The
Supreme Court of Pakistan has declared all interest related laws as repugnant to the
injunctions of Islam in its verdict on Dec.23,1999.
As a result of the verdict all interest based financial instruments offering fixed
interest rate within the specified time frame would become illegal after June 30, 2001 in
Pakistan.
A commission will be set up that will be responsible for developing and preparing
the groundwork for such methods of financial dealings as will be in conformity with the
principles of Islam.
Consequently, all the contracts, arrangements and laws would remain so till such
time that the modified arrangements were worked out in the light of the recommendations of
the commission for transformation, to be set up in the State Bank of Pakistan.
SECTORAL ANALYSIS
An effort
is made, with the help of KASB, to analyze the impact of economic revival plan. After the
restructuring of external debts and focus on the key issues, the plan seems to be capable
of turning around the economy.
TEXTILE QUOTA POLICY
The
policy is aimed at boosting textile exports by addressing the issue of eroding
competitiveness of exporters due to trading of quota. At the same time there is a need for
higher allocation of quota to exporters achieving higher value addition.
CUSTOM'S
VALUATION
The
government has issued a new notification spelling out new rules to regulate the valuation
of imported goods for levy of custom's duties and other taxes. The new rules, Custom's
Valuation (Determination of Value of Imported Goods) Rules, 1999 will come into force with
effect from January 1, 2000 and will apply to goods imported, or for which bill of entry
is filed, on or after January 1, 2000.
