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The IMF wants Pakistan to concentrate on rightsizing policies meant to reduce spending.

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The International Monetary Fund (IMF) has urged quick application of the rightsizing policies to lower spending.

During continuous negotiations with Pakistani officials on first economic review under the $7 billion loan agreement, the IMF team made demand.

The delegation negotiated rightsizing with Cabinet officials from the Division of Policy, Ministry of Finance, and Secretary of Cabinet.

Additionally looking for a strategy to address the income gap in the next quarter were the visiting officials.

The IMF has advised Pakistan to make sure the Rs300 billion tax collecting deficit is filled in the upcoming quarter. The Federal Board of Revenue (FBR) should take actions under the compliance risk management and risk improvement plan to cover the shortfall.

During the negotiations, the Pakistani officials briefed the IMF delegation on major retailers outside the tax net in large cities and measures to recover tax in high risk cases in Islamabad, Karachi, and Lahore.

The world lender underlined that the recovery from high-risk situations in these locations could help to offset the income deficit.

Official documents revealed that discussions were also held between IMF, the Ministry of Energy and Petroleum to review the performance of these sectors. The IMF delegation also held discussions on Islamic banking practices and procedures.

The IMF officials also held discussions with the State Bank of Pakistan (SBP) regarding the re-finance scheme transition and development finance and the operationalization of the bank resolution framework for the banking sector.

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SIFC Approves 50 MMCFD of Gas: Anticipated 35% Increase in LPG Imports

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The Special Investment Facilitation Council continues to play a vital role in enhancing Pakistan’s energy industry and fostering industrial operations. Measures are being implemented to authorize a daily gas supply of 50 million cubic feet.
To provide a dependable gas supply for National Steel Complex Ltd., alternatives such as local gas sources and imported LNG are under consideration. This project is anticipated to foster industrial growth, generate employment, and enhance the economy.
The Government emphasizes stable energy prices and a robust local economy. Maintaining a reliable energy supply is essential for fostering industrial growth.
Engro Vopak Terminal Ltd. has solicited the Port Qasim Authority to augment facilities for the uninterrupted supply of LPG and liquid chemicals. Augmenting the terminal’s capacity will optimize operations and elevate efficiency.
LPG imports are projected to increase by 35%, thereby enhancing industrial operations and fortifying the economy.

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FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

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The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

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National Skill Development: Government to Offer Training in Contemporary Skills to Youth: Ahsan

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Professor Ahsan Iqbal, Minister for Planning, Development, and Special Initiatives, has underscored that Pakistan’s economic future depends on private sector-led growth and comprehensive skill development.
During the Cothm Global convocation, he emphasized the necessity of equipping the workforce with contemporary skills to satisfy global economic requirements.
He stated that no nation has attained sustained growth without active participation from the private sector and a skilled workforce.
Ahsan Iqbal emphasized Pakistan’s unexploited potential in tourism and hospitality, while acknowledging that infrastructural deficiencies and workforce constraints impede advancement.
He emphasized the necessity of systematic reforms in Education and Industry to compete with regional economies such as Malaysia, Thailand, and India.
The Minister unveiled the Uraan Pakistan initiative, a strategic plan designed to elevate Pakistan to a three trillion dollar economy by 2047 through investments in critical industries, innovation, and youth skill development.

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