Pakistan Approves Binance to Explore Tokenisation of Up to $2 Billion in State Assets

 Pakistan Approves Binance to Explore Tokenisation of Up to $2 Billion in State Assets

Pakistan has taken a major step toward integrating blockchain technology into its financial system, signing an MoU with leading global crypto exchange Binance to explore the tokenisation of up to $2 billion worth of sovereign bonds, treasury bills, and commodity reserves.

Pakistan Approves Binance to Explore Tokenisation of Up to $2 Billion in State Assets

Pakistan Approves Binance to Explore Tokenisation of Up to $2 Billion in State Assets

The announcement, made by the Ministry of Finance, marks one of the country’s most ambitious digital-finance initiatives to date. Tokenisation — the process of converting real-world assets into digital tokens — is expected to improve liquidity, transparency, and global market access for Pakistan’s financial instruments.

🇵🇰 MoU Between Pakistan and Binance

According to the finance ministry, the agreement sets the stage for blockchain-based distribution of:

• Sovereign bonds

• Treasury bills

• Commodity reserves such as oil, gas, metals, and raw materials

Finance Minister Muhammad Aurangzeb called the MoU a signal of Pakistan’s reform trajectory and a major step toward long-term digital transformation.

Binance founder Changpeng Zhao (CZ) welcomed the move, describing it as “a great signal for the global blockchain industry and for Pakistan.”

🏦 Initial Clearances for Binance and HTX

In a parallel development, the Pakistan Virtual Assets Regulatory Authority (PVARA) granted initial clearance to both Binance and HTX to begin the process of registering local subsidiaries.

The approvals allow the exchanges to:

• Register under Pakistan’s Anti-Money Laundering (AML) regime

• Set up local operational units

• Begin preparations for full exchange licence applications

PVARA Chair Bilal bin Saqib emphasized that only platforms with strong governance and compliance will advance through Pakistan’s new phased licensing system.

🚀 Part of Pakistan’s Rapid Digital-Finance Overhaul

The tokenisation initiative is part of a broader push that includes:

• Establishing the Pakistan Crypto Council

• Launching the Virtual Assets Regulatory Authority

• Drafting a nationwide crypto licensing framework

• Accelerating digital-finance policy reforms

Pakistan is moving quickly to align with global trends, following countries such as the UAE, Japan, and several EU states in adopting regulated blockchain frameworks.

#Pakistan #Binance #CryptoNews #Tokenisation #Blockchain #DigitalAssets #HTX #FinTech #PakistanEconomy #CryptoRegulation

Pakistan tokenisation, Binance Pakistan, Pakistan crypto regulation, HTX Pakistan, sovereign bonds tokenisation, Pakistan blockchain news, Pakistan finance reforms, digital assets Pakistan, PVARA, cryptocurrency regulation Pakistan

Salient Features of Finance Bill 2023

By masohail 

June 9, 2023

Salient Features of Finance Bill 2023

             A-Salient Features of Income Tax

            B-Salient features of sales tax

A-Salient Features of Income Tax

According to the Pakistan Budget 2023-24 unveiled on Friday, the main features introduced in the Income Tax Ordinance 2001 through the Finance Act 2023 are given.

REVENUE MEASURE:

1. Rationalization of super tax under section 4C which will apply to all persons with income above Rs. 150 (million): insertion of three more new revenues of Rs. 350 (million) to Rs. 400 (million), Rs. 400 (million) to Rs. 500 (million) and Rs. 500 (million) above will be taxed at 6%, 8% and 10% respectively.

2. Re-imposition of 0.6% pre-set withholding tax to persons without ATL when withdrawing cash.

3. 1% increase in the rates of withholding tax on the supply of goods other than the sale of rice, cotton seeds or edible oils, on the provision of services including the service subject to a preferential tax of 3%, but excluding advertising services in electronic and print media and on the performance of a contract except athletes.

4. 0.5% increase in rate of withholding tax for commercial importer on import of goods falling under Part III of Twelfth Schedule of Income Tax Ordinance, 2001. 5. Re-imposition of final withholding tax of 10% on issue of bonus shares by companies (20% for non-ATL).

6. Increase in withholding tax rate from 1% to 5% when paying to non-residents through debit/credit or prepaid cards. (2% to 10% for those without ATL).

7. Imposition of Adjustable Advance Tax of Rs. 200,000 at the time of issuance of work permit/visa for the employment of a foreign domestic helper.

8. Additional tax at a rate not exceeding fifty percent of the income and profits of a person or group of persons due to extraordinary profits due to external factors.

RELIEF MEASURES:

1. Continuation of preferential flat tax rate of 0.25% for IT and ITeS exports for tax years 2024, 2025 and 2026.

2. Automated issuance of a certificate of exemption for payment to a non-resident within 30 days of application.

3. Revocation of the requirement to submit a sales tax return to use the preferential fixed tax rate of 0.25% for IT and ITeS exports.

4. Increase in manufacturer's business turnover limit from Rs. 250 (million) to Rs. 800 (mil) to qualify for preferential tax treatment for SMEs and inclusion of IT & ITeS in the definition of SMEs.

5. Concessional tax rate of 20% on income of banking company on additional advances to IT & ITeS sector instead of standard rate of 39%.

6. Increasing the monetary limit for foreign remittances sent from outside Pakistan from five million rupees to the rupee equivalent of USD 100,000 for the purposes of section 111(4), which puts a bar to inquiry into the nature and source of unexplained income/assets.

7. Waiver of 2% final withholding tax on the purchase of real estate for a non-resident physical POC/NICOP holder, if the real estate is acquired through foreign transfers remitted from abroad.

8. 10% reduction in tax liability or Rs. 5 (millions), whichever is lower for the builder and 10% reduction or Rs. 1 (million) whichever is lower for an individual for self-construction of a house for three years.

9. 50% reduction in tax liability for three years for youth entrepreneurship (maximum limit of Rs 2 million for individual / AOP and Rs 5 million for company). Youth is defined as a natural person under 30 years of age.

10. Extension for two years for the purpose of concessional tax rate of 20% for banking company income from additional advances for low cost housing, agriculture and small and medium enterprises including IT and ITeS.

11. Promotion of export of commodities (agricultural products, gems, metals etc.) through online platform by providing 1% concessional final tax rate to indirect exporters.

12. Reduction of minimum turnover tax liability from 1.25% to 1.0% for companies listed on the Pakistan Stock Exchange.

13. Extension of exemption for one year granted to a person on gains and profits from the sale of immovable property or interest of a special instrument in any type of REIT scheme, i.e. until June 30, 2024.

14. Extension of Income Tax Exemption by one year i.e. till 30th June 2024 for FATA/PATA Residents.

15. Five-year tax holiday for agricultural industries that are small and medium-sized enterprises established on or after July 1, 2023 from tax year 2024 to tax year 2028.

OTHER MEASURES:

1. Extending the scope of the definition of a permanent establishment in Pakistan to a non-resident.

2. Simplifying the definition of collaborators to make it more concise and refined.

3. Bringing more clarity to the minimum sales tax transfer regime.

4. Removal of a technical error in the super tax regime of the banking sector by replacing the year 2022 with the tax year 2023.

5. Insertion of an enabling provision for the calculation, collection and payment of super tax according to Section 4C.

6. Re-imposition of advance adjustable withholding tax from non-ATL persons.

7. Introduction of enabling provision for the purpose of recovery of non-tax revenue due under any other law or statute by the Commissioner of Internal Revenue.

8. Effectiveness of name change from “2022 Prime Minister's Relief Fund” to “Prime Minister's Fund for Floods, Earthquakes and Other Disasters”.

        B-Salient features of sales tax

According to the Pakistan Budget 2023-24 unveiled on Friday, the major features introduced in the sales tax 1990 through the Finance Act, 2023 are listed.

RELIEF MEASURES:

1. Extension of sales tax exemption on NMD (FATA/PATA) for one more year ending on 30.06.2024.

2. Provision of sales tax exemption for contraceptives and accessories.

3. Provision of tax exemption on sales of plant seedlings, combine harvesters, agricultural product dryers, no-till seeders, suction machines, planters, other planting machines AND bovine semen.

4. Grant of sales tax exemption on import of IT equipment to IT and ITeS exporters registered with Pakistan Software Export Board.

READ MORE: Pakistan Budget 2023-24: Govt allocates Rs 100 billion for water sector

REVENUE MEASURE:

5. Abolition of exemption from sales tax on edible products sold in bulk under trade names or trademarks.

6. Increase in the reduced rate of sales tax from 12% to 15% on supplies from POS sellers dealing in leather and textile products.

7. It is proposed to remove the floor space requirement for Tier 1 retailers.

8. The Directorate-General for Digital Invoicing and Analytics is proposed to be renamed as the Directorate-General for Digital Initiatives.

9. It is proposed to widen the scope of the penal measures by replacing "packages of cigarettes" with "specified goods".

10. S. No. 12(xxv) of the Fifth Schedule is proposed to be amended by substituting the present description "Other drawing, plotting or mathematical calculating apparatus (geometrical box) (PCT No. 9017.2000)".

11. It is proposed to extend the scope of Section No. 21 of the Fifth Schedule providing zero-rating to an exporter registered under the Export Facilitation Scheme, 2021 by inserting the word "commodities".

12. The omission of S. No. 159 and 160 in Table 1 of the Sixth Annex is proposed as redundant, as the time-bound exemption has already expired on 31/12/2021.

13. It is proposed that the production, transmission and distribution of electricity be exempted from sales tax in accordance with the decision of the National Tax Council.

14. For clarification purposes regarding the exemption from sales tax for transfusion sets not wrapped in aluminum foil imported in one shipment with blood bags, an explanation is proposed under S. No. 121 of Table 1 of the Sixth Schedule.

PAKISTAN FACING SEVERE POLITICAL CRISIS IN APRIL 2023

 By marana

Now a days the Pakistan Democratic Movement (PDM) coalition government of around eleven political parties is in power until August 2023. Imran Khan was ousted from power in April 2022 after losing a no-confidence vote, becoming the first Pakistani Prime Minister to be elected . issued by the National Assembly. Since his ouster, he has been calling for snap polls in the country to remove what he called an "imported government" led by Prime Minister Shehbaz Sharif. Meanwhile, a Pakistani court granted Imran Khan interim bail in seven cases.

The current crisis stemmed from Imran Khan's decision to dissolve the provincial assemblies of Punjab and Khyber-Pakhtunkhwa in January 2023. PTI was in power in both provinces. According to the constitution, elections were supposed to be held in 90 days, but the federal government was reluctant to hold them. As expected, the PDM ruling coalition did not succumb to PTI pressure. Imran Khan led the rally in an unsuccessful attempt to get Sharif to agree to early elections, which are scheduled for later in 2023. Khan has been holding protest rallies across the country to demand early elections, but his successor as prime minister, Shehbaz Sharif, has rejected Khan's demands . Since then, Pakistan has been falling into polarization and one crisis after another. Pakistan faces constitutional crisis over Imran's desire for early elections: The blame game continues as expected.

The federal government opposes early elections. He says elections should be held on the same day the incumbent government completes its constitutional term. The ruling party says that holding elections separately would increase the political crisis. However, both sides admit that the stalemate has led to political instability and a worsening of the economic situation.

The political conflict may lead to a decisive police operation against the Tehreek-e-Insaf (PTI), which may lead to further violence. The PDM government is somehow trying to reduce the great popularity of the PTI party. In March, the oversight committee suo motu pointed out the delay and ordered the Election Commission of Pakistan (ECP) to hold elections in Punjab and K-Initially, the date for the Punjab elections was set on April 30, but the ECP postponed it to October 8. However, this only deepened the crisis , because the parliament refused to bear the costs of the election.

The ruling coalition also took the position that the court's decision would not stand as four of the seven-member panel rejected the suo motu notice. Now the matter is back at the Supreme Court, where a three-judge panel has called for political dialogue to resolve the issue. The Supreme Court then again granted the PTI's plea against postponing the elections and directed the ECP, the election watchdog, to hold the elections on May 14 in any case.

The Supreme Court ruled that its judgment given in the election postponement petition has already fixed the date of Punjab Assembly elections on 14 May 2023. “This judgment stands and therefore its decision is binding on all the judiciary and executive in the country under Article 189 and Article 190 of the Constitution," the order stated. Currently, both the executive and the judiciary have reached an impasse due to the government's difficulty in implementing the Supreme Court verdict ordering the May 14 Punjab Assembly elections.

In its April 4 order, the Supreme Court directed the government to provide Rs 21 billion to the ECP to conduct elections in Punjab and Khyber Pakhtunkhwa by April 10 and directed the ECP to submit a report to the court on whether the government followed Order 11. April. However, the government referred the matter to the parliament, which defied the orders of the ÚS and refused to release the funds.

pakistan political crisis

The court then issued notices to the Finance Secretary, Governor SBP, Attorney General for Pakistan (AGP) and the ECP, directing them to appear before the bench on April 14. It also directed the SBP to provide a record and details of all federal government money under or under the control, management or direction of the bank. After hearings in chambers, the court issued an order directing the SBP to release Rs 21 billion from the FCF for the elections.[5]

The court also saw that the required funds could be made available to the Election Commission of Pakistan (ECP) "immediately and within a day". It also noted that there were "absolutely no difficulties or hiccups, whether financial or procedural or in terms of the relevant authorization by and under the Constitution" in the immediate release of the funds in question.[6] Later, on 19 April 2023, while hearing a petition for holding general elections to national and provincial assemblies simultaneously across the country, the Chief Justice of Pakistan (CJP) asked political leaders to negotiate to end the impasse.

The PDM government and the extremely powerful army do not want the election on the appointed day at all. So the election deadline can be extended to make elections possible. Otherwise, it may not even be May 14. Today, the Supreme Court also summoned the leaders or representatives of all political parties. There is still room for some political compromise. Due to the immense power of the military, it must also be involved behind the scenes in a major compromise. The focus must be on peaceful, fair and just elections. Meanwhile, time is running out for Pakistan's ruling elite. Only external intervention can now solve the country's significant crisis. The court called elections in Punjab for May 14 after declaring the postponement of the vote unconstitutional and rejecting the defense ministry's request that elections be held simultaneously across the country at a later date instead, amid worsening security and economic conditions.

pakistan economic crisis 2023

Today, Pakistan is at a historic crossroads like never before in history. Pakistan is facing a serious political crisis. Only court verdicts calmed the volatile situation. Regardless of the apparent inclination of Pakistan's PDM government not to hold elections as per the Supreme Court verdict, people are demanding them in accordance with the law. Attempts to crush opposition forces no longer make sense. Is Pakistan falling into direct military rule? National institutions are fighting over the issue of regional elections and the powers of the President of the Supreme Court. The legal fraternity of Pakistan expressed its full support to the Constitution and the Supreme Court of Pakistan and demanded that the elections to the Punjab and KP Assemblies be held immediately, in accordance with the dictates of the Constitution and the orders of the Supreme Court. The Welcome development legal initiative is also supported by a number of human rights groups. However, the PDM government and the military think otherwise. High tension in Pakistan

#pakistan vs india

UAE confirms gift of $1 billion bilateral support to Pakistan to IMF:

 by web desk

UAE confirms gift of $1 billion bilateral support to Pakistan to IMF:

The finance minister says that Pakistan is now dealing with the necessary documentation to take over the advance from the UAE authorities Finance Minister Ishaq Dar announced on Friday that the United Arab Emirates (UAE) has confirmed $1 billion in bilateral support to Pakistan to the International Monetary Fund (IMF), the final condition for finalizing staff-level agreements with the IMF.

The finance czar said on his official Twitter account that the State Bank of Pakistan is now "engaged with the necessary documentation to take over the said advance from the UAE authorities".

Meeting of the IMF term and conditions

At an earlier meeting, Pakistan had strongly urged the IMF to show some flexibility and sign a staff-level agreement, but failed to agree a date despite Islamabad's growing fears of the fallout from a worsening economic crisis.

The request was made by Finance Minister Ishaq Dar in a virtual meeting with Jihad Azour, director of the IMF's Middle East and Central Asia Department. However, the minister could not achieve the desired result, as the IMF again raised the issue of gasoline subsidies and possible fiscal leakages due to the implementation of the subsidy plan.

UAE confirms gift of $1 billion bilateral support to Pakistan to IMF:

The two sides shared their positions on external funding requirements of $6 billion – the amount Pakistan needed between now and June to avoid default.

The IMF was informed that Saudi Arabia had confirmed a $2 billion loan to Pakistan and Dar assured that the UAE would soon confirm its commitment to provide $1 billion.

$6 billion funding plan remains elusive

The two sides also discussed the progress made in the IMF programme, particularly the talks held with the IMF mission during its visit to Pakistan, and the implementation of previous measures, a press statement issued by the finance ministry said.

During the first eight months of this fiscal year, the current account deficit remained at $3.9 billion. Dar assured the IMF that Pakistan would secure an additional $2 billion loan from the World Bank, Asian Infrastructure Investment Bank and commercial banks if the fund signs a staff-level agreement.

UAE confirms gift of $1 billion bilateral support to Pakistan to IMF: