MediaLine Pakistan

Pakistanis own properties with a combined value of an estimated $11 billion (Rs. 30 trillion) in Dubai according to a bombshell report ‘Dubai Unlocked’, based on leaked property data.

Dubai Unlocked is an international investigation into the owners of real estate in Dubai. The property records come from multiple data leaks, mostly from the Dubai Land Department, as well as publicly owned utility companies. Taken together, the data provides a detailed overview of hundreds of thousands of properties in Dubai and information about their ownership or usage, largely from 2020 and 2022.

The data was obtained by the Center for Advanced Defense Studies (C4ADS), a non-profit organization based in Washington, D.C., that researches international crime and conflict. It was then shared with Norwegian financial outlet E24 and the Organized Crime and Corruption Reporting Project (OCCRP), which coordinated an investigative project with dozens of media outlets from around the world.

According to the data leak, 17,000 Paki
stanis, including prominent politicians, businessmen, and retired generals, own 23,000 residential properties in Dubai.

Among the Pakistanis listed in the leaks are President Asif Ali Zardari’s three children, Hussain Nawaz Sharif, Interior Minister Mohsin Naqvi’s wife, Sharjeel Memon and his family members, Senator Faisal Vawda, four MNAs and a number of MPAs from the Sindh and Balochistan assemblies, according to The News, which along with Dawn from Pakistan participated in the project.

According to the report, Indians are top of the list of foreigners who own properties in Dubai with around 29,700 owners and 35,000 properties. Pakistanis are second on the list followed by United Kingdom nationals and Saudi nationals.

It is pertinent to mention here that a mere mention in the leaked data is not evidence in itself of financial crime or tax fraud. Dawn reported that a number of those approached for a comment on their properties said they were declared to the tax authorities.

Source: Pro Pakistani

The Sindh Government is planning to establish new industrial zones across the province, mainly in Karachi, under a new industrialization policy to attract local and foreign investors and businessmen to boost up economic activities across the province.

Jam Ikramullah Dharejo, Minister for Industries and Commerce stated this while talking to business community at the Federal B Area Association of Trade and Industries (FBATI) on Tuesday. He said industrial zones are being considered at various locations, including Port Qasim, to enhance industrial activities and employment opportunities in the province and commercial capital.

The provincial government is also planning to allocate funds in the Annual Development Plan (ADP) to develop the required infrastructure across the seven industrial zones in Karachi aimed at facilitating the existing industrialists in the province. He said the provincial government under his ministry is working to introduce one-window operations for industrialists to resolve their issues
immediately.

On the other hand, provincial departments-Sindh Environmental Protection Agency, Stamp Duty and EOBI-are being directed to facilitate industrialists rather than interrupt their business activities. Jan further stated that the provincial government is in dialogue with the federal government to ensure the supplies of natural gas and electricity to the province’s residents and industries in accordance with the constitution’s rights.

The provincial minister further said the government will introduce a public-private partnership to promote the concept of setting up combined effluent plants in industrial zones, as required by exporting countries. President FBATI Syed Raza Hussain said the provincial government should continue to collaborate with industrialists through monthly meetings of the industry liaison committee to address industry challenges meaningfully.

He pointed out that industrial land is very limited in Karachi, hence new industrial units are not being established despite its demand in
various sectors. He further suggested that the government should devise an affordable financing scheme for industrialists who own land in industrial zones but lack the capital to expand their operations.

On occasion, CEO FITE Babar Khan said Chinese investors are interested in setting up industrial units in Karachi but are reluctant to invest due to the city’s lack of facilities, dilapidated infrastructure, and security issues. He pointed out that several companies in Sindh that are mulling to relocate their operations to Punjab due to the availability of affordable lands, abundance of water, and required infrastructure.

There should be an industrial belt from the outskirts of Karachi to major cities of the Sindh to cater to industrial activities across the province with availability of infrastructure and utilities for investors.

Source: Pro Pakistani

Pakistan Software Houses Association (P@SHA) Chairman Muhammad Zohaib Khan Tuesday said that unanimous and representative budgetary proposals regarding the IT industry from the platform of P@SHA have been submitted to the concerned ministries and important institutions.

In a statement, Khan expressed his apprehensions on the applicable tax applied on IT professionals’ salaries employed in Pakistan in comparison with remotely working individuals, and proposed that the rate of payroll tax for persons employed by PSEB and P@SHA-registered companies shall not exceed 5 percenr of their salaries. A provisio may be added after the table in First Schedule (Section 149) of the Income Tax Ordinance (ITO) 2001 as follows:

‘Provided that maximum rate of tax applicable on salary of an individual shall not exceed 5 percent if such individual is receiving salary from a person registered with PSEB and P@SHA,’ he said.

Khan also proposed a demand for exemption from income tax for IT exporters. Nonetheless, in principle, t
his exemption may only be made available to such exporters who are registered with Pakistan Software Export Board (PSEB) and P@SHA.

He added that no exemption certificate from FBR shall be required for such exemptions. He further proposed that the following clause may be inserted in Part I Second Schedule as clause 133 of the Income Tax Ordinance (ITO) 2001: ‘The income from export of Information Technology (IT) and IT-enabled services as defined shall be exempt from tax subject to the condition that the person is registered with PSEB and P@SHA.’

P@SHA Chief proposed that a clarification shall be added in section 4C to identify that super tax is not applicable on exporters of IT and IT-enabled services for tax year 2022 as they were eligible for 100 percent tax credit under section 65F.

However, currently tax officers are sending unjustified notices to the companies, the clarification will help in resolving the issue. Although a decision has been issued by Tribunal in favor of an IT company; but, in order
to avoid further litigation an explanation may be inserted.

In light of the industry statistics, P@SHA Chairman said that the IT industry in Pakistan – which has the largest share in services exports – has achieved remarkable milestones: crossing $2.6 billion in exports in 2023; it holds the unique distinction of being Pakistan’s only export industry with a 77 percent trade surplus; supports the livelihoods of 800,000 professionals, freelancers and their families as well as over 10,000 companies and the IT industry has proven to be the fastest-growing sector in Pakistan as well. It has demonstrated the potential to address the current account deficit and shape the economic future of Pakistan, he added.

Source: Pro Pakistani

The State Bank of Pakistan (SBP) has forecast the GDP growth rate to be settled between 2 and 3 percent in the current financial year as against the target of 3.5 percent set earlier despite the improvement in macroeconomic indicators.

According to the State of Pakistan’s Economy Report for H1-FY24 released today by the State Bank of Pakistan (SBP), the real economic activities moderately recovered against the contraction last year, while Stand-By Arrangement (SBA) with the IMF helped reduce stress on external account.

The modest economic recovery is expected to continue in the second half of the current financial year. This is also reflected by an improvement in business confidence about expected economic conditions since November 2023. Continued tight monetary policy stance and fiscal consolidation are expected to keep domestic demand in check.

The anticipated increase in wheat production may help maintain a downward trajectory in food inflation by improving supply and discouraging any speculative senti
ments. On the other hand, any significant increase in administered energy prices may offset the impact of these positive developments on the inflation outlook.

Incorporating these factors, the SBP has revised its inflation projection range to 23.0 – 25.0 percent for FY24. However, escalating geopolitical tensions, unfavorable weather conditions, adverse movements in global oil prices, and subsequent external account pressures are some important upside risks to this outlook According to the SBP, the remittances inflows are likely to settle by $28 billion and will miss its target of $30 billion for FY25.

The export receipts and imports will touch its targets of $30 billion and $52 billion The report expects a continuation of modest economic recovery in the second half of FY24. In the backdrop of improvements in business confidence, high-frequency demand indicators since November 2023, and prospects for good wheat production during FY24, the SBP projects real GDP growth in the range of 2 – 3 percent for FY24.

I
nflation

The NCPI inflation, on the other hand, is expected to remain downward trajectory despite uncertainties persisting in both the domestic economy and the international commodity market. Keeping these developments in view, the SBP projects the average NCPI inflation in the range of 23.0 – 25.0 percent for FY24, lower than 29.2 percent in FY23, and is expected to come down to 5 – 7 percent range by September 2025.

Moreover, the external account outlook has improved as the CAD is expected to be lower than the earlier projection, whereas disbursement of last tranche of US$ 1.1 billion under the IMF’s SBA would help maintain external buffers. On the external account, a slightly improved global outlook and domestic growth prospects are anticipated to boost foreign exchange earnings from exports and remittances. While resilient global demand may have a positive impact on Pakistan’s exports, moderating global commodity prices may significantly suppress import prices, leading to an overall contraction in impor
t bill and, hence improvement in trade balance.

Current Account

On external account, the CAD is projected to remain lower than earlier estimates, amid a slightly improved global outlook and domestic growth prospects to boost foreign exchange earnings from exports and remittances.

The SBP projects the current account deficit in the range of 0.5 – 1.5 percent of GDP for FY24. This macroeconomic outlook remains susceptible to escalating geopolitical tensions, unfavorable weather conditions, adverse movements in global oil prices, and subsequent external account pressures.

Debt

Further adjustments in energy prices and fiscal consolidation -warranted for slowing the pace of debt accumulation – may also weigh on economic activities and inflation. Going forward, further adjustments in energy prices and fiscal consolidation, warranted for slowing the pace of debt accumulation, may continue to weigh on economic activities. In this context, achieving higher On fiscal side, the primary balance posted a higher surpl
us during H1-FY24 compared to H1-FY23 on account of strong growth in both tax and non-tax revenues that outpaced the increase in non-interest expenditure.

The fiscal deficit will go up to 8% of GDP as compared to the set target of 6-7 percent, the report noted.

Source: Pro Pakistani

President Federation of Pakistan Chamber of Commerce and Industry Atif Ikram Sheikh has said that the Business Community is ready to help the government in taking domestic exports to $100 billion.

The solution to energy problems in Pakistan is necessary now and must be a business-friendly environment because Without a business-friendly environment, it will not be possible to take exports to 100 billion dollars by 2030. We demand that incentives should be given to the export industry in the budget of the new financial year.

Federation President Atif Ikram Sheikh said that the Saudi business delegation’s visit to Pakistan has been very positive. Investors from other countries, including Saudi Arabia, should be invited.

In the joint coordination committee meeting with China, the discussion on economic zones should be taken forward. If industries are set up in economic zones, employment opportunities will be created in the country.

The government’s initiatives to attract foreign investment in Pakistan are co
mmendable. The country’s economy can be improved only through investment.

Source: Pro Pakistani

Prime Minister Shahbaz Sharif chaired a high-level meeting on the China-Pakistan Economic Corridor (CPEC) and other projects under Chinese investment.

PM Shehbaz instructed all ministries to coordinate in order to expedite the speedy implementation of CPEC Phase 2. He stressed that any delays or interruptions in CPEC-2 by ministries and government institutions would not be tolerated.

The Prime Minister emphasized the importance of making Gwadar Port fully operational and directed that a portion of domestic imports, particularly government imports, be routed through Gwadar Port.

Prime Minister Sharif also underscored the need for foolproof security for Chinese residents in Pakistan, highlighting the long-standing friendship between China and Pakistan. He expressed the importance of further promoting trade and economic relations with China, noting that the China-Pakistan economic partnership is at its highest level in history.

Relevant officers and institutions were urged to ensure that both countries achi
eve positive outcomes from this partnership.

The meeting included detailed updates on the progress of CPEC-2. Attendees included Federal Ministers Ahsan Iqbal, Muhammad Aurangzeb, Jam Kamal Khan, Ahad Cheema, Rana Tanveer Hussain, Qaiser Ahmed Sheikh, Sardar Owais Khan Laghari, Dr. Musadik Malik, and others. High officials and the chief secretaries of the four provinces participated via video link.

Source: Pro Pakistani

Cnergyico PK Limited, Pakistan’s largest vertically integrated oil refining company, Tuesday announced that it is temporarily shutting down its refinery.

In a notice to Pakistan Stock Exchange (PSX), the company said that the decision has been taken due to unavoidable ullage issues pertaining the alarmingly high petroleum products stocks (mainly HSD and PMG).

The company highlighted that it has written a letter to the Ministry of Energy (Petroleum Division) to support in timely disposal of its petroleum stocks, enabling it to restart production.

Source: Pro Pakistani