ISLAMABAD: Finance Minister Shaukat Tarin on Thursday reaffirmed the government’s strong commitment to the expansion and facilitation of the e-Commerce sector in Pakistan, viewing it as a key driver of future economic growth and digital transformation.
(more…)Author: Mrs. Anjum Shahnawaz
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Stocks shed 107 points in range bound trading
KARACHI: The stocks ended down by 107 points on Thursday amid trading in range bound activity. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,271 points as against previous day’s closing of 47,377 points.
Analysts at Arif Habib Limited said that after posting an uptick yesterday, the index again traded range bound between +179 points and -202 points.
Market poised for a clear trigger in disregard to the announcement of infrastructure projects by the Prime Minister Imran Khan, which could have impacted stock prices of listed Cement and Steel sectors.
Profit booking was observed across the board except for some blue chip stocks, with nominal price gains.
Ongoing earnings season has so far turned out to show muted response from Investors, especially with respect to earnings of Attock Group where the pertinent stocks gave nominal and temporary upside.
Among scrips, TRG realized total volumes of 19.2 million shares, followed by GGL (15 million) and WTL (11.8 million).
Sectors contributing to the performance include Banks (+46 points), Technology (+40 points), O&GMCs (-29 points), Power (-21 points) and E&P (-19 points).
Volumes declined from 382.6 million shares to 230.2 million shares (-40 per cent DoD). Average traded value also declined by 27 per cent to reach US$ 70.4 million as against US$ 95.8 million.
Stocks that contributed significantly to the volumes include TRG, GGL, WTL, TPLP and BYCO, which formed 29 per cent of total volumes.
Stocks that contributed positively to the index include MEBL (+42 points), TRG (+40 points), BAHL (+14 points), MLCF (+12 points) and HBL (+8 points). Stocks that contributed negatively include HUBC (-20 points), PSO (-17 points), PPL (-14 points), EFERT (-13 points) and LUCK (-12 points).
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Tax rates on immovable properties for 2021-2022
The Federal Board of Revenue (FBR) has issued updated rates of withholding tax on sale and purchase of immovable properties.
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FBR posts officials at retail outlets for sales monitoring
KARACHI: The Federal Board of Revenue (FBR) has initiated action against big retailers by posting tax officials at business premises for monitoring of sales.
Corporate Tax Office (CTO) Karachi, an arm of the FBR, has posted its staff at eight outlets of a big retailer for checking sales, purchase and production of saleable goods.
The tax office posted its staff at eight outlets of Clifton Nimco Private limited under Section 40B of the Sales Tax Act, 1990.
Sources said that it was major step taken by the tax authorities to check tax evasion at retail level.
They said that the step was taken on the directives of Dr. Aftab Imam, chief commissioner inland revenue in order to assure the retail unit is making true declaration of its sales.
The tax office also enforced sales tax rules to install point of sale (POS) at the outlet, which is mandatory for big retailers.
Installing POS machine is mandatory for all retailers falling under category of Tier-1 retailers.
One of the major changes brought through the Finance Act, 2021 that all those outlets accepting debit and credit cards are required to integrate their sales with the FBR.
The sources said that the team of the tax officials would depute till gathering of require information to ascertain the sales and income of the outlet.
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SBP to launch rewards for inward remittances
ISLAMABAD: State Bank of Pakistan (SBP) will launch incentives/ rewards for overseas Pakistanis on transactions of inward remittances.
The SBP will launch a mobile phone application for overseas Pakistanis, which will offer incentives/rewards to overseas Pakistani against each remittance transaction in accordance under criteria.
The above application will be formally launched towards the end of October 2021, this was discussed at a meeting of Economic Coordination Committee (ECC) of the Cabinet of Wednesday.
Finance Minister Shaukat Tarin chaired the meeting. The Secretary Finance made a detailed presentation on National Remittance Loyalty Program (NRLP) before the Committee.
He stated that remittances form backbone of the economy. The proactive policy measures by the Government and the SBP have incentivised the overseas Pakistanis and encouraged them to remit their hard earned money through formal channels.
This has contributed in achieving record remittance of $29.4 billion in the last fiscal year. It’s a clear reflection of confidence in Pakistan’s economy by overseas Pakistanis.
After due deliberations, the ECC approved the structure and estimated financial impact of the NRLP with a view to incentivize remitters to transfer funds through formal channels thus further strengthening the inflow of remittances.
The Finance Minister directed to exercise due diligence before the launch for seamless integration with all service providers to ensure smooth working of NRLP.
Among others, Federal Minister for Interior Sheikh Rasheed Ahmed, Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Energy Hammad Azhar, Federal Minister for Planning and Development Asad Umar, Advisor to the PM on Commerce Abdul Razak Dawood, Advisor to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Power & Petroleum Tabish Gauhar, SAPM on Finance and Revenue Dr. Waqar Masood, Federal Secretaries and other senior officers participated in the meeting. Governor State Bank of Pakistan Reza Baqir also participated through a video link.
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Car sales sharply increase by 114% on tax cuts
KARACHI: The car sales posted a sharp rise of 114 per cent in July 2021 owing to tax cuts announced in the Finance Act, 2021.
The car sales increased to 24,918 units in July 2021 as compared with 11,659 units in the same month of the last year.
Analysts at Topline Securities said that the sharp increase in car sales might be attributed to tax incentives announced through the Finance Act, 2021.
The analysts said that the sales was around 27K, including non-member Lucky Motor Corporation i.e. KIA.
As reported by Pakistan Automotive Manufacturers Association (PAMA), car sales have increased by 114 per cent YoY to 24,918 units where the volumetric increase was mostly led by Pak Suzuki Motor Company (PSMC) and Indus Motor (INDU).
To recall, the government had announced reliefs and tax-cuts in the federal budget which resulted in reduction in car prices across the board.
As a result, customers had held back there purchases till July 2021.
PSMC volumes are up by 197 per cent MoM to 15,181 units. INDU registered an increase of 48 per cent MoM to 6,715 units.
However, HCAR sales were on the lower side with a decline of 30 per cent MoM largely due to the anticipated roll out of new model of Honda City.
On the new-entrants front, Hyundai Nishat registered 4 per cent MoM increase to 627 units with the inclusion of its new model “Sonata”.
Lucky Motor Corporation sold around 1,600 to 1,800 units in July-2021, which are similar volumes to the prior month.
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KSE-100 index up by 241 points on better earning hopes
KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 241 points on Wednesday on better earning hopes in listed entities.
The index closed at 47,377 points as against 47,135 points showing, an increase of 241 points.
Analysts at Arif Habib Limited said that the market gained close to 500 points during the session.
Sentiment was buoyant on the expectation of healthy earnings by key listed entities which helped propped up the market.
Besides, incentives issued in favour of technology firms and finance minister’s notice regarding inquiry against stock brokers also helped develop positive sentiment.
Banks, O&GMCs, Cement, Power and Technology stocks performed well.
Refinery sector also performed well due to anticipation of refinery policy being finally put to approval of Cabinet.
Among scrips, GGL led the volumes with 27.6 million shares, followed by WT (26.7 million) and EPCL (25.9 million).
Sectors contributing to the performance include Technology (+99 points), Power (+26 points), Fertilizer (+24 points), Autos (+17 points) and Pharma (+15 points).
Volumes increased from 370 million shares to 382.6 million shares (+3 per cent DoD). Average traded value also increased by 29 per cent to reach US$ 95.8 million as against US$ 74 million.
Stocks that contributed significantly to the volumes include GGL, WTL, EPCL, BYCO and TELE, which formed 31 per cent of total volumes.
Stocks that contributed positively to the index include TRG (+77 points), HUBC (+27 points), ENGRO (+26 points), SYS (+24 points) and INDU (+22 points). Stocks that contributed negatively include BAHL (-15 points), MCB (-9 points), EFERT (-6 points), CHCC (-5 points) and FABL (-5 points).
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MCB Bank’s 2QCY21 results above market expectations
KARACHI: MCB Bank on Wednesday announced a profit after tax of Rs7.9 billion for second quarter ended June 30, 2021.
Analysts at Khadi Ali Shah Bukhari (KASB) said that the result is above estimates and street consensus.
The deviation is mainly on account of recognition of provisioning reversal worth Rs1.8 billion during the quarter. The result was accompanied with an interim cash dividend of Rs5.0 per share.
MCB’s profitability increased 12 per cent YoY during second quarter April – June of 2021 attributed to provisioning reversal.
However, NII declined by 17 per cent YoY as the policy rate remained unchanged during the period under review.
NFI increased by 46 per cent YoY in 2QCY21 as lockdown restrictions were eased off and economic activity picked up.
Major support came from 17 per cent YoY jump in fee income that clocked in at PKR 3.0 billion as against PKR 2.5 billion. Additionally, other income increased to PKR 661mn as opposed to PKR 61mn in corresponding period last year.
Notably, the bank recognized a provisioning reversal of PKR 1.8 billion that resulted in expansion in bottom-line. We expect a similar momentum in coming quarters with lower risk of provisioning as business activity has normalized.
The bank recorded higher effective tax rate of 45 per cent which we believe is attributed to new taxation measures introduced in Budget FY22. This is in-line with industry’s ETR as banks have shown prudence.
Additionally, C/I improved to 43 per cent as opposed to 45 per cent in corresponding period last year that lent support to MCB’s profitability.
We have an Outperform stance on the stock and our target price stands at PKR 220/sh. The stock is trading at a forward P/B of 1.13x and offers a dividend yield of 12 per cent
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MCC Gwadar announces auction of vehicles on Aug 13
KARACHI: Model Customs Collectorate (MCC), Gwadar has announced auction of old and new lot of confiscated vehicles to be held on August 13, 2021.
The auction will be held at Customs House, Gaddani on ‘as is where is’ basis.
The collectorate to auction following confiscated vehicles:
01. Toyota Land Cruiser, Reg No. BC-0448, Chassis No. HJ61-002060, Engine No. Nil, Model: 1986
02. Hino Bus, Reg No. BSB-808, Chassis No. AK1JRKA-16027, Engine JO8CB16832, Model:2012
03. Coach, Reg No. BSA-515, Chassis No. AK1JMKA-1415, Engine No. Nil, Model: Nil
04. Toyota Land Cruiser (Red), Reg No. BA-8164, Chassis No. BJ160-009711, Engine No. Not Traceable, Model: 1985
05. Indus Corolla Car, Reg No. GF-1411, Chassis No. AE100-0028693, Engine No. Not Traceable, Model: 1994
06. Land Cruiser Prado, Reg No. Not Traceble, Chassis No. LJ78-0002499, Model. 1990
07. Toyota Land Cruiser, Reg No.BA-5186, Chassis No. HJ60-009651, Model. 1984
08. Toyota Land Cruiser, Reg: JAA-889, Ch# BJ-60-020679, Model: 1988
09. Mitsubishi Pajero, Reg: JAL-231, Ch# LO48G-3005856, Model: 1985
10. Land Cruiser, Reg: QAB-1649, Ch# HJ61-013994, Model:1989
11. Toyota Jeep Land Cruiser, Reg: AFR-2015, Ch: FJ40-371932, Model: 1989
12. Toyota Land Cruiser, Reg: Nil, Ch:# LJ78-0039971, Eng:# ZL-33868, Model: 1993
13. Honda Civic Car, Reg: Nil, Ch:# ESI-1600827, Eng:#D1610173-004871, Model: 2002
14. BMW, Reg: Nil, Ch:# WBAGL62090DJ92594, Eng:#CC-300, Model: 2002
15. Toyota Surf, Reg: Nil, Ch:# KZN130-9032504, Eng:#Not Traceable, Model: 1993
16. Toyota Land Cruiser, Reg No. LSA-3469, Chassis No.FJ55-88824, Engine No. Nil, Model: 1992
17. Hino Bus, Reg No. CH-14538, Chassis No. AK8JRKA-14538, Engine No. Nil, Model: 2016
18. Hino Bus, Reg No. BSA-554, Chassis No. AK1JRKA-11056, Engine No. Nil, Model: Nil
19. Hino Bus, Reg No. JB-3335, Chassis No. AK8JRKA-15635, Model: 2012
20. Hino Bus, Reg No. BSA-327, Chassis No. AK17X-41808, Engine No. –Model: 1992
21. Hino Bus, Reg No. BSA-571, Chassis No. AK-I-JRKA-16707, Engine No. Nil, Model: 2011
22. Toyota Land Cruiser, Reg No. QBA-3037, Chassis No. FZ180-016013, Model Nil
23. Nissan Sunny Car, Reg No. Nill, Chassis No. JN1BDAB14Z0336115, Engine No. GMI-6080565, Model: Nill
24. Honda Accord, Reg No. AVP-786, Chassis No. CL7-3003313, Engine No. N/A, Model: Nill
25. Toyota Altis Car, Reg No. AZR-182, Chassis No. ZZE142-7403917, Engine No. N/T, Model: N/T
26. Mitsubmishi Pejero, Reg No.KB-1782, Chassis No. CL048VFY100117, Engine No. N/T, Model: N/T
27. Mitsubishi Pejero, Reg No.Nill, Chassis No. V45-4401374, Engine No. 2L2678454, Model: 1998
28. Mitsubishi Pejero, Reg No.JAB-248, Chassis No. LJ78-00151955, Engine No. –TE, Model: Nill
29. Mitsubishi Pejero (03 Door), Reg No.LSC-5465, Chassis No. V24-7700536, Engine No. 4D56-T7UF, Model: Nill
30. Toyota Land Cruiser, Reg No.BD-4472, Chassis No. FZJ80-0022240, Engine No. N/T, Model:1992
31. Toyota Land Cruiser, Reg No.BF-7385, Chassis No. HZJ80-0011965, Engine No. N/T
32. Toyota Land Cruiser, Reg No.Nill, Chassis No. LENFN28FX95300066, Engine No. 312684, Model:Nill
33. Toyota Land Cruiser Prado, Reg No.JAF-883, Chassis No. IZJ78-0027017, Engine No.1KZIT, Model:1996
34. Toyota Hilux Pickup, Reg No.WAE-893, Chassis No. RN43-008601, Engine No.Nill, Model:Nill
35. Toyota Land Cruiser, Reg No.JAA-038, Chassis No. HJ61-006515, Engine No.1158881, Model:1987
36. Toyota Land Cruiser, Reg No.JAA-195, Chassis No. LJ71-0003920, Engine No.2L-1651949, Model:Nill
37. Pejero, Reg No.JAA-983, Chassis No. CL0048VGJ400698, Engine No.Nill, Model:Nill
38. Toyota Land Cruiser, Reg No.JAC-265, Chassis No. KZJ78-0001358, Engine No.1KZ-TE-0005609, Model:NIll
39. Toyota Land Cruiser, Reg No.JAD-117, Chassis No. FZ-J80-0163691, Engine No.Nill, Model:Nill
40. Hino Mazda Truck, Reg No. JW-1236, Chassis No. AK176KA-43256, Engine No. 12181, Model: 1992
New Lots
41. Toyota Mark-X Car, Reg No. AYH-634, Chassis No. GRX121-3002167, Engine No. 3GR-00666157, Model: 2007
42. Toyota Prius Car, Reg No. AVK-555, Chassis No. NHW20-0008279, Engine No. A.311091, Model: 2004
43. Toyota Mark-X Car, Reg No.AFR-2020, Chassis No. GRX121-1002780, Engine No. 3GR-FSE, Model: 2004
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Bank holiday announced on August 14
KARACHI: The State Bank of Pakistan (SBP) on Tuesday announced bank holiday on August 14, 2021.
The State Bank will remain closed on Saturday, August 14, 2021 on the occasion of Independence Day as declared by the government of Pakistan.
The central bank through a circular informed the presidents and chief executives of all banks, development financial institutions (DFIs) and Microfinance Banks (MFBs).