Day: May 13, 2019

Pakistan Customs launches swift consignment clearance system to improve ease of doing business

KARACHI: Pakistan Customs on Monday launched the swift consignment clearance software for improving ease of doing business and trading across the border indices of the country.

The system namely ‘WeBOC Global’ was inaugurated by Member Customs Dr Jawwad Uwais Agha at Custom house, Karachi.

He introduced the key features of the newly developed ICT system which was attended by a large number of the senior officers of Pakistan Custom and members of the WeBOC-Glo Project team.

The new version of Customs clearance system was deployed at early in the morning May 13, 2019 which has immediately replaced the previous version of WeBOC clearance system.

This will be a modern and technologically advanced version of WeBOC which is an end to end automated online goods clearance system home grown by Pakistan Customs in 2011.

With the introduction of new WeBOC system, the Custom clearance system of Pakistan will enter into the club of modern, upgraded and technologically advanced Custom clearance system of the world, the Member said.

The WeBOC-Glo in addition to new modules and functionalities will be plugging the deficiencies of earlier clearance system pointed out during the course of time in internal reviews and ICT Gap Analysis by the World Bank.

Components of Release 1.0 of the WeBOC-Glo were introduced by Iftikhar Ahmad, Collector/Convener of the project which included 13 modules and functionalities.

The major modules included:

(1) the Development of Electronic Data Interchange (EDI) with Terminal Operators for Export LCL Cargo, which will reduce dwell time at ports

(2) the Quota Management of Bulk Export Cargo, which will facilitate auto debiting of assigned quota,

(3) the establishment of IT interface with Ministry of Foreign Affairs for automation of Exemption Certificates,

(4) the availability of WeBOC Glo on Chrome and Edge to provide convenience to users,

(5) the enhanced Security Features, to safeguard the User IDs and relevant data of importers /exporters,

(6) the unified Screens for MIS Officers, to ensure speedy processing,

(7) the search engine for TARIFF and relevant SROs to empower users in Tariff and import/export policy information for correct filling and assessment of GDs,

(8) the update on Containers Status, to allow traders the facility to keep track of containers,

(9) Improved User Interface, aimed at making the system more user friendly and less time consuming and

(10) the Glo Insight which strengthens the statistical Scrutiny and monitoring of Customs transactions through business intelligence and data analysis tools for informed decisions making.

In addition to above, the WeBOC-Glo will be instrumental in closure of old Customs clearance system by automating areas that had remained outside its scope so far.

(1) the Export Processing Zone, whose import and export clearance along with the role and functions of EPZA have been automated for the first time,

(2) the GD Filing Without NTN, which will facilitate individual importers, Small and Medium Enterprises (SME) promoting e-Commerce in Pakistan,

(3) the Exceptional GD Filing, which caters to all scenarios where auto clearance were held up due to peculiar taxation regimes on items or specific orders of superior courts.

The team has been further instructed by Dr Agha to plan launch of Release-2of WeBOC Glo by the first week of July, 2019.

The Release-2 will include further important modules like DTRE, Bulk Exports and Exports through Courier.

With the development of these modules all the processes related to export will be fully automated which will definitely facilitate export sectors.

Release-2 will also include E-Auction Module, for auction of confiscated goods in line with modern concepts of Auction.

Oil imports contribute the major share in Imports Bill. All the processes like Import, storage, transportation and transit of Oil will also be covered in Release-2 Similarly PCA Entity based Audit module will also be part of it, which will dramatically enhance money trial analysis and be handy in detection of money laundering.

Initial work has already been done on these modules and they are under different stages of development.

Some less important modules will be launched in Release-3 by Mid September which will complete automation of all the Customs processes under WeBOC-Glo.

Earlier, Dr Jawwad Agha conceived the idea of up gradation and functionally advanced new Customs system and had put in place a two tier setup, the WeBOC-Glo Domain team and Oversight and Approval Team, in December, 2018.

In view of highly technical nature of the task officers having vast professional experience and well grounded in automated work environment were grouped together.

The team lead by Collector Dr. Iftikhar Ahmad (project team leader) included: Additional Collectors Shafqat Niazi, Sanaullah Abro, Ms Mona Mehfooz, Ali Zaman Gardezi and Deputy Collector Ms Nausheen Riaz Khan.

The project team leader said that packed and strict timeline was given to undertake the Businesses Process Re-Engineering (BPR), development of new modules and functionalities of the WeBOC Glo.

He added that the project team had to put in long hours on weekend, over and above their regular work assignments, to meet the deadlines, while Agha continuously monitored the progress and provided his full support to project team. Within short time of four months, WeBOC-Glo project team under guidance of oversight and Approval team, consisting of senior officers of Customs succeeded in accomplishing the task of development of 13 different modules and functionalities of new version.

User Acceptance Tests (UATs) with relevant stakeholders have been completed too. The PRAL’s Business Analysis and software Development Units provided able resource support and remained instrumental in the achievement.

With the launch of the WeBOC-Glo, the Customs department moves further ahead as the leading public sector organization mag use of modern technology for hassle free public service delivery.

The system ensures transparency, efficiency, professionalism and further reduces the interaction with taxpayer besides providing tech ability for future integration with artificial intelligence for RMS analysis.

May 13, 2019
OGDCL discovers huge deposits of gas in Sindh

KARACHI: Oil and Gad Development Company Limited (OGDCL) has discovered huge amount of gas at exploratory well Mangrio 01, District Tando Muhammad Khan, Sindh Province.

In a statement on Monday, the company said that the structure of Mangrio Well 01 was drilled and tested using OGDCL’s in house expertise.

The well was drilled down to the depth of 2676 meters. The well has tested 10.44 MMSCFD gas, 120 BPD condensate through choke size 32/64” at Wellhead flowing pressure 2085 psi from lower Guru B-Sand.

The discovery of Mangrio Well is the result of aggressive exploratory strategy adopted by the company.

“It has opened a new avenue and would add to the hydrocarbon reserves base of the OGDCL and of the country,” it added.

May 13, 2019
Secured transactions registry established in SECP

In a significant development aimed at improving access to credit for small businesses and the agriculture sector, the Securities and Exchange Commission of Pakistan (SECP) has officially established the Secured Transaction Registry (STR). This registry will record charges and security interests created by entities on their movable assets, facilitating easier and more secure access to loans.
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May 13, 2019
Stock market plunges by 816 points on IMF loan agreement

KARACHI: The stock exchange plunged by 816 points on Monday on report of finalization of loan program with IMF.

The benchmark KSE-100 index closed at 33,900 points as against 34,717 points showing a decline of 816 points.

Analysts at Arif Habib Limited said that index saw a major draw down of 937 points, post Pakistan entering IMF program.

The sessions commenced on a positive note and market at first increased by 511 points before plunging ~1400 points.

Last half hour of trading showed some buying activity that resulted in an unadjusted closing of -784 points.

Stocks, all and sundry, became target of Investors’ wrath. Besides conclusion of IMF program, the market was also faced with MSCI Review that had negative implications for stocks that form part of MSCI EM Index.

Several stocks hit lower circuit, important among those included SSGC, MLCF, PIOC, DGKC, GHNI etc. Banking sector remained unscathed in relative terms and scrips like MCB, HBL, UBL, MEBL traded in green zone.

Sectors contributing to the performance include E&P (-159 points), Fertilizer (-157 points), Banks (-93 points), O&GMCs (-69 points) and Cement (-68 points).

Volumes increased significantly from 39.3 million shares to 121.2 million shares (+209 percent DoD). Average traded value also increased by 202 percent DoD to reach US$ 37.5 million as against US$ 12.4 million.

Stocks that contributed significantly to the volumes include KEL, MLCF, BOP, PIBTL, and UNITY, which formed 29 percent of total volumes.

Stocks that contributed positively include MCB (+18 points), HUBC (+12 points), NATF (+3 points), SYS (+3 points) and SRVI (+1pt). Stocks that contributed negatively include FFC (-73 points), OGDC (-51 points), POL (-47 points), ENGRO (-36 points) and PPL (-36 points).

May 13, 2019
Rupee ends unchanged in interbank forex market

The Pakistani Rupee (PKR) remained stable against the US Dollar (USD) in the interbank market on Monday, closing at Rs141.40, the same level as last Friday, despite swirling rumors about a potential downturn following discussions between Pakistani authorities and the International Monetary Fund (IMF) regarding a new loan program.
(more…)

May 13, 2019
KTBA suggests full fledged VAT, reduction in sales tax rate to 10pc

KARACHI: Karachi Tax Bar Association (KTBA) has suggested the tax authorities for introduction of full fledged value-added tax (VAT) and reduction of sale tax rate up to 10 percent in order to discourage under invoicing, corruption and smuggling.

The KTBA recently organized pre-budget seminar to formulate tax proposals for budget 2019/2020. Saud-ul-Hassan, Director Tax at EY Ford Rhodes presented issues pertaining to sales tax.

He said that the VAT system was adopted for documentation of economy. However, presently the Sales Tax Act, 1990 is a blend of numerous, included:

— exemption; zero-rating, subsidized/reduced rates;

— fixed tax regimes, extra tax, further tax, value addition tax;

— withholding tax provisions;

— various restrictions on claiming input tax; and

— various special regimes.

He recommended that all the distortions in VAT system should be removed and full fledged uniformed VAT system should be adopted.

“This will provide a level playing field for all registered persons and restore their confidence,” he said and added that it would ensure proper documentation of economy and a genuine increase in the tax to GDP ratio.

Highlighting the higher sales tax rate at 17 percent, he said that it was coupled with various increasing conditions such as further tax, extra tax, minimum VAT etc.

Further restrictions on claim of input tax, the sales tax cost (effective rate) is further enhanced. “Such outlook on a tax compliant person promotes tax evasion in the masses,” he added.

It is suggested that the tax rate may be brought down to 15 percent and gradually up to 10 percent. “The reduced rate will encourage the unregistered persons to get themselves registered.”

“It will also result in broadening of tax base and documentation of economy and discourage under invoicing, corruption and smuggling,” he added.

Pointing out the issue of extra tax levied on certain goods, which disallowed input tax, he said recommended that in order to reduce the cost of doing business the extra tax should not be levied on goods sold to manufacturers for their own use.

He said that through the Sales Tax General Order 27 of 2014, the FBR had exempted the supply of parts and accessories to the automobile manufacturers from the levy of extra tax, however, other manufacturers have not been granted similar exemption.

May 13, 2019