Pkrevenue.com

Day: February 10, 2021

  • FBR issues rules for direct transfer of income tax refund payments

    FBR issues rules for direct transfer of income tax refund payments

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday introduced rules for making payment of income tax refunds directly to taxpayers’ bank account.

    The FBR issued SRO 175(I)/2021 dated February 10, 2021 to notify draft amendments to Income Tax Rules, 2002.

    According to the draft rules, a Centralized Income Tax Refund Office (CITRO) would be established for centralized payment of refunds.

    After completing all codal formalities the Commissioner Inland Revenue shall pass an order under Section 170(4) and transmit the order to CITRO. The same shall be reflected in CITRO in real time.

    The CITRO shall generate an electronic advice of approve amount for onwards submission to the State Bank of Pakistan (SBP) through dedicated VPN tunnel established between FBR and SBP. The SBP shall credit amount directly to the account of taxpayer.

    The SBP shall confirm the transfer of amount to the taxpayers account or vice versa electronically to CITRO.

    The CITRO shall reconcile the payments issued as per instructions during the month with the electronic scrolls received from the SBP and record the outcome of such reconciliation in the system.

    Where any payment instruction is returned back by the SBP due to any reason, the CITRO shall transmit the same to concerned commissioner for correction in payment instructions.

    The FBR shall ensure that complete data of refunds issued is made available to the concerned commissioner electronically.

  • ATM transaction charges levied only on obtaining printed receipts: 1Link

    ATM transaction charges levied only on obtaining printed receipts: 1Link

    KARACHI: 1Link Pvt Limited on Wednesday said that charges imposed on ATM transactions only on physical receipts. However, electronic information of transactions is remained free of cost.

    1LINK is Pakistan’s first fully licensed PSO/PSP, largest payment and switch system, committed to administer and evolve a strong e-payment network in the country.

    The 1Link in response to various queries being initiated regarding ATM transactions receipts, said that it was an optional service where banks customers were getting a choice to opt for a physical receipt charged at Rs2.50, or to get a free of cost intimation through SMS.

    “This initiative is part of a ‘Go-Green’ exercise to reduce litter and lower the cost of printed receipts, which are usually discarded immediately,” it said in a statement.

    In addition, sensitive customer information is left for others to peruse, it added.

    “The State Bank of Pakistan (SBP) has not mandated this and has entirely left the customer to choose a charged receipt or get free electronic confirmation,” it said.

    The 1Link said the guidelines governing this are:

    1. Customer must be informed about charged receipt at the time of transaction.

    2. Bank has registered mobile number of the customer.

    3. The customer has free SMS facility.

    4. Assure that an SMS is pushed to the customer’s registered mobile number with details such as transaction amount and remaining balance.

    The company said that charged receipts on balance inquiry and ATM receipts have been ongoing since quite a while, and customers have full liberty to decline a receipt without incurring any extra cost.

  • Telenor awarded contract worth Rs1.37bn for high speed broadband services

    Telenor awarded contract worth Rs1.37bn for high speed broadband services

    ISLAMABAD: Telenor, a leading mobile phone operator in Pakistan, has been awarded a contract worth Rs1.37 billion for providing high speed mobile broadband services in various districts of Kyber Pakhtunkhwa.

    A statement issued on Wednesday said that the Universal Service Fund (USF) has awarded contract worth approximately PKR 1.37 billion to Telenor for providing High Speed Mobile Broadband services in Chitral, Upper Dir and Lower Dir districts of Khyber Pakhtunkhwa province.

    Federal Minister for IT and Telecommunication, Syed Amin Ul Haque and Special Assistant to the Prime Minister (SAPM) for Overseas Pakistanis & HRD, Syed Zulfiqar Abbas Bukhari witnessed the contract signing ceremony held at the USF Office, Islamabad.

    The contracts were signed by Haaris Mahmood Chaudhary, CEO, USF with Irfan Wahab Khan, CEO Telenor. The Federal Secretary for IT & Telecommunication and Chairman USF Board, Shoaib Ahmad Siddiqui, Chairman PTA, Major General (R) Amir Azeem Bajwa and other Officials were also present at the ceremony.

    Chief Guest of the ceremony, Federal Minister for IT and Telecommunication, Syed Amin Ul Haque said: “With the help of Information and Communication Technologies (ICTs), districts of Chitral, Upper Dir and Lower Dir can achieve better visibility, communication and integration into economic and tourism flows. High Speed Mobile Broadband services will enhance tourism and attract tourists, thus creating jobs. The Ministry of IT and Telecommunication will continue close cooperation to support the tourism industry of Pakistan and provide the basis for achieving sustainable rural development.”

    Furthermore, he extended his warm felicitation to the teams of USF and Telenor on the contract signing and emphasized on making Digital Pakistan vision a reality. Guest of Honor of the ceremony, Special Assistant to the Prime Minister for Overseas Pakistanis & HRD, Syed Zulfiqar Abbas Bukhari while congratulating USF and Telenor on the signing of the contract said, “The use of ICT in tourism is a welcoming step for the residents of Chitral, Upper Dir and Lower Dir districts. High speed internet connectivity will expedite activity in the region and make the travel process efficient and pleasant.”

    In addition, he expressed gratitude to the Federal Minister and the Ministry of IT and Telecommunication for the guidance and support. Sharing his views on the development, CEO Telenor Pakistan, Irfan Wahab Khan said: “We are committed to ensure the basic right of connectivity to the people of Pakistan. At Telenor Pakistan, we are driven to continue empowering the country by bridging the digital divide, creating access to opportunities and uplifting the lives of millions. We stand firm in our commitment of connecting people to what matters most to them and aim to continue providing opportunities in the future.”

    Also, sharing his thoughts at the ceremony, CEO USF, Haaris Mahmood Chaudhary said: “This project will benefit an unserved population of 0.7 Million in 648 unserved mauzas, thereby covering an unserved area of 18,212 sq. km. of Chitral, Upper Dir and Lower Dir districts. We are committed to empowering the unserved and unserved communities of Pakistan and we look forward to strengthening our partnership with Telenor.”

    Moreover, he thanked the Federal Minister and the Ministry of IT and Telecommunication for adopting policies and mechanisms that are supportive of the digital revolution of tourist places.

  • SBP allows investment abroad by resident individuals, companies

    SBP allows investment abroad by resident individuals, companies

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday allowed resident Pakistani individuals and companies to make equity-based investment in entities abroad on repatriable basis.

    The central bank issued FE Circular No. 01 dated February 10, 2021 under which the residents of Pakistan including firms and companies are allowed to make equity-based investment in entities abroad on repatriable basis, subject to the following terms and conditions and in the manner stipulated below:

    I. Basic Terms and Conditions:

    Following basic terms and conditions will apply to all categories of investment abroad:

    1. Investment abroad is allowed only for those countries that allow repatriation of profits, dividends and capital. However, equity investment in India, shall be subject to prior approval of SBP.

    2. The funds proposed for investment should be legitimate and tax paid, and the investor should have a clean record of loan repayments.

    3. No ML and TF related investigation is pending against the applicant or its beneficial owner/key management personnel under Anti Money Laundering Act, 2010 or Anti-Terrorism Act, 1997 as amended from time to time.

    II. Category-wise specific Terms and Conditions:

    Following terms and conditions will apply specifically to each category of Investment abroad:

    A- Establishment of subsidiary/branch office abroad by export oriented companies/firms for promoting exports:

    a. In order to facilitate the companies/firms incorporated/registered in Pakistan, in increasing exports of the country by expanding their business offshore, designated Authorized Dealers are granted general permission to allow the following equity investment abroad transactions:

    i Establishment/acquisition of subsidiary and additional capital injection in subsidiary.

    ii. Establishment/acquisition of marketing/ liaison/ representative office abroad and remittance of their annual budgeted operational expenses.

    b. However, this general permission is subject to following terms and conditions:

    i. Total amount of remittance during a calendar year, under this general permission, should not exceed the 10% of average annual export earnings of last three calendar years of the applicant, or USD 100,000 whichever is higher. Authorized dealer can also open standby letter of credit to facilitate the offshore entity of the applicant for raising funds from offshore jurisdiction, within this limit.

    ii. At any point of time, investment abroad of the applicant should not exceed 80% of its equity (after adjusting for investments in subsidiaries/ associates, goodwill, Deferred Tax Assets, receivables from related entities etc.).

    iii. Transactions shall be carried out by the exporter by utilizing foreign currency funds available to the credit of special foreign currency accounts maintained in terms of applicable Foreign Exchange Regulations. However, if the balance available in its special foreign currency accounts is not sufficient, remittance of balance amount can be allowed from interbank market.

    iv. The export overdue of intending investor shall not be more than 1% of the previous year’s exports.

    v. The threshold of up to USD 30,000 shall be observed for allowing annual budgeted operational expenses of a marketing/ liaison/ representative office from second year onward (from date of investment). However, an increase of up to 10% may be allowed in annual budgeted operational expenses in the following years subject to valid justification of increase in expenses by the applicant.

    vi. One entity per jurisdiction shall be allowed for establishment/ acquisition of subsidiary/ marketing/ liaison/ representative office abroad.

    vii. The designated Authorized dealer shall ensure the following through assessment of relevant information/documents submitted by the applicant, before allowing the transaction under this general permission:

    a. In case applicant’s export earnings during last three calendar years is less than USD 300,000 or equivalent in other currencies, the Authorized dealer shall obtain details of products to be exported by the applicant and an undertaking that proposed investment has the potential to increase the exports of Pakistan.

    b. The business activity of the company, firm in which investment is desired to be made should ordinarily be of the same nature as that in which the applicant is already engaged in Pakistan. Proposal for investment abroad in the extended line of business or vertical business integration shall also be considered as similar line of business.

    c. The investor should be financially sound as shown by its audited accounts for the last three years. In the case of a company in the I.T. business, the condition of three years may be reduced to one year.

    d. The bonafides of the applicant and the genuineness of the transaction by verifying the necessary documents.

    e. In case of acquisition of subsidiary abroad, the Authorized Dealer shall allow the transaction after satisfying itself with respect to valuation of the company being acquired. In case the target company is unlisted, and the amount of investment is above USD 1 million, the Authorized dealer may allow the transaction after satisfying itself through a valuation report from an accredited business valuation firm of the country in which investment is to be made.

    f. While assessing any request for establishment/acquisition of subsidiary or marketing/ liaison/ representative office abroad, due weightage shall be given to the performance of previous investments abroad, if any, in terms of profit repatriation, increase in exports etc.

    g. In case of additional capital injection in subsidiary, due weightage shall be given to its previous performance as well as future outlook.

    B- Establishment of Holding Company (HoldCo) abroad by residents for raising capital from abroad:

    a. In order to facilitate the resident companies (hereinafter referred as Operating Company or “OpCo”), having innovative and/or scalable businesses with a potential for high growth, to raise capital from abroad, following general permissions are granted:

    i OpCo is allowed to incorporate a holding company (hereinafter referred as “HoldCo”) abroad. For this purpose, designated Authorized dealers are allowed to remit the initial incorporation expenses, on actual basis but not exceeding USD 10,000 or equivalent in other currencies, subject to condition that the applicant company is eligible as per terms and conditions.

    ii After incorporation of the HoldCo abroad, the existing shareholders (individuals/ companies/ firms) of OpCo (“Founders”) are once allowed to swap their shares, of equal value, to mirror the shareholding of OpCo in HoldCo, within 30 days, by acquiring shares of HoldCo against transfer of their shareholding in OpCo to the nonresident HoldCo on repatriation basis. However, no remittance in this regard shall be allowed from Pakistan.

    iii Subsequently, resident companies/firms and Founders are allowed to acquire the shares issued by HoldCo against payment of funds to OpCo locally in PKR. Consequently, the OpCo can issue shares of equal value in favor of non-resident HoldCo, on repatriation basis.

    b. These general permissions are subject to following terms and conditions:

    1. The company shall be eligible for incorporation of holding company abroad under this

    general permission, provided that:

    i. The company is incorporated as a private limited/public unlisted company under the Companies Act, 2017 (erstwhile Companies Ordinance 1984) for not more than 7 years, provided that such entity is not formed by splitting up, or reconstruction of a business already in existence

    ii. The Company has annual revenue below PKR 2 billion since its incorporation

    iii. The company has equity (including retained earnings) below PKR 300 million as per latest audited financials

    2. HoldCo shall repatriate the funds, raised from abroad, through equity or borrowing, to Pakistan, as equity based investment in OpCo, in following manner:

    i. At least 80% of the funds raised from abroad on annual basis until USD 1 million (net of dividend remitted by OpCo) is remitted to Pakistan.

    ii. Subsequently, at least 50% of funds raised from abroad on annual basis until USD 10 million (net of dividend remitted by OpCo) is remitted to Pakistan on cumulative basis.

    3. The OpCo can issue shares in favor of HoldCo, against the amount received from abroad, on repatriation basis in terms of provisions of para 6 and 7 of Chapter 20 of Foreign Exchange Manual. The OpCo shall report to SBP within 30 days of issuance of shares through its designated Authorized dealer, along with details of funds raised by HoldCo.

    4. HoldCo shall remit the dividends to Pakistan against shares acquired by resident companies/firms and Founders.

    5. Designated Authorized Dealer shall arrange to ensure the compliance of all terms and conditions.

    C- Investment abroad by resident companies/firms for expansion of business:

    The residents of Pakistan including firms and companies are allowed to make equity based investment (other than portfolio investment) in entities abroad on repatriable basis, with prior permission of State Bank of Pakistan and subject to the following terms and conditions:

    i. Only companies incorporated in Pakistan including foreign controlled companies and firms owned by Pakistani Nationals resident in Pakistan are allowed investment under this category.

    ii. The business activity of the company, firm, joint venture in which investment is desired to be made should ordinarily be of the same nature as that in which the investor is already engaged in Pakistan, or in which the investor has the potential to acquire sufficient expertise from the market for running the business. Proposal for investment abroad in the extended line of business or vertical business integration shall also be considered as similar line of business.

    iii. The investor should be financially sound as shown by its audited accounts for the last three years. In the case of a company in the I.T. business, however, the condition of three years may be reduced to one year.

    iv. The proposal should be economically viable as evidenced from a feasibility report. It should have the potential for future earnings of foreign exchange coupled with other advantages to the country such as employment opportunities for Pakistani nationals and improvement in national human resources.

    v. Funding for the proposed investment abroad shall be allowed from the foreign currency funds available to the credit of special foreign currency accounts maintained by the applicant in terms of applicable Foreign Exchange Regulations. However, in case the applicant does not have any such account or the balance available in its special foreign currency accounts is not sufficient, remittance can be allowed from interbank market.

    vi. The State Bank under the aforesaid guideline would also deal with the proposals emanating from the Public Sector Organizations providing financial services whereas the concerned ministry would deal with the investment proposals from all other public sector organizations.

    D- Investment abroad by Resident Individuals:

    1. Small Investment by Individuals in Listed companies abroad:

    General permission is granted to Designated Authorized Dealers to effect remittance on behalf of resident individuals for investments in shares of listed companies abroad, subject to following terms and conditions:

    i. Designated Authorized Dealer is allowed to remit a maximum amount of USD 25,000 or equivalent during a calendar year, under this general permission, on behalf of a resident individual.

    ii. The maximum shareholding by an individual, in a single investee company, under this general permission, shall not exceed 1% of shares of the investee company at any time.

    2. Employee Stock Option Plans

    General Permission is granted to Designated Authorized Dealers to effect remittance on behalf of resident employees of subsidiaries of foreign companies in Pakistan to participate in their share option plans, subject to following terms and conditions:

    i. Subsidiaries of foreign companies in Pakistan shall approach to their designated Authorized Dealer with complete share option plans.

    ii. Designated Authorized Dealer is allowed to remit a maximum amount of USD 50,000 or equivalent during a calendar year, under this general permission, on behalf of a resident individual.

    iii. The maximum stake by an individual, in a single investee company, under this general permission, shall not exceed 3% of shares of the investee company at any time.

    3. Sweat Equity

    General permission is granted to resident individuals to acquire the shares of companies abroad issued to them as sweat equity against their efforts and services, without any monetary consideration. This general permission is subject to the following terms and conditions:

    i. The maximum shareholding, under this general permission, shall not exceed 20% of shares of the investee company at any time.

    ii. The investor could acquire shares under this general permission against its efforts and services related to the field where the investor has expertise.

    iii. The investor shall submit the agreement, confirming this arrangement, to SBP through its designated Authorized Dealer while reporting this investment, along with its detailed profile showing his/her filed field of expertise with documentary evidences.

    III. Post investment requirements:

    After making investment, in terms of these regulations, the investor is required to:

    i. Submit the documentary evidences related to establishment/ acquisition of subsidiary/ branch office/shares abroad, within one month of making the investment, through designated authorized dealer.

    ii. Make a return to State Bank on the prescribed form V-100 through their banker within one month of making the investment;

    iii. Each entity who invested abroad under this policy shall submit audited financials of the investee company to the Authorized Dealer on annual basis.

    iv. Repatriate the dividend/disinvestments proceeds (including capital gains) to Pakistan through normal banking channels. The amounts so received would be converted to local currency by the bank concerned and a Proceeds Realization Certificate in original evidencing the same shall be filed by the owner with the State Bank through its Authorized Dealer. Such amounts shall not be allowed for credit to a Foreign Currency Account or for purchase of Pakistani securities on Repatriable basis.

    IV. Designation and application processing:

    1. Designation of Authorized Dealer

    i. All the Investments under the general permission granted for categories of investment abroad mentioned at Para 13(II) A, B & D above, shall be routed through only one branch of an Authorized Dealer to be designated by the applicant. For this purpose, request for designation shall be submitted by the applicant through the Authorized Dealer, intended to be designated, to the Exchange Policy Department of State Bank of Pakistan, for acknowledgement. The request for designation of the branch shall be routed through the Head Office of the Authorized Dealer, where record of all such designations shall be maintained.

    ii. The Authorized Dealer at its relevant branch so designated by the applicant shall be liable to ensure compliance of terms and condition stipulated for each category of investment abroad and maintain complete party wise record of transactions processed by it. The Authorized Dealer shall also maintain at the designated branch the complete record of repatriation of dividend/disinvestment proceeds from investments abroad by its each customer.

    iii. In case applicant desires to change the designated bank/branch, it shall submit an application through the Head Office of bank/branch desired to be designated for the acknowledgment of Exchange Policy Department along with the following :

    a) NOC from previous designated bank/branch regarding change of designation. The previous designated Authorized Dealer shall be required to issue the NOC and share the record related to investment abroad transactions of the applicant with the new Authorized Dealer, within three working days from the date of request received from the new Authorized Dealer.

    b) Confirmation from bank/branch to be designated regarding acquisition of compete record, regarding previous investment abroad transactions, from bank/branch designated previously.

    2. Processing of application by Authorized Dealer

    The detailed applications along with audited accounts, particulars of Directors/Partners of the investor company/firm (not required in case of individuals), name and address of the foreign company/firm in which investment is desired to be made, its line of business and particulars of its Directors/Partners, shall be forwarded to the Authorized Dealer. The applications with respect to proposals of investment abroad pertaining to Para 13(II) A, B & D above, shall be processed by the designated Authorized Dealer. In case of any exemption/waiver is required, the application will be forwarded by the designated Authorized Dealer to Exchange Policy Department, State Bank of Pakistan as per procedure detailed below. With respect to proposals of investment abroad pertaining to Para 13(II) C above, applications shall be forwarded by the Authorized Dealer to State Bank of Pakistan as per procedure detailed below.

    3. Processing of application by State Bank of Pakistan

    The detailed applications with respect to Para 13(II) C or any exemption/waiver from Para 13(II) A, B & D shall be forwarded by Authorized Dealers to Director, Exchange Policy Department, State Bank of Pakistan, Karachi, along with its review of the application (against applicable terms and conditions) and specific recommendations. Any application submitted to State Bank without proper review and specific recommendation of the Authorized Dealer would not be entertained.

  • State Bank modernizes forex rules to facilitate startups, fintechs

    State Bank modernizes forex rules to facilitate startups, fintechs

    KARACHI: State Bank of Pakistan (SBP) has modernized foreign exchange regulations to facilitate startups, Fintechs and exports, a statement said on Wednesday.

    The central bank notified revisions in chapter 20 of the Foreign Exchange Manual to facilitate Start-ups, Fintechs and Exports.

    The new policy for equity investment abroad will attract foreign direct investment through the establishment of holding companies by Pakistani fintechs and startups; support exports by facilitating exporters to establish subsidiaries or branch offices outside Pakistan; and, allow resident Pakistanis to acquire sweat equity, amongst other changes to the Foreign Exchange (FX) regulations.

    Further changes in the foreign exchange regulations will facilitate portfolio investment in the country including mutual funds, Exchange Traded Funds (ETF) and Real Estate Investment Trust (REIT) Funds through Pak rupee based Roshan Digital Account (RDA) and Special Convertible Rupee Account (SCRA).

    The SBP, after approval of the federal government, has introduced three new categories of investment abroad under its revised policy governing equity investment abroad and banks have been authorized to allow remittances under newly introduced categories.

    i. Establishment of Holding Company abroad by residents for raising capital from abroad: Pakistan’s investment regime is quite liberal that allows full freedom to repatriate profit, dividend and capital; however, some international investors prefer to invest indirectly through holding company established abroad specially in the Fintech and Startup firms. SBP’s revised policy will enable the Pakistani Fintech and startup companies to channelize foreign direct investment in the country by establishing a holding company abroad against remittance of up to USD 10,000 and subsequent swapping of shares to mirror the shareholding of local company in the holding company.

    ii. Establishment of subsidiary/branch office abroad by export oriented companies/ firms for promoting exports: The policy will enable the export oriented companies to establish subsidiary/ branch office abroad against remittance of 10% of their average annual export earnings of last three calendar years, or USD 100,000 whichever is higher. This will facilitate exploring new and non-traditional markets and capturing more export orders, as international buyers prefer dealing with subsidiaries/ representative offices of foreign companies present in their country. Accordingly, the proposed policy would help in growth of export-oriented companies and boost the exports of the country.

    iii. Investment abroad by Resident Individuals: The policy will allow the resident Individuals of Pakistan to acquire equity stake in international firms through share option plans or investment in listed securities subject to observance of annual ceiling of foreign exchange defined in the policy. In case of sweat equity a person can acquire upto twenty percent shareholding in a foreign company. These policy provisions will provide opportunities to individuals to earn foreign exchange for the country in the form of repatriation of dividend/ capital gains to Pakistan.

    Investment in Mutual/Private Funds in Pakistan by Non-Residents:

    With an objective to attract investment in the country, SBP has allowed the trading of units of funds quoted at Stock Exchange, including Exchange Traded Funds (ETF), Real Estate Investment Trust (REIT) Funds and close-end mutual funds, through Special Convertible Rupee Accounts (SCRA) and PKR version of Roshan Digital Account (NRP Rupee Value Account (NRVA)). These account holders have also been allowed to invest in units of Mutual Funds registered as Open End Schemes (OES) under the management of Asset Management Companies (AMCs) licensed by SECP to provide asset management services.

    Further, SBP has also allowed the private funds established and operated by Private Fund Management Companies licensed by SECP to provide private equity and venture capital fund management services, to issue units of their funds to non-resident investors.

    It is expected that these changes will help the mutual fund and private equity fund industry to grow by attracting foreign investment in the country. It will also facilitate overseas Pakistanis with Pak Rupee based Roshan Digital Account (RDA) and the non-residents in general to invest in funds in Pakistan.

  • PIA offers 10pc discount on domestic, international tickets to Karachi Chamber

    PIA offers 10pc discount on domestic, international tickets to Karachi Chamber

    KARACHI: Pakistan International Airlines (PIA) has announced a 10 percent discount on air tickets of both domestic and international flights to members and staff of Karachi Chamber of Commerce and Industry (KCCI).

    The discount is available to members and staff at newly PIA outlet inaugurated at KCCI premises, a statement said on Wednesday.

    The discount is available at 10 percent on domestic and international flights not only to KCCI members and staff but also their family members.

    In this regard, a Memorandum of Understanding (MoU) was signed by Chief Executive Officer (CEO) PIA Air Marshal Retd. Arshad Malik and President KCCI M. Shariq Vohra at a ceremony organized at KCCI which was also attended by Chairman Businessmen Group (BMG) & Former President KCCI Zubair Motiwala, Senior Vice President KCCI Saqib Goodluck, Vice President Shamsul Islam Khan, Former Presidents Younus Muhammad Bashir, Shamim Ahmed Firpo & Junaid Esmail Makda and others.

    Speaking on the occasion, CEO PIA Arshad Malik paid glowing tribute to Late Siraj Kassam Teli for his exceptional services to the country, particularly the business & industrial community.

    “Because of his splendid work, Siraj Teli would go down in the history and will always be remembered. He was a fatherly figure who fearlessly raised voice for the rights of business community and Karachi city,” he added.

    He informed that PIA has recently airlifted a cargo of kinnow and was particularly focused on providing cargo facilities at competitive rates hence, KCCI members should use PIA’s cargo service for sending their cargoes at corporate rates which will be kept lower than the market rates. “You decide the price for cargo and we will live up to it,” he added.

    Arshad Malik was of the opinion that the revival of PIA was a challenging task in 2019 but by taking the ownership along with the commitment and sincere efforts, the performance of the national flag carrier was improved however, the airline suffered badly due to COVID-19 pandemic.

    He further informed that PIA management was taking every possible step for the betterment of the airline and in this regard, a Voluntary Separation Scheme (VSS) with attractive package was given to some 2000 employees.

    “Segregation of core and non-core groups was likely while the aircrafts acquired on expensive lease were being returned and replaced with better aircrafts at reasonable rates,” he added.

    In response to a suggestion pertaining to commencement of direct flights to northern areas, he said that although PIA was capable of providing direct flight but it was currently not possible due to lack of runways and refueling facilities in many areas of the country.

    “Keeping in view the potential of Gwadar, the number of direct flights has been raised to three from one as this city is going to become a major hub of economic and financial activities.”

    Chairman BMG Zubair Motiwala, in his remarks, appreciated all the efforts being made by CEO PIA to improve the performance of national flag carrier which has to be improved to such an extent that PIA thrives and flies high not only in the skies of Pakistan but also the rest of the world which can become possible only if the government facilitates and provide conducive environment with a focus to restore the lost glories of the national flag carrier.

    Keeping in view the performance of other local airlines, he advised CEO PIA to double the number of domestic flights with same kind of treatment and services which were being provided by PIA’s competitors that would surely yield positive results.

    “We are patriotic Pakistanis and we want to help and support PIA so we would prefer to fly to our destinations via national flag carrier but PIA must improve its services as per international standards,” he added while acknowledging the timely arrival and departure of PIA flights soon after Arshad Malik assumed charge as CEO PIA.

    Chairman BMG further appealed the entire business and industrial community to come forward, support and cooperate with PIA in whatever way they can so that PIA could come out of crises and attains success.

    In his welcome address, President KCCI Shariq Vohra, while appreciating the efforts being made by CEO PIA to pull the national flag carrier out of crises, stressed the need to make collective efforts and aggressively promote the good things happening at PIA while KCCI, with an impressive membership base, can become a good partner of PIA in various fields.

    He was of the opinion that the airlines business has been growing in Pakistan as AirSial, AirBlue and SereneAir have been enjoying thriving businesses with aircrafts flying at full capacity therefore, PIA must also focus on improving the market share by offering its service at competitive rates through cost reduction. “In this regard, the domestic industry has to be integrated with PIA which would certainly reduce cost and save valuable foreign exchange,” he added.

  • Stock market ends in red as profit booking continues

    Stock market ends in red as profit booking continues

    KARACHI: The Pakistan Stock Exchange (PSX) witnessed a subdued trading session on Wednesday, as the stock market ended the day with a marginal loss of 31 points. The benchmark KSE-100 index settled at 46,644 points, slipping slightly from the previous day’s closing of 46,675 points. The market showed signs of cautious sentiment as investors opted for profit booking after recent gains.

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  • PTCL declares 5pc decline in annual profit to Rs6.03 billion

    PTCL declares 5pc decline in annual profit to Rs6.03 billion

    KARACHI: Pakistan Telecommunication Company Limited (PTCL) on Wednesday announced a five percent decline in annual profit for the period ended December 31, 2020.

    According to financial results, the company announced after tax profit of Rs6.03 billion for the year 2020 as compared with the profit of Rs6.35 billion in the preceding financial year.

    The company declared earnings per share at Rs1.18 for the year ended on December 31, 2020 as compared with Rs1.24 in the preceding year.

    The company had announced no cash dividend or bonus share for the year under review.

    The gross profit of the company fell to Rs14.99 billion for the year 2020 as compared with Rs16.98 billion in the preceding financial year, showing a decline of 11.72 percent.

    Administrative expenses of PTCL were almost flat at Rs6.7 billion as compared with Rs6.75 billion a year ago.

  • Rupee advances by four paisas against dollar

    Rupee advances by four paisas against dollar

    The Pakistani Rupee demonstrated resilience in the foreign exchange market on Wednesday, making a noteworthy advancement of 04 paisas against the US Dollar.

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  • MCB Bank declares 21pc rise in annual profit amid unprecedented growth in gain on securities

    MCB Bank declares 21pc rise in annual profit amid unprecedented growth in gain on securities

    KARACHI: MCB Bank on Wednesday announced an impressive 21 percent increase in net profit for the year ending December 31, 2020, primarily driven by remarkable growth in gains on securities.

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