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Author: Hamza Shahnawaz

  • Pakistani Rupee to US Dollar on June 06, 2022

    Pakistani Rupee to US Dollar on June 06, 2022

    KARACHI: Following are the rates of buying and selling of one US dollar (USD) in Pakistani Rupee (PKR) in the open market on June 06, 2022:

    Buying: Rs 197.60 to the US Dollar

    Selling: Rs 199.60 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 10:55 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 June 05, 2022
  • Pakistani Rupee to UAE Dirham on June 06, 2022

    Pakistani Rupee to UAE Dirham on June 06, 2022

    KARACHI: Following are the rates of buying and selling of one UAE Dirham (AED) in Pakistani Rupee (PKR) in the open market on June 06, 2022:

    Buying: Rs 53.50 to the UAE Dirham

    Selling: Rs 54.10 to the UAE Dirham

    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 10:50 AM Pakistan Standard Time (PST).

    The UAE Dirham /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 UAE Dirham on June 05, 2022
  • Pakistani Rupee to Euro on June 06, 2022

    Pakistani Rupee to Euro on June 06, 2022

    KARACHI: Following are the rates of buying and selling of one Euro (EUR) in Pakistani Rupee (PKR) in the open market on June 06, 2022:

    Buying: Rs 210.15 to the Euro

    Selling: Rs 212.15 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 10:45 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 June 05, 2022
  • Pakistani Rupee to UK Pound Sterling on June 06, 2022

    Pakistani Rupee to UK Pound Sterling on June 06, 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 June 06, 2022:

    Buying: Rs 245.60 to the UK Pound Sterling

    Selling: Rs 248.10 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 10:40 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 June 05, 2022
  • Pakistani Rupee to Saudi Riyal on June 06, 2022

    Pakistani Rupee to Saudi Riyal on June 06, 2022

    KARACHI: Following are the rates of buying and selling of one Saudi Riyal (SAR) in Pakistani Rupee (PKR) in the open market on June 06, 2022:

    Buying: Rs 52.35 to the Saudi Riyal

    Selling: Rs 52.90 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 10:35 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.

  • Compliance cost much higher for corporatization: PSX

    Compliance cost much higher for corporatization: PSX

    KARACHI: Pakistan Stock Exchange (PSX) has said that tax rates for compliance by corporate entities is much higher than the persons out of the tax net.

    The PSX in its proposals for budget 2022/2023 submitted to Federal Board of Revenue (FBR), said corporate business profits are taxed twice. Once at company level at 29 per cent and on dividend distribution at 15 per cent.

    READ MORE: FBR suggested reduction in tax rates for equity funds

    As compare to 44 per cent of total tax in case of companies, unincorporated businesses are being taxed from 0 per cent to 35 per cent in slabs.

    This inequality in taxation is discouraging corporatization and documentation as unincorporated businesses are subject to substantially lower taxes.

    Absence of clarity in tax laws is causing issues of taxation of Limited Liability Partnership (LLPs) as companies whereas LLPs are essentially AoPs with perpetual life.

    Removal of exemption on inter-corporate dividend under section 59B of the Income Tax Ordinance, 2001 is unfavorable to potential corporate groups discouraging compliance with the best practices of corporate governance requirements.

    READ MORE: PSX proposes tax exemption on property transactions

    The PSX said that inequality of taxation of business shall gradually be removed by reducing corporate tax rate/increasing tax rates for AoPs [First Schedule Part 1, Division I, II, IIA & III].

    Restoration of exemption on inter-corporate dividend between companies eligible for group taxation under section 59B of the Income Tax Ordinance, 2001.

    Giving rationale to the proposal, the PSX said that equality of tax regime will promote corporatization culture leading towards documentation and will therefore generate more tax revenue.

    Adding clarity with respect to status of LLP will encourage more business particularly in services sector to opt for this perpetual business structure. It will also help in increasing tax revenue from these segments.

    READ MORE: SMEs should be given tax credit to encourage listing

    Definition of AoP in section 80(2) of Income Tax Ordinance, 2001 be amended to include LLP till the time same tax rates are not applied to all forms of business.

    Part I, Second Schedule, clause 103C reinstated as follows:

    “Dividend income derived by a company, if the recipient of the dividend, for the tax year is eligible for group relief under section 59B.”

    READ MORE: FBR urged to eliminate minimum tax for listed companies

  • FBR suggested reduction in tax rates for equity funds

    FBR suggested reduction in tax rates for equity funds

    KARACHI: The Federal Board of Revenue (FBR) has been suggested to reduce income tax rates for private equity funds in the upcoming budget 2022/2023.

    Pakistan Stock Exchange (PSX) in its proposals for budget 2022/2023, stated that Revamped regulations in 2015 introduced different types of Private Funds by replacing Private Equity and Venture Capital (PE&VC) Regulations.

    READ MORE: PSX proposes tax exemption on property transactions

    Currently, pass-through status under the Income Tax Ordinance 2001 is available to only PE&VCs category. Moreover, current sunset clause up to June 2024 for PE&VC is detracting long-term investors from participating.

    A private fund (alternate fund) investing in listed securities attract Capital Gain Tax (CGT) at the rates that applies to unlisted securities (redemption of units of alternate funds will attract treatment of unlisted security under CGT regime, which is significantly higher for corporate investors).

    READ MORE: SMEs should be given tax credit to encourage listing

    The PSX suggested to insert proper definition of Private Fund referring to 2015 regulations. It also suggested to reinstate exemption to PE&VC as provided under clause 101 of part I of Second Schedule; in addition to: inclusion of Private Fund; and no sun-set clause.

    The PSX recommended that specific rate of 12.5 per cent CGT be provided in Division VII of 1st Schedule of the Income Tax Ordinance, 2001 as provided for mutual funds, CIS and REITs (if more than 70 per cent invested in listed equity securities and/or debt securities).

    READ MORE: FBR urged to eliminate minimum tax for listed companies

    The stock exchange also sought exemption provided in sub-clause (xii) of clause 11A and clause 47B of Part IV of the second schedule to include Private Fund.

    Giving rationale to the proposals, the PSX said that this sector can be developed with rational taxation. So far only 4 registered PE&VC funds will be unable to meet funding needs of SMEs/startups & to attract foreign investors. Revenue impact will be neutral to positive as only CIVs will be exempted but the investors will still be obliged to pay tax. The amendment will exempt private funds from applicability of withholding tax as it is a pass through entity.

    READ MORE: PSX proposes rationalizing tax rates for listed companies

  • PSX proposes tax exemption on property transactions

    PSX proposes tax exemption on property transactions

    KARACHI: Pakistan Stock Exchange (PSX) has proposed tax exemption on transactions of immovable properties to Real Estate Investment Trusts (REITs) in order to promote documentation.

    The PSX in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR), said REITS are an ideal instrument to document and help develop the real estate sector, a priority for the government.

    READ MORE: SMEs should be given tax credit to encourage listing

    They also allow smaller investors to gain exposure to the real estate sector, an important step to reduce wealth inequality in Pakistan.

    The PSX proposed exemption from advance tax on property transfer to/from a REIT Scheme u/s 236C and 236K of Income Tax Ordinance, 2001. It also suggested to remove sunset clause i.e. June 2023 for all categories of REIT. Besides, it is also suggested to reduce minimum tax rate applicable to REIT Management Companies (RMCs) u/s 153 in line with Asset Management Companies i.e. 3 per cent.

    READ MORE: FBR urged to eliminate minimum tax for listed companies

    The PSX said that it will promote documented real-estate will attract more investments particularly by companies with disclosure of actual prices and income. Revenue impact will be positive as it will generate indirect and additional revenues from allied businesses.

    Appropriate amendment to be made in the Income Tax Ordinance, 2001.

    READ MORE: PSX proposes rationalizing tax rates for listed companies

    For proposal relating to sun-set clause, remove “June 30, 2023” from clause 99A of Part I of Second Schedule of the Income Tax Ordinance, 2001.

    For proposal relating to Minimum Tax on RMCs, Clause (2)(i) of Division III of Part III of First Schedule of the Income Tax Ordinance, 2001 shall include “service rendered by RMCs.”

    READ MORE: PSX suggests grandfather tax provisions for listed companies

  • KCCI appeals rescuing small traders in Catch-22 situation

    KCCI appeals rescuing small traders in Catch-22 situation

    Karachi Chamber of Commerce and Industry (KCCI) on Saturday declared Catch-22 situation and urged the government to rescue small traders from its fallout.

    Chairman Businessmen Group Zubair Motiwala and President KCCI Muhammad Idrees, while referring to upsurge in petroleum prices by Rs60 within a week along with exorbitant hike of Rs7.91 in electricity base tariff and 44 percent increase in SSGC’s gas tariff by OGRA, stated that a catch-22 situation has been created not only for the industries but also for all segments of society particularly the poor masses and small traders/ shopkeepers who simply cannot bear the burnt and were extremely worried over across-the-board inflation triggered by the rising petroleum prices, gas and electricity tariffs.

    READ MORE: Energy price hike jolts trade, industry: Businessmen Panel

    In a joint statement, Chairman BMG and President KCCI said that it was really unfortunate that the issues being confronted by small traders, who are an integral part of the economy, were not in government’s priority list and it appears that they have been left alone during the ongoing difficult times.

    Zubair Motiwala appealed the government to come forward to rescue the small traders and shopkeepers by devising some kind of an effective mechanism to protect their interest and announce a special relief package for small traders/ shopkeepers which could reduce their cost and ensures that they survive in this era of inflation.

    READ MORE: Govt. halts gas supply to export industry: APTMA

    He said that the inflation has badly gripped the entire society as prices of almost all the household items have skyrocketed making them unaffordable for majority of the public while those people, who were somehow able to afford, have also become very cautious that has brought down the shopkeepers’ sales to somewhere around 20 to 30 percent.

    “In this scenario, how a small trader or a shopkeeper will be able to survive and overcome some inevitable expenditures including gas and electricity bills, shop rent and wages to his workers etc.,” he asked.

    “It is undoubtedly a dire situation not only for the poor segment of society but also for the lower middle class and even the middle-class families who have been silently going through hunger and starvation as they, being white-collar and educated individual, cannot complain or beg for help from anyone,” Chairman BMG said, “Inflation genie has to contained at any cost otherwise, it will kill the common man.”

    READ MORE: SITE industrialists reject increase in power tariff, POL prices

    He further stated that in addition to severe devaluation of rupee against dollar, rising electricity tariff and petroleum prices, it was also a matter of grave concerns that OGRA okayed a whopping increase of 44 percent in gas tariff for SSGC which would prove to be the last straw on camel’s back as it would result in closure of thousands of industrial units, trigger massive unemployment and give a boost to smuggling through misuse of Afghan Transit Trade and other illegal channels. “In this scenario, the economy will stay in hot waters, crises would worsen further and the situation may lead to setting off serious anarchy all over the country”, he cautioned.

    He said that when the exports have picked up pace and recorded an increase of 26 percent while the manufacturing sector has also witnessed an upsurge of 39 percent, the anti-business moves including raising the interest rates, increasing petroleum prices, electricity tariff and now appreciating the gas tariff have been taken which would withhold the progress of Pakistan and shut down many industrial units who would surely face bankruptcy. 

    READ MORE: Yarn merchants for reducing utility prices to save industry

    Muhammad Idrees said the production activities of the manufacturing sector supplying goods at the local markets have also gone down due to rising cost of doing business and the subsequent increase in the cost of finished goods. “Why would a manufacturing unit keep on producing goods at same pace and capacity when the local markets have become almost stagnant”, he said, adding that it was a very alarming situation which would raise the unemployment all over the country as many people would lose jobs due to limited production activities and closure of hundreds of industrial units which cannot bear the all-time high cost of doing business.

    As after increasing the petroleum prices and electricity tariff, the IMF’s demands have mostly been fulfilled hence, President KCCI urged the government to take notice of the situation and take steps for providing relief to the industries, shopkeepers and the poor masses otherwise things are going to get really difficult.

  • SBP issues instructions on Hajj related outward remittances

    SBP issues instructions on Hajj related outward remittances

    KARACHI: State Bank of Pakistan (SBP) has issued instructions to banks related to issuance of remittances for Hajj expanses and their repatriation on non-utilization.

    The SBP issued a circular dated June 03, 2022 invited attention of banks to Para 45A, Chapter 17 of Foreign Exchange Manual in terms of which Authorized Dealers are allowed to make remittances in foreign exchange to Kingdom of Saudi Arabia on behalf of Hajj Group Organizers (HGOs) subject to compliance of applicable terms and conditions.

    The SBP said in order to facilitate the HGOs to effect Hajj related remittances, Para 45(A) (v), Chapter 17 of Foreign Exchange Manual stands amended as per following:

    “45A. Remittances by Authorized Dealers on behalf of Hajj Group Organizers for Hajj.

    (v)(a) Authorized Dealers may also effect Hajj related remittances, on behalf of HGOs, to Tawafa/Hajj service providers duly designated by the Saudi Arabian Hajj Authorities. The remittances will be made on receipt of following information/ documents by Authorized Dealers:

    — Details of Hajj Package bifurcating local and foreign expenses per pilgrim in terms of related Hajj Package(s).

    — Undertaking from concerned HGO for repatriation of funds in case of non-utilization.

    (b)It will be the responsibility of the banks to satisfy themselves about the bona fides of the transaction.”

    Prior to the amendment, the Para 45A of Chapter 17 of the Foreign Exchange Manual is as:

    “45A. Remittances by Authorized Dealers on behalf of Hajj Group Organizers for Hajj.

    (i) Authorized Dealers may remit foreign exchange on behalf of the Hajj Group Organizers (HGOs) having been allocated quota by the Ministry of Religious Affairs & Interfaith Harmony (MoRA) under the Private Hajj Scheme for respective Hajj season subject to terms and conditions mentioned below. Authorized Dealers may obtain list of enlisted HGOs along with allocated quota in respect of each HGO from MoRA.

    Authorized Dealers, on being approached, shall either open a PKR Account in the name of concerned HGO with suffix “Hajj” or use the previously opened similar account specifically for the purpose of Hajj related remittances to Saudi Arabia subject to the following:

    a) While opening/activating and operating these accounts, Authorized Dealers shall strictly follow SBP’s AML/KYC guidelines and ensure compliance of all related rules and regulations issued from time to time. They shall obtain all necessary documents from the concerned HGO.

    b) For the purpose of effecting Hajj related remittances to Saudi Arabia, each HGO is permitted to maintain only one account with the Authorized Dealer of its choice. In this respect, Authorized Dealer shall obtain an undertaking from the HGO that it is not maintaining such account with any of the other Authorized Dealers or any other branch of the same Authorized Dealer for this purpose.

    (ii) With respect to the operations of the designated accounts of HGOs in Pakistan, the Authorized Dealers will ensure that permissible deposits shall only be the PKR funds received from intending pilgrims by the HGOs. The Authorized Dealers shall obtain the list of intending pilgrims from concerned HGOs containing at least the below-mentioned details:

    a) Name, address and contact details.

    b) Passport No. &

    c) HGO Hajj Package opted (Amount of Hajj Packages).

    (iii) Authorized Dealers shall allow remittances into HGO’s account maintained with a specified Saudi bank against the PKR funds collected by HGOs in terms of sub-para (ii) above. However, in case where an HGO has not been able to open/operate account in Saudi Riyal with a Saudi bank, the remittances may be allowed directly to vendors/service providers in Saudi Arabia through FDD/TT/SWIFT. In this context, Authorized Dealers must ensure the following:

    a) The remittances shall only be made for meeting expenses related to housing, Maktab, catering, transportation, guides, subsistence requirements and charges of the Ministry of Hajj in respect of intending pilgrims performing Hajj from the quota allocated to the concerned HGO against authenticated underlying contracts with service providers in Saudi Arabia and submission of following information/documents by the respective HGOs:.

    (aa) Detail of Hajj Package bifurcating local and foreign expenses per pilgrim.

    (bb) Quota Allocation letter by MoRA for respective Hajj season.

    (cc) Invoice(s) issued by Saudi vendors in favor of which remittance is being made or FDD is being issued. However, in case final invoices are not available with the HGOs, the Authorized Dealers will ensure submission of related invoices etc. after finalization of the contracts and will allow remittances after due diligence of contracts.

    b) The HGOs shall provide per pilgrim per service foreign exchange requirements to Authorized Dealers for the services mentioned at (a) above in terms of related package. Authorized Dealers shall make remittances for such services after due verification keeping in view the total quota allocated to the concerned HGO under the Private Hajj Scheme for the concerned Hajj season. However, in any case, total remittances per pilgrim into account of HGO/direct payments to vendors in Saudi Arabia should not exceed 80% of the Hajj Package being offered to the individual pilgrim.

    c) In case aggregate remittance against all services by an HGO on any given day exceeds US$ 100,000/-, the concerned HGO will approach Exchange Policy Department, State Bank of Pakistan, Karachi along with related details and Form ‘M’ through the concerned Authorized Dealer for prior approval.

    d) Head/Principal Offices of Authorized Dealers shall submit consolidated report in respect of remittance transactions to the State Bank executed on behalf of HGOs on or before the 5th day of the following month as per the prescribed format (Appendix V-140) at the email ID: [email protected]. Further, Authorized Dealers shall maintain complete record of these transactions for SBP’s inspection.

    e) It is mandatory for HGOs to repatriate the un-utilized amount to their designated bank accounts in Pakistan after completion of Hajj season. The respective Authorized Dealer shall ensure compliance of the same. Further, HGOs shall have the option to withdraw or transfer remaining PKR funds from these accounts to any other PKR account in Pakistan.

    (iv) Further, in order to facilitate the HGOs to make arrangements of Maktab, housing, catering, transportation, guides, etc. in Saudi Arabia, Authorized Dealers may make advance remittances on behalf of HGOs upto 30% of the Hajj Package being offered by them to the individual pilgrims. The remittances will be made on submission of the following information/documents by the respective HGOs:

    (a) Authenticated underlying contract with Saudi vendor/service provider.

    (b) Details of Hajj Package bifurcating projected local and foreign expenses per pilgrim.

    (c) Quota Allocation letter by the Ministry of Religious Affairs & Interfaith Harmony for previous Hajj season.

    (d) Undertaking from concerned HGO for repatriation of funds in case of non-performance.

    (e) Invoice(s) issued by Saudi vendors/service providers in favor of which advance remittance is being made. However, in case final invoices are not available with the HGOs at the time of remittance, the Authorized Dealers will ensure receipt of related invoices subsequently.

    v) In addition to the above, Authorized Dealers may also effect Hajj related remittances into United Agents Office, Saudi Arabia’s IBAN maintained on behalf of each HGO with the External Hajj e-Service Portal. The remittances will be made on submission of following information/ documents by the respective HGOs:

    a) Details of Hajj Package bifurcating local and foreign expenses per pilgrim in terms of related Hajj Package(s).

    b) Undertaking from concerned HGO for repatriation of funds in case of non-utilization.

    vi) Authorized Dealers must ensure receipt of all related invoices/e-invoices/vouchers, etc. from concerned HGO after finalization of the contracts, reconcile each transaction subsequently and comply with all instructions including those mentioned at Para (iii) above.

    vii) While processing advance remittance request, the Authorized Dealer will take all possible measures to verify the bonafides and genuineness of the transaction. In case of non performance of contract for any reason, the Authorized Dealer and HGO will ensure repatriation of advance payment before completion of respective Hajj season.

    viii) In the case of repatriation of advance payment, exchange gain, if any, will not be passed on to the HGO, rather the same will be deposited in favor of State Bank of Pakistan. To this effect, the Authorized Dealer should get consent/agreement signed by the concerned HGO at the time of effecting remittance. The exchange gain should be deposited in favor of the State Bank through RTGS Clearing Account No. 427518. In this respect, a consolidated statement regarding all such cases will be submitted by Head/Principal Offices of the Authorized Dealers to the Director, Foreign Exchange Operations Department, SBP-Banking Services Corporation on monthly basis as per prescribed format (Appendix V-141).