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FBR finds money laundering in solar panel imports of Rs69.5 billion.

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According to the comprehensive study by the Federal Bureau of Investigation, two significant corporations were involved in the purported outflow of an astounding amount of Rs72.83 billion from Pakistan.

The firms in issue reportedly imported solar panels from China, with noticeably inflated amounts shown on the official invoices. There are concerns about possible illegal financial activity after the money from these transactions was allegedly transferred to accounts in Singapore and the United Arab Emirates.

63 shipments had over-invoiced amounts, purportedly on behalf of importers, according to the probe. For each of these importing companies, a first information report has been registered. These businesses reportedly brought in solar panels valued at Rs. 72.83 billion, which they then sold for Rs. 45.61 billion.

The offices of these two companies, which were meant to be housed in the same building in Peshawar, were nonexistent, as the FBR’s investigating team shockingly discovered. Even more confusing the trail of the illegal activities were the fictitious addresses utilized for official papers.

Concerns were also raised by the income tax records of these corporations, which showed that the entities were fraudulent and had successfully embezzled Rs. 20.4 billion illegally. Against the two import companies concerned, formal complaints have been filed in response to these results.

Nonetheless, a few days ago, in Ahmedpur Sial tehsil of Jhang, a huge fraud scheme worth billions of rupees was discovered. Here, gullible residents and business owners were duped into falling for a gigantic solar panel scam.

Particularly for individuals who invested in solar energy solutions to offset their skyrocketing electricity bills, the scandal resulted in significant financial losses.

The scam, which has reportedly cost between Rs2 and Rs2.5 billion in Ahmedpur Sial alone, has severely damaged the afflicted residents, who say it has hurt them greatly. According to the victims, there may have been as much as Rs14–15 billion in fraud committed in Punjab overall.

Claiming to have started trading in solar energy after receiving large electricity bills, traders collected advance payments from customers without receiving any material. As the primary suspect in the scheme fled, the situation became even more grave for the local investors and store owners.

Today, Ahmedpur Sial’s business community is fighting to survive since their investments are gone and no items are being provided. One storekeeper bemoaned, “It has become difficult for us to continue our business,” and bemoaned the lack of attention paid to their predicament.

The chief minister of Punjab is currently being urged by the victims to act quickly. A high-level committee to look into the scam in detail and make sure the perpetrators are apprehended right away has been urged. Parties impacted expect that this will result in the return of their stolen money and the prosecution of those responsible.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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Provinces must inform IMF team of the postponed legislation for 45% agricultural tax.

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The visiting International Monetary Fund (IMF) delegation is scheduled to meet with provincial government leaders today to examine progress in implementing a tax on agricultural income of up to 45% and discuss the execution of other fiscal policies.

The agricultural income tax was to go into effect on January 1, 2025, after the provincial governments were given until October 31 to pass the necessary legislation. Nevertheless, the deadline was missed by every single province.

Rumor has it that neither Sindh nor Balochistan have moved forward with the tax on agricultural income bill, despite approval from the Punjab government and a draft being developed in Khyber Pakhtunkhwa.

All four provinces have signed the National Fiscal Pact as per the conditions set by the IMF. The reason(s) for the delays will be explained to the IMF delegation.

Federal spending on things like healthcare, social security, and regional infrastructure development is expected to be transferred to the provinces under the IMF agreement, according to sources from the Ministry of Finance. Provincial governments have been singled out by the IMF delegation as key players in tax and economic reform efforts.

Reviewed Here: FBR Excludes Mini-Budget and GST on Petrol from IMF Negotiations

The provincial budget surplus targets will also be briefed to the IMF delegation, according to the sources. The four provinces were supposed to achieve a total surplus of Rs342 billion in the first quarter, but they only managed to manage Rs182 billion. A large portion of the deficit was caused by the Rs160 billion budget deficit in Punjab.

The government’s pledge to retain the annual tax target of Rs12,970 billion was reaffirmed by the Federal Board of Revenue (FBR) on Wednesday, who also confirmed that no mini-budget will be implemented.

In line with continuing discussions with the IMF, FBR sources have also said that petroleum goods will not be subject to the General Sales Tax (GST).

According to sources, the International Monetary Fund has voiced its approval of Pakistan’s recent economic performance, highlighting the country’s improved fiscal policies, which have led to a 1.5% increase in the tax-to-GDP ratio, from 8.8% to 10.3%.

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Petrol prices are expected to experience another increase in Pakistan.

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The inflation-affected nation is expected to encounter another increase in petrol prices, with recommendations indicating a rise of Rs. 2.58 per litre for petrol and Rs. 5.91 per litre for high-speed diesel.

Sources indicate that, if sanctioned, petrol prices will ascend to Rs. 250.96 per litre, whereas high-speed diesel will be priced at Rs. 261.05 per litre.

Sources indicated that the suggested increase is due to the elevated premium on petroleum products in the worldwide market and rising import expenses.

The premium on imported petroleum products has increased, leading the government to contemplate pricing modifications effective November 16, sources indicated.

On October 31, the federal government published the prices of petroleum products for the upcoming fortnight, increasing the prices of petrol and high-speed diesel.

A notification announced an increase in petrol price by Rs 1.35, raising it to Rs 248.38 a litre. The price of high-speed diesel was fixed at Rs 255.14 per litre after an increase of Rs 3.85.

Also read: Pakistan’s weekly inflation jumps to 15.02pc

Simultaneously, the costs of light diesel and kerosene oil were reduced. The statement states that kerosene oil is priced at Rs 148.5 per litre following a reduction of Rs 4.92.

The cost of light fuel was reduced by Rs 2.61 to Rs 147.51 per litre.

The rampant hike in the prices came at the time when the weekly inflation, measured by the Sensitive Price Indicator (SPI), witnessed an increase of 0.28 percent for the combined consumption groups during the week ended on October 17, the Pakistan Bureau of Statistics (PBS) reported.

According to the PBS data, the SPI for the week under review in the above-mentioned group was recorded at 319.79 points as compared to 318.91 points during the past week.

In comparison to the same week last year, the SPI for the combined consumption group during the reviewed week experienced a 15.02 percent increase.

The weekly SPI with the base year 2015-16 =100 covers 17 urban centres and 51 essential items for all expenditure groups.

Likewise, SPI for the lowest consumption group of up to Rs 17,732 witnessed increase of 0.27 percent and went up to 313.74 points from last week’s 312.91 points.

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