ISLAMABAD: The Economic Coordination Committee of the Cabinet extended the date for reduced withholding tax rate of 0.4 percent on banking transactions of non-filers up to March 15.
The committee approved the extension under section 236P of Income Tax Ordinance 2001. The meeting was chaired by Finance Minister, Senator Mohammad Ishaq Dar where ministers for Commerce, Water and Power, Minister of State for Information Technology, Chairman Privatization Commission, concerned secretaries of ministries were also present.
The ECC directed that more consultations at inter-ministerial level on the Auto Policy be carried out and that the Policy should be brought for its (ECC) consideration in the next meeting.
The meeting thereafter received a comprehensive briefing from Secretary Finance, Dr Waqar Masood on the current economic condition.
He informed the meeting that almost all price indices pointed to lowest inflation in more than a decade and the average inflation during July-February was recorded at 2.48 percet, with year-on-year inflation at 4 percent.
The low inflation is likely to persist as Government has passed on lower prices for the month of March to consumers as well the production outlook of agriculture appears stable, he added.
The meeting was informed that the world commodity prices outlook also pointed in the direction of stable and low prices as prices of key commodities such as sugar, wheat, rice, tea, soybean, palm oil, crude oil, urea and DAP fertilizers had all registered significant reductions in the Jul-Feb period.
Likewise the Secretary said that the position of stocks of key commodities was satisfactory.
The current wheat stocks amounted to 5.1 million tons against 5.4 million tons last year while stocks of sugar were registered at 2.9 million tons against 2.5 million tons last year, the meeting was informed.
It was further informed in the meeting that Petroleum product stocks averaged 12 days compared to 11 days last year, with stocks of Hi Speed Diesel standing at 25 days against 23 days and stocks of petrol standing at 15 days against 9 days last year.
Large Scale Manufacturing (LSM) registered a growth of 3.9 percent during Jul-Dec 2015 as against 2.7 percent for same period last year.
Similarly, the Secretary said that the leading sectors were automobiles (32 percent), fertilizer (15 percent), chemicals (11.6 percent), rubber products (9.8 percent), pharmaceutical (6.8 percent), petroleum products (6.8 percent), non-metallic mineral products (6.7 percent), leather (1.2 percent) and textiles (1.0 percent).
The meeting was informed that the generation of electricity during January 2016 was 11 percent higher than last year for the same month.
Gas supply was higher by 1.5 percent during January 2016 compared to the same period last year.
Regarding tax revenues, the meeting was informed that the tax revenues had registered an outstanding performance as during Jul-Jan 2015-16 the FBR revenues were up by 18.4 percent.
Imports during Jul-Jan 2015-16 were down by 6.8 percent while exports were down by 11.4 percent, compared to the same period last year.
However, trade balance for the same period improved by 1 percent.
Similarly foreign exchange reserves stood at $20.52 billion, as on March 04, 2016.
The State Bank of Pakistan (SBP) reserves were $15.66 billion and commercial banks’ reserves were $4.86 billion.
The Secretary Finance further informed the meeting that the SBP reserves had fallen to $2.8 billion in February 2014 and since then they have continuously risen to $15.66 billion, indicating a net official reserves build-up of about $12.9.
Remittances, despite a high base of $18.7 billion during 2014-15, have risen by 6 percent during the period Jul-Jan 2015-16, which is well within the target set for the year.
The current account for the period Jul-Jan 2015-16 stood at $2.04 as against $2.64 billion during the same period last year, showing an improved external position of the country.
Foreign Direct Investment increased by 4.6 percent during the period Jul-Jan 2015-16 compared to the same period last year.
