Day: July 6, 2021

  • Sales tax rate on petrol slashed

    Sales tax rate on petrol slashed

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday reduced sales tax to 16.40 per cent ad valorem on supply of petrol.

    The FBR issued SRO 860(I)/2021 to reduce the sales tax on petrol.

    Through the SRO the sales tax rate on petrol has been reduced to 16.40 per cent ad valorem from 17 per cent.

    The sales tax rates on kerosene oil and light diesel are 6.7 per cent and 0.20 per cent, respectively.

    The FBR kept the sales tax rate at 17 per cent unchanged for high speed diesel oil.

    The rates of sales tax on petroleum products have been reduced so the government absorbs the high prices in the international markets and pass on the lesser effect to the consumers.

  • SBP decides to impose penalty on banks for missing housing loan disbursement target

    SBP decides to impose penalty on banks for missing housing loan disbursement target

    KARACHI: The State Bank of Pakistan (SBP) on Tuesday decided to impose penalty of banks for falling disbursement of housing loans below given targets.

    The SBP said that through Circular No. 03 of 2021, whereby Government’s Mark-up Subsidy Scheme (G-MSS) for Housing Finance was issued.

    Banks are expected to make all-out efforts to harness full potential of Scheme.

    Accordingly, in April 2021, SBP assigned monthly mandatory targets of number of housing units and amount of disbursements (G-MSS targets) to banks in proportion to share in total banking assets.

    In view of foregoing, it has been decided that penalty will be imposed on banks falling short of their G-MSS targets w.e.f July 31, 2021 on both targets of number of housing units and amount of disbursements.

    A baseline penalty will be charged on shortfall from cumulative targets till July 31, 2021 while higher penalty will be charged on shortfall from targets of subsequent months.

    The penalty charged on a bank will be adjusted after review of bank’s efforts in terms of logins of applications, approvals of housing finance, results of SBP’s latest mystery shopping surveys, involvement of bank’s management, evidence of board information and support, sale and marketing efforts, innovation in delivery channels, capacity building of staff and human resource (headcount) involved in G-MSS.

    To assess efforts, State Bank will, if required, collect information from banks which fail to meet their targets.

  • SBP announces timeline for implementing IFRS 9

    SBP announces timeline for implementing IFRS 9

    KARACHI: State Bank of Pakistan (SBP) on Tuesday announced timeline for implementing International Financial Reporting Standards 9 (IFRS 9). The central bank said that it has been decided to implement the IFRS 9 from January 01, 2022.

    The SBP said that through Circular No. 04 dated October 23, 2019 wherein the effective date of IFRS 9 implementation and its transition requirements were advised.

    However, keeping in view of COVID-19 impact and banking industry representations, it has been decided to implement the IFRS 9 from January 01, 2022 instead of its earlier implementation date of January 01, 2021.

    Meanwhile, the banks/DFIs/MFBs (hereinafter referred as Financial Institutions) are required to perform the following tasks:

    #ParticularsTimeline
    1 Submission of IFRS 9 compatible pro forma Financial Statements for
     year-ending 2020 and 2021 (as per the requirements given in para 2(a) and Annex-I of BPRD Circular No. 04 dated October 23, 2019)
      Jul 15, 2021 Mar 31, 2022  
    2 Parallel Run Implementation of IFRS 9   Submission of Parallel Run Results for period ending Mar 31, 2021   Submission of Parallel Run Results for period ending Jun 30, 2021   Submission of Parallel Run Results for period ending Sep 30, 2021  Jul 30, 2021 Aug 31, 2021 Oct 31, 2021  

    The central bank said that it is aware of the fact that IFRS 9 implementation involves considerable judgment on part of the Financial Institutions (FIs) particularly on the Expected Credit Loss (ECL) Methodology.

    In this regard, the SBP, in line with best international practices, has developed “IFRS 9 application instructions” for ensuring smooth, robust and consistent implementation of IFRS 9 in the banking industry.

    The aim of these instructions is to achieve standardized practices with respect to the expected credit loss accounting and to draw out the SBP’s expectations from the FIs, where they are expected to exercise considerable judgment and/or elect to use simplifications and other practical expedients permitted under the Standard. Notwithstanding, the FIs are advised to develop their own Credit Conversion Factor and Loss Given Default models till Dec 31, 2021.

    The instructions enclosed herewith will be used by the FIs for their parallel reporting purposes only and these shall not be considered as final instructions, which will be issued by SBP subsequently based on the parallel run results.

    Further, for ECL to be recognized in 2022, SBP will provide timeline by Dec 2021 for absorption of ECL, for CAR purposes, after evaluation / assessment of individual FIs.

    During the parallel reporting period, FIs non-compliance will not attract punitive action; however, any non-compliance of specific provisions of these instructions will be disclosed by the FI in its pro forma financial statements and parallel run results along with reasons thereof.

  • Stocks ease amid range bound trading

    Stocks ease amid range bound trading

    KARACHI: The stock market ended down by 83 points on Tuesday in a range bound trading activity during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,346 points as against previous day’s closing of 47,429 points, showing a decline of 83 points.

    Analysts at Arif Habib Limited said that the market traded range bound today, oscillating between -187 points and +236 points, closing the session with decline of 83 points.

    The index went up earlier in the session that saw across the board buying activity, however, selling pressure took over later on that drove stock prices down, particularly in Power, Technology, Steel and Refinery sectors.

    Banking sector remained muted with limited price uptick in HBL, whereas E&P sector saw continued selling pressure in OGDC and PPL to close below respective LDCPs.

    Cement sector performed well today on the back of an increase in cement price / bag in South region. Among scrips, HASCOL led the table with 49.8 million shares, followed by WTL (48.8 million) and BYCO (29.9 million).

    Sectors contributing to the performance include Power (-54 points), Technology (-35 points), Refinery (-32 points), Textile (-25 points), Vanaspati (-17 points), Banks (+49 points) and Fertilizer (+28 points).

    Volumes increased from 494.5 million shares to 541.3 million shares (+9 per cent DoD). Average traded value also increased by14 per cent to reach US$ 111.2 million as against US$ 97 million.

    Stocks that contributed significantly to the volumes include HASCOL, WTL, BYCO, PIAA and GGL, which formed 32 per cent of total volumes.

    Stocks that contributed positively to the index include HBL (+50 points), AGP (+20 points), KOHC (+17 points), ENGRO (+17 points) and PSO (+15 points). Stocks that contributed negatively include HUBC (-48 points), TRG (-30 points), NRL (-21 points), UNITY (-17 points) and SNGP (-14 points).

  • KIBOR rates on July 06, 2021

    KIBOR rates on July 06, 2021

    KARACHI: State Bank of Pakistan (SBP) on Tuesday issued following Karachi Interbank Offered Rates (KIBOR) on July 06, 2021.

     TenorBIDOFFER
    1 – Week6.907.40
    2 – Week6.957.45
    1 – Month7.017.51
    3 – Month7.207.45
    6 – Month7.417.66
    9 – Month7.508.00
    1 – Year7.578.07
  • FBR directs car manufacturers to pay KIBOR+3% on late delivery

    FBR directs car manufacturers to pay KIBOR+3% on late delivery

    KARACHI: In order to avail concessionary rate of duty and taxes, the Federal Board of Revenue (FBR) has made it mandatory for car manufacturers to pay KIBOR+3 on late delivery of motor vehicles.

    In order to implement the decision, the FBR issued SRO 837(I)/2021. The FBR said: “The concessionary customs duty for various models of new entrants under Automotive Development Policy (ADP) 2016-21 to continue for five years from date of first manufacturing certificate of respective various issued by the Engineering Development Board (EDP) or up to June 30, 2026, whichever is earlier.

    “The importer-cum-assembler or Original Equipment Manufacturer (OEM) shall pay KIBOR+3 per cent per annum to the customer against late delivery exceeding 60 days of initial booking on the whole of the deposited amount. Statement/details of reimbursement at KIBOR+3 per cent against deliveries beyond 60 days shall be submitted to EDB or Input-output Coefficient Organization (IOCO) bi-annually.”

  • Rupee depreciates by 19 paisas against dollar

    Rupee depreciates by 19 paisas against dollar

    KARACHI: The Pak Rupee depreciated by 19 paisas against the dollar on Tuesday owing to higher demand for import payments, dealers said.

    The rupee ended at Rs158.37 to the dollar from the previous day’s closing of Rs158.18 in the interbank foreign exchange market.

    The dealers said that payment demand for import had witnessed an increase as economic activities had gained momentum.

    The dealers said that the rupee may rebound in the coming days owing to substantial inflows of export receipts and workers remittances.

  • SBP issues customers exchange rates on July 06, 2021

    SBP issues customers exchange rates on July 06, 2021

    KARACHI: The State Bank of Pakistan (SBP) on Tuesday issued customers’ exchange rates on the basis of weighted average rates of commercial banks.

    The SBP said that the data is compiled and disseminated for information only. These Exchange Rates are an estimate of the Exchange Rates quoted by various Commercial Banks to their clients.

    They are compiled from the Exchange Rate sheets issued daily by various Commercial Banks providing their indicative Exchange Rates for commercial transactions with customers.

    CURRENCYBUYINGSELLING
    AED43.088243.1824
    AUD119.9398120.1974
    CAD128.4550128.7341
    CHF171.8781172.2541
    CNY24.512324.5644
    EUR188.0485188.4634
    GBP219.6704220.1619
    JPY1.42691.4301
    SAR42.172242.2629
    USD158.1294158.4927
  • Prime Minister inaugurates first phase of Gwadar Free Zone

    Prime Minister inaugurates first phase of Gwadar Free Zone

    GWADAR: Prime Minister Imran Khan on Monday inaugurated the first phase of Gwadar Free Zone besides performing the groundbreaking of its second phase spread over 2,200 acres and also inaugurated three factories.

    Addressing the launch of development projects and the signing ceremony of Memoranda of Understanding here in the port city, the prime minister said Gwadar would open up new avenues of opportunities for regional trade.

    The prime minister said the future of Pakistan belonged to Gwadar, emerging as the ‘focal point of development’ and ensuring prosperity for the entire country.

    Imran Khan mentioned the recently announced Rs 730 billion development budget for Balochistan by the federal government and said it was “historic”, and was aimed at uplift of the province and at mitigating the longstanding deprivation of its people.

    “No country can progress unless it mainstreams all its areas and ensure development across the board,” he said, adding that connectivity was one of the major components of the Balochistan package.

    The prime minister who arrived in Gwadar on a day-long visit inaugurated the first phase of Gwadar Free Zone besides performing the groundbreaking of its second phase spread over 2,200 acres also inaugurated three factories.

    The prime minister said his vision of an emerging Pakistan was a steadfast nation that was committed to the prosperity of the country.

    He said the government was focused on ensuring the provision of basic amenities in Gwadar and Balochistan, particularly clean water and electricity to encourage industrialization.

    Imran Khan said the government was prioritizing development in far-flung areas of Balochistan, northern areas and rural Punjab.

    The prime minister mentioned that Gwadar International Airport would encourage regional trade and boost economic activity.

    He said a one-window operation was in progress to facilitate the investors and urged upon the provincial governments to ensure proper servicing of investors since the subject moved to them after the passage of the 18th Amendment.

    Imran Khan thanked the government of China for the launch of water and solar projects in Balochistan, particularly in Gwadar.

    “Pakistan can benefit from its strategic location and also from the expertise of its friend China, which is an economic power in the region,” he said.

    He also mentioned the technical education provided by China to the youth of Gwadar, which he said, would prove greatly helpful as the foreign investment grew in future.

    The prime minister mentioned several initiatives for the uplift of Gwadar including the university, employment under the Kamyab Jawan Programme, and the up-gradation of the equipment of local fishermen to ensure value addition of their catch.

    He said the Prime Minister Office would regularly monitor the progress on the development plans initiated in Gwadar on a monthly basis.

    The prime minister said regional countries had expressed interest in reaping the benefits offered by the Gwadar port.

    In this scenario, he expressed concern over the deteriorating law and situation in Afghanistan, stressing peace and stability was extremely important for the continuity of development.

    Chief Minister Balochistan Jam Kamal Khan said the provincial government had been collaborating with the CPEC Authority to resolve the issues of customs. He drew attention to the problem regarding the relocation of locals along Eastbay and mentioned that efforts were on for an amicable solution.

    He said the Public Sector Development Programme for the current fiscal year covered the entire Balochistan and mentioned that the extension of Gwadar Hospital up to 200 beds, construction of the first university in Gwadar, border markets and uplift of villages were on the cards.

    Chinese Ambassador Nong Rong said the cooperation between the governments of Pakistan and China had led several projects to see the light of the day. He said over the past eight years, the two countries accelerated their pace on several projects related to civic amenities, particularly clean water and solar plants.

    He said Gwadar was a showcase of the “Chinese solution” for Pakistan’s development.

    By taking a comprehensive way of development, he said, Gwadar Port would turn into a business hub. He said China would continue to extend support for a shared future with Pakistan.

    Chairman CPEC Authority Lt Gen (retd) Asim Saleem Bajwa said the Gwadar Free Zone spread over 60 acres had been completed and 46 enterprises had become operational.

    He said now, the groundbreaking of the second phase at the vast 2200 acres starting today would usher in a new era of prosperity in Gwadar and in Balochistan.

    He mentioned that the personal interest of Prime Minister Imran Khan resulted in materialization of trans-shipment policy, Afghan transit policy, the framework signing and execution of border trade with Iran and the start of work at Eastbay Expressway.

    He said several significant development projects were in progress including the Gwadar International Airport and a Vocational Institute to develop skills of the locals.

    Bajwa said conspiracies were on the rise against CPEC, however, the commitment of the government greatly helped thwart such challenges.

    Chairman Senate Sadiq Sanjrani, Foreign Minister Shah Mahmood Qureshi, Information Minister Chaudhry Fawad Hussain, Planning Minister Asad Umer, Minister for Defence Production Zubaida Jalal and Minister for Maritime Affairs Ali Zaidi were present.

    Earlier, the prime minister before landing at the Gwadar Airport took an aerial view of the infrastructure built at the seaport including the Expressway.

    On his arrival at the China Business Centre Hall, he was given a detailed briefing of the South Balochistan Development Package. He also held an interaction with the CPEC Workforce.

    Chairman CPEC Authority and Chinese Ambassador ink Memoranda of Understanding for cooperation on development in Gwadar.

    Moreover, seven regional countries including Saudi Arabia, United Arab Emirates, Kuwait, Oman, Egypt, Kenya and Qatar on Monday expressed their commitment for cooperation on the development of Gwadar.

    With their respective ambassadors present at the ceremony attended by Prime Minister Imran Khan, the regional countries expressed their support for the development of Pakistan’s port city.

    Prime Minister Imran Khan on the occasion also witnessed the signing of two Memoranda of Understanding with the government of China for carrying out development projects in Gwadar.

    The accords included the implementation agreement on setting up of 1.2 MGD desalination plant to resolve the shortage of drinking water for the residents of Gwadar.

    Other agreements included China’s grant for solar generators for South Balochistan, and the groundbreaking of North Gwadar Free Zone and Enterprises.

    Also on the occasion, the Chinese investors through video-link from Shanghai showed the ‘Expression of Commitment for Investment’. Those who pledged to invest in Balochistan’s different sectors included Huang Weiguo (textile), Huang Daoyuan (prefabricated technology), Fang Hongyan (agriculture), Shen Jian (wool spinning), David Dia and Chen Yi (dairy processing) and Bao Dequan (textile).

    The factories inaugurated on the occasion included the chemical fertilizer factory, Gwadar Animal Vaccination factory and lubricant factory, besides the opening of Gwadar Fertilizer Plant, Gwadar Animal Vaccine Plant, Henan Agricultural Industrial Park, Hengmei Lubricants Plant, Gwadar Free Zone Phase-2, and Gwadar Expo Centre.

    (Courtesy: Associated Press of Pakistan)

  • Pak-Iran trade to start soon through Gwadar Port: Bajwa

    Pak-Iran trade to start soon through Gwadar Port: Bajwa

    ISLAMABAD: Work for Iran’s trade through the Gwadar Port (in and out) is in progress and the trade will start soon through the port, Chairman China Pakistan Economic Corridor (CPEC) Authority Lt. Gen. (Retd) Asim Saleem Bajwa said on Monday.

    “The Ramadan-Gabd crossing point near Gwadar is active and fully functional now, fencing work with Pakistan-Iran border is going on rapidly and new border markets are being established at the crossing points,” he said adding the smuggling to and from Iran is decreasing due to increase in regulated trade.

    According to state media, the Chairman said after completion of development works of Gwadar Port and first phase of Gwadar Free Zone, Prime Minister Imran Khan was going to perform the ground breaking of second phase of the Zone.

    He said as compared to the first phase which comprised of 60 acres of land, the second phase would be a huge project comprising of 2200 acres of land.

    Chairman Bajwa said around 7 to 8 big Chinese investors from Shanghai would also participate in the ground breaking ceremony where they would make commitments in Gwadar Zone and inform about their future plans in Pakistan.

    He said some 46 enterprises were engaged in the Free Zone phase-I while 12 factories were being established out of them three were completed.

    He informed that the traffic at the port was increasing everyday and last year the trade volume increased by hundreds of times as 60,000 MT of cargo was transported during the year 2020-21 compared to only 1300 MT in the preceding year.

    Besides, he said five LPG vessels were berthed at the Gwadar Port.In future, he said the cargo volume would increase with even higher pace as interest for transshipment and industrialization was increasing with every passing day.

    He said the Prime Minister would also sign an accord for installation of desalination plant in the city with capacity of 1.2 million gallons per day. He said the project would complete within a year and this would be a gift from the Chinese government.

    Furthermore, he said another water desalination plant with capacity of five million gallons per day was also included in the Prime Minister South Balochistan package.

    Provision of basic facilities including electricity, water and health was the prime focus of Prime Minister Imran Khan, he added.