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Souvenir Shop inaugurated

ReMOvINg fAuLTS

Bajwa, nisar urge officials to expedite revenue generation FBR Member FATE Riffat Shaheen Qazi says all complaints about IRIS software are“technical”so they are forwarded to FBR Chairman and Member IT for immediate action. | See PAge 02 | ReSOLvINg ReTuRN ISSueS

— Exclusive Customs Today photo

Complications arise in every new system but with the passage of time they are improved.We will resolve the issues related to income tax returns, says Raana Amhad.

See PAge 03 | CuRBINg SMuggLINg

KARACHI

DG Customs Intelligence Luftullah Virk stresses effective measures in order to curb smuggling and formulate a strategy for increasing the revenue. | See PAge 1O | SeIzINg RS180M gOOdS

The Directorate of Customs Intelligence and Investigation Lahore impounded Rs 180 million goods in 24 cases which involved taxes and duty worth Rs 100 million. | See PAge 04 |

SOHAIL RAB KHAN www.customstoday.com

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BR Chairman Tariq Bajwa and Member Customs Nisar Muhammad Ali Khan held meetings with officials of the Pakistan Customs and Inland Revenue Services (IRS) during their one-day visit to Karachi.

During the meetings, both the highups stressed upon revenue generation and measures against revenue leakages and corrupt practices.

Chief Collector-Appraisement-South Nasir Masroor Ahmed, Chief CollectorSouth (Enforcement) Muhammad Nazim Saleem, Director General Customs Valuation Rubina Athar, Director General of the Directorate of Transit Trade Khawar Farid Maneka, Director Transit Trade Ibrahim Vighio, Director Input Output Co-efNicient Organisation Shahnaz Maqbool, Collector MCC-Pre-

ventive SM Tariq Huda, Collector MCC, Appraisement-East Najeebur Rehman Abbasi, Collector MCC AppraisementWest Muhammad Saleem, Collector MCC Port Qasim Surriya Butt and ofNicers of Inland Revenue Services (IRS) attended the meetings. Bajwa and Khan made it clear that there was no room for corrupt and inefNicient ofNicials in the Pakistan Customs Service (PCS).

The FBR chairman emphasised on achieving revenue targets and keeping vigilant eye on unscrupulous importers to detect duty and tax fraud. Bajwa also lauded the efforts of the Nield formation collectorates in meeting revenue targets during current Niscal year 2014-15.

Later on, Collector MCC-Preventive SM Tariq Huda, Collector MCC, Appraisement-East Najeebur Rehman Abbasi, Collector MCC Appraisement-West Muhammad Saleem and Collector MCC Port Qasim Surriya Butt briefed Bajwa and Khan about the current status of the

Tariq Bajwa and Nisar Muhammad made it clear there is no room for corrupt and inefficient officials in Pakistan Customs Service

revenue collection and imports.

The FBR head urged the customs officials to keep the same pace of revenue collection. Later on, both the FBR high-ups departed for Islamabad in the evening.

Meanwhile, FBR Chairman Tariq Bajwa inaugurated Souvenir Shop at the ground Nloor of Customs House, Karachi. He was accompanied by Member (Customs) of the FBR Nisar Muhammad Khan, while performing the inauguration ceremony of the Souvenir Shop. The Souvenir Shop offers a wide range of mementos, paintings, diaries, mugs, T-shirts, baseball caps, decorative copperware items, small clocks embedded in quality-Ninished wood, diaries and other such items- all with Customs House Karachi.

A total of eight paintings by artist M. Nasir Khan also make up the mosaic of items offered at the Souvenir Shop.

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NATIONAL

OCTOBER 28 - NOVEMBER 03, 2014

gujranwala excise impounds 78 vehicles for not paying token tax

SIALKOT: Excise and Taxation Department has impounded as many as 78 different vehicles and has fined Rs. 0.7 million to them for non-payment of the token taxes, during a special general hold up at all the entry and exit points of Gujranwala city. E& T Gujranwala Division Director Ashiq Hussain Shah said that the operation against the token tax defaulter vehicles would continue as the hectic efforts were being made to ensure the early recovery of the outstanding dues from the defaulters here.

LAHORE

MAHMOOd IdReeS www.customstoday.com

he Federal Board of Revenue (FBR) Regional Tax Office (RTO) Lahore has issued as many as 165 show cause notices to companies for not filing the withholding statements.

As per details, it is a must for all companies to submit their withholding statement to the FBR on a monthly basis to help the board calculate their taxes.

Sources told Customs Today that the FBR has taken action against the companies that did not submit their statements during the first quarter of current fiscal year. They added that heavy penalties would be imposed on the non-filers if they failed to meet the department’s rules.Sources also said that the notices have been issued to various sectors such as textile, oil, steel.

Several contractors and builders have also been issued the show cause notices in this regard. According to available documents, the steel companies which did not submit their withholding statements are: Barkat Steel Mills, Sufi Steel Industries, Subhanullah Khair, Ahmad Noor, Liaqat Steel Industries, Rafique Bros Steel, RR Mills and Siddique Iron Industry.

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Customs Internal Audit recovers Rs431 million he Directorate of Internal AuditCustoms, Karachi Region recovered Rs 431.671 million altogether by settling “paras”during the audit years from 2010 to 2014, it was learnt here on Monday.

The Karachi Directorate of Internal Audit-Pakistan Customs detected a recoverable amount of Rs20,267.476 million through 514 paras in the year 2013-2014 while none of the single para has yet to be settled and recoverable amount stood at 20,267.476. Similarly, the Directorate of Internal Audit-Customs, Karachi Region settled 12 paras out of total detected 127 paras in the year 2012-13 and recovered an amount of Rs 144.172 million out of total detected amount of Rs1,297.794 million. The 115 paras are still in pending and Rs1,153.244 million amount is yet to be recovered by settling those pending paras.

In the year 2011-2012, the Directorate of Internal Audit settled 88 paras out of total 396 paras and recovered an amount of Rs 98.995 million while total recoverable amount was Rs11,445.586 million. The total pending paras in the year 2011-12 were 308 and the amount to be recovered stood at Rs10,764.944 million.

The Directorate of Internal Audit settled 81 paras in the year 2010-2011 out of total 467 paras. —CT Report

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fBR software IRIS: Traders hate what they cannot use All complaints about ‘technical fault’ have been forwarded to FBR Chairman Tariq Bajwa and the FBR member IT ISLAMABAD

MuHAMMAd fAIzAN www.customstoday.com

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everal traders have started identifying ‘faults’ in the Federal Board of Revenue’s exemplary programme IRIS to avoid themselves from using it.

Customs Today learnt that some businessmen have started propaganda against the programme and the FBR has received several complaints in this regard.

FBR Facilitation and Taxpayers Education Member Riffat Shaheen Qazi said all complaints were about “technical fault” so they have been forwarded to FBR Chairman Tariq Bajwa and the FBR IT member. The complaints have been sent by tax bars, chambers and other business and trader organisations.

FBR IT Secretary Zainul Abdeen told Customs Today that there was no technical fault in IRIS. “Fault lies with the people as they cannot use it. It is a new programme and people will take time in getting familiar to it. So far IRIS is performing pretty well. I monitor it myself and have given my cell phone number.

I can be contacted anytime in case of problem.” He added, “People need to be computer literate to use this programme. Now audio/video option has been added to help such people. Some people forget their password. It is the best pro-

— Exclusive Customs Today photo

FBRissuesnoticesto 165companiesfornot filingWHTstatements

Member fATe Riffat Shaheen Qazi gramme and business community will get familiar to it with the passage of time.”

Meanwhile, virus has entered software (IRIS) installed to Nile tax returns online. Sources said thousands of businessmen had so far not been able to Nile tax returns as faults

appeared in IRIS. The FBR had installed the software this year, but it is not working properly. Measures are being taken to remove the virus. Last date for Niling of income tax returns is 30 October.

Traders said they were facing difNiculties in Niling income tax returns

23,898 containers left Karachi ports for Afghanistan KARACHI

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uring the seven months of this year till September 30, a total of 23,898 containers left the two Karachi Ports; namely Karachi Port Trust and Port Bin Qasim, for Afghanistan under Web Based One Custom (WeBoc), the computerized system of Pakistan Customs.

The two Karachi ports continue to facilitate not only commercial imports but also non-commercial cargoes to Afghanistan. According to details, of the 23,898 containers laden with commercial imports to Afghanistan, 21,213 were loaded with general cargo while the remaining 2,685 carried fabrics.

Sources said that the bulk of the containers landed, cleared and released from the Karachi Port Trust while just about 10 percent landed, cleared and released from Port Bin Qasim, some 50 kilometres east of Karachi.

In March, a total of 2,964 containers were transported from the two ports of Karachi. These included 2,828 containers of general cargo and

Just about 10pc containers landed, cleared and released from Port Qasim

136 containers of fabrics.

In April, a total of 2,676 containers including 2,344 general cargo and 329 containers of fabric were transported and in May, a total of 2,567 containers were released and this included 2,296 containers of general cargo and 291 containers of fabrics. Similarly, a total of 3,151; 3,473; 4,518 and 4,532 containers were transported to Afghanistan in the months of June, July, August and September respectively.

In June, 2,844 containers of general cargo and 307 containers of fabrics were transported while in July, August and September 3,122 containers of general cargo and 351 containers of fabrics; 3,839 containers of general cargo and 679 containers of fabrics and 3,940 containers of general cargo and 592 containers of fabrics were transported to land-locked Afghanistan from the Karachi ports.

Asked about the separation of commercial import cargoes to Afghanistan into two distinct group of ‘general cargo” and ‘fabrics,” the sources told Customs Today that this has been done because FBR, Islamabad wants it in this way because of rampant mal-practice of getting the fabrics consignments got cleared.

due to the current political impasse in the country. They said the fresh row between the Pakistan People’s Party and Muttahida Qaumi Movement could further add to their woes.

They demanded that the FBR Nix the software and also extend the Ninal date to submit tax returns.

NAB authorizes inquiry against Customs director LAHORE

CuSTOMS TOdAY RePORT www.customstoday.com

he National Accountability Bureau (NAB) authorized an inquiry against Akhlaq Ahmed Khattak, Director Customs Department, Peshawar in an Executive Board Meeting (EBM) held at its Headquarters, Islamabad.

Sources said Chairman NAB Qamar Zaman Chaudhry presided over the meeting. The accused Customs director is alleged for accumulating assets beyond known sources of income.

The Executive Board Meeting also decided to file corruption references and authorised inquiries in many other cases, the sources said.

The NAB chairman directed the Divisions/Wings of NAB that all the inquiries and investigations should be conducted in accordance with law without any pressure.

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NATIONAL 03

OCTOBER 28 - NOVEMBER 03, 2014

faulty scanning machines delay clearance

KARACHI: Customs agents, importers and company owners are facing difficulties due to various reasons at Customs House. Importers said that they face difficulties in Model Customs Collectorate (East) and (West) since scanner machines are not working properly there which causes delay in clearance of consignments. The importers appealed to Customs high ups to solve their problems.

Collectorates fail to recover Rs500 million in FTA/PTA cases KARACHI

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fBR Member Revenue vows to resolve income tax return issues MULTAN

IMRAN ALI KHAN

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he Federal Board of Revenue (FBR) will resolve the ‘persistent’ issues in the income tax returns soon, said FBR Member Revenue Raana Ahmad.

She was addressing the tax bar association after listening to their problems in Niling tax returns. She assured them that the FBR would resolve issues in the online tax return system.

She said, “Complications arise in every new system but with the passage of time they are improved. We will resolve the issues.”

She said that the government would consider the suggestion from the tax bar association to extend dates to Nile tax returns to facilitate taxpayers.

Meanwhile, FBR has issued directions to Multan Regional Tax OfNice to take strict actions against the cotton factories and oil mills on non-payment of taxes.

The owners of cotton factories and oil mills were not ready to pay their payable taxes due to 5 percent newly imposed tax on cottonseed cake as the government has refused to withdraw taxes after a comprehensive dialogue between government and mills associations.

The FBR has initiated disciplinary actions against ofNicers who were not taking any action against the mill owners. It was revealed in the audit that some ofNicers were involved in not applying SRO-602 of FBR for not collecting taxes from cotton factories and oil mills. The audit ofNicer Asif Nadeem was as-

— Exclusive Customs Today photo

he Model Customs Collectorate Appraisement-West, Appraisement-East and Port Muhammad Bin Qasim have failed to recover the amount pointed out by the Directorate of Internal Audit Customs in connection with the anomalies reported in the issuance of FTA/PTA certificates, it is learnt here.

Sources informed Customs Today that the Directorate of Internal Audit Karachi Region has detected an amount of Rs500 million in share of recoverable amount in connection with the issuance of FTA/PTA certificates from the Collectorates of field formation during the year 201314.

The sources further informed this scribe that the revenue figure of Rs500million has been pointed out by the Directorate of Internal Audit Karachi and details of the leaked revenue in issuance of FTA/PTA have been sent to the audit department of the relevant Collectorates in January 2014. However, no recovery has been witnessed from the Collectorates despite passing of 10months from Jan to Oct during the current year.

They further disclosed that all three Collectorates have agreed upon recovering half of the total detected amount Rs 500 million, but they have failed to do the same.

“The non-serious attitude and incompetency of the audit staff at Collectorate level hampers the recovery process in this regard which causes the colossal loss to the revenue,” they added.

fBR Member Revenue Raana Ahmad signed the task to collect cottonseed cake tax from the oil mills and cotton factories. Due to negligence of regional tax ofNicers, the Multan Regional Tax ofNice has been facing tax deNicit. The regional tax ofNicer has raided different oil mills and cotton factories, seized records of crushing and production and collected more than Rs 3 million in the Nirst day of collection.

Due to strict instructions from FBR, regional tax ofNicers have speeded up recovery from the oil mills and cotton factory owners.

FBR orders action against 14 officials BR has initiated a disciplinary action against 14 regional tax officers and employees for not taxing oil manufacturers on cottonseed cake.

The FBR has issued directions to higher authorities in this regard. The officials include regional tax officers and deputy commissioner from the regional tax office Multan. The officials did not apply taxes implied by the Federal Board of Revenue which is likely to

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affect the tax collection target of the fiscal year 2014-15. During the audit, it was revealed that the officials did not apply S.R.O 602 of the FBR and ignored the instructions issued by the Federal Board of Revenue. The charge sheeted officials are Regional Tax Officer Saleem Akhtar, Inland Revenue Officers Malik Abdul Hameed, Rana Anwar Sajid, Khalid Aziz, Javed Iqbal, Mukhtar Hussain, Auditor Rana Muhammad Anjum and Siddique Bhutta. —CT Report

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NATIONAL

OCTOBER 28 - NOVEMBER 03, 2014

Reshuffle of 275 Lahore RTO-I officials on cards

LAHORE: Waqar Ahmad, the Federal Board of Revenue (FBR) Regional Tax Office-I chief commissioner, has decided to reshuffle 275 officials from BPS-1 to BPS 19, sources told Customs Today. They said that the chief commissioner has taken the decision to improve the efficiency of the RTO officials. The sources said that the order is likely to be issued in a few days in this regard. On the other hand, the RTO-I employees said that the decision may affect the revenue collection.

Lahore Customs seizes illegal items worth Rs180m

he Federal Board of Revenue (FBR) has asked the authorities concerned of the Collectorates of Customs Adjudication-I and II to submit the entire data of the cases during the current fiscal year 2014-15 before the competent authorities by the end of November, 2014, Customs Today learnt.

The sources informed Customs that the FBR through a letter asked the competent authorities of Customs Collectorates of Adjudication-I & II to submit the entire data of the pending, decided cases, duty/taxes involved in the cases and recovery made against the ONOs during the fiscal year 2014-15. —CT Report

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LAHORE

M HAYAT

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FBR gets uplift projects worth Rs1b passed by CDWP BR has successfully got development projects worth one billion rupees approved by the Central DevelopmentWorking Party (CDWP).

“The logical arguments presented by the FBR team in the meeting of the CDWP brought about due results and ultimately CDWP had to approve almost all the of the development projects forward by the FBR,” a well-placed source at FBR told this scribe here onTuesday.

The source said that CDWP met a few days back where FBR team presented board’s stance in such a forceful manner that CDWP approved the projects.

“The approved development projects include construction ofTax Development Centres at almost 15 major and crucial stations across the country,” the source added, saying that with the establishment of these centres, efficiency and performance of FBR staff along with volume of revenue would increase by several times.

Currently,Tax Development Centres are functioning at rental buildings at numerous important stations which is not only wastage of national money but also affect the performance of the staff,” the source observed pinpointing Gujrat, Sheikhupura, Sargodha and several other major stations where presentlyTax Development Centres were functioning in rental buildings.The source further said that by spending Rs 1 billion on the establishment of these centres, volume of revenue would increase by many times as such a centre was constructed at Ghotki at the cost of Rs 4 million and it enhanced the revenue collection from same area up to Rs 300 million.

“With centres based at rental buildings, tax collecting officers and staff often come under pressure of the landlord or owner while pursuing tax, income or sales tax cases at domestic and local level,” the source further observed, adding that FBR staff also face numerous problems while safeguarding tax collectors as well as other data and record with offices at rental buildings.

The source suggested the government to approve such development projects of the FBR by giving top priority so that FBR would feel encouraged to meet tax revenue collection target. —CT Report

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— Exclusive Customs Today photo

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he Directorate of Customs Intelligence and Investigation Lahore impounded Rs 180 million goods in 24 cases which involved taxes and duty worth Rs 100 million during the Nirst quarter of Niscal year 2014-15. The ofNicials also arrested six accused in this regard.

According to details, the directorate registered nine cases of contraband and non-customs paid items worth Rs 13.77 million, involving taxes worth Rs 14.77 million in September FY 2014-15.

The seized goods included engines, a mini truck, a jeep, eight cartons of cigarettes, 400 litres of motor oil, ball bearings, 250 KVA used generator, polyethylene, medicine, cloth and a Honda City car.

The directorate seized smuggled goods and vehicles worth Rs 93.28 million in six cases which involved duty and taxes worth Rs 41.17 million and arrested Nive accused in August. The directorate seized 26 generators of 2,762 KVA and 7976 KVA and 15,140 yards of imported cloth in major conNiscations. The seized goods also included Iranian tiles, computer scrap, Mazda truck and spare parts.

Meanwhile, the Regional Directorate of Intelligence and Investigation registered nine cases of smuggled goods worth Rs 85.91 million which involved Rs 51.37 million taxes. The ofNicials also, arrested one

FBR asks for submission of data from Collectorates of Adjudication-I&II

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H directorate seized smuggled goods and vehicles worth Rs 93.28 million in six cases accused in July FY 2014-15.

The major conNiscation included 831 Q-mobiles worth Rs 1.6 million which involved Rs 415,500 duty and taxes, zafrani patti, Samsung appliances, including 711 LEDs, 1,412 AC splits, 2 refrigerators and vacuum cleaners.

The directorate also impounded a huge quantity of cloth, Iranian tiles, auto spare parts, tyres, a truck (TKK316), chewing tobacco and gutka.

A source said that the directorate has seized 5 percent more in the Q1 of FY 2014-15 as compared to the same period of the FY 2013-14.

Officer sent to bring USD200 billion back from Swiss banks stun Finance Ministry, FBR ISLAMABAD

MuHAMMAd ARSHAd www.customstoday.com

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he Finance Ministry and Federal Board of Revenue (FBR) are stunned over the outcome of mission sent to Switzerland to negotiate on the issue of bringing $ 200 billion from Swiss banks.

Federal Minister for Finance Ishaq Dar had announced that talks would be held with Swiss authorities in August to bring back US$200 billion to Pakistan from banks in Switzerland on July 31. He said talks would be held in several phases and it could take three to four years to bring back the said money to the country.

A well placed source at Finance Ministry disclosed to this scribe that a two-member delegation

comprising Ex-Chief International Taxes Ashfaq Ahmad, grade 20 ofNicer, and Secretary International Taxes Sajida Kausar, grade-18 ofNicer visited Switzerland in August to hold talks with Swiss ofNicials regarding bringing $ 200 billion back to Pakistan from Swiss banks.

“Instead of convincing the Swiss authorities on the issue, a twomember negotiating team of Federal Board of Revenue (FBR) transgressed from their authority and approved amendments in the existing dual taxation with Switzerland which had cast damaging impacts on revenue from dual taxation. Pakistan has dual taxation treaties with almost 54 countries,” the source added. “Such an action has stunned the FBR and Finance Ministry to the extent that not a single word or statement has been issued by both the organizations

on the issue of bringing $ 200 billion back to Pakistan since then,” the source said, adding that the Finance Ministry was also contemplating on the possible means to counter damaging impacts of the said amend in dual taxation treaty with Switzerland on revenue from international taxation.

“Both the ofNicials were not authorized to make any commitment on the existing dual taxation treaty with Switzerland and they committed transgression from their authority,” the source added. The source further said that amendment agreed by both the ofNicials related to import and export tariffs and lowered rates would cause loss of billions of dollars to the national exchequer. On the other side, the source said that both of the ofNicials should have been charged sheet and an inquiry into the said

matte should have been carried out, but FBR administration transferred Ashfaq Ahmad immediately whereas Sajida Kausar was given reward by declaring her appointment as Secretary International Taxes on permanent basis.

It is pertinent to mention here that former President Asif Ali Zardari and ex premier Benazir Bhutto had been accused of keeping billions of dollars in Swiss banks and Switzerland enacted a new law in 2011 to make it easier for countries to recover assets stolen by politicians and hidden in its banks. In early 2012, Switzerland said it had returned $1.83 billion in illicitly-placed assets to countries involved in the Arab Spring regime changes, but Pakistan's current tax agreement does not allow it to take advantage of the law.

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SPECIALREPORT

OCTOBER 28 - NOVEMBER 03, 2014

MULTAN

IMRAN ALI KHAN

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ultan Customs Collectorate (MCC) Collector Sarfaraz Ahmad Warraich said that the Anti-Smuggling Organisation (ASO) needed further cooperation of the Customs Intelligence and Investigation to curb smuggling in the region.

He believed that the performance of Customs Department would be improved if both the departments cooperated and coordinated in anti-smuggling operations.

The collector said the department’s performance would boost as a result of the cooperation between the agencies. He also said the ASO got tremendous success in breaking the smuggling network last year as both the departments jointly operated.

Warraich said both the departments coordinated with each other in tackling smuggling and seized plastic granules, cigarettes, electric welding rods, ball bearings, Indian-made silk cloth, tryes and Chinese-made viscose rayon blended fabric during the last few months.

He said the ASO car cell has impounded 596 non-customs paid imported vehicles

— Exclusive Customs Today photo

worth Rs years. The has also im 12.7 millio year 2014 Warraic role in coll of which t also impro He said jor chunk as public the region the Irania diesel whi He said had becom Departme sation. He were colle of which R during op miscellane that this y lected thro of miscella tan Custom million fro “Uneart in the hist torate in 2 Anti-Smug Collecto Customs C

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SPECIALREPORT 07

OCTOBER 28 - NOVEMBER 03, 2014

527.37 million in the last four e Anti-Smuggling Organisation mpounded 16 vehicles worth Rs on in the first quarter of fiscal 4-15, the collector added. ch said that the ASO played a key lection of revenue and as a result the collectorate’s performance oved. , “The collectorate gathers a maof its revenue from oil industry crude oil refinery is present in n. Our ASO is also dealing with an-origin smuggled high speed ch affects our local oil industry.” d that oil smuggling from Iran me a challenge for the Customs nt and Anti-Smuggling Organie said that almost Rs 36 billion ected in fiscal year 2013-14 out Rs 262.6 million were collected perations against smuggling of eous goods. The collector said year Rs 14.93 billion were colough anti-smuggling operations aneous goods in which the Mulms Collectorate collected Rs 770 om Q-Mobile cell phones. thing of the biggest tax evasion tory of Multan Customs Collec2014 is a big achievement of the ggling Organisation,” he added. or Warraich said, “The Multan Collectorate’s performance im-

proved in the recent years due to en- ules. dorsement of professional workers and “Cooperation of Customs Department execution of ambition during their work with law-enforcement agencies will give plan to achieve their targets.” us fruitful results in the future. It is need of The ASO seized 122 vehicles in fiscal the hour to form combined units for muyear 2012-13 and 151 in fiscal year 2013- tual coordination during any operation, if 14. He said that due to prevailing situation required.” on Pak-Iran Border it has become difficult Warraich was of the view that they to cease smuggling, but they were making needed to induct fresh blood in the deserious efforts in this regard. partment to achieve better results.

He believed that his department The MCC Multan Collectorate collector worked for the betterment of local manviewed that bonded-carrier train would ufacturing products by controlling bring economic revolution in the region smuggling, adding that the busiand the business community would prosness community always per and trade activities would boost. “The showed concerns over Customs Collectorate Multan is the the smuggling of difthird largest customs revferent goods as it afenue collector after fected their busiKarachi and Laness. hore. The collecHe praised torate is strivthe joint pering for s a formance of collection h l l the Antiof more a r ce Smuggling revenue ASO c nded 596 u Organisaas the d o i p a im ms p tion and region o t s u s e l c Customs has a i on - c h n d ve e Intelligence large t r 7 3 o .

27 im p 5 in which potens R they seized tial for orth in the w n 36 metric trade,” m i l l i o r y e ar s tonnes of h e u o f plastic granadded. t s a

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08 EDITORIAL

OCTOBER 28 - NOVEMBER 03, 2014

Founder & Chairman zulfiqar Ali Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-300-4009261 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

edITORIAL

viability of textile industry ccording to newspaper reports, the Ministry of Textile has warned that the textile industry is heading toward bankruptcyas export of textile products have decreased by five percent during the first two months of the current fiscal year.

The ministry blames the Ministry of Finance for refusing to provide Rs 188 billionfunds which the government had promised under Textile Policy of 2009-14. Instead, only Rs 28 billion have been issued so far. On another note, the textile ministry also holds the Ministry of Petroleum and Natural Resources responsible for inadequate gas supply to this vital sector of the economyasthe industry is facing a gas shortfall of 33 percent against demand of up to 450 mmscfd.

The current state of affairs indicates that the government agencies are not on the samepage even on vital issues. Earlier, the prime minister had constituted a committee under Finance Minister Ishaq Dar to resolve the issue of the release of funds and gas supply to the textile sector but not a single meeting of the committee has been convened for the last six months.

The delay in the resolution of the issues could cause $2 billion loss to the national exchequer in the current fiscal year and this amount is twice the fifth and sixth loan tranches extended by the International Monetary Fund (IMF) to Pakistan.

The share of textile exports stood at $13.8 billion against total exports of $25 billion in 2014, which is about 55 percent of the total exports earnings of the country during the year. The country’s total exports to the European Unionstood at $5.1 billion against $4.2 billion during 2012-13, showing an overall textile exports growth of 3.8 percent in two years.

The finance minister has yet to sign a draft of the new Textile Policy for 201519.The draft was sent to him for approval after the previous policy had expired in June this year. However, the point of concern is that the total exports of the country have decreased by 10 percent during the first quarter of the current fiscal year despite having duty-free access to the European markets.

The lack of coordination between the ministries is costing the nation billions of dollars while it also points finger at the performance of the government which claims that it has adopted export-oriented policy while in practical it is heavily relying on foreign aid.

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Syndrome of corruption in Pakistan LAHORE

dR AfTAB AfzAL

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n its annual assessment report, the Federal Board of Revenue (FBR) has revealed that corruption has reached a pathetic stage in Pakistan and even the policy makers and international institutions have now admitted that corruption is the biggest issue all over the world.

The governments in various countries are trying their best to overcome this menace and many have controlled it to some extent. The international donor agencies have also started taking stern measures to stop corruption in the usage of development funds and have introduced anti-corruption measures as the basic component in their programs. Regarding Pakistan, the World Bank and British Depart-

ment for International Development have committed $1 million grant to the FBR to set up an anti-corruption cell in the board.The voices of concern about rampant corruption in every institution of the country have been raised by various quarters for years.

Some political parties even contested general elections on the basis of the anti-corruption slogansbut no government dared even touch this monster. It is not denying the fact that corruption has been institutionalised and the institutions, which were set up to take anti-corruption measures, themselves have now drenched in corrupt practices.

Every government department has been ruled by maNias and the honest ofNicers are left with no option, but to Nind corners throughout their service periodto save their skin.

Now the FBR itself has acknowl-

The only way to discourage corrupt practices is the introduction of tough laws as are enforced in various countries

edged the prevalence of corruption in the country.Some parliamentarians had earlier pointed out Rs500-600 billion worth of annual corruption allegedly prevailing under the nose of the board.

The only way to discourage corrupt practices is the introduction of tough laws as are enforced in various countries. A senior government officer has been sentenced to death for minting billions of dollars through corruptionin China. Unless the Pakistani government comes clean in the national matters, all the anti-corruption measures will stoke the situation rather than bringing any betterment in the system. According to media reports, some of the FBR officers had not even filed their income tax returns this year and it is yet to be seen the utility of the proposedanti-corruption cell in the board.

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NATIONAL 09

OCTOBER 28 - NOVEMBER 03, 2014

faisalabad anti-smuggling dept seizes two vehicles

FAISALABAD: The Anti-Smuggling department of Model Custom Collector (MCC), Faisalabad has seized two non-customs paid vehicles worth Rs 3 million from Sargodha division.According to an official source, both vehicles were non-custom paid; one is Toyota Surf value Rs 1.7 million and the other is Toyota Corolla X value Rs 1.3 million.

IOCO staff of Customs irked by long promotion process KARACHI

wAQAR AHMed ANSARI

Appraisement-east takes steps to provide fast and efficient service

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Appraisement-East collects Rs 10.5 billion revenue in 20 days of October

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wRITe TO uS YOuR gRIevANCeS: Through CuSTOMS TOdAY platform HeLP deSK, now you have chance to dIReCTLY write your problems to top govt. functionaries.

If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. wHO can write in this section?

Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers TO wHOM you can write?

Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue.

Send your letters at: newsdesk@customstoday.com.pk

KARACHI

SYed MuHAMMAd ASLAM www.customstoday.com

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he Model Customs Collectorate of Appraisement-East has taken measures to provide efNicient, courteous and timely service to importers and customs agents.

A surveillance system has been installed which allows Collector Najeeb ur Rehman Abbasi to monitor the entire collectorate through 16 CCTV cameras. Collector Najeeb can even zoom the cameras to watch a full screen view of a particular spot. Tenders have also been Nloated in the newspapers for the procurement of computers, accessories, printers and scanners in addition to ofNice furniture, work stations, tables and sofas.

Sources told Customs Today that another Nive work stations would be installed in the collectorate to help provide better service to the importers and customs agents. A total of 12 queue management systems would also be installed to serve the people. These systems would be installed outside the ofNices of the review ofNicers. Twenty steel chairs would also be procured and a telephone exchange would also be installed.

Meanwhile, Model Customs Collectorate of Appraisement-East collected Rs 10,599.66 million revenue during the Nirst 20 days of October.

MCC Appraisement-E collected Rs 2,893.75 million under the head of customs duty; Rs 5,754.41 million under the

— Exclusive Customs Today photo

here exists great anger among employees of Input/ Output Co-Efficient Organization (IOCO) of Customs Department due to stoppage of promotion process, sources informed Customs Today.

The sources said that this department has been neglected like before despite the fact that competent staff works here. They said that Inland Revenue employees are always promoted but IOCO workers are neglected.

On the other hand, sources in the IOCO said that importers and exporters are ignoring element of value addition element. A customs source said that higher authorities should monitor value addition so that the government earns foreign exchange. At this time, only importers and exporters are taking advantage of the situation, the source said.

Meanwhile, a shortage of officials seems to have become a favourite excuse for inefficiency in any department and section of the Pakistan Customs. The case is no different for the Directorate General of Post Clearance Audit, better known as PCA. Established in October 2008 with the aim to develop a comprehensive monitoring mechanism to verify the correctness of trade-related declarations; detect and investigate commercial and trade-related frauds and propose measures to prevent its occurrence; assist the Federal Board of Revenue to evolve, develop and update systems, procedures and organizational structure meant to scrutinize, and ensure compliance of the trade with the national trade laws, procedures and controls; and to recover the escaped revenues, the PCA seems not delivering the promises it made.

Collector Najeebur Rehman Abbasi head of sales tax; Rs 1,847.544 million in withholding tax and Rs 33.96 million under the head of federal excise duty. The Collectorate achieved 60.26 percent of the customs duty target; 55 percent of the Sales Tax target and 56 percent of the Withholding Tax target.

The total revenue collected by the Collectorate from July 1 to September 20 this year adds up to Rs 63,683 million: Rs 13,465 million in July; Rs 19,245 million in August; Rs 20,444 million in September and Rs 10,529.66 million during the Nirst 20 days of October.

It may be mentioned here that the overall revenue target for the Collectorate

A total of 12 queue management systems would also be installed to serve the people

has been set at Rs 18,873.41 million for October while Rs 10,529.66 million is collected showing that just over 56 percent of the target has been met during these 20 days.

This also means that 45 percent of the target has to be met during the 10 remaining days of the month. Talking to Customs Today, highly- placed sources within the Collectorate attributed the comparatively slower revenue recovery on three ofNicial Eid-ul-Azha holidays that extended for almost a whole week. The sources, however, were optimist that the overall revenue collection target for this month would be met at month’s end.

Sale monitoring devices irk businessmen To,

Ishaq Dar, Federal Finance Minister, Govt of Pakistan, Islamabad

Dear Sir, FBR has installed computer chips at the sale counters, especially of restaurants and bakers to monitor their sales. The Islamabad business community has strongly protested against the FBR step calling it anti-business activities.

The businessmen of the federal capital wanted to increase tax net but this step would create more distrust between the taxpayers and the tax authority. ICCI has always been calling for conNidence building measures on the part of government to remove trust deNicit between taxpayers and tax collectors. However, instead of taking positive initiatives, FBR was resorting to measures that would increase trust deNicit between businessmen and the government. ICCI also condemns SRO-608 which was issued without taking the business com-

munity into conNidence and unrealistic sales tax notices had further increased their problems. This SRO should also be revoked as soon as possible.

We also urge Federal Finance Minister Ishaq Dar to take immediate action against the installation of devices at business premises to monitor

sales in the federal capital.

With profound regards, Muzzamil Hussain Sabri, ICCI President, Islamabad

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10 NATIONAL

OCTOBER 28 - NOVEMBER 03, 2014

Traders form committee on SRO-608

ISLAMABAD: Owners of hotels, restaurants, departmental stores and retail businesses have formed a committee regarding SRO 608. The committee will meet Finance Minister Ishaq Dar and discuss their reservations with him on Friday. A meeting was held in this regard in the Islamabad Chamber of Commerce and Industry, but no office-bearer of the chamber showed up. Only those traders who have been issued notices under SRO-608 for tax payment took part in the meeting.

dg Customs I&I virk stresses collective efforts to curb smuggling

FBR decides to recruit 600 Grade 1-16 officials ISLAMABAD

CuSTOMS TOdAY RePORT www.customstoday.com

KARACHI

SOHAIL RAB KHAN

— Exclusive Customs Today photo

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he Director General of the Directorate General of Customs Intelligence and Investigation-FBR Luftullah Virk on Thursday visited Custom House and regional ofNice of the Directorate General of Customs Intelligence and Investigation.

During his visit, Mr Virk held a meeting with the senior Customs ofNicers Chief Collector-Enforcement (South) Muhammad Nazim Saleem, Chief Collector-Appraisement (South) Nasir Masroor Ahmed, Director of the Directorate General of Customs I&I-Regional OfNice Asif Marghoob Siddiqui, Collector MCC-Preventive Syed Muhammad Tariq Huda and others attended the meeting.

In the meeting, Luftullah Virk stressed upon to take effective measures in order to curb smuggling activities and to formulate a strategy for increasing the revenue. The Director General further asked the Collector MCCPreventive S M Tariq Huda to pay special heed towards the antismuggling activities and utilise all available resources in this regard. He also emphasized on collective efforts from Customs Collectorates and Director General of Customs Intelligence and Investigation in order to curb the nuisance of smuggling of contra-

he Federal Board of Revenue (FBR) has decided to recruit as many as 600 Grade-1 to 16 officials to overcome a shortage of manpower.

The recruitment aims at improving enforcement system. Ads will be published in the newspapers in this regard. The FBR is facing a shortage of manpower which is affecting its enforcement system. The former government had also decided to employ officials in the FBR, but the move could not be materialised due to a rift between the then prime minister and president.

Both the PM and president violated the merit and put a "jobs for sale'' tag. Millions of rupees were received from applicants for these recruitments. Both the PM and president had sent two different lists to the FBR chairman in this regard.

Due to this rift the recruitments could not be made.

A large number of FBR officials have retired and most of the officials currently serving in the enforcement departments were between 50 and 55 years old.

The department needs induction of fresh blood, because a shortage of manpower is a big hurdle in action against tax evaders.

Customs and Land Revenue officials said there is a dire need of more appointments. The move will help the FBR improve its efficiency and achieving tax targets.

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band items.

Later on, he held a press briefing at the regional ofNice. Speaking on the occasion, Virk said that the Directorate General of Customs Intelligence and Investigation with the complete support of the federation is determined to uproot the nuisance of smuggling from the country. He said that the Directorate General and its ofNicials/ofNicers were working efNiciently in order to increase

the revenue and curbing the smuggling activities.

On the occasion, Virk apprised the media that the Directorate General of Customs Intelligence and Investigation has detected millions of worth smuggling cases, including smuggling of contraband items like diesel/petrol, gutka, black tea, fabric and others during last six month and also identiNied the cases of misusing the SRO1125/2011 in the im-

ported consignments of the fabric by some unscrupulous elements.

Virk lauded the performance of entire team of the regional directorate for taking initiative against the smugglers and help in recovering the legitimate revenue. Director Asif Marghoob Siddiqui, Additional directors, Incharge Anti-Smuggling Organization (ASO) and others officials were also present on the occasion.

FBR refuses to provide sales, income tax refunds’ record to FIA ISLAMABAD

CuSTOMS TOdAY RePORT www.customstoday.com

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he Federal Board of Revenue (FBR) has refused to provide general record of sales tax and income tax refunds paid of taxpayers to Federal Investigation Agency (FIA).

The FIA has asked FBR for provision of entire record of sales tax and income tax refunds paid in Karachi and Quetta, especially in which heavy amounts are involved. A well-placed source told this scribe here on Thursday that the FBR had rejected plea of FIA, saying that section 216 of the Income Tax Ordinance 2001 barred FBR from making taxpayers record public. The said section says that the FBR is bound to keep general record of the taxpayers

as conNidential and secret.

“Therefore FBR has refused to share the required record with FIA,” the source added, saying that FBR had expressed inclination to share record of any speciNic person against whom FIA might have received any compliant regarding Niscal embezzlement or forgery or fudging the Nigures in sales or income tax refunds.

“FBR categorically told the FIA that even then only required information will be provided and taxpayers record will not be shared anyhow,” the source said Moreover, the source further said that FBR had also expressed willingness to extend full cooperation with FIA in case of any complaint against tax collectors or employees regarding their any involvement in irregularity. The source further said that FBR on

the interpretation of the said section of the Income Tax Ordinance 2001 enjoyed full support from both the government as well as the apex courts.

It is pertinent to mention here that National Accountability Bureau (NAB) also sought information about the members of the parliament hailing from Punjab during previous government and the FBR had taken refuge behind the same section of the Income Tax Ordinance 2001, refused to meet the said demand.

Former FBR chairman Sohail Ahmad also refused to present statement of income tax returns of the former President Pervez Musharraf in the meeting of the National Assembly Public Accounts Committee (PAC) during the last government and he was of the viewpoint that the FBR could

present the said statement before the Auditor General of Pakistan on demand.

Meanwhile, FIA Sindh has once again broaden its investigation ambit around customs ofNicials in export of approximately Rs 500 million worth of gold, gems and jewelry on fake E-form in 20122014, it is learnt.

Sources informed Customs Today that the FIA’s Corporate Crime Cell (CCC) has written a letter to the FBR authorities, seeking a list of the ofNicials who were deputed in the Model Customs Collectorate of Export from 2012 to 2014.

It may be mentioned here that the CCC has already arrested four suspects, including two clearing agents Wajahat Minhas and Zubair Ali of Kashan Enterprises, TDAP ex-director Shakeel Ahmed

and an ofNicer of a private bank, who were allegedly involved in the illegal export of gold on fake Eform while further arrests are expected in the next few days.

Sources further disclosed that the FIA authorities wanted to include ofNicials of the MCC Export into the investigation for reaching a conclusion in the said case.

The FBR sources revealed this scribe that the FBR authorities have asked MCC Export Collector Manzoor Memon to prepare a list of the ofNicials who were deputed during 2012-2014 at the Collectorate.

It is important to mention here that the newly appointed FIA Sindh Director Shahid Hayat has issued clear directives to the authorities to left no stone unturned during the investigation of the said sensitive case.

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CARTOONS SPECIAL 11

OCTOBER 28 - NOVEMBER 03, 2014

Recruitments at vacant posts of Customs House from next month

KARACHI: Recruitment process at vacant posts of Customs House is likely to get started from next month, the Customs Today learnt on Monday. The sources said that vacant posts have not been filled at Customs House since long which had affected its performance. The sources said the recruitment process would start next month on posts starting from grade 1 to 16. The posts will be advertised and details of appointment will be available on internet and Collectorate is likely to get a letter in this regard from Islamabad Head office next month.

Appraisement-east installs CCTvs to monitor activities at collectorate KARACHI

CuSTOMS TOdAY RePORT www.customstoday.com

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he Model Customs Collectorate (MCC) of Appraisement-East has installed a new vigilance system to monitor the activities at collectorate.

The new system will allow Collector Najeeb to monitor the workings at his collectorate on the wide screens installed at his office. The vigilance system was installed last week, comprising a total of 16 Close Circuit TV (CCTV) cameras which will not only cover entry and exit points but also offices of the principal appraiser, appraisement halls, assessment halls, waiting areas and mezzanine floors of the premises. It will also cover the view of the premises outside the Custom House Branch of the National Bank of Pakistan.

Sources disclosed that the vigilance system will allow Collector Najeeb to keep an eye on the workings of his officials not only from his office but also

from outside Sources also told Customs Today that a Queue Manage-

ment System is also in process for collectorate to serve the tax payers.

Sources also said that the collectorate installed CCTV cameras at Karachi Port Trust,

TCS-Smart zone case: fake it until you make it ISLAMABAD

CuSTOMS TOdAY RePORT www.customstoday.com

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he Smart Zone on Wednesday presented fake goods declarations (GDs) of the smuggled items in the special court and tried to get its arrested men released.

The Smart Zone also tried to malign the Customs Intelligence and Investigation officials and get the smuggling case disposed of. However, the customs officials foiled the attempt.

The customs officials are pondering to file a fraud case against the company.

According to details, Smart Zone presented the GD in the court and tried to show that customs duty of the goods seized from a Rawalpindi warehouse was paid. The company also told the court that the customs officials had fastened the Afghan Transit stickers on the cartons.

Intelligence and Investigation Deputy Director Shahid Jaan acquired the GD from the court and forwarded

it to Lahore office. After sometime the Lahore officials sent a report which said that the items mentioned in the GDs have already been released.

Sources said the Smart Zone represented the list in the court to show that the customs duty of goods seized

FBR's Sialkot, Gujranwala directorates unable to remove faults in return form by customs officials had been paid.

Special Court Judge Muhammad Ahmed Farooq showed his anger against the company. On the other hand, the customs officials have started consultations with their lawyers to register a fraud case.

Special court to hear smuggling case against TCS, Smart Zone from Nov 3

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special court will hear a smuggling case against TCS and Smart Zone on a regular basis from November 3.

During the hearing, the companies will be given a charge sheet. According to customs’ sources, there is a minor chance that the companies would be absolved of the charges.

On the other hand, the Rawalpindi custom intelligence and investigation officials presented TCS regional logistics manager Ghazanfar Gul and Smart Zone chief

the examination areas, appraisement working areas and other vital points at the port.

executive Shakirullah in the special court of Judge Muhammad Ahmed Farooq Chaudhry. The judge sent both accused to Adiala jail on a judicial remand.

The counsel of the accused will submit applications for their bail in the customs court on Wednesday (today). The officials have decided to challenge the bail applications. Customs counsel Deputy Director Intelligence and Investigation Rawalpindi Shahid Jaan will give arguments in the court. —CT Report

SIALKOT

zAfAR MALIK

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espite their hectic efforts, the Information technology (IT) experts of Federal Board of Revenue (FBR) are still unable to locate and remove technical faults in the e-Niling tax return submission system at both of the Regional Tax Directorates in Sialkot and Gujranwala.

Thousands of the taxpayers are facing great difNiculties in ensuring the online submission of their tax returns before the Ninal deadline of October 31, 2014.

Only a week is left behind, but the technical faults are not being located and removed by the IT ofNicials concerned of FBR here.

Expressing grave concern over this critical situation, Sialkot Tax Bar Association (STBA) President Shahid Mehmood and Gujranwala Tax Bar Association (GTBA) President Ehsan Ullah Shamim have urged the FBR to extend the Ninal deadline of online submission of the tax returns till December 31, 2014 for facilitating the thousands of the taxpayers and brining the maximum people under the tax net.

The FBR ofNicials said that RTO Gujranwala was given of target of ensuring 73,000 online tax returns from Gujranwala Region and 65,000 from Sialkot region.

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12

OCTOBER 28 - NOVEMBER 03, 2014

Rs 1.5 million non-customs paid shopping bags seized

LAHORE: Customs Anti-Smuggling Wing impounded Rs 1.5 million non-customs paid shopping bags at a warehouse on Sheikhupura Road. Source said that the anti-smuggling team, including Safdar Bajwa, Khalid Butt and others on a tip-off raided the warehouse and seized the goods. They said the team confiscated the illegal plastic bags after the owners failed to produce the relevant documents.

Proposed anti-corruption cell at FBR starts ‘war’ between honest and corrupt Corrupt officers with lifestyles other than their income and asset declarations would be traced out and action would be proposed against them

ISLAMABAD

MuHAMMAd ARSHAd www.customstoday.com

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cell to monitor life style of ofNicers of the Federal Board of Revenue (FBR) and compare with their asset declarations is likely to be formed with the Ninancial assistance of the World Bank (WB) and the British Department for International Development (DFID).

The objective of the cell is to trace out cor-

ruption by comparing life style of ofNicers with their income and asset declaration. A well placed source at the FBR conNided this scribe that presently the name of the proposed cells was under discussion; the ofNicials concerned were discussing on two proposed names; Asset Declaration Unit and Integrity Management Unit. The source said that the World Bank and DFID had committed an expenditure of $ 1 million on the said project. This project is being disused to be kept with the Human Resource Division. However, historically such units are kept under the Administration Department.

The source said that with the help of the proposed cell, corrupt ofNicers who have dif-

ferent life styles than their income as well as their asset declarations, would be traced out and disciplinary actions would be proposed against them.

However, although the formation of the said cell is under discussion, the source said that a severe tug of war between honest and corrupt officers on the preparation of nature of terms of reference of the cell had kicked off. “The officers with the least good repute and fame are struggling to get the TORs as mild which will affect the performance of the said cell, whereas, honest officers are pushing forward for having a strong and resultoriented unit with strict rules and regula-

tions,” the source further added.

The source said that honest ofNicers were desirous of having the unit operative and effective in real sense and ofNicers against whom the unit would prepare fact-Ninding report regarding their involvement in corrupt activities, would not be declared as ‘Honest and Above Board’ in their annual performance reports. The source further said that ofNicers who have good repute were of the viewpoint that the sitting FBR chairman Tariq Bajwa was also an ofNicer of integrity. Therefore, the proposed unit would deNinitely create desired impacts regarding rooting out corruption from FBR’s circles.

finance Ministry puts gradual monetary tightening on hold KARACHI

CuSTOMS TOdAY RePORT www.customstoday.com

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he Finance Ministry has put the gradual monetary tightening on hold in third quarter of the current Niscal year as the risks associated with the inNlationary pressures and external sector dissipated to some extent.

Although developments in the external and Niscal sectors signalled further improvement as the government successfully mobilised US$ 2.0 billion from Euro bonds and generated US$ 1.1billion from the long awaited auction of 3G/4G spectrum licenses, the comfort on inNlation slightly waned as year on

year (YoY) inNlation for April 2014 turned out to be higher (at 9.2 percent) than expected.

“More speciNically, the State Bank kept the policy rate unchanged at 10 percent in its monetary policy decisions of January and March 2014. Broadly speaking, following factors were key: (i) higherthan-anticipated Ninancial inNlows coupled with the appreciation of rupee; (ii) an encouraging trend towards Niscal consolidation; and (iii) a lower-thanexpected increase in inNlation,” a wellplaced source at Finance Ministry conNided this scribe here on Tuesday.

The source added that keeping in view the sustainability of external sector developments and stability in key macro

SBP expects average inflation for fY14 to fall in the range of 8.0 to 9.0 percent

variables, SBP adopted a cautious approach in its monetary policy decision on May 17, 2014 by maintaining its policy rate at 10 percent. “In fact, as shown in , the somewhat erratic pattern of YoY inNlation during Jul- Apr FY14, which was largely driven by excessive volatility in perishable food items and adjustments in administered prices, complicated the task of formulating the inNlation outlook for FY14 and the average inNlation for FY14 was initially projected at 11.0 to12.0 percent, which was considerably higher than the average inNlation of 7.4 percent for FY13,” the source observed.

The source said that State Bank of Pakistan now expected average inNlation for FY14 to fall in the range of 8.0 to

9.0 percent due to the appreciation of exchange rate, relative stability in oil prices in both international and domestic markets, government efforts to shift its borrowing away from SBP, deceleration in money growth; and the easing inNlationary expectations as indicated by SBP-IBA Consumer ConNidence Survey in May 2014. “Monetary expansion, which is often considered to be one of the leading indicators of inNlation, decelerated to 5.9 percent during Jul-Mar FY14, compared with 9.0 percent during the same period last year. This deceleration was expected due to the quantitative limits on SBP’s NDA, and limits on government borrowing from SBP,” the source further revealed

Published by M. F. Riaz, Off. 91, 3rd Flr, Gul Plaza, M.A. Rd., Karachi, for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi