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No rise in taxes on non-filers’ cash withdrawals: PM directives

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The Federal Board of Revenue (FBR) has revealed that Prime Minister Shehbaz Sharif has rejected a plan to raise the tax on cash withdrawals from banks for non-filers in the run-up to the 2024–25 budget.

For bank withdrawals exceeding Rs50,000 made by non-filers, the idea was to increase the tax rate to 0.9%.

On bank withdrawals over this amount, non-filers are now charged a 0.6% withholding tax. Projected to bring in Rs20 billion from non-filers, the proposed hike was part of a larger plan to raise more money. In light of the possible financial hardship on non-filers, the prime minister chose not to approve the hike.

FBR officials noted the government’s position on preserving the current tax structure for these transactions, saying, “Prime Minister Shehbaz Sharif has rejected the proposal to increase the tax on cash transactions for non-filers.”

Since this decision affects the ongoing debates about fiscal policy and economic reforms, FBR officials have been required to inform the Finance Ministry in accordance with the PM’s directive.

The first suggestions for raising government employee pay have been made public by the Ministry of Finance. Although the PM will make the final decision after consulting with the Finance Ministry and the cabinet, sources within the ministry estimate a potential 15% to 20% pay increase for federal employees.

A significant recommendation is to raise the officials’ compensation policy. A suggested raise of Rs65,000 to Rs105,000 has been made for officers up to grade 20. The suggested salary increase for grade 21 officers is Rs120,000, up from Rs75,000. There could be a pay hike for grade 22 officers from Rs95,000 to Rs155,000.

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

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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.

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In January 2025, RDA inflows reach 9.564 billion USD.

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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