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Forex dealers would be brought under tax net, Gen Asim Munir assures businessmen

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1 year ago

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  • Business leaders meet COAS at Corps Commander’s Headquarters in Lahore.
  • COAS highlights potential of SIFC to bring foreign investment of $100bn.
  • Reduction in income and sales tax rates on electricity bills proposed.

LAHORE: As the Pakistani rupee lost significant ground against the US dollar, Chief of the Army Staff (COAS) General Asim Munir has said that money exchanges would be brought under the tax net.

He stated this in a meeting with the business community at the Corps Commander’s Headquarters in Lahore on Sunday, reported The News.

Gen Munir assured the businessmen that transparency in dollar exchange and interbank rates would be ensured.

A statement issued here by the Lahore Chamber of Commerce and Industry (LCCI) stated that the association’s president Kashif Anwar, alongside prominent business figures, met the army chief and discussed the economic challenges facing the country.

Interim Punjab Chief Minister Mohsin Naqvi was also present at the meeting.

General Munir highlighted the pivotal role of the Special Investment Facilitation Council (SIFC), emphasising its potential to attract substantial investments of up to $100 billion from countries such as Saudi Arabia, the UAE, Kuwait, and others.

To bolster economic decision-making, he revealed the formation of task forces focused on economic matters and different sectors.

Kashif Anwar, in alignment with the broader business community, recommended active engagement with all chambers to incorporate diverse perspectives into the task force’s agenda.

Addressing critical issues faced by the public, the LCCI chief proposed a reduction in income and sales tax rates on electricity bills. He noted that the populace grapples with the burden of high taxation on electricity, impacting daily lives, businesses and common people.

He recommended a pragmatic approach to fuel adjustment charges, advocating for their collection during the winter months when electricity consumption is lower, alleviating financial stress on consumers.

Recognising the pivotal role of exchange rates in Pakistan’s economic landscape, Kashif Anwar urged for greater control over the rates of the US dollar in both interbank and open markets.

The LCCI president also pointed out that the disparity between the State Bank’s rate and the Hundi rate (illegal money exchange business) often leads to a preference for Hundi channels when it comes to remittances. He emphasised that if these rates were aligned, remittances would naturally flow through the SBP.

Anwar emphasised the importance of an enhanced and sustained interactive dialogue between the business community and relevant authorities. He expressed concerns over the prevailing lack of responsiveness to suggestions put forth by the business sector.

Furthermore, Anwar called for a unified commitment from political parties, suggesting the signing of a charter of economy as a precondition before any upcoming elections.

Expanding on the army chief’s earlier remarks regarding the existence of a grey economy, accounting for two to three times of the overall documented economy, he proposed an innovative approach. He recommended incentivising the grey economy sector to transition into the formal, white economy, offering a strategic solution to combat this pervasive issue.

The LCCI chief said that the expansion of the tax base will remain elusive as long as the grey economy remains unincorporated, unable to contribute to the formal white economy.

This gathering exemplified the shared dedication of both the business community and the military leadership to work collaboratively in addressing pressing economic challenges and propelling the nation toward growth.

As Pakistan continues to navigate economic complexities, this constructive dialogue signifies a promising step towards finding practical solutions and fostering economic prosperity for the nation.

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Business

It is anticipated that 150 ships would arrive at Gwadar by the year 2045, allowing the port to handle fifty percent of all imports.

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3 days ago

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In an effort to strengthen the port’s economic importance, the Federal Government has made the decision to direct fifty percent of all imports from the public sector to Gwadar Port.

By taking this action, which has the backing of the Special Investment Facilitation Council, the port’s financial situation is going to be improved.

The Cabinet will be presented with a summary of imports through Gwadar by the Ministry of Maritime Affairs, which will take place after Prime Minister Shehbaz Sharif’s recent trip to China.

When the next Cabinet Meeting takes place, Ahsan Iqbal, the Federal Minister for Planning, Development, and Special Initiatives, will examine the Chinese offer for the Karachi to Hyderabad Section of the ML-1 Project and bring it to the Cabinet.

Company preparations for the Shanghai International Import Expo, which will take place in November 2024, are being made by the Board of Investment and the Ministry of Commerce of Pakistan.

One of the most important aspects of the China-Pakistan Economic Corridor is the Gwadar port, which serves as a significant commerce route connecting China, the Middle East, Africa, and Europe. At this time, the Gwadar Port is able to accommodate two huge ships, and by the year 2045, it is anticipated that it would be able to handle up to 150 ships.

By developing the Gwadar Port, regional connectivity would be improved, employment will be created, and international investment will be attracted.

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The price of gold in Pakistan has experienced a significant surge.

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3 days ago

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Gold prices in Pakistan surged significantly on Thursday following two consecutive days of decline, with the price per tola rising by Rs2,000 to reach Rs262,100. This increase was in accordance with the downward trend in international market values.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price of 10 grams of 24-karat gold rose by Rs1,714, reaching Rs224,708.

Conversely, the world gold market experienced an upward trajectory. According to the APGJSA, the global price of gold surged to $2,503 per ounce following a $22 gain during the trading session.

The local market experienced a significant decline in silver prices, decreasing from Rs50 to Rs2,900 per tola after a prolonged period.

The local market’s gold prices remain subject to the ever-changing dynamics of the international market, as well as domestic considerations such as currency exchange rates and domestic demand.

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The government has not met the deadline set by the International Monetary Fund (IMF) for the approval of a $7 billion loan.

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4 days ago

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On Tuesday night, there were virtual talks between representatives of the Finance Ministry and the IMF delegation, with the main topics being external finance and income generation.

According to people familiar with the situation, no date has been set for the IMF’s Executive Board to approve the loan despite the ongoing negotiations.

Officials from the Finance Ministry informed the IMF mission about the government’s initiatives to get outside funding during the discussions. Updates on loan rollovers and fresh finance commitments from allies were included in this. According to sources, the IMF has received a schedule, and loan rollovers are expected to be finished by the end of next week.

The $12 billion in debt must be rolled over before the loan can be approved by the Executive Board, according to the IMF mission.

In the virtual discussions, representatives of the Federal Board of Revenue (FBR) conversed with the IMF team over the revenue deficit. The FBR must reach its revenue goals for this month, according to the IMF mission. As a result, the IMF has asked the FBR to submit a thorough strategy outlining how it will close the gap left by the shortfall and guarantee that revenue goals are reached.

Apart from the conversations on outside funding, there are rumors that the Finance Ministry is actively holding talks with commercial banks in order to obtain new funding. According to reports, negotiations are taking place with four distinct sources for commercial loans, which are anticipated to support the government’s overall financial plan.

Finance Minister Muhammad Aurangzeb disclosed on Tuesday that the IMF was in favor of introducing targeted subsidies. He said that qualifying recipients might receive these subsidies through the Benazir Income Support Programme (BISP).

In order to guarantee consistency, the minister announced that this week’s talks with chief ministers will focus on implementing a similar policy across the country. He was having a casual conversation in parliament with the journalists.

In response to queries about outside funding, Aurangzeb revealed a $2 billion deficit and said that talks to close this gap are progressing. He stressed how crucial it is to obtain business loans.

He went on, “At this point, there’s a need to secure an agreement for commercial loans, not exactly their issuance,” emphasizing that debt rollover negotiations are nearing their conclusion and doing well. The minister expected that these developments would shortly be reported to the governments of allied countries by relevant authorities.

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