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June 10, 2023June 10, 2023

What Actually New Budget 2023-24 Is For ???

June 10, 2023 / By Zunair Tahir / Pakistan News

The budget for fiscal year 2023–24, like the majority of recent budgets, places a significant emphasis on borrowing money to finance expenditures, despite the fact that a sizable portion (more than 50%) of current expenses go towards debt payment.

Despite a narrative that indicates otherwise, the process taken to create this year’s budget wasn’t particularly novel, but some of the actions were.

The government has significantly raised the amount of money that may be sent from outside Pakistan without any questions being asked about the source, which is one of them.

A “bar on asking nature and source of unexplained income/assets” is proposed to be placed on this ceiling, which would be raised from Rs5 million to $100,000 (approximately Rs30 million). This action is most likely an effort to increase the nation’s diminishing foreign exchange reserves, which are now less than $4 billion and barely cover a month’s worth of imports.

In an effort to stop the flow of dollars out of the nation, the administration has also suggested raising the withholding tax rate on payments made to “non-residents through debit/credit or prepaid cards” from 1 to 5 percent. If this proposal were to be ultimately accepted, all foreign online purchases (including those from Netflix and Amazon) would become more expensive.

Another new initiative put up by the finance minister aims to make it easier for small and medium-sized businesses (SMEs) to receive bank loans.

Ishaq Dar brought up a central bank program that allows SMEs to refinance their debts at a 6 percent markup during his address. But he emphasized that banks are reluctant to lend to SMEs since they frequently lack a credit history.

The finance minister stated that this will be fixed by the government taking up 20% of the risk for loans made to SMEs under this program.

The budget for this year also included incentives for IT experts and services, giving Pakistani freelancers who provide IT services to overseas businesses the status of a cottage industry. Therefore, independent exporters won’t need to submit a sales tax report.

Additionally, “old and used vehicles of Asian makes above 1300cc” imports are no longer subject to set duty and tax ceilings.

This implies that reconditioned 1300cc automobiles from China and Japan, which have a considerable market in Pakistan, would probably cost more. Smaller vehicles like the Mira and Alto would not be impacted by this change.

Additionally, “old and used vehicles of Asian makes above 1300cc” imports are no longer subject to set duty and tax ceilings.

The budget offered, among other important sales tax or customs duty exemptions:

Customs tariffs on nappy and sanitary product raw components are exempt.
Customs charges on prawns, prawns and juveniles imported for breeding in industrial fish farms and hatcheries are exempt.

The prohibition on buying second-hand clothes has been lifted. The exemption of contraceptives and their accessories from sales tax.

For nonresident individuals who possess a National Identify Card for Overseas Pakistanis/Pakistan Origin Card and purchase real estate using foreign remittances sent from overseas, there is a 2 percent final withholding tax exemption.

For a builder, a 10% tax liability reduction or Rs. 5 million, whichever is less, and for a person, a 10% tax liability reduction or Rs. 1 million, whichever is less, for three years of self-construction of a home.

In contrast, there were several actions that may affect the average person’s finances:

The elimination of the sales tax exemption for foods sold in large quantities under brand names or trademarks.

An increase in the lower rate of sales tax on supplies produced by point-of-sale shops selling leather and textile items from 12 percent to 15 percent.

The suggested tax rate for electric power transmission services is 15%.

0.6 percent advance adjustable withholding tax will once again be applied to cash withdrawals made by inactive taxpayers.

An increase in the rate of withholding tax on payments made to non-residents using debit, credit, or prepaid cards from 1 percent to 5 percent. (Taxpayers who are not active pay two to ten percent).

It is suggested to impose a federal excise levy of Rs 2,000 per energy-inefficient fan and Rs 20 per cent of the value on incandescent bulbs.

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Dar Again Eliminates The Option Of A Default

June 3, 2023 / By Zunair Tahir / Pakistan News

Reforms are promised by the finance minister for “long-term improvement” of the nation.

Ishaq Dar, Pakistan’s finance minister, again ruled out the idea of a default on Saturday and pledged that changes are being prepared for the “long-term improvement” of the nation.

The finance czar promised to work with other government officials to help the nation overcome its present economic difficulties while speaking to a delegation from the Karachi Chamber of Commerce and Industry in Islamabad.

Finance Minister Senator Mohammad Ishaq Dar met a delegation from KCCI led by Mr. Zubair Motiwala at FBR,today and discussed budget 2023-24 proposals. FM appreciated KCCI in its pivotal role in the promotion and growth of the economy. (1/2).. pic.twitter.com/SuyCwI9V6W
— Ministry of Finance (@FinMinistryPak) June 3, 2023

Dar said that the Ministry of Finance will start a revolution in agriculture and create a sovereign wealth fund. He added that he is committed to take actions that have previously been disregarded and that the IT industry would also be a priority of his.

The group was also told by the finance minister that there is “no technical justification” for the IMF program’s postponement, which is unprecedented.

He insisted that Pakistan was an independent nation with trillions of dollars’ worth of assets.

Dar said that the nation has over $100 billion in foreign liabilities, but just one asset, its gas infrastructure, is valued between $40 and $45 billion.

The business sector was also urged by the finance minister to make fair expectations for the 2019 budget, and the administration promised to work with them.

Dar’s remarks came a day after a cabinet member said that Pakistan’s request to lessen the need of arranging $6 billion in new loans had been denied by the global lender, leaving the government with little choice except to attempt to resurrect the arrangement.

Minister of State for Finance Dr. Aisha Pasha stressed that Pakistan’s only choice was to return to the IMF in a policy statement delivered at the National Assembly Standing Committee on Finance.

Dr. Pasha claims that Pakistan asked the IMF to take into consideration lowering the $6 billion external funding demand based on fresh data on the current account deficit, but the Fund declined. The other $3 billion was to be arranged after the staff-level agreement, she said, but the IMF insisted on “demonstrating the $6 billion.” She went on to say that there was an understanding to arrange $3 billion before the agreement.

The statement from the ministry of finance shows that the IMF has not altered its position despite a call from Prime ministry Shehbaz Sharif to IMF Managing Director Kristalina Georgieva.

The IMF has already paid out $3.9 billion of the overall $6.5 billion rescue package during the previous four years, with the remaining amount depending upon the conclusion of three outstanding assessments.

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Rupee Strengthens More Against The Dollar Following Ishaq Dar’s Warning

September 29, 2022 / By Zunair Tahir / Pakistan News

Following a change in leadership at the Ministry of Finance and a warning from Ishaq Dar to the speculators using the local currency, the rupee appreciated versus the dollar on Thursday for the fifth straight trading day.

The dollar’s value in the interbank market dropped during intraday trade from the previous session’s finish of 232.12 to 231 per rupee.

ALSO READ: Provincial Government To Prevent Unjustified Profiteering: Ahsan Iqbal

The PML-N supremo Nawaz Sharif’s close aide Ishaq Dar’s reappointment as the nation’s finance minister has contributed to bettering sentiment, while the decline in global commodity prices fueled the rupee’s advance.

Dr. Khaqan Hassan Najeeb, an economist and former consultant to the federal ministry of finance, stated in an interview with Geo.tv that the first factor is a shift in market attitude brought on by a change in leadership at the finance ministry.

The previous advisor claimed that “the new team is viewed to be more sensitive of rupee movement and so leaning toward more orderly progress.”

Second, he pointed out that several fundamentals had improved, particularly the drop in oil and other important commodity prices, which may assist to lower the volume of imports.

Fortunately, the government’s administrative actions and the dropping global commodity prices will likely keep the current account deficit under control.

The rate of inflation has also likely reached its peak and is anticipated to decline during the ensuing months.

Dr. Najeeb added that the World Bank and the Asian Move Bank’s confirmation to give flood assistance is a market-supporting development.

The analyst went on to say that although it seems improbable, the potential for reconsideration and relaxation of some criteria by the International Monetary Fund (IMF) owing to the impact of the floods is boosting the rupee’s value.

The new finance czar asserts that the value of the local unit is undervalued and that he would try to control inflation by decreasing interest rates. He has firmly supported intervention in currency markets during his three prior tenures in the position.

Dar has also forwarded a warning to investors not to manipulate the currency markets.

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Inauguration Of Ishaq Dar As New Finance Minister

September 28, 2022 / By Zunair Tahir / Pakistan News

**On September 28, 2022, Ishaq Dar of the PML-N swears in as the next finance minister.**

Ishaq Dar, a prominent member of the Pakistan Muslim League-Nawaz (PML-N), was sworn in as the nation’s new finance minister on Wednesday.

At the Aiwan-i-Sadr, the oath was delivered by President Dr. Arif Alvi. At the oath-taking event, attendees included Interior Minister Rana Sanaullah and Prime Minister Shehbaz Sharif.

ALSO READ: In Pakistan, Petrol Prices May Decrease By Rs.5 & Diesel Prices By Rs.15

“To bear genuine faith and devotion to Pakistan,” Dar said at the event. “To fulfil its responsibilities honestly to the best of its capacity and truthfully in line with the Constitution of the Islamic Republic of Pakistan and the law.”

“I shall work to protect the Islamic ideology that served as Pakistan’s foundation. The new minister recited the words of the oath while reading it. “That I will not permit my personal interests to affect my official behaviour or my official choices,” he stated.

The action was taken when Miftah Ismail, a former finance minister, resigned from his position to make room for the PML-N senator.

Following a crucial party conference presided over by party leader and former prime minister Nawaz Sharif in London, the choice to choose Dar as the next finance czar was decided. Sen. sworn into office

Ishaq Dar took the oath of office as a senator on Tuesday amidst protests from Pakistan Tehreek-e-Insaf (PTI) MPs.

Dar took the oath of office from Senate Chairman Sadiq Sanjrani after returning to Pakistan earlier in the day after nearly five years in the UK on a “medical leave.”

While on trial for corruption in 2017, the PML-N leader had fled the nation.

Leaders of the PML-N greeted him by thudding their desks as he walked into the Senate hall.

However, PTI senators gathered around the chairman’s rostrum when he was taking the oath of office and yelled things like “absconder.”

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What Actually New Budget 2023-24 Is For ???

What Actually New Budget 2023-24 Is For ???

READ MORE NEWS…

Dar Again Eliminates The Option Of A Default

Dar Again Eliminates The Option Of A Default

READ MORE NEWS…

Rupee Strengthens More Against The Dollar Following Ishaq Dar’s Warning

Rupee Strengthens More Against The Dollar Following Ishaq Dar’s Warning

ALSO READ: Provincial Government To Prevent Unjustified Profiteering: Ahsan Iqbal

READ MORE NEWS…

Inauguration Of Ishaq Dar As New Finance Minister

Inauguration Of Ishaq Dar As New Finance Minister

ALSO READ: In Pakistan, Petrol Prices May Decrease By Rs.5 & Diesel Prices By Rs.15

READ MORE NEWS…

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