Reserves rise to record $17.44bn

Reserves held by the SBP rose to $13.91 billion from $13.76 billion in the week ending February 12. — File Photo

KARACHI: The foreign exchange reserves rose to a record $17.44 billion in the week ending February 12, up from $17.31 billion the previous week, the State Bank of Pakistan said on Thursday.

Reserves held by the SBP rose to $13.91 billion from $13.76 billion in the week ending February 12, while those held by commercial banks fell to $3.53 billion from $3.55 billion, said the central bank.

“Foreign exchange reserves rose to a record because of a rise in remittances and increasing exports,” said Syed Wasimuddin, chief spokesman for the State Bank.

Remittances by overseas Pakistanis were recorded at $6.12 billion during the first seven months of the fiscal year 2010-11, up 17.70 per cent from the same period last year, according to SBP data.—Reuters

President for round-table on economic reforms

 

 The president suggested the businessmen to make consortiums of leading entrepreneurs. — File Photo

ISLAMABAD: President Asif Ali Zardari on Thursday invited the business community to convene a meeting of all political parties over economic reforms to devise a strategy for placing the economy on strong footings. 

Talking to a delegation of the Pakistan Business Council here on Thursday at the Aiwan-i-Sadr, the president offered the presidency as the venue of the roundtable meeting, adding that he would participate in it as co-chairman of the PPP along with leaders of other political parties and not preside over it as president, according to presidential spokesman Farhatullah Babar.

Govt sees Rs28bn loss

"Government is claiming that the RGST law implementation could lead to an additional Rs28-30 billion in the first year." — File Photo

ISLAMABAD: The government estimates show that an annual revenue loss of over Rs28 billion on 10 major products is expected owing to proposed single rate of 15 per cent under the reformed general sales tax (RGST) bill, a tax official told Dawn on Tuesday.

In absolute term, 80 per cent of the domestic sales tax revenue has been generated from the top 10 products at an average rate of 17 per cent besides special rate of 19.5 per cent on the telecom sector and 25 per cent on the natural gas, casting doubts over the health of the finance ministry projected figures that RGST implementation would yield additional revenue for the kitty.

Tax bills sail through Senate amid uproar

Chairman Senate Farooq Naek declared reports on RGST and flood surcharge ‘approved’ by a voice vote amid shouts of ‘no, not accepted’. — Photo by APP

ISLAMABAD: The opposition and some coalition partners tried on Friday to block the approval by the Senate of reports on reformed general sales tax (RGST) and flood surcharge, but Chairman Farooq H.Naek declared them ‘approved’ by a voice vote amid shouts of ‘no, not accepted’.

While the opponents cried foul as the chairman put to voice vote the two reports which had been prepared and signed by their representatives in the Senate Standing Committee on Finance, PML-Q’s senators walked out, saying they could not be part of a process to burden the masses with more taxes.

Interior Minister calls Altaf, asks support for RGST

The government is facing tough resistance from almost all the major political parties including its coalition partners. – File Photo

ISLAMABAD: The Interior Minister Rehman Malik telephoned Muttahida Qaumi Movement (MQM) Chief Altaf Hussain on Wednesday and asked him to support the government on the Reformed General Sales Tax (RGST).

Rehman Malik assured Altaf Hussain that all the issues would be resolved through talks.

The government is facing tough resistance from almost all the major political parties including its coalition partners, the MQM and the Awami National Party on the RGST.

Leather industry may receive 20 per cent less animal hides

Due to inflation, high prices and low number of animals, people preferred collective sacrifice this year. — File Photo

KARACHI: The relatively soaring price of animals and their less numbers could result in 20 per cent less hides to the leather industry this year.


Due to inflation, high prices and low number of animals, people preferred collective sacrifice of animals. According to an estimate, around 70 per cent cows and 30 per cent other small animals have been sacrificed this year.

Pakistani must seek initial EU concessions: PDMEA

"The EU has reduced the concession period from 3 to 2 years following pressure from the local European textile industry." — File Photo

KARACHI: Pakistan Denim Manufacturers and Exporters Association (PDMEA) have urged the government to send a team to European Union (EU) for explaining the concerns of Pakistani exporters arising out of recent EU proposal on duty concession.

In a statement, chairman PDMEA Shahid Soorti said that Pakistan should also visit European Apparel and Textile Confederation and all other relevant people in this regard.

IMF projects 14pc inflation, 2.75pc GDP growth

The IMF noted although the major export plants had escaped physical damage, cotton and textiles exports might be lower. — File Photo

WASHINGTON: The International Monetary Fund has projected that during 2010-11 Pakistan will have an average inflation rate of 14 per cent and a real GDP growth of 2.75 per cent. 

“The balance of payments is expected to weaken in 2010-11, due in part to the impact of the floods,” said an IMF statement issued in Washington on Tuesday.

“Imports will rise as food and other basic goods will need to be sourced from abroad and imports of capital equipment for reconstruction will increase,” the statement said.

Pakistan’s July-Oct c/a deficit narrows to $533 mln

The current account deficit for the fiscal year 2009/10 was $3.495 billion, compared with $9.261 billion in fiscal year 2008/09. — File Photo

KARACHI: Pakistan’s current account deficit for July-October narrowed to a provisional $533 million, compared with $1.177 billion in the same period last year, the central bank said on Tuesday.

In October, the current account stood at a provisional surplus of $35 million, compared with a surplus of $424 million in September, the State Bank of Pakistan said.

The current account deficit for the fiscal year 2009/10 was $3.495 billion, compared with $9.261 billion in fiscal year 2008/09.

Cabinet set to approve RGST today

The cabinet meeting will consider measures to generate new sources of revenue.—File photo

ISLAMABAD: The federal cabinet is set to approve a revised general sales tax framework on Wednesday. It seeks, among others, withdrawal of exemptions on textile and agriculture sectors. 

"This will be a tough decision for the cabinet because the RGST framework seeks withdrawal of exemptions on the textile and clothing sector, which contributes over 55 per cent in the country's total exports," a finance ministry official told Dawn on Tuesday.

According to him, the International Monetary Fund turned down a request by government for exempting the textile and clothing sector from GST, saying only exports could be exempted from the levy.

Corruption-free tax system primary objective: Shaikh

The Finance Minister instructed FBR to formalize the recommendations for their early approval by the government. - File Photo.

ISLAMABAD: Minister for Finance, Revenue and Economic Affairs Dr. Abdul Hafeez Shaikh said on Sunday that a fair, equitable and corruption-free tax system is a primary objective of the government  The minister said this while chairing a day-long meeting of the Tax Reform Coordination Group (RCG) here.

The meeting was attended by the Members of RCG, Deputy Chairman Planning Commission, Governor State Bank of Pakistan, Secretary Finance, Chairman FBR, FBR officers and Ministry of Finance officers.

Pakistan ready for tax reforms, says IMF

Tax reform is also needed to make the tax system more equitable: Adnan Mazarei.—Reuters

WASHINGTON: Pakistan supports a general sales tax and changes to its energy industry, the International Monetary Fund said on Saturday while reporting on its talks with the country.

The IMF and Pakistan also have agreed on a budget deficit target for the 2011 financial year to help flood victims and reduce inflation, said a statement issued by the IMF headquarters in Washington.

Adnan Mazarei, the leader of an IMF staff mission which held a series of meetings in Islamabad this week, praised the country’s efforts to stabilise its economy.

Pakistan to finalize legislative framework for RGST

The objective remains to further strengthen the public finances and macroeconomic stabilization so that priority spending can be assured and inflationary pressures kept under check and reduced. - File Photo.

ISLAMABAD: Pakistan has proposed the IMF mission to finalize legislative framework for the Reformed General Sales Tax (RGST) in the coming days for submission to the parliament.

The International Monetary Fund (IMF) mission, led by Mr. Mazarei, has been engaged in discussions with the Government of Pakistan on the fifth review under the Standby Arrangement.