Author: Mrs. Anjum Shahnawaz

  • Export orders under threat as gas supply to industries suspended

    Export orders under threat as gas supply to industries suspended

    KARACHI: Industrial activities come to a standstill as gas supply was suspended by Sui Southern Gas Company (SSGC). The suspension would affect meeting export orders.

    Abdul Hadi, President, Site Association of Industry, while expressing deep concern on Saturday over non-supply of gas to the industries of the site area, said that Sui Southern Gas Company (SSGC) has suspended the supply of gas to the industries.

    “As a result, the gas crisis has intensified and production activities have come to a standstill position and many industries have been shut down. He demanded to restore Gas supply to the industries at the required pressure so that production activities can be resumed.”

    He appealed to Prime Minister Imran Khan and Federal Minister for Energy Hammad Azhar, to take notice of the non-supply of gas, Abdul Hadi said that the industries of the site area have been facing shortage of gas for a week and now the supply of gas has been suspended.

    “The non-supply of gas is affecting production activities, which has led to the closure of several industries. Gas pressure is constantly zero and despite repeated complaints to the SSGC, the gas pressure has not been improved. On the contrary, SSGC has taken the position that it may take another 2 to 3 days to improve the gas pressure, which is an alarm for the fulfilment of export orders”, he pointed out.

    SAI chief questioned the SSGC officials that if there is such a situation of gas supply in summer, then what will happen to the gas crisis in winter? Abdul Hadi requested Prime Minister Imran Khan and Federal Minister for Energy Hammad Azhar to issue directives to SSGC to restore gas at required pressure to the industries of the site. Otherwise timely delivery of export orders will not be possible.

  • Weekly Review: stocks to make gain on expected FATF positive outcome

    Weekly Review: stocks to make gain on expected FATF positive outcome

    KARACHI: The stock market is likely to regain positive momentum next week on the expected exit of Pakistan from the grey list of Financial Action Task Force (FATF).

    Analysts at Arif Habib Limited said that the market to regain positive momentum in the coming week. With FATF’s Plenary Session to be held on 21st June 2021, the index is expected to bounce back as an exit from the grey list seems imminent.

    Furthermore, on COVID-19 front, infection ratio has dropped to 1.91 percent (which is an 8 month low).

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.9x (2021) compared to Asia Pac regional average of 16.5x while offering a dividend yield of ~6.8 percent versus ~2.6 percent offered by the region.

    The market commenced on a positive note this week given a set of relief measures announced in the Budget such as a decline in capital gain tax to 12.5 percent from 15 percent tagged with positive measures for refineries, auto sector and information technology sector.

    Moreover, the government increased dividend expectations from OGDC and PPL (Rs17.50/share and Rs8.25/share, respectively) which kept these scrips in the limelight.

    However, the market turned red later in the week as the investors resorted to profit-taking. Furthermore, a deadlock between the IMF and the government persisted which further stressed sentiment. Albeit, the market settled at 48,239 points, shedding 66 points (down by 0.14 percent) WoW.

    Sector-wise negative contributions came from i) Commercial Banks (176  points) ii) Fertilizer (88  points), iii) Food & Personal Care Products (52  points), iv) Automobile Assembler (34  points) and v) Miscellaneous (31  points). Whereas, the sectors that contributed positively include Oil & Gas Exploration Companies (156  points), Cement (74  points), Power Generation & Distribution (31  points), Engineering (30  points) and Tobacco (25  points). Scrip-wise negative contributors were HBL (88  points), UNITY (56  points), TRG (47  points), UBL (40  points) and EFERT (34  points). Scrip-wise positive contributors were OGDC (99  points), POL (64  points), HUBC (46  points), LUCK (36  points) and SYS (28  points).

    Foreign selling continued this week clocking-in at USD 6.8 million compared to a net buy of USD 7.5 million last week. Selling was witnessed in Commercial Banks (USD 2.5 million) and Technology (USD 2.5 million). On the domestic front, major buying was reported by Individuals (USD 21.4 million and Mutual Funds (USD 10.9 million). Average volumes arrived at 1,049 million shares (down by 3 percent WoW) while average value traded settled at USD 170 million (up by 6 percent WoW).

  • World Bank approves $442mn for improving access to water, sanitation services in Pakistan

    World Bank approves $442mn for improving access to water, sanitation services in Pakistan

    KARACHI: The Executive Board of the World Bank has approved a financing of $442 million to support Pakistan in improving access to water and sanitation services for the vulnerable rural communities in Punjab province, a statement on Saturday.

    It said that the Punjab Rural Sustainable Water Supply and Sanitation Project (PRSWSSP) will help upgrade water supply and sanitation infrastructure and services that ensure equitable and sustainable access to drinking water and safe wastewater management. The project prioritizes rural settlements, where water contamination and poor sanitation practices are more prevalent, causing high levels of illness and child stunting.

    “PRSWSSP will help more than six million rural residents in the poorest districts of Punjab to reduce child stunting and address areas at high risk to droughts and water scarcity,” said Najy Benhassine, World Bank Country Director for Pakistan.

    “The World Bank is committed to the government in improving sustainable water resource management. This project will support investments that increase climate resilience, including flood protection, rainwater harvesting and water conservation in these districts.”

    The project will implement tailored, cost-effective solutions for both large and small rural settlements, using scalable technologies that help facilitate solid and animal waste management at the household and community levels. It will also establish a water-quality monitoring system to ensure compliance with national standards for drinking water and wastewater.

    The PRSWSSP will promote safe water handling, hygiene, and water conservation practices at the household level, with a focus on maternal, newborn and child health.

    “The project is expected to yield substantial benefits to rural communities. It will help improve health outcomes by reducing water borne illnesses and ensure service quality and customer care through a financially sustainable public company,” said Farhan Sami, Task Team Leader for the project.

    The project will cover 16 districts, with 50 percent of districts drawn from south Punjab, and 25 percent each from central and north Punjab, benefiting 2,000 villages and more than six million people in rural areas. It will also provide training of village councils and community caretakers, which will have complementary responsibilities for operations and maintenance, monitoring and evaluation, and customer service.

    “Child stunting is endemic and a huge constraint on Pakistan’s potential,” said Ghazala Mansuri, co-Task Team Leader for the project. “It impacts a child’s cognitive development and immune system, reducing educational attainment, making illness more likely, and leading to lower productivity and income. Its effects are inter-generational, transmitted from parent to child. This project would provide the template for a transformational shift in human capital accumulation since it addresses all the determinants of stunting.”

    The project design was informed by a 2018 flagship report, When Water Becomes a Hazard: A Diagnostic Report on The State of Water Supply, Sanitation and Poverty in Pakistan and Its Impact on Child Stunting, that examined linkages in Pakistan between water and sanitation services, and child stunting.

    This study also supported environmental sustainability and the need to provide information and support behavioral change in poor rural communities to reduce health risks.

    Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided $40 billion in assistance. The World Bank’s program in Pakistan is governed by the Country Partnership Strategy for FY2015-2020 with four priority areas of engagement: energy, private sector development, inclusion, and service delivery. The current portfolio has 57 projects and a total commitment of $13 billion.

  • SBP, JazzCash sign MoU for increasing financial literacy

    SBP, JazzCash sign MoU for increasing financial literacy

    KARACHI: National Institute of Banking and Finance (NIBAF) – a subsiday of State Bank of Pakistan – and JazzCash, Pakistan’s leading FinTech Company, have signed a Memorandum of Understanding for increasing financial literacy amongst youth of Pakistan, the SBP said on Saturday.

    NIBAF and JazzCash aim to jointly promote financial literacy through the engaging and interactive game called “PomPak – Learn to Earn” developed under SBP’s project, National Financial Literacy Program for Youth (NFLP-Y).

    PomPak, utilizes a story-based narrative by following the journey of two families setting up a small entrepreneurial venture. This helps to keep the players engaged while effectively inculcating ethical behavior and financial skills such as budgeting, saving, and banking. PomPak is available in both English and Urdu for three age groups: children (9-12); adolescents (13-17); and youth (18-29).

    Anyone who completes the course is awarded a certificate of financial literacy jointly from NIBAF and NFLP-Y. It can be played on a desktop computer or can be downloaded from Google Play and the App Store for other devices.

    JazzCash, under its partnership, is going to provide SBP access to more than 26 million Pakistanis by promoting the PomPak application on its platform. This will help the application reach a wider audience, thus increasing its usage and eventually promoting financial literacy of the nation resulting in a highly positive socio-economic impact.

    Riaz Nazarali Chunara, Managing Director, NIBAF stressed on the role of increased financial literacy for promoting financial inclusion. He said that being Pakistan’s first e-learning financial literacy game, PomPak has revolutionized the way financial education is delivered. He went on to add that NIBAF is really proud of what PomPak has achieved since its launch and this partnership with JazzCash will contribute majorly towards our commitment to provide free of cost financial education to all.

    While emphasizing on the significance of the MOU, Erwan Gelebart, Chief Executive Officer JazzCash, said that there is ample scope for financial enablement and education through JazzCash.

    Creating a strong business and building a better Pakistan in parallel are key contributors of long-term success for JazzCash. This agreement will contribute in achieving the aforesaid objectives as we look forward to upskill the youngsters of Pakistan, he said.

    Under the guidance of SBP, NIBAF is implementing National Financial Literacy Program for Youth to impart essential financial education to Pakistani youth and school going children. In the last three years, the project has successfully reached more than 45 districts of Pakistan making over 750 thousands financial literate in this category.

  • Filing income tax return on July 01 impossible due to various reasons: KTBA

    Filing income tax return on July 01 impossible due to various reasons: KTBA

    KARACHI: As the Federal Board of Revenue (FBR) has decided to open IRIS portal for income tax return filing for tax year 2021 but on the other hand a tax bar objected that making compliance of return filing on first day of July was impossible due to various reasons.

    The Karachi Tax Bar Association (KTBA) on Friday responded to draft income tax return form issued by the FBR, which was issued through SRO 730(I)/2021 dated June 11, 2021.

    The tax bar said that practically it was impossible for any taxpayer, be it individual, Association of Person (AOP) or a company to file return of income particularly on the first day of July or immediately thereafter owing to following factors:

    Finally, we may add that practically it is impossible for any taxpayer, be it Individual, AOP or Company to file return of income particularly on the first day of July or immediately thereafter owing to following factors:

    • Certificates for the purpose of Sec. 149 are issued by the employers broadly by the end of July so is the case of other Withholding Certificates by the Withholding Agents.
    • Closing of books and completion of financial statements on thirtieth June is effectively impossible as Sales Tax Return for June is filed by the mid of July.
    • Mainly the taxpayer starts compiling necessary information & documents to prepare and file the returns in the first week of July and normally it takes at least a month for this purpose. As such the pace of filing of return in July is almost nil and very slow.

    The tax bar suggested that for the purpose of Section 118 of the Income Tax Ordinance, 2001, the FBR should fix the deadline to file return keeping in view the above as well.

    The KTBA however appreciated the FBR for issuing draft Income Tax Return Forms in respect of Tax Year 2021 for this Year are relatively available earlier albeit the timelines are not in consistent with Rule 34A of Income Tax Rules 2002 nor approved Change Request Form (CRF) is evenly shared in order to let us track and trace the changes incorporated in the draft returns.

    Secondly please appreciate that returns are not available in excel format to test the computations thus requirement of User Acceptance Test (UAT) of an amended return for testing environment is also not followed as required in Rule 34A(2)(e) read with sub-rule (3) ibid.

    The tax bar said that any timeline for the purpose of Sec.237 of the Income Tax Ordinance, 2001, shall not take effect unless due diligence prescribed in sub-rule (3) and (4) ibid, is followed in letter and spirit.

    It hoped the FBR will soon upload the amended return of income on IRIS portal for the purpose of UAT and time prescribed for suggestions/ objections in rules will be allowed accordingly.

  • Beverage Cans plans to raise Rs3.3 billion in Initial Public Offering

    Beverage Cans plans to raise Rs3.3 billion in Initial Public Offering

    KARACHI: Pakistan Aluminium Beverage Cans Ltd (PABC) is planning to raise at least Rs 3.3 billion by offering a 26 per cent stake to institutional and ordinary investors in an initial public offer (IPO) on the Pakistan Stock Exchange (PSX).

    Book building will take place on June 22 and 23, followed by public subscription on June 29 and 30, a statement said on Friday.

    The entire offer of 93.8 million ordinary shares, or 26 per cent of the post-IPO shareholding, will be offered through the book-building process at a floor price of Rs35 per share. Successful bidders will be provisionally allotted only 75 per cent of the issue size and the remaining shares will be offered to the retail investors at the strike price.

    It means PABC will raise at least Rs3.3 billion in the IPO. But based on the interest from investors during the book building process, the strike price can rise by 40 percent (Rs49 a share), thus helping the company collect Rs4.6 billion.

    Ashmore Mauritius PABC Ltd, a specialist emerging markets investment manager based in Mauritius, currently holds 51 per cent shareholding in the company while Liberty Group, a leading player in textile and power sectors, owns the remaining 49 per cent stake. With the exit of Ashmore post-IPO, Liberty Group, general public and Soorty Enterprises will own 54 per cent, 26 per cent and 20 per cent shareholding in the company.

    The company started its operations in 2017 as the country’s only local manufacturer of aluminum beverage cans. Until then, bottlers in Pakistan and Afghanistan relied on expensive imports to package their beverages in environment-friendly aluminum cans.

    PABC supplies to the bottlers of all major carbonated drinks, including PepsiCo and Coca-Cola, in both Pakistan and Afghanistan. Exports to Afghanistan constituted 35 per cent of the company’s sales in calendar year 2020.

    Established on a 20.9-acre piece of land in Faisalabad’s Special Economic Zone with a current rated capacity of 700 million cans per annum, PABC continues to enjoy a 10-year tax holiday. The company is increasing its rated capacity by almost 36 per cent to 950 million cans per annum by July next year.

    It has grown its revenue at an annualised rate of 18.7 per cent in the last five years. In the third full year of its operation (2020), the company’s net profit amounted to Rs610.7 million, up 314 per cent from 2019. It expects its bottom line to grow at 140 per cent in 2021.

    Euromonitor International puts the size of Pakistan’s soft drinks market at 3.8 billion litres per annum. It expects the market to grow at a five-year annualised rate of seven per cent to reach 5.3 billion litres in 2025 on the back of rising purchasing power, urbanisation and favorable demographics.

    With the estimated market size of 275 million cans, aluminium beverage cans in Pakistan account for only 3.6 per cent of total soft drinks sales as opposed to the global average of 19 per cent.

    Growing can penetration may increase their sales to 650 million cans by 2025, delivering an annualised  growth rate of 19 per year. PABC will be its key beneficiary as the can imports are virtually non-existent due to high freight costs and duties.

    PBAC’s biggest export market is Afghanistan as the country does not have local beverage glass manufacturing facilities. It commands over 50 per cent market share, thanks to its contracts with key beverage bottlers, including franchisees of Coca-Cola and Pepsi, in Afghanistan.

    In addition, PBAC recently signed agreements and initiated exports to leading beverage players in the United States. North America accounts for more than one-third of the global consumption of aluminium cans mainly because of the environmental concerns.  The company is also in discussion with key beverage bottlers in Bangladesh and Iraq.

  • Knowledge Platform launches free online solution for exam preparation

    Knowledge Platform launches free online solution for exam preparation

    ISLAMABAD: To enhance continued support to teachers and students, Knowledge Platform has launched a free online examination preparation solution called ‘Exam Prep Master’.

    This solution will prepare SSC students, who are studying to appear in the Federal and Punjab Boards’ Matriculation examinations in July 2021.

    Knowledge Platform, a leading ed-tech organisation in Pakistan, is aware of the challenges schools, teachers, and students face to effectively prepare for the board examinations.

    Talhah Munir Khan, CEO, Knowledge Platform, stated: “Covid-19 has changed the way students are obliged to prepare for their board exams. With zero or less classes being held, the resources are limited for exam preparation.

    “To address this issue, we have come up with a solution suitable for students and teachers whereby they can prepare for their examinations in a short time span. We are obliged to assist our youth in these unprecedented and difficult times, and we will continue our support for them with innovative learning solutions.”

    ‘Exam Prep Master’ is an online preparation platform that includes a wide range of selected practice questions with solutions, based on past board examination papers.

    The aim is to support the students academically and reduce their exam-related anxiety by providing a real-life examination experience, thus, helping them prepare in limited available time for their board exams.

    The online preparation solution is comprised of Mock Exams, Animated Video Lessons, Exam Tips, Cheat Sheets and Past Papers. Other key features and benefits of this examination preparation solution include free of cost support for all, Grades Covered from 9th and 10th, biology, chemistry, mathematics, physics subjects are covered in this solution.

    Self-diagnostic test to check if students are ready for the board exam, two mock tests of 20 questions each per grade per subject, to help students practice, weekly publishing of additional mock tests and solutions within study groups, immediate availability of report card showing students’ strong and weak skills are the key features of this solution.

    Opportunity for students to study at their own pace using a mobile phone, tablet, or laptop in the comfort of their homes. Students may directly register for the online examination preparation programme from Learn Smart Pakistan.

    Knowledge Platform, the leading learning solutions company in Pakistan, is already working with 450,000+ students and 1,000+ schools across Pakistan.

  • Stocks gain 81 points in narrow range trading

    Stocks gain 81 points in narrow range trading

    KARACHI: The stock market gained 81 points on Friday while trading in narrow range trading activity during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,239 points as against previous day’s close of 48,158 points, showing an increase of 81 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range between -135 points and +254 points, closing the session +81 points.

    Refineries, Cement, Fertilizer, O&GMCs and Technology sector inched up, which helped index trade in the positive territory.

    Concerns of redemption with some mutual funds maintained selling pressure.

    Among scrips, HUMNL led the volumes with 88.1 million shares, followed by WTL (76.4 million) and BYCO (70.7 million).

    Sectors contributing to the performance include Banks (77 points), Vanaspati (-12 points), Cement (+58 points), Refinery (+39pst), Technology (+19 points).

    Volumes declined from 1117.4 million shares to 750.6 million shares (-33 percent DoD). On the contrary, Average traded value increased by 5 percent to reach US$ 131.8 million as against US$ 124.9 million.

    Stocks that contributed significantly to the volumes include HUMNL, WTL, BYCO, UNITY and SILK, which formed 44 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+31 points), NRL (+20 points), POL (+20 points), TRG (+19 points) and FFC (+14 points).

    Stocks that contributed negatively include HBL (-63 points), MTL (-15 points), OGDC (-14 points), MCB (-13 points) and UNITY (-12 points).

  • KIBOR rates on June 18

    KIBOR rates on June 18

    KARACHI – The State Bank of Pakistan (SBP) has released the Karachi Interbank Offered Rates (KIBOR) as of Friday, June 18, 2021.

    (more…)
  • Rupee falls by 15 paisas against dollar

    Rupee falls by 15 paisas against dollar

    The Pakistani Rupee faced a depreciation of 15 paisas against the US Dollar on Friday, closing at Rs156.89 in the interbank foreign exchange market.

    (more…)