Month: March 2021

  • No sale to be allowed without tax stamp: FBR

    No sale to be allowed without tax stamp: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that no product would be allowed to be removed from a production site without affixation of tax stamps with effect from July 01, 2021.

    The tax stamps to be obtained/procured from and applied by FBR’s Licensee M/s. AJCL/MITAS/Authentix Consortium.

    The FBR said that after awarding license of the Track and Trace system to the successful bidder, FBR has issued four Sales Tax General Orders for Four specified Sectors. These sectors include Tobacco, Sugar, Cement and Fertiliser.

    These Sales Tax General Orders are being issued under the provisions of Section 40C(2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules, 2006.

    These laws mandate FBR to notify the date for the implementation of Electronic Monitoring of productions and sales of goods in the manner prescribed in the law on all manufacturing sites.

    FBR has directed All manufacturers of specified Products to make necessary arrangements for importation of applicators and other equipment required for successful installation and implementation of Track and Trace System at their production facilities.

  • Zeeshan Merchant elected KTBA president for second consecutive term

    Zeeshan Merchant elected KTBA president for second consecutive term

    KARACHI: Muhammad Zeeshan Merchant has been elected as president of Karachi Tax Bar Association (KTBA) for the second consecutive time in the elections of the bar held on Thursday.

    Merchant secured 401 votes for the slot of president. The other candidate Muhammad Imtiaz Zubairi could get only 141 votes.

    It is pertinent to mention that it was the first time in the past 20 years that the KTBA members were casting their votes for all the slots.

    Merchant has been elected as the president of the KTBA for the second consecutive term for the year 2021. He already served on the same portfolio for the year 2020.

    He was contesting for the presidentship of the KTBA from the platform of United Panel. All the candidates of the United Panel have been elected with a big margin.

    Muhammad Memood Bikiya has been elected vice president.

    Syed Faiq Raza Rizvi, Shiraz Khan and Haris Tufail have been elected for the slot of honorary general secretary, librarian and honorary joint secretary, respectively.

    The successful members of the executive committee are included: Asim Rizwani Sheikh, Abdul Wahab, Irfan Ghafoor, Muhammad Mustafa Rahim, Raeel Fatima, Syed Ejaz Ahmed Jafry, Saud ul Hasan and Atif Nawaz.

  • Importers face surcharges on overstayed consignments

    Importers face surcharges on overstayed consignments

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has discussed the matter of overstayed consignments at warehouses which was causing surcharges on clearance to importers.

    FPCCI President Mian Nasser Hyatt Maggo on Thursday said that due to COVID-19 commercial activities are down causing overstay of consignments and subsequently facing surcharge on clearance. During the meeting of the FPCCI Advisory Council on Budget various issues were discussed including period of limitation of warehousing.

    The President FPCCI said that the economic slowdown, recession in the market and financial constraints due to COVID-19, importers are unable to clear their consignments in time which has led to a situation where large quantities of warehoused goods have piled up incurring heavy surcharge as no general concession has so far been extended by the Federal Government in this matter. The situation is also impacting substantial amount of revenue.

    During the meeting of the Advisory Council headed by Mr. Zakariya Usman former President of FPCCI issue of importers of raw material were presented who are facing problems due to their consignments lying in customs bonded warehouses beyond the period stipulated under section 98 of the Customs Act, 1969. The meeting resolved to approach FBR to consider grant of waiver of surcharge on overstayed consignments in order to alleviate the problems of the importers.

    Mian Nasser Hyatt Maggo President FPCCI said that the government under the present difficult circumstances may favourably consider the enhancement of customs bonded warehousing period limitation up 60 days so as to mitigate hardship of importers.

  • Car sales increase by 24 percent in eight months

    Car sales increase by 24 percent in eight months

    KARACHI: The sales of locally manufactured motor cars registered an increase of 24 percent during first eight months (July – February) 2020/2021 owing to pick up in economic activity and lower policy rate.

    According to data released by Pakistan Automotive Manufacturers Association (PAMA) the sales of locally manufactured motor cars increased to 113,836 units during first eight months of the current fiscal year as compared with 91,515 units in the corresponding months of the last fiscal year.

    Analysts at Arif Habib Limited attributed the increase to pick up in economic activity resulting in high demand of automobiles. Further, lower policy rate also helped in growth of car sales.

    A growth of 35 percent witnessed in February 2021 on year on year basis to 16,436 units when compared with 12,183 units in February 2020.

    Analysts at Topline Securities said that Pak Suzuki (PSMC) has yet again successively taken the lead with a massive increase of 66 percent YoY.

    The rise is primarily driven by Alto and Ravi with sales of 4,245 (+162 percent YoY) and 1,268 (106 percent YoY) units in Feb-2021, respectively.

    Honda Car (HCAR) registered sales increase of 13 percent YoY, while INDU’s sales declined by 3 percent YoY.

    New entrants into Pak Auto space, Hyundai Nishat sold 651 units in Feb-2021, while Lucky Motor sold ~2,500 units, as per our channel checks.

    Passenger Car sales declined by 6 percent MoM in Feb-2021. The decrease in numbers has been on the back of decline in INDU sales (-20 percent MoM) largely due to seasonally high January sales and some supply-side disruptions.

    Atlas Honda (ATLH) recorded motorbike sales of 104,005 units in Feb-2021, up 16 percent YoY. In 8MFY21, sales have increased by 19 percent YoY.

  • Foreign exchange reserves inch up to $20.158 billion

    Foreign exchange reserves inch up to $20.158 billion

    KARACHI: The liquid foreign exchange reserves of the country inched by $25 million to $20.158 billion by week ended March 05, 2021, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.133 billion a week ago.

    The official foreign exchange reserves of the SBP increased by $38 million to $13.016 billion by week ended March 05, 2021 as compared with $12.978 billion a week ago.

    The foreign exchange held by commercial bank, however, fell by $13 million to $7.142 billion by week ended March 05, 2021 as compared with $7.155 billion a week ago.

  • Stock market ends down by 912 points as selling continues

    Stock market ends down by 912 points as selling continues

    KARACHI: The stock market witnessed a massive fall of 912 points on Thursday as selling pressure continued over negative sentiments.

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 42,780 points as against previous day’s closing of 43,692 points, showing a decline of 912 points.

    Analysts at Arif Habib Limited said that the market saw another thrashing of 1003 points after posting an increase of 199 points during the session.

    Selling pressure kept building up by the end of session, where several stocks hit lower circuits, however, periodic buying contained the losses to -912 points by the end of session.

    Cement sector saw buying activity, whereas Banks, E&P, Power, O&GMC sectors contributed most to the decline in Index.

    Though FBR gave clarification on withdrawal of tax exemptions, the investors remained perturbed on anticipation of levy of additional taxes that made the leveraged investors closing their positions at market rates rather than meeting the margin requirements.

    In addition, tomorrow’s senate elections also had bearing on today’s session, where investors preferred staying away from the market than bearing the brunt from any surprise as was witnessed in the previous week.

    Among scrips, UNITY led the volumes with 34.8 million shares, followed by TRG (27.1 million) and HUMNL (21.4 million).

    Sectors contributing to the performance include Banks (-139 points), E&P (-118 points), Technology (-98 points), Textile (-74 points) and Cement (-70 points).

    Volumes increased from 363.2 million shares to 406 million shares (+12 percent DoD). Average traded value, on the contrary, declined by 16 percent to reach US$ 112.8 million as against US$ 134.6 million.

    Stocks that contributed significantly to the volumes include UNITY, TRG, HUMNL, WTL and KEL, which formed 30 percent of total volumes.

  • Customs reluctant in giving WeBOC access: ANF

    Customs reluctant in giving WeBOC access: ANF

    KARACHI: Commandant Anti-Narcotics Force (ANF) Brig. Syed Waqar Haider Rizvi has said that ANF’s examination procedure can be expedited if it was given access to WEBOC system which was being demanded since last three years but unfortunately Customs authorities were reluctant to give WEBOC access.

    “If we get access to WEBOC, it would make things easier for us and minimize the grievances being faced by business community. Although we have been constantly demanding access to WEBOC but KCCI must also do the same and take up this matter with higher authorities so that ANF gets WEBOC access which would surely prove favorable for all stakeholders”, he added while speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI).

    Deputy Director/ In-charge, Port Control Unit ANF Muhammad Ayub, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President KCCI Shamsul Islam, Chairman Law & Order Subcommittee Junaid ur Rehman, KCCI Managing Committee Members and others attended the meeting.

    While referring to inspections being carried out by ANF and Customs Authorities at the airports, he said that the Custom Authorities initially carry out the inspection of baggage while ANF staff was the last one to perform the same task at the airport which outrages many passengers as they have to go through the same procedure again.

    “Hence, we felt it necessary to request Customs Authorities to jointly carry out the examination with ANF officials so that passengers’ hardships could be minimized but the customs authorities have not taken ANF’s request into consideration.”

    Replying to concerns expressed by meeting participants over unavailability of ANF staff that often delays the examination, he said that majority of the Terminal Operators and port authorities were unwilling to give space to ANF for setting up a small office which was the basic reason for delays. However, ANF, with a workforce of 3,000 personnel only across Pakistan, was trying its best to deliver within the available limited resources.

    “All stakeholders including traders, port authorities, Customs, ANF and Pakistan Coast Guard must sit together to discuss and resolve problems surfacing due to poor repacking after examination”, Commandant ANF said while responding to apprehensions expressed by KCCI members over poor repacking that damages the goods in transit.

    He said that ANF was cognizant of the hardships being faced by importers and exporters due to delays in examination of goods and was trying its best to minimize the grievances by examining minimum number of containers.

    Commandant ANF suggested that KCCI should give a focal person so that the issues faced by its members in dealing with ANF could be swiftly resolved. “Frequent interaction between KCCI and ANF would help in resolving most of the issues”, he said, adding that ANF carries out its activities for the betterment of Pakistan without any compromises.

    “We have to work collectively for creating an enabling environment”, he said while extending full support and cooperation to KCCI in promptly dealing with ANF related issues.

    Speaking on the occasion, President KCCI Shariq Vohra stressed that ANF must focus on improving its perception and has to fully facilitate the business community as in many cases, the Force was being accused of creating hurdles and delaying the clearance procedure.

    He was of the opinion that interaction between KCCI and ANF must regularly take place so that the issues could be regularly discussed and amicably resolved. “We are not against ANF activities as they have a major responsibility on their shoulders which is to intercept the influx of drugs and narcotics. Although stringent efforts are needed from all stakeholders to make Pakistan a completely drugs-free state but, the examination procedure has to be speeded up as at times, delays cause severe losses to business community.”

    The meeting participant raised concerns over delays in examination by ANF which leads to causing losses on account of demurrage, detention and ungrounding charges. They also suggested that ANF must enhance number of workforce and resources while the obsolete scanners at the ports must also be replaced with the latest ones and more scanners must also be installed at all the ports in Karachi.

  • Remittances surge by 24 percent in eight months

    Remittances surge by 24 percent in eight months

    KARACHI: The inflow of workers’ remittances has increased by 24 percent to $18.74 billion during first eight months (July – February) 2020/2021, according to data released by State Bank of Pakistan (SBP) on Thursday.

    The SBP received $15.104 billion as workers’ remittances during the same months of the last fiscal year.

    The inflows during the month of February 2021 also posted 24 percent increase to $2.26 billion when compared with $1.82 billion in the same month of the last year.

    The inflows recorded robust growth of 46.7 percent, 56.8 percent and 19.5 percent from USA, UK and Saudi Arabia, respectively, during first eight months of the current fiscal year.

  • Rupee gains four paisas against dollar

    Rupee gains four paisas against dollar

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

    The rupee ended Rs157.09 to the dollar from previous day’s closing of Rs157.13 in the interbank foreign exchange market.

    Currency dealers said that the rupee made gain on supply of the foreign currency during the day.

    They however, said that the market was optimistic and hopes of inflows in shape of workers’ remittances and export receipts the rupee likely to make more gain in coming days.

  • Lucky Cement starts commercial operation in Iraq

    Lucky Cement starts commercial operation in Iraq

    KARACHI: Lucky Cement Limited on Thursday announced it has commenced commercial operation of cement production facility in Iraq.

    In a communication, the company said that the Greenfield cement production facility in Samawah, Iraq with a capacity of 1.2 million tons per annum has successfully commenced its commercial operations with effect from March 10, 2021.

    The cement production facility is a joint venture with Al-Shamookh group of Iraq.

    The company further said that consequent to the addition, its overseas cement capacity increased at 4.12 million tons per annum.

    Details of the overseas production facility are as follow:

    – Cement Grinding Plant in Basra, Iraq: 1.74 MTPA

    – Fully integrated cement plant in democratic republic of Congo: 1.18 MPTA

    – Fully integrated cement plant in Samawah, Iraq: 1.2 MPTA