Author: Mrs. Anjum Shahnawaz

  • Pakistan shuts down borders, educational institutions to prevent coronavirus spread

    Pakistan shuts down borders, educational institutions to prevent coronavirus spread

    ISLAMABAD: The National Security Committee (NSC) on Friday took major decisions including closing borders and educational institutions to curb the spread of coronavirus.

    The NSC also decided to evaluate the situation on day to day basis.

    It was the first time that an NSC meeting was called on an emerging public health threat; with Federal Ministers on Foreign Affairs, Religious Affairs, Aviation, and Education, Advisor for Finance, Special Assistants to Prime Minister on Health, National Security, and Information, all Chief Ministers along with Chief Secretaries, and Provincial Health Ministers attending the meeting. Chairman Joint Chiefs of Staff, COAS, CAS, CNS, Surgeon General Pakistan Army & other senior military officials also attended the meeting.

    The wide-ranging decisions taken by the NSC included closure of educational institutions for three weeks, ban on public gatherings, and complete shutdown of the Western border with Iran and Afghanistan for two weeks along with all airports except Islamabad, Lahore and Karachi for international travel.

    However, seaports would remain operational with increased screening arrangements and surveillance so that the trade activities could not be affected.

    The NSC, chaired by Prime Minister Imran Khan, had a thorough discussion on evolving situation in the wake of new coronavirus cases in the country, taking the tally of confirmed ones to 28 and resolved to ensure public safety and well-being, Special Assistant to the Prime Minister on Health Dr Zafar Mirza told the media.

    Flanked by Special Advisors to Prime Minister Dr Firdous Ashiq Awan and Moaeed Yousaf, Dr Zafar Mirza quoted the prime minister as saying, “The safety of people is our top most priority.”

    He said the National Coordination Committee would comprise federal ministers concerned, chief ministers, NDMA Chairman, Surgeon General of Pakistan, representatives of Inter-Services Intelligence, Inter Services Public Relations and Directorate of Military Operations, while he would be its convener.

    The committee would be authorized to include any other stakeholder, if needed, the SAPM said, adding it would hold its maiden meeting on Saturday at 4: 30 pm.

    Dr Zafar said the evolving situation demanded to form such a high-level body so that the pandemic could be curbed through coordinated efforts after taking unanimous decisions at the national level.

    The National Disaster Management Authority (NDMA) would be the lead operational agency with the required funds at its disposal, he added.

    Earlier, the meeting took stock of the measures put in place in the wake of the COVID-19 pandemic.

    SAPM on Health apprised the forum about the latest situation, preventive measures and detailed roadmap for dealing with the pandemic.

    He also spotlighted response and mitigation efforts undertaken to prevent the spread of COVID-19 in Pakistan that have ensured the country’s success in keeping the number of Coronavirus cases to a minimum; despite neighboring China and Iran, two of the most affected countries.

    Chairing the meeting, the Prime Minister called upon the entire nation to unite in playing a positive role in preventing the spread of COVID-19. “There is no need to panic. We are addressing this challenge as one nation by protecting ourselves through precautionary measures,” he said.

    The Prime Minister directed all concerned officials to coordinate a comprehensive and unified national response to safeguard the health of the people of Pakistan. All necessary steps have been and will be taken to protect the people from Coronavirus, he said.

    The Prime Minister urged people to follow basic hygiene and precautionary measures and place their trust in the Government as the health, safety and well-being of the people is his foremost priority.

    In light of the discussion and deliberations of the NSC, the following decisions were taken, to be implemented with immediate effect and to be reviewed at the end of the identified time period for each item:

    1. A National Coordination Committee for COVID-19, to be convened by SAPM on Health, has been established to monitor the situation and make necessary decisions on a daily basis. The Committee will have representation of all provinces and relevant civilian and military stakeholders.

    2. NDMA will be the lead operational agency and will coordinate its efforts with the provincial and district authorities for necessary implementation of the preventive and curative actions.

    3. All educational/technical institutions, public and private, at all levels will remain closed for three weeks across the country.

    4. The entire Western border will be closed for two weeks for all human and commercial traffic. Sost border will continue to remain closed for two further weeks.

    5. The Kartarpur Corridor will be closed for Pakistanis. Indian pilgrims will be allowed to continue visiting.

    6. Outgoing and incoming international flights will only be allowed at the Karachi, Lahore, and Islamabad airports. Screening and administrative measures at these airports will be reinforced immediately.

    7. Reinforcement of screening and administrative measures at all sea ports will also be ensured.

    8. All public gatherings will be banned with immediate effect. Wedding halls and cinemas will be closed for two weeks. Large conferences will also be barred for the same period. Remaining PSL matches may be conducted without any crowd.

    9. Minister for Religious Affairs and Inter-Faith Harmony and Chairman, Council of Islamic Ideology will reach out to Ulema and all relevant stakeholders to work out the modalities for management of congregational religious services in light of the Corona Virus.

    10. Honorable Chief Justice of the Supreme Court and Honorable Chief Justices of the provincial High Courts will be requested to:
    (i) instruct all courts not to schedule cases of civil nature for three weeks.
    (ii) Judicial Magistrates and Session Court Judges to visit the concerned jails for three weeks to process remand and bail cases.

    11. No visitors will be allowed to visit prisoners in jails for three weeks.

  • SECP discusses stock market situation

    SECP discusses stock market situation

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has discussed the situation of the stock market, which triggered halt for third time in this week.

    The SECP team lead by the Chairman SECP and Commissioner(SM) held a detailed meeting with the CEOs of Pakistan Stock Exchange, National Clearing Company and Central Depository Company (Self-Regulatory Organizations – SROs) this morning, to review and discuss the stock market situation, risk management and business continuity.

    The index based market halts were triggered for the third time during this week. This cooling-off period gave an opportunity to investors to align their trading strategy and collection of margins by the Clearing Company.

    The participants of the meeting affirmed that risk management system was functioning efficiently and margins were being collected timely.

    The Market operations were running smoothly as a whole. The SROs further apprised that their business continuity plans and disaster recovery setup was in place based on SECP’s earlier instructions.

    The Chairman SECP emphasized on conducting drills to ensure remote operations of trading, clearing, settlement and custody services while allowing remote access of market participants to such systems in case onsite operations or physical access was impacted.

    He also suggested adoption of further preventive measures against spread of coronavirus.

    The SECP advised SROs to remain vigilant, continue to provide uninterrupted access to market participants and ensure effective risk management while maintaining actively engagement with their boards of directors and committees for close coordination.

  • Rupee gains 16 paisas, breaks 4-day losing streak

    Rupee gains 16 paisas, breaks 4-day losing streak

    In Karachi, the Pakistani Rupee showcased resilience on Friday, gaining 16 paisas against the US Dollar and breaking a four-day losing streak in the interbank foreign exchange market.

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  • Stock market gains 104 points amid third trading halt

    Stock market gains 104 points amid third trading halt

    KARACHI: The stock market gained 104 points on Friday despite third market halt in the week was witnessed.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) Index closed at 36,060 points as against 35,957 points showing an increase of 104 points.

    Analysts at Arif Habib Limited said that third consecutive market halt was met by one of the largest pull backs in recent times at the bourse.

    Initially market opened on a negative note with -614 points and 0.86 million traded at opening bell.

    Situation worsened and caused the halt at -1683 points by 9:25 AM and 25 million shares traded on KSE100.

    Market re-opened at -1267 points, registering a recovery of 416 points and continued the path of recovery by the close of first session.

    Second session opened -347 points, which showed a recovery of 1336 points, however, the index swung back into negative territory and yet again managed to post a recovery in MoC when the index posted gain.

    Recovery was mainly seen in Oil & Gas, Banking and Cement sectors which have heavy weightage on Index.

    Market recovery largely banked on improving sentiments in regional and global markets, whereby India and South Korea were seen banning short sale.

    In addition, international crude price also posted an intra-day gain of around 5 percent that helped investors make a positive view on pertinent stocks.

    Sectors contributing to the performance include E&P (+117 points), Pharma (+35 points), O&GMCs (+28 points), Chemical (+23 points), Banks (-63 points), Cement (-40 points), Tobacco (-37 points).

    Volumes increased from 230.7 million shares to 290.1 million shares (+26 percent DoD). Average traded value also increased by 42 percent to reach US$ 87.8 million as against US$ 61.9 million.

    Stocks that contributed significantly to the volumes include BOP, MLCF, FCCL, HASCOL DGKC, which formed 38 percent of total volumes.

    Stocks that contributed positively include OGDC (+57 points), PSO (+32 points), POL (+26 points), HBL (+25 points) and ENGRO (+25 points).

    Stocks that contributed negatively include LUCK (-51 points), UBL (-48 points), MCB (-42 points), PAKT (-37 points), and FFC (-16 points).

  • PSX launches NIT Pakistan Gateway Index

    PSX launches NIT Pakistan Gateway Index

    KARACHI: Pakistan Stock Exchange (PSX) on Friday announced the launching of NIT Pakistan Gateway Index (NITPGI).

    In a statement the stock market informed all the concerned that the NIT Pakistan Gateway Index would be made live along with its constituents from March 16, 2020.

    The index was initiated on January 31, 2020 with the base value of 10,000 points.

    As per the prescribed criteria the index aims to track the performance of stocks that represent top 50 percent free float market capitalization of KSE-100 index.

  • FBR allows filing Annexure-H for July – October up to April 15

    FBR allows filing Annexure-H for July – October up to April 15

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed taxpayers to submit their stock position for the period July – October 2019 up to April 15, 2020 in order to claim sales tax refunds under newly only verification and issuance system.

    In an official memorandum issued on Friday, the FBR condoned the time limit for filing of Annexure – H for the tax period July – October 2019 up to April 15, 2020.

    Annexure-H is a statement for providing stock position by taxpayers along with monthly sales tax return.

    The FBR from July 01, 2019 introduced expeditious payment of sales tax refunds within 72 hours subject to the true filing of Annexure – H.

    Recently, Karachi Tax Bar Association (KTBA) highlighted this issue and urged the tax authorities to resolve for facilitating exporters and manufacturers.

    The KTBA pointed out that as per the amendments made in Sales Tax Rules, 2006 vide SRO no. 918(I)/2019 dated August 7, 2019, mechanism for expeditious processing of refund claim has been devised only for manufacturers-cum- exporters.

    As per the Rules, refund will be treated as having been filed only after filing of Annexure H of the Sales Tax return, for which deadline of 120 days has been prescribed in the Rules and the same can be extended for a period of 60 days on the basis of approval from the Commissioner.

    However, the rules are silent about the mechanism for processing of Sales Tax refunds incase Annexure H has not been filed by manufacturer-cum-exporter for any reason. Considering the legal and legitimate right of the taxpayer to claim adjustment / refund of the input tax, either of the following two option be considered by the FBR for facilitation of exporters:

    Allow filing of Annexure H without any time limit [present time limit of 4 months be abolished and taxpayer be allowed to claim refund as and when required] ii. Incase present limit of 4 months cannot be abolished, registered persons be allowed at least to alternatively file refund on annual basis after the end of the tax year.

    Apart from the above, Annexure H is only being allowed to be filed to taxpayers who have filed the said Annexure from sales tax returns of July 2019 and onwards. Instead of claiming refund, some taxpayers have reported sales tax carried forward balance in their sales tax returns from July 2019 onwards. In case they now intend to file Annexure H from the current month,

    FBR’s online portal does not allow such taxpayers to enter opening balance of inventory / raw materials as the said field in blocked for editing. This limitation should be removed and taxpayers should be allowed to file Annexure H for any specific month, for which they intend to claim refund.

    From apparent mechanism being followed by the system, it appears that those taxpayers who have not filed Annexure H for the month of July 2019 will never be allowed to file Annexure H for any subsequent month. This apparent anomaly should be resolved at earliest.

  • FBR to launch online production monitoring of three major sectors

    FBR to launch online production monitoring of three major sectors

    ISLAMABAD: Federal Board of Revenue (FBR) to launch online monitoring of production in three major sectors for preventing tax evasion.

    The FBR has decided to launch real-time monitoring of production by cement, sugar and fertilizer sectors in order to prevent tax evasion.

    In this regard the FBR issued Invitation for Licence (IFL) for IT based solution for Electronic Monitoring (Trade and Trace System) of specified products i.e. cement, sugar and fertilizer.

    The FBR said that the trade and trace system established, maintained and operated must enable FBR to monitor production activities and to generate real-time information volumes produced at the manufacturing sites, including verification data of collection of applicable taxes relating to specified goods produced.

    The track and trace system must be able to provide FBR enforcement officials and delegated agencies with real-time information enabling them to monitor and control the movement of specified goods through the supply chain, including determination of the origin of the specified goods, as well as to determine their legal status.

    Foreign specified goods imported into Pakistan will have unique identification markings, applicable for Pakistan, already affixed or printed at the point of manufacture outside of country. Similarly, any specified goods produced in Pakistan for export shall be required to carry unique identification markings for intended destination markets.

    The licensee must guarantee to factor these requirements into the system to ensure readability for imported products and application for exported products as per Licensing Rules, 2019.

    The FBR said that though Large Scale Manufacturing (LSM), being the major and comparatively documented sector of our economy, contributes a sizeable chunk of revenue yet the real tax potential of LSM segments like Cigarette, Cement, Sugar, Beverages etc is yet to be realized.

    Currently across the globe Track and Trace technology offers the most feasible, reliable and straightforward solution.

    With minimum human interface Track and Trace technology if implemented in a proper transparent manner it can; a) Safeguard the interest of revenue by mapping and capturing unregistered segment; b) Act as anti-tax fraud tool entailing visible increase in revenue and dis-incentivizing under declaration and; c) Ensure level playing field to all in the aforesaid sectors.

    In order to prevent leakage of revenue, under-reporting of production and sales of specified goods and to ensure proper payment of duties/taxes on the manufacture and sale of specified goods, the FBR is mandated to licence the implementation of a track and trace system; which is to be developed, operated and maintained by the licensee for specified goods manufactured in and imported into Pakistan.

    To this end, the FBR is inviting applications for grant of licence to be issued under the Sales Tax Rules, 2006 (as amended Vide 250(I)/2019 dated 26.02.2019 and SRO. 918(I)/2019 dated 7th August, 2019) for the development, maintenance and operation of track and trace system in accordance with the provisions of the rules and the instructions.

  • US stocks plummet on US travel ban from Europe

    US stocks plummet on US travel ban from Europe

    US stocks witnessed plummeted on Thursday after the US President imposed travel ban to curb coronavirus outbreak, which spooked investors and rattled world markets.

    According to CNBC the Dow Jones Industrial Average fell 2,352.33 points, or 9.99 percent, to 21,200.89, the S&P 500 lost 260.75 points, or 9.51 percent, to 2,480.63 and the Nasdaq Composite dropped 750.25 points, or 9.43 percent, to 7,201.80.

    CNN reported that Wall Street had its worst day since October 19, 1987, also known as “Black Monday”.

    The S&P 500 (SPX) fell 9.5 percent. The index, which is the broadest measure of US stocks, is now in a bear market, defined as a 20 percent drop from the most recent peak. This has officially ended the longest bull-market in history.

    The Dow (INDU) fell 2,353 points, or nearly 10 percent, also its worst day since “Black Monday.” It was its worst one-day point drop on record. The Nasdaq Composite (COMP) dropped 9.4 percent.

    CNN further said President Donald Trump used a national address on the coronavirus to announce a ban on most travel from Europe, but failed to deliver the comprehensive economic and medical response to the outbreak that investors are craving.

    BBC reported that in the US, the Dow and S&P 500 were also hit by their steepest daily falls since 1987.

    The declines came despite actions by the Federal Reserve and European Central Bank to ease financial strains.

    At the start of US trading, plummeting shares triggered an unusual automatic suspension in trading for the second time this week.

    When trade resumed 15 minutes later, shares continued to fall, taking cues from the slide in European markets.

  • Suitable increase in salaries to be proposed in upcoming budget: finance ministry

    Suitable increase in salaries to be proposed in upcoming budget: finance ministry

    ISLAMABAD: The government to propose suitable increase in salaries of government employees in the upcoming budget 2020/2021, said a statement issued by the Finance Division on Thursday.

    In response to the strike call by the Secretariat employees for raising their salaries the ministry of finance has held meetings with the federal government employees to assure them that their proposals will be duly considered and proposed to the government in the next budget.

    In a statement issued here Thursday, the Finance Division has said that on the instructions of Adviser to the Prime Minister on Finance & Revenue Dr Abdul Hafeez Shaikh, separate meetings of Secretary Finance as well as Special Secretary Finance had been held with the protesting employees to get a full understanding and awareness of the financial constraints and problems of the government employees due to the inflation.

    The statement said that the government understood and acknowledged the difficulties and economic constraints faced by the federal government employees and in view of their inputs obtained in the meetings held, proposal for a suitable raise in their salaries would be prepared by factoring in the overall economic situation, and available fiscal space and incorporated in the upcoming Federal Budget 2020-21.

    In another statement, the ministry of finance denied a news report published in a section of the press suggesting and insinuating a Rs 100 billion cut in the Public Sector Development Programme (PSDP) for the current fiscal year as per briefing by the Finance Secretary to the National Assembly’s Standing Committee on Finance and Revenue the other day.

    The Finance Division strongly denies and rebuts this news report as the Secretary Finance never stated at any point during his presentation to the National Assembly’s Standing Committee on Finance and Revenue that there could be cut in the federal development programme this year, said an official statement issued by the Finance Division today.

    The statement asserted that the Finance Division has actually facilitated maximum and speedy disbursements for the year and there is no cut planned or suggested in the development spending for the current fiscal year. The Finance Division has always provided full support to Planning Division to ensure timely expenditure, said the statement.

  • Sindh shuts educational institutions till May 30 on coronavirus threat

    Sindh shuts educational institutions till May 30 on coronavirus threat

    KARACHI: The Sindh government on Thursday decided to extend the closure of educational institutions up to May 30, 2020 as prevention measures against coronavirus pandemic.

    Sindh Chief Minister Syed Murad Ali Shah presiding over special cabinet meeting decided to keep the educational institutions closed up to May 30, 2020.

    This will be treated as summer vacation.

    The meeting was attended by all the provincial ministers, advisors, chief secretary Mumtaz Shah, Chairman P&D M. Waseem, secretaries of school education, colleges and university and boards and general administration.

    The chief minister said that he has been chairing taskforce meeting on coronavirus from the last 14 days. The coronavirus has become an endemic, therefore the government has to take drastic measures to contain it.

    The cabinet after thorough discussion decided to close the schools up to May 30, 2020. This would be treated as summer vacation. The schools would reopen June 1, 2020.

    The cabinet also proposed to discourage every kind of gathering, including marraiges, social and religious gatherings.

    Prisoners: The cabinet members raised the issue of prisoners who meet with their relatives during their hearing in the courts and then return to the crowded jails.

    The chief minister directed health department to issue advisory of jail inmates and their family members with whom they meet during the hearings and at the jail.

    The chief minister directed the commissioners through chief secretary to hold meetings with the religious scholars and minorities’ leaders and discuss how the religious congregation could be discouraged in the present condition.

    In a tweet Senator Saeed Ghani, spokesman of Sindh government said that the matriculation examination which was scheduled to start from March 16, 2010 was also postponed.