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Category: Business

  • Retailers dodging the tax system could face Rs500,000 fine per ‘non-certified receipt’

    Retailers dodging the tax system could face Rs500,000 fine per ‘non-certified receipt’

    The Federal Board of Revenue (FBR) is considering slapping heavy fines on major retailers who are dodging the tax system by issuing “non-certified receipts” to customers.

    The tax authority is reportedly planning to fine Tier-1 retailers who are not reporting sales tax correctly to the FBR.

    According to details, the FBR will impose a heavy fine of Rs500,000 per incorrect receipt on the retailer. On the other hand, the FBR will reward consumers who report a non-certified electronic receipt, which does not meet FBR standards, to the tax authority.

    Earlier, the FBR had advised electronic integration of points of sales (POSs) of all Tier-1 retailers of textile and leather sectors to ensure correct reporting of sales by retailers and realisation of overall due tax.

    Retailers must install software provided by the FBR, which reports sales tax to the tax authorities instantly.

    The installation of this software is crucial, as this is how the FBR gets to know about the number of sales made by a retailer, the tax paid, and what they charge the consumer.

    Interestingly, a POS invoicing prize scheme was first introduced in 2022 to promote tax compliance and documentation of the economy. The scheme involved conducting monthly ballots and distributing cash prizes among winners.

    Read more: Petrol, diesel prices likely to be reduced by more than Rs10 per litre for next fortnight

  • Petrol, diesel prices likely to be reduced by more than Rs10 per litre for next fortnight

    Petrol, diesel prices likely to be reduced by more than Rs10 per litre for next fortnight

    The government is expected to cut petrol and diesel prices in less than two days, following a decrease in international oil rates.

    There is a high chance that the petrol price in Pakistan will be reduced by more than Rs10 per litre on September 16, while the diesel price is also expected to be slashed by up to Rs12 per litre for the upcoming fortnight.

    Recent reports also suggest that there is little to no chance the government will consider increasing the petroleum levy because if levy is raised, petrol and diesel prices may witness a very slight decrease of Rs6 per litre or even less.

    The adjustment in petroleum prices will be decided after analysing the economic factors and the latest international oil rates at the time of announcement.

    The price of petrol in Pakistan, according to reliable sources, may drop to Rs247.60 per litre, while diesel is likely to be priced at Rs251.75 after the anticipated cut.

    The final decision regarding the reduction in petrol and diesel prices will be announced tomorrow through an official notification and the revised rates will be effective from September 16.

    Read more: Another record high in three days: Gold price reaches Rs265,900 per tola

  • Another record high in three days: Gold price reaches Rs265,900 per tola

    Another record high in three days: Gold price reaches Rs265,900 per tola

    After a little break, gold prices in Pakistan rebounded on Friday and surged to highest level ever seen in the country’s history. The 24-karat gold price witnessed a notable single-day increase of Rs2,900 per tola and closed at Rs265,900.

    This follows a decline of Rs1,000 seen in the price of precious metal, which pushed its rate to Rs263,000 per tola on Thursday.

    It is worth noting that the last record high price was observed less than three days ago when the bullion market quoted the gold’s rate at Rs264,000 per tola.

    Interestingly, before the gold hit the Rs264,000 per tola mark, the then record high price of gold was observed in August when local gold markets quoted gold at Rs263,700 per tola.

    According to All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), as of today, the ten-gramme gold rate stands at Rs227,966 after surging by Rs2,486.

    Read more: FBR considering imposing hefty fines, freezing bank accounts for false or incomplete tax filings

  • FBR considering imposing hefty fines, freezing bank accounts for false or incomplete tax filings

    FBR considering imposing hefty fines, freezing bank accounts for false or incomplete tax filings

    The Federal Board of Revenue (FBR) is planning to take strict action against people who file income tax returns but submit false information.

    These actions include fines of up to Rs1,000,000 and freezing their bank accounts.

    According to Business Recorder, the tax authority is also considering preventing such individuals from purchasing property or vehicles, cutting off their utilities, and imposing heavy penalties. These steps aim to help the FBR meet its tax collection target for the ongoing month.

    Still, these proposals still need approval from the relevant authorities.

    Some tax advisers are worried that these strict measures could be misused and end up punishing taxpayers who accidentally make mistakes while filing their tax returns.

    Some tax expert have supported this policy, saying that many people are abusing the system by filing “Nil” returns and declaring no assets to avoid paying high taxes or what they are supposed to pay as non-filers. He added that such false declarations are considered perjury, which is a crime under oath.

    He also pointed out that the number of “Nil” filers is rising because of the heavy taxes imposed on non-filers. Apart from penalties under section 114(A) of the Income Tax Ordinance, those who file incorrect returns can also face legal action under section 192, he said.

    The proposals are said to have been put forward by FBR’s Member Inland Revenue (Operations) to improve enforcement and tackle tax non-compliance.

  • IMF Board to review $7 billion loan programme for Pakistan on September 25

    IMF Board to review $7 billion loan programme for Pakistan on September 25

    The International Monetary Fund’s Executive Board is expected to take Pakistan’s 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion on agenda on September 25.

    Kozack in a press briefing on Thursday, said that the discussion regarding Pakistan’s loan approval is taking place following Pakistan’s receipt of the necessary financing assurances from “its development partners.”

    The spokesperson of the global lender further said that economic stability in Pakistan has been supported by consistent policymaking, which has resulted in the resumption of growth and an increase in the country’s forex reserves.

    “The new EFF arrangement follows the successful implementation of the nine-month standby arrangement in 2023,” added Kozack.

    Following the development, Finance Minister Muhammad Aurangzeb expressed his gratitude to all relevant institutions, Prime Minister Shehbaz Sharif’s team, and the IMF negotiators.

    The debt-hit country reached a staff-level agreement with the IMF in July, but board approval for the 37-month programme had been pending since then. The delay, which was resolved today with the IMF Executive Board adding Pakistan to its agenda, had fueled speculation about whether Pakistan had failed to meet the IMF’s bailout conditions.

  • Gold price falls Rs1,000 from historic high, now at Rs263,000 per tola

    Gold price falls Rs1,000 from historic high, now at Rs263,000 per tola

    On Thursday, the 24-karat gold rate in Pakistan dropped Rs1,000 per tola from the record high peak witnessed on the last trading day.

    According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of yellow metal was recorded today at Rs263,000 per tola as compared to the historic high of Rs264,000 per tola on Wednesday.

    Bullion rates shared by the APGJSA showed that the price of ten grammes of gold was also down by Rs857 to Rs225,480.

    The price of silver in Pakistani market remained unchanged at Rs2,900 per tola

    A price drop was also witnessed internationally, with the per ounce gold rate decreasing by $8 to $2,515. This rate includes a premium of $20.

    The previous all-time high price of gold was seen in August, when the precious metal’s per tola rate surged to Rs263,700 in Pakistan.

    The latest price of gold in Pakistan is about Rs700 per tola lower than August’s high and Rs1,000 per tola below September’s peak.

  • State Bank cuts policy rate by 200 bps to 17.5%

    State Bank cuts policy rate by 200 bps to 17.5%

    The State Bank of Pakistan (SBP) has reduced the interest rate by 200 basis points, bringing it down to 17.5 per cent.

    The decision regarding reduction in policy rate was made after the inflation rate slowed in the country.

    The Monetary Policy Committee (MPC) observed that the continued ease in inflationary pressures and the policy rate cuts will support the growth in Pakistan’s key sectors.

    Interestingly, this marks the third consecutive reduction in key policy rate, followed by a 150 bps cut in June and another 100 bps reduction in July.

    “At its meeting today, the MPC decided to cut the policy rate by 200bps to 17.5 per cent, effective from September 13, 2024,” the central bank said in a statement.

    “Both headline and core inflation fell sharply over the past two months. The pace of this disinflation has somewhat exceeded the MPC’s earlier expectations, mainly due to the delay in the implementation of planned increases in administered energy prices and favourable movement in global oil and food prices.”

    The MPC was of the view that the global macroeconomic environment has turned favourable amid the substantial softening of crude oil prices.

  • Interbank closing: Pakistani rupee sees minor 7.72 paisa gain against US dollar

    Interbank closing: Pakistani rupee sees minor 7.72 paisa gain against US dollar

    The Pakistani rupee (PKR) on Wednesday maintained the trend of minor fluctuations in the interbank session and closed the day with minimal gains versus the greenback.

    According to the State Bank of Pakistan (SBP), the rupee witnessed an increase of 0.03 per cent (7.72 paisa) and ended the day at Rs278.54 against the US dollar (USD).

    Exchange companies were buying the US dollar at Rs279.47 and selling it for Rs280.95.

    During the day trade, Pakistani currency’s highest value was recorded at Rs278.70 with the lowest ask of Rs278.50.

    Performance against different foreign currencies:

    CurrencyToday’s ratePrevious closingChange in value
    British Pound364.35364.7540.75 paisa
    Swiss Franc329.3328.231.07 rupees
    Japanese Yen1.97051.93953.1 paisa
    Chinese Yuan39.1639.132.96 paisa
    Saudi Riyal74.2374.273.44 paisa
    UAE Dirham75.8675.841.9 paisa
    Exchange rates for today

    Pakistani rupee’s performance against other foreign currencies, as  expected, did not witness major changes.

    The British Pound dropped 40.75 paisa against PKR and was quoted at Rs364.35 per GBP.

    The Swiss Franc went up by Rs1.07, finishing at Rs329.3 compared to Rs328.23 the previous day.

    Against the Japanese Yen, the PKR dropped by 3.1 paisa, closing at Rs1.9705, down from Rs1.9395 a day earlier.

    The Saudi Riyal fell by 3.44 paisa, closing at Rs74.23 compared to Rs74.27 the day before.

    The UAE Dirham lost 1.9 paisa, going from Rs75.86 to Rs75.84.

    The Chinese Yuan gained 2.96 paisa, closing at Rs39.16, up from Rs39.13.

  • Gold price increases by Rs2,300 to record high of Rs264,000 per tola

    Gold price increases by Rs2,300 to record high of Rs264,000 per tola

    The gold price witnessed a massive increase in Pakistan on Wednesday after a strong surge in global rates.

    According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), which releases gold rates on a regular basis, the price of precious metal rose by Rs2,300 per tola in the Pakistani bullion market.

    The price of gold in Pakistan now stands at record high of Rs264,000 per tola, as per the association.

    It is worth noting that the last record high price of gold was recorded in August when it broke Rs263,000 barrier and closed at Rs263,700 per tola.

    Today’s gold rate is Rs300 per tola higher than the last record high.

    Internationally, the yellow metal’s value was recorded at $2,524 per ounce, showing an increase of $23. This rate includes a premium of $20.

  • Govt’s debt grows by Rs247.89 billion in a week: SBP report

    Govt’s debt grows by Rs247.89 billion in a week: SBP report

    The government has taken on an extra Rs247.89 billion in debt for the week ending August 30. This new borrowing pushes the total government debt for the fiscal year 2025 up to Rs439.67 billion, according to the State Bank of Pakistan (SBP).

    For those unaware how this is categorised, the borrowing falls into three main categories: budget support, commodity operations, and other expenses.

    Out of the total Rs247.89 billion borrowed in the said week, Rs248.84 billion was used to support the budget, Rs951.06 million was spent by the government on commodity operations, and Rs0.97 million went to various other needs.

    Considering yearly borrowing, the government has borrowed a sum of Rs680.95 billion for budget support, Rs239.54 billion for commodity operations, and Rs1.74 billion for other expenses.

    The main sources of this funding are the central bank and scheduled banks.

    Shockingly, the government has already borrowed Rs44.13 billion from the State Bank this year.

    The Federal Government has repaid Rs176.62 billion, while the Provincial Government has borrowed Rs246.34 billion.

    The Azad Jammu and Kashmir (AJK) Government has repaid Rs14.79 billion, and the Gilgit-Baltistan (GB) Government has repaid Rs10.8 billion.

    Scheduled banks released Rs636.82 billion in loans, with Rs660.33 billion going to the Federal Government.