Category: Business

Negotiations on the first review of Pakistan’s $3 billion Standby Arrangement have turned up the heat as the International Monetary Fund (IMF) has called for the imposition of taxes on the retail, real estate, and agricultural sectors, Federal Bureau of Revenue (FBR) sources told ProPakistani.

Technical-level talks between Pakistan and the IMF are ongoing and many critical avenues for bridging financing needs have been identified.

The IMF has particularly suggested stricter enforcement of real estate tax. Also, in case of a shortfall in tax revenue, a fixed tax may be imposed on retailers during the ongoing financial year. The lender has recommended that the tax regulator may exercise its powers to levy tax on retailers after December, FBR sources added.

It was briefed that consultation with provinces is mandatory for imposing taxes on the agricultural sector. Meanwhile, FBR has submitted a report to the IMF on potential revenue by the end of the current financial year. The lender’s mission will respond to the revenue report in two days, sources added.

Notably, the IMF was also briefed on the Tax Policy and Management Task Force under the purview of the tax regulator.

Talks with the IMF commenced late last week with both sides sharing critical data for fast-tracking the ongoing review. If the lender is satisfied with Pakistan’s performance during the review, a second tranche of $700 million is expected to be disbursed.

The successful outcome of the review will undoubtedly have far-reaching implications for the country’s economic stability and its ability to secure continued financial support from the crisis lender.

Source: Pro Pakistani

The price of gold in Pakistan increased by Rs. 200 per tola on Wednesday to settle at Rs. 214,200.

According to the data released by the All-Pakistan Gems and Jewellers Association (APGJA), the price of gold (24 carats) rose by Rs. 200 per tola to Rs. 214,200 while the price of 10 grams registered an increase of Rs. 172 to close at Rs. 183,642.

The price of gold fell by Rs. 400 per tola on the opening day of the week i.e. on Monday while the price declined by Rs. 200 per tola yesterday (Tuesday).

In the international market, spot gold was largely unchanged at $1,967.10 per ounce by 0751 GMT, while the US gold futures stood at $1,974.10

Source: Pro Pakistani

The Securities and Exchange Commission of Pakistan (SECP) has allowed China Chengxin (Asia Pacific) Credit Rating Company Limited as an internationally recognized credit rating institution to enter into joint venture or technical collaboration arrangements with any credit rating company in Pakistan.

In this connection, the SECP issued a notification on Wednesday.

According to the S.R.O1482(I)/2023, in exercise of the powers conferred under section 40B of the Securities and Exchange Commission of Pakistan Act, 1997 read with clause (g) of regulation 4 of the Credit Rating Companies Regulations, 2016, the Securities and Exchange Commission of Pakistan is pleased to notify the China Chengxin (Asia Pacific) Credit Rating Company Limited as internationally recognized credit rating institution for the purpose of entering into joint venture or technical collaboration arrangement with any credit rating company in Pakistan.

Source: Pro Pakistani

The Ministry of Finance has scrapped the public holiday on 9 November and declared it a working day to cater pre-scheduled meetings with the International Monetary Fund (IMF) on the ongoing review of Pakistan’s $3 billion Standby Arrangement.

“Finance Secretary has declared 9th November 2023 (a public holiday) as a working day in Finance Division in connection with the pre-scheduled meetings with the visiting IMF Review Mission,” the ministry said in a circular dated Monday, 6 November.

The working day has been notified for employees of the Finance Division only.

“All the Additional Finance Secretaries/Heads of the Wings are requested to ensure attendance of Officers/Officials, as above,” it added.

The talks with the IMF commenced late last week with both sides sharing critical data for fast-tracking the ongoing review.

If the lender is satisfied with Pakistan’s performance during the review, a second tranche of $700 million is expected to be disbursed. The successful outcome of the review will undoubtedly have far-reaching implications for the country’s economic stability and its ability to secure continued financial support from the crisis lender.

Source: Pro Pakistani

The domestic prices of steel products have been revised upwards second time since last week.

Steel rebar prices have been increased by up to Rs. 5,000 per ton (effective from 7th November 2023). Retail prices now stand in the range of Rs. 266,000-272,000 per ton, according to JS Research.

Previously on October 31st, steel rebar prices stood in the region of Rs. 259,000-264,000 per ton.

The upside risks to today’s increase in steel prices could be any unexpected disruptions in the procurement of raw materials and further slumps in the rupee/dollar rate.

Notably, the rupee/$ fell 11th day in a row on Monday and continues to trade in the 283-286 range today (Tuesday) after peaking at 285 in the previous session.

Source: Pro Pakistani