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.

EU compromise package for tariff cuts

The EU had approved a raft of time-bound trade concessions for Pakistan to help it recover from the recent flood disaster. File Photo

The European Union has considerably watered down its proposed time-bound scheme of tariff cuts for Pakistan to clinch a deal from its member states with strong textile industries. 

The final package of trade concessions that has emerged after a compromise between its supporters and opponents, say Pakistani textile exporters, would have a “dampening effect on the possible export growth” to Europe because of the newly agreed quantitative restrictions on duty-free import of some top textile products from the country.

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.

Hafeez hints at new taxes in budget

WB agrees to postpone imposition of 6pc raise in power tariff

WASHINGTON: The World Bank has agreed to postpone the decision of a 6 per cent raise in power tariff following successful negotiations with its representatives, a top government official said.

Addressing a press conference at Pakistan Embassy in Washington, Adviser to the Prime Minister on Finance, Hafeez Shaikh said that there is a likelihood that the International Monetary Fund (IMF) will approve the release of the fourth tranche of $1.3 billion out of $11.3 billion agreed in November 2008 to Pakistan, following its board of directors meeting scheduled to be held on May 14.

IMF sees Pakistan GDP expanding at 3pc in 2009-10

ISLAMABAD: The International Monetary Fund (IMF) says the political and security situation in Pakistan remains challenging, economic reform does not command broad support and adverse security developments continue to hurt the confidence of domestic and foreign investors. 
 
As a result, projected economic growth for 2009-10 would be a modest three per cent, IMF says in a programme note on Pakistan issued following the approval of the fourth tranche of $1.2 billion by the Executive Board in Washington on Wednesday.

Pakistan’s 3-month fiscal deficit at 1.5pc of GDP

KARACHI: Pakistan’s budget deficit for the first three months of the 2009/10 fiscal year was Rs223.67 billion ($2.68 billion) or 1.5 per cent of gross domestic product (GDP), the Finance Ministry said on its website.

 
The International Monetary Fund (IMF) and the government had targeted a budget deficit for the three months ending on Sept 30 of Rs194 billion, or 1.3 per cent of GDP.

However, the country’s central bank governor told Reuters last month Pakistan would meet its fiscal deficit target in the first six months of this fiscal year despite slippage in the first quarter.