Pkrevenue.com

Day: June 26, 2020

  • Petroleum prices increased up to 66 percent; Petrol enhanced to Rs100.10/liter

    Petroleum prices increased up to 66 percent; Petrol enhanced to Rs100.10/liter

    ISLAMABAD: The federal government has increase prices of petroleum products (POL) up to 66 percent effective from June 26, 2020.

    According to new prices issued by the ministry of finance the maximum increase has been witnessed in kerosene oil by 66.08 percent to Rs59.06 per liter from previous price of Rs35.56 per liter.

    Second major change has been witnessed in Light Diesel Oil that has been enhanced by 46.77 percent to Rs55.98 per liter from previous rate of Rs38.14 per liter.

    The price of petrol has been increased by 34 percent to Rs100.10 per liter from previous rate of Rs74.52 per liter.

    The price of High Speed Diesel has been increased by 26.58 percent to Rs101.45 per liter from Rs80.15 per liter.

  • FPCCI advises central bank to bring down interest rate to 5 percent

    FPCCI advises central bank to bring down interest rate to 5 percent

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has advised the State Bank of Pakistan (SBP) to bring down the key policy rate at 5 percent considering the prevailing situation due to coronavirus.

    FPCCI president Mian Anjum Nisar on Friday appreciated the SBP for slashing key policy rate by 100 basis points to 7 percent in an unscheduled meeting of Monetary Policy Committee which has so far slashed the key interest rate by 6.25 percent from 13.25 percent since March 17, 2020.

    He said the rate cut is a welcome move, but only 100bps (basis points) cut is not enough. In the prevailing circumstances, interest rate at 7 percent is not feasible for the businesses, he said.

    “FPCCI hopes the central bank will consider the plights of the business community and rates would be brought to 5 percent soon,” he added.

    He said that the businessmen’s apex body welcomes the central bank’s move to cut the interest rates by 1 percent, urging it to bring discount rate to at least 5 percent in line with global financial trend.

    “This is commendable step of the State Bank, as it has now started shifting toward supporting trade and industrial growth and employment generation which is not possible without sizeable cut in key policy rate,” he added. He said that the banks should now also be advised to follow the lines of SBP immediately accordingly.

    “The banks should be instructed to revise KIBOR on a monthly basis instead of quarterly basis to pass on the benefit of lower rates speedily to the trade and industry, which are struggling to survive, Mian Anjum Nisar suggested and added that the impact on banks on their deposits will be insignificant.

    FPCCI President said that the reduction in policy rate by 6.25 percent since March 17, 2020 is commendable step of the government in the present situation that will positively affect cost of doing business and will encourage the investors and industrialists to make new investment in the country.

    The president FPCCI also said that the pandemic COVID-19 has affected the global economy and pushed to the depression resulting contraction in the economic activities and a threat to unemployment.

    He asked the SBP to go the extra mile in these arduous times and leave no stone unturned in providing relief to the financially distressed businesses.

  • KCCI declares policy rate cut insufficient

    KCCI declares policy rate cut insufficient

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) is not satisfied with one percent interest rate cut by the State Bank of Pakistan (SBP) and said it is very little reduction.

    Chairman Businessmen Group (BMG) and Former President Karachi Chamber of Commerce & Industry (KCCI) Siraj Kassam Teli and President KCCI Agha Shahab Ahmed Khan, have expressed disappointment over a meager reduction of just one percent in Policy Rate by the State Bank of Pakistan, terming it “too little, too late”.

    They stated that for a long time even before the pandemic, KCCI has consistently demanded to bring the policy rate to down to 4 percent in one go rather than in instalments.

    Reduction in policy rate in bits and pieces did not provide the much needed thrust to economy whereas a one-time major reduction to 4 percent could have triggered growth and accelerated economic activities.

    Reduction in policy rate in bits and pieces is not enough to provide stimulus to the economy hence, it is necessary to significantly reduce the interest rate in a single step, to rescue the trade and industry which is going through an unprecedented crisis.

    Revision in policy rate to 7 percent will effectively mean the interest rate for large scale borrowers will be 8 percent to 9 percent after adding the bank’s spread while it will not be less than 10 percent to 12 percent for smaller entities.

    In a statement, Siraj Teli and Agha Shahab pointed out that the business and industrial community is going through difficult times and many will not be able to survive through the economic crisis.

    Nearly all major economies have supported businesses by reducing their policy rates to as low as zero percent realizing the gravity of a global economic meltdown and its impact on businesses.

    It is surprising that the decision makers at the SBP and the governor do not have the perception of ground realities of Pakistan and the serious economic challenges the country will have to face in the near future if growth does not pick up soon.

    They opined that there is now ample justification for meaningful reduction in policy rate because the inflation has declined sharply due to a steep fall in prices of crude oil, commodities and raw materials, while the demand has also been suppressed.

    Therefore, it is imperative to support the business and industrial community at such a critical time through further reduction in policy rate.

    Chairman BMG and President KCCI underlined the fact that KCCI had expressed reservations to the Prime Minister of Pakistan on various occasions and also to Governor State Bank of Pakistan during his last visit to KCCI before pandemic about astronomically high interest rates which stifled growth and increased cost of doing business.

    They hoped that realizing the gravity of the situation, the State Bank would once again review its Monetary Policy at the earliest and revise the policy rate downward by another 300 basis points to provide much needed thrust to economy and trigger growth in the face of upcoming challenges created by Covid-19 pandemic that has affected the entire world.

  • Stock market gains 230 points on surprise rate cut

    Stock market gains 230 points on surprise rate cut

    KARACHI: The stock market gained 230 points on Friday after the central bank announced a surprise cut in interest rate a day earlier.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,939 points as against 33,709 points showing an increase of 230 points.

    Analysts at Arif Habib Limited said that the surprise rate cut by SBP post market yesterday, had the market open +319 points with 3.8 million shares traded on the opening bell.

    Cyclicals (Cement & Steel), which have had high leverage ratios in the past couple years were largely the beneficiaries of this rate cut and therefore reflected the same positivity in the market as well.

    MLCF and DGKC did the most volumes in the Cement sector stocks. E&P sector that could have benefited from the overnight bounce back in international crude prices failed to reciprocate and had a muted response during the session.

    Banking sector stocks, on the other hand, declined further as a result of Policy rate cut but couldn’t place significant volumes on the bourse.

    Today, also happened to be the last day of the roll-over week but didn’t cause much of an impact on stock prices.

    Cement sector led the volumes with 43.9M shares, followed by Technology (23.8 million) and Refinery (14.4 million). MLCF topped the volumes with 15.2 million shares, followed by PRLR (13 million) and DGKC (12.6 million).

    Sectors contributing to the performance include Fertilizer (+109 points), Cement (+93 points), Power (+43 points), O&GMCs (+15 points) and Pharma (+13 points).

    Volumes increased from 168.4 million shares to 198.2 million shares (+17 percent DoD). Average traded value also increased by 28 percent to reach US$ 40.5 million as against US$ 31.5 million.

    Stocks that contributed significantly to the volumes include MLCF, PRLR1, DGKC, UNITY and TRG, which formed 31 percent of total volumes.

    Stocks that contributed positively to the index include FFC (+57 points), HUBC (+43 points), ENGRO (+40 points), LUCK (+31 points) and DGKC (+26 points). Stocks that contributed negatively include BAFL (-20 points), HBL (-18 points), DAWH (-16 points), UBL (-12 points), and MEBL (-11 points).

  • Customs officials promoted to post of assistant collector

    Customs officials promoted to post of assistant collector

    KARACHI: Federal Board of Revenue (FBR) on Friday notified promotions of customs officials to the post of Assistant Collector (BS-17) in the Pakistan Customs Service with immediate effect and until further orders.

    Following officers have been promoted to the post of Assistant Collector (BS-17):

    01. Muhammad Khalid, Superintendent, RTO, Gujranwala.

    02. Mehmood Ahmad Nasir, Superintendent, CRTO, Lahore.

    03. Manoo Mal Galwani, Superintendent, Model Customs Collectorate (MCC) Lahore.

    04. Amjad Lal Junejo, Superintendent, RTO, Hyderabad.

    05. Ms. Kausar Jabeen, Superintended, RTO-II Karachi.

    06. Samasam Qadir Shah, Superintendent Preventive Service, MCC (Enforcement & Compliance), Karachi.

    07. Nasir Iqbal Kasuri, Principal Appraiser, MCC (Appraisement and Facilitation) East, Karachi.

    08. Abdul Qayyum, Principal Appraiser, MCC (Appraisement & Facilitation)-East, Karachi.

    09. Shafiullah, Principal Appraiser, MCC (Appraisement and Facilitation) – East, Karachi.

    10. Abdul Hameed, Principal Appraiser, Directorate General of Customs Valuation, Karachi.

    The FBR said that promotion of the officers will take effect from the date of their joining/change assumption, subject to the condition that no disciplinary proceedings/inquiry is pending against them. Their formal posting will b notified separately.

    The FBR said that the officials will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued the day following the termination of probationary period, the appointment shall deem to be held until further order.

  • Rupee weakens by 31 paisas on import payment demand

    Rupee weakens by 31 paisas on import payment demand

    KARACHI: The Pak Rupee weakened by 31 paisas against dollar on Friday owing to higher demand for import and corporate payment as fiscal year ending next week.

    The rupee ended Rs167.67 to the dollar from previous day’s closing of Rs167.36 in interbank foreign exchange market.

    Currency dealers said that the local unit was under pressure due to demand related to fiscal year end especially corporate payment. They said the rupee was also under pressure due to last trading day of the week and buyers were purchasing dollars in advance for future payments.

    It is pertinent to mention that the SBP received around $1.7 billion this week from internaitonal financial insitutions. However, the inflows also failed to give support to the local currency.

  • Customs collectorates to observe extended working hours on June 29-30

    Customs collectorates to observe extended working hours on June 29-30

    KARACHI: Federal Board of Revenue (FBR) on Friday said that the collectorates of Customs will observe extended working hours on June 29 and 30, 2020 to facilitate trade and business in payment of duty and taxes.

    The FBR said that all filed offices of customs will remain open and observe extended working hours till 10:00 PM on June 29, 2020 (Monday) and till 12:00 midnight on June 30, 2020 (Tuesday) for collection of duty and taxes.

    The FBR directed chief collectors of Customs to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of the duty and taxes collected by these branches on June 30, 2020 to the respective branches of State Bank of Pakistan on the same date so as to account for the same towards collection for the month of June 2020.

  • Cash withdrawal should be exempted from withholding tax; Senate recommends key changes in Finance Bill 2020

    Cash withdrawal should be exempted from withholding tax; Senate recommends key changes in Finance Bill 2020

    ISLAMABAD: The Senate of Pakistan has recommended the government to abolish withholding tax on cash transactions from banks. In its key tax recommendations for finalizing budget 2020/2021, the Senate recommended that the government should abolish all kinds of withholding tax chargeable on cash transactions from banks.

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  • Senate advises salary increase by 10 percent

    Senate advises salary increase by 10 percent

    ISLAMABAD: The Senate of Pakistan has recommended increase in salary of government employees by at least 10 percent for fiscal year starting July 01, 2020.

    As per the general consensus recommendations of the upper house after the debate on budget 2020/2021, it is recommended that salary of government employees should be enhanced at least 10 percent.

    The upper house further recommended that the federal government should double the budget for education and health sectors.

    It is recommended that all important debt agreements must be placed before the parliament for scrutiny immediately.

    The budget allocation for ministry of national health services, regulations and coordination must be enhanced to a minimum five percent as per WHO recommendations.

    The 11 percent cut imposed on the share of the provinces in violation of National Finance Commission (NFC) Award must be revised immediately.

    The Senate of Pakistan recommended to the National Assembly that the allocation for Ministry of Education must be increased by 20 percent.

    It is recommended that salaries of the medical and para-medical staff working in ICT should be enhanced reasonably.

    The Senate recommended that the government should allocate more funds for management of rain water reservoirs. A special fund should also be allocated for construction of new small/mini dams.

    Budgetary allocation of Higher Education Commission (HEC) should be enhanced to Rs100 billion.

    The upper house recommended that the government should allocate funds for improvement in the aviation sector and to upgrade airports all over the country.

    The government should expedite the process of loss making projects in a transparent manner.

    The government should raise the amount of funds allotted for locust control in 2020/2021, from Rs4 billion to Rs8 billion keeping in view of the losses suffered by small farmers in locusts affected areas.

    It is recommended to raise at least 50 percent in the corona stimulus package for fertilizer subsidy, loan remission and other relief to the farmers, keeping in view of covid-19 situation and food insecurity on account of locusts attacks.

  • Senate recommends tobacco must be treated as crop, exempted from duty/taxes

    Senate recommends tobacco must be treated as crop, exempted from duty/taxes

    ISLAMABAD: The Senate of Pakistan has recommended a significant policy shift, advocating for tobacco to be treated as a crop and exempted from duties and taxes. This recommendation was made in the context of the Finance Bill 2020, reflecting the upper house’s stance on the agricultural status of tobacco.

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