Author: Mrs. Anjum Shahnawaz

  • FBR directs completing inquiries against officials on urgent basis

    FBR directs completing inquiries against officials on urgent basis

    ISLAMABAD: Federal Board of Revenue (FBR) has directed inquiry officers to complete their reports on an urgent basis against officials allegedly involved in misconduct.

    In a notification issued on Wednesday stated that inquiry officers were not complying to instructions in completing their reports after lapse of time and with inordinate delay.

    The FBR said: “Whereas it is understood that Government Servants Efficiency & Disciplinary (E&D) Rules, 1973, themselves do not unequivocally provide a time frame within which an inquiry has to be completed, however, the urgency in completing the inquiries is implicit in procedure provided under Rule 6 of the E&D Rules, whereby it has been instructed that an ‘inquiry officer or committee, as the case may be, shall hear the case from day to day basis and no adjournment shall be given except for reasons to be recorded in writing.”

    The FBR further said that the Prime Minister’s Officer, through the Cabinet Division, had directed that all enquiries initiated under the E&D Rules, pending in any level beyond three months, shall be finalized on merit, and submitted to the concerned quarters within 90 working days.

    Furthermore, appointment as an inquiry officer under the relevant rules is a sacred trust, bearing both responsibilities, to the State, the nation and the department, and obligations – to be fair, impartial and just, the FBR said.

    “It is again noted with concern that inquiry reports being received by the board and being submitted to authorized officers in the field formations do not qualify against the basic benchmark,” the FBR said, adding that in so many cases, inquiry officers have not established the charges leveled, citing inability or failure on part of the DR to provide a certain document or prove the charge.

    “It should be noted that an inquiry officer is not a judge presiding over an adversarial judicial system where two different parties have to prove or disprove their case.”

    As the title itself implies, an inquiry officer has to inquire into the subject matter and, under Rule 7 of the E&D Rules, 1973, can exercise the powers to ‘summon any person, required production of documents, and receive evidence, the FBR said.

    The FBR said that it expects the inquiry officers shall actively inquire into and apply an independent mind to arrive at a conclusion and not rely only on the ability of the DR to prove or disprove the charges leveled.

  • Stock market gains 209 points amid profit taking

    Stock market gains 209 points amid profit taking

    KARACHI: The stock market gained 209 points on Wednesday as profit taking activity was seen during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,836 points as against 38,627 points showing an increase 209 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note with +154 points and added an overall sum of 497 points. Anticipated profit booking brought the Index down to +209 points by the end of session.

    Banks, Steel, Chemical and Fertilizer sectors saw profit booking before last day of the trading week. Among E&P companies, PPL sustained selling pressure amid high volumes.

    Power sector led the volumes with 93.7 million shares, followed by Cement (60.7 million) and Technology (60.2 million). Among scrips, PAEL topped the volumes with 26.2 million shares, followed by MLCF (26.1 million) and BOP (23.4 million).

    Sectors contributing to the performance include Cement (+62 points), Power (+59 points), E&P (+49 points), O&GMCs (+25 points), Insurance (+23 points).

    Volumes increased from 394.3 million shares to 508.3 million shares (+29 percent DoD). Average traded value also increased by 30 percent to reach US$ 126.3 million as against US$ 97.1 million.

    Stocks that contributed significantly to the volumes include PAEL, MLCF, BOP, FFL and PRL, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include HUBC (+32 points), LUCK (+28 points), KEL (+19 points), PPL (+19 points) and POL (+15 points).

    Stocks that contributed negatively include HBL (-35 points), FFC (-20 points), MEBL (-11 points), FFBL (-11 points), and PAKT (-9 points).

  • SBP revises instructions for IBWs of conventional banks

    SBP revises instructions for IBWs of conventional banks

    KARACHI: State Bank of Pakistan (SBP) on Wednesday revised instructions for Islamic Banking Windows (IBWs) of conventional banks in order to enhance the share and outreach of Sharia compliant financial services.

    In a statement the central bank said that keeping in view the significant potential of Islamic Banking Windows (IBWs) in enhancing the share and outreach of Shariah compliant financial services and increase in financial inclusion, instructions have been revised for banks to expand the scope of operations of IBWs.

    IBWs can now offer all types of financing products to their customers including Corporates, SMEs, Agriculture, Housing, and Consumers. However, this facility is subject to the condition that respective IBW branch shall be converted into full-fledged Islamic banking branch within a period of three years.

    At present, Islamic banking products and services are being offered by full-fledged Islamic banks, Islamic banking subsidiaries and Islamic banking branches of conventional banks after getting approval/license from SBP. Conventional banks can open IBWs, which are dedicated counters in conventional branches, after getting permission from SBP; however, these were not allowed to offer any financing products.

    With 1,400 IBWs of 11 banks currently operational in the country, their potential to improve access to finance will increase significantly.

    Further, it will contribute towards increase in financial inclusion through provision of Shariah compliant financing facilities to vast majority of population.

    The revised instructions also incorporate different amendments or additions to existing regulations and include policy formulation on IBWs, submission of annual IBWs expansion plan, physical setup & display requirements for IBWs, opening & closure of IBWs, their fee structure, and revisions in reporting requirements.

    These revised instructions will supersede all previous instructions issued on IBWs by SBP from time to time.

    It is expected that this new policy measure will contribute towards achieving the targets set under National Financial Inclusion Strategy for Islamic banking, which envisages attaining a share of 25 percent percent in total assets and deposits of the banking industry and 30 percent share in total branch network of the industry by the end of 2023.

  • Nazir Kehar elected as President of PSX stockbrokers association

    Nazir Kehar elected as President of PSX stockbrokers association

    KARACHI: Hamad Nazir Kehar has been elected as President of PSX Stockbrokers Association for the Year 2020-2021, a statement said on Wednesday.

    Muhammad Munir Khanani has been elected as Vice-President. Muhammad Adil Ghaffar has been elected as General Secretary, Fawad Yousuf as Joint Secretary and Kazim Sultan Dattoo has been elected for the post of treasurer.

    Election commissioner Usman Salim Kasmani, announced for Managing Committee members and Amin Yousuf Balgamwala, Abdus Samad Salim, Ghulam Mujtaba Sakarwala, Muhammad Zahid Ali Habib and Noman Abdul Majeed Adam is elected for Managing Committee.

  • Rupee eases by 32 paisas against dollar on payment demand

    Rupee eases by 32 paisas against dollar on payment demand

    KARACHI: The Pak Rupee eased by 32 paisas against dollar on Wednesday owing to rising demand for import and corporate payments ahead of Eid holidays.

    The rupee ended Rs166.78 to the dollar from previous day’s closing of Rs166.46 in interbank foreign exchange market.

    Currency experts said that the dollar demand was increased due to scheduled holidays for Eid-ul-Adha.

    The government has announced holidays from July 31, 2020 to August 02, 2020 on occasion of Eid-ul-Adha.

    The currency experts however said that the inflows of export receipts and remittances besides the transfers of funds from foreign lending agencies would help the rupee value in coming days.

    The State Bank of Pakistan (SBP) on Tuesday received $505.5 million from the World Bank.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Reduced rate of withholding sales tax withdrawn for registered persons

    Reduced rate of withholding sales tax withdrawn for registered persons

    ISLAMABAD: A registered person, who is not an active taxpayer, may not avail benefit of reduced rate of withholding sales tax after amendment made through Finance Act, 2020.

    Sources in Federal Board of Revenue (FBR) said that amendments have been made to Eleventh Schedule of Sales Tax Act, 1990 through Finance Act, 2020 under which the active taxpayers would be eligible to avail reduced rate of withholding sales tax at the time of supplies.

    Prior to this amendment registered persons were enjoying the reduced rate at the time of supply but now the registered persons, if not active taxpayers, shall pay full amount of sales tax.

    According to the amendment the withholding agents including federal and provincial government departments; autonomous bodies; and public sector organizations; companies as defined in the Income Tax Ordinance, 2001 shall collect/deduct 1/5th of sales tax as shown on invoice from those persons, who are active taxpayers.

    Similarly, person registered, but no active taxpayer, as a wholesaler, dealer or distributor are required to pay full amount of sales tax instead of reduced rate.

    Prior to the amendment, the withholding agents including federal and provincial government departments; autonomous bodies; and public sector organizations; companies as defined in the Income Tax Ordinance, 2001 were required to collect/deduct 1/10th of sales tax as shown on invoice from person registered as a wholesaler, dealer or distributor.

    In serial No. 03 of the Schedule, the Federal and provincial government departments; autonomous bodies; and public sector organizations are required to collect/deduct whole of the tax involved or as applicable to supplies on the basis of gross value of supplies form person other than active taxpayer.

    Similarly in Serial No. 04, the companies as defined in the Income Tax Ordinance, 2001 are required to collect/deduct five percent of gross value of supplies from persons other than active taxpayers.

    In serial number 06 the registered persons purchasing cane molasses are required to collect/deduct whole of sales tax applicable from persons other than active taxpayers.

    Active Taxpayer has been defined under Sales Tax Act, 1990 as a registered person who does not fall in any of the following categories, namely:-

    (a) who is blacklisted or whose registration is suspended in terms of section 21;

    (b) fails to file the return under section 26 by the due date for two consecutive tax periods;

    (c) who fails to file an Income Tax return under section 114 or statement under section 115, of the Income Tax Ordinance, 2001(XLIX of 2001), by the due date; and

    (d) who fails to file quarterly or an annual withholding tax statement under section 165 of the Income Tax Ordinance, 2001.

  • FBR starts scrutiny of officials under new directory retirement rules

    FBR starts scrutiny of officials under new directory retirement rules

    ISLAMABAD: Federal Board of Revenue (FBR) has started scrutiny of its officials from BS-1 to BS-16 under recently introduced the Civil Servants (Director Retirement from Services) Rules, 2020.

    In this regard the FBR on Tuesday issued directives to Chief Commissioners of Large Taxpayers Units (LTUs)/Regional Tax Offices (RTOs), Chief Collectors and Collectors of Customs and all director generals of Inland Revenue and Customs to submit details of officials in BS-16 and below whose cases qualify for consideration under the Civil Servants (Directory Retirement from Service) Rules, 2020.

    Necessary supporting documentary evidence may also be furnished alongwith these lists to the FBR by August 13, 2020 to enable the board to convene the meeting of the retirement committee.

    The heads of IR and Customs have been asked to provide details of officials from BS-1 to BS-16, including:

    01. Name of the officer with BPS

    02. Date of Entry into Civil Service

    03. Total length of Service

    04. No of Average Performance Evaluation Reports (PERs) (alongwith period of PER) and name of the officer RO/CO writing such PER

    05. Number of adverse PERs (alongwith period of PER) RO/CO and name of the officer writing such remarks

    06. Placed in Category ‘C’ by CSB/DSB/DPC

    07. Supresessions in CSB/DSB/DPC concerned

    08. Not recommended for promotion in case of HPSB (number of such considerations) and years of HPSB

    09. Was found guilty of corruption by NAB/other investigation agency

    10. Entered into plea bargain or voluntary return with NAB/other investigating agency

    11. Has conduct unbecoming

    12. Any other information to be brought before the board.

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  • Stock market gains 406 points on investors’ optimism

    Stock market gains 406 points on investors’ optimism

    KARACHI: The stock market gained 406 points on Tuesday as investors optimistic about financial results to be announced by banks.

    The benchmark KSE-100 index closed at 38,627 points as against 38,221 points showing an increase of 406 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today with +158. Banking sector remained in the limelight, which was further helped by Cement, Refinery, Textile and Chemicals.

    Profit selling was largely observed in E&P and Fertilizer sectors, however, this did not affect the market sentiment. Two sessions are left prior to Eid over the weekend, however, investors look optimistic considering the ongoing results season, especially due to Banks.

    UBL is scheduled to post results on August 5th. Banking sector led the volumes with 60.8 million shares, followed by Cement (59.6 million) and Technology (35.6 million). Among scrips, PAEL topped the volumes with 26.2 million, followed by MLCF (26.1 million) and BOP (23.4 million).

    Sectors contributing to the performance include Banks (+173 points), Cement (+73 points), Technology (+29 points), Textile (+21 points) and Autos (+20 points).

    Volumes increased from 288.1 million shares to 394.3 million shares (+37 percent DoD). Average traded value also increased by 22 percent to reach US$ 97.3 million as against US$ 79.7 million.

    Stocks that contributed significantly to the volumes include PAEL, MLCF, BOP, FFL and PRL, which formed 30 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+44 points), MEBL (+42 points), BAHL (+31 points), TRG (+31 points) and MCB (+30 points). Stocks that contributed negatively include DAWH (-7 points), JLICL (-7 points), NESTLE (-6 points), ARPL (-4 points), and FFC (-3 points).

  • Rupee gains 41 paisas on World Bank inflows

    Rupee gains 41 paisas on World Bank inflows

    The Pakistani rupee strengthened by 41 paisas against the US dollar in the interbank market on Friday, buoyed by significant inflows from the World Bank. The rupee closed at 286.35 per dollar, compared to the previous day’s closing rate of 286.76.

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  • Three FBR officials awarded ‘dismissal from service’ for misconduct

    Three FBR officials awarded ‘dismissal from service’ for misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) has awarded ‘dismissal from service’ to three officials for Regional Tax Office (RTO) Faisalabad, a statement said on Monday.

    The FBR sacked the officials following their admission of wrong doing after thorough inquiry.

    The revenue body said that all the three officials were found guilty of misconduct. Besides, FIRs were also lodged against them.

    The officials who were granted dismissal from service, included: Abid Iqbal, UDC Jhang Zone, Javed Masih, Notice Server and Manzoor Qadir, Watchman. While another official Aslam Pervez, watchman was suspended for three months.

    Through another notification, the FBR suspended Syed Muhamamd Salman Bukhari, Appraising Officer, MCC Gwadar and Maqbool Ahmed, IRO, RTO Faisalabad for three months.