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Author: Mrs. Anjum Shahnawaz

  • Stock market gains 91 points amid selling pressure

    Stock market gains 91 points amid selling pressure

    KARACHI: The stock market witnessed a gain of 91 points on Monday amid heavy selling despite positive news flows related to budgetary measures.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,303 points as against last Friday’s closing of 48,212 points, showing an increase of 91 points.

    Analysts at Arif Habib Limited said that the market saw heavy selling pressure today against all the positive news flow that came to fruition over the weekend, from possible reduction in CGT to duty reduction for Auto manufacturers and release of circular debt related payments to IPPs.

    Reportedly, ISL increased steel prices today which helped the stock price gain during the session, however profit booking brought the price below LDCP by the closing. E&P, Refinery, O&GMCs, Technology stocks bore selling pressure.

    KAPCO, which was the main beneficiary of release of circular debt related funds from the Government, could not stand firmly and selling pressure brought its price below LDCP briefly. Among scrips, HUMNL topped the volumes with 118 million shares, followed by WTL (80.5 million) and PTC (64.6 million).

    Sectors contributing to the performance include Glass (+22 points), Fertilizer (+19 points), Textile (+18 points), Power (+14 points) and Cement (+12 points).

    Volumes increased from 867.3 million shares to 936 million shares (+7 percent DoD). Average traded value also increased by 4 percent to reach US$ 178.3 million as against US$ 171.9 million.

    Stocks that contributed significantly to the volumes include HUMNL, WTL, PTC, BYCO and TELE, which formed 37 percent of total volumes.

    Stocks that contributed positively to the index include SYS (+27 points), GHGL (+22 points), KTML (+19 points), HUBC (+12 points) and PTC (+11 points). Stocks that contributed negatively include TRG (-25 points), PSO (-12 points), PPL (-10 points), NML (-9 points) and HBL (-9 points).

  • Rupee falls by 69 paisas on import payment demand

    Rupee falls by 69 paisas on import payment demand

    KARACHI: The Pak Rupee fell by 69 paisas against the dollar on Monday owing to higher demand for import payments as the market opened after two weekly holidays.

    The rupee ended Rs155.31 to the dollar from last Friday’s closing of Rs154.62 in the interbank foreign exchange market.

    Currency experts said that the rupee was weakened as the market had seen higher demand of the foreign currency for import and corporate payments.

    They said that the higher demand for the foreign currency was due to market was opened after two weekly holidays.

  • FBR urged to issue FTNs against withholding tax deduction

    FBR urged to issue FTNs against withholding tax deduction

    KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to issue Fee Tax Numbers (FTNs) to persons who are not liable for withholding tax.

    In its proposals for budget 2021/2022, the Karachi Tax Bar Association (KTBA) said that Section 49(3) of the Income Tax Ordinance, 2001 has specified that any payment received by the Federal Government, a Provincial Government or a Local Government shall not be liable to any collection or deduction of advance tax.

    No clarification or list of FTN entities to whom this subsection applies, the tax bar said.

    In absence of any SRO or underlying Rules causes unease to the withholding agents to determine proper withholding tax treatment in such case.

    FBR should issue a separate list of Fee Tax Numbers (FTNs), who are not liable to tax withholding as provided under section 49(3) of the Ordinance through a S.R.O.

    The KTBA said that this will assist the withholding agents and save considerable time in deciding whether a respective FTN holder is required to produce exemption certificate or not.

  • KTBA proposes amendments to automatic stay in recovery cases

    KTBA proposes amendments to automatic stay in recovery cases

    KARACHI: Karachi Tax Bar Association (KTBA) has recommended amendments to provisions of the Income Tax Ordinance, 2001 related to automatic stay in recovery notices.

    It is proposals for budget 2021/2022, the KTBA said that Sub-Section (2) of Section 138 if Income Tax Ordinance, 2001 provides that If the amount referred to in the notice issued under sub-section (1) is not paid within the time specified therein or within the further time, if any, allowed by the Commissioner, the Commissioner may proceed to recover from

    — the taxpayer the said amount by one or more of the following modes, namely:

    — attachment and sale of any movable or immovable property of the taxpayer;

    — appointment of a receiver for the management of the movable or immovable property of the taxpayer.

    — arrest of the taxpayer and his detention in prison for a period not exceeding six months arrest of the taxpayer and his detention in prison for a period not exceeding six months

    Provision of automatic stays not all exhaustive.

    The tax bar said that if a person pays ten percent of the disputed demand under section 140 even then the recovery from taxpayers may be made through the modes envisaged under sub-section (2) of section 138 which is harsh and rendered section 140 redundant and superfluous.

    The tax bar proposed that the condition of the payment of ten percent of amount due shall also be made applicable for section 138 to create synchronization between section 138 and 140 of the Ordinance.

    The proposed amendment seeks to address the inequity afforded in the law.

  • FPCCI calls for broadening of tax base to push GDP growth

    FPCCI calls for broadening of tax base to push GDP growth

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday advised the government to reduce tax rates and broaden the tax base for achieving GDP growth at six percent during next two years.

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  • Karachi Chamber organizes COVID vaccination facility

    Karachi Chamber organizes COVID vaccination facility

    KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) in collaboration with Red Crescent Society organized a daylong COVID-19 Vaccination Facility on Saturday, which was attended by scores of members, general public, managing committee members and the staff.

    According to a statement issued, single dose Cansinobio vaccine recently introduced by the government for people above 30 years of age was given to visitors who appreciated numerous arrangements made at KCCI where people were being vaccinated in a pleasant and hassle-free environment.

    President KCCI Shariq Vohra, while commenting on the occasion, stated that every single citizen of not just Karachi but the whole country must get themselves vaccinated at the earliest in order to save themselves and their loved ones from the life-threatening COVID-19 pandemic.

    He also appreciated all the efforts being made by the Federal and Sindh Governments who were trying their level best to somehow contain further spread of COVID-19 pandemic but the public must also join hands and come forward to fight against the pandemic by getting themselves vaccinated as quickly as possible.

    He particularly mentioned that the efforts made Senior Vice President Saqib Goodluck, Chairman of KCCI’s Health & Education Subcommittee Jawed Siddiq Mittiwala and Advisor Ateeq ur Rehman deserve to be applauded that resulted in setting up of an ideal vaccination center for a day at KCCI. “More such initiatives have to be taken under Businessmen Group’s policy of public service to not only serve the business and industrial community but also all the citizens of Karachi without any discrimination”, he added.

  • Weekly Review: stock market to remain positive on budget incentive expectations

    Weekly Review: stock market to remain positive on budget incentive expectations

    KARACHI: The stock market will likely remain positive during the next week with a view of a positive budget for the market, analysts said.

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  • Company incorporation increases to 143,416: SECP

    Company incorporation increases to 143,416: SECP

    ISLAMABAD: Total number of companies registered with the Securities and Exchange Commission of Pakistan (SECP) has increased to 143,416 with new incorporation of 1,597 in May 2021, a statement said on Friday.

    According to the statement SECP registered 1,597 new companies in May 2021, witnessing a growth of 107 percent as compared to corresponding period last year. The total number of registered companies increased to 143,416.

    This is for the second consistent month that over 100 percent growth in incorporation of new companies is being witnessed.

    The trend of growth is attributed to digitalization/automation, introduction of simplified combined processes for name reservation and incorporation, and facilitation extended by the SECP’s newly established Business Centre.

    In May, around 99 percent companies were registered online, 36 percent of applicants completed the incorporation process same day while 175 foreign users were also registered from overseas.

    During the month of May, 68 percent companies had been private limited, 28 percent single member and remaining 4 percent comprise public unlisted companies, not for profit associations, trade organizations and limited liability partnerships (LLP).

    The construction & real estate sector took the lead with incorporation of 252 companies, while companies in other sectors include: trading 247, I.T 216, services 149, e-commerce 64, food & beverages 59, education 51,  corporate agricultural farming 50, market & development 39, textile 37, tourism  34, chemical 33, healthcare 31, engineering 29, auto & allied 27, logging 25, pharmaceutical 24, mining & quarrying 21, broadcasting & telecasting, and fuel and energy 19 each, cables & electric goods, paper & board, and transport 16 each, cosmetics & toiletries 14, power generation 12, communication 11 and remining 67 companies were registered in other sectors.

    Foreign investment has been reported in 48 new companies from Azerbaijan, China, Denmark, Germany, Korea South, Kuwait, Malta, the Netherlands, Norway, Russia, Singapore, Turkey, UAE, the UK and the US.

    The highest numbers of companies, i.e. 519 were registered in Islamabad, followed by 513 and 250 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 116, 88, 62, 36, 11 and 02 companies respectively.

  • FBR impounds benami luxury vehicle

    FBR impounds benami luxury vehicle

    ISLAMABAD: Anti-Benami Zone – I Islamabad of the Federal Board of Revenue (FBR) has impounded a luxury vehicle from a residential premise in the capital.

    A FBR spokesman on Friday said that it was first of its kind operation in which the anti-benami zone confiscated a luxury five-door vehicle from a residential premise in the capital.

    Initial clue to this vehicle’s benami ownership was traced from Excise Office Islamabad Capital Territory.

    The suspected benami owner was not enrolled with FBR and upon enquiry he disowned the vehicle and disclosed that he was just a driver whose CNIC was used by the beneficial owner of the vehicle.

    After completion of enquiry and investigation, a reference was filed to the Adjudicating Authority which was decided in favor of ABI.

    Whereabouts of the vehicle were traced to a house in Islamabad which was subsequently searched, and, on 2nd June 2021, the vehicle was confiscated / impounded with the help of local Law Enforcement Agencies (LEAs) under the Benami Transactions Prohibition Act 2017.

    In accordance with the directions of the Prime Minister, momentum against benami assets accelerated in June 2019 with the inception of Anti Benami Zones across Pakistan.

    Newly created zones have so far filed more than 90 references of various categories of assets including shares, bank accounts, vehicles, land etc. Among them are 33 vehicles which shall be confiscated as soon as these references attain finality under the law.

  • Share market gains 118 points as auto sector performs

    Share market gains 118 points as auto sector performs

    KARACHI: The share market gained 118 points on Friday as positive sentiments were seen in auto sector. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,212 points as against previous day’s closing of 48,094 points, showing an increase of +118 points.

    Analysts at Arif Habib Limited said that the market maintained positive momentum today with auto sector performing to its best and helped maintain bullish trend for the market.

    Auto sector performed on the back of expectation of an increase in the number of auto sales.

    Cement and Steel sector stocks rallied as well, helping put a total of +333 points and closed the session +118 points. E&P, O&GMCs and Fertilizer sector stocks also contributed to the positivity in the Index.

    Technology sector saw NETSOL performing well, whereas other tech stocks bore selling pressure. Among scrips, WTL led the table with 89 million shares, followed by HASCOL (78.7 million) and BYCO (54.3 million).

    Sectors contributing to the performance include Autos (+35 points), O&GMCs (++25 points), E&P (+23 points), Pharma (+23 points) and +14 points).

    Volumes declined from 889.9 million shares as against 867.3 million (-3 percent DoD). Average traded value also declined by 16 percent to reach US$ 171.9 million as against US$ 204.5 million.

    Stocks that contributed significantly to the volumes include WTL, HASCOL, BYCO, FCSC and PTC, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include UBL (+16 points), GLAXO (+14 points), HCAR (+13 points), HASCOL (+12 points) and PSMC (+12 points). Stocks that contributed negatively include BAHL (-25 points), PSX (-11 points), MEBL (-9 points), KTML (-8 points) and COLG (-7 points).