Finance ministry, IPPs sign Rs450bn payment deal
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Finance ministry to pay IPPs 40% immediately, remaining 60% in the next financial year
Under the agreement, IPPs to be paid dividends in Pakistani rupees instead of US dollars
ISLAMABAD: The Ministry of Finance and Independent Power Producers (IPPs) have inked a deal for payment worth Rs450 billion to the latter,
According to the deal documents, two dozen IPPs, including the Hub Power Company Limited (HUBCO), had entered into a preliminary agreement with the government under which the finance ministry would pay the IPPs 40% of the Rs450-billion payment or Rs180 billion immediately, whereas the remaining 60% or Rs270 billion will be paid in the next financial year.
Pakistan, IMF inching towards stalled programme
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The logo of International Monetary Fund.
ISLAMABAD: Pakistan and the IMF are inching towards formal revival of the stalled Fund programme, as the government has decided to hike power tariff by 25-30 percent and to abolish up to Rs200 billion corporate sector income tax exemptions.
The top political leadership has given go-ahead to the economic team to fulfill all the required prerequisites for revival of the stalled programme under $6 billion Extended Fund Facility (EFF).
“The power tariff will be hiked in a gradual manner up to 25 to 30 percent in a bid to fulfill the IMF condition,” top official sources confided to this correspondent. The IMF program stalled in February 2020 after the COVID-19 outbreak. The second review is now under completion and it is yet to be seen whether the second and third reviews will complete simultaneously or these will be done separately. The IMF and FBR teams held a virtual crucial r
Top Story
December 23, 2020
ISLAMABAD: Pakistan and the IMF are inching towards formal revival of the stalled Fund programme, as the government has decided to hike power tariff by 25-30 percent and to abolish up to Rs200 billion corporate sector income tax exemptions.
The top political leadership has given go-ahead to the economic team to fulfill all the required prerequisites for revival of the stalled programme under $6 billion Extended Fund Facility (EFF).
“The power tariff will be hiked in a gradual manner up to 25 to 30 percent in a bid to fulfill the IMF condition,” top official sources confided to this correspondent. The IMF program stalled in February 2020 after the COVID-19 outbreak. The second review is now under completion and it is yet to be seen whether the second and third reviews will complete simultaneously or these will be done separately.
FBR Planning to Remove These Corporate Income Tax Exemptions
The Federal Board of Revenue (FBR) is presently reviewing the following list of corporate income tax exemptions with revenue impact for possible withdrawal before the next fiscal year:
Tax credit for investment in balancing, modernization, and replacement of plant and machinery (corporate manufacturing sector), Rs. 65.168 billion.
Tax credit for enlistment in Stock Exchange (Companies opting for enlistment in a registered stock exchange), Rs. 357 million.
Tax credit for newly established industrial undertakings corporate industrial units (including corporate dairy farming), Rs. 5.573 billion.
Tax credit for industrial undertakings established before the first day of July 2011 (corporate industrial units including corporate dairy farming), Rs. 6.486 billion.