Page 88 - CMA Journal (May-June 2025)

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SBP Keeps Interest Rate at 11% to increasing 8% to PKR 164 trillion. Mobile and
wallet-based platforms processed 1.69 billion
Support Economic Stability
transactions worth PKR 27 trillion. E-commerce payments
The State Bank of Pakistan (SBP) maintained the policy rose 40% in volume and 34% in value, driven largely by
rate at 11% in its June 16 meeting, noting that inflation digital wallets. Raast processed 371 million transactions
remains within expectations and economic growth is worth PKR 8.5 trillion, while RTGS handled PKR 347 trillion
gradually recovering. The central bank highlighted in large-value payments. The SBP highlighted strong
concerns over the widening trade deficit and slow momentum toward a digital economy supported by
financial inflows, but pointed out that the current account banks, fintechs, and its strategic initiatives.
remains stable and reserves rose to $11.7 billion after a $1
billion IMF disbursement. The SBP emphasized the need SBP Seeks Feedback on Revised SME
for continued fiscal discipline, timely foreign inflows, and Financing Regulations
structural reforms to ensure long-term macroeconomic
The State Bank of Pakistan has released draft Prudential
stability and sustainable growth.
Regulations for SME Financing to promote responsible
SECP Unveils Draft Framework for and inclusive lending. The revised guidelines aim to
remove structural barriers, promote fintech partnerships,
Regulating Algorithmic Trading
and encourage tech-driven solutions. Public consultation
The Securities and Exchange Commission of Pakistan is open until June 20, 2025, and feedback can be
(SECP) has released a concept paper proposing a submitted via the SBP website to help refine the
regulatory framework for algorithmic trading based on regulations in line with market needs.
global best practices. The framework outlines roles for
exchanges, brokers, and third-party providers to ensure FBR Misses Revised FY25 Revenue
oversight, risk control, and market integrity. Initially, Target by Rs163 billion
algorithmic trading access will be limited to institutional
Despite revising its annual target twice, the FBR fell short
investors, with phased expansion planned.
by Rs163 billion in FY25, collecting Rs11.737 trillion
SECP Proposes Reforms to Expand against the revised Rs11.9 trillion goal. The shortfall was
mainly due to lower imports, weak sales tax compliance,
Employer Access to Pension Funds
and sluggish economic growth. However, revenue still
The SECP has released a consultation paper proposing grew 26% year-on-year. Income tax, sales tax, and
key amendments to the Voluntary Pension System (VPS) customs duty all missed targets, while Federal Excise Duty
Rules, 2005, to enhance pension coverage and exceeded expectations. In June, the FBR collected
operational efficiency. A major reform allows Employer Rs1.499 trillion, up 26% from last year but Rs166 billion
Pension Funds (EPFs) to serve multiple employers under a below the monthly target.
common fund structure, enabling cost savings and
greater access for SMEs. The changes aim to address FBR Targets 18% Tax-to-GDP Ratio
structural limitations, align with global best practices, and by FY2028
foster a broader retirement savings culture. Public
The Federal Board of Revenue (FBR) aims to raise
comments are invited to help shape the final
Pakistan’s tax-to-GDP ratio to 18% by FY2027–28, with the
amendments.
federal share reaching 15% and provinces contributing
SBP Reports Strong Growth in Digital 3%. In FY2024–25, revenue collection rose by 26%, driven
by Rs865 billion from improved enforcement—an
Payments in Q3-FY25
eightfold increase over last year. Despite missing its
The State Bank of Pakistan (SBP) reported continued revised target, the FBR achieved a 12.1% tax-to-GDP ratio,
growth in digital payments during Q3-FY25, with retail the highest in a decade.
transactions rising 12% to 2.41 billion and value

86 ICMA’s Chartered Management Accountant, May-June 2025