Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Weekly Review: market to pick pace as results season about to start

    Weekly Review: market to pick pace as results season about to start

    KARACHI: The stock market likely to pick pace next week as result season is about to commence, analysts said. They said that cyclical sectors can once again attract the limelight on the back of robust economic activity.

    Moreover, oil prices have continued to remain downwards sticky with no outcome on the oil output increase, which could spur buying in E&P scrips.

    That said, fears over the COVID fourth wave could keep the sentiment cautious.

    The benchmark KSE-100 of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.2x while offering a dividend yield of ~6.9 per cent versus ~2.3 per cent offered by the region.

    Equities continued to depict a range bound behavior for another week. This week saw Pakistan raising USD 1 billion through a “tap issue” from Eurobonds, at even better pricing than the issue in April earlier this year. That said, a spike in COVID cases (infection ratio has risen to 3.65 per cent compared to an average of 1.7 per cent in the last two weeks) has kept the confidence in the bourse in check.

    Moreover, uncertainty over how the geopolitical scenario pans out with regards to the US exit from Afghanistan, and Pakistan’s crucial role in this, has also kept sentiment jittery. The index closed at 47,563 points, down by 0.3 per cent / 123 points WoW.

    Sector-wise negative contributions came from i) Oil & Gas Exploration Companies (68 points), ii) Tobacco (57 points), iii) Refinery (49 points), iv) Textile Composite (41 points), and v) Food & Personal Care Products (36 points). Whereas, the sectors that contributed positive include i) Commercial Banks (127 points), ii) Fertilizer (50 points), iii) Technology & Communication (50 points), iv) Inv.Banks/Inv.Cos./Securities Cos. (10 points) and Chemical (6 points). Scrip-wise negative contributors were PAKT (58  points), UNITY (39  points), NRL (37  points), PPL (28  points) and ANL (21  points). Whereas, scrip-wise positive contribution came from HBL (88  points), TRG (43  points), MEBL (35  points), EFERT (31  points) and AGP (26  points).

    Foreign selling continued this week clocking-in at USD 5.2 million compared to a net sell of USD 8.4 million last week. Selling was witnessed in Other sectors (USD 5.4 million) and Food sector (USD 1.1 million). On the domestic front, major buying was reported by companies (USD 4.1 million and Mutual funds (USD 3.9 million). Average volumes arrived at 486 million shares (down by 22 per cent WoW) while average value traded settled at USD 107 million (down by 1 per cent WoW).

  • Assets of Islamic banks surge by 30.6%: State Bank

    Assets of Islamic banks surge by 30.6%: State Bank

    KARACHI: The assets of Shariah compliant banks in Pakistan have increased by 30.6 per cent to Rs4.39 trillion by end of quarter January – March 2021 as compared with Rs3.36 trillion in the same quarter of the last year, State Bank of Pakistan (SBP) said on Friday.

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  • Company registration rises to 145,913 by June 2021: SECP

    Company registration rises to 145,913 by June 2021: SECP

    ISLAMABAD: The total number of companies registered with the Securities and Exchange Commission of Pakistan (SECP) has increased to 145,913 by end June 2021, a statement said on Friday.

    The commission registered 2,504 new companies in June 2021, indicating a growth of 63 per cent as compared to corresponding period last year.

    Ninety-nine per cent of these were incorporated online and 45 per cent applicants were issued registration certificates the same day, whereas 203 new foreign users were registered from overseas.

    Of the newly registered companies, 65 percent were registered as private limited companies, 31 percent as single member companies and four percent as public unlisted companies, not for profit associations, foreign companies and limited liability partnership (LLP). Total capitalization (paid-up-capital) of newly incorporated companies for the current month is amounted to Rs3.3 billion.

    The construction & real estate sector took the lead with the incorporation of 474, trading with 382, I.T with 275, services with 216, ecommerce with 129, food & beverages with 105, textile with 86, corporate agricultural farming with 76, education with 66,  engineering, and market & development 54 each, pharmaceutical with 50, healthcare with 45, tourism with 39, mining & quarrying, and transport with 36 each, chemical with 34, auto & allied with 33, cables & electric goods with 31,  logging with 27, communication with 26, power generation with 24, paper & board, and cosmetics & toiletries with 19 each, steel & allied with 18, broadcasting & telecasting, and  fuel and energy with 16 each, wood & wood products with 13 and 105 companies were registered in other sectors.

    Foreign investment has been reported in 66 new companies. These companies have foreign investors from Austria, Azerbaijan, Bangladesh, China, France, Germany, Ghana, Hong Kong, Iran, Italy, Kyrgyzstan, Malawi, Mexico, the Netherlands, Nigeria, Oman, Philippines, Qatar, Russia, Singapore, Slovakia Republic, Sweden, Syria, Turkey, the UK, Uruguay and the US.

    The highest numbers of companies, i.e. 810 were registered in Islamabad, followed by 807 and 394 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 174, 127, 98, 62, 22, and 10 companies respectively.

  • Stock market sheds 490 points on selling pressure

    Stock market sheds 490 points on selling pressure

    KARACHI: The stock market fell by 490 points on Friday owing to selling pressure seen during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 47,563 points as against previous day’s closing of 48,053 points, showing a decline of 490 points.

    Analysts at Topline Securities said that KSE-100 index returned to its course as after positive session yesterday, index remained under pressure during the day to close at 47,563 level.

    Major pressure to the index came from TRG, LUCK, KAPCO, HUBC and PAKT, as they cumulatively weighed down on the index by 214 points.

    Traded volume and value for the day stood at 506 million shares and Rs.15.37 billion. TPL was today`s volume leader with 42 million shares.

  • KIBOR rates on July 09, 2021

    KIBOR rates on July 09, 2021

    KARACHI: State Bank of Pakistan (SBP) on Friday issued following Karachi Interbank Offered Rates (KIBOR) on July 09, 2021.

     TenorBIDOFFER
    1 – Week6.907.40
    2 – Week6.957.45
    1 – Month7.027.52
    3 – Month7.207.45
    6 – Month7.417.66
    9 – Month7.508.00
    1 – Year7.578.07
  • President rejects MCB Bank’s stance on internet banking fraud

    President rejects MCB Bank’s stance on internet banking fraud

    ISLAMABAD: President Dr Arif Alvi on Friday rejected the representation of MCB Bank challenging the order of Banking Mohtasib to credit the lost money to its account holder, who had fallen victim to internet banking fraud.

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  • Rupee makes gain 16 paisas against dollar

    Rupee makes gain 16 paisas against dollar

    KARACHI: The Pak Rupee made a gain of 16 paisas against the dollar on Friday as inflows helped to meet demand for import payments.

    The rupee closed at Rs159.17 to the dollar from the previous day’s closing of Rs159.33 in the interbank foreign exchange market.

    Currency experts said that a substantial increase in foreign exchange reserves reported by the State Bank of Pakistan (SBP) a day earlier helped the local currency to make gain during the day.

    A day earlier the SBP reported that the foreign exchange reserves of the country increased to $24.415 billion by the week ended July 02, 2021. The foreign exchange reserves increased due to inflows of $1 billion as loan disbursement from China and $440 million from the World Bank.

  • Updated rates of regulatory duty on import of motor vehicles into Pakistan

    Updated rates of regulatory duty on import of motor vehicles into Pakistan

    The Federal Board of Revenue (FBR) has issued latest rates of regulatory duty applicable on import of motor vehicles into Pakistan. The rates are applicable from July 01, 2021.

    In order to apply the rates of the regulatory duty the FBR issued SRO 840(I)/2021 dated June 30, 2021.

    Following are the rates of regulatory duty on motor vehicles, along with HS Code, description and rate of regulatory duty:

    8703.2193 New 4×4 vehicles in completely built unit (CBU):  15 per cent

    8703.2195 New Mini vans (CBU): 15 per cent

    8703.2199 Other (New): 15 per cent

    8703.2220 New Vehicles of a cylinder capacity exceeding 1000cc but not exceeding 1300cc: 15 per cent

    8703.2240 New Mini vans (CBU): 15 per cent

    8703.2260 New Sport utility vehicles: 15 per cent

    8703.2290 Other (New): 15 per cent

    8703.2313 New Sport utility vehicles: 15 per cent

    8703.2319 Other (New): 15 per cent

    8703.2323 New Sport utility vehicles (SUVs 4×4): 90 per cent

    8703.2323 Old and used sport utility vehicles 1801cc to 3000cc: 70 per cent

    8703.2329 Other (New): 90 per cent

    8703.2329 Old and used cars and Jeeps 1801 cc to 3000cc: 70 per cent

    8703.2490 Other (New): 90 per cent

    8703.2490 Old and used cars and jeeps above 3000 cc: 70 per cent

    8703.3129 Other (New): 15 per cent

    8703.3139 Other (New): 15 per cent

    8703.3219 Other (New): 15 per cent

    8703.3223 New Sport utility vehicles (SUVs 4×4): 90 per cent

    8703.3223 Old and used sport utility vehicles above 2000cc: 70 per cent

    8703.3225 New All-terrain vehicles (4×4): 90 per cent

    8703.3225 Old and used All terrain vehicles (CBU): 70 per cent

    8703.3229 Other (New): 90 per cent

    8703.3229 Old and used cars and jeeps above 2000 cc: 70 per cent.

  • SBP issues customers exchange rates on July 09, 2021

    SBP issues customers exchange rates on July 09, 2021

    KARACHI: The State Bank of Pakistan (SBP) on Friday 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
    AED43.344243.4384
    AUD118.1171118.3681
    CAD126.9385127.2075
    CHF173.6407174.0180
    CNY24.556524.6066
    EUR188.2594188.6806
    GBP219.0967219.5843
    JPY1.44581.4490
    SAR42.416942.5099
    USD159.0709159.4342
  • Cable TV operators granted exemption of sales tax on services

    Cable TV operators granted exemption of sales tax on services

    KARACHI: The Sindh government has exempted sales tax on services for one year for cable TV operators within the jurisdiction of the province.

    The Sindh Revenue Board (SRB) has issued a notification to further exempt the sales tax on services rendered by cable TV operators till June 30, 2022.

    The Sindh government imposed sales tax on services rendered by cable TV operators through a notification issued on June 27, 2019. However, since then the levy has been exempted. Through a new notification the exemption is further extended for one more year till June 30, 2022.

    According to the amended notification:

    The provincial government has exempted Sindh sales tax on such of the services provided or rendered by Cable TV Operators, as are classified under tariff heading 9819.9000 of the Second Schedule to the said Act, subject to the conditions that such service provider:-

    (a) is registered with the Board in terms of section 24 of the Act and has shown the services of “Cable TV Operators” of tariff heading 9819.9000 as his “Principal Activity” in row No. 12 of the Registration Form SST-01:

    Provided that where the service provider also provides other taxable services including the services of “advertisement on Cable TV network” of tariff heading 9802.5000, he shall also inter-alia indicate the economic activity of such taxable services in the relevant column of Activity Code of “Other Business Activities” in row No. 19 of the Registration Form SST-01;

    (b) is a stand-alone service provider of the taxable service of “Cable TV Operators” of tariff heading 9819.9000.

    Explanation: For the purposes of this notification, a “stand-alone” service provider means a person whose principal activity is the provision of services of “Cable TV Operators” of tariff heading 9819.9000 and whose other service-related business activity, if any, is restricted to the provision of the taxable services of “advertisement on Cable TV network” of tariff heading 9802.5000. Persons providing or rendering taxable services of any of the tariff headings, other than those of tariff headings 9802.5000 and 9819.9000, shall not be eligible to the benefits of this notification:

    Provided that nothing contained in this notification shall be construed to be exempting the taxable services of “advertisement on Cable TV network” classified under tariff heading 9802.5000 even if provided or rendered by such a stand-alone service provider;

    (c) e-files his tax returns (Form SST-03) regularly in the prescribed manner, showing the details of his exempt services of Cable TV Operators (tariff heading 9819.9000) and also of other taxable services including the taxable services of advertisements on Cable TV (tariff heading 9802.5000) therein:

    Provided that the tax returns for the tax periods July, 2016 to June 2021, if not filed earlier, shall be e-filed by the stand-alone service provider on or before the 31st day of July, 2021;

    (d) e-deposits his tax liability on the taxable services, including the taxable services of “advertisement on Cable TV network” (tariff heading 9802.5000), regularly in the prescribed manner:

    Provided that the tax liability for the tax periods July, 2016 to June, 2021, if not paid earlier, shall be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021; and

    (e) complies with the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, in relation to the taxable services, including the taxable service of advertisement on Cable TV network (tariff heading 9802.5000), as are provided or rendered by him and e-deposits the amounts of Sindh sales tax involved, in case such amounts are or were not deducted or withheld by the service recipient or the withholding agent in terms of the said Rules:

    Provided that the liability of Sindh sales tax under the aforesaid Sindh Sales

    Tax Special Procedure (Withholding) Rules, 2014, for the tax periods July, 2016 to June, 2021, if not paid earlier, shall also be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021.

    This notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax already paid or deposited by him in Sindh Government’s head of account “B- 02384” on any day prior to the date of this notification.

    This notification shall take effect from the 1st day of July, 2018, and, if not rescinded earlier, shall stand rescinded on the 30th day of June, 2022.