The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. — Reuters
Fitch Ratings has upgraded Pakistan’s credit rating, attributing the development to improved external funding prospects following a new International Monetary Fund (IMF) bailout. Although still below investment grade, analysts suggest that the upgrade indicates a reduced risk of default.
The rating agency raised Pakistan’s long-term foreign-currency issuer default rating (IDR) to CCC+ from CCC. Fitch typically does not assign outlooks to sovereigns with a rating of CCC+ or below.
However, the agency did warn that renewed deterioration in external liquidity conditions, delaying IMF programme reviews, or indications that the authorities were considering debt restructuring could lead to downgrades in the future.
“The upgrade reflects greater certainty over the continued availability of external funding, in the context of Pakistan’s SLA (staff-level agreement) with the IMF on a new 37-month USD7 billion EFF (extended fund facility),” Fitch said in a handout released on Monday.
According to the rating agency, strong performance on the previous, more temporary IMF arrangement helped the country narrow fiscal deficits and rebuild foreign exchange (FX) reserves, and further improvements are likely.
“Nevertheless, Pakistan’s large funding needs leave it vulnerable if it fails to implement challenging reforms, which could undermine programme performance and funding,” it added.
Fitch said Pakistan and the IMF reached the SLA on 12 July.
Highlighting the fiscal struggles that lie ahead for Pakistan, the rating agency notes that before likely IMF board approval by end-August, the government will have to obtain new funding assurances from bilateral partners, chiefly Saudi Arabia, the UAE and China, totalling about $4 billion-5 billion throughout the EFF.
“We believe this will be achievable, given the strong record of support and significant policy measures in the recent budget for the fiscal year ending June 2025 (FY25),” Fitch said.
It said Pakistan completed its nine-month Stand-by Arrangement with the IMF in April, while over the past year, it raised taxes, cut spending and raised electricity, gas and petrol prices.
The agency observed that the government also all but eliminated the gap between the interbank and parallel market exchange rates through a crackdown on the black market and regulation of exchange houses.
Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958. Currently the IMF is fifth-largest debtor, owing $6.28 billion as of July 11, according to the lender’s data.
The latest economic crisis has been the most prolonged and has seen the highest ever levels of inflation, pushing the country to the brink of a sovereign default last summer before an IMF bailout.
The conditions of the programme have become tougher. The latest bailout is aimed at cementing stability and inclusive growth in the crisis-plagued South Asian country, the IMF said.
An undated image showing a general outside view of the FBR building. — Facebook/Federal Board of Revenue/File
ISLAMABAD: The Federal Bureau of Revenue (FBR) on Saturday ruled out any general extension in the September 30 deadline announced by the tax collecting authority for the submission of tax returns.
Speaking to Geo News, FBR spokesperson Bakhtiar Muhammad said: “Historically, a facility used to be given [to the masses] by extending the overall deadline. However, this time the decision has been made that the date [for submission of tax returns] will not be extended and September 30 will be the last date to file tax returns.”
The development comes as traditionally the FBR, in recent years, has adopted the practice of extending the tax return submission deadline which was pushed to October 31 last year.
Last year, the authority pushed the date for the filing of tax returns to October 31.
However, it seems that the FBR intends to provide no leeway and intends to adopt a rather strict approach towards the issue amid the incumbent government’s strenuous efforts to expand the tax net and increase revenue generation in light of the multi-pronged economic challenges faced by the country.
In June, Prime Minister Shehbaz Sharif-led administration in its tax-heavy budget passed in June, set out an ambitious taxation plan to boost its prospects of securing a fresh bailout deal with the International Monetary Fund (IMF) — which it eventually did as the programme now awaits the approval of the Fund’s executive board.
Elaborating on the authority’s decision against extending the deadline, the spokesperson underscored that it was a legal requirement to submit the tax returns by September 30.
Acknowledging that some filers may find it difficult to submit their returns before the due date, such people can reach out to their respective tax commissioners and seek an individual extension as provisioned in the law.
They can secure an extension owing to their specific reasons, however, the deadline will not be pushed beyond September 30 for the entire country overall, he added.
When asked about this might leave thousands unable to submit their tax returns, the FBR spokesperson said that this was what the authority warned the masses before the deadline expired.
Noting that there were still nine days left to submit the returns, the official said: “There is a three-month period [for people] to file their tax returns from July 1 till September 30. If they wanted to submit their returns, they would have done so during this time”.
FBR gears up for drastic measures
Last week, The News reported that the FBR has proposed drastic measures to avoid a possible shortfall in tax collection including freezing bank accounts and imposing a ban on the purchase of property and vehicles for tax evaders.
Facing a monumental tax shortfall in the first quarter (July-September) under the IMF programme of $7 billion Extended Fund Facility (EFF) coupled with its failure to bring 3.2 million retailers into the tax net, the tax collection body has geared up for significant taxation measures against millions.
Sources said that an internal assessment of the FBR has shown a tax shortfall of over Rs220 billion for the first quarter (July-September) against the agreed target of Rs2,652 billion.
The authority faced a shortfall of Rs98 billion in August 2024. The FBR had collected Rs1,456 billion in the first two months (July and August) against the assigned target of Rs1,554 billion leaving the body with the challenging task of fetching Rs1,196 billion during the ongoing month to materialise the first quarter agreed target with the IMF.
The annual tax collection target of FBR envisaged Rs12,970 billion, which was approved by parliament (Rs12,913 billion).
Speaking to the publication, official sources confirmed that the FBR identified two million nil filers out of the total of six million return filers.
Suggesting to categorise non-filers into three categories, the authority has recommended the government impose a fine of Rs1 million for incorrect/incomplete tax returns.
The FBR official further added that “nil filers” would have to face severe action including freezing of their bank accounts and a ban on the purchase of properties or vehicles with an immediate effect.
Whereas, those evading payment of tax amounts ranging from Rs0.5 million to Rs1 million will face disconnection of electricity and gas connections.
It is to be noted that previously, the tax collection body also ordered the disconnection of mobile phones of 0.5 million non-filers, but it could not achieve the desired results.
The FBR, in the third category, has tabled the recommendation that if the tax dodgers were under filers up to the tune of Rs1 million or more, it would also propose some more measures against them.
Furthermore, the tax authority has decided to outsource audits of high-net-worth individuals (HNWs) and companies.
ISLAMABAD – A meeting chaired by Prime Minister Shehbaz Sharif in Islamabad on Friday gave in-principle approval to FBR’s homegrown Transformation Plan regarding tax collection management.
This plan has been prepared by the FBR on the instructions of the Prime Minister in collaboration with other economic and technological experts of the country after a detailed analysis of the tax collection of the last twenty five years.
This will enable more tax to be collected in a better manner without hindering the journey of economic development and will provide more convenience to the people paying full tax.
The meeting was given a detailed briefing on the FBR’s transformation plan. It was informed that the plan includes a comprehensive strategy for the effective use of information technology, incentivizing officers and staff who demonstrate integrity and performance in improving tax collection and enhancing the enforcement of tax laws.
According to the proposals, strict measures can be taken against those who do not pay full tax on time and are involved in fraud in order to prevent tax evasion in the society.
It was informed that these measures will be implemented after extensive consultation with good taxpayers.
Under the transformation plan, auditing capacity of FBR will be enhanced.
Speaking on the occasion, the Prime Minister was appreciative of FBR’s transformation plan and directed further consultation on it with all relevant stakeholders. He said good taxpayers should be invited and consulted on the transformation plan.
The Prime Minister Shehbaz directed the formulation of a comprehensive strategy to further enhance the effectiveness of the FBR’s enforcement system, describing it a pressing need of the time.
The Prime Minister noted that FBR is the backbone of the country’s economy and its digitization is an important milestone in government’s economic reforms.
Shehbaz Sharif said improvement in revenues will enhance the provision of services to the public and lead to betterment in the social sector.
The Prime Minister also directed third party audit of all FBR projects.
Shehbaz Sharif said promotion of the private sector is among the government’s priorities, emphasizing an active and prosperous private sector is very important for the country’s economy.
The Prime Minister also directed to accelerate efforts against smuggling. It was also decided to set up new check posts to prevent smuggling.
Honda remains leader in bikes market, with its top-selling units like CD 70, and that’s without making any major changes as the entry-level bikes look almost same for a long time. As the CD-70 remains its most selling model, bikes like the CD-70 Dream and Pridor are considered a niche products.
Despite failing to achieve top sales, CD 70 Dream is still in the market, featuring air-cooled, 4-stroke engine that delivers smooth performance and impressive fuel economy, often averaging around 60-70 km/l, making it ideal for daily commuting.
The bike looks better with stylish and modern design with attractive graphics, as compared to simple CD70. People also like its comfort as built quality remains optimum, comparing to other players.
Its pricing makes it accessible to a wide audience, including students and working professionals, solidifying its status as a favorite among motorcycle enthusiasts in Pakistan.
As bikes prices remain out of hands, people are having hard time to upgrade their ride while companies also face low sales.
Honda CD 70 Dream Price
The price of Honda CD70 Dream is Rs168,900 in September 2024.
If you live in Lahore or any other city in Punjab; you might have faced difficulties in getting land record in previous years, but now the government made the land verification process smooth with digitization.
To curb the menace of land mafia and to help residents of Punjab, the government rolled out a systematic process and also eased the process of property transfers and real estate transactions.
A new verification system is Live by provincial authorities to check the legitimacy of properties available for purchase or investment across the region of 110 million people.
The relevant authority in this regard is Punjab Land Record Authority which oversees management and maintenance of land records. You can get different services, including ability to search for and view land records, as well as request copies of documents.
Check Property Ownership Online 2024
Here’s Step by Step Guide To Check property ownership
