KARACHI: The Pakistani Rupee appreciated modestly against the US dollar on Friday, gaining three paisas to close at Rs154.20 in the interbank foreign exchange market.
(more…)Month: February 2020
-
Bearer Prize Bonds of Rs40,000 not to be encashed after March 31
KARACHI: State Bank of Pakistan (SBP) has said that people can encashed Rs40,000 bearer prize bonds on or before March 31, 2020 and after that the financial instruments cannot be redeemed.
The central bank issued frequently asked questions (FAQs) related to the withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation to facilitate general public and investors.
Q: Have National Prize Bonds (Bearer) of Rs.40,000/- denomination been withdrawn from circulation?
A: Yes. The Finance Division (Budget Wing), Government of Pakistan vide Notification No. F.16(3)GSI/2014-1072 dated June 24, 2019 has restricted the sale of National Prize Bonds (Bearer) of Rs.40,000/-denomination after June 24, 2019.
Q: Is there a time limit for conversion/encashment of my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: Yes. As per aforementioned Notification from the Government of Pakistan, National Prize Bonds (Bearer) of Rs. 40,000/- denomination can be encashed/redeemed upto March 31, 2020, after which they would not be encashed / redeemed.
Q: How can I encash/redeem my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be encashed using the following options:
1. Conversion to Premium Prize Bonds (Registered)
2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC)
3. Encashment through Bank Account
Q: How can I convert my National Prize Bonds (Bearer) of Rs.40,000/- denomination to Premium Prize Bonds (Registered)?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be converted to Premium Prize Bonds (Registered) through the 16 field offices of SBP Banking Services Corporation, and six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited. The documentary requirements for the purchase of Premium Prize Bonds (Registered) are available at: http://www.sbp.org.pk/sbp_bsc/PrizeBond/premium/FAQs.pdf
Q: How can I replace my National Prize Bonds (Bearer) of Rs.40,000/- denomination with Special Savings Certificates (SSC) / Defence Saving Certificates (DSC)?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, Authorized Commercial banks and National Savings Centers.
Q: How can I encash my National Prize Bonds (Bearer) of Rs.40,000/- denomination through bank account?
A: On submission of request on the prescribed application form (details at Q7 below) at 16 field offices of SBP Banking Services Corporation or Commercial Banks, the proceeds of encashment shall be credited to the bond-holder’s bank account.
Q: What information/documents are required to convert/redeem/encash my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: Request for conversion/encashment of Rs.40,000/- National Prize Bonds (Bearer) shall be submitted on prescribed application form which is available at the following weblink:
http://www.sbp.org.pk/sbp_bsc/BSC/CMD/Circulars/2019/C1-Annex-A-Application-Form.pdf.
The requisite information/documents required for each encashment option is as follows:
1. Conversion to Premium Prize Bonds (Registered): Legible copy of valid CNIC / SNIC, Account
Maintenance Certificate (not older than one month from application date), Valid IBAN number
2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC): Legible Withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation copy of valid CNIC / SNIC
3. Encashment through Bank Account: Valid IBAN number
Q: Can I receive cash against my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: No. The National Prize Bonds (Bearer) of Rs.40,000/- denomination can only be encashed using the following options:
1. Conversion to Premium Prize Bonds (Registered)
2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC)
3. Encashment through Bank Account
Q: Is there any tax / deduction against the conversion/encashment of National Prize Bonds (Bearer) of Rs.40,000/- denomination ?
A: No. There is no tax / deduction for any of the approved conversion/encashment options.
Q: For encashment of National Prize Bonds (Bearer) of Rs.40,000/- denomination through bank account, can I visit any Commercial Bank, or do I have to visit the Commercial Bank in which my account is maintained ?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination bonds can be encashed at any branch of the Commercial Bank in which bondholder maintains an “individual” account.
Q: What is the timeline for credit of Face Value into my bank account?
A: The Face Value shall be credited to the bank account on the same day, subject to provision of required information.
Q: National Prize Bonds (Bearer) of Rs.40,000/- denomination are being encashed against cash at a discount rate. Is it allowed?
A: As per Rule 3(2) of Prize Bonds Rules 1999, only Offices of the State Bank of Pakistan Banking Services Corporation, Commercial Banks authorized in this behalf by SBP, and National Savings Centers are authorized to carry out business of National Prize Bonds (Bearer). Further, the Rule 3(3) of the said Rules restricts any other office, body or institution other than the office, body or institutions specified in Rule 3(2) of Prize Bonds Rules, 1999 from conducting any business relating to National Prize Bonds (Bearer).
The SBP said that the bondholders receive full amount (without any deduction) for any of the approved conversion/encashment options.
Q: Will there be any further prize money draws for National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: No. The last draw (78th draw) for Rs.40,000/- denomination National Prize Bonds (Bearer) was conducted on June 3, 2019. As per the Notification from Finance Division (Budget Wing) Government of Pakistan, no further prize money draws shall be conducted for National Prize Bonds (Bearer) of Rs.40,000/- denomination.
Q: I have a prize-winning National Prize Bond (Bearer) of Rs.40,000/- denomination. What is the time limit for claiming my prize ?
A: Under the governing rules, the prize money may be claimed by the holder of the prize bond at any time within a period of six years from the date of draw.
Q: Can I encash damaged National Prize Bond (Bearer) of Rs.40,000/- denomination?
A: Yes. Damaged National Prize Bonds (Bearer) of Rs.40,000/- denomination can be encashed at the 16 field offices of SBP Banking Services Corporation. However, it is pertinent to note that all such claims shall Withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation be decided by the authorized officials in light of relevant regulations.
-
Audit cases should be assigned to tax officials on basis of skills
KARACHI: Tax managers have suggested that audit cases should be assigned to tax officials on the basis of skills and experience.
“Cases should be assigned on the basis of skill and experience of the officers as it reduces no change monitoring and enhance productivity,” according to an official document on monitoring of withholding taxes.
If a pre-monitoring analysis is conducted by the officers, they will be in a position to ascertain the true potential of specific cases, sectors and their overall impact on the revenue generating activities of the department.
For this purpose, they should examine:
— nature and extent of business entities;
— past compliance behaviour, tax fraud activities;
— group activities as to compliance of tax laws;
— results of previous monitoring and tax audits by the Income Tax and the Sales Tax departments;
— overall declarations and amended Returns, etc, penalties, refunds and corporate status can give a good guidance for selection or otherwise of a case for detailed monitoring of withholding taxes;
— Past information about surveys and special/sectoral studies can also be helpful;
— Taxpayer’s complete particulars are important for follow-up;
For the sake of transparency, it is always good for the tax department to state the following;
— Scope of the monitoring process;
— Process to be followed by the departmental officers for monitoring of a specific case;
— The taxpayers should be informed as to how they will be contacted;
— How the case is to be discussed and who will represent the department;
— How the record will be examined;
— How to convey the findings of the examination/discussions on the cases to the taxpayers;
— Mechanism for submitting replies by the taxpayers;
— Writing the reports about monitoring; and
— To determine future course of action under the relevant provisions of law in the light of the findings of the report, wherever requiring further action.
-
Regulatory duty on wheat import withdrawn; SRO issued
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued notification to withdraw regulatory duty on import of wheat and other wheat products.
The Revenue Division issued SRO 119(I)/2020 dated February 19, 2020 to amend SRO 680(I)/2019 to withdraw regulatory duty on import of wheat.
The government imposed 60 percent regulatory duty on import of wheat, which has been withdrawn through the latest SRO.
-
Foreign exchange reserves up by $12 million
KARACHI: The liquid foreign exchange reserves of the country increased by $12 million to $18.747 billion by week ended February 14, 2020, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves were at $18.735 billion by week ended February 7, 2020.
The official foreign exchange reserves of the SBP increased by $74 million to $12.505 billion by week ended February 14, 2020 as against $12.431 billion a week ago.
The foreign exchange reserves held by commercial banks however fell by $62 million to $6.242 billion by week ended February 14, 2020 as against $6.304 billion a week ago.
-
Rupee gains three paisas against dollar on shrinking current account deficit
KARACHI: The Pak Rupee gained three paisas on Thursday against dollar owing to shrinking current account deficit.
The rupee ended Rs154.23 to the dollar from previous day’s closing of Rs154.26 in interbank foreign exchange market.
Currency dealers said that market sentiments were high owing to narrowing current account deficit of the country.
Pakistan’s current account deficit narrowed by 72 percent during first seven months (July – January) of 2019/2020 owing to inflows of workers’ remittances and decline in import bill.
The current account deficit reduced to $2.65 billion during the first seven months of current fiscal year as compared with $9.48 billion in the corresponding months of the last fiscal year, according to Balance of Payment (BoP) data released by State Bank of Pakistan (SBP) a day earlier.
The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.10/Rs154.40, the same previous day’s closing, in cash ready market.
-
Stock market ends down by 93 points on selling pressure
KARACHI: The stock market fell by 93 points on Thursday owing to selling pressure during trading sessions. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,481 points as against 40,575 points showing a decline of 93 points.
Analysts at Arif Habib Limited said that the market traded in a narrow range between +123 points as against -129 points and closed the session with -93 points.
Although crude oil price went up in the international market, listed Oil and Gas chain did not respond to it and faced selling pressure.
HBL dropped significantly over the day after news relating to its exposure in UAE broke whereby UAE Central Bank hinted probing the matter.
Other than E&P, Refineries and OMCs one the downside, Cement and Steel sectors also went down. Cement sector led the volumes with 17 million shares, followed by Banks (15.3 million) and O&GMCs (10.5 million).
Among scrips, HASCOL topped with 8.8 million shares, followed by BOP (8.7 million) and DGKC (8.1 million).
Sectors contributing to the performance include E&P (-40 points), O&GMCs (-26 points), Cement (-25 points), Fertilizer (-19 points), Chemical (+17 points).
Volumes dipped again from 142.9 million shares to 112 million shares (-22 percent DoD). Average traded value also declined by 28 percent to reach US$ 30.6 million as against US$ 42.2 million.
Stocks that contributed significantly to the volumes include HASCOL, BOP, DGKC, UNITY and MLCF, which formed 35 percent of total volumes.
Stocks that contributed positively include UBL (+34 points), COLG (+12 points), BAHL (+12 points), PKGS (+12 points) and IGIHL (+10 points). Stocks that contributed negatively include HBL (-45 points), OGDC (-17 points), MCB (-15 points), PPL (-13 points), and ENGRO (-12 points).
-
Meezan Bank’s Shariah Board approves guidelines for digital mobile accounts
KARACHI: Meezan Bank’s Shariah Supervisory Board has approved guidelines for digital Mudarabah-based mobile account to support financial inclusion in Pakistan.
Shariah Supervisory Board approved guidelines in its recently concluded, a statement said on Thursday.
The meeting was chaired by Dr. Muhammad Imran Ashraf Usmani and attended by Sheikh Esam Mohamed Ishaq, Mufti Muhammad Naveed Alam, Ahmed Ali Siddiqui and other key officials.
Irfan Siddiqui – President & CEO, Meezan Bank and Ariful Islam – Deputy CEO, Meezan Bank were also present in the meeting which was held at Movenpick Hotel, Karachi.
The Shariah Supervisory Board showed its overall satisfaction on the Shariah-compliance environment and operations of the Bank.
Several key issues were discussed in the meeting related to modern trends in Islamic banking. Guidelines for a digital mobile account – Meezan Asaan Mobile Account based on Mudarabah was approved under which a customer can open his digital mobile account at Meezan Bank without the hassle of visiting any physical branch.
On maintaining balance in this account, the customer would be entitled to receive halal profit based on actual returns of Shariah-compliant financings on monthly basis.
Furthermore, the customer can use this account to deposit and withdraw funds digitally or from any Meezan Bank branch all over Pakistan.
The Shariah Supervisory Board also gave important guidelines related to housing finance facility to be offered by the Bank in collaboration with Pakistan Mortgage Refinance Company which is low cost housing finance solution for the lower and middle income families.
Relevant guidelines related to Islamic Fintech solution for supply chain financing were also issued by the Shariah Supervisory Board to make Shariah-compliant financing solutions accessible to Small and Medium Enterprises in Pakistan.
Earlier on the same day, a meeting between Shariah Supervisory Board and Board of Directors (BoDs) of Meezan Bank was also held as part of the annual meeting plan of the Shariah Supervisory Board and BoD.
In this meeting Dr. Muhammad Imran Ashraf Usmani conducted a learning session for the Board and also apprised them regarding the key decisions taken by the Shariah Supervisory Board during the year 2019.
-
GlaxoSmithKline Pakistan appoints Erum Shakir as new CEO
KARACHI: Aziz ul Huq, Chief Executive Officer of GlaxoSmithKline Pakistan Limited has resigned for personal reasons and the board of directors of the company appointed Ms. Erum Shakir Rahim as new CEO of the company from March 01, 2020.
In a notice to Pakistan Stock Exchange (PSX) on Thursday, the company said that Aziz ul Huq, CEO, GlaxoSmithKline Pakistan Limited had resigned to join his family in Australia.
The board of directors has accepted his resignation with effect from March 01, 2020 and extended their best wishes to him in his future endeavors.
“The board of directors has also appointed Ms. Erum Shakir Rahim, General Manager, GSK Indonesia Pharma Emerging Markets as new Chief Executive Officer of GlaxoSmithKline Pakistan Limited with effect from March 01, 2020.”
The company said that Ms. Erum Shakir Rahim had a strong track record of success in multiple GM roles within GSK in Malaysia (Brunei), Bangladesh (Developing Countries Asia cluster) and Indonesia.
In her role as GM Indonesia Erum led the team to transform the business and deliver strong top line growth 12 percent, OP growth of 25 percent, increase in market share, rank and EI of 106. With a high people engagement score of 87 percent.
Before taking on general management roles outside Pakistan, Erum worked as director marketing Sales and Business Development GSK Pakistan, Iran and Afghanistan. Where she did multiple commercial and strategic roles of increasing responsibility across pharma, vaccines and consumers. These included roles in marketing, sales, comms, GA and business development.
She contributed to GSK Pakistan’s market leading position in the country with 12 percent market share and eight GSK brands in the top 20 by launching 20 new assets across several therapy areas as well as leading critical business development initiatives. She is also on the board of directors in GSK Pakistan and Bangladesh in her previous roles.
-
Income tax return filing hits new peak of 2.8 million
ISLAMABAD: The income tax return filing of tax year 2018 has reached to a new peak at 2.8 million by February 16, 2020, according to latest Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR).
(more…)