KARACHI: The stock market witnessed increase of 866 points on Thursday on rise in international oil prices and reports of further cut in policy rate.
(more…)Month: April 2020
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Rupee gains 57 paisas against dollar
The Pakistani Rupee gained significant ground against the US Dollar on Thursday, appreciating by 57 paisas, closing at Rs167.19 from the previous day’s rate of Rs167.76 in the interbank foreign exchange market.
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Engro Fertilizers sets up quarantine facility to prevent coronavirus spread
Engro Fertilizers has set up a 60-bed quarantine facility at its Technical Training College (TTC) in Daharki as part of its ongoing efforts to support the district authorities and local community amid the coronavirus outbreak, a statement from the company said on Thursday.
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Nausheen Amjad assumes as 27th FBR chairperson
ISLAMABAD: Ms. Nausheen Javaid Amjad, BS-22 officers of Inland Revenue Service (IRS) on Wednesday assumed the charge of 27th chairperson of Federal Board of Revenue (FBR).
A notification issued by the FBR, stated that in pursuance of Establishment Division’s Notification No. 34/1/2018-E-I, dated 08.04.2020, Ms. Nausheen Javaid Amjad, a BS-22 officer of Inland Revenue Service has relinquished the charge of the post of Member (Admn), Federal Board of Revenue (HQ), Islamabad w.e.f 08.04.2020 and assumed the charge of the post of Chairperson, Federal Board of Revenue (HQ), Islamabad on the same date.
Details of Chairperson, CBR/FBR:
1) Ms. Nausheen Javaid Amjad 08.04.2020 2) Syed Muhammmad Shabbar Zaidi 10.05.2019 08.04.2020 3) Mr. Mohammad Jehanzeb Khan 29.08.2018 10.05.2019 4) Ms. Rukhsana Yasmin 02.07.2018 29.08.2018 5) Mr. Tariq Mahmood Pasha 04.07.2017 02.07.2018 6) Dr. Muhamad Irshad 19.01.2017 30.06.2017 7) Mr. Nisar Muhammad Khan 17.11.2015 18.01.2017 8) Mr. Tariq Bajwa 02-07-2013 17.11.2015 9) Mr.Ansar Javed 10-04-2013 30-06-2013 10) Mr. Ali Arshad Hakeem 10-07-2012 09-04-2013 11) Mr. Mumtaz Haider Rizvi 21.01.2012 10-07-2012 12) Mr. Salman Siddique 24.12.2010 21.01.2012 13) Mr. Sohail Ahmad 18.05.2009 24.12.2010 14) Mr. Moinuddin Khan 02.01.1998 06.11.1998 15) Mr. Hafeezullah Ishaq 11.11.1996 02.01.1998 16) Mr. Shamim Ahmed 28.08.1996 11.11.1996 17) Mr. Alvi Abdul Rahim 13.07.1995 28.08.1996 18) Mr. Sajjad Hasan 24.07.1991 03.10.1991 19) Mr. Ahadullah Akmal 16.08.1990 24.07.1991 20) Mr. Ghulam Yazdani Khan 22.01.1989 11.08.1990 21) Syed Aitezazuddin Ahmed 20.08.1988 02.01.1989 22) Mr. I.A. Imtiazi 11.08.1985 20.08.1988 23) Mr. Fazlur Rahman Khan 14.12.1980 11.08.1985 24) Mr. N.M. Qureshi 12.11.1975 14.12.1980 25) Mr. M. Zulfiqar 01.10.1974 12.11.1975 26) Mr. Riaz Ahmad 17.11.1973 30.09.1974 27) Mr. M. Zulfiqar 11.10.1971 17.11.1973 -
Global trade may fall up to 32 percent on COVID-19 disruption: WTO
KARACHI: World trade is expected to fall by between 13 percent and 32 percent in 2020 as the COVID 19 pandemic disrupts normal economic activity and life around the world, said a statement issued by World Trade Organization (WTO) on Wednesday.
The wide range of possibilities for the predicted decline is explained by the unprecedented nature of this health crisis and the uncertainty around its precise economic impact.
But WTO economists believe the decline will likely exceed the trade slump brought on by the global financial crisis of 2008‑2009.
Estimates of the expected recovery in 2021 are equally uncertain, with outcomes depending largely on the duration of the outbreak and the effectiveness of the policy responses.
“This crisis is first and foremost a health crisis which has forced governments to take unprecedented measures to protect people’s lives,” WTO Director-General Roberto Azevêdo said.
“The unavoidable declines in trade and output will have painful consequences for households and businesses, on top of the human suffering caused by the disease itself.”
“The immediate goal is to bring the pandemic under control and mitigate the economic damage to people, companies and countries. But policymakers must start planning for the aftermath of the pandemic,” he said.
“These numbers are ugly – there is no getting around that. But a rapid, vigorous rebound is possible. Decisions taken now will determine the future shape of the recovery and global growth prospects. We need to lay the foundations for a strong, sustained and socially inclusive recovery. Trade will be an important ingredient here, along with fiscal and monetary policy. Keeping markets open and predictable, as well as fostering a more generally favourable business environment, will be critical to spur the renewed investment we will need. And if countries work together, we will see a much faster recovery than if each country acts alone.”
Trade was already slowing in 2019 before the virus struck, weighed down by trade tensions and slowing economic growth. World merchandise trade registered a slight decline for the year of ‑0.1 percent in volume terms after rising by 2.9 percent in the previous year. Meanwhile, the dollar value of world merchandise exports in 2019 fell by 3 percent to US$ 18.89 trillion.
In contrast, world commercial services trade increased in 2019, with exports in dollar terms rising by 2 percent to US$ 6.03 trillion. The pace of expansion was slower than in 2018, when services trade increased by 9 percent.
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Prolonged industry closure to be harmful: FPCCI
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, urged the authorities to evolve strategy of functioning business activities during lockdown to prevent spread of coronavirus.
FPCCI President Mian Anjum Nisar, while criticizing arrest of businessmen urged the relevant authorities to take serious notice of the situation.
He also urged to devise Standard Operating Procedures (SOPs) to the trade and industry for smooth functioning as the economy of Pakistan may not face prolonged closure of the industry that will be harmful for the entire nations.
He expressed serious concern over unfavorable behavior towards the trade and industry that are supporting the government to ensure economic sustainability in this crises where every segment of economy is suffering.
He said that legal/representative forums are available to complaint against violation by any member of the business community. On the other hand the entire trade and industry has assured to the government for economic progress despite various challenges due to prevailing condition under COVID-19.
However, such attitude discourages commercial activities to support the government policies and programs.
Mian Anjum Nisar President FPCCI seriously expressed his concern over the arrest/detention of a member of the business community and termed it a discouraging environment for businesses where the industry is facing lot of challenges to compete and complete exports order that Pakistan needs to continue to bring foreign exchange through exports.
He further told that the exporters are losing orders, nearly 70 percent export orders has been cancelled due to global environment and for completing remaining 30 percent we need to function smoothly adherence to health precautionary measures.
But under such circumstances where industry has to be closed, no lay off labors, no facility for shipments, cash flow, banking and market obligation, how all these requirements could be met out when the authorities and agencies creating such problems of harassment and arrest/ detention of industrialists.
He stated that at this time of global crises where most of the countries are losing trade and facing drastic decline in exports the government should follow policies that are favourable to industry and avoid from strict actions against trade and industry of the country.
Those are following precautionary, safety and security measures at their factories to protect the environment from spread of virus may be supported uninterrupted production activities.
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Karachi Chamber flays detaining industrialists
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has criticized arrest of industrialists especially textile mills owners for engagement in production activities during lockdown.
Agha Shahab, President, KCCI, expressed concerns over the arrest/ detention of owner a textile mill, stated that it was not a wise move to arrest anyone or raid industries but any violation of government’s order should be brought to KCCI’s and relevant industrial zone association’s notice so that the same could be amicably resolved through negotiations.
“The government should refrain from exacerbating their problems and finalize the Standard Operating Procedures (SOPs) at the earliest so that the industries could accordingly adopt precautionary measures,” President KCCI added in a statement issued.
While referring to Chief Minister Sindh’s recent meeting with representatives of the business and industrial community on April 4, 2020, President KCCI said that Chief Minister afterwards formed a committee which was tasked to outline the SOPs for industries but so far no response was received.
He stressed that export oriented industries should be allowed to operate on a condition that they will ensure compliance of precautionary measures including social distancing, use of masks, gloves and sanitizers to disinfect the coronavirus.
He hoped that the Sindh government would take serious notice of the situation and order the Committee to notify SOPs to industries at the earliest while the labor department should only be authorized to vigilantly supervise all the industrial activities.
The government will have to act really fast in this regard with a view to save the industries as prolonged closure of the industrial units is going to be really detrimental and disastrous for the entire economy, he added.
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Share market sheds 260 points amid selling pressure
KARACHI: The share market fell by 260 points on Wednesday owing to selling pressure seen during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 30,971 points as against 31,231 points showing a decline of 260 points.
Analysts at Arif Habib Limited said that overnight pressure on international crude prices bore impact on KSE100 as well. With OPEC+ meeting scheduled for tomorrow (PST 7:00 PM), followed by a G20 meeting on Friday, on the same subject, i.e. production cut and management of crude price, local E&P stocks didn’t fell as much as the fall was witnessed in crude prices.
Market traded uni-directional (negative) for the most part of the session with Oil & Gas chain trading red. On the other hand, cyclicals, which had positive sentiments yesterday on the back of partial resumption of activities (primarily in Punjab), today saw selling pressure.
Cement sector, as have been the case for the past several sessions, again topped the volumes with 42.1 million shares, followed by Vanaspati (28.8 million) and O&GMCs (28.4 million).
Among scrips, UNITY (got traction from issuance of SRO on withdrawal of additional custom duty) led the volumes with 28.8 million shares, followed by HASCOL (25.8 million) and PAEL (14.1 million).
Sectors contributing to the performance include Banks (-115 points), E&P (-45 points), Cement (-37 points), Tobacco (-36 points), Fertilizer (-21 points), Insurance (+23 points).
Volumes increased from 172.7 million shares to 181.0 million shares (+5 percent DoD). Average traded value, on the other hand, declined by 13 percent to reach US$ 35.1 million as against US$ 40.2 million.
Stocks that contributed significantly to the volumes include UNITY, HASCOL, PAEL, MLCF and PIOC, which formed 50 percent of total volumes.
Stocks that contributed positively to the index include MCB (+18 points), IGIHL (9 points), KOHC (+9 points), KAPCO (+8 points) and OGDC (+7 points). Stocks that contributed negatively include PAKT (-36 points), LUCK (-32 points), BAFL (-29 points), BAHL (-28 points), and POL (-23 points).
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Rupee recovers 14 paisas against dollar
KARACHI: The Pak Rupee recovered 14 paisas against dollar on Wednesday after witnessing significant decline a day earlier.
The rupee closed at Rs167.76 to the dollar from previous day’s closing of Rs167.90 in interbank foreign exchange market.
The local unit fell significantly a day earlier and lost 91 paisas against the greenback.
Currency experts said that the rupee was under massive pressure due to outflow of hot money during the past couple of month.
The outbreak of coronavirus jolted the financial markets across the globe, which also forced the investors to consolidate their funds.
A huge amount was also taken out by foreign investors from domestic debt market, which resulted pressure the local currency.
The experts said that the rupee likely to gain further in future owing to lower import payment demand after decline in international oil prices.
The import bill of the country has declined by 21 percent in March 2020 over the previous month owing to lockdown to contain coronavirus pandemic.
The import bill was at $3.3 billion in March 2020 as compared with $4.185 billion in February 2020, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.
Similarly, the pandemic also adversely affected the country’s exports. The exports fell by 15.56 percent to $1.8 billion in March 2020 as compared with $2.14 billion in February 2020.
The total import bill during July – March 2019/2020 fell by 14.42 percent to $38.81 billion as compared with $40.68 billion in the corresponding period of the last fiscal year.
However, the exports registered increase of 2.23 percent during first nine months of current fiscal year to $17.45 billion as compared with $17 billion in the corresponding months of the last fiscal year.
The trade deficit during first nine months contracted by 26.45 percent to $17.36 billion as compared with the deficit of $23.61 billion in the corresponding period of the last fiscal year.
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Punjab Tax Relief Package: Many sectors granted exemption till June 30
LAHORE: The government of Punjab has granted exemption from sales tax on services to many sectors in order to dilute effects of coronavirus.
The provincial government announced tax relief package to fight COVID-19 through a notification issued on April 02, 2020.
According to a notification issued by Punjab Revenue Authority (PRA) the tax exemption has been granted through amendments brought into the Second Schedule to the Punjab Sales Tax on Services Act, 2012.
The PRA said that zero percent without input tax adjustment has been allowed to hotels, motels and guest houses. However, this exemption has been granted to non-corporate, non-franchise and non-chain business. Meanwhile, 16 percent sales tax on service shall remained applicable for others.
The zero percent tax without input tax adjustment has also been allowed to:
Marriage halls and lawns (by whatever name called) including pandal and shamiana services.
Catering services (including all ancillary / allied services such as floral or other decoration, furnishing of space whether or not involving rental or equipment and accessories).
However, 16 percent sales tax on services shall applicable on clubs including race clubs and their membership services including services, facilities or advantages, for a subscription or any other amount to their member.
For life insurance and health insurance businesses, the PRA announced zero percent without input tax adjustment. While, sixteen percent of gross minimum paid shall be applicable for other insurance services.
Zero percent tax without input tax adjustment has been granted to services provided by digital platform. But the rate of 16 percent shall remain applicable for others.
The following services have been allowed zero percent sales tax on services without input tax adjustment under serial number of Second Schedule:
14. Construction services and services provided by contractors of building (including water supply, gas supply and sanitary works), roads and bridges, electrical and mechanical works (including air conditioning), horticultural works, multi-discipline works (including turn-key projects) and similar other works
18. Services provided for personal care by beauty parlors, salons, clinics, slimming clinics, spas (including saunas, Turkish baths and Jacuzzi) and similar other establishments
24. Services provided by other consultants (by whatever name called or treated, whether as consultant or otherwise) including human resource and personnel development services, exhibition or convention services[including provision of space, equipment, accessories and other allied services], event management services (whole range and variety of their services regardless of separate or individual classification thereof), valuation services, evaluation services (including competency and eligibility testing services), certification, verification and equivalence services, market research services, marketing or sales services (including marketing agencies and on line marketing or sales services), surveyors services, training or coaching services (other than general education services) and credit rating services.]
25. Services provided by tour operators[and travel agents including all their allied services or facilities] (other than Hajj and Umrah).
32. Services provided by property dealers[and realtors].
35. Services provided in respect of rent-a-car[(including renting of all categories of vehicles meant for transportation of persons)
36. Services provided by car/automobile dealers
43. Services provided in specified fields such as health care, gym, physical fitness, indoor sports, games,[amusement parks, arcades and other recreation facilities,]and body or sauna massage etc.
44. Services provided by laundries and dry cleaners
45. Services provided by cable TV operators.
66. Services in respect of treatment of textile, leather but not limited to Dyeing services, Edging and cutting, cloth treating, water proofing, Embroidery, Engraving, Fabric bleaching, Knitting, Leather staining, Leather working, Pre-shrinking, Color separation services, pattern printing and shoe making services.
67. Apartment house management, real estate management and services of rent collection.
68. (i) Medical consultation/ visit fee exceeding Rs.1,500per consultation/ visit of doctors, medical practitioners and medical specialists.(ii) Bed/ room charges of hospitals exceeding Rs.6,000/-per day per bed / room.
The PRA said that the notification shall remain effective for a period from its publication till June 06, 2020 (both days inclusive) and on and from July 01, 2020, the amendments shall cease to have effect and the position obtaining prior to this notification shall stand restored.