Business

Following an IMF-backed tariff cut, car prices are predicted to decline.

Published

3 days ago

Bilal

An agreement has been struck between Pakistan and the International Monetary Fund (IMF) to cut the weighted average tariffs of the nation by half, from the present rate of 10.6 percent to 6 percent over the next five years.

By making Pakistan the nation with the lowest tariffs in South Asia, this calculated effort aims to increase foreign competition in the country’s economy.

The cut is anticipated to directly affect local auto prices, which are predicted to fall due to lower import and associated expenses in the automotive industry.

With the ultimate objective of reaching a 6 percent rate by 2030, the tariff reductions will go into effect in July 2025.

The National Tariff Policy, which seeks to lower tariffs to 7.4 percent by 2030, and the Auto Industry Development and Export Policy (AIDEP), which calls for even more reductions in the automotive sector, will serve as the two main frameworks under which this new policy will be implemented. The tariff will now be set at 7.4 percent, which is little higher than the earlier objective of 7.1 percent, excluding the automobile industry.

Notably, the policy will also result in the removal of various concessions under the fifth schedule of the Customs Act, an 80 percent reduction in regulatory duties, and the total elimination of additional customs duties.

Additionally, beginning in July of this year, a 2 percent duty on zero-tariff slabs and a 7 percent additional customs duty on specific commodities will be eliminated.

The federal government has committed to a 6 percent target, notwithstanding the IMF’s initial proposal to lower the weighted average tariff to 5 percent. Before the end of June, the federal cabinet is anticipated to accept the new tariff policy, which will then be fully implemented in the 2025–2026 budget.

By 2030, all extra customs and regulatory levies pertaining to the automobile industry are expected to be eliminated, with a 20 percent import tariff cap. Significant cuts of 55 to 90 percent will be made to the regulatory duties on automobiles in the first year, with additional reductions to follow in the following years. Along with the steady reduction of current tariffs on various slabs, a new 6 percent customs duty slab will also be created.

Business

After the IMF accord, PSX records significant gains.

Published

10 hours ago

Bilal

The Pakistan Stock Exchange (PSX) gained momentum as the benchmark KSE-100 Index gained more than 1,300 points during the opening hours of trade on Wednesday, just hours after the International Monetary Fund (IMF) and Pakistani authorities reached a staff-level agreement on the first review under Pakistan’s Extended Fund Facility (EFF) and on a new arrangement under the Resilience and Sustainability Facility (RSF).

After the staff-level deal with the global lender, the bulls quickly recovered, and the KSE-100 Index was trading at 118,220 points.

Market analysts claim that a recent study on the viability of the Reko Diq project in Balochistan by the Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) gave investors encouraging indications.

Automobile assemblers, cement, chemical, commercial banks, oil and gas exploration firms, OMCs, power generating, and refineries were among the major industries that saw significant purchasing.

Aside from that, following positive macroeconomic news, index-heavy equities such as OGDC, MARI, PPL, HUBCO, PSO, SNGPL, and SSGC also saw positive trading.

After moving south, PSX gains ground.

Following a weak day, the Pakistan Stock Exchange (PSX) saw some improvement during Tuesday’s trade.

The KSE-100 Index lost 562 points at the start of trading, falling to 115,877. However, it quickly bounced back, rising 400 points to 116,904.

After dropping 2,002 points, the PSX ended Monday’s trading session at 116,439 points. Selling pressure caused it to plummet.

Business

PEL Ships Transformers to Start US Exports

Published

1 day ago

Bilal

Through stable and efficient trade regulations, the Special Investment Facilitation Council has helped promote Pakistani industrial exports internationally.

With the first shipment of transformers departing Pakistan for the United States on March 13, 2025, Pak Electron Limited formally started exporting its goods to the United States.

PEL wants to increase its worldwide visibility and investigate new overseas prospects. Under its power and appliances segment, the company produces high-quality goods like transformers and home appliances.

Additionally, PEL has alliances with major global corporations including General Electric, Mitsubishi, and Hitachi.

Business

The FBR has extended the deadline for sales tax returns until March 27.

Published

1 day ago

Bilal

The Federal Board of Revenue (FBR) extended the deadline for submitting Sales Tax and Federal Excise reports to March 27, 2025, to assist taxpayers.

The FBR has issued an official notification concerning the prolongation, as per reports.

The initial deadline for submitting Sales Tax and Federal Excise reports for the February 2025 tax period, originally set for March 18, 2025, has been extended to March 27, 2025.

The determination has been rendered pursuant to Section 74 of the Sales Tax Act 1990 and Section 43 of the Federal Excise Act 2005.

FBR officials indicated that the extension is intended to alleviate challenges encountered by taxpayers, permitting them to complete their returns within the specified timeframe without inconvenience.

Taxpayers are encouraged to utilize the extended deadline and submit their returns punctually to evade any possible fines.

The FBR regularly extends tax return deadlines to assist the corporate sector and facilitate seamless tax compliance.