Bilal's Blog

Introduction In the constantly evolving economic landscape of Pakistan, understanding the latest tax reforms has become an absolute necessity for businesses, individuals, and investors alike. As part of its fiscal strategy aimed at enhancing tax revenue and encouraging economic growth, the Pakistani government has introduced significant changes to the country’s taxation system. These changes range from corporate taxation to adjustments in the Goods and Services Tax (GST), and modifications in personal income tax brackets. Navigating the nuances of these reforms can be challenging but is essential to ensure effective financial planning and tax compliance. This comprehensive blog post provides an in-depth analysis of Pakistan’s latest tax modifications, shedding light on their implications across various sectors. Whether you’re an entrepreneur assessing your corporate tax obligations, an individual re-evaluating your income tax outlay, or a foreign investor discerning the changing inve...

Every time Rupee slides against Dollar different theories come up from different sections of society.   The policies implemented by Government seems not fully thought and second, third angle not thought about. Sorry state is quite evident in all the previous Governments. Same is the case with Foreign Exchange Companies launch. Liberalization of retail sale of foreign currencies has the implications which are haunting our foreign exchange reserves, money laundering, corruption and terror financing. The Exchange rate on 9 th May 2008 against dollar was 67 rupees. After 4 months in power of PPP the rupee against dollar started sliding from July 9 th 2008 with Rs 4 and at the of their term 24 th March 2013 Rs 98 to 1 dollar. The PML(N) took over on 5 th June 2013 the exchange rate was 98 to dollar and their term ended on May 31, 2018 was Rs 115 to dollar. If we compare 2008 exchange rate with 2018, 10 years slide of rupee accounts for Rs 48 in terms of percentage 32% app...

There is huge furor over IMF visit someone claiming government has decided to go for IMF bailout package or entering into another agreement with IMF. Where government is claiming they have not decided to avail IMF bailout package or not. The government is playing wait and see trying out other options to cover for import bills. IMF delegation was here from 27 th September to 4 th October 2018, on the last day of visit shared their analysis with media. The main observations included the following: Pakistan is facing significant economic challenges, with declining growth, high fiscal and current account deficits, and low levels of international reserves. Recent policy measures are steps in the right direction, but not yet sufficient. Decisive policy action and significant external financing will be needed to stabilize the economy. Once stabilization is beginning to take hold, increasing focus is warranted on critical reforms to foster...

Pakistan is one of the very few blessed countries in the world. We should take pride GOD has blessed with all fruits, vegetables, crops and minerals a country need to prosper at all cylinders. Pakistan has got all of them. But unfortunately Pakistan never prosper in last few decades as it should have been. We reeling with energy shortages which are badly impacting our manufacturing, exports etc putting extra ordinary pressure on Pakistan’s economy. Pakistan seeking money support its import of oil and gas just to keep our industrial wheel keep on moving. Can anyone guess a country with 9 billion barrels reserves of oil and 105 trillion cubic feet gas reserves facing this situation? Anyone can be dumb founded with this stats how can a country with such energy reserves is begging for support and not able to produce the goods at a lower cost to be one of the top competitive exporters in the world. Looking for outside world to buy energy sources to keep the country moving, wh...

It is been decades Pakistan’s energy crisis is increasing with each passing day. Every government claims its efforts on energy front but nothing concrete has been done. Even in 1950 a student of NED university student Malik Aftab Ahmed Khan came with an idea and his article was published in Military College of Engineering “Persian Pipeline” he was awarded Sitara-e-Jurat. The project was conceptualized in 1989 and later in 2012 the annual conference of the International Association of Energy Economics backed the proposal. The Iran – Pakistan governments signed preliminary agreement in 1995. In 2014 the then Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi informed the National Assembly that project is off the table citing the International Sanctions as the reason. The previous government after putting Iran Pakistan gas pipeline off table went for LNG import the LNG is costing more than $ 10.80 against $ 4.93 per British Thermal Unit cost of Iran Pakista...

It is really heartening to see Pakistan got the huge deal signed with Russia, which open opportunities for Pakistan. It will not only impact the industrial growth, but will provide the support to level the electricity production, gas to houses. This will reduce the import bill of petroleum, till the oil city dream of government becomes reality. However the completion of both project oil city in Baluchistan and Pakistan Russia pipeline will be almost more or less same. The agreement with Russia is signed where oil city project inking will be decided during Saudi Arabian delegation arrival in October 2018. But the current situation will remain the same till these things mature. Here one should not ignore that the current Government has either good or bad credibility history at this point of time. There is no doubt of cricketer Imran Khan but the Government is not all about one person. The credibility of the Government will be of all ministers, bureaucrats, advisers not only Imr...

It is really heartening to see Pakistan got the huge deal signed with Russia, which open opportunities for Pakistan. It will not only impact the industrial growth, but will provide the support to level the electricity production, gas to houses. This will reduce the import bill of petroleum, till the oil city dream of government becomes reality. However the completion of both project oil city in Balochistan and Pakistan Russia pipeline will be almost more or less same. The agreement with Russia is signed where oil city project inking will be decided during Saudi Arabian delegation arrival in October 2018. But the current situation will remain the same till these things mature. Here one should not ignore that the current Government has either good or bad credibility history at this point of time. There is no doubt of cricketer Imran Khan but the Government is not all about one person. The credibility of the Government will be of all ministers, bureaucrats, advisers not only ...

Introduction Every person in the Country agrees we are in financial crisis. The Government not so strong based on coalition support. Stronger numbers in federal and provinces could have made it easier for the Government to encounter the basic issues more easily. The Government will be supplementing its numbers by issuing Ordinance instead of passing legislation through parliament. The Government is taking bold emergency steps to track down the capital, money laundered to overseas, it is highly commendable. But we have to realize the legislation and efforts require completing it. The Government will be dependent on other countries for Mutual Legal Assistance (MLA) and bilateral agreements for extradition, repatriation. It will take time to do all. The short term initiatives for Domestic Financial Governance (DFG) should also be prioritized to get the going along with efforts for Money Laundered. This will show immediate impact, Government funding crisis will replace venti...

There is a long list of items where we can work and give boost to the trade deficit recovery. To start with Steel imports where the FBR collected more than Rs65 to Rs 70 billion, contribution from 11 million tons to 12.5 million tons of steel iron imports. The Government of Pakistan has to turn towards the steel industry with special emphasis on revamping Pakistan Steel Mills to restore and enhance its production capability. Currently it has 2.2 million tons production capacity, which is peanuts contribution to national demand of steel supply. The Government should plan and implement policies, strategy to steel industry. Another major outflow of foreign exchange is import of generators which was on increase in 2016 and 2017, amounting to Rs 282 billion Now with beginning of last quarter of calendar year the Oil prices are expected to go up to $100 per barrel. Since USA sanctions against Iran is pushing pressure on Oil prices. Iran is third largest Oil producer, around 2 million...

The very sound of auctioning the vehicles fleet at PM housing was like music. The Governments estimates of revenue generation through this auction initially seemed on a very high side. Even during discussion within my circle mostly Imran Khan Fans I was reprimanded for my opinion. I still feel the proceeds milestone cannot be achieved, I have couple of reasons to prove it, until and unless the true patriot willing to buy them on Government’s expectations.  The buyers inspecting cars and mostly interviewed by private channels are the big fish of automobile dealers. They are addict of buying automobiles are imported through red channels by evading duties, taxes etc.  If we take example of Mercedes cars put up for auction older than 2006 model, the duty and taxes displayed around Rs. 3.9 million, where the later models of 2006 and 2007 SE edition of the same make is available in Rs. 2.5 million to Rs. 3.0 million to these dealers/buyers. So at auction the cost of vehicles will b...