The Federal Board of Revenue (FBR) has imposed an 18 percent General Sales Tax (GST) on packaged food items, including formula milk. The decision was announced during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla. Chairman FBR, Amjad Zubair, told the committee that the GST will apply to all packaged items, including departmental stores …

Pakistan’s National Logistics Cell (NLC) has achieved a new milestone. This government agency, known for its transport and logistics services, has effectively expanded its trade reach to another key Central Asian country. This week, NLC successfully delivered its first truckload of 6 tonnes of cherries from Dara Khunjarab to China. Following this, a second consignment is set to depart from …

The Senate Standing Committee on Finance has approved a proposal to prohibit non-filers from traveling abroad. The meeting, chaired by Senator Salim Mandviwala, resulted in an important decision impacting individuals who fail to file their tax returns. According to the Chairman of the Federal Board of Revenue (FBR), actions against non-filers will be enforced under the Income Tax General Order. Exemptions …

Global rating agency Moody’s Friday said that Pakistan’s weak debt affordability drives high debt sustainability risks as the government spends more than half its revenue on interest payments. Moody’s commenting on newly finance bill for the fiscal year 2024-2025 said: “The budget estimated debt servicing payments to have increased by about 18pc for fiscal 2025 compared with a year ago. …

Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman is presenting the Punjab budget 2024-25 in the Punjab Assembly session under the chair of Speaker Malik Ahmed Muhammad Khan amid the opposition protest. The session kicked off with a delay of one hour and 38 minutes. The budget outlay of Rs5,446 billion, including Rs842 billion allocated for development expenditure and a surplus of …

The new income tax slabs for the salaried class under the federal budget 2024-25 revealed that a higher rate of income tax would now be applicable from July 1, 2024, where annual taxable income exceeds Rs. 600,000, high-level sources informed. In the new federal budget 2024-25, where taxable income is between Rs. 600,000 but does not exceed Rs. 1,200,000, the …

ISLAMABAD: Cash-strapped Pakistan witnessed the highest-ever single-year increase in tax exemptions or concessions, surging by 73.24 percent or Rs1.64 trillion in the outgoing fiscal year. The Pakistan Economic Survey 2023-24, released by Finance Minister Muhammad Aurangzeb on Tuesday, showed that the Federal Board of Revenue (FBR) doled out a record Rs3.879tr in FY24 compared to Rs2.239tr in FY23. The cost …

In a major relief for the country’s ill economy, World Bank (WB) has approved Rs1 billion for Pakistan. According to details, the World Bank has approved $1 billion for the construction of Dasu Dam. This financing will support the expansion of hydropower electricity supply, improve access to socio-economic services for local communities, and build the Water and Power Development Authority’s (WAPDA) …

The State Bank of Pakistan Monetary Policy Committee (MPC) on Monday reduced the policy rate by 150 bps to 20.5 percent, effective from June 11, 2024. The MPC noted that while the significant decline in inflation since February was broadly in line with expectations, the May outturn was better than anticipated earlier. The Committee assessed that underlying inflationary pressures are …

The International Monetary Fund (IMF) has demanded more tax collection from provinces and imposition of the agriculture tax. Official sources said that the IMF has urged for imposition of tax on the agriculture income adding that the farm sector paying low tax in Pakistan over its share of income. The monetary fund has also advised the government to use the …

Pakistan’s middle class should not expect much relief from the budget which is being prepared on IMF strict conditions as the government is all set to increase price of electricity and gas and impose taxes in the new financial year budget 2024-25. The government is preparing a federal budget for FY24-25 to secure a bailout package of up to $8 …

Remittances sent by overseas Pakistanis increased by 54 percent year-on-year (YoY) to $3.2 billion in May 2024 compared to inflows of $2.1 billion registered in the same period last year, according to the data on remittances released by the State Bank of Pakistan (SBP) on Friday. This is the highest-ever inflow of remittances recorded for a singly month. On a …

In yet another burden on Karachi electricity consumers, the power tariff has jacked up by Rs10.1 per unit. According to the notification issued by NEPRA, the electricity tariff was hiked on account of monthly Fuel charge adjustments (FCA) for July 2023 to March 2024. The notification further said, additional charges will be collected from consumers in Karachi from June to September …

The government has decided to increase the budget of the Ministry of Climate Change by Rs11.82 billion to protect Pakistan from the adverse effects of climate change. This substantial budget hike underscores the country’s commitment to environmental sustainability, with a particular focus on the ongoing Green Pakistan program, which was called the Ten Billion Tree Tsunami. The upcoming budget for …

The National Electric Power Regulatory Authority (NEPRA) has announced an increase in electricity prices by Rs3.33 per unit, placing an additional burden of over Rs35 billion on consumers. This adjustment comes as part of April’s monthly fuel adjustment, according to a notification issued by the authority. The Central Power Purchasing Agency (CPPA) had initially requested a price hike of Rs3.49 …

The power division on Wednesday refuted the speculations regarding ending the solar net metering policy. The power division spokesperson refuted the news regarding ending net metering policy, as fake and baseless. The news channels should have contacted the ministry before airing ‘unverified’ news items, the spokesperson said. The power division further stated that it has not received instructions on the …

The presentation of the federal budget 2024-25 is likely to be rescheduled, it was learnt on Tuesday. Interestingly, it is also unusual that the budget strategy paper (BSP) for the next fiscal year has not yet been ‘shared’ with parliament, though it is more because of political uncertainties emanating from the legal status of reserved seats and because of the …

Federal Board of Revenue (FBR) took against those who did not submit tax returns and so far mobile phone SIMs of 90,000 non-filers have been blocked in a phased manner. Data of 5000 non-filers are being given to telecom operators on a daily basis. According to the FBR spokesperson, the data was provided to the telecom companies in 18 groups. …

The National Electric Power Regulatory Authority (Nepra) has issued a notification announcing an increase in electricity prices as part of the quarterly adjustment for the current financial year. The price hike is set to impact consumers over the next three months. According to the notification, electricity prices will rise by Rs1.90 per unit for the month of June. For the …

Pakistan and Korea have pledged to strengthen economic cooperation and to work collectively towards addressing mutual concerns for the benefit of both nations. The pledge was expressed at a meeting between Finance Minister Muhammad Aurangzeb with Korean Ambassador and representatives of Korean Companies working in Pakistan in Islamabad today. The Minister underscored the significant macroeconomic improvements and noted the positive …

The coalition government is all set to present its first budget for FY25 on June 10, 2024, in the parliament. This timeline also correlates with the news, whereby, it was mentioned that the Staff Level Agreement (SLA) may be announced formally by the end of June 2024 or early July 2024, after assuring satisfactory compliance with prior actions and amendments in …

The demand for government-supplied electricity has significantly decreased as consumers and industrialists increasingly switch to alternative energy sources, primarily solar power. The trend has been reported by various distribution companies (DISCOs) to the National Electric Power Regulatory Authority (Nepra). Consumers across the country are moving away from the national grid due to the high cost of government-supplied electricity. Many people …

Amid rising inflation, electricity consumers in Pakistan are facing another financial blow as the National Electric Power Regulatory Authority (NEPRA) has approved a significant increase in electricity prices. The hike ranges from Rs1.90 to Rs3.28 per unit, adding to the financial burden of households and businesses alike. NEPRA has forwarded its decision to the government, citing the need for a …

The Board of Revenue Punjab has sent a summary to the government recommending an increase in stamp duties by 2 to 10 times. As per details, the Punjab government is likely to collect Rs4.21 billion annually through increase in stamp duties, according to sources. The revenue department has proposed to increase the rate of Rs100 affidavit to Rs300, while, the …

Pakistan and Kuwait are set to sign a $25 million loan agreement for the Mohmand Dam on June 3. This was decided at the Fifth Joint Ministerial Commission Meeting held in Kuwait on Thursday, co-chaired by Pakistan’s Minister of Privatization and Investment Abdul Aleem Khan and Kuwait’s Minister of Commerce Omar Saud Al Omar. The high-level event saw participation from …

The International Monetary Fund (IMF) has recommended the Pakistani government impose a tax on stationery items including books, pens, etc. Sources in the finance department told Media that the lender has asked the government end tax exemptions on books, pen, paper, sticky note paper, card board and other stationery items. Sources say that the FBR authorities will brief the prime …

The International Monetary Fund (IMF) has forecasted a significant increase in Pakistan’s trade deficit for the coming financial year, highlighting challenges ahead for the country’s economic stability. The Fund has estimated an increase in Pakistan’s exports and imports in the new financial year. According to IMF estimates, Pakistan’s trade deficit is projected to rise by approximately $4.165 billion. Sources indicate …

The International Monetary Fund (IMF) has ‘asked’ Pakistan to deregulate red meat and milk prices. Sources said the IMF asked the Pakistan government to take back the powers of regulating milk and red meat prices from the deputy commissioners and it should be decided by the market. Following the ‘demand’ of the IMF, the federal government has begun considering deregulation …

The Rising Pakistan Group, composed of young entrepreneurs from various sectors, recently met with representatives of the Special Investment Facilitation Council (SIFC) to discuss Pakistan’s economic future. The meeting was chaired by Dr. Nasir Shah Bukhari, Chairman of KASB, and featured a detailed briefing from Dr. Jahanzeb Khan, Secretary of the SIFC Apex Committee. The Rising Pakistan Group includes leaders …

The International Monetary Fund (IMF) has called for reforms in Pakistan’s energy sector to improve the economy.  An IMF team, led by mission chief Nathan Porter, concluded discussions with the authorities on Thursday after arriving in Pakistan on May 13, the lender said in a statement. “The mission and the authorities will continue policy discussions virtually over the coming days …

Pakistan’s inflation rate is poised to fall significantly in May, with projections indicating a drop below 14% for the first time in several months. According to a Consumer Price Index (CPI) preview, the nation’s headline inflation is expected to decelerate to approximately 13.9% year-on-year (YoY) in May 2024. This notable reduction is attributed to a considerable decline in monthly prices, …

The Oil and Gas Regulatory Authority (OGRA) has banned the sale and purchase of substandard LPG cylinders across Pakistan. In a notification issued by the OGRA, the body termed refilling of substandard LPGO cylinders as dangerous, notices were issued to the 313 LPG marketing and 19 cylinder-producing companies. The OGRA has warned the LPG marketing companies of selling LPG to …

Pakistan has experienced a remarkable 172% increase in foreign direct investment (FDI) in April 2024, with figures rising from $131.9 million to $358.84 million compared to the same month last year. This surge marks the highest FDI inflow in the past 51 months, according to data released by the State Bank of Pakistan (SBP). The Special Investment Facilitation Council (SIFC), …

Negotiations between Pakistan and the International Monetary Fund (IMF) on a new loan program are expected to conclude today, with the possibility of the IMF mission departing tonight without reaching a staff-level agreement. Sources close to the negotiations revealed that the IMF has set several pre-conditions that Pakistan must fulfil before a staff-level agreement can be reached. These conditions include …

Policy-level talks between Pakistan and the International Monetary Fund (IMF) are currently underway, focusing on crucial economic reforms, particularly in the gas sector. Sources reveal that the discussions include a comprehensive review of tariff adjustments, measures to reduce revolving debt, and broader energy sector reforms. A significant increase in gas tariffs is likely to be implemented from August, impacting various …

The Federal Board of Revenue (FBR) has intensified its drive against tax evaders, blocking over 3,400 mobile SIMs of non-filers so far, with many more to follow. According to FBR officials, the list of non-filers has been shared with telecom companies, and the process of blocking SIMs will continue gradually. The FBR has identified 56,671 individuals who have not filed …

Pakistan and Russia have pledged to further deepen their mutual relations, with a emphasis on enhancing cooperation in key areas such as trade, defense, and energy. Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar on Tuesday called on Russian counterpart Foreign Minister Sergei Lavrov on the sidelines of the Shanghai Cooperation Organization (SCO) Council of Foreign Ministers (CFM). During …

Policy-level talks between Pakistan and the International Monetary Fund (IMF) have commenced, focusing on crucial economic reforms aimed at reducing unnecessary expenses and securing a new loan program. Led by Finance Minister Muhammad Aurangzeb, the Pakistani economic team presented a comprehensive plan to the IMF team, led by Nathan Porter, to curtail expenses by approximately Rs300 billion in the next …

Punjab government has issued a notification to take steps to curb smuggling of wheat to Khyber Pakhtunkhwa. Provincial secretary food has directed for establishing check posts on main highways and handing over responsibility to eligible officers to prevent smuggling. Meanwhile, the Flour Mills Association sources said that thousands of trucks have been parked outside warehouses in KP.” Khyber Pakhtunkhwa government has …

Pakistan’s debt crisis has reached alarming levels, with interest payments on loans exceeding the government’s income by a staggering Rs 205 billion in just nine months. The country’s total debt and liabilities have ballooned to over Rs80,086 billion, according to the State Bank’s statistics. As negotiations with the International Monetary Fund (IMF) for a new bailout package continue, the government …