Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR directs customs officers to submit asset declaration, PERs

    FBR directs customs officers to submit asset declaration, PERs

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday directed officers of Pakistan Customs Service (PCS) from Grade – 19 to Grade – 20, who are in promotion zone, to submit asset declaration and performance evaluation reports (PERs) by July 10, 2021.

    The FBR said that the meeting of Central Selection Board (CSB) for promotion of Pakistan Customs Service from BS-20 to BS-21 and BS-19 to BS-20 will be held shortly.

    All BS-19 and BS-20 officers of PCS in the promotion zone are advised to ensure that their PERs and Declaration of Assets up to June 30, 2021 are complete and submitted to the Board latest by July 10, 2021 positively.

    Completion of PERs and submission of Declaration of Assets are the pre-requisites for promotion to selection grads under Civil Servants Promotion (BS-18 to BS-21) Rules, 2019.

    The FBR is trying hard to ensure that all eligible officers be considered for promotion in the forthcoming CSB meeting. However, cooperation in timely completion of service record is equally essential.

    All BS-19 and BS-20 officers of PCS are advised to get the needful done as early as possible. The Reporting/Countersigning Officers are also advised to forward PERs to the Board (ERM Section), if pending with them immediately.

  • ECC approves policy for regulation of NGOs/NPOs receiving foreign funds

    ECC approves policy for regulation of NGOs/NPOs receiving foreign funds

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Wednesday approved the ‘Policy for Regulation of NGOs/NPOs receiving Foreign Contributions-2021’.

    The NGO Policy, 2021 has been designed with the aim to fostering a sense of partnership between government and non-government sectors.

    Furthermore, under the new policy approval process (for registration) will be completed within 60 days, maximum, through online submission of application and consultation, doing away with manual processing and eliminating long delays.

    The new policy seeks to expand space for credible organizations for a playing an effective role in socio-economic development while detering NGOs with dubious credentials.

    ECC appreciated the efforts of Economic Affairs Division for designing the much needed policy and directed that any further suggestions/positive feedback from all the relevant stakeholders may also be incorporated in the policy and a report on the same may be shared with the forum in 4-8 weeks.

    Federal minister for finance and revenue, Shaukat tarin, chaired the meeting of the economic coordination committee (ECC) of the cabinet.

    Federal Minister for Energy Hammad Azhar, Federal Minister for Railways Azam Sawati, Federal Minister for Economic Affairs Division Omar Ayub Khan, Federal Minister for Maritime Affairs Ali Haider Zaidi, Federal Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Privatization Muhammad Mian Soomro, Adviser to the Prime Minister on Commerce Abdul Razak Dawood, Adviser to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Power Tabish Gauhar, SAPM on Finance and Revenue, Dr. Waqar Masood, Governor State Bank of Pakistan Dr. Reza Baqir, concerned Federal Secretaries and senior officers participated in the meeting.

    ECC approved the request of Ministry of National Food Security and Research for the provision of 500,000MT of wheat to the Government of Khyber Pakhtunkhwa out of PASSCO stock during the crop year 2021-22 on the usual terms and conditions. All charges, including incidental charges will be borne by the Food Department, KP. Similarly, 500,000MT imported wheat was also allocated to Food Department, KP to meet the provincial requirement.

    ECC approved the summary of Ministry of Energy (Petroleum Division) for allowing operational losses upto a maximum of 0.5% for gasoline transportation through WOP & MFM pipelines through Inland Freight Equalization Margin (IFEM). The same will be adjusted against actual based on physical inventory of pipelines to be undertaken periodically. The actual rate will be determined by OGRA based on actual losses and excess margin would be brought before ECC. ECC also approved the request of Ministry of National Food Security & Research for import of 3MMT of wheat subject to approval by PPRA Board for building up the strategic reverses of wheat in the country.

    ECC approved US$ 17.3m for PIA-IL for payment of recurring as well as one-off liabilities in respect of Roosevelt Hotel New York, USA, as verified by the Auditor and recommended by PIA-IL Board. ECC also directed that Finance, Privatization Commission, PIA/Aviation Division should consult with each other and propose a strategy in a month’s time for deciding the future of the asset.

    The following Technical Supplementary Grants were approved by the ECC:

    i) Rs. 1.370 billion for the Finance Division to provide wheat subsidy to the Government of Gilgit Baltistan.

    ii) Rs. 32.097 million for the Ministry of Industries and Production to meet the expenditure of its various Organizations.

    iii) Rs. 1.6 billion for the Ministry of Industries and Production for clearing the bill of SNGPL for the month of May 2021

     iv) Rs. 274.161 million for the Ministry of Information and Broadcasting to meet the shortage of budget of PTV Multan, AJK, English News Channel and APPC.

    v) Rs. 570 million for the Ministry of Interior for Security enhancement at Pakistan-Afghanistan Border.

    vi) Rs. 56.341 million for the Ministry of Maritime Affairs for its various miscellaneous expenditure.

    vii) Rs. 145 million for Pakistan Nuclear Regulatory Authority to meet its various employee related expenses.

    viii) Rs. 2.467 billion for Revenue Division for meeting the requirements of Pakistan Raises Revenue Program.

    ix) Rs. 834 million for Pakistan Atomic Energy Commission to meet its employee related expenditure.

    x) Rs.49 billion for Karachi Coastal Power Project Unit 1 & 2 as requested by Pakistan Atomic Energy Commission.

  • Citi Pharma’s IPO oversubscribed; Rs2.32 billion raised in book building

    Citi Pharma’s IPO oversubscribed; Rs2.32 billion raised in book building

    KARACHI: The book-building process of Citi Pharma’s Initial Public Offer (IPO) has concluded with an oversubscription of 2 times, according to Topline Securities, advisor and book runner of the issue.

    “The IPO received an overwhelming response from institutional investors and high-net worth individuals as the strike price clocked in at Rs 32/share, 14.3% higher than the floor price of Rs28,” the leading API Manufacturer of the country said in a statement on Wednesday.

    Citi Pharma has raised Rs 2.32 billion in total, making it the second Pharma sector IPO in 23 years and the single largest IPO of 2021 till date . 

    “The response to the book building was far better than our expectations” said Mohammed Sohail of Topline Securities. In the last IPO (Organic Meat) managed by Topline investors have made a gain of close to 90% in a year.

    Several brokerages had had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs 4 billion against the IPO’s book-building size of Rs 2 billion. Investors who bid at Rs32 will get approx. 10% of their bid quantity.

    The general public will subscribe to the remaining 18.1 million shares (25 percent of the total offer size) on June 23/24 at the strike price of Rs 32” the company said. 

    Rizwan Ahmed, CEO Citi Pharma, in his message thanked investors for their overwhelming response and vowed to ensure growth of their shareholders’ equity.

    Omar Salah Ahmed – Head of Corporate Finance & Advisory at Topline added: “Citi Pharma is one of the most unique companies in Pakistan’s pharma sector and this expansion will bring in a new phase for the Company. We wish them all the best for the future as well as the investors – who will no doubt be a part of a great growth story. Investors have responded to the future growth.”

    Citi Pharma plans to become first fully integrated listed pharmaceutical company in Pakistan, serving from raw material consumers to end medicine consumers.

    Citi Pharma has achieved a revenue growth from PKR 1,016 million in FY16 to PKR 3,528 million in FY20. Showcasing 36.2% CAGR in 5 years. The company recorded PKR 4,015 million in sales during 9MFY21 already surpassing last year’s sales. 

    Company is planning to expand its existing capacity of 3,600 tonnes per annum of paracetamol to 6,000 tonnes per annum. In addition, the company says it plans to add new APIs as well as a pharmaceutical formulation, or final products, to its existing product line.

    Citi Pharma also wants to build three manufacturing facilities, taking its total capacity to 200,000 vials/injectables per day, dry powder/suspension to 60,000 bottles per day, capsules to 4.2 million per day, and tablets to 4.5 million per day. These include dedicated manufacturing lines for penicillin, cephalosporin, and psychotropic and narcotics drugs.

  • PMRC, HBL Islamic Banking raise Rs1bn Sukuk

    PMRC, HBL Islamic Banking raise Rs1bn Sukuk

    KARACHI: Pakistan Mortgage Refinance Company (PMRC) announced the closing of another Sukuk with HBL Islamic Banking.

    A statement issued on Wednesday said that the sukuk will serve to make Shariah Compliant Housing Finance more accessible to the public.

    On the occasion Mudassir CEO/MD PMRC said: “PMRC is delighted to partner with HBL Islamic Banking for this Sukuk.

    “The funds raised under this Sukuk are important for the promotion of the Islamic housing finance market.

    “I am confident this will be beneficial in the growth of fixed-rate, low-cost housing for the end consumers.”

    Muhammad Afaq Head HBL Islamic Banking said: “HBL Islamic Banking is pleased to be collaborating with PMRC in the placement of the Rs1 billion Sukuk.

    “The funds will be used to promote financing in the housing sector of Pakistan with a special focus on low-cost housing initiatives.

    “This will enable us to play our part in the economic development of the country.”

  • SBP allows banks to charge fee on high value transactions

    SBP allows banks to charge fee on high value transactions

    KARACHI: State Bank of Pakistan (SBP) on Wednesday allowed banks to charge a minimal fee on high-value transactions of Interbank Fund Transfer (IBFT).

    The central bank in a statement said that the new instructions allow banks and other service providers to charge a minimal fee on high-value transactions while protecting and encouraging the low-income segments of population to continue using digital transactions free of cost.

    The SBP directed banks to provide free of cost digital fund transfer services to individual customers up to, at least, a minimum aggregate sending limit of Rs25,000 per month per account/wallet. However, banks may choose to set this aggregate limit at a higher amount as well.

    This would allow individual customers to make as many free fund transfer transactions remaining within their aggregate monthly limit of free transfers.

    For transactions above the aggregate limit of Rs25,000 per account in a month, banks may charge individual customers, a transaction fee of no more than 0.1% of the transaction amount or Rs200, whichever is lower.

    This will enable service providers to recover part of costs they incur on providing inter-bank fund transfer service and build sustainable and innovative business models.

    Nevertheless, the new instructions encourage banks to provide free of cost digital fund transfer services to their customers to promote adoption of digital payments in the country.

    SBP has also advised banks that all digital fund transfer transactions between different accounts within the same bank (intra-bank fund transfers) shall remain free. Further, incoming interbank fund transfer transactions shall also remain free. SBP has further directed banks to ensure proper disclosure of charged and free IBFT amounts along with applicable fees to their customers by sending regular notifications through SMS, apps and email. After every digital transaction, banks are required to send free of charge SMS to their customers on their registered mobile numbers intimating them about the transaction amount and the charges being recovered.

    In order to provide seamless digital banking services to the public, SBP has further advised banks to remove any limits on the number of fund transfer transactions on their customer accounts/wallets unless there are genuine concerns related to AML/CFT or frauds.

    To cope with the extraordinary situation of lockdowns amid Covid-19 Pandemic in 2020, SBP advised banks and other service providers in March 2020 to offer free of cost Inter Bank Fund Transfer (IBFT) services to all their customers regardless of the size of transaction.  The objective was to facilitate bank customers to meet their banking services needs through online services during exceptionally difficult times and to avoid in person interaction to curb the spread of COVID. This step resulted in an overwhelming response by customers, with internet and mobile banking transactions more than doubling in Q2FY21 over the last year.

    The SBP appreciates the support of all service providers for this initiative by allowing free of cost interbank fund transfer services to the public without recovering their operational cost and incurring substantial revenue losses.

    It is encouraging that the Covid-19 situation has improved significantly and despite fluctuating number of cases the overall conditions now allow relaxations in mobility restrictions while following proper SOPs.  In this backdrop, SBP reviewed the current IBFT pricing mechanism and has made some changes to ensure that free of charge IBFT services are provided by banks and other financial institutions on a sustainable basis.

  • Stock market ends down by 152 points on selling pressure

    Stock market ends down by 152 points on selling pressure

    KARACHI: The stock market ended down by 152 points on Wednesday amid selling pressure witnessed during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,481 points as against previous day’s closing of 48,633 points, showing a decline of 152 points.

    Analysts at Arif Habib Limited said that the market saw persistent selling pressure that was felt across the board and made the index trade between -201 points and +246 points, closing the session -152 points.

    Among E&P, OGDC and PPL both traded below LDCP against POL, which showed price uptick. Cement sector also traded in a narrow range. Although KEL & WTL retained top slot, volumes remained relatively low. Among scrips, KEL realized 114.9 million shares in trading, followed by WTL (86.4 million) and BYCO (63 million).

    Sectors contributing to the performance include Textile (+25 points), Cement (-54 points), Banks (-33 points), Chemical (-24 points), Fertilizer (-17 points) and Pharma (-16 points).

    Volumes declined from 1224.5 million shares to 936.7 million shares (-24 percent DoD). Average traded value also declined by 21 percent to reach US$ 142.7 million as against US$ 179.8 million.

    Stocks that contributed significantly to the volumes include KEL, WTL, BYCO, HASCOL and GGGL, which formed 38 percent of total volumes.

    Stocks that contributed positively to the index include HUBC (+27 points), PAKT (+17 points), POL (+16 points), KTML (+16 points) and SRVI (+9 points). Stocks that contributed negatively include ENGRO (-21 points), PPL (-17 points), COLG (-15 points), KEL (-14 points) and DGKC (-14 points).

  • Rupee weakens by 17 paisas against dollar

    Rupee weakens by 17 paisas against dollar

    KARACHI: The Pak Rupee fell by 17 paisas against the dollar on Wednesday as demand remained high for import and corporate payments.

    The rupee ended Rs156.96 to the dollar from previous day’s closing of Rs156.79 in the interbank foreign exchange market.

    The dollar in interbank appreciated by Rs4.68 since May 07, 2021. The dollar was at Rs152.28 in the interbank foreign exchange market on May 07, 2021.

  • Additional withholding tax imposed on cars sold without registration

    Additional withholding tax imposed on cars sold without registration

    KARACHI: The application of withholding tax on cars / motor vehicles that are sold without registration shall pay additional withholding income tax.

    According to the Finance Bill, 2021 the withholding tax in addition to registration/transfer would be applicable and the same would be collected by the motor vehicle registration authority of Excise and Taxation Department if manufactured motor vehicles sold prior to registration by the person who originally purchased it from the local manufacturer.

    Tax analysts at KPMG Taseer Hadi Chartered Accountants said that Tax Laws (Amendment) Ordinance, 2021 inserted sub-section (2A) in Section 231B, whereby, every motor vehicle registration authority of Excise and Taxation Department shall collect advance tax at the time of sale of such vehicles from buyers of locally manufactured vehicles who sell the vehicles within 90 days of taking delivery from the local manufacturers/assemblers, whether or not registered by the respective authorities.

    The rates of withholding tax on motor vehicles sold prior registration are:

    Up to 1000CC: Rs50,000

    1000CC to 2000CC: Rs100,000

    2000CC and above: Rs200,000

    The tax analysts said that above rates were applicable till June 30, 2021.

    However, the Finance Bill, 2021 proposed to continue the provision. However, the restriction of 90 days is proposed to be done away with.

  • State Bank renews credit rating agencies status

    State Bank renews credit rating agencies status

    KARACHI: The State Bank of Pakistan (SBP) on Tuesday renewed the status of both credit rating agencies operating in Pakistan namely ‘VIS Credit Rating Company Limited (VIS)’ and ‘The Pakistan Credit Rating Agency Limited (PACRA)’ as eligible / recognized External Credit Assessment Institutions (ECAIs) for the calendar year 2021. 

    Banks and DFIs using the standardized approach of Basel framework are allowed to use credit ratings assigned by VIS and PACRA for CAR calculation purposes, the central bank added.

  • Telecom sector gets relief measures in budget 2021/2022

    Telecom sector gets relief measures in budget 2021/2022

    ISLAMABAD: The telecommunication sector has received several relief measures in the federal budget 2021/2022 that will help new investment in this sector.

    According to budget commentary released by KPMG Taseer Hadi & Co. Telecommunication is one of the largest service sectors of Pakistan contributing substantial revenue in the form of taxes on telecom services and income tax on profits.

    The Finance Bill 2021 proposes several relief measures for this sector, some of them were being demanded for long, such as grant of ‘industry’ status for tax purposes.

    These measures will help to attract investment in telecom infrastructure and reduce the cost of doing business and consequential relief to the public.

    Following tax relief measures are proposed for this sector:

    —Grant of industry status which will resolve several anomalies in taxation of this sector. Also, it will make it possible for telecom companies to import plant and machinery without collection of advance tax after obtaining exemption certificate from the Commissioner.

    —Reduction in rate of withholding tax on receipts from 8% at present to 3%. As the said tax is also minimum tax, this will entail a reduction of 62.5% in effective tax rate on income for those with low profits.

    —Reduction in rate of federal excise duty on telecom services from 17 percent to 16 percent. This will however only be relevant for services rendered in Islamabad as services rendered in provinces are subject to provincial sales tax.

    —Abolition of fixed sales tax on SIM cards. However, this will not affect existing cases in litigation.