Secp

SECP Proposes Framework for Algorithmic Trading in Pakistan

by NewsSECP

ISLAMABAD, May 30, 2025:
The Securities and Exchange Commission of Pakistan (SECP) has issued a Concept Paper proposing a regulatory framework for algorithmic trading in the country. The goal is to promote innovation while ensuring market integrity and investor protection.

The proposed framework outlines responsibilities for key stakeholders: stock exchanges will handle registration and oversight, brokers must implement strict controls and governance, and third-party algorithm providers must follow legal and regulatory standards.

Initially, only institutional investors will be allowed access, with retail investor participation considered in later phases based on market readiness and risk evaluation.

The Concept Paper is open for public feedback until June 14, 2025, and is available on the SECP website. Comments can be sent via email to [email protected].
For more information you can check the circular https://www.secp.gov.pk/wp-content/uploads/2025/05/Press-Release-SECP-Proposes-Regulatory-Framework-for-Algorithmic-Trading-in-Pakistan-002.pdf

Cegeratess

Concerns Raised Over Repeated Foreign Influence in Pakistan’s Tobacco Tax Policy

by News

ISLAMABAD: Mubashir Akram, National Convenor of ACT Alliance Pakistan, has called for protecting Pakistan’s fiscal sovereignty by ensuring tax policies reflect national interests and local realities.

Speaking to journalists, he expressed concern over foreign influence—particularly from WHO, CTFK, and Vital Strategies—in Pakistan’s tobacco taxation, often ahead of budget season. He noted these organisations operated without proper registration or approvals.

“While public health is important, tax decisions must be made transparently, based on local data and enforcement capacity—not external agendas,” Akram said. He criticised WHO’s double standards, highlighting that its host country, Switzerland, has yet to ratify the tobacco control treaty it promotes globally.

Akram warned that further tax hikes could harm the legal tobacco industry, already heavily taxed in 2023, and fuel the Rs. 30 billion illegal trade, risking the loss of Rs. 300 billion in tax revenue.

He urged the government to support legal businesses, improve enforcement, and resist foreign pressure. “Policy decisions must come from within, through dialogue and data—not foreign campaigns,” he concluded.

Customs

Karachi Customs Uncovers Rs. 500 Million Tax Evasion Import Fraud Case

by CustomsNews

Karachi Customs Uncovers Rs. 500 Million Tax Evasion Import Fraud Case

Karachi – May 28, 2025:
In a major crackdown on import fraud, the Collectorate of Customs (Appraisement-East) Karachi has unearthed a large-scale scheme involving misdeclaration and concealment of imported goods, resulting in estimated tax and duty evasion of Rs. 500.44 million.

The case, registered under FIR No. 08/2025, names M/s Tri-Star Packages (NTN 8989461) and its clearing agent M/s Mahabat Khan & Sons (CHAL No. KCUS-3058) as the key conspirators. The investigation revealed deliberate misdeclaration of “Secondary Quality Electrolytic Tin Plate (ETP)” as “Prime Quality Galvalume Steel in Coil”, a lower-taxed category, to evade higher duties.

The method was deceptive: only the outer layers of the coils contained Galvalume Steel, while the inner material was the higher-taxed ETP. The declared value of USD 0.5850/kg was also significantly below the actual value of USD 0.86/kg, as per Valuation Ruling No. 1948/2025.

Based on credible intelligence, customs officials swiftly blocked six Goods Declarations (GDs) for inspection. A physical examination and lab testing on May 23, 2025, confirmed the concealment. The estimated total value of the imports was Rs. 850.65 million.

Charges have been filed under Sections 32(1), 32(2), 32A, 79, and 209 of the Customs Act, 1969, with additional violations under the Sales Tax Act, 1990, and Income Tax Ordinance, 2001.

Collector Naveed Ilahi led the investigation with a special team including Additional Collector Amjad Leghari, Deputy Collector Huda Malik, and Appraising Officers Saud Shaikh and Jawahar Abbas. The operation resulted in the seizure of over 1,700 tons of misdeclared coils from multiple locations, including bonded warehouses and factories.

Internal sources raised concerns over alleged systemic weaknesses within the appraisement framework. Chief Collector Nasir Jameel faces criticism for policies said to enable such fraudulent clearances, including misuse of the “green channel” and a controversial officer reward system that allegedly discourages scrutiny.

Appraising Officer Syed Ansar Hussain, credited with uncovering a Rs. 4 billion fraud, was reportedly denied acknowledgment and faced internal pushback.

Additionally, customs staff report deteriorating working conditions under the Faceless Customs Assessment system, with extended hours, canceled leave, and no public holidays—despite May 28 being declared a holiday for Yaum-e-Takbeer.

Authorities have pledged to apprehend all individuals involved, including directors and partners of Tri-Star Packages and Mahabat Khan & Sons. The investigation is ongoing and expected to reveal further insights into fraudulent practices and internal lapses, reinforcing the call for robust oversight and reform in customs operations.

download

Rs700 Million Tax Evasion : Crackdown On Import Fraud Intensified

by News

In a major crackdown on import fraud, the Southern Region of Customs Appraisement has uncovered a high-value case involving over Rs 700 million in duty and tax evasion. The discovery was made by the Collectorate of Customs Appraisement East, as part of its ongoing efforts to curb smuggling and misdeclaration at the import stage.

According to official sources, the fraudulent activity came to light when customs officials identified that an importer had intentionally misdeclared electrolyte tin plates by labeling them as galvalum sheets, a tactic aimed at avoiding the correct application of duties and evading tax liabilities.

The misdeclaration was particularly difficult to detect as the concealed high-value goods were not visibly distinguishable during regular customs inspections. However, advanced scrutiny and intelligence-based checks helped expose the fraudulent consignment.

Criminal Action and Seizures

Following a thorough investigation, customs authorities arrested three individuals linked to the fraud and seized goods valued at Rs 1.2 billion. Contravention reports have been officially lodged against all involved parties, and further legal action is underway.

This case highlights the growing sophistication of import fraud operations and the importance of vigilance and advanced verification mechanisms by Pakistan Customs. The Collectorate of Customs Appraisement East continues to strengthen its enforcement activities to protect national revenue and ensure compliance with trade regulations.

download

WHO Urges FBR to Strengthen Tobacco Taxation Policy Amid Declining Revenue Performance

by NewsTax

The World Health Organization (WHO) has officially submitted its budget proposals for FY 2025–26 to the Federal Board of Revenue (FBR), urging Pakistan’s tax authorities to revise and reinforce tobacco taxation policies. The global health body emphasized the importance of regular Federal Excise Duty (FED) adjustments and stronger monitoring to prevent manipulation of cigarette production and sales strategies by the industry.

According to WHO’s submission, the reduced tax revenue from tobacco in the first nine months of FY 2024–25 cannot be reasonably linked to illicit trade, as tobacco companies claim. Instead, the primary reason for lower-than-expected revenue is a shift in consumer sales from heavily taxed premium cigarette brands to lower-taxed economy brands. This shift was deliberately facilitated by companies that increased production and stockpiled premium brands in the last quarter of FY 2023–24, taking advantage of the static FED rates.

FED Rates Have Remained Unchanged Despite Rising Inflation

Since February 2023, the FED rates on cigarettes have not been adjusted. In the same period, Pakistan’s inflation has surged by 26%, while cigarette companies only increased the retail prices of their top-selling brands by 10%. This has effectively reduced the real tax per pack, significantly impacting revenue collection.

As a result of unchanged FED rates and strategic manipulation by the tobacco industry, FED revenue from cigarettes grew by just 7.4% during July–March 2024–25, falling short of projections. The increased focus on economy brands—which are taxed at Rs 101 per pack compared to Rs 330 for premium brands—has led to a significant drop in the average effective FED rate per cigarette.

Industry Claims vs. Official Data

While tobacco companies argue that illicit trade has hurt tax revenues, official production data contradicts this claim. In fact, the production of economy brands has increased by nearly 30%, and total cigarette production rose by approximately 22% during the first nine months of FY 2024–25. However, production of premium brands dropped sharply by 53.4%, confirming a strategic shift toward lower-taxed products.

This shift in product mix, combined with the absence of FED adjustments, has diluted the impact of excise duty and reduced the government’s per-pack revenue. WHO stated that to preserve the purchasing power of February 2023’s excise rates, the FBR should have increased the FED to Rs 127 for economy brands and Rs 416 for premium brands. The failure to make these adjustments has cost the government an estimated Rs 82 billion over the past two fiscal years.

Significant Revenue Despite Lower Production

Contrary to industry claims, revenue collection from cigarette taxes surged after the FED rate hike in February 2023. In FY 2023–24, Pakistan saw its lowest cigarette production on record but still achieved record-high revenue from tobacco taxation. The FBR collected Rs 237 billion in FED from cigarettes—well above the revised target of Rs 205 billion—reflecting a 15.7% increase year-on-year.

1315581_7301193_SECP_akhbar

Public Alert: SECP Responds to Misuse of BMA Capital’s Name

by NewsSECP

SECP Clarifies Misuse of Licensed Broker’s Name by Fraudulent Online Investment Platforms

Islamabad – May 27, 2025:
The Securities and Exchange Commission of Pakistan (SECP) has issued a formal clarification in reference to its earlier press release dated May 22, 2025. The previous announcement warned the public about the rising number of illegal and fraudulent online trading and investment platforms that have been falsely using the names of reputable companies and licensed professionals, including BMA Capital Management Limited.

It is hereby clarified that BMA Capital Management Limited is a duly licensed and regulated securities broker under the supervision of the SECP. The company has no affiliation whatsoever with the fraudulent platforms operating under names such as “BMA Capital No.108” and “BMAC Global Pro.” In response, BMA Capital has also published a public warning on its official website to alert investors and stakeholders against this misuse of its identity.

The general public is strongly advised to verify the authenticity of any investment platform or scheme through the SECP’s official website and by reviewing the official websites of licensed securities and commodities brokers. This step is crucial to protect individuals from falling victim to online financial scams and to safeguard their hard-earned savings.

پریس ریلیز: جعلی آن لائن سرمایہ کاری پلیٹ فارمز سے متعلق وضاحت

اسلام آباد – 27 مئی 2025:
سیکیورٹیز اینڈ ایکسچینج کمیشن آف پاکستان (SECP) نے 22 مئی 2025 کو جاری کردہ اپنی سابقہ پریس ریلیز کے حوالے سے وضاحت جاری کی ہے، جس میں عوام کو ایسے جعلی اور غیر قانونی آن لائن ٹریڈنگ اور سرمایہ کاری پلیٹ فارمز سے خبردار کیا گیا تھا جو کہ معروف کمپنیوں، لائسنس یافتہ اداروں، اور مستند ماہرین – بشمول بی ایم اے کیپیٹل مینجمنٹ لمیٹڈ – کے ناموں کا غلط استعمال کر رہے ہیں۔

یہ واضح کیا جاتا ہے کہ بی ایم اے کیپیٹل مینجمنٹ لمیٹڈ ایک مکمل طور پر لائسنس یافتہ اور SECP سے ریگولیٹڈ سیکیورٹیز بروکر ہے اور اس کا جعلی پلیٹ فارمز جیسے “BMA Capital No.108” اور “BMAC Global Pro” سے کوئی تعلق نہیں ہے۔ کمپنی نے اس غلط استعمال کے خلاف اپنی سرکاری ویب سائٹ پر ایک انتباہ بھی جاری کر دیا ہے۔

عوام کو ایک بار پھر مشورہ دیا جاتا ہے کہ کسی بھی سرمایہ کاری پلیٹ فارم یا اسکیم کی قانونی حیثیت کی تصدیق SECP کی ویب سائٹ سے ضرور کریں اور صرف ان بروکرز پر اعتماد کریں جو SECP سے لائسنس یافتہ ہیں تاکہ خود کو کسی بھی مالی دھوکہ دہی سے محفوظ رکھا جا سکے۔

Fbr

NTN Inquiry in Pakistan

by FBR

Complete Guide to National Tax Number (NTN) in Pakistan

Updated: March 15, 2024
10 min read
By Sterling Editorial Team

A National Tax Number (NTN) is a unique identification number issued by the Federal Board of Revenue (FBR) to individuals and businesses in Pakistan for tax purposes. It is required for income tax filing, business registration, and many types of financial transactions.

Quick Summary

This comprehensive guide explains what an NTN is, how to verify it, the benefits of having one, common issues faced during the process, and practical solutions to overcome them.

What is a National Tax Number (NTN)?

An NTN is a 7-digit unique identification number issued by the Federal Board of Revenue (FBR) to individuals, companies, and associations for tax purposes in Pakistan. It serves as your unique identifier within Pakistan's tax system.

Important Distinction

For salaried individuals and sole proprietors, their CNIC (Computerized National Identity Card) number acts as their NTN. For business entities like companies, AOPs (Association of Persons), and partnerships, a separate NTN is issued by the FBR.

Having an NTN is a legal requirement for taxpayers in Pakistan and is essential for financial transparency, tax compliance, and accessing various government and financial services.

How to Check Your NTN Online in Pakistan

The FBR has made NTN verification accessible through multiple digital channels. Here are the three main methods to check your NTN status:

NTN Verification Through IRIS Portal

  1. Visit the official IRIS portal
  2. Navigate to 'Online Verifications' section
  3. Select 'Taxpayer Profile Inquiry'
  4. Choose parameter type (CNIC or Registration Number)
  5. Enter your CNIC without dashes (e.g., 4230112345671)
  6. Complete the CAPTCHA and submit
  7. View your NTN and registration details

Using Tax Asaan Mobile App

  1. Download 'Tax Asaan' app from Play Store or App Store
  2. Register using your CNIC or mobile number
  3. Navigate to 'NTN Inquiry' or 'Taxpayer Verification'
  4. Enter your CNIC number (without dashes)
  5. App displays NTN and tax profile information

Note: The Tax Asaan app also allows tax filing, checking tax history, and receiving FBR notifications.

Check NTN Status via SMS

  1. Open SMS application on your phone
  2. Type ATL [space] CNIC (without dashes)
  3. Send to 9966
  4. Receive instant reply with NTN and ATL status

SMS Format Example

ATL 4230112345671 - Send to 9966

Standard SMS charges apply. Available on all Pakistani networks.

Benefits of Having an NTN in Pakistan

Registering for an NTN and maintaining active taxpayer status provides numerous advantages:

  • Legal Compliance: Fulfills your obligation under Pakistan's Income Tax Ordinance
  • Business Banking: Required for opening and operating business bank accounts
  • Tax Filing: Essential for filing annual income tax returns
  • Government Contracts: Mandatory for participating in government tenders
  • International Travel: Facilitates visa processing for many countries
  • Sales Tax Registration: Enables businesses to collect and remit sales tax
  • Business Credibility: Enhances trust with clients, suppliers, and investors
  • Loan Applications: Required for business and personal loans from financial institutions
  • Property Transactions: Needed for property registrations above certain thresholds
  • Withholding Tax Exemptions: Active taxpayers enjoy lower withholding tax rates

Common NTN Verification Problems & Solutions

Users may encounter issues during NTN verification. Here are common problems and their solutions:

Frequently Encountered Issues

  • CNIC entered with dashes or incorrect format
  • FBR system temporarily unavailable
  • Mobile number not registered with FBR
  • NTN not yet activated or issued
  • Incomplete taxpayer profile in IRIS system
  • Outdated information in FBR records

Practical Solutions

  1. Format Issues: Always enter CNIC without dashes (4230112345671, not 42301-1234567-1)
  2. System Downtime: Try during off-peak hours (early morning or late evening)
  3. Unregistered Mobile: Visit FBR office to register/update mobile number
  4. No NTN Found: Apply for NTN registration at nearest FBR office
  5. Incomplete Profile: Log into IRIS portal and complete all required fields
  6. Persistent Issues: Contact FBR helpline (0800-111-117) or visit FBR facilitation center

Why NTN Verification Matters

In Pakistan's evolving digital economy, NTN verification is crucial for individuals and businesses:

  • Official Registration: Confirms your formal registration with FBR
  • Formal Economy: Integrates you into Pakistan's formal economic system
  • Penalty Avoidance: Helps avoid penalties for non-compliance
  • Financial Trust: Builds credibility with banks and financial institutions
  • Legal Requirements: Essential for various financial and legal processes
  • Economic Contribution: Demonstrates your contribution to national development
  • Credit Profile: Improves your creditworthiness and financial reputation
  • Digital Integration: Required for various e-government services

Active Taxpayer List (ATL) Benefits

Being on the Active Taxpayer List provides additional benefits including reduced withholding tax rates on banking transactions, contracts, and imports. To qualify for ATL, you must file your income tax return by the due date each year (September 30 for individuals).

Conclusion

NTN verification in Pakistan has become streamlined and accessible through multiple digital channels. Whether you're a salaried individual, freelancer, business owner, or corporate entity, maintaining an active NTN is essential for tax compliance and financial legitimacy.

You can verify your NTN through the FBR's IRIS portal, Tax Asaan mobile app, or via SMS. Regular verification and keeping your information updated with FBR ensures you remain in good standing with tax authorities.

Remember, being a compliant taxpayer not only fulfills your civic responsibility but also unlocks numerous financial and business opportunities in Pakistan's growing economy.

Sterling.pk Assistance

Need help with NTN registration or facing verification issues? Contact our team for professional assistance with FBR registration, tax filing, and business compliance services.

Tags: NTN Pakistan FBR Registration Tax Filing Business Compliance