Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SECP issues advisory for companies on coronavirus threat

    SECP issues advisory for companies on coronavirus threat

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Thursday issued advisory for companies to protect from coronavirus threat.

    In light of the threat posed by the evolving COVID-19 situation (Corona Virus) and to protect the wellbeing of shareholders, the SECP advised all companies to modify their usual planning for annual general meetings.

    Meeting of the Board of Director may also be held through tele / video conferencing.

    SECP has recommended all companies to consider and evaluate the risks in the present situation.

    Every company, is required to hold, an annual general meeting (AGM) within sixteen months from the date of its incorporation and thereafter once in every calendar year within a period of 120 days following the close of its financial year.

    As AGM season for December end companies is approaching, the directors and secretaries should modify their usual planning for their company’s AGM in light of the threat posed by the evolving COVID-19 situation.

    Directors should consider if members can consolidate their attendance and voting at AGMs into as few people as possible through proxies, while honoring quorum provisions.

    In order to avoid large gathering at one place, the companies may consider provision of video link facilities at different locations considering the geographical dispersal of its members.

    The companies shall consider basic protective measures during the meeting including facility of cleaning hand with sanitizers or soap and water. Moreover, for safety of members seating arrangement shall be made at appropriate distance.

    Furthermore, voting through postal ballot may be considered by the chairman of the meeting or by the members present in person or through video-link or by proxy having not less than one-tenth of the total voting power by demanding poll for resolutions.

    This is safer option in current situation. The members of a private company or a public unlisted company (having not more than 50 members), may pass a resolution (ordinary or special) by circulation signed by all the members for the time being entitled to receive notice of a meeting, except for the ordinary businesses specified under sub-section (2) of section 134 of the Companies Act, 2017 to be conducted in the annual general meeting.

    The directors may hold their board meetings through tele or video link provided that the minutes of such meeting are approved and signed subsequently by all the directors.

  • Foreign exchange reserves increase to $18.906 billion

    Foreign exchange reserves increase to $18.906 billion

    KARACHI: The foreign exchange reserves of the country increased by $37 million to $18.906 billion by week ended March 06, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $18.869 billion a week ago.

    The official reserves of the central bank increased to $12.789 billion by week ended March 06 from previous week‘s level of $12.757 billion.

    The reserves held by commercial banks was at $6.115 billion as against $6.111 billion by week ended February 28, 2020.

  • Rupee falls 71 paisas on financial crisis

    Rupee falls 71 paisas on financial crisis

    KARACHI: The Pak Rupee declined by another 71 paisas against dollar on Thursday amid global financial crisis have been deepened after World Health Organization (WHO) declared coronavirus as global epidemic.

    The rupee ended Rs159.14 to the dollar from previous day’s closing of Rs158.43 in interbank foreign exchange market.

    The local currency fell by Rs4.89 or 3.16 percent against dollar during past four days trading.

    Currency experts said the outflow of investment from local debt securities was the primary reason for the rupee devaluation.

    The foreign currency market was initiated in the range of Rs158.95 and Rs159.10. The market recorded day high of Rs159.25 and low of Rs158.85 and close at Rs159.14.

    The exchange rate in open market also witnessed devaluation in rupee value. The buying and selling of dollar was recorded at Rs157.50/Rs158.50 from previous day’s closing of Rs158.00/Rs158.50 in cash ready market.

  • Stock market faces another crash; ends down by 1717 points

    Stock market faces another crash; ends down by 1717 points

    KARACHI: The stock market crashed on Thursday following deterioration in world stock markets after World Health Organization (WHO) declared coronavirus as global pandemic.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) failed to sustain 36,000 level and ended down by 1717 points to 35,956 points.

    The benchmark index witnessed sharp decline on Monday this week.

    Analysts said that the stock market was under massive pressure following significant dip in US markets and sharp decline in Asian markets.

    Besides, world oil prices also came down by 4 percent. They said that the multiple factors had brought down the local bourses.

    Earlier in the day the market was halted for 45 minutes when the KSE-30 index fell 4 percent. This was second halt in trading of PSX in this week. However, the market unable to recover after resumption.

    The analysts said that the investors were cautious about the threat of coronavirus. The central banks of many countries had cut interest rates owing to expected decline in the world economy.

    Further, the investors are also eying a sizeable cut in key policy rate by the State Bank of Pakistan (SBP) as the statement is scheduled to be announced on Mach 17, 2020.

  • Trading at PSX halts; KSE-100 falls 1324 points

    Trading at PSX halts; KSE-100 falls 1324 points

    KARACHI: The trading activities at Pakistan Stock Exchange (PSX) halted as KSE-30 index fell more than 4 percent in intraday on Thursday.

    The benchmark KSE-100 index also witnessed 1324 points or 3.64 percent decline during intraday trading. The KSE-100 has come down and is trading at 36,348 points.

    The PSX is also following the global stock market which witnessed sharp decline after the World Health Organization (WHO) declared coronavirus as pandemic.

    The trading activities at the PSX has been stopped for the second time in this week.

    The trading has been halted for 45 minutes and will resume at 3:00pm PST.

  • No refund payment made on fake claims: FBR

    No refund payment made on fake claims: FBR

    KARACHI: Federal Board of Revenue (FBR) has said that it had never paid refunds against fake claims.

    In a statement issued on Thursday, the FBR clarified the news item about loss of revenue caused due to issuance of refund claims on fake registration by FBR published by some section of press and stated that no fake refund claim has been sanctioned or issued as mentioned in the news items.

    “As no fake refund payment has been made, therefore, the question of loss of government revenue does not arise,” FBR clarified.

    The FBR has initiated the fact finding on the basis of findings of Federal Tax Ombudsman and the report would be presented to FTO within the time limit as directed in the order passed on February 20, 2020.

  • US stocks tumble as coronavirus declared pandemic

    US stocks tumble as coronavirus declared pandemic

    The US stock indices plunged on Wednesday after World Health Organization (WHO) declared coronavirus.

    This is the second major fall in just three days and wipe out Tuesday’s recovery.

    The major indices ended down included: Dow Jones plunged by 1465 points or 5.9 percent to close at 23,553 points.

    The S&P 500 fell by 4.9 percent at 2,741. Nasdaq Composite came down by 4.7 percent to 7,952.

    According to CNBC the coronavirus-induced sell-off reached a new low on Wednesday as Wall Street grappled with the rapid spread of the virus as well as uncertainty around a fiscal response to curb slower economic growth resulting from the outbreak.

    Earlier in the day, the WHO declared the coronavirus outbreak a pandemic.

    As the number of confirmed cases of the virus worldwide surpassed 112,000 – and the death toll neared 4,500 – the WHO said it was ‘deeply concerned by the alarming levels of spread and severity’.

    The Director-General of the UN agency, Dr Tedros Adhanom, also blasted governments for ignoring repeated WHO pleas to take urgent and aggressive action, with cases of the deadly illness outside of China having risen 13-fold in the space of a fortnight because of escalating crises in Italy, Iran, Spain, Germany, and France.

  • World services trade to further weaken on coronavirus impact: WTO

    World services trade to further weaken on coronavirus impact: WTO

    KARACHI: World Trade Organization (WTO) has said ongoing weakness in world service trade likely to worsen due to economic impact of the COVID-19 virus.

    “World services trade growth continued to weaken toward the end of 2019 and into the first quarter of 2020,” according to the WTO’s Services Trade Barometer, released on 11 March 2020.

    The latest reading of 96.8 is down from the 98.4 recorded last September and well below the baseline value of 100 for the index, suggesting below-trend growth in world services trade.

    “The indicator does not yet fully capture the economic impact of the COVID-19 virus and is likely to decline further in the coming months.”

    Among the component indices, the largest declines were in passenger air travel (93.5) and container shipping (94.3), growth of which was already moderating before the coronavirus COVID-19 outbreak.

    Both indices cover developments through January and may partly reflect early efforts to halt the spread of the disease, which intensified toward the end of the month.

    The drop in the container shipping index was driven by lower shipping volumes in Asia while the slowdown in passenger air travel was more broad-based, also covering North America, South America and Europe.

    The global financial transactions (97.7) and ICT services (97.0) indices also dipped below trend, while the construction index (99.8) appears to have held steady.

    The global services Purchasing Managers’ Index (96.1) is the most forward-looking barometer component, reflecting expectations that COVID-19 is likely to continue to weigh on services trade in the near-term.

    An approximate measure of the volume of world services trade shows that year-on-year growth in services trade activity already fell from 4.7 percent in the first quarter of 2019 to 2.8 percent in the third quarter.

    The Services Trade Barometer highlights turning points and changing patterns in world services trade. Unlike its counterpart for goods, the fluctuations registered by the services indicator coincide with movements in actual trade flows, rather than anticipating them.

    Readings of 100 indicate growth in line with medium-term trends. Readings greater than 100 suggest above-trend growth while those below 100 indicate the opposite.

  • Foreign transactions through debit, credit cards generate Rs670 million income tax

    Foreign transactions through debit, credit cards generate Rs670 million income tax

    KARACHI: The revenue authorities have collected Rs670 million as income tax from foreign transactions through debit or credit card during first eight months of current fiscal year.

    The tax was collected by Regional Tax Office (RTO)-II Karachi. The tax office collected only Rs83 million in the corresponding period of the last fiscal year.

    The collection of withholding tax was introduced through Finance Act, 2018 and it was second year of the collection under this head.

    Section 236Y was inserted to Income Tax Ordinance, 2001 through Finance Act, 2018.

    Under this provision, every banking company shall collect advance tax, at the time of transfer of any sum remitted outside Pakistan, on behalf of any person who has completed a credit card transaction, a debit card transaction, or a prepaid card transaction with a person outside Pakistan at the rate of one percent.

    However, this tax rate shall be 100 percent more in case the person making transactions is not on the Active Taxpayers List (ATL).

    The advance tax collected under this section shall be adjustable.

    Sources in the tax office said that the provision was introduced to check the outflows of remittances through debt and credit cards.

    They said that foreign payments increased phenomenally due to rise in quantum of foreign trade. People were using plastic money to make payments against their foreign purchases.

    The sources further said that many importers instead of opening letter of credit were engaged in direct purchases while making payment through credit cards.

    The FBR sources said that the purpose of introducing this provision was to check the transfer of money and its source. They said that the tax deducted on such transactions is adjustable.

    However, they said that the FBR is monitoring by obtaining information of persons making foreign transactions from banks issuing debit and credit cards.

  • Central banks lowering rates in response to coronavirus threat

    Central banks lowering rates in response to coronavirus threat

    KARACHI: Central banks of the world are responding to negative impact of coronavirus impact and they are reducing interest rate, said a top official of the State Bank of Pakistan (SBP).

    Syed Murtuza, Deputy Governor, SBP while addressing at a seminar on impact of coronavirus on economy organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday.

    The deputy governor said that due to deterioration in economy the central banks of many countries had reduced interest rates. He said that after Federal Reserve of the US the central banks of UK, Canada and Australia had also brought down the discount rates.

    Murtuza Sayed said that the spread of coronavirus disease (COVID-19) was different with every changing day.

    The cases in China are now on decline and situation is improving.

    He hoped that the bad situation would be improved by May this year. However, this epidemic may cause difficult economic situation for at least one quarter, he added.

    He said that according to the IMF the coronavirus would cause decline in world economic growth in 2020.

    He said that there was opportunity for Pakistan to improve exports in this situation. However, he said that Pakistan economy may have repercussions of world economic slowdown.