Daily Times

ISLAMABAD: Finance Minister Asad Umar said Pakistan is in no rush to sign a deal with International Monetary Fund (IMF) to resolve its balance-of-payments issue.

The minister said “I have no urgency right now to get into an IMF program. We are in discussions with the IMF.

When we reach the outlines of a program which we believe is in the best interests of Pakistan’s economy, we’ll go ahead and sign that.”

He added that financial assistance from friendly countries would help cushion Pakistan’s economy over the remaining current financial year.

“The recent support has resulted in a current account deficit of $6-7 billion less than the previous financial year,” Asad claimed.

Responding to a question regarding reviewing agreements related to the China-Pakistan Economic Corridor (CPEC) program, Asad said it was not off the table.

“The IMF had a lot of questions. The Americans had a lot of questions around CPEC. There are a few other projects in the area of the industrial cooperation framework that is being finalised,” Asad shared.

“So, from government-to-government, which is what the first phase of CPEC was, it will be moving to business-to-business,” the minister continued.

Referring to trade likelihood with India, he ruled out any discussion in this regard before general elections 2019 there India and said Pakistan would not take “any kind of unilateral step” when it comes to granting India Most Favoured Nation (MFN) trade status. dna

Dec 17 last date for filing income tax returns

Federal Board of Revenue (FBR) has allowed filing of Income Tax returns until 17th December 2018 because of the weekend failing on 15th December which was previously announced as the deadline for filing of returns, says a statement issued by the FBR.

The statement issued by the Official Spokesperson FBR said that a number of queries have been received about extension of last date of filing of return but the return filing date is not being extended any further.

However, since the last date of filing of return falls on a non-working day, hence as per General Clauses Act the closing date for filing of Income Tax returns falling on 15th December 2018 as per previous announcement is automatically extended to next working day i.e. Monday (December 17).

The tax offices will be extending help in filing of returns on Monday till close of office hours and the returns will be received electronically till 12 midnight.

Moreover, the Commissioners are also authorized to grant extension for a period up to 15 days on case-to-case basis.

Although the receipt of return will not be blocked after due date, yet as per existing law, the names of persons who fail to file return by the closing date (or by the date extended by the Commissioners) will not be put on the Active Taxpayers List.

PEW seeks concrete measures to support economy

The Pakistan Economy Watch (PEW) on Saturday asked the government to take concrete steps to protect the vulnerable masses from inflation and shield the limping economy facing extreme pressure.

Abrupt devaluations have filled the masses and the business community with bewilderment while the investment and expansion plans have been put on hold, it said.

Pakistan’s long-term debt rating has been downgraded by a global rating agency due to repayment obligations, low foreign exchange reserves, and fragile fiscal situation which should be considered a tip of the iceberg, said Dr. Murtaza Mughal, President of PEW.

He said that the government claims that the exchange rate has now reached near to equilibrium and is reflective of the market conditions while independent experts continue to question the assertion.

The exchange rates generally move on demand and supply in the market and the key reason behind the recent devaluation was the last fiscal year’s $19 billion current account deficit which is natural but the central bank should protect the rupee-dollar parity, he added.

Dr. Murtaza Mughal said that the forex reserves are not enough, therefore, the government should finalize talks with IMF without any delay otherwise rupee will come under more pressure.

He noted that remittances were able to support a trade gap of $36 billion by almost 18 billion dollars which were insufficient therefore a major foreign exchange support has become imperative.

He said that imports have dropped while exports have risen by 4 percent but it has failed to ensure stabilization and growth resulting in the freefall of rupee.

The government should take steps to contain rising prices, stop the flight of capital and discourage the flow of undervalued imports which are damaging the fragile economy, he demanded.

Published in Daily Times, December 16^th 2018.