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Author: Mrs. Anjum Shahnawaz

  • Engro wins UN business sustainability award

    Engro wins UN business sustainability award

    KARACHI: Engro Corporation has won the first prize for ‘Living the UN Global Compact Business Sustainability Award 2019’ in the Large National Category, for the second year in a row, a statement said on Tuesday.

    The company has been awarded in recognition of promoting UNGC Principles and Sustainable Development Goals.

    The award was presented at the Business Sustainability Moot and Living the Global Compact Best Practices Sustainability Award ceremony, organized by Global Compact Network Pakistan.

    The Award signifies Engro’s continued commitment towards UNGC principles in the areas of governance, human rights, labour rights, environment, and anti-corruption.

    Through its CSR arm of Engro Foundation, the Company has adopted an inclusive business model approach that targets low-income communities where its businesses are based.

    This approach enables underprivileged members of the society to emerge as potential business partners and become vendors, customers and employees in Engro’s business value chains.

    Further, Engro Foundation’s strategic community investments are focused on the provision of quality education, health and livelihoods to underprivileged communities across Pakistan.

    Sharing his thoughts on receiving the Award, Favad Soomro, Head of Engro Foundation, said: “It is a matter of great honour for Engro to win the UNGC award for second year in a row. The Company stands committed to upholding the UNGC principles and maximizing its social and economic impact for a more prosperous Pakistan.”

  • Coronavirus fear grips stock market traders

    Coronavirus fear grips stock market traders

    KARACHI: The stock market was remained under pressure during the course of the day as concerns over coronavirus in neighboring country Iran continued to weigh down on investor sentiment.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,858 points as against 39,144 points showing a decline of 285 points.

    Analysts at Topline Securities said that KSE 100 index remained under pressure during the course of the day as concerns over coronavirus in neighboring country Iran continued to weigh down on investor sentiment.

    Result announcement of main board companies that clocked in lower than the street consensus didn`t offer any respite to the market.

    Analysts at Arif Habib Limited said that the market opened 105 points down but quickly went green with 104 points for a short while, only falling back in to red zone for the rest of the session.

    During the session, index lost 451 points and closed the session -285 points. E&P, Banks, and OMCs largely faced selling pressure, whereas Cement and Steel sectors showed price gains.

    PPL announced financial results today and failed to impress the investors that resulted in further selling in the stock. Cement sector led the table with 17.7 million shares, followed by Banks (17.6 million) and Technology (12.4 million).

    Among scrips, UNITY topped the chart with 10 million shares, followed by BOP (9.2 million) and HASCOL (8.6 million).

    Sectors contributing to the performance include Banks (-116 points), E&P (-81 points), Fertilizer (-47 points), Tobacco (-34 points), Power (-28 points) and Cement (+25 points).

    Volumes declined from 144.2 million shares to 124.3 million shares (-14 percent DoD). Average traded value however, increased from US$ 35.7 million to US$ 386 million (+8 percent DoD).

    Stocks that contributed significantly to the volumes include UNITY, BOP, HASCOL, KEL and MLCF, which formed 33 percent of total volumes.

    Stocks that contributed positively include MEBL (+20 points), NBP (+13 points), EFERT (+12 points), KOHC (+7 points) and MARI (+7 points). Stocks that contributed negatively include UBL (-54 points), PPL (-52 points), ENGRO (-49 points), HBL (-42 points), and MCB (-36 points).

  • FPCCI demands immediate release of Rs250 billion tax refunds

    FPCCI demands immediate release of Rs250 billion tax refunds

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday demanded the government to release Rs250 tax refunds of exporters without any further delay.

    FPCCI President Mian Anjum Nisar urged the Prime Minister of Pakistan Imran Khan and Advisor to the Prime Minister on Finance to honour their commitment of disbursing sales tax refunds within 72 hours of submission of the claims.

    He informed that according to the exporters’ associations of Pakistan the stuck-up refunds claims of sales tax, income tax and duty drawback of five export-oriented industrial sectors – Textile, Leather, Carpet, Sports Goods and Surgical Goods- have reached to the tune of around Rs.250 billion whereas the FBR has also acknowledged the amount as Rs.200 billion.

    However, out of the total amount of Rs.250 billion, sales tax pending refunds are around Rs. 125 billion and the rest amount of over Rs. 120 billion is stuck-up on account of duty drawback on local taxes (DLTL) and customs rebates. Whereas only Rs.103 billion have been released so far.

    President FPCCI said that the number of sales tax refunds cases have been considerably increased after imposition of 17 percent sales tax on domestic supply chain of five leading export-oriented sectors and the government has failed to refund sales tax claim amount under FASTER system within 72 hours, rather Government has not paid exporters’ claims for the last several months.

    He apprehended that if the government does not realize the gravity of situation and exporter’s refunds are not released on war footing basis, the export sector will completely collapse leading to huge unemployment in the country.

    Mian Anjum Nisar said that the export is largely a function of industrial production, whereas large scale industry registered a negative growth of 6.45 percent during the first four months of the fiscal year 2020-21, therefore, exports have also registered a meager 3.2 percent growth during the first half of the year. Pakistan’s exports are stuck-up around $ 23 billion range since last year.

    He apprehended that FBR’s strict policy would completely hurt the value added export sectors and therefore, urged the government to take all necessary steps to release payments of pending refund claims to the exporters immediately and restore zero rating of sales tax that is no payment no refund regime.

  • Rupee falls by four paisas against dollar

    Rupee falls by four paisas against dollar

    KARACHI: The Pak Rupee ended four paisas down against dollar on Tuesday amid demand for import and corporate payments.

    The rupee ended Rs154.25 to the dollar from previous day’s closing of Rs154.21 in interbank foreign exchange market.

    Currency dealers said that the rupee depreciated due to demand for dollars from importers and corporate buyers. They said that due to coronavirus threat the currency market was also seen some depreciation in rupee value.

    The exchange rate in open market the rupee value was remained unchanged. The buying and selling of dollar was recorded at Rs154.10/Rs154.40, same previous day’s closing level, in cash ready market.

  • Textile industry demands clearance of raw material stopped on coronavirus threat

    Textile industry demands clearance of raw material stopped on coronavirus threat

    KARACHI: Textile industry has demanded the government authorities of early clearance of raw material consignments that are stuck up due to measures taken for prevention of coronavirus.

    Zubair Motiwala, Patron of SITE Association of Industry, in a statement on Tuesday appealed the government to allow early clearance of imports consignments containing dyes and chemicals, from China.

    He said that Pakistan’s imports from China are of $12 billion and mostly comprise of dyes and chemicals which are basic raw material for textile sector – the biggest foreign exchange earning sector in Pakistan.

    Motiwala said that It is a known fact that prices of raw material area increasing due to consignments stuck up at Chinese ports and other alternative suppliers such as Korea, Taiwan and India have now either stopped supplying or quoting 30 to 35 pc higher prices.

    Members are complaining that it is becoming difficult to continue production activities due to shortage of raw material, while prices in the local market have gone up by 50-100 percent.

    He further added that in such scenario, opportunity of increasing exports has now become the question of survival for local textile industries.

    Everyone is talking about increasing exports from the country, but the fact is that production cannot be undertaken in the absence of raw material. Value-added textile sector requires ample quantity of dyes and chemicals to complete processing & finishing of fabric.

    It is obvious that no one keeps the inventory for more than 1 or 2 months due to cash flow constraints as large amount of exporters are stuck up in sales tax refunds.

    Also every item doesn’t utilize simultaneously and sometime, one item is required and some other item available in stock is not needed.

    “Therefore, it is feared that exports, instead of increasing with the kind of advantage, it might be the other way round as it is in common knowledge that orders are based on season to season at least for six months in advance and if this price hike continues and consignments are not timely cleared, production would suffer and industries would not be able to complete their orders on time and as per commitment,” Motiwala remarked.

    He requested Prime Minister, Finance Minister and Commerce Minister to foresee this situation and take urgent measures, as import consignments are lying on Chinese ports and Pakistan Embassy and Consulate in China be directed to work in this regard.

    If the situation prevails, other countries would increase raw material prices further. The govt. should immediately withdraw all the levies and front loading with immediate effect so that there should be minimum burden on cost escalation on the products which is being sold earlier to this crisis.

  • Oil prices fall by 15% since coronavirus outbreak

    Oil prices fall by 15% since coronavirus outbreak

    KARACHI: The international oil prices have fallen by around 15 percent since the outbreak of deadly coronavirus, analysts at Arif Habib Limited said on Tuesday.

    They said that the coronavirus epidemic in China has battered oil prices as WTI, Brent and Arab Light have declined by 15.8 percent, 16.3 percent and 14.5 percent, respectively since December 2019.

    To recall, China is the world’s largest importer of oil and second largest consumer of oil (15 percent of total demand).

    Any slowdown/extended slowdown in Chinese economic growth may lead to disruption in global oil markets with higher than expected inventories, which may trigger upwards sticky oil prices in the short run.

    In accordance with the situation and expected slowdown in the Chinese economy, OPEC lowered its oil demand by 230k bpd, while the US EIA, revised down its global oil demand forecast by 378k bpd.

    The situation may get worse as the outbreak is spreading globally with emerging cases in South Korea, Europe (Italy), Iran, Afghanistan and Israel.

    Pertinently, several countries have temporarily closed borders with the affected countries, including Pakistan, which closed its border with Iran.

    They believe oil prices in the short term will be dependent on the virus updates from China including new registered cases and death tolls. Moreover, spread of the virus to other countries and measures for combat are also expected to influence oil prices.

    They analyzed the impact of oil prices on Pakistan’s macro-economy and listed sectors.

  • Taxpayers can make payment in installments

    Taxpayers can make payment in installments

    KARACHI: Taxpayers have option to pay due liability in installments on explaining plausible reasons to the concerned Commissioner of Inland Revenue.

    Sources in Federal Board of Revenue (FBR) Monday said that the tax payable by a taxpayer on the taxable income of the taxpayer including the tax payable under section 113 or 113A of Income Tax Ordinance, 2001 for a tax year shall be due on the due date for furnishing the taxpayer’s return of income for that year.

    However, where any tax is payable under an assessment order or an amended assessment order or any other order issued by the commissioner under the Ordinance, a notice shall be served upon the taxpayer in the prescribed form specifying the amount payable and thereupon the sum so specified shall be paid within thirty days from the date of service of the notice:

    Provided that the due date for payment of tax payable under sub- section (7) of section 147 shall be the date specified in sub-section (5) or sub-section (5A) or first proviso to sub-section (5B) of section 147.

    “Upon written application by a taxpayer, the Commissioner may, where good cause is shown, grant the taxpayer an extension of time for payment of tax due under sub-section (2) or allow the taxpayer to pay such tax in instalments of equal or varying amounts as the Commissioner may determine having regard to the circumstances of the case.”

    Where a taxpayer is permitted to pay tax by instalments and the taxpayer defaults in payment of any instalments, the whole balance of the tax outstanding shall become immediately payable.

    The grant of an extension of time to pay tax due or the grant of permission to pay tax due by instalments shall not preclude the liability for default surcharge arising under section 205 from the due date of the tax under sub-section (2).

  • Centralized repository to facilitate effective settlement of insurance claims: SECP

    Centralized repository to facilitate effective settlement of insurance claims: SECP

    KARACHI: Pakistan’s first ever centralized information repository has been launched on Monday for life insurance sector.

    This will complement government’s objectives of providing ease of doing business and enhanced consumer protection.

    Aamir Khan, Chairman, Securities and Exchange Commission of Pakistan (SECP) in his keynote address said that the initiative would augment technological advancement in the insurance industry while ensure facilitation and protection of policyholders.

    He hoped that it would facilitate effective settlement of insurance claims and cause reduction in mis-selling and policy churning.

    “We, at the SECP are very mindful of our responsibilities as a progressive regulator that needs to help the industry to develop and grow, and simultaneously, create linkages between its regulated sectors and the real economy”, Khan said and underlined that the centralized documentation of data in digitalized form is critical to achieving transparency, speed and cost effectiveness.

    He informed participants that the SECP has already embarked upon a transformational journey of digitalization through its recently launched initiative – ‘Leading Efficiency through Automated Prowess (LEAP).

    This will enable 100 percent end-to-end automation, complete integration with multiple government agencies for one-time registration, and digitalization and storage of financial statements of companies through introduction of Extensible Business Reporting Language (XBRL).

    The repository that will function under the regulatory impetus of SECP will hold critical data of life insurance policies electronically.

    Shaukat Hussain, Commissioner Insurance, Moin M. Fudda, Chairman, Centralized Depository Company (CDC), Badiuddin Akber, Chief Executive Officer, CDC, senior officials from SECP, CDC, CEOs and representatives of life insurers, non-life insurers, and relevant stakeholders attended the launching ceremony.

    The Centralized Repository will enable electronic storage of life insurance and family takaful policies and serve as central point for critical policyholder related information.

    It will aid the underwriting function of the insurers to determine the appropriateness of an insurance policy, the level of insurance coverage and affordability of the insurance policy for the customer which will ultimately result in need-based selling and substantial reduction in mis-selling.

  • Coronavirus threat: KCCI demands waiver of demurrage, detention charges on Chinese consignments

    Coronavirus threat: KCCI demands waiver of demurrage, detention charges on Chinese consignments

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has demanded the government authorities to waive demurrage and detention charges on Chinese consignments that are stopped due to threat of coronavirus.

    KCCI President Agha Shahab Ahmed Khan in a statement urged the Ministry of Maritime Affairs, Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) to come up with some kind of a ‘Special Policy’ to save the importers of various goods and commodities from suffering severe losses due to ban imposed on imports from China because of the outbreak of corona virus, COVID-19.

    He urged the relevant authority to issues notification in which the port authorities and all terminal operators must be advised to refrain from imposing demurrage and detention charges on those consignments which have already arrived at the Pakistani ports from China but were not being cleared.

    “Any demurrage or detention charges already applied on such consignments must immediately be waived off which would certainly be widely welcomed by the business community”, he added.

    He said that many importers, while seeking KCCI’s assistance, informed that their imported consignments from China have been put on hold at the ports in order to prevent the outbreak of deadly corona virus in Pakistan which has terribly affected capital of Hubei province, Wuhan and resulted in hundreds casualties so far besides spreading further in more than 20 countries.

    “Many import related documents have also not been received by relevant importers as no parcels were arriving from China and other affected countries, making it impossible for the importers to timely fulfill all the documentation formalities which are required for clearance of imported goods hence their consignments remain blocked at the ports and are resulting in additional demurrage and detention charges”, he said.

    “We fully understand the sensitivity of the issue and support the government’s moves to save Pakistan from the outbreak of the COVID-19 but the importers should not be penalized and relief has to be provided to the perturbed traders by waiving the demurrage and detention charges.”

    He said that out of a total bilateral trade of around US$12 billion between Pakistan and China, around US$6 billion has been transacted so far but the downfall in trade would certainly appear by the end of current fiscal year and US$12 billion mark will not be achieved due to complete suspension of trade between the two countries.

    “The outbreak of corona virus is an opportunity for the local industry as we have to look into the possibility of what we can produce on our own which was previously being imported from China prior to suspension of trade”, he added.

    He stressed that the lethal virus has been rapidly spreading in many countries around the world including some countries bordering Pakistan hence, the government will have to take stringent measures to save our country from the eruption of deadly virus.

    He hoped that the relevant departments would realize the gravity of the situation and relief will soon be provided to the importers as soon as possible by urging the port authorities not to demand any demurrage and detention charges from those importers whose goods were arriving from China which would certainly be welcomed.

  • SBP directs banks to collect Hajj applications on coming weekly holidays

    SBP directs banks to collect Hajj applications on coming weekly holidays

    KARACHI: State Bank of Pakistan (SBP) on Monday directed banks to collect Hajj applications and other dues on coming weekly holidays on Saturday February 29 and Sunday March 01.

    A statement issued by the SBP stated that in order to facilitate the intending pilgrims to deposit application forms along with dues for Hajj 2020, 13 authorized banks had been directed to keep all their designated branches open from 10:00 a.m. to 2:30 p.m. on Saturday and Sunday (i.e. 29-02-2020 and 01-03-2020) throughout the country.

    Earlier, in terms of Hajj Policy 2020, the Ministry of Religious Affairs & Interfaith Harmony has authorized 13 banks (viz. National Bank of Pakistan, Habib Bank, United Bank, MCB Bank, Allied Bank, Bank of Punjab, Bank Alfalah, Zarai Taraqiati Bank, Faysal Bank, Askari Bank, Bank Al-Habib, Habib Metropolitan Bank and Meezan Bank) to collect application forms along with dues from intending pilgrims for Hajj 2020 w.e.f. February 25, 2020 till March 06, 2020 throughout the country.