ISLAMABAD: The government on Thursday announced a significant reduction in the prices of petroleum products, with cuts reaching up to 39 percent. This move aims to pass on the benefits of the massive decline in international oil prices to the public.
(more…)Month: April 2020
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FBR notifies transfers of 11 senior customs officers of BS-20-21
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday announced transfers of senior customs officers of BS-20 and BS-21 with immediate effect and until further orders.
Following officers of Pakistan Customs Service (PCS) have been transferred:
01. Muhammad Zahid (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Transit Trade, Karachi from the post of Director General, Directorate General of Intelligence & Investigation, FBR, Islamabad.
02. Abdul Rashid Sheikh (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Intelligence & Investigation, FBR, Islamabad from the post of Director General, Directorate General of Post Clearance Audit & Internal Audit, Karachi.
03. Sarfraz Ahmad Warraich (Pakistan Customs Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Director General, Directorate General of Transit Trade, Karachi.
04. Ms. Zeba Hai Azhar (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Training & Research (Customs), Karachi from the post of Chief Collector, Customs Enforcement (Central), Lahore.
05. Wasif Ali Memon (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Post Clearance Audit & Internal Audit, Karachi from the post of Chief Collector, Customs Enforcement (South), Karachi. The officer is also assigned the additional charge of the post of Director General, Risk Management, Karachi till the posting of a regular incumbent.
06. Abdul Basit Chaudhry (Pakistan Customs Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Director General, Directorate General of Input Output Coefficient Organization, Karachi.
07. Dr. Zulfikar Ali Chaudhary (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Customs Valuation, Karachi from the post of Chief Collector, Customs, Balochistan, Quetta.
08. Faiz Ahmad (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector Customs Enforcement (Central), Lahore from the post of Director General, Directorate General of Training & Research (Customs), Karachi.
09. Dr. Saifuddin Junejo (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector, Customs Enforcement (South), Karachi from the post of Collector, Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi.
10. Dr Samina Taslim Zehra (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Input Output Coefficient Organization, Karachi from the post of Director, Directorate of Input Output Coefficient Organization (South), Karachi.
11. Muhammad Aamer (Pakistan Customs Service/BS-20) has been transferred and posted as Chief Collector (OPS), Customs, Balochistan, Quetta has been transferred and posted as Chief, Federal Board of Revenue (Hq), Islamabad.
The FBR said that the Officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.
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FBR transfers 17 senior IRS officers of BS-20-21
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday transferred and posted 17 officers of BS-20 and BS-21 of Inland Revenue Service (IRS) with immediate effect until further orders.
Following officers have been transferred and posted:
01. Dr. Ashfaq Ahmad Tunio (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Large Taxpayers Unit, Lahore from the post of Member, Federal Board of Revenue (Hq), Islamabad.
02. Ms. Seema Shakil (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad (Stationed at Karachi) from the post of Member, (IR-Operations) Federal Board of Revenue (Hq), Islamabad.
03. Dr. Faiz Illahi Memon (Inland Revenue Service/BS-21) has been transferred and posted as Member, (Admn) Federal Board of Revenue (Hq), Islamabad from the post of Chief Commissioner, Large Taxpayers Unit, Karachi.
04. Syed Nadeem Hussain Rizvi (Inland Revenue Service/BS-21) has been transferred and posted as Member, (IR-Operations) Federal Board of Revenue (Hq), Islamabad from the post of Member, (TPA) Federal Board of Revenue (Hq), Islamabad.
05. Asim Majid Khan (Inland Revenue Service/BS-21) has been transferred and posted as Director General, (Retail) Federal Board of Revenue (Hq), Islamabad from the post of Chief Commissioner, Large Taxpayers Unit, Lahore. The officer is also assigned the additional charge of the post of Director General (WHT), FBR (HQ), Islamabad till the posting of a regular incumbent.
06. Dr. Lubna Ayub (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad (Stationed at Karachi) from the post of Chief Commissioner, Regional Tax Office, Hyderabad.
07. Abdul Hameed Memon (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Large Taxpayers Unit-II, Karachi from the post of Director General, (Retail) Federal Board of Revenue (Hq), Islamabad.
08. Sajidullah Siddiqui (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Corporate Regional Tax Office, Karachi from the post of Commissioner, Inland Revenue (Appeals-II), Karachi.
09. Badruddin Ahmad Quraishi (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Large Taxpayers Unit, Karachi from the post of Chief Commissioner, Regional Tax Office II, Karachi.
10. Bakhtiar Muhammad (Inland Revenue Service/BS-21) has been transferred and posted as Member, (FATE) Federal Board of Revenue (Hq), Islamabad from the post of Member , Federal Board of Revenue (Hq), Islamabad with additional charge of Chief (IR-Operations-I), FBR (HQ), Islamabad.
11. Mohammad Qasim Samad Khan (Inland Revenue Service/BS-21) has been transferred and posted as Member, (TPA) Federal Board of Revenue (Hq), Islamabad from the post of Member, Federal Board of Revenue (Hq), Islamabad.
12. Ms. Ambreen Iftikhar (Inland Revenue Service/BS-21) has been transferred and posted as Member, (HRM) Federal Board of Revenue (Hq), Islamabad from the post of Member, Federal Board of Revenue (Hq), Islamabad. The officer shall assume charge after superannuation of Mian Saeed Iqbal (IRS/BS-22) w.e.f 12.05.2020.
13. Dr. Aftab Imam (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Quetta from the post of Chief Commissioner, Corporate Regional Tax Office, Karachi.
14. Dr. Tauqeer Ahmad Memon (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Hyderabad from the post of Chief Commissioner, Regional Tax Office, Sukkur.
15. Shahid Iqbal Baloch (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad (Stationed at Karachi) from the post of Chief Commissioner-IR, Large Taxpayers Unit-II, Karachi.
16. Syed Syedain Raza Zaidi (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue (OPS) Regional Tax Office II, Karachi from the post of Commissioner, Inland Revenue (Appeals-III), Karachi.
17. Mohammad Farooq Azam Memon (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Sukkur from the post of Commissioner, Inland Revenue (Appeals), Hyderabad.
The Officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.
All above listed officers are requested to Relinquish/Assume charge, using online HRMS facility made available to FBR or by using their IJP logins.
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Share market climbs up by 953 points on rate cut hopes
KARACHI: The share market made sharp gain of 953 points on Thursday owing to expected rate cut and reports of ease in lockdown.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,112 points as against 33,159 points showing an increase of 953 points.
Analysts at Arif Habib Limited said that just before the long weekend, the market went north today with a jump of 1020 points during the session, closing +953 points, courtesy of rising crude oil prices, expectation of rate cut and relaxation in lockdown.
Activity was observed across the board, with major contribution from oil and gas stocks i.e. E&P, OMCs, with OGDC, PPL and POL hitting upper circuits and realizing high volume trades at that level.
Banking sector stocks remained relatively muted, whereas Cement, Fertilizer and Steel sectors made considerable stride forward.
Cement sector topped the chart with 53.6 million shares, followed by O&GMCs (45 million) and Cable (28.1 million).
Among scrips, HASCOL ranked first with 37.6 million shares, followed by PAEL (26.9 million) and MLCF (25.8 million).
Sectors contributing to the performance include E&P (+308 points), Banks (+137 points), Power (+94 points), Fertilizer (+87 points) and O&GMCs (+84 points).
Volumes increased from 140.5 million shares to 291.5 million shares (+107 percent DoD). Average traded value also increased by 61 percent to reach US$ 76.7 million as against US$ 47.6 million.
Stocks that contributed significantly to the volumes include HASCOL, PAEL, MLCF, PPL and UNITY, which formed 42 percent of total volumes.
Stocks that contributed positively to the index include OGDC (+105 points), PPL (+93 points), HUBC (+82 points), POL (+64 points) and MCB (+50 points). Stocks that contributed negatively include PAKT (-12 points), DAWH (-11 points), PSEL (-9 points), SYS (-3 points), and PMPK (-2 points).
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Rupee makes significant gain of Rs1.44 against dollar
KARACHI: The Pak Rupee gained Rs1.44 against dollar on Thursday owing to lower demand for import payments, dealers said.
The rupee ended Rs160.17 to the dollar from previous day’s closing of Rs161.61 in interbank foreign exchange market.
The currency dealers said that the rupee was gaining over lower oil prices and reduced non-oil imports.
Currency experts said that the statement of Dr. Hafeez Shaikh, Special Advisor to Prime Minister on Finance and Revenue, about further reducing the oil prices for next month had also improved the market sentiments.
They said that local currency would gain in coming trading days due to fall in international oil prices and improved external accounts.
They said that that improved foreign direct investment and shrinking current account deficit helped the local currency to make gain.
The inflow of Foreign Direct Investment (FDI) into Pakistan has witnessed sharp growth of 137 percent during first nine months (July – March) 2019-2020.
The FDI increased to $2.15 billion during first nine months of current fiscal year as compared with $905 million in the corresponding period of the last fiscal year.
Current account deficit (CAD) has contracted by 73 percent during first nine months (July – March) 2019/2020 due to significant decline in import bill.
The current account deficit fell to $2.77 billion during first nine months of current fiscal year as compared with $10.28 billion in the corresponding period of the last fiscal year.
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PIA gets permission for direct US flight operation
KARACHI: Pakistan International Airlines (PIA) has been allowed to conduct direct flight operation and airlift Pakistani nationals from the United State of America (USA).
The US Department of Transportation on Thursday issued special authorization to permit up to twelve round-trip or one-way planeload charter flights, carrying passengers and cargo, between a point or points outside the US and a point or points in the US.
The sources said that CEO PIA Arshad Malik formally requested the US authorities a week ago for the airlift of Pakistani passengers in the wake of COVID-19.
They said that it would be first time the PIA conducts direct US flight operation.
Due to restriction of direct US flights, the PIA planes have to get permission and clearance from EU countries.
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PSX proposes abolishing capital gains tax for two years
KARACHI: Pakistan Stock Exchange (PSX) has demanded eliminating Capital Gains Tax (CGT) for up to next two years in order to attract more foreign investment.
The PSX in its tax proposals for budget 2020/2021 suggested the Federal Board of Revenue (FBR) to eliminate / reduce CGT for next 24 months or at a minimum align rates of capital gains tax on disposal of securities with other regional exchanges and OECD countries of the world.
The PSX said that currently, carry forward of losses is only allowed up to a period of three years and that last year CGT collection was merely Rs1.3 billion. Moreover, with the falling market, tax collection will not be worthwhile at all.
“Therefore, it is suggested that CGT should be eliminated for next 12-24 months.”
This will be a big headline change, with no revenue impact, and will encourage new domestic and international investors to come into the market.
The PSX made following proposals related to CGT:
i. To eliminate CGT for next 12-24 months, if that is not possible then;
ii. Since the current rate of 15 percent is very high and that too is without any benefit of holding period, therefore it is proposed to reduce this rate in line with other regional and OECD countries such as Bahrain, Hong Kong, India, Malaysia, Mauritius, Qatar, UAE, New Zealand, Hungary, Norway etc. where there is no or very low capital gain tax as compared to Pakistan.
iii. when CGT was first introduced in the year 2011, to encourage and attract long term investment, the tax rate was:
Less than six months: 10 percent
More than six months but less than 12 months: 7.5 percent
More than one year: zero percent.
The PSX proposed rates at:
Holding period up to twelve months: 10 percent
Holding period more than twelve months: zero percent.
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SBP extends date for exchange companies providing information
KARACHI: State Bank of Pakistan (SBP) on Thursday extended the date for exchange companies to submit information of customers related to anti-money laundering (AML) and Counter Financing Terrorism (CFT).
The central bank amended the Foreign Exchange Circular No. 04 dated October 14, 2019 in this regard.
The SBP said that in terms of instructions given in Para 5 (a) & (b) of the subject framework, authorized dealers in foreign exchange are required, inter alia, to complete the Risk Profiling of Customers and develop their distinct trade related Risk Profile by April 30, 2020.
In view of the prevailing circumstances due to COVID-19 outbreak and representation from the banking industry, it has been decided to extend the aforementioned deadline up to September 30, 2020.
Through the previous notification the SBP stated that in order to strengthen trade related Anti Money Laundering/Combating Financing of Terrorism (AML/CFT) regime and restrict possible misuse of banking channel, a comprehensive framework on the subject has been developed and attached herewith.
Accordingly, Authorized Dealers (ADs) are advised to upgrade their systems and controls and bring policies and procedures in line with the requirements of the framework to ensure meticulous compliance with the provisions thereof with immediate effect except as otherwise provided in the framework
The provisions of this framework are in addition to and not a replacement of already issued instructions on the subject of ML/FT risks.
Therefore, the compliance of the same shall not absolve ADs from their legal and regulatory obligations under prevailing AML/CFT laws/rules and regulations or any other relevant law in force.
ADs are also advised to educate their clients about their obligation of ensuring (a) correct declaration of particulars on the prescribed forms, (b) utilization of foreign exchange for the exact purpose for which it is acquired by them and (c) repatriation of foreign exchange that represents the full export value of goods. In the event, it is found that material information required to be submitted on the prescribed forms has been omitted or suppressed, foreign exchange is misutilized by a client of an AD or export proceeds repatriated by a client does not represent the full export value of goods, SBP shall initiate penal action against such delinquent parties under relevant provisions of the Foreign Exchange Regulation Act, 1947 (FERA).
Further, the matter shall also be reported to relevant stakeholders for necessary action under the laws being administered by them.
Failure to comply with the instructions on the subject and the regulatory obligations of AML/CFT may attract action against ADs under the FERA and other relevant laws.
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Sindh exempts sales tax on Ehsaas Emergency cash transfer
KARACHI: Sindh Revenue Board (SRB) on Wednesday exempted sales tax on services to banking transfers made to Ehsaas Emergency Program.
In a notification, the SRB said that the Sindh government had exempted the sales tax on the amount of commission (tariff heading 9819.1300) paid by the banks to their branchless banking retailers in Sindh on account of disbursement of financial assistance under the Ehsaas Emergency Cash Transfer Program of the government of Pakistan, subject to the conditions that the amount on account of such commission or service fee is not deducted from the amount of the financial assistance so transferred to the beneficiary, receiving the financial assistance, is paid the full amount of the assistance transfer.
The SRB said that the exemption has been granted till 23:59 hours on June 30, 2020.
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One month free coverage to motor insurance policy holders
ISLAMABAD: Securities and Exchange Companies of Pakistan (SECP) on Wednesday directed insurance companies to allow one month free coverage to motor insurance policy holders.
The regulator in a press release said that in light of the outbreak of COVID-19 (Coronavirus) it has been advised non-life insurance companies to grant one month free of cost extension in insurance coverage to all motor insurance policyholders.
The ongoing lockdown situation across the country has resulted in a significant decline in traffic density. With intercity public transport almost at a significant halt and limited within the city commute, it can be inferred that the policyholder claims in relation to motor insurance policies, would also have significantly declined.
Taking into account the decline and/or the anticipated low claim ratio in motor business due to lockdown, insurance companies have been encouraged to take steps to facilitate and pass on the benefit of low claim ratio to motor insurance policyholders.
As the fight against COVID-19 pandemic continues, it becomes imperative that insurance industry show its commitment to serve its policyholders by providing maximum relief and facilitation in all operational aspects. SECP believes that such good gestures in these difficult times will further increase policyholder’s confidence in the insurance sector.