Day: May 23, 2020

  • Crashed PIA aircraft was unfit: PALPA

    Crashed PIA aircraft was unfit: PALPA

    KARACHI: The Pakistan Airlines Pilots’ Association (PALPA) on Saturday said that the plane crash on a residential area was due to due to the unfitness of the aircraft itself.

    An Airbus 320 of Pakistan International Airline (PIA) conducting PK 8303; travelling from Lahore to Karachi crashed a day earlier on the residential area causing 97 deaths.

    The association said that this is a time for great reflection and introspection. Without assigning blame and / or in any manner implicating any person / persons, we are constrained to identify certain hard facts.

    “We believe that the negligence of the PIACL management (in entirety) in ensuring maintenance of its aircrafts is a dominant factor in the occurrence of this most heart wrenching incident.”

    A statement issued by PIACL’s engineering department has confirmed that aircraft maintenance & repairs are a matter which do not obtain priority.

    The Pakistan Civil Aviation Authority (‘PCAA’) has also failed in its duty as the regulator. Airworthiness of an aircraft is a concern that falls exclusively within the regulatory domain of the PCAA.

    There have been numerous instances when PALPA has, on behalf of its members, lodged protests with PIACL’s management with regard this particular aircraft & the dangers it posed in being utilised for flying operations.

    Numerous ‘technical logs’ concerning this particular aircraft will validate PALPA’s contentions.

    The aircraft’s landing gear has always been a grave cause for concern.

    Our repeated expressions of distress have been misrepresented by PIACL’s management to government agencies, policy makers, as also the public at large, as unfair negotiatory tactics.

    PALPA has, time and again, insisted on enforcement of the highest flight safety standards. It has been so enabled by ‘working agreements’.

    These standards have been deemed as required to be most elevated particularly during the global devastation experienced at the hands of COVID 19.

    At our insistence, the Aviation Division was pleased to instruct PIACL & PCAA to ensure strictest compliance of SOPs in conducting COVID 19 specific flights. These SOPs should now ideally become an intrinsic part of PIACL’s flight operations.

    On 28.04.2020, the Federal Government issued a notification declaring all employment in PIACL as an ‘essential service’. The effect of this notification is that Pilots cannot, under any circumstances, refuse to partake flight operations as ordained by PIACL’s management.

    PALPA is committed to the fact that the notification has been issued (i) at the behest of PIACL’s management; (ii) in bad faith. Pursuant to the notification, PIACL’s management terminated the ‘working agreement’ lastly in vogue.

    The ensuing consequences now compel all Pilots to perform duties at the whims & the fancy of PIACL’s management, without the ability to demand or to hold it accountable for its failings. Any justified resistance may be met with criminal / penal consequences.

    The PIACL management has employed draconian methods in dealing with its most valuable asset; i.e. Pilots. PIACL operations are being administered at the whims and fancies of a man not deemed fit or suitable to helm the organization.

    On this day, the Supreme Court of Pakistan is seized of a matter challenging the appointment of Air Marshall Arshad Malik as Chief Executive Officer (‘CEO’) for PIACL.

    He is discharging duties under an injunctive order passed by the Supreme Court of Pakistan. Final adjudication of proceedings is awaited.

    The CEO’s unfitness to hold office is demonstrated through his statement to the press. By insinuating that the (deceased) commanding officer of PK 8303 was ‘unable to land the aircraft despite 2 open runways’ is a stark reflection of his lack of knowledge of aviation affairs.

    The reality of the situation is as follows. Landing gear is ordinarily deployed about 2000 feet before the landing strip / runway. In this instance, the landing gear failed & the commanding officer was compelled to ‘go around’. For those who are unaware, ‘go around’ is a term used when an aircraft landing is unsuccessful & the aircraft is brought around to perform a landing. During the second approach, both engines failed & the (deceased) commanding officer declare ‘may day’.

    PALPA (& it’s entire membership) is grief struck & concerned for the overall welfare of all persons (including passengers). Under present circumstances, however, we are unable to enforce good sense, prudent policies & flight safety standards upon PIACL’s management on account of oppressive policies enacted by it in concert with the Federal Government. Any position taken by us is at the risk of facing criminal prosecution.

    We, therefore, call upon:

    1 – The Honourable Prime Minister of Pakistan, Mr. Imran Khan Niazi, & the Federal Minister for Aviation Affairs, Mr. Ghulam Sarwar Khan, to reconsider the Federal Cabinet’s desire to classify PIACL employment as an ‘essential service’

    2 – The Honourable Chief Justice of Pakistan, Justice Gulzar Ahmed, to appreciate our concerns & to take up PIACL matters pending before the Supreme Court of Pakistan on urgent basis.

    3 – The PIACL Board of Directors to reconsider their misplaced, unjustified & otherwise unlawful act of (i) ‘unrecognising’ PALPA; & (ii) terminating the ‘working agreement’.

  • FBR suggested simplification of valuation for imported vehicles

    FBR suggested simplification of valuation for imported vehicles

    KARACHI: Federal Board of Revenue (FBR) has been advised to simplify valuation and levy of duty and taxes on imported vehicles.

    Officials in FBR said that in budget proposals received for 2020/2021, the business community proposed simplification of valuation and fixing duty and taxes.

    According to the proposals the valuation of vehicles may also be simplified and fixing duty / taxes as is already done for 1000 CC , 1300 CC and 1600 CC vehicles.

    The duty for vehicles above 2000 CC may also be fixed or manufacturer’s retail price for each year may be made a basis and give lump sum adjustment on account of various factors.

    This will simplify the assessment procedure.

    Further, the business community also recommended simplification of assessment and duty/taxes regime for imported goods.

    Currently entrepreneurs who want to set up new industries and importers wanted to know about the incidence of tax on various items have to contact either some customs expert or department.

    The department never gives proper reply in a given time period or sometimes does not respond at all.

    It is therefore proposed that the module of WeBOC relating to filing of GD and calculation of duty may be separately placed on the website of FBR so that any person can fill-in the description of item and HS code to get incidence of duty and taxes for imports.

    At present, the custom duty is calculated on the original value whereas sales tax is calculated on the duty paid value (value +customs duty), FED is calculated on (value +customs duty+ ST) and income tax / withholding tax is calculated again on original value.

    This makes the system very complicated. In case of sales tax the rate is already high i.e., 17 percent but it’s calculation on duty paid value further increases the rate beyond 17 percent. (If value is Rs 100 and custom duty is 15 percent the sales tax comes to Rs 21.25 instead of Rs 17).

    In this way a common man will be able to calculate duty and taxes on any item.

  • Weekly Review: market to see improved activities after Eid

    Weekly Review: market to see improved activities after Eid

    KARACHI: Stock market may witness enhanced activities after Eid ul Fitr, analysts said.

    The analysts at Arif Habib Limited said that provisional estimates of the National Accounts Committee (NAC) suggest slowdown in GDP at a negative 0.4 percent during the ongoing year.

    Although investors struggle to find silver linings at present, expectations of a rebound next year (IMF forecasts GDP growth at 2 percent in FY21) marks the upcoming Federal Budget a key event for the market.

    “We believe commencement of economic activity amid ease in lockdown as well growth boosting budgetary measures could potentially reinvigorate the market momentum post Eid break,” the analysts said.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.1x (2020) compared to Asia Pac regional average of 11.4x while offering a dividend yield of around 8.3 percent versus around 3.1 percent offered by the region.

    Chronic economic concerns given wildfire-like spread of COVID-19 cases, weak external account data (CAD at USD 572 million in April 2020; exports / remittances down by 23.5 percent / 5.5 percent MoM) as well as profit-taking near the key 34,000 index level, overshadowed the SBP’s monetary response to Corona induced decline in economic activity (another 100bps cut in policy rate to 8 percent).

    Moreover, market participants appeared weary of building long positions prior to the Eid break and hence, the benchmark equity bourse closed at 33,837 points (down by 172 points / 0.5 percent WoW).

    Sector-wise negative contributions came from i) Commercial Banks (162 points) as Moody’s placed five Pakistani banks on review for downgrade and adverse impact of rate cut on NIMs, ii) Fertilizer (114 points), and iii) Cement (95 points).

    Scrip-wise negative contributions were led by ENGRO (52 points), FFC (43 points), and MCB (36 points). Whereas top gainers were: i) Oil & gas exploration companies (120 points) and Food and personal care products (32 points).

    Foreign offloading during the week arrived at USD 8.77 million compared to a net sell of USD 10.91 million last week.

    Selling was witnessed in Oil & Gas Marketing Companies (USD 2.36 million), Banks (USD 2.11 million) and Fertilizer (USD 1.69 million).

    On the domestic front, Individual accumulated stocks worth USD 11.37 million, while buying by Insurance companies arrived at USD 4.9 million.

    Average volumes settled at 205.5 million shares (down by 6 percent WoW) while average value traded clocked-in at USD 47.5 million (up by 18 percent WoW).