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Author: Mrs. Anjum Shahnawaz

  • Pakistan exports textile products worth $11.35bn in nine months

    Pakistan exports textile products worth $11.35bn in nine months

    KARACHI: Pakistan has exported textile products worth $11.35 billion during first nine months (July – March) 2020/2021, showing 9 percent growth, according to data released by Pakistan Bureau of Statistics (PBS) on Saturday.

    The exports of textile products during the first nine months of the last fiscal year were at $10.41 billion, the PBS reported.

    In terms of volume the export of knitwear was on the top in textile exports. The country exported knitwear products worth $2.78 billion during first nine months of the current fiscal year as compared with $2.29 billion in the corresponding months of the last fiscal year, showing a growth of 21 percent.

    The export of readymade garments was recorded at $2.27 billion during July – March 2020/2021 as compared with $2.17 billion in the corresponding period of the last fiscal year.

    The export of bedwear recorded 16.5 percent growth to $2.05 billion during first nine months of the current fiscal year as compared with $1.76 billion in the corresponding period of the last fiscal year.

    The export of textile products in the month of March 2021 recorded 30 percent growth to $1.35 billion when compared with $1.04 billion in the same month of the last year.

  • FBR urged to revise slabs for advance tax collection on motor cars

    FBR urged to revise slabs for advance tax collection on motor cars

    KARACHI: Federal Board of Revenue (FBR) has been urged to revise slabs of engine capacity of motor cars to give benefit to buyers in payment of withholding tax.

    Overseas Investors Chamber of Commerce and Industry (OICCI) in its proposals for budget 2021/2022 submitted to the FBR, said that advance tax under section 231B of Income Tax Ordinance, 2001 is collected by manufacturers on following categories:

    On engine capacity 1001cc to 1300cc the advance tax is collected at Rs25,000.

    While on engine capacity 1301 cc to 1600cc the advance tax is collected at Rs50,000.

    OICCI recommended that as locally manufactured sedans passenger cars fall slightly above the 1300cc category the slightly higher engine capacity size results in these vehicles falling in higher tax bracket making it more expensive with higher upfront cost to customers.

    Amendment should be made in the categories of vehicles mentioned in Division VII of Part IV of First Schedule as follows:

    On engine capacity 1001cc to 1350cc the advance tax rate should be Rs25,000.

    While on engine capacity 1351 cc to 1600cc the advance tax rate should be Rs50,000.

    In its proposals for auto sector, the OICCI recommended that minimum tax rate should be reduced to 0.2 percent for authorized dealers of local vehicle manufacturers as they have high turnover and low margins.

    The OICCI further said that exempt imports made under SRO 655(I)/2006 & SRO 656(I)/2006 from ACD levied vide SRO 1178 (I) 2015 and enhanced vide SROs 630 (I)/2018 and 670 (I)/2019.

    Federal Excise Duty (FED) on locally manufactured vehicles should be withdrawn.

    Levy of FED on locally manufactured vehicles be withdrawn by deleting the serial no. 55B of Table I of First Schedule to the Federal Excise Act, 2005 as it has resulted in significant increase of sales price of vehicles with consequential reduction in sales volume of the respective vehicle categories.

  • Weekly Review: market to remain bullish

    Weekly Review: market to remain bullish

    KARACHI: The stock market likely to move in positive zone during next week owing to financial results and improved exchange rate.

    Analysts at Arif Habib Limited said that the market to remain bullish in the upcoming week. With the commencement of result season, we believe Oil and cyclical sectors will be under limelight on the back of healthy earnings expectations.

    Additionally improvement in macroeconomic indicators and appreciation of PKR/USD parity will keep investors’ sentiments positive.

    However, any further increase in domestic COVID-19 infection ratio may dampen investor’s 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 16.3x while offering a dividend yield of around 7.1 percent versus 2.6 percent offered by the region.

    This week trading commenced on a negative note with the index retreating by 208 points on Monday amidst the ongoing third wave of Covid-19 (threat of lockdown as per NCOC’s proposal given rise in infection ratio).

    However, bulls took charge on Tuesday as positive sentiments were fueled by i) Slowdown in infection ratio, ii) Surge in international oil prices by 3.6 percent WoW resulting in buying across heavy-weight E&P scrips, iii) Expectation of outstanding quarterly results, iv) Large Scale Manufacturing inching up by 7.45 percent in 8MFY21, and v) Forex reserves climbing to a 5-year high of $23.2 billion. The KSE-100 index closed at 45,306 points, up by 119 points or 0.26 percent WoW. 

    Contribution to the upside was led by i) Commercial Banks (81 points), ii) Technology and Communication (78 points), iii) Fertilizer (43 points), iv) Automobile Assemblers (25 points), and v) Oil and Gas Exploration Companies (18 points). Scrip-wise major gainers were TRG (60 points), FFC (60 points), BAHL (22 points), EFERT (21 points), and HBL (20 points). Whereas, scrip-wise major losers were ENGRO (47 points), HUBC (27 points), PSO (27 points), SEARL (21 points) and DGKC (20 points).  

    Foreigners offloaded stocks worth of $1.0 million compared to a net sell of $9.5 million last week. Major selling was witnessed in all other Sectors (USD 2.64mn) and Commercial Banks (USD 1.31mn). On the local front, buying was reported by Individuals (USD 9.77mn) followed by Other Organization (USD 3.91mn). That said, average daily volumes and traded value for the outgoing week were down by 10 percent and 18 percent to 368mn shares and USD 100mn, respectively.     

  • Only FBR registered cigarette brands to be sold in Pakistan: Member IR Operation

    Only FBR registered cigarette brands to be sold in Pakistan: Member IR Operation

    ISLAMABAD: Dr. Muhammad Ashfaq Ahmed, Member (Inland Revenue Operations) has said that authorities were in process of drafting new rules where-under cigarette brands registered with FBR could only be sold in Pakistani markets.

    He said during his visit to Regional Tax Office (RTO) Rawalpindi on Friday where the tax office had seized two trucks which were illegally transporting non-tax paid counterfeit cigarettes for supply into local market.

    The Member said that from July 1, 2021, Track & Trace System would be rolled out to cover tobacco manufacturing across the country, and that AJK Government had approached Federal Board of Revenue to extend the scope of Track & Track System to cigarette manufacturing units located inside AJK territory.

    It is expected that over the next few months implementation of Track & Trace System and its extension into AJK, coupled with IREN’s valiant drive would help overcome the menace of counterfeit, illicit and non-tax paid cigarettes in the market.

    Dr. Muhammad Ashfaq Ahmed appreciated Dr. Khalid Mahmood Lodhi, Chief Commissioner, RTO, Rawalpindi and his enforcement drive to curb movement of illicit cigarettes on the roads. He also announced special reward for the members of the raiding squad and encouraged them to continue working with full commitment and integrity.

    According to details the trucks were loaded with 300 cartons of counterfeit cigarettes of Classic Brand, and 300 cartons of counterfeit cigarettes of Kissan Brand containing 6 million cigarette sticks. Market value of the seized cigarettes comes to Rs. 18,900,000/- involving unpaid duties and taxes at Rs. 12,646,500/-. Some of the counterfeit cigarette brands are manufactured in AJK, and then transported across into Pakistani markets without payment of duty and taxes.

  • Highest monthly complaints of banking frauds, forgeries register in March 2021

    Highest monthly complaints of banking frauds, forgeries register in March 2021

    KARACHI: The office of Banking Mohtasib Pakistan has said that complaints against banking frauds, forgeries and other regularities were monthly highest received in March 2021 since the inception of Mohtasib office in 2005.

    Complaints against banking frauds and forgeries registered massive increase of 135 percent during three months (January – March) of 2021 as compared with same period of the last year.

    According to a statement issued on Friday, the office of the Banking Mohtasib Pakistan said that over 135 percent increase had been observed in the number of complaints lodged against alleged frauds, forgeries and other irregularities during the first quarter (January – March) of 2021 as compared to the same period of the last year 2020.

    The office of the Banking Mohtasib Pakistan said that 11,732 complaints were received by the Banking Mohtasib Secretariat during the first quarter of 2021 as compared with 4,994 complaints received in the same period of the last year.

    “These also include 7,595 complaints received on Prime Minister’s Portal relating to banking issues as compared to 1,411 complaints received during the first quarter of previous year.”

    Out of total 11,732 complaints, 5,375 complaints were received in the month of March only, which is the highest figure of complaints recorded in a single month since the inception of Banking Mohtasib Pakistan Office in 2005.

    “The increase in number of complaints indicates that the general public feels that their genuine grievances will be resolved amicably by the Banking Mohtasib office,” according to the statement.

    The Banking Mohtasib Secretariat disposed of 4,672 complaints from January 01 to March 31, 2021 out of which only two percent of complaints were resolved through formal orders while remaining 98 percent of complaints were resolved amicably.

    By disposing of these complaints, the Banking Mohtasib Office has provided monetary relief amounting to Rs132.62 million to the banking customers during the first quarter of 2021.

    Banking Mohtasib Pakistan Muhammad Kamran Shehzad urged the general public not to disclose their personal and financial credential to any person in order to protect themselves from any fraud and forgeries.

  • Ministry imposes ban on import of conventional syringes

    Ministry imposes ban on import of conventional syringes

    ISLAMABAD: The ministry of commerce on Friday imposed ban on import of conventional syringes with immediate as the government had already granted incentives on import of auto disable syringes through latest amendment to relevant laws.

    The ministry of commerce issued SRO 483(I)/2021 dated April 16, 2021 to amend Import Policy Order, 2020.

    Through the notification a ban has been imposed on import of conventional syringes including 2 ml, 2.5 ml, 3 ml and 5 ml.

    Prior to this through Tax Laws (Second Amendment) Ordinance, 2021, the government had allowed sales tax exemption on import of auto disable syringes including with needles and without needles.

    Further, the import of raw materials for the manufacturers of auto disable syringes was also granted sales tax exemption.

  • World Bank, FBR discuss $400 million reform program

    World Bank, FBR discuss $400 million reform program

    ISLAMABAD: The World Bank and Federal Board of Revenue (FBR) on Friday discussed reform program worth $400 million, which is aimed at automation of tax collection and simplification of tax compliance.

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  • Share market gains 75 points amid thin trading volume

    Share market gains 75 points amid thin trading volume

    The share market saw a modest rise on Friday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gaining 75 points. The index closed at 45,306 points, up from the previous day’s close of 45,230 points. This upward movement comes despite a significant reduction in trading volumes during the day.

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  • Rupee ends firmer against dollar

    Rupee ends firmer against dollar

    KARACHI: The Pak Rupee ended firmer against the dollar on Friday amid demand for import and corporate payments, dealers said.

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  • Exporters welcome duty withdrawal on cotton, yarn import

    Exporters welcome duty withdrawal on cotton, yarn import

    KARACHI: Value-added textile exporters have welcomed the decision of the Economic Coordination Committee (ECC) of the cabinet to remove customs duty on import of cotton and yarn.

    Value-Added Textile Exporters convey sincere gratitude and thanks to Prime Minister Imran Khan, Adviser Commerce Razak Dawood and Federal Cabinet on the ECC for according genuine consideration to the demand of Value Added Textile Export Sector to allow duty free import of cotton yarn till June 30, 2021 which exporters were demanding since October 2020 due to unavailability of cotton yarn in the local market.

    The belated decision, however, shall provide only partial relief in the wake of sea trade congestion as the shipments are taking more than two months time to reach Pakistani ports.

    Therefore, textile exporters are of the opinion and appeal the Government to allow duty free import of cotton yarn till time the government achieves its set cotton production target of 10.5 million bales.

    To ease down the cotton yarn availability crisis, it is also imperative that to also place ban on export of cotton yarn from Pakistan or impose 10 percent duty on export of cotton yarn from Pakistan and take necessary steps and measures to import cotton yarn safely from Central Asian Republics through land route by activating all the transit trade agreements signed with regional countries as the sea route is taking prolong duration due to shortage of containers and vessels.

    The textile exporters once again request the Government to take cognizance over hoarding of cotton yarn and cartelization by concerned which are actionable as per law under the Price Control and Prevention of Profiteering & Hoarding Act 1977 and Competition Act of Pakistan 2010.

    According to the said Act of 1977 cotton yarn is included in the schedule of essential commodities like sugar, wheat, edible oil etc. Therefore, the Government must immediately take action as per the law against spinning mills and  yarn traders involved in monopoly, abusive dominance for exorbitant pricing and hoarding and immediately conduct raids by arresting the culprits and seize the hoarded cotton yarn and also conduct Forensic Audit on the pattern of sugar crisis that will prove it many times bigger scam than the sugar scam as it is learned that approx. 2 million bales have been sold without sales tax and invoices in the local market.

    This joint statement was issued by the Value Added Textile Sector Associations: Jawed Bilwani, Chairman, Pakistan Apparel Forum, Waheed Khaliq Ramay of Power Looms Owners Association, Ijaz Khokhar, Chief Coordinator & Ex-Central Chairman, Pakistan Readymade Garment Manufacturers & Exporter Association, Riaz Ahmed, Central Chairman Mian Farrukh  Iqbal, Senior Vice Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Syed Aasim Shah, Former Chairman, All Pakistan Bedsheets & Upholstery Manufacturers Association, Rafiq Godil Chairman, Former Chairman, Pakistan Knitwear & Sweaters Exporters Association, Dr. Shahzad Arshad, Chairman, Pakistan Cotton Fashion Apparels Mfrs. & Exporters Association, Aamir Lari, Vice Chairman, Towel Manufacturers Association of Pakistan, Abdus Samad, Chairman, Pakistan Cloth Merchants’ Association.

    In another statement Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Senior Vice Chairman Pakistan Yarn Merchants Association(PYMA) and Vice Chairman Farhan Ashrafi & convener FPCCI’s Central Standing Committee on Yarn Trading, have lauded ECC decision to withdraw customs duty on cotton yarns, and said that ECC of the Cabinet withdrew customs duty on import of cotton yarns under PCT 5205, 5206 and 5207 till 30th June, 2021.

    However, both officials called for the abolition of additional customs duties & regulatory duty on synthetic yarns for countering the negative effects of the Corona epidemic and to continue the production activities. They also reiterated demand to allow import cotton & cotton yarn from India

    In a statement, Hanif Lakhany & Farhan Ashrafi said the ECC was commendable but the removal of additional customs duty & regulatory duty on synthetic yarns should also be abolished to support the textile industry, which is facing hurdles due to unavailability of raw materials and high prices. So immediate permission should be given for cotton & cotton yarn import from India.

    “Due to low production of cotton in the country and huge increase in the price of cotton yarn in the local market, the cost of industrial production has gone up significantly. On the contrary, it is becoming more and more difficult to run industries, which may affect the delivery of export orders”, they pointed out.

    Hanif Lakhany and Farhan Ashrafi requested the government to allow import of cotton & cotton yarn from India in the best interest of the economy to ensure timely fulfilment of export orders. Which will be warmly welcomed by the business and industrial community across the country.