Month: November 2020

PIA declares Rs39.85bn loss for nine-month period as revenue declines sharply

KARACHI: Pakistan International Airlines (PIA) has declared net loss of Rs39.85 billion for the nine-month period ended on September 30, 2020, which is mainly attributed to 31 percent decline in total revenue.

According to financial results submitted to Pakistan Stock Exchange, the net losses of the national flag carrier slightly contracted when compared with the net loss of Rs41.98 billion in nine-month period ended September 30, 2019.

The cost of sales of the company fell to Rs74.43 billion during the period January – September 2020 as compared with Rs102.62 billion in the same period of the last fiscal year.

Administrative expenses of the airline fell to Rs4.52 billion during nine-month period ended September 30, 2020 as compared with Rs4.99 billion in the corresponding period of the last fiscal year.

However, operational losses of the PIA increased sharply to Rs8.7 billion during the period under review as compared with Rs4.85 billion for the nine-month period ended September 30, 2019.

The PIA suffered an amount of Rs7.57 billion as exchange losses during the period. The company witnessed a loss of Rs11.60 billion as exchange loss in nine-month period of the last year.

November 5, 2020
Stock market gains 789 points amid rise in international oil prices

The stock market recorded a significant rise on Thursday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gaining 789 points. The index closed at 41,071 points, up from 40,282 points, fueled by gains in international oil prices and strong performance in regional stock markets.
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November 5, 2020
Country’s forex reserves increase to $19.353 billion

KARACHI: The liquid foreign exchange reserves of the country increased by $57 million to $19.353 billion by week ended October 29, 2020, State Bank of Pakistan (SBP) said on Thursday.

The foreign exchange reserves were at $19.296 billion by week ended October 23, 2020.

The official foreign exchange reserves of the SBP increased by $61 million to $12.182 billion by week ended October 29, 2020 as compared with $12.121 billion.

The foreign exchange reserves held by commercial banks eases to $7.171 billion by week ended October 29, 2020 as compared with $7.175 billion a week ago.

November 5, 2020
Rupee gains 35 paisas; dollar falls to Rs159.46

KARACHI: The Pak Rupee gained 35 paisas against the dollar on Thursday owing to inflows of export receipts and workers’ remittances, dealers said.

The rupee ended Rs159.46 to the dollar from the previous day’s close of Rs159.81 in the interbank foreign exchange market.

The dealer said that the importers were cautious over upsurge in coronavirus cases in the country as well as in the world. On the other hand, positive sentiments prevailed in the market over improved export numbers in October 2020.

The rupee hit an all-time low of Rs168 on August 26, 2020. Since then the local unit recovered Rs8.97 against the greenback.

According to Pakistan Bureau of Statistics (PBS) the exports during the month of October 2020 increased by 3.07 percent to $2.08 billion as compared with $2.02 billion in the same month of the last year.

Imports for the month fell by 5.73 percent to $3.82 billion as compared with $4.05 billion in the same month of the last year.

The trade deficit reduced by 14.46 percent to $1.74 billion in October 2020 as compared with a trade deficit of $2.03 billion in the same month of the last year.

November 5, 2020
Sales tax rates updated on services provided by restaurants

KARACHI: Sindh Revenue Board (SRB) has notified sales tax rates on services rendered by restaurants in the province.

The SRB issued working tariff on November 01, 2020 updating rates of sales tax on services.

The SRB said that the sales tax rate shall be 13 percent on services provided or rendered by restaurants.

The provincial revenue authority said that services provided or rendered by restaurants whose turnover does not exceeds 4 million rupees in a financial year shall be exempted from the levy of 13 percent sales tax.

However, the exemption shall not apply in case of restaurants:-

(i) which are air-conditioned on any day in a financial year and which are located within the building or premises of air-conditioned shopping malls or shopping plazas;

(ii) located within the building, premises or precincts of any hotel, motel, guest house or club whose services are liable to sales tax;

(iii) providing or rendering services in the building, premises, precincts, hall or lawn of any hotel, motel, guest house, marriage hall or lawn or club whose services are liable to sales tax;

(iv) which are franchisers or franchisees;

(v) having branches or more than one outlet in Sindh; and

(vi) whose total utility bills (gas, electricity and telephone) exceed Rs. 40,000/- in any month during a financial year.

November 5, 2020
Budget deficit swells to 1.1 percent in first quarter

ISLAMABAD: The budget deficit has ballooned to 1.1 percent of the GDP for the first quarter (July – September) 2020/2021 as compared with the deficit of 0.7 percent in the corresponding quarter of the last fiscal year, according to fiscal statistics released by the finance ministry on Wednesday.

The size of GDP has been estimated at Rs45,567 billion by the end of first quarter of the current fiscal year as compared with the size of Rs44,003 billion in the same period of the last fiscal year.

The ministry said that the total revenue had declined nominally to Rs1478.75 billion during the first quarter of the current fiscal year as compared with Rs1,489 billion in the same quarter of the last fiscal year.

Tax revenue has also declined to Rs1,122 billion for the quarter under review as compared with Rs1,142 billion in the same quarter of the last fiscal year.

Out of the total tax revenue for the first quarter of the current fiscal year, the federal government contributed Rs1,011 billion and provincial governments contributed Rs111.76 billion.

The ministry said that non-tax revenue witnessed an increase to Rs356.35 billion during the first quarter of the current fiscal year as compared with Rs346 billion in the same quarter of the last fiscal year.

Out of total non-tax revenue, the federal government contribution was Rs336 billion and the share of provincial government was Rs20 billion.

Total expenditures have registered significantly to Rs1,963 billion during July – September of fiscal year 2020/2021 as compared with Rs1,775 billion in the corresponding quarter of the last fiscal year.

Current expenditure sharply increased to Rs1,812 billion during first quarter of the current fiscal year as compared with Rs1,582 billion in the same quarter of the last fiscal year.

Expenditure of mark-up payment increased to Rs742 billion as compared with Rs571 billion.

However, defence expenditure fell to Rs224 billion during first quarter of the current fiscal year as compared with Rs242 billion in the same quarter of the last fiscal year.

The government spent Rs215 billion on development projects during the first three months of the current fiscal year as compared with Rs147.17 billion in the corresponding period of the last fiscal year.

The fiscal deficit for the first quarter of current fiscal year was recorded at Rs484 billion as compared with the deficit of Rs286 billion in the same quarter of the last fiscal year.

November 5, 2020
Zong awarded contract to provide 4G coverage in rural, remote areas

ISLAMABAD: The Universal Service Fund (USF) has awarded contracts worth Rs112 million to Zong 4G for providing 4G network coverage in rural and remote areas of Sindh and Balochistan.

Federal Minister of IT and Telecommunication, Syed Amin Ul Haque inaugurated the projects at a ceremony held at Zong 4G Headquarters on Wednesday.

The contracts were signed by Haaris Mahmood Chaudhary, CEO, USF with Wang Hua, Chairman and CEO, Zong 4G.

The Federal Secretary for IT & Telecommunication Shoaib Ahmed Siddiqui and Chairman PTA, Major General (R) Amir Azeem Bajwa were also present at the ceremony.

Chief Guest of the ceremony, Federal Minister for IT and Telecommunication, Syed Amin Ul Haque said: “To achieve the Digital Pakistan vision, it is imperative that all areas and citizens of Pakistan have access to mobile phones and Broadband services.

“This will ensure that not only is the citizenry connected to the digital world but they will be in a position to benefit and use Information Communication Technology (ICT) facilities.”

He informed that the Government is working arduously on mobile phone applications, web portals, e-commerce, e-government, online jobs, digital payments, establishment of IT parks and all other avenues which are related to the Digital Pakistan vision.

The Federal Minister congratulated Zong 4G and USF on the signing of the contracts and expressed the hope that this will ensure that residents living in remote areas of Baluchistan and rural pockets of Karachi will have better connectivity through Zong 4G’s superior technical expertise.

He stated that USF is working on projects worth billions of rupees which include laying optical fiber, deploying telecommunication infrastructure and expanding networks.

Furthermore, he announced that Ministry of IT and Telecommunication with USF’s support will be launching new development projects pertaining to network and Broadband expansion monthly.

While sharing his views at the ceremony, Zong 4G’s Chairman and CEO Wang Hua said: “Since its inception, Zong 4G has been at the forefront of digital transformation in Pakistan, striving to bring the unserved and underserved areas and masses under the folds of connectivity and digital inclusion.

“We thank USF for awarding us these projects and the government of Pakistan for supporting us in pursuing our passion for an empowered and Digital Pakistan.

“We stay committed to our mission of serving the Pakistani people in all possible ways and a project like this simply fuels that passion of ours.”

Also, sharing his thoughts at the ceremony, CEO USF, Haaris Mahmood Chaudhary said: “These projects will benefit an unserved population of 0.5 million in 263 unserved Mauzas, thereby covering an unserved area of 4,121 sq.km. of Nasirabad, Jaffarabad, Sohbatpur, Karachi West & Malir districts.”

“As advised by the Federal Minister for IT and Telecommunication, USF is actively working to provide robust connectivity in unserved and underserved areas of Pakistan. We are committed to playing our role in making Digital Pakistan vision a reality and bridging the digital divide.”

Senior officials of the Ministry of IT and Telecommunication, USF and Zong 4G were also present at the ceremony.

November 4, 2020
KTBA demands time relief for submitting annexures H, F

KARACHI: Karachi Tax Bar Association (KTBA) on Wednesday demanded the tax authorities to condone time-limit for submitting annexures ‘H’ and ‘F’ of monthly returns for claiming sales tax refunds.

The tax bar in a letter to Member Inland Revenue (Operation) of Federal Board of Revenue (FBR), said that a large number of taxpayers had failed to rectify the details of their stock position through annexure ‘H’ and value addition through annexure ‘F’. Due to this sales tax refund was stuck up since July 2019.

The tax bar urged the tax authorities to grant general condonation of 60-day time to taxpayers for filing revised annexures ‘H’ and ‘F’ of sales tax returns related to tax periods from July 2019 onwards to e-file pending refunds claims.

In a letter sent to the Dr Muhammad Ashfaq Ahmed, Member IR (Operations), KTBA appreciated the efforts of the FBR to ensure speedy liquidation of sales tax refunds in consonance with Prime Minister’s Covid -19 Relief Package.

The tax bar highlighted that due to prolonged pendency, there were anomalies in annexures F and H and gaps and contradictions in its supporting documents had rendered a sizeable quantum of refund claims pending with the FBR, and all such taxpayers required to file revised Annexures F and H from July 2019 on a sequential basis.

Although the Commissioner Inland Revenue empowered to condone such cases under section 74 of the Sales tax Act 1990 but the KTBA sought a general condonation and extension of time limit.

The KTBA said that it would help the taxpayers to file annexures F and H without wastage of time.

November 4, 2020
KSE-100 index declines by 199 points on US elections, global markets

KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) on Wednesday declined by 199 points over investors attention on US elections and global commodity markets.

The KSE-100 index closed at 40,280 points as against 40,481 points showing a decline of 199 points.

Analysts at Arif Habib Limited said that the market opened on a positive note and added another 434 points in addition to yesterday’s 1368 points jump in the index.

However, profit booking kept a check on the additional points, keeping the index movement in the positive zone between +150 points and +400 points in the early hours. E&P, Cement, Banks and Fertilizer sector stocks contributed to the trading in that phase.

US Elections also had local investors attention, conjecturing the prospects of Trump’s winning on global stock markets as well as Commodity markets.

Selling pressure brought key stocks in Banking, Cement and O&GMCs sectors close red. Among scrips, UNITY contributed 47.7 million shares, followed by FFL (34.7 million) and HASCOL (30.3 million).

Sectors contributing to the performance include Banks (-88 points), Cement (-45 points), Power (-41 points), Pharma (-25 points) and O&GMCs (-21 points).

Volumes increased from 383.9 million shares to 427.8 million shares (+11 percent DoD). Average traded value however, increased by 1 percent to reach US$ 87.0 million as against US$ 86.3 million.

Stocks that contributed significantly to the volumes include UNITY, FFL, HASCOL, FFBL and TRG, which formed 36 percent of total volumes.

Stocks that contributed positively to the index include FFBL (+14 points), OGDC (+12 points), MTL (+11 points), TRG (+10 points) and COLG (+10 points). Stocks that contributed negatively include HBL (-38 points), HUBC (-37 points), UBL (-27 points), PSO (-17 points) and BAHL (-17 points).

November 4, 2020
Dollar retreats to Rs159.81

KARACHI: The Pak Rupee gained 16 paisas against the dollar on Wednesday owing to lower imports and inflows of export receipts and workers remittances, dealers said.

The rupee ended Rs159.81 to the dollar from the previous day’s close of Rs159.97 in the interbank foreign exchange market.

The dealer said that the importers were cautious over the upsurge in coronavirus cases in the country as well as in the world. On the other hand, positive sentiments prevailed in the market over-improved export numbers in October 2020.

The rupee hit an all-time low of Rs168 on August 26, 2020. Since then the local unit recovered Rs8.62 against the greenback.

According to the Pakistan Bureau of Statistics (PBS) the exports during the month of October 2020 increased by 3.07 percent to $2.08 billion as compared with $2.02 billion in the same month of the last year.

Imports for the month fell by 5.73 percent to $3.82 billion as compared with $4.05 billion in the same month of the last year.

The trade deficit reduced by 14.46 percent to $1.74 billion in October 2020 as compared with a trade deficit of $2.03 billion in the same month of the last year.

November 4, 2020