Banking and Finance:

1. State Bank of Pakistan (SBP):

   • The State Bank of Pakistan is the central bank, responsible for monetary policy, issuance of currency, and regulation of the banking sector.

2. Commercial Banks:

   • Various commercial banks operate in Pakistan, providing a range of financial services such as deposits, loans, and trade finance.

3. Islamic Banking:

   • Islamic banking operates alongside conventional banking, offering financial services compliant with Sharia principles.

4. Microfinance Institutions:

   • Microfinance institutions play a role in providing financial services to small-scale entrepreneurs and low-income individuals.

5. Securities and Exchange Commission of Pakistan (SECP):

   • The SECP regulates capital markets, corporate governance, and securities laws.

6. Stock Exchanges:

   • Pakistan has multiple stock exchanges, including the Karachi Stock Exchange (PSX), where companies are listed and traded.

Taxation (FBR – Federal Board of Revenue):

1. FBR Overview:

   • The FBR is the federal agency responsible for tax collection in Pakistan.

2. Income Tax:

   • Individuals and businesses are subject to income tax on their earnings.
   • Progressive tax rates apply to various income brackets.

3. Sales Tax:

   • Sales tax is levied on the sale of goods and services at various stages of the supply chain.
   • Businesses are required to be registered for sales tax with the FBR.

4. Withholding Tax:

   • Certain payments, such as salaries, dividends, and contractor payments, are subject to withholding tax.

5. Advance Tax:

   • Certain businesses and individuals are required to pay advance tax based on their estimated income.

6. Federal Excise Duty (FED):

   • FED is levied on the production and consumption of goods such as cigarettes, beverages, and services.

7. Customs Duties:

   • Customs duties are imposed on the import and export of goods.

8. Tax Returns:

   • Individuals and businesses are required to file annual tax returns with the FBR.

Compliance and Regulations:

1. Tax Compliance:

   • Businesses and individuals must comply with tax laws and regulations to avoid penalties and legal consequences.

2. Anti-Money Laundering (AML) and Know Your Customer (KYC):

   • Banks and financial institutions are required to adhere to AML and KYC regulations to prevent money laundering and terrorist financing.

3. Financial Reporting:

   • Companies listed on the stock exchange and certain others are required to adhere to financial reporting standards set by regulatory authorities.

4. Auditing and Accountability:

   • Companies are subject to auditing requirements to ensure transparency and accountability.

5. Central Directorate of National Savings (CDNS):

   • CDNS operates various savings schemes and National Prize Bonds.