ISLAMABAD: The Pakistan Telecommunication Authority (PTA) on Saturday showed reluctance to implement the instructions of the country’s tax collection body to block the SIMs of non-filers, while asking the authority to review its decision.
The development came after the Federal Board of Revenue (FBR) issued a list of over half a million people who did not file income tax returns for 2023, instructing the PTA to block their cellphone SIMs as a penalty.
However, media reports indicated that telecom companies were reluctant to carry out the directives affecting so many subscribers, prompting an official meeting on Friday in which the government decided to act against anyone opposing FBR’s orders.
Still, the PTA circulated a brief notification on Saturday, seeking a review of the FBR’s decision.
“On the issue of blocking of mobile phone SIMs under section 114-B of Income Tax Ordinance, 2001, Pakistan Telecommunication Authority (PTA) has communicated to FBR that the Income Tax General Order (ITGO) in the manner as referred to the Authority needs review before its execution by the concerned entity/entities,” the notification said.
“In the meanwhile, PTA has also initiated consultation with stakeholders on the subject issue,” it added.
Pakistan has traditionally faced the challenge of convincing people to file their tax returns.
However, the government has decided now to implement stringent measures to address the problem, particularly in the context of negotiations for a new International Monetary Fund (IMF) program.
The IMF has frequently urged Pakistan to enhance its revenue collection from non-filers as part of broader economic reforms to support social and development initiatives.
In response, the FBR is taking steps like blocking the SIM cards of non-filers and considering other punitive measures to enforce tax compliance and widen the tax net.
Pakistan telecom authority seeks review of tax agency directive to block SIMs of non-filers
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Pakistan telecom authority seeks review of tax agency directive to block SIMs of non-filers
- Federal Board of Revenue issued a list of over half a million people who did not file tax returns in 2023
- Reports indicate that telecom companies showed reluctance to block the SIMs of so many subscribers
Pakistan forecasts inflation to remain in moderate 5.5-6.5 percent range
- Finance Division report says robust remittance inflows, steady performance of IT, service sectors to cushion external pressures
- Consumer inflation in Pakistan has significantly reduced over the years when it surged to a record high of 38 percent in May 2023
ISLAMABAD: Inflation is expected to remain in the moderate range of 5.5 to 6.5 percent for December, the Finance Division said in its Monthly Economic Outlook report on Wednesday.
Pakistan reported inflation at 6.1 percent on a year-on-year basis in November as compared to 6.2 percent in October. Pakistan’s inflation rate rose to a record high of 38 percent in May 2023 on account of surging food and fuel costs as Islamabad scrapped subsidies as part of a financial deal agreed with the International Monetary Fund (IMF).
“Inflation is projected to remain moderate, in the range of 5.5-6.5 percent in December, primarily reflecting base effect,” the report said.
The Finance Division’s report said Pakistan’s economic outlook remains “positive,” driven by sustained growth in industrial activity due to continued momentum in textiles, automobiles, cement and food processing sectors.
“Robust remittance inflows and steady performance in IT and services exports are likely to cushion external pressures,” the report said.
The report said Pakistan’s current account recorded a surplus of $100 million while it posted a deficit of $812 million during the July-November period.
It said remittances increased by 9.3 percent to $16.1 billion in November, led by inflows from Saudi Arabia (24.2 percent) and the UAE (20.8 percent), while the net foreign direct investment inflows were recorded at $927.4 million during the same July to November period.
It said Pakistan’s fiscal consolidation is expected to continue supporting macroeconomic stability, with government efforts in expenditure management, enhanced tax collection and structural reforms contributing to sustainable growth.
“Overall, Pakistan’s economy is projected to maintain its positive momentum in the coming months, driven by industrial growth, improved governance, digitalization, and prudent macroeconomic management,” the report said.
