Pkrevenue.com

Author: Hamza Shahnawaz

  • Dollar makes sharp midday gain to reach PKR 186

    Dollar makes sharp midday gain to reach PKR 186

    KARACHI: The US dollar made a sharp gain against the Pakistan Rupee (PKR) to reach Rs186 during midday trading at interbank foreign exchange market.

    The dollar gained around Rs1.56 to reach Rs186 during the midday trading against the last day’s closing of Rs184.44 in the interbank foreign exchange market.

    READ MORE: Dollar climbs up to Rs184.44 at interbank closing

    Currency analysts said that due to import and external debt payments the local currency was under severe pressure.

    The recent measures of the State Bank of Pakistan (SBP), including raising the key policy rate by 2.5 per cent, have failed to support the local currency.

    The fresh wave of rupee depreciation may be attributed to higher demand of the foreign currency for external debt repayment.

    READ MORE: Dollar ends PKR recovery spree; closes at Rs182.54

    Previously, the rupee made significant recovery for seven consecutive trading sessions after the central bank announced a sharp increase in key policy rate.

    The SBP on April 07, 2022 announced 2.5 per cent increase in interest rate to enhance the key policy rate to 12.25 per cent from 9.75 per cent. The rupee was at all-time low Rs188.18 to the dollar on the day of monetary policy announcement.

    However, following the announcement the rupee rallied for seven straight days and recovered Rs6.63 against the dollar.

    READ MORE: Dollar plummets against PKR for seven consecutive days

    The appreciation in dollar value may be attributed to the further depletion in foreign exchange reserves of the county.

    Pakistan’s foreign exchange reserves hit a 22-month low after falling for nine consecutive weeks to $17.03 billion.

    According to data released by the State Bank of Pakistan (SBP), the foreign exchange reserves of the country fell by $449 million to $17.028 billion by week ended April 08, 2022 as compared with $17.477 billion a week ago.

    READ MORE: Dollar retreats for 6th straight day; falls to Rs181.58

    The foreign exchange reserves were at $17.971 billion by week ended June 26, 2020.

    Pakistan’s foreign exchange reserves have declined by $10.23 billion in the past seven months owing to extreme pressure of dollar demand for import payments and external repayment of government debt.

    The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021.

    READ MORE: Rupee up 13 paisas to continue recovery against dollar

  • Pakistan’s FDI falls to $1.28 billion in July – March

    Pakistan’s FDI falls to $1.28 billion in July – March

    KARACHI: The inflow of foreign direct investment (FDI) into Pakistan has declined by two per cent to $1.28 billion during first nine months (July-March) 2021/2022, according to detail released by the State Bank of Pakistan (SBP) on Tuesday.

    READ MORE: Foreign investment into Pakistan surges by 131%

    The country recorded the FDI inflow to the tune of $1.31 billion in the corresponding months of the last fiscal year.

    The portfolio investment recorded 30 per cent decline during the first nine months of the fiscal year 2021/2022. The capital market witnessed outflow of $341.7 million during the period under review as compared with $262.7 million during the same period of the last fiscal year.

    READ MORE: Foreign investment surges by 176% during July – January

    The total inflow of private foreign investment recorded 10 per cent decline to $943.4 million during July – March 2021/2022 as compared with $1.048 billion in the corresponding period of the last fiscal year.

    READ MORE: Pakistan’s foreign investment surges by 73% in 5 months

    The country witnessed massive jump in inflows under debt securities. The country received funds worth $502.6 million through sale of securities in the international markets during the first nine months of the current fiscal year as compared with $3.5 million outflows in the same period of the last fiscal year.

    The total foreign investment, including debt securities, grew by 38.4 per cent to $1.446 billion during July – March 2021/2022 as compared with $1.045 billion in the corresponding months of the last fiscal year.

    READ MORE: Carrefour enhances Pakistan investment to Rs10.5 billion

  • Foreign currency rates in Pak Rupee – April 20, 2022

    Foreign currency rates in Pak Rupee – April 20, 2022

    KARACHI: Following are the open market exchange rates of foreign currencies in Pak Rupee (PKR) in Pakistan on April 20, 2022 (The rates are updated at 06:00 AM (Pakistan Standard Time):

    CurrencyBuyingSelling
    Australian Dollar (AUD)133.00135.00
    Bahrain Dinar (BHD)386.50388.50
    Canadian Dollar (CAD)143.00145.00
    China Yuan (CNY)23.5523.95
    Danish Krone (DNK)23.6523.95
    Euro (EUR)196.50199.00
    Hong Kong Dollar (HKD)16.6016.85
    Indian Rupee (INR)2.032.10
    Japanese Yen (JPY)1.411.44
    Kuwaiti Dinar (KWD)481.85484.35
    Malaysian Ringgit (MYR)36.7537.10
    NewZealand $ (NZD)96.8597.55
    Norwegians Krone (NOK)17.5017.75
    Omani Riyal (OMR)392.95394.98
    Qatari Riyal (QAR)39.8540.45
    Saudi Riyal (SAR)48.7049.40
    Singapore Dollar (SGD)132.00134.50
    Swedish Korona (SEK)18.7519.00
    Swiss Franc (CHF)160.35161.25
    Thai Bhat (THB)4.804.90
    U.A.E Dirham (AED)49.7050.40
    UK Pound Sterling (GBP)237.00239.50
    US Dollar (USD)183.50185.20

    Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.

    Foreign currency rates in Pak Rupee – April 19, 2022
  • Pakistani Rupee to US Dollar on April 20, 2022

    Pakistani Rupee to US Dollar on April 20, 2022

    KARACHI: Following are the rates of buying and selling of one US dollar (USD) in Pakistani Rupee (PKR) in the open market on April 20, 2022:

    Buying: Rs 183.50 to the US Dollar

    Selling: Rs 185.20 to the US Dollar

    The buying rate means an exchange company or a bank buys foreign currency from a customer.

    The selling rate means an exchange company or a bank sells the foreign currency from a customer.

    The rate has been updated at 06:00 AM Pakistan Standard Time (PST).

    The US Dollar /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

    Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.

    Pakistani Rupee to US Dollar on April 19, 2022
  • Pakistani Rupee to UAE Dirham on April 20, 2022

    Pakistani Rupee to UAE Dirham on April 20, 2022

    As of April 20, 2022, the exchange rates for buying and selling one UAE Dirham (AED) in Pakistani Rupee (PKR) in the open market are as follows:

    (more…)
  • Pakistani Rupee to UK Pound Sterling on April 20, 2022

    Pakistani Rupee to UK Pound Sterling on April 20, 2022

    KARACHI: Following are the rates of buying and selling of one UK Pound Sterling (GBP) in Pakistani Rupee (PKR) in the open market on April 20, 2022:

    Buying: Rs 237.00 to the UK Pound Sterling

    Selling: Rs 239.50 to the UK Pound Sterling

    The buying rate means an exchange company or a bank buys foreign currency from a customer.

    The selling rate means an exchange company or a bank sells the foreign currency from a customer.

    The rate has been updated at 06:00 AM Pakistan Standard Time (PST).

    The UK Pound Sterling /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

    Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.

    Pakistani Rupee to UK Pound Sterling on April 19, 2022
  • Pakistani Rupee to Euro on April 20, 2022

    Pakistani Rupee to Euro on April 20, 2022

    KARACHI: Following are the rates of buying and selling of one Euro (EUR) in Pakistani Rupee (PKR) in the open market on April 20, 2022:

    Buying: Rs 196.50 to the Euro

    Selling: Rs 199.00 to the Euro

    The buying rate means an exchange company or a bank buys foreign currency from a customer.

    The selling rate means an exchange company or a bank sells for foreign currency from a customer.

    The rate has been updated at 06:00 AM Pakistan Standard Time (PST).

    The Euro /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

    Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.

    Pakistani Rupee to Euro on April 19, 2022
  • Pakistani Rupee to Saudi Riyal on April 20, 2022

    Pakistani Rupee to Saudi Riyal on April 20, 2022

    KARACHI: Following are the rates of buying and selling of one Saudi Riyal (SAR) in Pakistani Rupee (PKR) in the open market on April 20, 2022:

    Buying: Rs 48.70 to the Saudi Riyal

    Selling: Rs 49.40 to the Saudi Riyal

    The buying rate means an exchange company or a bank buys foreign currency from a customer.

    The selling rate means an exchange company or a bank sells for foreign currency from a customer.

    The rate has been updated at 5:55 AM Pakistan Standard Time (PST).

    The Saudi Riyal /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

    Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.

    Pakistani Rupee to Saudi Riyal on April 19, 2022
  • Mismatch identified in GST rates on supply, sales by IPPs

    Mismatch identified in GST rates on supply, sales by IPPs

    KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) has identified mismatch in General Sales Tax (GST) rates between supply and sales resulting in excessive sales tax refundable build up.

    The OICCI in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR), said that Independent Power Producers (IPPs) revenue mainly comprises of two components “Capacity Price Payment” (CPP) and “Energy Price Payment” (EPP).

    READ MORE: Tax rate rationalization proposed for exploration, production companies

    As per the current sales tax law output sales tax is only applicable on EPP as a result IPPs are not able to fully adjust the input sales tax charged leading to build up of sales tax refund.

    It is recommended that the IPP sector is already facing circular debt issues and in addition to that huge amount of Sales Tax Refunds are further worsening the working capital conditions of the industry. It is proposed that supply of fuel to IPPs (Coal/ Gas / HSD, etc.) should be exempted from Input Sales Tax.

    READ MORE: FBR urged to restore sales tax exemption on LED lights

    The OICCI said since 1994 the dividend income paid by Independent Power Producers (IPP’s) was subject to tax @ 7.5 per cent under the repealed Income Tax Ordinance, 1979 (ITO, 79). This was also the full and final tax in the hands of recipients and IPPs’ shareholders did not have to pay any additional tax when filing their tax returns, which have been revised as follows vide Finance Act 2019:

    i. In clause (a), the reduced tax rate of dividend of 7.5 per cent for power generation industry (covering power purchaser, producer, and supplier of coal to power producer) has been restricted to power producers only where such dividend is pass through under CPPA, and

    ii. Higher rate of tax of 25 per cent has been introduced under clause (c) of the said section for the Companies that have nil tax liability due to carry forward of losses, tax exemption or tax credits.

    READ MORE: Minimum tax 0.2% suggested for listed chemical companies

    Hence, in case of power producers (having non-pass-through agreements with CPPA) and coal suppliers, that previously enjoyed reduced rate under clause (a), the tax rate has been drastically increased from 7.5 per cent to 25 per cent due to exclusion from revised clause (a) and applicability of the new clause (c) as these entities are currently in tax holiday.

    It is recommended:

    i. Clause (a) of Division III of Part I of First Schedule as applicable before Finance Act 2019, should be reinstated, to include power producer companies (having non-pass-through agreements) and coal suppliers.

    ii. Similarly, amendment be made for the withholding tax rates specified in clause (a) of Division I of Part III of the First Schedule, by reinstating the position prior to Finance Act 2019.

    iii. The new clause (c) of Division III of Part I of First Schedule, inserted by Finance Act, 2019 be removed being against the fundamental principles of ITO, 2001.

    READ MORE: Proposals for capital gain on disposal of securities by insurance companies

    The chamber further informed that as a result of the passing of the Finance (Supplementary) Act, 2022 (“FSA”), the exemption provided to the power sector (“IPPs”) from payment of Sales Tax on the import of machinery and equipment provided under Table-3 of the Sixth Schedule to the Sales Tax Act, 1990 has now been withdrawn.

    Under various power policies, the GOP has guaranteed the exemption of sales tax on the import of plant and machinery till the Commercial Operations Date of the IPPs.

    It is recommended either the exemptions are restored or a proviso similar to the proviso inserted by the FSA in clause 132 Part I of the Second Schedule to the Income Tax Ordinance, 2001 be inserted.

    (Provided further that the exemption under Serial 4, 5 & 6 Table 3 of the Sixth Schedule to the Sales Tax Act, 19s90 shall be available to persons who entered into the agreement or letter of intent is issued by the Federal or Provincial Government for setting up an electric power generation project in Pakistan on or before the thirtieth day of June 2021 and who obtains a letter of support on or before the thirtieth day of June 2023.

  • Tax rate rationalization proposed for exploration, production companies

    Tax rate rationalization proposed for exploration, production companies

    KARACHI: The exploration and production companies are subject to tax rate at 40-50 per cent instead the prevailing rate of 29 per cent, which should be aligned with the tax rate applicable on other sectors.

    Overseas Investors Chamber of Commerce and Industry (OICCI) in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR) said that as per the Fifth Schedule of the Income Tax Ordinance 2001, the applicable tax rate for the E&P sector ranges from 40 per cent and 50 per cent – 55 per cent, whereas the general corporate tax rate is 29 per cent.

    READ MORE: FBR urged to restore sales tax exemption on LED lights

    The corporate tax rate for E&P Companies needs to be aligned with general corporate tax rate of 29 per cent.

    As per Rule 3 of Part 1 of Fifth Schedule, depletion is calculated @ 15 per cent of the gross receipts representing well-head value of production, but not exceeding 50 per cent of taxable income. E&P industry interprets above by calculating depletion at 15 per cent of Gross Revenue before royalty deduction. Tax authorities calculate depletion at 15 per cent of Gross Revenue after deduction of royalty.

    READ MORE: Minimum tax 0.2% suggested for listed chemical companies

    It is recommended that definition of Wellhead Value in Rule 6 (8) be deleted and Rule 3 rephrased as “depletion allowance to be calculated @ 15 per cent of gross receipts, before royalty deduction”.

    Through the Tax Laws (Second Amendment) Ordinance, 2021, an amendment is introduced in the Third Schedule of the Income Tax Ordinance, 2001 whereby entry related to 100 per cent tax depreciation in respect of “Below Ground Installations” has been omitted. E&P industry is capital intensive and high-risk industry, as such 100 per cent tax depreciation was allowed in respect of Below Ground Installations (entry in third schedule specific to E&P companies since 1979 in line with International best practices).

    READ MORE: Proposals for capital gain on disposal of securities by insurance companies

    It is recommended that changes introduced through the Tax Laws (Second Amendment) Ordinance, 2021 in the Third Schedule of the Income Tax Ordinance, 2001 should be reversed and previous position of allowing 100 per cent tax depreciation in the year of incurrence should be restored.

    The OICCI said 10 per cent Tax credit u/s 65B on Investments made by Industrial Undertakings in Plant & Machinery for extension, expansion, Balancing, modernization, replacement. This incentive was introduced through Finance Act 2010 and was available until June 30, 2019.

    READ MORE: FBR urged to align corporate tax rate for banks

    It is recommended that this incentive to be extended up to 2024. Clarification on definition of industrial undertaking to include E&P Companies assessed under Fifth Schedule of ITO 2001.