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Tuesday, 3 January, 2023 I 10 Jamadi us Sani, 1444
From smoke of corruption scandal, Summit Bank emerges as Islamic Banking hope
Senate body furious over absence of energy minister, CEO K-Electric
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Civil, military leaders resolve to observe ‘zero toleranCe’ for terrorism g
War against terrorism to be led by federal, provincial govts as per NAP
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No countr y to be allowed to provide sanctuaries, facilitation to terrorists
ISLAMABAD
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Close calls and abysmal lows – the economy in 2022
KSB Pakistan suspends production due to 'import restrictions'
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rs 15.00 | Vol XIII no 185 I 12 Pages I Islamabad edition
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Cabinet likely to approve MP’s Tax Directory 2020
mian abrar
HE National Security Committee on Monday reiterated its resolve to have zero tolerance for terrorism in Pakistan and reaffirmed its determination to take on any and all entities that resort to violence. “This will be dealt with full force of the state. Pakistan’s security is uncompromisable and the full writ of the state will be maintained on every inch of Pakistan’s territory,” the Committee resolved. The 40th meeting of the National Security Committee, chaired by Prime Minister Shehbaz Sharif, was attended by relevant federal cabinet members, Chairman Joint Chiefs of Staff Committee, all services chiefs, and heads of intelligence services. The forum was apprised of the security situation of the country with a particular focus on recent terrorist incidents in Khyber Pakhtunkhwa and Balochistan, says a handout issued following the meeting. The prime minister emphasized that the war against terrorism would be led by federal and provincial governments as per National Action Plan in accordance with National Internal Security Policy with people-centric socioeconomic development as a priority while the armed forces would provide resolute deterrence and secure conducive and enabling environment. He said the provincial apex committees were being revived in full earnest and law enforcement agencies especially the counter-terrorism departments would be brought up to the required fighting standards with requisite capabilities. The forum con-
ISLAMABAD shahzad Paracha
cluded that no country would be allowed to provide sanctuaries and facilitation to terrorists and Pakistan reserved all rights in that respect to safeguarding its people. The Committee underscored that comprehensive ‘National Security’ revolved around economic security and that sovereignty or dignity came under stress without self-sufficiency and economic independence. The forum undertook a comprehensive view of the ongoing economic situation vis-àvis challenges being faced by the common people of Pakistan, particularly the lower and middle-income classes. The finance minister briefed the forum about the economic stability roadmap of the government including the status of discussions with international financial institutions, exploring other financial avenues based on mutual interests as well as relief measures for common people. In order to strengthen the economy, the Committee agreed on undertaking con-
crete steps including import rationalization as well as preventing illegal currency outflows and hawala business. The emphasis will be specially made to improve agricultural output and manufacturing sector to ensure food security, imports substitution and employment. It was resolved that people-centric economic policies with trickle-down effects on common people would remain a priority. It was also agreed to involve all stakeholders for consensus to realise effective and fast-track economic recovery and road map. While taking into account the efforts for mitigating the challenges of 33 million flood-affected people, the forum resolved to mobilize all resources for their rehabilitation and reconstruction in coordination with the provincial governments and multilateral financial institutions. The Committee also appreciated the ongoing relief efforts led by the prime minister and federating units.
According to credible sources, the Federal Cabinet is likely to approve the Parliamentarians Tax Directory 2020, at today’s meeting. FBR has been publishing Tax Directories of parliamentarians for the last eight tax years. The tax directory usually contains the tax details of members of the National Assembly, Senate and all provincial assemblies. The directory includes the name, CNIC, Constituency, Normal Income, Presumptive Income, Agricultural Income, Income Tax Paid, Share of Tax Paid by AOPs (Association of Persons), which the taxpayer has listed. The meeting of the federal Cabinet, chaired by the Prime Minister Shehbaz Sharif, is to be held on the 3rd of January. The Federal Board of Revenue earlier sent a summary to the federal cabinet. The approval of said summary, by the federal cabinet, will result in the publication of the Parliamentarians Tax directory 2020. The FBR first published a Parliamentarians Tax Directory in tax year 2013. Since then, it has proved to be an integral part in the Board’s attempts at showcasing transparency in tax governance. Discrepancies in the tax records of parliamentarians has led to various political campaigns in the past. Associated with the Tax directory 2020, are important cases, including the Toshakhana reference, against the PTI leader Imran Khan. In addition to the directory, the Board of Investment (BoI) is also expected to brief the cabinet on regulatory rules. The Ministry of National Health Services will also present the summary of reduction of 20 medicines, as per sources. The federal cabinet will also be informed about the decisions taken in the National Security Committee. The highest decision making forum will also consider the law and order situation along with the political situation of the country.
Inflation jumps in Dec’22 despite finance ministry’s claims ISLAMABAD Ghulam abbas
Inflation continued to soar in December 2022 proving the forecast of the finance ministry wrong which had been claiming that inflation was on a declining trend. The country registered a CPI inflation of 24.5% in December 2022 on a year-on-year (YoY) basis. This marked a 0.49% increase compared to the Consumer Price Index (CPI) registered in November 2022. If there was a poll for public grievances in 2022, rising prices and inflation would be at the top of the list. The calendar year 2022 saw record inflation over the course of its 12 months and the last month of the year was no different. In a recently issued report, the finance ministry had claimed that the inflation rate would decrease and remain between 21 to 23% in the remaining month of the current fiscal year. According to the Statistical Office, urban inflation increased 21.6% yearly in December 2022 as compared to an increase of 21.6% in the previous month and only 12.7% in December
2021. The rural CPI increased 28.8% on a year-on-year basis in December 2022 as compared to an increase of 27.2% in the previous month and 11.6% in December 2021. Core InflaTIon: The core inflation (excluding the food and energy components) also increased over the previous month. Core inflation, as a rule of thumb, is a good indicator of the inflation caused by endogenous factors that have little to do with the international commodity prices. Between 2010 to 2022, YoY core inflation averaged 7.6% with the highest reading of 14.9% in October 2022, and the lowest of 3.4% in Sept 2015. The core inflation rate for December was up by 14.7% as compared to December 2021. According to the inflation bulletin, the urban core CPI increased by 14.7% on a YoY basis in December 2022 against an increase of 14.6% in the previous month and 8.3% in December 2021. Likewise, the rural core CPI increased 19% on a YoY basis in Dec 2022 as compared to 18.5% in the last month. On a month-on-month basis, urban core inflation is up by 1.2% and rural by 1.5%.
fooD InflaTIon: Food inflation has over a third (34.58%) weightage in the CPI basket and is the commodity that hits all and sundry. YoY Food inflation was recorded at 35.5% in December against 31.16% in November 2022. In October 2022, food inflation was at an all-time high of 36.24%. In a span of one month, the prices of fresh fruits increased by 13.4%,
onions by 10%, Eggs by 9.7%, wheat by 9.45%, dry fruits by 8.8%, rice by 5.85%, chicken by 5.4%, beans 3.8%, wheat flour 3.7%, sugar 3.1%, milk fresh 1.5% over the previous month. However, the prices of tomatoes decreased by 54%, fresh vegetables by 24.9%, Potatoes by 21.3%, besan by 3.2%, pulse masoor by 2.4%, pulse gram by 2.1%, vegetable ghee by 2%,
gram whole 1.9%, cooking oil 1.4%. On a year-on-year basis, the prices of onions increased 415%, tea 64%, wheat 57.3%, Eggs 54.4%, gram whole 53.2%, rice 46.6%, besan 46.4%, pulse gram 45%, Chicken 43.8%, pulse moong 42.8%, mustard oil 41.5%, wheat flour 40.6%, pulse mash 38.3%, cooking oil 32%, vegetable ghee 30%, milk fresh 26%, potatoes 24.7%, dry fruits 36.2%, fresh fruits 34% and pulse masoor by 24.6%. Inflation in Housing, Transportation and Cost of living: Housing and utility charges have a major weightage after food in CPI. Contrary to other trends, this showed a smaller YoY increase in December of 6.95%, against 9.9% in November. Similarly, in Dec 2022, transportation charges were 41.2% costlier as compared to December 2021. The charges for motor fuel on a year-onyear basis increased 49.4% The YoY Recreation and culture cost increased by 38.5%, Alcoholic beverages and tobacco 36.2% (35.9% in Nov), restaurants and hoteling 27.37% (28.37% in November).
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