Category: Business

The World Bank has rated the overall implementation progress of Khyber Pakhtunkhwa Human Capital Investment Project worth $200 million moderately unsatisfactory.

The objective of the project was to improve availability, utilization, and quality of primary healthcare services and elementary education services in selected districts of Khyber Pakhtunkhwa (KP).

However, progress towards achievement of PDO as well as overall implementation progress is moderately unsatisfactory, official documents of the bank revealed.

The project has three components, component 1- improving delivery of quality primary health care services (cost $77.20 million), component 2–improving availability and quality of education services (cost $109 million), component 3 –strengthening community engagement and accountability (cost $13.80 million). The World Bank’s Board of Executive Directors approved the project in June 2020, while the closing date is 30 June 2025.

Documents further stated that from May 22 – June 2, 2023 an implementation support mission was fielded. Based on the findings of the mission, project ratings were adjusted downwards. A clear set of time-bound actions were agreed upon to bring the project back on track to meet its development objectives.

Immediate and critical next steps include approval of revisions to the Education PC-1 by the Central Development Working Party (CDWP) and subsequent, approval of both Health and Education PC-1s by Executive Committee of the National Economic Council (ECNEC).

This will be followed by completion of the project restructuring as requested by the government. The mission recommended a third party monitoring firm to support project implementation.

Source: Pro Pakistani

The Directorate General of Customs Valuation Karachi has revised customs values on the import of Woven Interlining Material/ Buckram (Black/White) and Non-Woven Interlining Material/ Buckram (Black/White) from China/Korea for assessment of duties and taxes.

Earlier, the customs values on the import of Woven Interlining Material/ Buckram (Black/White) and Non-Woven Interlining Material/ Buckram (Black/White) was determined in 2020. The directorate received presentations for revision of the said values.

According to a valuation ruling issued on Friday, different values were declared by different importers for same product. Identical and similar goods value methods provided in Sections 25 (5) and (6) ibid were examined for applicability to determine customs values of subject goods. The data provided some references.

However, it was found that the same could not be solely relied upon due to absence of absolute demonstrable evidence of qualities and quantities of commercial level etc. Information available was, hence, found inappropriate. In line with statutory sequential order of Section 25 of the act ibid, this office conducted market inquiries under sub-section (7) of Section 25 of the Customs Act, 1969.

As the prices of Woven Interlining Material/ Buckram (Black/White) and Non-Woven Interlining Material / Buckram (Black/White) in the market varied significantly and were dependent on quality of the goods and the location of the selling points or shops in the city, therefore, a thorough survey was conducted to arrive at customs values.

Consequently, Deductive Value method as provided under Section 25(7) of the Customs Act, 1969 has been applied to arrive at assessable customs values of Woven Interlining Material Buckram (Black/White) and Non-Woven Interlining Material/ Buckram (Black/White).

Source: Pro Pakistani

Pakistan’s gross public debt has increased faster than its gross domestic product (GDP) in the last 20 years.

According to Arif Habib Limited, as of fiscal year 2022-23 (FY23), Pakistan’s gross public debt stands at Rs. 62.9 trillion (74.3 percent of GDP). This is a significant increase from debt of Rs. 3.7 trillion (56.1 percent of GDP) in FY23. The increase in debt has been witnessed at a compounded annual growth rate (CAGR) of 15.2 percent during the last two decades.

Over the last 20 years, Pakistan’s domestic debt has grown by a CAGR of 16.3 percent, reaching Rs. 38.8 trillion, while its external debt has increased by a CAGR of 13.8 percent during the same period.

The size of Pakistan’s economy has expanded to Rs. 84.7 trillion in FY23, compared to Rs. 6.6 trillion two decades ago, and has grown by a CAGR of 13.6 percent over the last 20 years.

Out of the total debt increase of Rs. 59.2 trillion over the last two decades, a substantial Rs. 37.9 trillion increase has occurred in the past five years.

Source: Pro Pakistani

The Overseas Investors Chamber of Commerce of Industry (OICCI) has requested the Chairman Federal Board of Revenue (FBR) to settle Rs. 93 billion in pending Income and Sales Tax refunds of its members.

“Following our letter of July 12, 2023, we hereby enclose an updated list of pending Income and Sales tax refunds for OICCI members as of September 2023. The total amount now stands at over Rs. 93 billion, with Rs. 52 billion pertaining to Income tax and Rs. 41 billion to Sales Tax,” the letter read.

OICCI said the pending tax refunds of its members have been increasing rapidly in the last two years. Based on statements submitted to FBR in the past, for example, the pending tax refunds of OICCI members as of September 2023, are 80 percent higher than October 2021.

“As you are well aware, the current economic climate poses exceptional challenges, marked by super high inflation and interest rates, along with the burden of exorbitant tax rates and restrictions on remittances. In these trying circumstances, the longstanding delay in processing Income and Sales tax refund claims is placing additional strain on the cash flows, consequently, sending negative signals to MNCs corporate headquarters,” the letter added.

OICCI requested immediate intervention to expedite the resolution of legitimate outstanding tax refund claims of its members. The chamber also invited Chairman FBR for a meeting “at a mutually convenient date soon”.

The details of the outstanding refund claims are in the document given below.

Source: Pro Pakistani

Former chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi has said that the US dollar could fall to as low as 250 if the government can manage the issues related to Afghan transit trade.

Speaking to Geo News, Zaidi said that Afghan transit trade has an impact of almost $6 billion on Pakistan’s imports. He said that if this impact is reduced, the Pakistani rupee would strengthen against the US dollar.

He explained that Afghanistan does not have enough foreign exchange reserves of its own, and all of its imports are financed through dollars obtained from Pakistan through the ‘hawala’ system. He further said that the recent crackdown against currency smuggling and Afghan transit trade are interlinked.

The former FBR chairman appreciated the steps taken in recent days to regulate Afghan trade. He mentioned that the government has notified a new list of items that Afghanistan cannot import through Pakistani sea and border ports under the Pakistan-Afghanistan Transit Trade Agreement.

Similarly, FBR has imposed a 10 percent processing fee on major categories of Afghan transit commercial goods i.e. confectionaries/chocolates, footwear, machinery (mechanical/electrical), blankets/home textiles, and garments imported into Afghanistan in transit via Pakistan.

Moreover, FBR will collect bank guarantees of all Afghan transit goods equal to the total duties/taxes involved on the goods destined for Afghanistan through Pakistan.

Zaidi said that if the Afghan transit trade is effectively managed, 20 percent of problems in Pakistan’s economy will be resolved.

It is pertinent to mention here that after the crackdown against currency smuggling and other illegal activities, the Pakistani rupee became the best-performing currency in the world in September, gaining over 6 percent against the dollar. The crackdown also significantly reduced the open market rate of the dollar, cutting it by as much as Rs 50 in September.

Source: Pro Pakistani