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Author: Mrs. Anjum Shahnawaz

  • World Bank to finance $1.15 billion for two power projects

    World Bank to finance $1.15 billion for two power projects

    ISLAMABAD: The World Bank will provide a concessional financing to support Pakistan’s two power projects.

    Prime Minister Imran Khan today witnessed the signing ceremony of two financing agreements worth $ 1.15 billion with the World Bank.

    This is concessional financing being provided by the World Bank for the two projects to support hydropower and renewable energy development in Khyber Pakhtunkhwa, evacuation and transmission of power from DASU Hydropower Project.

    Federal Minister for Economic Affairs Makhdum Khusro Bakhtyar, Federal Minister for Power Omar Ayub Khan, Chief Minister Khyber Pakhtunkhwa Mahmood Khan, Advisor to CM Khyber Pakhtunkhwa Himayat Ullah Khan were also present.

    The projects’ details are: i. Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) Project – $450.0 Million.

    The project’s development objective is to increase renewable energy generation and strengthen the capacity of associated institutions in Khyber Pakhtunkhwa.

    The Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) is a transformational program that would help in building capacity and institutions for harvesting the vast renewable energy potential of the Khyber Pakhtunkhwa Province.

    The project will support the

    (i) construction of 88MW Gabral-Kalam Hydropower Project; and

    (ii) construction of 157MW Madyan Hydropower Project.

    It would provide planning and management capability to help transform Pakhtunkhwa Energy Development Organization (PEDO) into a world class entity for development of renewable energy resources. ii. Evacuation of Power from DASU Hydropower (Phase-I) Project – US$700.0 million:

    The objective of the project is evacuation and transmission of power from 2160 MW Dasu Hydropower (Phase-I) Project to respective load centers of DISCOs by construction of 765 kV double circuit transmission line from DASU HPP to Islamabad via Mansehra.

    It will also facilitate in evacuation of power from new upcoming projects in that area. Noor Ahmed, Secretary, Economic Affairs Division signed the two loan agreements on behalf of Government of Pakistan while the representatives of Government of Khyber Pakhtunkhwa, WAPDA and National Transmission & Dispatch Company (NTDC) signed their respective project agreements.

    Najy Benhassine, Country Director, World Bank signed the agreements on behalf of the World Bank.

    Prime Minister Imran Khan stated that Pakistan values its partnership with the World Bank and the Government will continue with the objective of socio-economic uplift of the people of Pakistan.

    The Country Director of WB reiterated his commitment to support Pakistan and appreciated the government’s resolve, efforts and measures in the fight against COVID-19 and continuing efforts for structural reforms.

    Makhdum Khusro Bakhtyar, Minister for Economic Affairs, while thanking the World Bank for its continued support, said that Government of Pakistan is committed to continue the structural reforms process in the country.

  • FBR signs agreement CFA Institute for regulator scholarships

    FBR signs agreement CFA Institute for regulator scholarships

    ISLAMABAD: Federal Board of Revenue (FBR) has signed an agreement with Chartered Financial Analyst (CFA) Institute for initially 10 ‘Regulator Scholarships’ for FBR’s officers and officials, said a notification issued on Thursday.

    The CFA Institute, an America-based Organization, is a global association of investment professionals. The organization offers Certifications for Chartered Financial Analyst (CFA), Investment Performance Measurement (CIPM) and Investment Foundations Certificate. Currently, CFA Institute offices are located in New York City, London, Hong Kong, Mumbai, Toronto, and Charlottesville, Virginia, USA.

    The CFA Program is a professional credential offered internationally by the CFA Institute to investment and financial professionals and is recognized as a ‘Gold Standard’ qualification in investment management. The program covers a broad range of topics relating to investment management, financial analysis, quantitative analysis, equities, fixed income and derivatives, and provides generalist knowledge of other areas of finance combined with real world skills and case studies. A candidate who successfully completes the program and meets other professional requirement is awarded the “CFA Charter” and becomes a CFA.

    Under the Scholarship, Program Enrollment Fee is waived off and exams registration fee is reduced to USD 350 compared to standard registration fee of USD 1,000.

    FBR’s workforce needs to equip itself with the modern skills and techniques involved in investment management, financial analysis and all other relevant areas to better understand the intricacies involved in financial management and income generated through various investment vehicles. Therefore, FBR’s officers/officials are encouraged to benefit from the scholarship programme to leverage the ongoing professional learning and industry network that CFA Institute and CFA Society Pakistan can provide.

    Interested candidates must apply and be awarded the scholarship before registering for an exam, so that scholarship discount will be applied at the time of payment. The process is:

    i) Candidates set up a CFA account and apply through the online system for a regulator scholarship.

    ii) Regulator approvers log in to the system and award, or decline the scholarship application.

    iii) If awarded, the candidate is notified by the CFA Institute. The scholarship is then applied to their CFA account, so that when they register for an exam the discount is applied at time of payment. All further activity is directly between the candidate and the CFA Institute.

    iv) If declined, the candidate is notified by the CFA Institute and may choose to apply for the exam as normal without the discount.

    The selection of eligible candidates would be done by International Taxes, FBR. After having gone through the selection exercise, the names of the selected candidates will be forwarded to the CFA Institute for the grant of scholarship.

  • Foreign exchange reserves decline to $19.015 billion

    Foreign exchange reserves decline to $19.015 billion

    KARACHI: The liquid foreign exchange reserves of the country have declined by $336 million to $19.015 billion by week ended October 09, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $19.351 billion by week ended October 02, 2020.

    The official reserves of SBP fell by $357 million to $11.798 billion by week ended October 09, 2020 as against $7.196 billion a week ago.

    The SBP attributed the decline in foreign exchange reserves to external debt repayment of $507 million during the week.

  • Share market ends down by 76 points on political uncertainty

    Share market ends down by 76 points on political uncertainty

    KARACHI: The share market fell by 76 points on Thursday owing to rising political uncertainty in the country.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,068 points from previous day’s closing of 40,144 points, showing a decline of 76 points.

    Analysts at Topline Securities said that the market opened on a positive note making an intraday high of 389 points owing to announcement of G20 nations regarding extension of the debt suspension by an additional six months for six countries which includes Pakistan as well.

    However, the positivity did not sustain at the bourse as investors were concerned over decline in Global markets, International oil prices and political uncertainty.

    On the result front, EPCL announced its 3Q2020 EPS of Rs2.07 (+48 percent YoY) – Earnings were higher than industry expectations, additionally, material information was also released stating that Engro Peroxide (private) limited a wholly owned subsidiary will be resuming work in the last quarter of 2020 leading the scrip to close at its upper circuit.

    Traded volume and value for the day increased by 39 percent and 29 percent on DoD basis to 324 million shares and Rs.11.01 billion, respectively.

  • Rupee makes gain of 62 paisas on ease in dollar demand

    Rupee makes gain of 62 paisas on ease in dollar demand

    KARACHI: The Pak Rupee strengthened by 62 paisas against dollar on Thursday owing to significant inflows of workers’ remittances and export receipts.

    The rupee ended Rs162.86 to the dollar from previous day’s closing of Rs163.48 in interbank foreign exchange market.

    Currency experts said that latest exchange rates showed the dollar weakened by five month low.

    They said that the since August 2020 the dollar weakened by Rs5.57. The greenback reached to the highest point of Rs168.43 on August 27, 2020.

    They said that the fall in dollar value to ease in pressure on debt repayments of Rs575 billion.

    Workers’ remittances remained above $2 billion for the fourth consecutive month in September.

    They increased to $2.3 billion, 31.2 percent higher than the same month last year and 9 percent higher than in August, the State Bank of Pakistan (SBP) recently said.

  • TAX YEAR 2021: Rates of income tax for companies

    TAX YEAR 2021: Rates of income tax for companies

    ISLAMABAD: Federal Board of Revenue (FBR) has issued rates of income tax for companies to be applicable during tax year 2021.

    The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) incorporating amendments brought through Finance Act, 2020.

    The FBR said that the rate of tax shall be 29 percent on the taxable income of a company for tax year 2021.

    As per the Income Tax Ordinance, 2001, the tax rate on corporate entities has been defined as:

    The rate of tax imposed on the taxable income of a company for the tax year 2007 and onward shall be 35 percent:

    Provided that the rate of tax imposed on the taxable income of a company other than a banking company, shall be 34 percent for the tax year 2014:

    Provided further that the rate of tax imposed on the taxable income of a company, other than a banking company, shall be 33 percent for the tax year 2015:

    Provided further that the rate of tax imposed on taxable income of a company, other than banking company shall be 32 percent for the tax year 2016, 31 percent for tax year 2017, 30 percent for tax year 2018 and 29 percent for tax year 2019 and onwards.

    Where the taxpayer is a small company as defined in section 2 of Income Tax Ordinance, 2001, tax shall be payable at the rate of 25 percent:

    Provided that for tax year 2019 and onwards tax rates shall be as set out in the following Table, namely:—

    Tax YearRate of Tax
    201924%
    202023%
    202122%
    202221%
    2023 and onwards20%
  • Tax Year 2021: income tax rates for business individuals, AOPs

    Tax Year 2021: income tax rates for business individuals, AOPs

    ISLAMABAD: Federal Board of Revenue (FBR) has issued tax rates to be applicable on business individuals and Association of Persons (AOPs) during tax year 2021.

    The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) incorporating amendment brought through Finance Act, 2020.

    The FBR said that the rates of tax imposed on income of every individual and association of persons except a salaried individual shall be as set out in the following Table, namely:—

    S. No.Taxable incomeRate of tax
    (1)(2)(3)
    1.Where taxable income does not exceed Rs. 400,0000%
    2.Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,0005% of the amount exceeding Rs. 400,000
    3.Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000Rs. 10,000 plus 10% of the amount exceeding Rs. 600,000
    4.Where taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000Rs. 70,000 plus 15% of the amount exceeding Rs. 1,200,000
    5.Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000Rs. 250,000 plus 20% of the amount exceeding Rs. 2,400,000
    6.Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000Rs. 370,000 plus 25% of the amount exceeding Rs. 3,000,000
    7.Where taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000Rs. 620,000 plus 30% of the amount exceeding Rs. 4,000,000
    8.Where taxable income exceeds Rs. 6,000,000Rs. 1,220,000 plus 35% of the amount exceeding Rs. 6,000,000
  • Bank deposits reach new peak of Rs16.88 trillion by September

    Bank deposits reach new peak of Rs16.88 trillion by September

    KARACHI: The deposits of banking system surged to a new record high of Rs16.886 trillion by end of September 2020, according to data released by State Bank of Pakistan (SBP) on Wednesday.

    The bank deposits reached to new record-level from previous all-time high of Rs16.327 trillion by end of August 2020.

    The deposits of the banking system recorded growth of 20.39 percent in September 2020 when compared with the stock of Rs14.026 trillion in the same month of the last year.

    The significant growth in banking deposits has been attributed to higher foreign inflows and safe venue to keep money amid coronavirus pandemic.

    They said that growth in deposits has been fueled by higher remittances (+15 percent YoY in USD and 27 percent YoY in PKR terms during eight months of 2020), while lack of business activity due to COVID-19 (cash-based) may have also resulted in increase in bank deposits.

    Investments of banks have increased to Rs11.09 trillion by end of September 2020, which is 19.65 percent higher when compared with the investment of Rs9.269 trillion in the same month of the last year.

    Investment to Deposit Ratio (IDR) is around 66 percent in September 2020. The higher IDR is largely due to high interest rates at the start of the year and low appetite for risk (advances) due to COVID-19 lately.

    On the other hand, advances have grown by just 1.5 percent YoY to Rs8.094 trillion by end September 2020 as compared with Rs7.975 trillion by end of same month of the last year.

    This is despite the aggressive cuts in interest rates by the Pakistan Central Bank since March 2020 as the impact of COVID-19 pandemic has reduced the overall risk appetite of banks.

  • FBR abolishes regulatory duty, ACD on various imported goods

    FBR abolishes regulatory duty, ACD on various imported goods

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday abolished regulatory duty and additional customs duty on various raw materials used by textile industry.

    The FBR issued SRO 1043(I)/2020 dated October 13, 2020 abolished regulatory duty of 8 percent on various chemicals used as raw material for textile industry.

    Besides, regulatory duty imposed at two percent on import of artificial yarn and staple fiber has also been abolished. Besides, the regulatory duty has been reduced from five percent to 2.5 percent on import of woven fabric of synthetic staple fiber.

    The FBR issued another SRO 1042(I)/2020 dated October 13, 2020 to withdraw additional customs duty (ACD) on over 100 tariff lines.

  • LTO Karachi takes measures to contain resurgence of coronavirus

    LTO Karachi takes measures to contain resurgence of coronavirus

    KARACHI: Large Taxpayers Office (LTO) Karachi has taken measures to contain the resurgence of coronavirus. In this regard, an advisory has been issued for the staff of LTO Karachi with directives of strict implementation.

    Badaruddin Ahmed Qureshi, Chief Commissioner, LTO Karachi directed all divisions including audit, enforcement and legal of the tax office in order to contain the spread and resurgence of coronavirus.

    The following advisory has been issued:

    01. No one shall enter into the premises of offices without wearing a mask.

    02. Social distancing of at least six feet must be maintained by all officers and staff.

    03. Temperature of every person will be monitored at the entrance with thermal guns.

    04. A person having flue, cough, shortness of breath and body pain shall not be allowed to enter in the premises of office.

    05. The office is declared as no smoking zone.

    06. Unauthorized persons shall not be allowed to visit offices unnecessarily and without any reason.

    07. All symptomatic and suspected employees must be identified and reported to the Chief Commissioner Inland Revenue Office.

    08. Any officer/official found violating any instruction contained in this SOPs shall be liable for action in accordance with applicable law and rules accordingly.

    09. All officers/officials/visitors should wash hands with soap and water or hand sanitizer properly and regularly. Hand sanitizer should be available at all time on the wall-mounted spray machines and in the washrooms/lavatories.

    10. The administrative officer shall ensure the provisions of thermal guns at the entrance of office for screening of body temperature of officer/officials/visitors.

    11. Administrative officer shall ensure effective disinfection of all office at regular intervals.

    12. Lifts/elevators installed in the field offices shall be used as less possible and lift operators shall be provided with antiseptic sprays and swabs to clean the buttons/knobs regularly.

    13. In order to avoid physical contact with door handle/knobs, it is advised that all office door be kept open and room window be kept open also to ensure ventilation.

    14. The CCIR Office will ensure the provision of sufficient number of face masks to all commissioner for onward distribution among the officer/officials.