Thursday, December 07 2023

Rupee makes paltry gains vs dollar in 7 sessions
The rupee continued its winning streak for the seventh session in a row gaining 24 paise against the US dollar in the interbank market on Wednesday. However, the local currency’s performance remained unimpressive as it appreciated by just Rs1.50 in the last seven trading sessions. Some senior bankers say the exchange rate stability is good for attracting foreign investments and supporting economic growth. The SBP reported the dollar closing price at Rs284.14 compared to Rs284.38 a day before. Bankers said influencing rupee-dollar parity through verbal instructions by the State Bank is a settled practice in the interbank market, which has resulted in a kind of stability with slow imports and better inflows of export proceeds.
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ADB approves $659m project funding
The Asian Development Bank (ADB) on Wednesday said it had approved $659 million for three separate projects to be implemented by the federal government, Sindh and Khyber Pakhtunkhwa provinces for more inclusive and sustainable growth and development. In a statement, the Manila-based lending agency said the projects will focus on improving domestic resource mobilisation, rehabilitating schools damaged by the devastating August 2022 floods and enhancing agricultural productivity to improve food security. “This significant new wave of financing will help Pakistan recover from the impacts of last year’s cost-of-living crisis and super-floods and return to the path of long-term development that is sustainable and inclusive,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “This multifaceted approach is part of ADB’s strategic engagement in Pakistan and cohesively deploys our programme lending and project investments to enhance support for Pakistan’s efforts to improve its economic situation and enhance the quality of life for its people.”
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Over 10,000 FBR officials fail to file tax returns
Over 10,000 employees of Pakistan’s top tax authority have been identified as non-filers of income tax returns in the last two years, Dawn has learnt from knowledgeable sources. This raises serious concerns about the effectiveness of efforts to document the economy and broaden the tax base particularly when the tax authority itself struggles to ensure its employees are on the tax roll in the tax years — 2022 and 2023. The trend of non-filing is particularly prevalent among officials below the grade-17 level across the country. Despite the high incidence of this issue, the Federal Board of Revenue (FBR) has yet to take action against these non-compliant employees. It is worth noting that the total workforce of the tax authority stands at 25,000 nationwide. Of these, the officers above grade 17 are 1,700. The non-filers officers of grade 17 and above were approximately more than 500 in 2022. However, the number of non-filers in this category is still at 300 for 2023. Only 1,400 officers have filed their tax returns despite a special extension available to them until Dec 31. In the tax year 2022, there were over 500 non-filing officers of grade 17 and above. However, this number has seen a slight decrease to around 300 for 2023. Despite the special extension granted until December 31, only 1,400 officers have filed their tax returns for the tax year 2023. This highlights a persistent issue of tax non-compliance among higher-grade officers.
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Wednesday, December 06 2023

Moody’s lowers China’s credit rating outlook
Ratings agency Moody’s on Tuesday downgraded the outlook on China’s credit rating to “negative” from “stable” on the back of rising debt in the world’s second-largest economy. China’s post-pandemic recovery has been hampered by weak consumer and business confidence, a persistent housing crisis, record youth unemployment and a global slowdown that is weighing on demand for the country’s goods. Those woes have piled pressure on central and local governments to step in with more financial support following a one trillion yuan ($137bn) sovereign bond issuance by Beijing in October. Moody’s said Tuesday its decision “reflects rising evidence that financial support will be provided by the government and wider public sector to financially stressed regional and local governments and state-owned enterprises”.
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Onion surges to Rs180 per kilo on massive exports
Good quality onion prices have swelled to Rs160-180 per kg from Rs120-140 two weeks back as retailers blame massive exports for the price spiral. They said that many inflation-hit consumers have restricted their purchases to less than one kg to manage their daily expenses of other items due to high prices. There is also no relief in new potato prices which are available at Rs120 per kg, while Commissioner Karachi issued the retail rates at Rs109 per kg on Tuesday. Also, consumers complain vegetable vendors are selling wet onions in various areas. Commissioner Karachi’s price lists reveal Mandi/Bachat Bazaar and retail rates of onion at Rs140 and Rs160 per kg on Dec 5 as compared to Rs120 and Rs138 on Dec 1.
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