01 FRONT PAGE (21-6-2022)_Layout 1 6/21/2022 12:23 AM Page 1
Tuesday, 21 June, 2022 I 21 Dhul-Qadah, 1443 I Rs 15.00 I Vol XII No 352 I 12 Pages I Lahore Edition
Govt-IMF deal lIkely In a day or two, says MIFtah
ISLAMABAD
F
Shahzad paracha
ederAl minister for finance miftah ismael said on monday that the government international monetary fund (imf) deal was expected in a day or two. the minister stated this while speaking to media after a meeting of the Senate Standing committee on finance. he dispelled the impression that there was any deadlock with the fund over the payment of salaries. he said the government planned to tax the rich people while exempting those who were poor. there is a lot of uproar over the government’s negotiations with the imf these days as there has been an unprecedented increase of rs84 per litre in the price of petrol by the government in just two weeks. And the hike in petroleum products’ prices is one of the conditions laid down by the fund for the deal. Similarly, the money lending organization has also demanded excessive taxation from the government, which certainly will have a direct impact on the lives of ordinary people. only six days ago, on June 14,
2022, the government had agreed to accept the demand of the international monitory fund (imf) to withdraw the income tax exemption proposed in the budget for the fiscal year 2022-23. Sources, however, told that the government had decided that the relief given to the low-paid classes will be maintained. the sources said the government was considering raising the amount of income tax on the people receiving monthly salaries of above rs500,000. the sources further said that consultations with the imf were still going on and efforts were being made not to burden the people with income tax, drawing monthly salaries between rs100,000 and rs200,000. Also six days back, the global lender has expressed its concerns over budget asking Pakistan to take more strict measures in terms of tight fiscal discipline if it wants the revival of the $6 billion loan programme. meanwhile briefing the committee, miftah ismail said that government will not take any tax if builders start construction of the plot. however we will take tax if the plot remain vacant, he added. the committee members asked the
finance minister not to tax vacant plots for a specified period. the finance minister agreed to the proposal with regard to not tax vacant plots for a specified period. miftah ismail also said that companies will pay 2% additional tax on annual profits of rs 300 million. committee member recommended that income of more than rs300 million should be taxes. finance minister replied that i agreed with the proposal but we need money. on this occasion, Senator Shaukat tarin said that “i agree with miftah but he should cut another pocket”. on this, ismail said that government will cut many more people’ pockets. officials of the Pakistan Pharmaceutical Association (PPA) informed the minister about their concerns regarding the non-payment of sales tax refunds. former finance minister on this occasion said that what steps have been taken to bring pharmaceutical companies under sales tax? the same factory with pharmaceuticals is making juices as well as makeup products and they are not paying sales tax adding that he said that if they taxed less than 17 sales tax, they will not pay. the minister expressed his commitment to resolving the issue of refunds of the sector on a priority basis. while criticizing the present government policies, former finance minister said that country would be face skyrocketing inflation of 35percent due to increase in petroleum prices. replying to this, finance minister said that Prime minister Shahbaz Sharif angry over tax hike but i tell the Prime minister that if we don’t increase taxes, how will the income increase? the committee under the chair of Senator Saleem mandviwala reviewed and finalized the budget recommendations made in the previous meetings of the committee, regarding finance bill 2022-23. A detailed report containing the budget recommendations made by the Standing committee will be presented in the Senate session.
Rupee shoots past record Rs210 mark against US dollar ISLAMABAD Staff report
in line with market expectations, the Pakistani rupee has plunged further and crossed the 210 threshold against the US dollar for the first time in the interbank market on monday. the domestic currency was available at rs210.19 against the greenback in the interbank market at 11:02am, according to tresmark. the latest fall in the rupee’s value against the USd comes after traders resorted to panic buying on reports that some commercial banks had run out of the foreign currency. this is the seventh consecutive working day of free-fall in the rupee, losing approximately rs6, or over 3%, to date. the central bank has seemed helpless in controlling the speculative fall in the rupee as demand for the greenback continues to soar due to quarter-end payments pressure. “the currency will continue to fall until Pakistan manages to strike a stafflevel agreement with the international monetary fund (imf),” said director AA commodities Adnan Agar. the analyst was of the view that the investors’ confidence is completely shattered which can only be strengthened by positive development on the imf front. Agar also mentioned that depleting foreign exchange reserves has triggered panic buying giving speculators a chance to play with the demand and supply of the greenback. meanwhile, exchange companies
President refuses to sign NAB law, says it ‘promotes corruption’ g
officiAl SAyS PreSideNt’S Nod to the billS merely ‘ceremoNiAl’
g
NA SecretAriAt to regiSter two billS iN itS gAzette by todAy
ISLAMABAD Mian abrar
President dr Arif Alvi monday sent back the National Accountability (Amendment) bill, 2022 unsigned to the Prime minister’s office, saying the bill, as passed by the parliament, was regressive in nature, and would promote corruption and encourage corrupt practices. this is the second bill returned by President Alvi which was passed by the Joint Sitting of both houses of the Parliament. last week, President Alvi had returned elections [Amendment] bill 2022 unsigned. however, according to the government sources, both the bills, passed by the joint sitting of the parliament, will come into effect, whether or not the president gives it an accent, by today. An official told Pakistan today that the president’s refusal to give a nod to the bills was ‘ceremonial’ and the National Assembly Secretariat would register the two bills in the government gazette by today. “while the president didn’t sign the two bills, we will register them in the gazette by today or tomorrow, counting ten days from the date of sending the bills to the presidency,” the official said. in his note attached to the bill, President Alvi said the bill also sent a message to the corrupt, who had amassed tremendous wealth and
about which there was no doubt in the minds of the people of Pakistan, that they were not accountable and free to continue plunder. “having weak accountability is against the basic rights of the people of Pakistan who are the suffering masses, and, therefore, it is also against the fundamentals of our constitution,” President Secretariat Press wing in a press release on monday quoted the president as saying. the president lamented that the small man would be
caught for petty crimes while the corrupt rich would remain free to continue with their abhorrent practices. the president said that it was sad that rather than structurally improving the institution, the enactment of these amendments was like demolishing the process of accountability without an alternate system being in place, making it sterile and allowing extractive institutions and practices to pthe president reiterated that he personally followed, upheld and abided by the constitution of Pakistan. “we must act upon the injunctions of the Quran and Sunnah, and above all, i am answerable to Allah and ask for his forgiveness. therefore, i painfully state that my conscience does not allow me to sign this bill,” the president maintained. the president said that he was aware of the fact, in view of the ‘deeming’ provision under Article 75 (2) of the constitution of Pakistan, that the National Accountability (Amendment) bill, 2022 would be enacted into law even if the President of Pakistan did not sign the bill. rosper. “weak laws, such as this one, create a facade of justice that blatantly hides a corrupt elite capture, and nations that accommodate such laws ensure very damaging exploitation of the common man perpetuating an unjust society,” he added.
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Association of Pakistan (ecAP) chairperson malik bostan identified widening trade deficit, political instability, and declining foreign direct investment as major reasons behind the devaluation of the local currency. “Political stability is key for economic development,” he said, adding that former prime minister imran Khan’s call for another long march may adversely affect the rupee-dollar parity. the currency expert was of the view that the positive news from the financial Action task force (fAtf) will help attract foreign investments which will increase the availability of the greenback. if the imf deal is finalised, traders expect the rupee to settle within a range of 195-200 per dollar till the end of the outgoing fiscal year 2021-22. Pakistan’s currency is one of the worst performers in the world as it has depreciated by 14.57% against the dollar this year, the data compiled by ismail iqbal Securities showed. it is not the rupee that has tumbled and underperformed its regional peers and various global currencies, but other ones are taking a beat. Pak rupee and the Japanese yen fell almost equally against the dollar this calendar year to date. the yen declined by 13.34%. the local unit is one of the 15 currencies that have lost ground. the Sri lankan rupee has been the worst-performing, plummeting 43.9%, with the laotian Kip battering 24%, turkish lira 23.18%, and ghana cedi 22.33%, respectively, the data revealed.
MORE INSIDE
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corruption does not affect Pakistan’s economic development: Ahsan iqbal STORY ON PAGE 03
Sri Lankan top official debunks ‘Chinese Debt Trap’ propaganda STORY ON PAGE 02
banks turn away letters of credit as foreign exchange liquidity becomes scarce STORY ON BACK PAGE