The poor and the poorly paid: statistics
Pakistan has many economic strata — those who can afford six-figure Eid clothes without batting an eye and those who are among the least paid globally. A comparison in dollar terms of the average monthly salaries of different countries places Pakistan among the bottom three. The data, extracted from information provided by contributors to the numbeo.com website, is all the more startling because the numbers were input by people with access to the internet, technology, and enough literacy to navigate the World Wide Web. At around $180, or around Rs50,000 a month, an average salary is barely enough to meet a living wage — the amount that is required for an individual to meet his basic necessities and live with dignity.
Leading business leaders present a couple of proposals
Leading business leaders have presented a couple of proposals to find solutions to the problems arising in the wake of a sudden implementation of the Axle Load Regime (ALR) of the National Highway Safety Ordinance (NHSO) 2000.
The ALR, re-implemented on Nov 12, 2023, is hitting local trade, exports and imports. They said the authority concerned imposed the ALR and adopted a pitch that highways are being broken.
The previously implemented ALR in 2019 also caused disruptions in the supply chain of all commodities and products including rice, wheat, wheat flour, grains, feed, fertiliser, edible oil, cement, coal, steel, cotton and others.
They said billions of rupees have been spent on highways and motorways which cannot afford heavy transport. Implementing the ALR at once will trigger another wave of inflation.
Overhauling Pakistan’s tax procedure
I A Mayburov (2007) defines the Tax System as ‘a system that is a principle-based integral unity of its main interconnected and interrelated elements. These elements are the regulatory legal basis of taxation, the set of taxes and fees, the payers of taxes and fees, and the mechanism of tax administration’. Considering these elements in relation to Pakistan’s tax system reveals the need for comprehensive overhaul. The budgeted revenue receipts for the fiscal year 2023-24 are Rs12.378 trillion, with tax revenue receipts budgeted at Rs9.415 trillion, constituting 76 percent of the total revenue receipts. Projections for fiscal years 2024-25 and 2025-26 anticipate increases in tax revenue, reflecting a strategy for growth. The challenge remains on achieving these targets, whether through traditional methods of taxing existing taxpayers or through a fundamental overhaul of the tax system. Success lies in the latter, with a focus on modernisation and efficiency.
Exporters can import raw material conditionally: federal government
The Federal government has decided to conditionally allow goods exporters to import raw material, machinery and equipment without paying duties and taxes under the Export Facilitation Scheme.
Exporters will have to obtain approval from the collectorate for the import of raw material, machinery and equipment. They will be able to import machinery and equipment worth up to 50 percent of the annual export value.
In order to import raw material for export contracts worth more than $1 million, the approval of the chief collector must be taken.
According to sources, the Federal Board of Revenue (FBR) has introduced amendments to the Customs rules to allow goods exporters to conditionally procure raw material, machinery and equipment under the Export Facilitation Scheme without paying duties and taxes.
Pakistan receives an encouraging response from ambassadors
Pakistan has received an encouraging response from ambassadors of numerous countries who have appreciated the Special Investment Facilitation Council (SIFC) for effectively addressing the challenge of red tape and facilitating ease of doing business.
Pakistan has been facing criticism from foreign investors because of inconsistency in policies and the hurdles created by the civil bureaucracy and political governments.
SIFC has assured continuity of policies and has been able to address concerns of foreign investors. It has also given assurances of expediting work on the projects being executed in the country.
Prime Minister Shehbaz Sharif, in a recent meeting, appreciated the robust SIFC mechanism, which had effectively addressed the issue of red tape and was ensuring ease of doing business.
Inflation down by 0.09pc
Inflation decreased by 0.09 percent in the week ending March 28, driven by a drop in food prices, marking the second consecutive week of deceleration compared to the previous week.
According to Pakistan Bureau of Statistics’ data, the weekly inflation rate remained slightly elevated at 29.41 percent in the reviewed week compared to the same week last year. Weekly inflation is measured through the Sensitive Price Indicator, which contains 51 essential kitchen items.
During the week, out of 51 items, prices of 04 (7.84 percent) items increased, 18 (35.30 percent) items decreased, and 29 (56.86 percent) items remained unchanged from the previous week. Tomatoes led the list of price drops on a week-on-week basis, decreasing by 12.04 percent to Rs92.71/kg. This was followed by wheat flour, dropping by 3.80 percent to Rs2,628.69/20-kg bag.
The prices of other commodities reduced by up to 2.59 percent, including garlic, LPG, onions, potatoes, bananas, pulse gram, and sugar. However, the prices of chicken, eggs, shirting, and rice Irri 6/9 increased by up to 5 percent in the week.
The year-on-year trend depicts an increase of 29.41 percent, with gas charges for Q1 making a heavy contribution to the 570 percent rise in its price. Other commodities increased by up to 86.05 percent, including chilli powder, onions, men’s sponge chappal, men’s sandal, garlic, gur, chicken, salt powder, sugar, energy saver, and pulse mash.