'$10b US facility not a loan'

On Wednesday, Finance Minister Muhammad Aurangzeb stated that a proposed $10 billion US facility is not a loan. According to The Express Tribune, he described it as a signal of currency and exchange rate stability that would help Pakistan tap markets for debt and replace bilateral borrowing. The request, lodged with the US Treasury's Exchange Stabilisation Fund, is expected to receive a response by the end of September.

Aurangzeb also launched a simplified tax scheme for small traders, under which those with one shop and annual sales of up to Rs200 million pay 1% of sales. The minimum payment is Rs25,000 a year, and participants can file a short return through mobile devices. Under the scheme, participants will not face questions on where their assets came from, backed by legal guarantees.

FBR Chairman Rashid Langrial said the scheme could draw millions of non-filing traders into the tax base and that tens of thousands would join even if it fails. Langrial cited 4.2 million retailers with commercial connections, while trader representative Ajmal Baloch put the number at 12.5 million. Langrial also ruled out the 1% rate for salaried people, who paid Rs630 billion last fiscal year, while the government plans a simplified return form for them.