Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Salary tax potential much higher than existing collection: FBR

    Salary tax potential much higher than existing collection: FBR

    KARACHI: Federal Board of Revenue (FBR) has said that income tax from salary is an important source of revenue the world over. The real potential is much higher than the present collection, according to an official document.

    Monitoring of withholding tax on salaries is a regular feature. Nevertheless, there is scope for further improvement in view of great potential for payment of considerable perquisites, generally undisclosed.

    All payments made to the employees have tax implications. Strong and well coordinated communication with the employers is needed for promoting greater compliance in a supportive mode with a friendly interface between FBR and the stakeholders.

    The Commissioner can advise to look into the following aspects through systems of large employers like Pakistan Steel, PIA, ICI , CAA& Banks etc :-

    — Comprehensive review of the statements, filed by the Employers;

    — Sector-wise salary surveys regarding trends of pay and allowances in different sectors;

    — Salary structure analysis of major employers;

    — Random selection of cases of senior executives of various corporate sectors including banking, oil and telecom, receiving huge salaries and perquisites, while devising monitoring plan of an organization;

    — Payments in the following heads should be reviewed along with relevant documents for ensuring proper deduction:

    — CBA agreement.

    — Appointment letter / contract (job letter).

    — Contribution to Provident Fund/Annuity.

    — Re-imbursement of medical, petrol, and entertainment.

    — Cars provided by the employers and expenditure on their acquisition and maintenance and Concessional loan facility provided by the company.

    — House accommodation – furnished/unfurnished.

    — Club bills / Hotel bills/Club subscriptions.

    — Utility bills of employees paid by the employer.

    — Free household items like Air-Conditioner, Fridge and furniture items provided.

    — Concessional travelling/Leave Fair Assistance.

    — Stock options offered and connected arrangements for payments and deduction of tax.

    — Formula of deduction of tax and mechanism for recording thereof in the books of accounts and deposit of tax.

    — Receipts of Capital nature which fall under the head “salary”.

    — Compensation for redundancy or loss of employment and golden handshake payments.

    — Scholarships/ tuition fee of children paid by the employer.

    — Liabilities accounted for by the employer especially when new executives are hired, who owe liability to the ex-employer.

    — Concessional mark-up/free loans provided, especially, in the cases of banks and financial institutions.

    — Provision of services of Mali, Chowkidar, security system, driver and cook etc. or re-imbursement of pay of servants.

    — Provision of free electricity, gas, telephone, travel and other products by the employers who deal in such business.

    — Commission and rewards including sales targets achievements and other rewards.

    — Services hired from abroad.

    — Cash medical assistance/hospitalization paid to the employees.

    — Any other allowance or perquisite provided by the employer paid in cash or in any other manner.

    — Salary payments chargeable to Withholding Tax under section 149 of the Ordinance as shown in the Annual Statements should match with the amount of expenses under this head, charged to manufacturing and P&L Account/Audited Statement of Accounts. In case of any difference, the Withholding Tax Agent may be asked to reconcile and explain the reasons for not withholding such tax.

    — Meal and entertainment claimed as business expenditure that may actually be personal, non-deductible.

    — In closely held companies and family owned enterprises, unreasonable compensation to Directors and employees should be checked with reference to work done and contribution made.

    — In the cases of Banks, actual deduction of tax from payment of salary to Branch staff and its deposit should be confirmed with reference to the separate challan for each such deposit. Payments of taxes deducted under various Sections through combined challan always create confusion. It should be ensured that each type of payment is duly supported by the relevant tax deposit challan. Misuse of one challan for various deposits is reported and should be adequately checked.

    The Department should conduct System audit of Mega corporations / large companies in public and private sectors and should be replicated / shared in other cases on national basis.

    It may be re-emphasized that non-cash perquisites are usually not declared in the statements. It is imperative to study terms and conditions of service provided in the service contracts/appointment letters.

    Non-deduction of tax on such perquisites is a common practice observed in many cases for which cognizance, as per law, has to be taken.

  • Income of corporate executives, directors needs aggressive monitoring

    Income of corporate executives, directors needs aggressive monitoring

    KARACHI: The field offices of Federal Board of Revenue (FBR) have been advised to focus on aggressive monitoring on corporate executives / directors with income above certain levels.

    “Their [executives/directors] tax accounts are usually kept separate and not shared with even ordinary management,” according to an official document related to withholding taxes said.

    “Enforcement should be ramped up in their cases for detecting the avoidance.”

    Some sort of trigger management should also be exercised to select such cases with higher probability of producing additional revenue.

    It said that there are certain businesses which are involved in high cash transactions.

    “Cash withdrawals from banks could be one lead along with un-documented receivables or payables.”

    Their reporting in the statements may not be complete. Details of vendors/suppliers are not provided either.

    Such cases should be included in the risk for monitoring. Poor record keepers placing low priority on improving the documentation should be on priority of monitoring.

    Basically, monitoring of withholding taxes is analysis of filed Statements and enforcement from non-filers.

    Formal selection of case for monitoring of Withholding Taxes may not be required.

    Yet, there are numerous aspects that can be considered for initiating the monitoring work.

    The following factors are important in this regard:-

    1. Incomplete or sloppy Statements;

    2. Habitual non-filers/short filers;

    3. Missing part of the Statements (where tax was not deducted);

    4. Incorrect Statements/mathematical errors;

    5. Exempt cases like Non-residents etc;

    6. Matching of information from various documents/ sources;

    7. Discrepancies in Income Tax; Sales Tax Statements and Returns;

    8. Statistical analysis for policy formulation and Sectoral studies;

    9. Un-desirable activities like continuous under reporting etc;

    10. Monitoring on the basis of case studies and research works;

    11. Statistical information collected to update the data sources;

    12. Selection on random basis either electronically or manually;

    13. Discrepancy in Withholding Taxes Statements and Annual Statements of Accounts;

    14. Monitoring consequential to special enquiries, reports and judgments, etc;

    15. Selection of specific cases e.g. large taxpayers and or other revenue potential Withholding Taxes Agents likely to yield substantial revenue for the government;

    16. Risk based analysis of statements and other economic information;

    17. Issue based monitoring;

    18. Any other method or selection as decided by the concerned Commissioner in the individual cases or by the Board about specific classes.

  • Gratuity to be treated as salary for tax matters

    Gratuity to be treated as salary for tax matters

    KARACHI: Federal Board of Revenue (FBR) has said that gratuity received by an employee during his lifetime shall be treated as salary income and will be subject to tax under Income Tax Ordinance, 2001.

    Officials at the FBR said that where any gratuity is paid to an employee during his life-time, the gratuity shall be treated as salary paid to the employee for the purposes of this Ordinance.

    They further said that if a gratuity fund for any reason ceases to be an approved gratuity fund, the trustees of the fund shall nevertheless remain liable to tax on any gratuity paid to any employee.

    Where any contributions by an employer (including the interest thereon, if any,) are repaid to the employer, the amount so repaid shall be deemed for the purposes of tax to be the income of the employer of the income year in which they are so repaid.

  • Fiscal reforms to help Pakistan generate funding to meet SDGs targets: IMF official

    Fiscal reforms to help Pakistan generate funding to meet SDGs targets: IMF official

    KARACHI: The ongoing fiscal reform in Pakistan will help the country to generate funding to meet Sustainable Development Goals (SDGs) targets under the UN 2030 agenda, said Athanasios Arvanitis, Deputy Director of the International Monetary Fund (IMF).

    Referring to the IMF program with Pakistan, Arvanitis remarked that it is important for the government to focus on meeting the Sustainable Development Goals (SDGs) under the UN’s 2030 Agenda.

    He noted that ongoing fiscal reforms will not only put Pakistan’s public debt path on a sustainable footing but also build the foundation for providing crucial funding to meet these targets.

    He was addressing a seminar on ‘Managing Crises in Emerging Markets’ hosted by State Bank of Pakistan (SBP) a day earlier, a press statement issued on Saturday.

    Athanasios Arvanitis highlighted some of the main similarities of crises across emerging markets, notably the role typically played by elevated levels of debt, high public and external deficits, inflexible exchange rates, lack of competitiveness, low saving and investment, and maturity and currency mismatches.

    Despite these similarities, he emphasized that there was no one-size-fits-all model for managing crises. Instead, the IMF focuses on different dimensions while assisting a country in developing a homegrown stabilization program.

    The approach emphasizes the need to diagnose the roots of a country’s crisis, trends and developments in the balance sheets of various economic agents and their interconnectedness, and country-specific dynamics that affect the political economy of reforms. In terms of designing stabilization programs, Arvanitis stressed the importance of country ownership and measures to provide support for vulnerable segments of the population.

    He also drew parallels for Pakistan from the experiences of managing crises in other emerging countries.

    Referring to the IMF program with Pakistan, Arvanitis remarked that it is important for the government to focus on meeting the Sustainable Development Goals (SDGs) under the UN’s 2030 Agenda. He noted that ongoing fiscal reforms will not only put Pakistan’s public debt path on a sustainable footing but also build the foundation for providing crucial funding to meet these targets.

    In his welcoming remarks, the Governor SBP, Dr. Reza Baqir, stated that the objective of holding the seminar was two-fold. First, to demonstrate that, in addition to its mandate of formulating monetary, exchange rate and financial stability policies, SBP endeavors to facilitate constructive debate on economic issues and is open to diverse points of view. Second, to highlight that Pakistan is not unique and there are many other emerging economies that have also faced economic crises and undergone difficult adjustments.

  • Weekly Review: market to remain range bound on political uncertainty, coronavirus concerns

    Weekly Review: market to remain range bound on political uncertainty, coronavirus concerns

    KARACHI: The stock market likely to remain range bound during next week owing to political uncertainty and concerns over coronavirus.

    (more…)
  • FBR asked to suggest measure to eliminate exemptions

    FBR asked to suggest measure to eliminate exemptions

    ISLAMABAD: The ministry of finance has asked Federal Board of Revenue (FBR) to suggest measure to eliminate exemptions and concessions.

    The Finance Division (Budget Wing) of the finance ministry asked the FBR to provide information for development of budget strategy paper 2020-2021 – 2022-2023.

    The finance division asked the FBR to provide information on the key points:

    01. Tax policy over the medium-term including measure to eliminate exemption / concessions.

    02. Planned tax administration reforms to enhance tax-base and improve tax-to-GDP ratio.

    03. Number and types of new sectors, which were out of the tax net, to be added in the tax system.

  • Pak-Turkey agree to strengthen cooperation

    Pak-Turkey agree to strengthen cooperation

    ISLAMABAD: A Joint Statement was issued after 6th session of Pakistan-Turkey High Level Strategic Cooperation Council (HLSCC) titled “Towards An Ever-Closer Strategic Partnership” co-chaired by Prime Minister Imran Khan and President Recep Tayyip Erdogan.

    Reiterating their resolve to transform bilateral fraternal relationship into an ever-expanding, mutually beneficial strategic partnership, Pakistan and Turkey on Friday agreed to further strengthen their cooperation in the areas of trade, energy, defence, infrastructure, transport, communication, agriculture etc.

    Following is the text of the Joint Statement:-

    “Reaffirming the time-tested and unparalleled relations between the peoples and the governments of the two brotherly countries that are embedded in a common historical, religious and cultural heritage;

    Recalling the historic bonds between the peoples of the two regions, manifested through the legendary support provided by the Muslims of South Asia to their Turkish brethren in early 20th century as well as the resolute support provided by Turkey to the people of Pakistan in the face of all challenges;

    Emphasizing that the fraternal relations between Pakistan and Turkey are a sacred trust, that must be protected, nurtured and transmitted onwards to successive generations as common heritage;

    Reiterating their resolve to transform this fraternal relationship into an ever-expanding, mutually beneficial, strategic partnership;
    Underlining the importance and centrality of Turkey-Pakistan High-Level Strategic Cooperation Council (HLSCC) mechanism in expanding Turkey-Pakistan bilateral relations;

    Welcoming the finalization of the landmark Pakistan-Turkey Declaration of Strategic Economic Framework (SEF) and Action Plan;

    Reiterating their common resolve to fight the scourge of terrorism in all its forms and manifestations; underscoring the need for addressing the root causes of terrorism, including by resolving prolonged conflicts and ending situations of foreign occupation; reaffirming that terrorism cannot and should not be associated with any religion, nationality or civilization; and calling for extending the scope of the UNSC 1267 sanctions regime to individuals and entities currently outside its ambit.

    Expressing deep concern at the rising tide of Islamophobia, and condemning in the strongest terms the recent terrorist and racist attacks against Muslims across the globe;

    Recalling all the previous Joint Declarations signed between the two sides under the framework of Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC), and the decisions made therein;

    Having endorsed the outcomes of the meetings of the respective Working Groups of the Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC) held on 13 February 2020 and expressing satisfaction at the progress achieved therein;

    We, the Co-chairs of the 6th Meeting of the Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC), held in Islamabad, on 14 February 2020 have agreed as follows:

    Political Cooperation

    Bilateral institutional mechanisms:

    The High-Level Strategic Cooperation Council (HLSCC) shall continue to be the main political forum that guides bilateral relations in all fields with an effective and expeditious follow-up on its decisions.

    The two sides will review, update and amend, as appropriate, the agreements, protocols and MOUs signed under the umbrella of the HLSCC, in order to streamline their implementation.

    The ongoing consultations between the Ministries of Foreign Affairs of the two countries shall be further intensified and their scope broadened to new areas.

    Fight against terrorism:

    Being victims of terrorism themselves, both countries will continue to cooperate in the fight against this scourge, including through the exchange of best practices and experiences in the area of law enforcement, legislation, capacity building and strengthening of the respective AML/CFT regimes.

    The two sides reiterate their resolve to fight against the Fetullah Gulen Terrorist Organization (FETO). In this regard, Turkey notes with appreciation the measures taken by Pakistan against FETO in line with its domestic law, through inter alia designation of FETO as a terrorist organization, and handing over of all linked schools to the Turkish Maarif Foundation.

    The two sides will continue to cooperate at all international forums, in particular at the United Nations and relevant inter-governmental organizations, to make international counter-terrorism and AML/CFT regimes more transparent, apolitical, non-discriminatory and objective, as well as to counter laws or administrative measures discriminating against and stigmatizing Muslims.

    Islamophobia:

    The two countries will work closely to combat Islamophobia, hate speech, efforts to link terrorism with Islam, and other manifestations of intolerance towards Muslims, including stereotyping of Muslims.

    Joint initiatives will be taken to counter stereotyping and defamation of Islam and Muslims, including incitement to acts of violence, xenophobia, and related intolerance and discrimination against Islam, its religious symbols, and venerated personalities, by means of print, audio-visual & electronic media, the Internet, as well as entertainment media such as movies, videos and digital games.

    The two countries note with appreciation the UN Secretary General’s Strategy and Action Plan on Hate Speech and call for convening a special session of the UN General Assembly on measures to combat Islamophobia;

    Both sides also call for establishment of an observatory under the auspices of OHCHR (or any other relevant UN body/authority) to monitor acts of hate speech, Islamophobia, incitement to hatred and violence against Muslims;

    The two countries call on the UN Human Rights Council to appoint a Special Rapporteur to monitor and combat Islamophobia.

    Regional and international issues:

    The unilateral actions by India on 5 August 2019, as well as the further deteriorating human rights and humanitarian situation in the region as a result of these actions, have further increased regional tensions, and, the situation must, therefore, be urgently addressed for regional as well as global peace and security.

    The two sides underscored need for resolution of all outstanding disputes between Pakistan and India, including the core issue of Jammu & Kashmir through a sustained dialogue process and in accordance with the relevant UN Security Council resolutions. In this regard, Pakistan expresses its deep appreciation for Turkey’s principled stance on the issue as well as its offer for mediation.

    Sustainable peace and stability in Afghanistan can only be achieved through an Afghan-led and Afghan-owned peace process. Turkey appreciates Pakistan’s support to the Afghan peace process. Pakistan supports Turkey’s efforts in achieving these objectives and welcomes the Istanbul Declaration adopted at the Heart of Asia Ministerial Conference, held on 11 December 2019.

    The two countries reiterate full and resolute support for the efforts towards the comprehensive settlement of the Cyprus issue on the basis of the political equality of the two communities on the Island, and with a view to building peace and stability in the Eastern Mediterranean;

    Both sides noted with concern the trend towards exceptionalism and sidelining of non-proliferation objectives. This trend is regarded as detrimental to the credibility of the global non-proliferation regime and, in this regard, also to the strategic stability in South Asia.

    Turkey appreciates Pakistan’s strong commitment to non-proliferation and its adherence to the Nuclear Suppliers Group’s (NSG) Guidelines. Turkey recognizes that as a country with an extensive experience in this area, Pakistan’s membership of the NSG will contribute to the global non-proliferation objectives.

    The United Nations Security Council needs to be made more representative, democratic, transparent, and accountable through comprehensive UN Security Council reform process, based on widest possible consensus. In addition, the need for the implementation of relevant UN Security Council resolutions to resolve the long-standing disputes on the agenda of the Security Council, especially those pertaining to the Muslim Ummah, is underlined;

    Cooperation at the multi-lateral forums:

    The two countries shall continue to cooperate and coordinate at regional and international forums, particularly the United Nations, the Organization of Islamic Cooperation (OIC), the Economic Cooperation Organization (ECO), and the D-8 Organization, etc. through, inter alia, mutual support for joint initiatives, policies and candidacies.

    Other issues:

    The two countries agree to work together bilaterally as well as at the global forums to address threats posed by the adverse effects of climate change; and explore avenues to enhance cooperation with regard to implementation of Sustainable Development Goals (SDGs).

    The two countries shall continue to work closely to address irregular migration and agreed to further develop cooperation on irregular migration and to combat human trafficking and migrant smuggling. Turkey acknowledges and notes with appreciation the measures being taken by Pakistan towards implementation of the Agreement on the Readmission of Persons Residing without Authorization as well as facilitation with regard to provision of documents of irregular migrants exiting from Turkey.

    Security and Defence Cooperation

    The two sides agreed to: further intensify and expand cooperation in the defence and security spheres, including by sourcing their defence purchases from each other to the extent possible, and prioritizing joint research, development and production ventures.

    Work for global disarmament, non-proliferation objectives, safeguarding and strengthening international as well as regional security and promoting strategic stability, including in each other’s respective regions.

    Enhance cooperation between the law enforcement institutions, departments and agencies of both countries through, inter alia, training activities and sharing of best practices, information, experiences and expertise, etc.

    Cooperate through relevant counter-terrorism institutions to develop methods and avenues of cooperation in keeping with the evolving nature of the threat, including in the areas of cyber-terrorism and cyber-crime.

    Energy Cooperation

    Both countries agreed to: Enhance cooperation in human capacity building, especially in the fields of human safety, management of the distribution systems and senior management training modules.

    That the Turkish experience and expertise in human resource development and the expertise would be utilized to upgrade and improved Pakistan’s electricity sectors institutional framework, curriculum, and modules at different levels.

    Cooperate in the capacity building of National Energy Efficiency and Conservation Authority (NEECA) Pakistan.

    Enhance investment opportunities in the power transmission and distribution sectors of Pakistan.
    Enhance cooperation in the field of hydrocarbons, especially in oil and gas exploration and production projects, supply and trade of LPG and petroleum products.

    Creation of a joint monitoring group of the Ministries of Energy that would meet at least once a year to review the progress against the decisions made in this joint working group.

    Trade and Investment

    Both sides reviewed the existing bilateral trade and agreed to increase the level of economic engagement to mobilize the untapped potential for increasing trade and investment.

    Both parties agreed to conclude the FTA with the broader purpose of increased economic and trade integration and as per the “Joint Declaration on Pakistan-Turkey Strategic Relationship for Peace and Prosperity” made during the 5th meeting of Pakistan – Turkey High Level Strategic Cooperation Council held on 22-24 February 2017 under which both sides agreed that the “Free Trade Agreement negotiations will be conducted taking into consideration the sensitivities of economies of both countries.”

    In this regard, both sides have also agreed to conduct and finalize a Joint Scoping Study by end of March, 2020 which would identify potential sectors where opportunities are not being exploited at present. This Study would form the basis for future roadmap of Pakistan Turkey FTA negotiations.

    In the light of above and the progress achieved in the Joint Scoping Study, both sides would consider reinitiating negotiations on Pakistan Turkey FTA in the second quarter of 2020.

    Both sides agreed to encourage their businessmen to establish Joint Ventures in industrial sectors and cooperate in the field of e-commerce.

    Banking & Finance

    Both sides discussed the proposed credit line facility of USD 350 million for implementation of eligible projects in Pakistan. A draft MoU was shared by Pakistan with their counterparts from Turkey. The Turkish side agreed in principle to consider the proposal for extending credit facility of USD 350 million to Government of Pakistan on terms mutually agreed between the two sides. In this regard, both sides agreed to formulate the draft MoU through mutual consultations by the end of May 2020.

    Both sides agreed to encourage their banking sectors to enhance cooperation in banking and finance for promotion of trade and investment between the two countries and facilitate each other for opening bank branches on reciprocal basis.

    Both sides expressed their mutual desire to enhance bilateral cooperation between their Central Banks by initiating a dialogue with a view to finalize an MoU on Technical Cooperation and Renewal of the Currency Swap Agreement (CSA).

    Both sides agreed to enhance technical cooperation in the following fields:

    i. Establishment of a Communication Line Between Credit Guarantee Institutions of Both Countries for SME Promotion.

    ii. Public Debt Management, Cash Management and Risk Management.

    iii. Development of Housing and Housing Finance Industry in Pakistan

    iv. Public Private Partnership Framework

    In this regard, Pakistan shared draft MoUs/Protocols with Turkish side. The Turkish side agreed to respond within due course of time.

    Both sides agreed on knowledge sharing and mutual technical assistance in the areas of Risk Based Approach for Supervision on anti-money laundering, misuse of payment system including new payment method, UNSC sanctions regime, money laundering and terrorist financing typologies.

    Both sides agreed on cooperation for capacity building in the areas of Islamic Banking, Project Management, Taxation, Strategic Planning, Sectoral Planning & Development and other areas of mutual interest.

    Pakistan appreciated the endeavors made by Turkish International Cooperation & Development Agency (TIKA) for implementing small grant projects in social sectors in Pakistan and assured them of continued cooperation.

    Transport and Communications Cooperation

    The two sides agreed to: Implement bilateral agreements in all the modes of transport i.e. Road, Rail, Sea and Air, as a step towards promoting bilateral trade and cooperation between the two countries.

    Devise all required mechanisms for boosting activities in various fields of Communications & Transport Sector including Roads, Rail, Air, Sea, Postal and IT & Telecom to their full potential by utilizing all available options.

    Enhance their commitment in the implementation of bilateral and multilateral Transport Agreements. Turkey appreciated and welcomed Pakistan’s Accession to International UN-TIR Convention 1975 and CMR Convention that has paved the way of harmonizing Pakistan’s procedures and standards with the globally accepted and recognized guaranteeing mechanisms.

    Both sides decided to organize a pilot run of at-least 10 trucks on Islamabad-Tehran-Istanbul (ITI) Road Corridor by June 2020 in consultation with the Transport Associations of both sides under framework of already signed bilateral Road Transport Agreement. This will further boost the bilateral cooperation and trade activities between the two countries.

    Consider participation in potential projects of highways and motorways of Pakistan by Turkish companies on BOT/Public Private Partnership basis.

    Both sides agreed to explore the possibilities of joint cooperation in railway sector mainly in the areas of business planning, management, railway operations, railway infrastructure, IT & Technology in railways, capacity building etc., in addition to manufacturing, rehabilitation, maintenance and repair of locomotives, freight wagons and passenger coaches in the framework of MoU which has been signed at High level Strategic Cooperation Council. This has also been reflected in the Strategic Economic Framework.

    Both sides affirmed to proactively engage in promoting joint cooperation in railways.

    The Turkish side agreed to explore the possibility of Pakistan’s proposal for the renewal of MoU between Pakistan Railways & Union of Chamber of Commerce and Commodity Exchange (TOBB) through its logistic company BALO.

    The two sides recognized the significance of ITI train for integration of the region with Europe and beyond. The two sides agreed to take measures necessary for resumption of ITI train operations at the earliest.

    Pakistani side also encourages Turkish companies to participate in the biding process of potential railways projects funded through own resources and BOT/PPP basis.

    Collaborate in the field of (a) international and local remittance and IT innovative services between Turkey and Pakistan, (b) Express and Logistic Services and E-commerce through Postal Network to enhance cooperation in ICT based postal services between the two countries.

    Cooperate and exchange of experiences and collaboration in Maritime Education & Trainings, Maritime Trade and Port Management. The geographical location of the Izmir Port of Turkey and Karachi Port need to be utilized to harmonize each other’s capabilities for an effective trade and cargo handling.

    Both sides may finalize the Annex-I of the MoU signed in 2015 with a view to further deepen the bilateral ties in the field of aviation. It was further agreed to discuss the traffic rights and frequencies between the two brotherly nations during a forthcoming meeting in Turkey at the invitation of Turkish side as per mutually agreed schedule.

    Culture and Tourism Cooperation

    Both sides agreed to: Organizing the 4th meeting of Turkey-Pakistan Joint Commission on Tourism.

    Promoting the regular exchange of media delegation.

    Cooperation in the area of Information, Culture, Tourism, Film and drama to further strengthen people to people interaction and brotherly relations with the two countries.

    Initiate Joint-ventures in film production and release of feature films in each other market on reciprocal basis.

    Enhance cooperation between TRT and PTVC/PBC in order to exchange programs, information and expertise on a reciprocal basis.

    Cooperation on restoration of cultural heritage.

    Encouraging joint initiatives for the development, planning and standardization of tourism attractions in Pakistan.

    Providing technical information and support on promotion and marketing in the field of tourism.

    Exchange of culture groups and tourist festivals within the framework of reciprocity.

    Exchange expertise in the fields of archaeology as well as conservation and restoration of archaeological and historical sites as well as museums.

    Education Cooperation

    Both sides agreed on the following by taking into account the applicable legislation of both countries within the bounds of financial and personnel resources:

    Promoting exchanges between universities, technical and vocational institutes and other academic institutes and in this regard continue collaboration on higher education scholarships.

    Promoting the relationship between the Technical and Vocational Training Institutes Schools of Turkey and Pakistan through International Sister Schools practice.

    Sharing of curricula and qualification standards to assist Pakistan in standardization and modernization of its TVET sector.

    Exploring possibilities of training Pakistani TVET teachers in Turkey and in Pakistan to ensure Pakistani TVET teachers acquire modern skills and help them improve the quality standards.

    TIKA will be preparing to establish Centre of Excellence of Hospitality and Tourism management in Islamabad in collaboration with NAVTTC

    Cooperate in the field of curriculum development.

    Both sides agreed to finalize the ongoing negotiations on Memorandum of Understanding between Ministry of Federal education and Professional Training and Turkish Maarif Foundation in the second quarter of 2020.

    Both sides agreed to start negotiations in the second quarter of 2020 and finalize as soon as possible the Cooperation Agreement in the field of Education between the Government of the Republic of Turkey and the Government of the Islamic Republic of Pakistan. The date and place of negotiation will be mutually decided through diplomatic channels.

    Follow-Up

    The two leaders decided to establish two more Joint Working Groups on:

    i. Defence Industry

    ii. Agriculture and Water

    The Joint Working Groups of the High-Level Strategic Cooperation Council shall continue their work to develop specific programmes and projects.

    In this regard, the Joint Working Groups, will meet before the meetings of the High-Level Strategic Cooperation Council at least two times in Ankara, in Islamabad, or through video conference.

    The next meeting of the High-Level Strategic Cooperation Council shall be held in Ankara. The dates shall be agreed upon through diplomatic channels.

    Done in Islamabad on 14 February 2020 in English and Turkish languages, both texts being equally authentic.”

  • Stock market sheds 212 points on selling pressure

    Stock market sheds 212 points on selling pressure

    KARACHI: The stock market fell by 212 points on Friday as selling pressure observed during the trading.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,243 points as against 40,455 points showing a decline of 212 points.

    Analysts at Arif Habib Limited said that similar to what was witnessed yesterday. The market opened on a positive note with +139 points and closed the session in red, with -180 points.

    During the sessions, the index lost 361 points in total but last hour of trading saw some recovery with PSO showing some life, as the news related to Sukuk II broke.

    Overall, selling activity was observed across the board barring few scrips in Banking sector. LOTCHEM announced relatively better results, however, concerns over product margins caused Investors to sell positions.

    Despite having two sessions the trading volumes declined significantly over the day. Transport Sector led the volumes on the bourse with 19 million shares, followed by Chemical (15.3 million) and Technology (13.4 million).

    Among scrips, PIBTL realized 17.5 million shares, followed by LOTCHEM (13.1 million) and HASCOL (9.1 million).

    Sectors contributing to the performance include E&P (-49 points), Tobacco (-38 points), Inv Banks (-31 points), O&GMCs (-28 points), Fertilizer (-23 points) and Banks (+32 points).

    Volumes declined from 197.6 million shares to 117.5 million shares (-41 percent DoD). Average traded value declined by 47 percent to reach US$ 24.5 million as against US$ 46 million.

    Stocks that contributed significantly to the volumes include PIBTL, LOTCHEM, HASCOL, AVN and UNITY, which formed 48 percent of total volumes.

    Stocks that contributed positively include HBL (+48 points), MCB (+24 points), MEBL (+14 points), IGIHL (+9 points) and NATF (+4 points). Stocks that contributed negatively include PAKT (-38 points), DAWH (-30 points), POL (-20 points), ENGRO (-19 points), and OGDC (-14 points).

  • Rupee gains 21 paisas against dollar on improved economic indicators

    Rupee gains 21 paisas against dollar on improved economic indicators

    KARACHI: The Pak Rupee made a substantial gain of 21 paisas on Friday against dollar owing to improved economic indicators and increase in foreign exchange reserves.

    The rupee ended at Rs154.17 to the dollar as compared with previous day’s closing of Rs154.38 in interbank foreign exchange market.

    Currency dealers said that improved numbers of foreign inflows helped the rupee to make gain.

    Pakistan’s liquid foreign exchange reserves have increased by $91 million to $18.735 billion by week ended February 07, 2020, State Bank of Pakistan (SBP) said a day earlier.

    The foreign exchange reserves were at $18.644 billion by week ended January 31, 2020.

    The foreign exchange reserves of the central bank increased by $157 million to $12.431 billion by week ended February 07, 2020 as compared with $12.274 billion a week ago.

    However, the foreign exchange reserves held by commercial banks fell by $66 million to $6.304 billion by week ended February 07, 2020 as compared with $6.37 billion a week ago.

    The foreign currency market was initiated in the range of Rs154.32 and Rs154.38. The market recorded day high of Rs154.37 and low of Rs154.15 and closed at Rs154.38.

    The exchange rate in open market was remained unchanged. The buying and selling of the dollar was recorded at Rs154.20/Rs154.50, same previous day’s closing, in cash ready market.