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HomeBusinessSaudi Arabia will offer a delayed oil facility worth $3.6 billion: Tarin

Saudi Arabia will offer a delayed oil facility worth $3.6 billion: Tarin

JHELUM: According to a senior government official, Saudi Arabia has agreed to fund a $3.6 billion delayed oil payment arrangement.

“Saudi Arabia will provide us $150 million credit facility on a monthly basis for the purchase of oil for two years, which is approximately $3.6 billion,” Federal Finance and Revenue Minister Shaukat Tarin said during the inauguration ceremony of the Track and Trace Facility established at the Jhelum factory of Pakistan Tobacco Company. “Saudi Arabia will provide us cash, and it is up to us to buy oil from anywhere we want,” he stated in response to a query.

In response to inflationary pressure, the finance minister stated that it indicates that the economy is functioning well, citing a 38 percent increase in revenue in the first quarter as evidence.

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Economic growth creates demand and increases inflation, which we seek to control,” Tarin added.

Earlier, the finance minister stated that the country’s tax-to-GDP ratio has been in the region of 8% to 12% for many years. He said that the country’s GDP must increase at a pace of 8% to 10% each year to achieve long-term economic growth.

The introduction of facilities such as Track and Trace Facility will reduce interaction between the Federal Board of Revenue (FBR) and the taxpayer, which will reduce the element of corruption and tax evasion, Tarin said and congratulated the Pakistan Tobacco Company for introducing this state-of-the-art facility.

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PTC managing director Syed Ali Akbar said that illicit trade of counterfeit and smuggled cigarettes is causing a loss of Rs70 billion to the national exchequer. British American Tobacco, the parent company of PTC, has shifted its cigarette manufacturing plants to Pakistan.

The PTC has already exported cigarettes worth Rs30 billion to Saudi Arabia and the Middle Eastern countries, he added.

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