The Federal Board of Revenue has issued advice to State Bank for making tax refunds of Rs.8.47 Billion.
According to a statement by FBR, the Payment will benefit 739 claimants from five export oriented sectors which include textile, carpets, leather, sports goods and surgical instruments.
Refund is paid against 4,117 refund payment orders issued up to Nov 8, 2018
The Refunds will be electronically transferred on Monday.
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June 26, 2022: A delegation of K-Electric's majority shareholders representing Saudi Arabia's Aljomaih Holding Company, Kuwait's National Industries Group (NIG), and Infrastructure Growth and Capital Fund (IGCF) called upon the Honorable Prime Minister of Pakistan Mian Shehbaz Sharif during the departed week.
The delegation was led by Sheikh Abdulaziz Aljomaih – Managing Director of Aljomaih Holding Company, one of the strongest conglomerates in Saudi Arabia with interests in diversified industries along with Riyadh Edrees – CEO of NIG.
Prime Minister Shehbaz Sharif highlighted that he has constituted a task force headed by former Prime Minister Shahid Khaqan Abbasi to resolve the concerns related to K-Electric for improving the power utility’s cash flows and streaming generation of electricity from its power plants. Task force members including Shahid Khaqan Abbasi, Federal Minister for Finance, Miftah Ismail, Minister for Petroleum Dr. Musadiq Malik, and Special Assistant to Prime Minister Ahad Cheema were also present.
The delegation briefed the premier about the utility's achievements in the last 17 years. “We enjoy good brotherly relations with Pakistan. This is why we opted to invest in the power sector – which is the backbone of any economy - of Karachi, which holds a special place as Pakistan’s financial and industrial hub,” highlighted Aljomaih who was also the first Chairman of the company post-privatization.
“Aljomaih and I have been part of the KE journey since 2005. As part of the largest investment group in Kuwait, we are ambassadors of Pakistan in investment circles across the GCC. KE’s continued success can be instrumental in generating interest in Pakistan’s energy distribution sector,” shared Riyadh Edrees.
Post-privatization, over USD 4 billion has been invested in KE’s value chain, enabling it to upgrade the power infrastructure including the addition of new power plants. The operational improvements since privatization have resulted in savings of USD 5 Billon to the national exchequer. Today, the company has doubled the number of customers, delivers twice the amount of energy units, and has halved the transmission and distribution losses as compared to 2005.
The investors further informed that the transformation’s success has attracted investors like Shanghai Electric Power (SEP), one of the major players in the global energy sector. However, the acquisition process - which was formally initiated in 2016 - remained stalled due to unresolved issues, they informed.
The delegation also expressed its concerns over the industry's growing challenges that are affecting KE's financial sustainability. The delegation sought support from the premier on the resolution of long-standing issues such as the Power Purchase Agreement (PPA) and the arbitration of historical dues between KE and various government entities, which are deterrents towards the sale of KE's majority shares.
The group of investors was accompanied by Mark Skelton, Director of Infrastructure Growth Capital Fund, Shan Ashary, the Chairman of KE's Board, and Syed Moonis Abdullah Alvi, CEO K-Electric.
The delegation also called upon Dr. Shahid Khaqan Abbasi, Minister for Energy (Power Division) Khurram Dastgir, as well as Tauseef H. Farooqi, Chairman National Electric Power Regulatory Authority (NEPRA).
During the meetings, KE's investors acknowledged Pakistan's importance as an investment destination. They expressed that considering the historical ties and brotherly relations between Gulf countries and Pakistan, the investment was made at a time when the government was actively looking for investment in the power sector. The delegation also reiterated its firm commitment to resolving the challenges and securing the city's energy future, which is inevitable for the country's prosperity.
KE has 3.2 million customers whereas T&D losses have reduced to 15.8% today down from 34.2% in FY05. On the generation front, KE has added 5 efficient power generation plants and fleet efficiency has improved from 25% in 2005 to 38% in 2021.
Press Release
June 26, 2022 (MLN): The highlights of the important economic and business events that took place during the last week are in order so as to become acquainted with the recent developments in Pakistan’s economic and public policy.
Events of Importance through the week:
Announcement:
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June 26, 2022: The amended Finance Bill will incorporate some tangible measures to facilitate the exporters of IT and IT-enabled Services (ITeS).
According to a statement issued by FBR, the sector has been provided a reduced tax rate of 0.25% on their export proceeds which is a quarter of the 1% export tax rate provided to all other exporters of goods.
Meanwhile, the sector has been removed from the tax credit regime to simplify the tax filing system and to remove hassles of compliance that were earlier required to make them eligible for 100% tax credit to claim tax exemption.
The requirements of filing Withholding Tax Statements and Sales Tax returns have been liberalized for the sector and only those who are required under the law will file WHT Statements or the Sales Tax Returns.
For individuals having turnover up to Rs 100 m per year, there is no requirement to file WHT A Statement or to deduct tax.
The definition of IT and IT-enabled services as provided under the Income Tax Ordinance, 2001 has been liberalized by expanding its scope by making suitable amendments and all-inclusive, and “not limited to” definition has been provided.
IT and IT-enabled services exporters have been provided the facility of obtaining a Sales Tax refund in respect of any Sales Tax that has been paid as their input on computers, laptops, stationary other items, etc.
This facility is not available under the Provincial Sales Tax Law.
The demand of the IT Sector for reviving tax exemption for the Venture Capital Fund has been accepted and a new provision has been created for providing Income Tax Exemption to the Venture Capital Fund for three years.
Press Release
June 26, 2022: The Ministry of Planning Development & Special Initiatives is all set to host Turn Around Conference (TAC) with an objective of gathering the nation together to find solutions to the country’s current socio- economic issues. These solutions would be aimed at short term results; if substantial these due deliverance compact ideas can be extended on to mid and long term objectives.
The conference will be held on June 28 at Convention Center which will be graced by Prime Minister Shahbaz Sharif as chief Guest. The prime objective of the conference is to engage all the relevant stakeholders which hold the development sector together from across the nation.
"The aim is to take input, understand and resolve hurdles in Economic Growth in order to place country’s economy back on track" , said the Federal Minister for Planning Development & Special Initiatives, Professor Ahsan Iqbal.
Currently, Pakistan is facing many external and internal challenges which are further compounded by the existing commodity super- cycle and geo-political situation. As the economic growth does not offer enough opportunities for national progress, short-term measures can act as a catayst for speeding up the growth.
Current Socio-economic landscape of Pakistan calls for tactical solutions to address Economic problems. Hence, A quick round of wider and inclusive consultations of experts belong from diversified fields can be helpful in providing solutions to come out of this economic quagmire.
The government has already taken necessary short-term actions to stabilize the economy and deal with the looming balance of payments crisis. However, the government’s focus is to ferret out the medium to long-term solutions to optimise country's economy to tap its full potential in line with Vision 2025.
Moreover, participation of stakeholders from all walks of life is ensured including representatives of Political Parties, Federal Ministries, Provincial Governments, National and International Private Sector Entrepreneurs, International Development and Financial Institutions, Academia, Think Tanks, Independent Experts, NGOs and other parts of Civil society of the country to produce result oriented and focused solutions for bringing a turnaround in the economy of Pakistan.
Press Release
June 26, 2022: Britain, the United States, Japan and Canada will ban new imports of Russian gold as part of efforts to tighten the sanctions squeeze on Moscow for its invasion of Ukraine, the British government said on Sunday.
The ban will come into force shortly and apply to newly mined or refined gold, the government statement said ahead of a meeting of Group of Seven leaders in Germany on Sunday.
The move will not affect previously exported Russian-origin gold, it added.
Russian gold exports were worth 12.6 billion pounds ($15.45 billion) last year and wealthy Russians have recently been buying bullion to reduce the financial impact of Western sanctions, the government said.
"The measures we have announced today will directly hit Russian oligarchs and strike at the heart of Putin's war machine," Prime Minister Boris Johnson said in the statement.
"We need to starve the Putin regime of its funding. The UK and our allies are doing just that."
The latest initiative follows the London Bullion Market Association's (LBMA) March suspension of accreditation for six Russian precious metals refiners.
Reuters
