Day: January 12, 2022

The government has decided to conduct a comprehensive third-party security audit of the Federal Board of Revenue (FBR) to determine any vulnerabilities in the system, as it is constantly subjected to cyber-attacks.

Official documents of the bureau have revealed that the FBR system faces approximately an average of 71,000 cyber-attacks in a single month.

This volume has increased sharply over the past few years as the tools and methods available to hackers have become significantly powerful and developed.

The most recent cyber-attack on FBR’s data center occurred on Independence Day last year, 14 August 2021. The data of the previous cyber-attacks depict an increase in the frequency of attacks on days of national significance.

However, because of the security protocol already in place, the cyber-attack in August was restricted to the front end of the data center, and only the virtual machines were affected, which disrupted the day-to-day operations for a few days.

The initial forensic analysis conducted by the security team concluded that the Storage Area Network (SAN), on which the data is stored, has not been compromised, and to date, there is no indication or evidence that any taxpayer data was stolen, altered, or accessed in any way.

FBR took immediate action to restore the network, and the operations of the bureau were resumed quickly. There is an ongoing investigation into the current breach with the help of an internationally renowned cyber security firm. This firm is conducting a deep scan of the entire FBR network, including all machines located in the field formations, to locate the possible point of the initial breach.

The documents revealed that once this has been figured out and remedial actions have been taken, a comprehensive third-party security audit would be carried out to determine any remaining vulnerabilities. A comprehensive action plan to counter the vulnerabilities is being put together, and its execution will be monitored closely.

The federal cabinet has endorsed the operational emergency declared by the Chairman FBR and Secretary of Finance, under which FBR has been authorized to undertake emergency procurement of cyber-space and information security-related hardware, software, and services to protect the organization from such future attacks. Economic Coordination Committee (ECC) has already approved bridge financing of Rs. 3,860 million for this purpose.

Despite these precautions, it is pertinent to mention that the threat landscape is evolving at a faster pace than the organizations trying to protect themselves. Therefore, while initial procurements may protect FBR for the short and medium-term, continued investment into the IT system is required to protect and allow the organization to evolve into a true data-driven digital organization in the longer term.

Source: Pro Pakistani

An EU mission, the panel was informed, will visit Pakistan in February in connection with the extension of Good Governance and Sustainable Development (GSP Plus) status. It will monitor the situation of human rights, women rights, minority rights, labor rights, child rights, and climate change in the country.

This was revealed in a meeting of the Senate Standing Committee on Commerce held with Senator Zeeshan Khanzada in the chair, as the committee was briefed on the Pak–EU Bilateral Trade under the GSP+ on Wednesday.

During the course of the meeting, Advisor to the Prime Minister on Commerce Abdul Razak Dawood briefed the committee on EU GSP+ status and remarked that the Eu’s Special Incentive Arrangement for GSP+ incentive provided many Pakistani export-oriented products including garments, bed linen, terry towels, hosiery, leather, sports & surgical goods, etc duty-free access in the EU market.

The committee was informed that 66 percent of tariff lines from Pakistan benefit from tariffs (duty-free access), covering the top 10 product sectors of export to the European Union — all except cereals like rice. It was further informed that the rest of 24 percent enjoyed the Most-Favored Nation (MFN) tariffs. The scheme included a concession to Pakistan whereas no reciprocal concession was given to the European Union.

Pakistan’s exports to the European Union have increased by 47 percent from USD 6,095 million in 2013 -14 to USD 8,943 million in 2020-21, while the country’s imports have marked an increase of one percent from USD 4,545 million in 2013-14 to USD 4,588 million in 2020-21.

The panel was told that the total volume of Pakistan’s trade with the European Union has increased by 27 percent from USD 10,640 million in 2013-2014 to USD 13,531 million in 2020-21. The trade balance has increased in favor of Pakistan from USD 1,550 million in 2013 -14to USD 4,355 million in 2020-21.

The Advisor revealed that a meeting between an official of the Ministry of Commerce and a Director General of a Mexican company named SENASICA was held. He said the Mexican company’s official had proposed that Pakistan might extend an invitation to SENASIZA and OIRSA for a visit of an expert delegation to Pakistan. He added that the Ministry of Commerce had requested the Ministry of National Food Security and Research and the Department of Plant Protection to work on this proposal at the earliest.

The committee recommended introducing trade in Pakistani Rupees on all indigenous items.

The Senate panel decided to conduct meetings with the Ministry of Commerce on the tariff compositions. Secretary Commerce Ministry informed the committee that the tariff compositions for the financial year 2022-2023 would be finalized before 31 March 2022.

Senator Zeeshan Khanzada said the tariff composition was under the ambit of the Ministry of Commerce, so the Federal Board of Revenue (FBR) should not bypass the Ministry while determining the tariff rates as observed in the Money Bill 2021.

The committee recommended that the powers to determine the tariff composition should be shifted to the Ministry of Commerce.

Deputy Chairman Muhammad Mirza Afridi inquired about the mechanisms adopted to determine the tariff. Secretary Commerce informed the committee that the tariff compositions were determined with the consultation of the National Tariff Commission (NTC) and an economists team.

The committee was informed that Mexico imposed a ban on rice import from Pakistan due to the detection of Khapra beetle (a destructive pest of grain products) in some shipments. It was told that a technical expert from Mexico had visited Pakistan in December 2014, however, the ban was not lifted.

Speaking on the issue, Senator, Saleem Mandviwalla said, “a stock of 600 million dollars in Mexico was present at that time.” He said, “all the countries were able to lift the ban except Pakistan.”

The Chair directed the authorities concerned to provide information on the Textile Policy Review in the next meeting.

The Chairman committee directed the Ministry to hold meetings and pursue the list of banned items and make a way forward on the subject on the issue of adding non-Afghan origin goods which included perishable goods auto parts, spare parts, and tobacco in the allowed list of trading goods

Senators Fida Muahmmad, Danesh Kumar, Palwasha Muhammad Zai Khan, and Muhammad Abdul Qadir along with senior officials from the Commerce Ministry and the attached departments attended the meeting.

Source: Pro Pakistani

Pakistan Single Window (PSW) has introduced a new feature to enable the subscription of companies having only foreign nationals as directors.

The new functionality allows both local and foreign-owned companies that do not have a Pakistani national as “Director” or “Authorized Representative” registered with FBR or SECP to subscribe to the PSW system and conduct cross-border trade transactions.

The new feature also allows the Pakistani nationals being Principal Officers of such companies to complete biometric verification for PSW subscription as long as they are registered in the FBR/SECP database. In case neither Director nor Authorized Representative is a Pakistani national, the subscription will be completed based on an electronic verification of the banking information.

The PSW subscription module was formally launched in November 2021 by the Finance Minister, Mr. Shaukat Tarin. The PSW subscription module is fully integrated with the government databases for performing electronic Know-Your-Customer (KYC) protocols. It offers a completely paperless solution for online subscription and registration of individuals, products, and entities for compliance with customs and other regulatory requirements.

“We continue to upgrade our services and enhance the scope of different products to meet user requirements,” stated the CEO of PSW, Mr. Aftab Haider, while speaking on the rollout of the new update. “The system is being developed to ensure ease of doing business in Pakistan, and we look forward to continuous feedback from the business community for the system’s improvement,” he added.

Pakistan Single Window (PSW) is an initiative of Pakistan’s federal government to transform the trade and industry ecosystem, and it is expected to be formally inaugurated in March 2022.

Source: Pro Pakistani

Pakistan’s economic fundamentals and overall performance remained stable during the COVID-19 pandemic, said Governor State Bank of Pakistan (SBP) Dr. Reza Baqir.

Addressing ‘The Future Summit’ in Karachi, Dr. Reza Baqir reflected on how Pakistan’s economy performed during COVID-19 and how the country’s economic fundamentals remained stable despite the restraints caused by the pandemic.

The Governor SBP governor stated, “Pakistan’s experience during the Covid-19 pandemic stands out globally, and I, as a Pakistani, feel proud about the country’s coronavirus journey.”

He explained that Pakistan was confronted with historic economic challenges and had to, on several occasions, approach the international lenders for funds because of fiscal deficit and current account deficit.

He remarked how Pakistan managed to reduce its debt-to-GDP ratio as compared to advanced economies where it climbed by 18 percent on average, while the debt-to-GDP ratio in emerging markets increased by 10 percent.

“Our GDP growth during Covid was negative 0.5 percent, as compared to other countries that saw GDP decline of negative 5-10 percent. The reason behind Pakistan’s low decline was the proactive response of the government,” said Baqir.

Regarding the ominous rise in Pakistan’s current account deficit, the Governor SBP cited the surge in prices of commodities in international markets. The surge in global commodity prices, according to him, should be recognized as both a global and domestic concern.

He further mentioned the country’s reserves, which served as an indicator to predict pressure on the balance of payment and exchange crises. He said, “in 2019, Pakistan’s gross reserves were about the same as its negative forward position, meaning that we stood at [a] net nil position. Currently, despite the COVID-19, we have increased our net foreign exchange buffers.”

The exchange rate and policy rate, according to Baqir, are tools we can utilize to keep the current account deficit at a sustainable level. He said the average exchange rate in 2021 remained unchanged from the previous year despite various fluctuations.

“The advantage of having a responsive exchange rate is that it acts as a natural shock absorber, and CAD remains at a sustainable level,” he said.

Source: Pro Pakistani

The Pakistan Tehreek-e-Insaf (PTI)-led coalition government has finalized the preparations to get the Finance (Supplementary) Bill, 2021 passed from the National Assembly on Thursday.

Talking to media, Advisor to Prime Minister on Parliamentary Affairs Dr. Babar Awan, said the National Assembly would approve the mini-budget in its session on January 13.

Nonetheless, opposition leaders have strongly opposed the mini-budget in their speeches. They, and the important PTI allies such as Muttahida Qaumi Movement and Grand Democratic Alliance, have demanded the removal of taxes proposed through the mini-budget on essential consumer items.

Meanwhile, Prime Minister Imran Khan has also been busy convincing different party leaders to vote for the mini-budget. He met Moonis Elahi, a leader of the Pakistan Muslim League Q, and Member National Assembly (MNA) Ali Zaidi.

The government needs a simple majority in the National Assembly for the approval of the mini-budget, and the coalition parties will play an important role in this regard.

Sources believe that the coalition parties and some members from treasury benches have reservations over the mini-budget as they fear it would cause inflation and the public would face the consequences.

On the other hand, the opposition parties also want to reject the mini-budget and they are optimistic that they will succeed in the Parliament.

Looking at the numbers in the National Assembly, the PTI-led coalition government has a simple majority in the Parliament. It will be important for the treasury bench to ensure all members of coalitions parties are present in the house to vote.

Commentators say that the Prime Minister will have to take a vote of confidence in case the mini-budget fails in the National Assembly like the last year. The Prime Minister had taken a vote of confidence from the National Assembly when the PTI had lost the election of the Senate on an Islamabad seat.

According to the official estimates, the government wants to impose taxes and duties of Rs. 343 billion through the mini-budget. The officials believe that out of the total amount, Rs. 280 billion would be refunded or adjustable taxes. They say that tax on import of machinery will be refundable and government estimates indicate that Rs. 120 billion will be the refundable amount on import of machinery. They also believe that Rs. 160 billion will be refundable from the pharmaceutical industry. Around Rs. 70 billion will be generated from the import of luxury items.

Sources said the documentation of the economy was the main priority of the government instead of raising tax through the mini-budget. This is the exact line of the International Monetary Fund as it wants to eliminate the distortions in the tax system of the country due to tax exemptions granted to strong and powerful lobbies.

The meeting of the Executive Board of IMF is expected on 28 or 31 January 2022.

Source: Pro Pakistani