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Author: Mrs. Anjum Shahnawaz

  • Stocks plunge by 633 amid rising coronavirus cases

    Stocks plunge by 633 amid rising coronavirus cases

    KARACHI: The stock market witnessed a decline of 633 points on Thursday owing to surge in cases of coronavirus in the country.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 40,564 points as against previous day’s closing of 41,197 points, showing a decline of 633 points.

    Analysts at KASB Research said that Pakistan Stocks were remained under pressure throughout the day amid a deteriorating coronavirus situation in the country.

    Investors feared that an intensifying pandemic situation and any new restrictions to curb the spread of coronavirus will have a negative impact on the economy.

    However, optimism about a Covid-19 vaccine pushed the market up at the start of the week. But the excitement has been seen fading away in the last 2 sessions as investors and health experts raise questions about when it may become available for widespread use.

    “We expect that the rising coronavirus cases and risk of fresh restrictions by the government will keep the market jittery in the coming days,” the analysts said.

    Analysts at Topline Securities Limited said that after a sideway opening benchmark KSE100 Index slid making an intraday low of 704 points.

    Initial negativity came from both SUI’s as OGRA rip unaccounted Gas UFG losses for both RLNG consumers for both SUI’s resultantly SNGP and SSGC closed 7.5 percent and 5.79 percent lower respectively.

    Further, Banks, E&Ps and Cements were the major laggards in today’s trading session. Volumes remained thin with total volume clocking in at 325 million shares while total traded value for the day stood at Rs. 11.19 billion. UNITY was today’s volume leader with 29.4 million shares traded.

  • Rupee advances by 16 paisas; dollar retreats to Rs158.33

    Rupee advances by 16 paisas; dollar retreats to Rs158.33

    KARACHI: The Pak Rupee made another gain of Rs16 paisas against dollar on Thursday owing to healthy inflows of workers’ remittances during the current fiscal year.

    The rupee ended Rs158.33 to the dollar from previous day’s closing of Rs158.49 in interbank foreign exchange market.

    Currency dealers said that the inflows of workers’ remittances during the current fiscal year helped the rupee to make gain.

    Further, the importers are cautious in purchasing dollars due to the second phase of coronavirus.

    The inflow of workers’ remittances has sharply increased by 26.5 percent to $9.43 billion during first four months (July – October) of current fiscal year 2020/2021. The central bank received $7.45 billion in the same months of the last fiscal year.

    The SBP said that remittances remained above $2 billion for the fifth consecutive month in October 2020.

    Workers’ remittances amounted to $ 2.3 billion during October 2020, increasing by 14.1 percent compared to October 2019.

    A large part of y/y increase in October 2020 was sourced from Saudi Arabia (30 percent), United States (16 percent) and United Kingdom (14.6 percent).

    Improvements in Pakistan’s FX market structure and its dynamics, efforts under the Pakistan Remittances Initiative (PRI) to formalize the flows contributed to the growth in remittances and limited cross-border travelling, the SBP said.

  • Workers’ remittances increase by 26.5pc in July – October

    Workers’ remittances increase by 26.5pc in July – October

    KARACHI: The inflow of workers’ remittances has sharply increased by 26.5 percent to $9.43 billion during first four months (July – October) of current fiscal year 2020/2021, State Bank of Pakistan (SBP) said on Thursday.

    The central bank received $7.45 billion in the same months of the last fiscal year.

    The SBP said that remittances remained above $2 billion for the fifth consecutive month in October 2020.

    Workers’ remittances amounted to $ 2.3 billion during October 2020, increasing by 14.1 percent compared to October 2019.

    A large part of y/y increase in October 2020 was sourced from Saudi Arabia (30 percent), United States (16 percent) and United Kingdom (14.6 percent).

    Improvements in Pakistan’s FX market structure and its dynamics, efforts under the Pakistan Remittances Initiative (PRI) to formalize the flows contributed to the growth in remittances and limited cross-border travelling, the SBP said.

  • Capital Gain Tax: investors require maintaining accounts, records separately

    Capital Gain Tax: investors require maintaining accounts, records separately

    ISLAMABAD: Federal Board of Revenue (FBR) has said that every investor of stock exchange shall maintain accounts and records separately for each of his brokerage accounts regarding payment of capital gain tax (CGT).

    The FBR officials on Thursday said that the record shall be maintained in a way which sufficiently enable for verification of discharge of his obligations under these rules.

    Every investor shall maintain in particular the following accounts and records, namely:-

    (a) fortnightly ledger statements of the investor’s brokerage account or each brokerage account if there are more than one account whether in the investor’s own name or any benami accounts, generated by his broker;

    (b) fortnightly CDC statements of the investor’s CDC sub account or each CDC sub account corresponding to each brokerage account, if there are more than one brokerage account whether held in the investor’s own name or any benami accounts;

    (c) record of security holdings and their value carried in the investor’s brokerage account on 30th June of each year;

    (d) record of cash carried in the investor’s brokerage account as on 30th June of each year;

    (e) record of funds deposited in the investor’s brokerage account; and

    (f) record of funds withdrawn from the investors brokerage account.

  • FBR connects with NADRA system to identify potential taxpayers

    FBR connects with NADRA system to identify potential taxpayers

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday signed a Memorandum of Understanding (MoU) with National Database Regulatory Authority (NADRA) to verify persons’ identity directly.

    A statement issued by the FBR said that on the directives of the Prime Minister to facilitate taxpayers the MoU had been signed to directly verify CNIC and other relevant documents.

    A FBR spokesman said that the connectivity would facilitate taxpayers as this would automatically feed tax refund data into withholding statements and tax returns.

    Further, it will reduce timing to comply with relevant laws, the spokesman added.

    The FBR hoped that this connectivity would also help the tax authorities to connect with other organizations.

    The connectivity with NADRA will help the FBR to identify such individuals who are out of tax net and concealing their incomes and assets, the spokesman said.

  • KTBA protests over ex-parte tax orders against COVID patients

    KTBA protests over ex-parte tax orders against COVID patients

    KARACHI: Karachi Tax Bar Association (KTBA) on Wednesday protested over ex-parte order passed by tax offices despite taxpayers, who tested positive for coronavirus, applied for adjournment.

    The KTBA in a letter sent to Member Inland Revenue (Operations) of Federal Board of Revenue (FBR), said that the field formations of FBR are not considering requests from taxpayers/authorized representatives (ARs) for adjournment of hearings/compliance and are adamant to proceed ex-parte/enforce personal hearings.

    “The bar has also received complaints from our members that in some of the cases, ex-parte orders have already been passed where taxpayers/ARs were observing self isolation and were quarantined for having contracted Covid-19 and were unable to attend hearing notices.”

    The KTBA believes such actions of passing ex-parte orders are totally against the spirit of facilitation and will be detrimental to the image of FBR. “Additionally, passing of such orders will not achieve any objective but would not also stand test of appeals.”

    The tax bar demanded the FBR of equity and fairness and urged the Member to direct field formations to refrain from passing orders where ARs / taxpayers have requested for adjournments and are isolated due to Covid-19 cases.

    The Member has also been urged to direct the field formations to recall all such orders passed ex-parte in the absence of taxpayer/ARs by taking recourse of Section 122A of Income Tax Ordinance, 2001 and Section 45A of Sales Tax Act, 1990 and oblige.

    As aware, coronavirus (Covid-19) pandemic has hindered the mobility of people severely across the world who now largely prefer to work/liaise online due to health reasons.

    Pakistan is no exception and is currently experiencing a second wave of this malaise. Keeping in view of the rising trend Covid-19 cases, provincial governments have already issued SOPs to minimize/limit social contact and to stop the spread of Covid-19 cases.

    It is worth mentioning have that the Government has very recently directed that 50 percent of the office staff shall work from home as the Covid-19 cases are rising rapidly.

    The tax bar also invited the Member’s attention that presently all the members of KTBA fraternity are heavily occupied in their National responsibility i.e. preparation and filing of tax returns for the Tax Year 2020.

    In this situation issuance of notices (audit, monitoring, amendments etc.) with a very short compliance date is against the principles of natural justice and fair play.

    It is also worth mentioning to add that Chief Commissioners Inland Revenue at Karachi had assured of their fullest cooperation and vowed to take immediate all the remedial action in the event of any mishandling for which we are grateful.

    The KTBA urged the Member to direct the field formations to strictly follow SOPs issued by the government to combat the spread of Covid-19 and also direct the officers to suspend issuance of all notices till December 08, 2020 (last date of filing of returns) and where ex-parte orders have been passed (where intimation / adjournments were available) recall such orders.

  • FBR sets up body to regulate jewelers, real estate agents

    FBR sets up body to regulate jewelers, real estate agents

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday approved a body to regulate transactions by jewelers, real estate agents and accountants under anti-money laundering (AML)/Counter Financing of Terrorism (CFT) laws.

    According to an office order, the FBR approved the operationalization of Directorate General of Designated Non-Financial Business and Professions (DNFBPs), with its headquarter at Islamabad within the existing sanctioned strength and budget grant of FBR with immediate effect.

    The Designated Non-Financial Businesses and Professions (DNFBPs) are real estate agents, jewelers and accountants.

    The FBR issued SRO 924(I)/2020 dated September 30, 2020 related to DNFBPs to comply with conditions under Finance Action Task Force (FAFT).

    Under the latest office order, the FBR sets up field formations at Islamabad, Quetta, Gilgit-Baltistan, Lahore and Karachi.

    The FBR has assigned additional responsibilities to customs and Inland Revenue officials to operate the Directorate General of DNFBPs.

    Dr. Bashirullah Khan (IRS/BS-20) has been assigned additional responsibility of Director General, Directorate General of DNFBPs.

    Other officials who have been given additional charge as Director of Directorate General of DNFBPs are included: Asem Iftekhar, (IRS/BS-20) Karachi, Zafar Iqbal Khan (IRS/BS-20) Islamabad, Irfan Javed (PCS/BS-20), Quetta, Rashid Habib Khan (PCS/BS-20) Gilgit Baltistan, Ahmad Kamal (IRS/BS-20) Lahore and Muhammad Tahir (PCS/BS-19) Director (HQ) DNFBPs Islamabad.

    RELATED STORY

    FBR issues SRO to regulate accountants, jewelers, real estate agents under AML/CFT

  • FBR decides punitive action against non-filer companies, individuals

    FBR decides punitive action against non-filer companies, individuals

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to take punitive measures against corporate entities for not filing income tax returns.

    (more…)
  • Assets of baking system increase by 7.8pc amid COVID challenges: SBP

    Assets of baking system increase by 7.8pc amid COVID challenges: SBP

    KARACHI: The assets of banking system increased by 7.8 percent during first half (January – June) 2020 despite challenging economic conditions prevailing during the period due to COVID-19 outbreak, State Bank of Pakistan (SBP) said on Wednesday.

    The SBP issued Mid-Year Performance Review (MPR) of the Banking Sector for the year 2020.

    The review comprehensively covers the performance and soundness of the banking sector for the period January to June 2020 (H1CY20).

    The expansion in assets was backed by banks’ investments, which increased by 22.8 percent (or Rs2.0 trillion). The surge in deposits provided the necessary funding support to finance the robust rise in investments.

    Advances, on the contrary, observed mild downtick owing to the economic slackness caused by the disruption inthe business activities after the outbreak. Sans SBP supportive measures, though, the contraction in advances could have been much higher.

    The review also highlighted that the policy measures rolled out by SBP facilitated the banking sector in conserving the capital, enhancing the lending capacity and increasing the loss absorption ability.

    As a result, despite some increase in credit risk, banking sector demonstrated improved profitability and enhanced resilience.

    The Non-performing loans (NPLs) ratio increased from 8.6 percent as of end December 2019 to 9.7 percent as of end June 2020.

    However, net NPLs to loans ratio, which is a better measure of credit risk, increased only marginally from 1.7 percent to 1.9 percent.

    The earnings marked visible improvement as profitability jumped by 52 percent on YoY basis. This improvement resulted from higher interest income, deceleration in interest expenses and rise in non-interest income.

    With better profitability, the soundness of the banking sector further strengthened as Capital Adequacy Ratio (CAR) increased to 18.7 percent in June-20 from 17.0 percent in December 2019.

    The review also includes the results of the 6th wave of SBP’s Systemic Risk Survey (SRS) conducted in July-August, 2020, which represents the views of the market participants.

    The survey results indicate that—at present and for the next six months—the respondents consider global risks and domestic macroeconomic risks to be important.

    Notably, the policy measures taken by SBP to mitigate the implications of COVID-19 have been very well received by the stakeholders.

  • Stock market gains 44 points amid rang bound trading

    Stock market gains 44 points amid rang bound trading

    KARACHI: The stock market gained 44 points on Wednesday amid range bound trading during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,197 points as against 41,153 points showing an increase of 44 points.

    Analysts at Arif Habib Limited said that the market traded range bound today between +177 points and -253 points, closing the session +44 points.

    International crude oil prices (+3.5 percent) helped E&P sector to post hefty price gains, however, market’s fear of unknown that emanates from developing political wrangling between the Opposition and the Incumbent Govt. kept the increase in Index in check.

    Cement Sector stocks saw selling pressure on the expectation of decline in monthly dispatches based on the first week of November. Fertilizer, O&GMCs and Banking sector stocks remained subdued due to somber investor sentiment.

    Overall volumes also dropped over the day due to investor sentiment. Among scrips, BIPL topped the volumes with 31.5 million shares, followed by TRG (25 million) and KEL (16.3 million).

    Volumes declined from 355.9 million shares to 244.3 million shares (-31 percent DoD). Average traded value also declined by 43 percent to reach US$ 54.6 million as against US$ 95.5 million.

    Sectors contributing to the performance include E&P (+130 points), Banks (+35 points), Technology (+22 points), Cement (-62 points) and Power (-11 points).

    Stocks that contributed significantly to the volumes include BIPL, TRG, KEL, ASC and POWER, which formed 42 percent of total volumes.

    Stocks that contributed positively to the index include OGDC (+55 points), PPL (+37 points), HBL (+36 points), POL (+25 points) and TRG (+16 points). Stocks that contributed negatively include LUCK (-25 points), ENGRO (-17 points), MLCF (-9 points), CHCC (-8 points) and KEL (-8 points).