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Author: Mrs. Anjum Shahnawaz

  • Rupee witnesses massive depreciation as stock market crashes

    Rupee witnesses massive depreciation as stock market crashes

    KARACHI: The rupee fell by Rs2.34 against dollar on Monday due to panic prevailed following massive decline in global stock markets.

    The rupee ended Rs156.58 to the dollar from last Friday’s closing of Rs156.24 in interbank foreign exchange market.

    Currency experts said that due to high volatility in the local stock market the currency market followed the suit. The benchmark KSE-100 of Pakistan Stock Exchange (PSX) recorded decline of 1161 points on Monday.

    However, they believed that the falling international oil prices would help the local currency to make gain in coming days.

    The foreign currency market was initiated in the range of Rs154.52 and Rs154.70. The market recorded day high of Rs156.70 and low of Rs154.70 and closed at Rs156.58.

    The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of dollar was recorded at Rs156.70/Rs157.00 from last Friday’s closing of Rs154.00/Rs154.30, in cash ready market.

  • Byco Petroleum announces setting up diesel hydro de-sulphurising unit

    Byco Petroleum announces setting up diesel hydro de-sulphurising unit

    KARACHI: Byco Petroleum Pakistan Limited has announced to set up a diesel hydro de-sulphurising unit and a fluid catalytic cracking unit with the facilitation from Byco Industries Incorporated.

    In an information shared with Pakistan Stock Exchange (PSX) on Monday, the company said that a meeting of the Board of Directors of Byco Petroleum Pakistan Limited was held on Monday, March 09, 2020 and decided in-principal to set up: a diesel hydro de-sulphurising unit; and a fluid catalytic cracking unit.

    These facilities will be set up with the facilitation from Byco Industries Incorporated, being the majority stakeholders of the company.

    Consequently, for such purpose, the board resolved to call an extraordinary general meeting of the shareholders for seeking approval/authorization to enter into transactions/arrangements with the company’s related party, Cnergyico PK Limited (CPL) for: leasing of necessary assets/components by the company from CPL, which will be assembled into refinery units, including (a) a diesel hydro de-sulphurising unit and (b) a fluit catalytic cracking unit; and availing a subordinated loan from CPL, for the purpose of installing, commissioning and making operational the processing units, which shall enable the company to reduce sulphur content in diesel and convert furnace oil into gasoline and diesel for use in its business and ancillary arrangements.

  • US Consul General visits CDC

    US Consul General visits CDC

    KARACHI – May 19, 2025 – In a significant move to strengthen economic cooperation between the United States and Pakistan, US Consul General Rob Silberstein led a high-level delegation from the US Consulate in Karachi to the Central Depository Company of Pakistan Limited (CDC). The visit, held at CDC’s head office, was part of ongoing efforts to bolster trade and investment relations between the two countries.

    (more…)
  • Massive fall in global oil prices blessing for Pakistan economy: analysts

    Massive fall in global oil prices blessing for Pakistan economy: analysts

    KARACHI: The massive fall in international oil prices are blessing for Pakistan economy, analysts said on Monday.

    At the opening of international markets on Monday, oil prices declined significantly with WTI down by 26.5 percent to USD 30/bbl, Brent Oil down by 25 percent to USD 34/bbl and Arab Light Oil down by 34 percent to USD 34/bbl.

    This resulted as a direct consequence of disintegration of OPEC-Plus alliance while major countries could not agree to cut the oil output to reduce its supply to the global markets.

    “Pakistan is a net importer of oil with petroleum group imports contributing 25 percent to imports. WTI Oil prices averaged USD 57/bbl during past 12 months and have currently nosedived to USD 30/bbl. Pakistan would be able to save USD 5bn per annum on its imports,” analysts said at Arif Habib Limited.

    A decline in oil prices reduces Pakistan’s import bill hence resulting to lower trade and current account deficits and saves foreign currency.

    Consequently, lower oil prices translate to lower inflation demanding monetary easing leading to better consumer purchasing power benefitting other sectors with higher demand.

    Major benefitting sectors include cyclical sectors like cement, steel and automobiles. Major sectors which will bear the brunt of lower oil prices would include E&P, Refineries and OMCs.

    Lower oil prices improve government’s budget balance as it enhances government’s ability to collect taxes and reduces the amount of subsidy the government provides on sale of energy.

    In addition, the government would be able to spend the additional taxation on PSDP, improving growth prospects of the economy.

    The objective of the government should be, in addition to lower inflation, cover tax collection shortfall and implement long-awaited energy sector reforms including gas and electricity.

  • Rupee falls in early trade as stock market crashes

    Rupee falls in early trade as stock market crashes

    KARACHI: The foreign currency market followed the stock market decline as Pak Rupee depreciated by 81 paisas against dollar in early trading on Monday.

    The dollar is being traded at Rs155.05 in early trade in interbank foreign exchange market.

    The rupee was ended Rs154.24 to the dollar on last Friday trading.

    Earlier in the day the stock market was crashed and stopped trading. The market fell below five percent on record low in international oil prices.

    Analysts at currency market said that the currency market was facing import of uncertainty in the stock market.

  • Engro Polymer stops production activities on SEPA notice

    Engro Polymer stops production activities on SEPA notice

    KARACHI: The production activities have been stopped at plant of Engro Polymer and Chemicals located at Port Muhammad Bin Qasim, said a statement on Monday.

    The production activities have been stopped after Sindh Environment Protection Agency (SEPA) took notice of gas leakage incident at the plant.

    The company in a notification informed the stock market: “In relation to isolated incident reported to Pakistan Stock Exchange on March 06, 2020, Engro Polymer and Chemicals Limited (ECPL) has received a notice under Section 21(2) of Sindh Environment Protection Act, 2014 from the Enviornmental Protection Agency Government of Sindh. The notice has directed EPCL to stop all production activities at the plant and fixed a hearing on March 10. In compliance with the notice, all production activities are on hold at the plant.”

    Earlier on Friday March 6, 2020 the incident was reported at Engro Polymer and Chemcial.
    In a statement the company said that it was gathering complete details related to the incident.

    “Based on initial reports, some people have been shifted to a nearby medical facility for treatment of vomiting/nausea condition,” it said.

    The company’s staff is accompanying these people to ensure that they receive adequate medical treatment, it said. “No injuries or fatalities have been reported,” the company added.

    It further said that specific areas of the plant have been taken offline as a precautionary measure, and the company will conduct a complete and thorough investigation into the incident and will keep the stock exchange informed with any material developments in the matter.

  • Equity market crashes; halts on lower lock

    Equity market crashes; halts on lower lock

    KARACHI: Trading at the stock market has been halted after witnessing lower lock on Monday morning owing to sharp decline in world oil price.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 2,107 points or 5.83 percent at the opening on Monday morning.

    The market was trading at 36,113 points when it was suspended on lower lock. The market was closed at 38,220 on last Friday.

    Analysts said that the sharp decline in world oil prices was behind stock market crash.

  • Tax collection from property purchase falls amid FBR action against black money

    Tax collection from property purchase falls amid FBR action against black money

    KARACHI: The collection of withholding tax on purchase of immovable properties fell by 12 percent owing to fall in prices after slowdown in economy and enforcement of legal provisions by Federal Board of Revenue (FBR).

    Sources in local tax office in Karachi said that the collection of the tax office fell to Rs390 million during first eight months (July-February) of current fiscal year as compared with Rs443 million in the same period of the last fiscal year.

    The sources said that slowdown in economy had restrained people from purchasing or transfer immovable properties. Further the enforcing legal provision related to curb black money also prevented investment in the real estate business, they added.

    The sources said besides these issues the ongoing hearing related to illegal constructions in Karachi city at the level of Supreme Court of Pakistan also impacted the purchase of immovable properties.

    They said that the decline in collection of withholding income tax was also due to deteriorating in open market prices due to fear of action against black money.

    It is reported that the real estate business in Pakistan is one of the biggest avenue for the black money.

    The withholding tax on purchase of immovable property is one percent of the declared value on the basis of FBR valuation table. However, the tax rate is two percent if the buyer is not on the active taxpayers list (ATL).

    However, changes in the law enable the tax authorities to examine the declared value by a purchaser and on non-satisfaction the tax authorities may assess the property on fair market value.

    The sources said that the real estate business was also afraid as tax authorities had started obtaining information from bank regarding payment for the purchase of immovable properties.

    Besides, the tax authorities are also obtaining information of buyers of immovable properties from provincial property registrars on real-time basis.

    The sources said that the tax machinery was finalized strategy to take harsh action against black money invested in real estate business in the wake of significant shortfall in revenue collection.

  • All members of AOP responsible to pay tax default

    All members of AOP responsible to pay tax default

    KARACHI: Any tax payable by an Association of Persons (AOP) was not recovered in such case every person of the AOP shall be jointly and severally responsible for payment of the tax due.

    Officials of Federal Board of Revenue (FBR) said that through Finance Act, 2019 the amendment made to Section 139 of Income Tax Ordinance, 2001 to make responsible every person of an AOP for default payment.

    The Section 139 says:

    Section 139: Collection of tax in the case of private companies and associations of persons

    (1) Notwithstanding anything in the Companies Ordinance, 1984 (XLVII of 1984), where any tax payable by a private company (including a private company that has been wound up or gone into liquidation) in respect of any tax year cannot be recovered from the company, every person who was, at any time in that tax year —

    (a) a director of the company, other than an employed director; or

    (b) a shareholder in the company owning not less than ten per cent of the paid-up capital of the company, shall be jointly and severally liable for payment of the tax due by the company.

    (2) Any director who pays tax under sub-section (1) shall be entitled to recover the tax paid from the company or a share of the tax from any other director.

    (3) A shareholder who pays tax under sub-section (1) shall be entitled to recover the tax paid from the company or from any other shareholder to whom clause (b) of sub-section (1) applies in proportion to the shares owned by that other shareholder.

    (4) Notwithstanding anything in any law, where any tax payable by a member of an association of persons in respect of the member’s share of the income of the association in respect of any tax year cannot be recovered from the member, the association shall be liable for the tax due by the member.

    (5) Notwithstanding anything contained in any other law, for the time being in force, where any tax payable by an association of persons in respect of any tax year cannot be recovered from the association of persons, every person who was, at any time in that year, a member of the association of persons, shall be jointly and severally liable for payment of the tax due by the association of persons.

    (6) Any member who pays tax under sub-section (5) shall be entitled to recover the tax paid from the association of persons or a share of the tax from any other member.

    (7) The provisions of this Ordinance shall apply to any amount due under this section as if it were tax due under an assessment order.

  • Immovable property purchase made mandatory through banking channel

    Immovable property purchase made mandatory through banking channel

    KARACHI: Tax authorities have said that payment for purchase of immovable properties above Rs5 million is mandatory to be paid through banking channel. (more…)