Airlines (PIA). A joint committee has also failed to find a workable solution to keep the airline flying until its privatisation.
The Consortium of six commercial banks offered Rs15 billion in new loans to PIA, requesting sovereign guarantees, a letter of comfort, two aircraft as collateral, and a waiver from the State Bank of Pakistan (SBP), according to government sources.
The Banks also linked the loan disbursement to an agreement on a settlement plan for Rs263 billion in old debts and sought protection under the laws of the United Arab Emirates and England.
SBP reserves fall below $7bn in fy2024
The State Bank of Pakistan’s (SBP) foreign exchange reserves fell below $7 billion for the first time in the current fiscal year, posing challenges for the government to stabilise the exchange rate and meet debt servicing obligations. The SBP on Thursday reported a $136 million decline in reserves to $6.904bn due to debt repayments. This outflow of dollars brought the total SBP reserves to a five-and-a-half-month low during the current fiscal year, decreasing from the peak of $8.759bn in July FY24. Since then, reserves continuously declined, with the SBP losing $1.855bn from July to Dec 15. SBP reserves are decreasing as the government falls short of the borrowing target set for the current fiscal year. The latest data from the Pakistan Bureau of Statistics showed a 51 percent shortfall in external borrowing, with $4.3bn raised compared to the $24.2bn target, and a $10bn five-month target.
Business of BOI allocated to Ejaz
Caretaker Federal Minister for Commerce, Industries, and Production Dr Gohar Ejaz has been allocated the business of the Board of Investment (BoI).
According to a notification issued by the Cabinet Division, the Prime Minister, in terms of rule 3 of the Rule of Business, 1973, has allocated the business of the Board of Investment to the minister with immediate effect.
Jul-Nov mobile phones imports up 112.2pc
The Country imported mobile phones worth $616.541 million during the first five months (July-November) of the current fiscal year 2023-24, registering a growth of 112.20 percent when compared to $290.550 million during the same period of last year.
Pakistan’s mobile phone imports decreased by 11.69 percent on a Month-on-Month (MoM) basis in November 2023 and stood at $146.549 million compared to imports of $165.941 million in October 2023, according to data released by the Pakistan Bureau of Statistics (PBS).
Mobile phone imports registered 127.21 percent growth on a Year-on-Year (YoY) basis in November 2023 when compared to $64.499 million in November 2022.
Body formed ahead of introduce of single portal for filing st returns: telecom sector
The Federal Board of Revenue (FBR) has constituted a single portal committee for operationalizing arrangements required for the launch of single portal for filing sales tax return of the telecom sector in all tax jurisdictions.
In this regard, the FBR has issued a notification on Thursday for constitution of the Single Portal Committee for Implementation of Single Sales Tax Return Across Jurisdictions.
In Pursuance of decision taken by the members from the FBR and four Provincial Revenue Authorities (PRAs) during the last Tax Round Table Meeting held at Islamabad and with reference to the earlier notification, a Single Portal Committee has been constituted.
The Committee comprises Federal Board of Revenue Chief (Provincial Taxes), IR-Policy Wing; Chief (Systems), IT Wing; Punjab Revenue Authority, Member (Policy) Sindh Revenue Board, Senior Member (Operations-I); Khyber-Pakhtunkhwa Revenue Authority, Advisor Balochistan Revenue Authority, Member (Operations).
Powers of commissioners being used by DCs
The Deputy Commissioners in some field formations are using the powers of Commissioners Inland Revenue for amending the assessments which are neither gazetted nor displayed on the website of Federal Board of Revenue (FBR), said sources.
They said the Income Tax Ordinance bestows upon the Commissioners power of amending the assessments but deputy commissioners are enjoying the authority on account of delegation of the same in some field formations.
According to the sources, the Commissioners are delegating powers by issuing office orders at the level of Regional Tax Offices (RTOs) in contradiction of the provisions of the Ordinance. Such office orders are also not covered by the table pertaining to jurisdiction as stated in the Income Tax Ordinance, they stressed.
They said no commissioner can delegate statutory power to his subordinate, therefore, all the amendments of assessments under such delegation of authority are not sustainable in the eye of law, they added.