Business

FBR assessment reveals 90% of dollars in Pakistan being hoarded

Published

2 years ago

Farwa

FRB member says govt making efforts for signing EDI agreements.
Says vigilance increased in bordering areas to curb terror financing.
FBR would devise action plan to curb mis-invoicing, smuggling.

ISLAMABAD: About 90% of the dollars are being hoarded in Pakistan while currency smuggling has just a 10% share, revealed a member of the Federal Board of Revenue (FBR) while talking about the assessment carried out by the board.

According to The News, Mukarram Jah Ansari — who is an FBR member — said that the customs department has increased vigilance at the entry and exit points of the country including airports to prevent currency smuggling.

“It’s the responsibility of other regulators and law-enforcement agencies to take action against those involved in speculation and hoarding of the greenback. We have found that the US dollar is cheaper in the neighbouring country; however, we have increased our vigilance in the bordering areas to curb terror financing,” he said.

Ansari said that the FBR seized dollars and Saudi Riyals in a few instances. However, as per the assessment, there is only 10% smuggling, while 90% is hoarding of dollars in the country.

The FBR member also said that the government is making efforts for signing the Electronic Data Integration (EDI) agreements with different Central Asian Republics (CARs) — Russia and the United Arab Emirates (UAE) — to curtail mis-invoicing and under-invoicing.

He dwelt upon various issues for bringing reforms into customs for improving the overall performance of the tax collection agency. He said Pakistan and China had signed an EDI agreement and both sides were exchanging trade data electronically.

After hectic efforts, he said, China agreed to extend the aggregate value of goods on a quarterly basis. Now discrepancy in the bilateral trade-related data has decreased significantly and is less than $3 billion, which a few years back possessed a difference of over $6 billion on per annum basis.

He said the customs department joined hands with the Pakistan Institute of Development Economics (PIDE) for conducting studies on mis-invoicing and smuggling with the mandate to come up with the exact levels. The result of the studies would be available by the end of the ongoing financial year 2022-23, he added.

He said the FBR would devise an action plan in order to curb mis-invoicing and smuggling. It’s relevant to narrate that the multi-billion dollar losses are estimated to harm the economy in the wake of under-invoicing on an annual basis.

To another query about the EDI agreement, the FBR member said the government would move ahead with signing EDI agreements with Uzbekistan and other CARs — Russia, North Africa and the UAE.

He said Pakistan Single Window and China Single Window would cooperate under the agreement. He said the manual One Customs would be closed down by March 2023 and WeBOC (Web-based One Customs) would be placed.

Ansari said the work on PSW was underway, as 77 entities would be integrated for the clearance of goods at entry and exit points in the country. The State Bank of Pakistan and commercial banks would integrate under the PSW soon.

The FBR member said in order to control currency smuggling, they had developed an electronic application that would be launched within the ongoing month.

He said that this application will help declare currency through an online application and then scanning will share the whole information with the customs departments at airports, adding that the customs took stern action against Kheppeas and over two dozen FIRs were registered and persons involved were also arrested to penalise those involved in currency smuggling.

Ansari said he had instructed the collectorates to select 10 cases in each jurisdiction every month and offered them to settle the cases through the Alternative Dispute Resolution Committee (ADRC). He said the mechanism for ensuring barter trade would be finalized, which would help promote regional trade in the context of Iran and other states.

Business

The amount of trade between Saudi Arabia and Pakistan hits $700 million.

Published

11 hours ago

Farwa

Through the Special Investment Facilitation Council (SIFC), Pakistan’s trade connections with Saudi Arabia have grown significantly, with bilateral trade volume rising from $546 million to $700 million and exports to the Kingdom growing by 22%.

As bilateral economic cooperation continues to grow, Saudi investors have shown a strong interest in Pakistan’s construction, energy, agricultural, and information technology sectors. The objective for exporting IT services between the two countries has been raised from $50 million to $100 million.

Saudi Arabia has set up a help desk dedicated to making it easier for Pakistani IT companies to register in the Kingdom in order to expedite commercial procedures. The goal of this program is to speed up economic collaborations between the two countries and lower administrative barriers.

The well-known Saudi restaurant chain AlBaik has revealed plans to open locations in Pakistan, which is a big step for the food service industry and should lead to the creation of new job possibilities in the area.

Officials have noted that stronger business links between the two countries lead to greater economic stability, and the SIFC has played a crucial role in promoting these trade advancements. For bilateral trade and investment projects, the Council remains a crucial facilitator.

According to a trade official with knowledge of the developments, “the establishment of dedicated support mechanisms, such as the help desk for IT companies, demonstrates a commitment to long-term economic partnership,” The goal of these programs is to improve the conditions for commercial collaboration between the two nations.

The increasing amount of trade and the diversity of investment sectors show that Saudi Arabia and Pakistan’s economic ties are changing as both countries seek to deepen their business alliances in a number of industries.

Business

After more than 50 years, Bangladesh and Pakistan resume direct trade.

Published

11 hours ago

Farwa

After more than 50 years, the two governments will resume direct bilateral trade, with Bangladesh’s food ministry announcing Sunday that it will receive a supply of 25,000 tonnes of rice from Pakistan next month.

After former Prime Minister Sheikh Hasina was overthrown last August, relations between Bangladesh and Pakistan have begun to improve after decades of tense relations.

Since then, there have been increased bilateral interactions between Bangladesh and Pakistan. Nobel laureate Muhammad Yunus, the interim government’s senior adviser, has met twice with Pakistani Prime Minister Shehbaz Sharif.

According to the food ministry, Dhaka completed an agreement earlier this month to import grains from Pakistan.

“On March 3, the first shipment of 25,000 tonnes will reach Bangladesh,” Zia Uddin Ahmed, a ministry assistant secretary, told Arab News.

“This is the first time that Bangladesh has started importing rice from Pakistan at the government-to-government level since 1971.”

Following direct maritime contact between the two South Asian countries in November—a Pakistani cargo ship stopped in Bangladesh for the first time since 1971 with imports and exports arranged by private companies—their trade relations grew.

Resuming trade with Pakistan is a significant step for Bangladesh, according to Amena Mohsin, a lecturer at North South University and a specialist in international relations.

“We want to see progress in our bilateral relationship with Pakistan. Most significantly, we are currently going through a low point dispute with India, even though we constantly diversify our partnerships.

This most recent move to purchase rice from Pakistan is really significant in this context,” she told Arab News.

Business

The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

Published

3 days ago

Farwa

As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.