On Friday, Prime Minister Imran Khan ordered Benami property or suspected Benami property in a jurisdiction within a month as part of a government campaign to record the economy as a major driver of Benami property. The guidelines began with government efforts to support the promotion of anti-corruption through proactive policies and anti-corruption methods at all levels of government and society.
Local development authorities
Local development authorities were instructed to identify such properties through their own records and monitoring mechanisms / sources. In a letter issued by his office, Khan said that the deputy director and development authority head would issue a certificate that, in addition to the identified, Benamis property or suspected Benamis property did not exist in their jurisdiction. The Senate warned the deputy director and development authorities in the form of legal proceedings in the form of legal proceedings in the event that Benamii property was identified at a later stage.
The Benami law was enacted in January 2017, but due to the delay in finishing the rules, measures against burners were enforced. Mr. Khan said a report on the subject should be submitted to the chairman of the Federal Revenue Board by the end of next month and a copy of the report to his office. The Benami Transactions (Prohibition) Act was enacted under the National Assembly Act of January 2017, but due to the delayed closing of the rules, measures under this law were incinerated.
Finally, on March 12, 2019, the FBR notified the rule by notice. On July 23, FBR Chairman Shabbar Zaidi asked bank representatives to collect details of Benami account holders within two weeks. The government announced on May 14 (expired on July 3) a tax reduction scheme to provide people with the greatest opportunity to report hidden assets and accounts.
The government also took several other steps to record the economy. The term benami refers to the practice of holding property / assets in the name of one person for the benefit of another. However, this practice often aims to hide ownership of assets acquired through illegal means, to prevent fraud from creditors, and to avoid paying government fees, fees or taxes.
On August 20, the Prime Minister convened a meeting on the progress of Benami Real Estate. The prime minister called for the implementation of Benami law to regain its potential in national and global contexts.
Benamis property tracking through
Mr. Khan stressed the need to track Benamis property across the country and asked the state to play an active role in initiating Benamis property tracking through relevant agencies to support this national cause. Earlier this month, the government formed a six-member Benami Information Processing Committee following the pattern of a joint investigation team for data collection on Benami information.
FBR Member Audit Nausheen Javed Amjad has been appointed National Coordinator of the Commission includes inter-member service intelligence, intelligence agencies, federal investigative agencies, Pakistani State Bank, and officials of the Pakistan Securities and Exchange Commission. The committee has been tasked with expediting action on Benami assets and supporting the performance improvement of related agencies.
The FBR Benami District in Karachi and Lahore, as Benami Dar, has issued a show cause notice to several companies holding shares and real estate. Some notices have also been issued to individuals. The FBR established three Benami districts in Karachi, Lahore and Islamabad to enforce the 2017 Benami Trading (Prohibition) Act.
Prime Minister Lim Lan Khan
Lim Lan Khan ordered all deputy directors and development officials to verify Benami's property within their jurisdiction within a month, a notice announced in the Prime Minister's office Friday. The Prime Minister at a meeting on the property of Benami to emphasize the implementation of the Benami law in 2019 to fulfill its true potential in all national and global situations," said the secretary. Associate members, collectors and caretakers of real estate records, play an important role in collecting property records.
According to the notice, the statewide developmental authority may be instructed to identify such properties through his records and monitoring mechanisms. The notice instructed all deputy directors and developmental authorities in the country to provide a certificate confirming that the Benamis property did not exist within their jurisdiction, apart from those identified at the end of the movement.
This notice warns that if Benami property is found at a later stage, the relevant Deputy Director or the Director of Development may "be liable for litigation under the relevant provisions of Benami law. By September 30th, a complete report on this matter will be submitted to the Chairman of the Federal Revenue (FBR), instructing them to submit a copy to the PM office.
The term benami refers to the practice of holding property / assets in the name of one person for the benefit of another. But Benami often aims to hide ownership of assets acquired through illegal means, prevent fraud from creditors, or avoid government fees, fees or taxes. In July, the FBR initiated a lawsuit against citizens who did not declare their property in accordance with the asset reporting scheme, which expired on July 3.
Banks mostly invested in financial products
Since the government was unable to raise the amount the market wanted at a Treasury auction on Wednesday, banks mostly invested in financial products for three months, indicating uncertainty about future interest rate trends. The auction attracted a bid of 1.452 trillion rupees, which the Pakistan State Bank (SBP) received 1.257 trillion rupees. The participant's total bid is much lower than the Rs2tr goal. The goal was high but maturity was higher. SBP's calendar for the T-bill auction showed that the maturity amount is Rs3.230tr.
The government has so far relied almost entirely on banks for lending demands after the SBP has stopped supplying the government. The government has accepted a bid of Rs 1.157tr for three-month T-bills, which reflects the investor's desire for short-term risk. However, six- and twelve-month financial instruments have not attracted investors' attention, as financial institutions that believe interest rates will rise in upcoming monetary policy announcements following rising inflation.
The cutoff yield for the 3-month paper was 13.74%. It has not changed since the last auction held on July 31. The government raised 4.6 billion rupees and 99.4 billion rupees with cutoff yields of 13.95 and 14.24 pcs, respectively, for six and twelve months. Despite high cutoff returns for all tenants (three months, six months and twelve months) since the last auction, the government has failed to achieve its goals in the last two auctions.
In the last auction
The government borrowed 8.88 billion rupees for a goal of 1.5 trillion rupees. The bidding pattern on Wednesday's auction showed investors invested 1.21.2 trillion (Rs1.23tr) for three months of T-bills, indicating that investors were not willing to invest in long-term instruments. The bank provided 35 billion rupees in six months and 1.68 billion rupees in twelve months. The government raised a considerable amount of Rp 39 billion over 12 months, but the cutoff yield was quite high at 14.24pc.