Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Pakistan foreign exchange reserves increase to $23.22 billion

    Pakistan foreign exchange reserves increase to $23.22 billion

    KARACHI: The foreign exchange reserves of the country have increased by $2.54 billion to $23.22 billion by week ended April 09, 2021, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.679 billion by week ended April 02, 2021.

    The official foreign exchange reserves of the State Bank increased by $2.579 billion to $16.106 billion by week ended April 09, 2021 as compared with $13.527 billion a week ago.

    The increase in reserves has been attributed to receipt of proceeds of $2.5 billion against issuance of Pakistan Euro Bonds.

    The foreign exchange reserves held by commercial banks eased by $38 million to $7.114 billion by week ended April 09, 2021 as compared with $7.152 billion a week ago.

  • Stock market ends down by 81 points in range bound trading

    Stock market ends down by 81 points in range bound trading

    KARACHI: The stock market fell by 81 points on Thursday in a range bound trading activity during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,230 points as compared with previous day’s close of 45,311 points, showing a decline of 81 points.

    Analysts at Topline Securities said that Pakistan equities closed slight negative with benchmark KSE-100 Index settling at 45,230 level.

    Range bound activity was witnessed throughout the day where KSE-100 Index moved between intraday high and low of 136 and 137 points respectively. Investor interest was mainly witnessed in blue chips stocks.

    OGDC, FFC and ENGRO were the major gainer in today’s trading session. Investors opted to tread with caution amid the ongoing rise in COVID19 cases and upcoming result season.

    Activity in the wider market was relatively dull as Rs.12.58 billion worth of shares exchanged hands, down 24 percent on DoD basis. The volume leader for today was TELE with 73.57mn shares exchanging hands.

  • SBP directs banks to open EKBNS Fund Account

    SBP directs banks to open EKBNS Fund Account

    KARACHI: State Bank of Pakistan (SBP) has issued instructions for opening accounts for raising funds through donations / contributions for Prime Minister’s Ehsaas Koye Bhooka Na Soye initiative.

    The SBP said that the Finance Division, Government of Pakistan, had notified establishment of the subject Fund under the Prime Minister’s Ehsaas Koye Bhooka Na Soye initiative, to eliminate hunger in the country by providing meals to the people in need, especially those at risk of, or experiencing hunger.

    In this regard, the State Bank of Pakistan (SBP) is pleased to announce opening of “Ehsaas: Koye Bhooka Na Soye (EKBNS) Fund Account-2021”, for raising funds through donations/contributions from general public to support the above initiative. All the commercial banks and field office of SBP Banking Services Corporation shall open the account of the Fund and shall receive donations/contributions in cash, through cheques, and through Alternate Delivery Channels (ADCs), at all their branches across the country.

    Donors shall be provided multiple options for making donation/contribution to the Fund as described below:-

    a. Counters of the banks

    All commercial banks in Pakistan and field offices of SBP Banking Services Corporation shall collect donations at their counters across their branch network in Pakistan. The donors may deposit their donations at any branch of the above banks. The daily donation/contribution collected by the commercial shall be settled on aggregate basis with the SBP, through Pakistan Real-time Settlement System (PRISM) via MT-103.

    b. Crossed Cheques Drop Box Facility

    Due to COVID-19 pandemic situation, banks shall also make available at their branches, the drop box facility enabling the donors to drop crossed cheques in the name of the fund. The banks shall, accordingly debit the customer’s account and transfer the proceeds to the Fund’s account at SBP through PRISM. The banks are advised to ensure that the drop box facility is fully operational and prominent notices or banners are placed in all such branches that the donors can drop the crossed cheques in the name of the Fund.

    c. Alternate Delivery Channels ( ADCs)

    The banks shall allow their respective customers to make donations/contributions through internet banking, Automatic Teller Machines (ATM) and other Alternate Delivery Channels (ADC). For the purpose, commercial banks shall prominently display the IBAN of the Fund at their websites and ATMs screens and send the same to their clients through SMS alerts. The amount collected through ADCs shall be settled with SBP through PRISM on aggregate basis, once in a day.

    The banks shall keep the detail files of settlement of donations collected through mechanism specified in a, b and c above (i.e. name of donor and amount of his/her donation/contribution) in their record for subsequent verification and reference.

  • Rupee ends flat against dollar

    Rupee ends flat against dollar

    KARACHI: The Pak Rupee ended flat against the dollar on Thursday owing to lower demand for import and corporate payments.

    The rupee closed at Rs152.83 to the dollar from the same closing of April 13, 2021 in the interbank foreign exchange market.

    The banks were remained closed on April 14, 2021 for the Zakat deduction on first day of Ramazan ul Mubarak.

     The currency analysts said that the rupee likely to make gains in coming days due to better foreign exchange reserves, improved export receipts and workers’ remittances and external situation.

  • FBR reinstates customs officials of Peshawar collectorate

    FBR reinstates customs officials of Peshawar collectorate

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday reinstated six customs officials into services, who were suspended for violating government service rules.

    The following BS-16 officers of Model Customs Collectorate (Enforcement and Compliance), Peshawar, who were placed under suspension dated August 11, 2020 have been reinstated into services with immediate effect and until further orders:

    1. Mazhar Elahi, Superintendent, MCC, (E&C), Peshawar

    2. Syed Nazim Ali Shah, Inspector, MCC, (E&C), Peshawar

    3. Afaaq Hussain, Inspector, MCC, (E&C), Peshawar

    4. Shah Fahad, Inspector, MCC, (E&C), Peshawar

    5. Zafar Ali, Inspector, MCC, (E&C), Peshawar

    6. Farhad Khan, Inspector MCC, (E&C), Peshawar

    The FBR said that suspension period from 11.08.2020 to-date is treated as spent on duty.

  • Parliament to approve amendments to SBP Act by September

    Parliament to approve amendments to SBP Act by September

    KARACHI: The National Assembly likely to adopt amendments to State Bank of Pakistan (SBP) Act by September 2021.

    This was assured by the Pakistani authorities to International Monetary Fund (IMF).

    The ministry of finance submitted the amendments to parliament in March 2021 and the authorities expect adoption by parliament by end-September 2021.

    The authorities assured the IMF about making good progress toward strengthening the SBP’s autonomy, governance, and mandate.

    The authorities said: “We have worked closely with IMF staff in the preparation of amendments to the SBP Act to address existing gaps.”

    The amendments aim to:

    (i) establish domestic price stability as the primary objective, with financial stability and growth as secondary objectives;

    (ii) clearly define the SBP’s functions to help achieve these objectives;

    (iii) strengthen the SBP’s financial autonomy, including through statutory mechanisms for sufficient recapitalization and profit retention; (iv) prohibit the extension of direct credits or guarantees to the general government;

    (v) establish the statutory underpinnings for audits;

    (vi) secure stronger protection of the personal autonomy of senior officials;

    (vii) further strengthen collegial decision making at the executive management level;

    (viii) provide stronger oversight by the Board; and

    (ix) improve SBP’s accountability regarding the conduct of its monetary policy and the achievement of its objectives.

  • FBR collects Rs1.8bn advance tax on capital gains from sale of securities

    FBR collects Rs1.8bn advance tax on capital gains from sale of securities

    KARACHI: Federal Board of Revenue (FBR) has collected Rs1.8 billion as advance tax on capital gains from sale of securities during first nine months of the current fiscal year.

    According to statistics made available on Thursday, the Large Taxpayers Office (LTO) Karachi collected Rs1.8 billion during July – March 2020/2021 as compared with Rs1.63 billion in the corresponding period of the last fiscal year, showing an increase of 10 percent.

    The FBR collects adjustable advance tax on capital gain from sale of securities under Section 147(5B) of the Income Tax Ordinance, 2001.

    The rate of advance tax is two percent of the capital gains derived during the quarter, where holding period of a security is less than six months.

    The rate of advance tax is 1.5 percent of the capital gains derived during the quarter, where holding period of a security is more than six months but less than twelve months.

    The collection of advance tax on capital gains from sale of securities fell sharply by 96 percent to Rs11.24 million when compared with Rs269 million in the same month of the last year.

  • NTDC sets up control center to monitor power supply during Sehr, Iftar and Traweeh

    NTDC sets up control center to monitor power supply during Sehr, Iftar and Traweeh

    LAHORE:  National Transmission and Dispatch Company Limited (NTDC) has setup Central Control Center at 220 kV grid station, New Kotlakhpat, Lahore to monitor and keep a close liaison with NPCC and all DISCOs during Sehr, Iftar and Traweeh, a statement said on Wednesday.

    The monitoring cell has been established in compliance of directions of Ministry of energy (Power Division). The Central Control Center will monitor stability of the Power System.

    Engr. Dr. Khawaja Riffat Hassan visited the control center and checked the arrangements. He said that the Central Control Center will work round the clock under the supervision of GM (Asset Management) North and dedicated team will look after continuous and uninterrupted power supply to all distribution companies throughout the country.

    He said that in order to meet any emergency Regional Control Centers of Asset Management at Islamabad, Multan, Hyderabad & Quetta have also been established.

    MD NTDC further said that in case of a fault at any Grid Station or Transmission Line of NTDC across Pakistan, the control center will monitor the team mobilisation and material directly and latest information will be shared with the Ministry of Energy (Power Division) and respective DISCOs.

  • Harmonization of sales tax to complete by June

    Harmonization of sales tax to complete by June

    ISLAMABAD: Harmonization of sales tax between federal and provincial tax authorities may be completed by end-June 2021, officials in the Federal Board of Revenue (FBR) said on Wednesday.

    The FBR said that the authorities were in the process of harmonizing the service sales tax across provincial jurisdictions, with support from the World Bank, which will be completed by end-June 2021.

    The officials said that the government had shown commitment to the International Monetary Fund (IMF) of taking several measures including broadening of sales tax base.

    The government has committed to reforms the General Sales Tax (GST) system, underpinned by a unified tax base and within the confines of the current constitution.

    The authorities will: (i) eliminate all zero-rated goods (Fifth Schedule), except on export and capital machinery goods and move them to the standard sales tax rate; (ii) remove reduced rates under the Eight Schedule and bring all those goods to the standard sales tax rate; (iii) eliminate exemptions (Sixth Schedule) excluding a small subset of goods (i.e., basic food, medicines, live animals for human consumption, education and health-related goods) and bring all others to the standard rate; and (iv) remove the Ninth Schedule to replace a specific tax rate for cell phones with the standard rate.

    These reforms are expected to yield an estimated 0.7 percent of GDP on an annualized basis.

    Moreover, the authorities are also in the process of harmonizing the service sales tax across provincial jurisdictions, with support from the World Bank, expected to be completed by end-June 2021.

  • ECC approves customs duty withdrawal on cotton, yarn import

    ECC approves customs duty withdrawal on cotton, yarn import

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the withdrawal of customs duty to ensure smooth supply of cotton and cotton yarns to the value-added industry, while bridging the gap between domestic production and overall demand for the inputs.

    Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, chaired the ECC meeting.

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Maritime Affairs Ali Haider Zaidi, Federal Minister for Energy Omar Ayub Khan, Federal Minister for National Food Security and Research Syed Fakhar Imam, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power and Petroleum Tabish Gauhar, Federal Secretaries, senior representatives of Provincial governments, Chairman BOI and other senior officers participated in the meeting. Governor State Bank of Pakistan joined through a video link.

    Power Division presented a summary regarding waiver of minimum 66% Take-or-Pay commitment in Power Purchase Agreement(s) (PPA) & Gas Supply Agreement(s) (GSA) of three RLNG based Public Sector Power Plants namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant and Haveli Bahadur Shah Power Plant.

    These amendments would envisage submission of a Monthly Production Plan (MPP) as a binding on the Power Purchaser and the Power Seller wherein the Power Purchaser shall be entitled to submit demand requirement as needed, at least seventy five days before the start of each such month, which will be finalized by the System Operator and Operating Committee under the PPA.

    The concept of a Monthly Delivery Plan (MDP) for deliveries of Gas under the GSA, has been paired with the Monthly Schedule as provided under PPA. The MPP will come into effect from the year 2022.

    After seeking input from relevant stakeholders, the Committee approved the summary and appreciated the concept of Monthly Production Plan (MPP) as a cost-effective solution, enabling the Power and Gas purchasers to make requisite purchases in line with actual requirements instead of following a fixed arrangement.

    Power Division also presented another summary proposing amendment to the Facilitation Agreement and Amendment to the GoP Guarantee Agreement with KAPCO. It included the proposal that the project may be withdrawn from the Privatization Commission and entrusted to Private Power and Infrastructure Board (PPIB).

    After due deliberation, the Committee approved the summary, in principle, subject to formal vetting by the Law Division. Secretary, M/o Commerce presented a summary before the ECC for withdrawal of Customs Duty on import of Cotton Yarns under PCT 5205, 5206 and 5207 till 30th June, 2021.

    The ECC also approved a Technical Supplementary Grant for Finance division amounting to Rs.11.7 billion as the share of the Federal Government for the establishment of 4 mother and child hospitals in Punjab.