Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Weekly Review: stock market likely witness mixed trend

    Weekly Review: stock market likely witness mixed trend

    KARACHI: The stock market likely to witness mixed trading activities during next week owing to grey list status of Pakistan and budget incentives.

    Analysts at Arif Habib Limited said that the market to depict a mixed to positive trend in the upcoming week attributable to: FATF’s announcement to keep Pakistan on Grey List; and sectors that got major relief in the budget will remain in the limelight.

    On the other hand, E&P scrips are expected to continue performing well due to higher international oil prices and government shelving divestment plan of OGDC and PPL and also deferring divestment of government shares in MARI.

    However, a Current Account Deficit of USD 632 million for May’21 and uptick in CPI in the upcoming months, may dampen investors sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.5x while offering a dividend yield of ~6.9 per cent versus ~2.3 per cent offered by the region.

    This week trading commenced on a negative note with the index shedding 226 points on Monday amid economic uncertainty given surge in international oil price along with deprecation of the rupee might which is expected to push up inflationary readings in upcoming months.

    Pessimism at the bourse was further fueled by i) Unavailability of gas to non-export related industries, ii) Petrol shortage at many fuel stations in Pakistan as oil tankers go on a countrywide strike which might affect business of exporters, iii) proposal for reclassification of Pakistan from MSCI Emerging Market to Frontier Market, and iv) Uncertainty over the FATF plenary outcome led to profit taking by investors. The KSE-100 index closed at 47,603 points, down by 635 points or 1.32 per cent WoW.

    Contribution to the downside was led by i) Cements (212 points), ii) Commercial Banks (178 points), iii) Oil and Gas Exploration Companies (58 points), iv) Pharmaceuticals (53 points), and v) Oil and Gas Marketing Companies (51 points). Scrip-wise major losers were LUCK (118 points), TRG (62 points), MCB (60 points), PSO (45 points), and HBL (44 points). Whereas, scrip-wise major gainers were SYS (67 points), FCEPL (43 points), HUBC (38 points), ANL (34 points) and MTL (21 points).

    Foreigners offloaded stocks worth of USD 7.88 million compared to a net sell of USD 6.76 million last week. Major selling was witnessed in All other sectors (USD 7.42 million) and Commercial Banks (USD 1.94 million). On the local front, buying was reported by Individuals (USD 13.71 million) followed by Banks (USD 12.86 million). That said, average daily volumes and traded value for the outgoing week were down by 34 per cent and 35 per cent to 694 million shares and USD 112 million, respectively.

  • Finance minister urged to allow tax exemption on raw salt sales

    Finance minister urged to allow tax exemption on raw salt sales

    KARACHI: Ismail Suttar, President, Employers’ Federation of Pakistan, and Chairman of Salt Manufacturers’ Association of Pakistan (SMAP), while appreciating the people-friendly Federal Budget of 2020-21, appealed to the Finance Minister, Shaukat Tareen to reconsider for exemption raw salt from tax regime.

    In an appeal to the Finance Minister, EFP Chief stressed that table salt is considered an essential food item. He added that from 1990, until today, the iodized salt has remained exempted but businessmen producing iodized salt from table salt will have to pay sales tax on table salt and this will be reflected in the retail price of iodized salt.

    “Table Salt is produced from raw Sea Salt, Ismail claimed, and Iodized Salt is produced by adding Iodine to the Table Salt. Law forbids marketing of table salt and allows only iodized salt for eating purposes. Therefore, raw salt if taxed will increase the cost of iodized salt and it will be a burden on the common man. So, the raw salt should be exempted from the sales tax regime”, he added.

    Ismail Suttar further said that the salt which will be used and supplied as industrial salt may remain taxable because it will not affect the common man. It will be without Iodine so there should be two grades of salt: one iodized and the other non-iodized salt mostly used in industries after proper processing.

  • Gas supply suspension cripples industries, halts production

    Gas supply suspension cripples industries, halts production

    KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) and its affiliated industrial town associations have shown deep distress towards non-supply of gas to industries of Karachi for the last 14 days since 11 June, 2021 with ZERO gas pressure which has crippled industries and halted production that will ultimately lead to huge losses.

    According to a statement issued, the supply of gas has been closed in the name of annual turnaround (ATA) of Kunnar Pasaki field. Previously such disruption was caused due to ATA of Gambat field. All such ATA / maintenance must be planned at least six months and intimated to all concerned promptly. If SSGC as per its claim was facing gas shortfall of 200-250 mmcfd from Kunnar-Pasakhi Deep (KPD) gas field and Engro Terminal, this shortfall could have been surmounted through RLNG for the time being but instead of doing so, they announced abrupt suspension of gas supplies to industries which was totally unacceptable as it would prove disastrous not only for the business community but also for economy and the public.

    KCCI appealed Prime Minister Imran Khan to order SSGC to refrain from suspending gas supply and also order a probe into the massive gas mismanagement as the industries in Karachi, which were already going through unbearable circumstances, cannot afford any interruption in their production activities due to suspension of gas supplies.

    Despite of the fact that the Government has accorded priority in supply of gas to export sector, the export industries of Karachi are also deprived of gas. Exporters are fearing excessive delays in export shipments and will lead to shipment by Air or cancellation of orders. Whereas, the export shipment of 40 feet container by sea to USA costs USD 8,400/- while the same shipment by air costs USD 93,000/- which is equal to the total cost of said consignment of 40 feet container. In this manner, the export industries are facing colossal financial losses and shall be bankrupted leading to permanent closure and massive layoffs. Needless to mention here that more than 40 allied industries which include general industry are also associated with export industries which provide them goods and services.

    It is pertinent to note that Karachi contributes to around 60 per cent in national exports. Due to the situation if 10 per cent export is affected it means 5 per cent decline in national export. The estimated losses caused to national exports on daily basis comes to around USD 44 million (PKR 7 billion). As per the Government’s gas priority policy five export sectors would be treated on a par with the power sector in gas supplies. In contravention to its own policy, the Government is providing gas to power company of Karachi while export sector has been deprived to gas.

    KCCI is surprised as to why SSGC has disrupted gas supply on account of Annual Turn Around of Kunnar field on working days which must have been done during Eid Holidays when there is no industrial usage of gas. KCCI fail to understand why such incidences happen repeatedly only in Karachi in every 3-4 months. Whether such attempts on part of the Government are deliberate to compel the industries of Karachi to shift abroad? Why should the export industries of Karachi may bear the brunt of the mismanagement caused due to ill-planning on part of the Ministry of Petroleum and SSGC?

    KCCI appealed to the Prime Minister of Pakistan and Federal Minister of Energy to take immediate notice of Zero Pressure of gas to industries of Karachi and intervene to resume gas as quick as possible so that the industries and export must not suffer further in the best interest of economy, exports and foreign exchange earnings.

  • New tax slabs for property income proposed

    New tax slabs for property income proposed

    ISLAMABAD: The Finance Bill 2021 has proposed amendment to the withholding tax slab rates applicable in case of withholding agents other than company on account of payment of rent of immovable property under Section 155 of the Income Tax Ordinance, 2001.

    Following are the proposed rates are:

    Gross amount of rent:

    01. Where the gross amount of rent not exceeding Rs300,000: the tax rate shall be zero

    02. Where the gross amount of rent not exceeding Rs300,000 but does not exceed Rs600,000: 5 per cent of the gross amount exceeding Rs300,000

    03. Where the gross amount of rent not exceeding Rs600,000 but does not exceed Rs2,000,000: Rs15,000 + 10 per cent of the gross amount exceeding Rs600,000

    04. Where the gross amount of rent exceed Rs2,000,000: Rs155,000 + 25 per cent of the gross amount exceeding Rs2,000,000.

  • Stocks end down by 359 points amid selling pressure

    Stocks end down by 359 points amid selling pressure

    KARACHI: The stock market witnessed a decline of 359 points on Friday as across the board selling pressure observed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,604 points as against previous day’s close of 47,963 points, showing a decline of 359 points.

    Analysts at Arif Habib Limited said that the rollover week ended with market shedding 486 points during the session and closing the index -359 points.

    Overnight intimation from MSCI regarding possible downgrade of Pakistan from MSCI Emerging Market Index to MSCI Frontier market Index, had investors perplexed on the upgrade of stocks in the recent MSCI review particularly LUCK and TRG, which were added to the Standard and Small index respectively.

    In addition, Finance Minister’s final budget speech had positive surprise for auto stocks.

    Selling pressure was observed across the board, with concentration towards Banks, E&P and Cement sector stocks. Among scrips, WTL topped the volumes with 142 million shares, followed by BYCO (53.7 million) and PACE (44.9 million).

    Sectors contributing to the performance include Banks (-114 points), Cement (-101 points), E&P (-63 points), Pharma (-40 points) and Inv Banks (-28 points).

    Volumes increased from 638.8 million shares to 761.3 million shares (+19 per cent DoD). Average traded value also increased by 32 per cent to reach US$ 138.0 million as against US$ 103.8 million.

    Stocks that contributed significantly to the volumes include WTL, BYCO, PACE, TPL and KEL, which formed 39 per cent of total volumes.

    Stocks that contributed positively to the index include PSEL (+29 points), FCEPL (+14 points), SYS (+12 points), ANL (+7 points) and HUBC (+7 points). Stocks that contributed negatively include LUCK (-66 points), HBL (-50 points), UBL (-36 points), PPL (-20 points) and DAWH (-19 points).

  • KIBOR rates on June 25, 2021

    KIBOR rates on June 25, 2021

    KARACHI: State Bank of Pakistan (SBP) on Friday issued following Karachi Interbank Offered Rates (KIBOR) on June 25, 2021.

     TenorBIDOFFER
    1 – Week6.877.37
    2 – Week6.927.42
    1 – Month7.017.51
    3 – Month7.217.46
    6 – Month7.447.69
    9 – Month7.508.00
    1 – Year7.558.05
  • IR offices to remain open till midnight of June 30 for collection of duty, taxes

    IR offices to remain open till midnight of June 30 for collection of duty, taxes

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday said that the offices of Inland Revenue (IR) will observe extended working hours and remain open till mid-night on June 30, 2021 for collection of duty and taxes.

    In an official notification the FBR directed all tax offices to observe extended working hours till 12:00 midnight on Wednesday June 30, 2021 to facilitate the taxpayers in payment of duty and taxes.

    The FBR directed the chief commissioners of Inland Revenue to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of the National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on June 30, 2021 to the respective branches of the SBP on the same date so as to account for the same towards the collection for the month of June 2021.

    In another notification, the SBP asked banks to observe extended hours for collection of duty and taxes.

    The SBP said that SBP-BSC offices and NBP branches would observe extended banking hours till 8:00 PM on June 30, 2021 for collection of government duties and taxes.

    The clearing instruments, collected by SBP-BSC offices and NBP branches till 8:00 PM for payment of government taxes shall be lodged in special clearing to be arranged through NIFT at 8:00PM on June 30, 2021.

    The SBP said that the NIFT shall arrange special clearing for same day clearing of payment instruments collected till 8:00PM on June 30, 2021. NIFT shall submit final returns to SBP-BSC offices for settlement by 10:00PM, same day.

    M/s. 1Link shall arrange to provide the batches of Alternate Deliver Channels (ADCs) transactions executed till 12:00 AM on June 30, 2021 by 9:00 AM on July 01, 2021 to SBP for settlement.

    In order to eliminate the issue of spillover receipts, the NBP shall ensure that no instrument concerning government receipts, lodged in aforesaid office hours, shall remain unattended at any NBP branch and shall be settled in the value date of June 30, 2021 through special clearing.

  • FATF retains Pakistan in grey list

    FATF retains Pakistan in grey list

    ISLAMABAD: The Finance Action Task Force (FATF) on Friday kept Pakistan in ‘grey list’ despite the country has made significant progress of addressing 26 action plan out of 27.

    FATF President Dr Marcus Pleyer in a press conference announced that Pakistan will continue to remain on the increased monitoring list, also known as the grey list.

    Admitting the performance of the country FATF President Dr Marcus Pleyer said: “Pakistan has made significant progress and it has largely addressed 26 out of 27 measures.”

    Pleyer, however, added that the action plan on financial terrorism still needed to be addressed.

    “In 2019, the regional partner of FATF identified problems in Pakistan’s anti-money laundering measures. But since then it has improved. There remains risk of money laundering and subsequently FATF had discussions with Pakistan.

    “I want to thank the Pakistan government for their continued commitment to address the concerns and make the necessary changes they were asked to effect,” Pleyer said.

    The FATF president said all action plan items needed to be addressed and goals fulfilled for countries to exit the grey list.

    “All countries are equal. This is also our expectation from the Pakistan government.”

    In its last presser following a plenary, on Feb 25, FATF President Dr Marcus Pleyer had said Pakistan remained under increased monitoring, adding, “while Islamabad has made significant progress, there remained some serious deficiencies in mechanisms to plug terrorism financing”.

    Pakistan has been on the FATF’s grey list for deficiencies in its counter-terror financing and anti-money laundering regimes since June 2018.

    Until the last assessment, Pakistan was found deficient in acting against organisations allegedly linked to the terror groups listed by the UN Security Council, prosecuting and convicting banned individuals and tackling smuggling of narcotics and precious stones.

  • FBR directs timely disposal of pension, retirement cases

    FBR directs timely disposal of pension, retirement cases

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday directed the field formation to ensure timely disposal of pension and retirement cases otherwise the officers concerned will be responsible for any lapse.

    An official notification issued by the FBR stated that it is observed with serious concern that field formations while forwarding / submitting retirement cases / pension papers for the approval / signatures of competent Authority don’t follow the procedures of the Government and FBR’s instructions issued on the subject from time to time.

    In some cases pension papers of officers / officials are received after their date of retirement. This at times causes embarrassment to the department.

    The Pension Rules for Civil Servants stipulate the procedure and stages for disposal of pension cases (refer to S.No. 53 & 54 “A manual of pension procedures”).

    As per the aforesaid rules, action on the pension papers of a civil servant should be initiated one year before a Government servant is due to retire, so that pension may be sanctioned a month before the date of his retirement.

    Similarly, the Establishment Division’s Instructions, (conveyed to all ministries / departments, vide letter No. 330/RP/2016- WO(P) dated 12.05.2017) also emphasise that “the retirement Notifications / office orders of the retiring officers/officials shall be issued at least one year before retirement on  attaining the age of superannuation”.

    All Additional Commissioners / Deputy Commissioners, Additional Directors / Deputy Directors (HQ) are personally liable for timely submission of pension cases as per procedure / instructions issued by the Government.

    In view of the above, the officers have been directed to ensure that cases of all officers / officials under your control retiring by 30.06.2022 are processed by 15.07.2021 positively. ADCIR / DC (HQs) shall personally be held responsible for any lapse in this regard.

  • Rupee strengthens by six paisas against dollar

    Rupee strengthens by six paisas against dollar

    KARACHI: The Pak Rupee made a gain of six paisas against the dollar on Friday owing to sufficient supply of the foreign currency during the day.

    The rupee ended at Rs157.62 to the dollar as compared with last day’s closing of Rs157.68 in the interbank foreign exchange market.

    Currency experts said that the rupee strengthened because a sufficient supply of the dollars in the shape of export receipts and workers’ remittances were seen during the day.

    They said that the demand for the foreign currency remained high during the day due to corporate and import payments.