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Author: Mrs. Anjum Shahnawaz

  • ECC approves Rs700 million for Postal Life Insurance

    ECC approves Rs700 million for Postal Life Insurance

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved an amount of Rs700 million as initial paid up capital for Postal Life Insurance.

    A statement said that In order to register Postal Life Insurance as Public Limited Company, ECC approved an amount of Rs 700 million as initial paid up capital.

    The amount shall be allocated by the Finance Division and transferred to the proposed Postal Life Insurance Company.

    After the approval Postal Life Insurance shall fall under the regulatory frame work of the Securities and Exchange Commission of Pakistan.

    Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting of Economic Coordination Committee (ECC) of the Cabinet here at the Cabinet Division.

    ECC also approved the Creation of Digital Media Wing in the Ministry of Information and Broadcasting. The purpose of the Wing shall be to effectively counter the fake/libelous news and highlight the development agenda of the government.

    The ECC directed the MoI&B to move ahead for the creation of the wing by using its already available resources.

    ECC also approved the amendment in SRO 192(1)/ 2019 dated 11-02-2019 extending exemption from regulatory duty to export oriented units.

    ECC considered and approved the grant of amount Rs 153.25million from the budget of the Ministry of Finance, as technical supplementary grant for the Ministry of Interior, to be given through the Office of the Deputy Commissioner of Islamabad, for compensation to the victims of suicidal attack at District courts F-8 Islamabad on 03-3-2014.

    Finance Division supported the proposal in compliance with the orders of the Honorable Supreme Court of Pakistan.

    ECC gave approval to the transfer of funds amounting to Rs 31.5 million in equivalent foreign exchange from the Ministry of Interior to the Ministry of Defence as Technical Supplementary Grant for the logistic support for the maintenance of Cessna aircrafts.

    ECC was attended by Federal Ministers for National Food Security and Research, Railways, Energy, Privatization and other senior officials of the different Ministries.

  • Stock market stages recovery of 475 points

    Stock market stages recovery of 475 points

    KARACHI: The stock market made recovery of 475 points on Tuesday as stocks of banking sector registered gain during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,884 points as against 40,409 points showing an increase of 475 points.

    Analysts said that the market staged a recovery after a major draw down of 1222 points yesterday and largely remained positive throughout the session barring -60 points earlier in the session.

    Overall, the Index moved up by 544 points and closed the session at +475 points.

    Banking sector played an important role in market recovery MCB’s result announcement further helped the other banking sector stocks to post gains.

    Resultantly, Banking sector posted trading volumes of 27.1 million shares, followed by Cement (21.7 million) and O&GMCs (19.9 million).

    Among scrips, BOP topped the charts with 16.4 million shares, followed by HASCOL (15.7 million) and UNITY (8.3 million).

    Sectors contributing to the performance include Banks (+217 points), Power (+83 points), Fertilizer (+62 points), Cement (+44 points) and O&GMCs (+33 points).

    Volumes declined from 203.3 million shares to 146.1 million shares (-28 percent DOD). Average traded value also declined by 33 percent to reach US$ 39.7 million as against US$ 59.2 million.

    Stocks that contributed significantly to the volumes include BOP, HASCOL, UNITY, KEL and DGKC, which formed 38 percent of total volumes.

    Stocks that contributed positively include MCB (+84 points), HUBC (+67 points), ENGRO (+47 points), UBL (+44 points) and BAHL (+30 points). Stocks that contributed negatively include PAKT (-27 points), PPL (-17 points), HBL (-8 points), JLICL (-5 points), and INDU (-3 points).

  • FPCCI demands stop proposed gas price hike

    FPCCI demands stop proposed gas price hike

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday demanded the Prime Minister to stop implementation of proposed hike in gas tariff.

    FPCCI President Mian Anjum Nisar in a statement strongly criticized the move to increase gas prices and urged Prime Minister Imran Khan to immediately stop the implementation of the proposal.

    He said that the proposal of the Ministry of Petroleum would seriously affect the industrial sector, especially exporters and value-added sector would be hit hard.

    President FPCCI has expressed his apprehension that accelerated gas prices will also affect the cost of energy as well as the cost of production of exportable goods.

    It will also hamper the competitiveness of the industry in International market, where industry is already facing severe problem on different fronts.

    He further added that this hike will increased the misery of the common people who are already facing 14.6 per cent headline inflationary pressures and lower purchasing power due to dollar Rupee parity as well as the commercial and industrial consumer would not be able to absorb it.

    Gas prices have already increased 31 percent last year. Earlier OGRA proposed 214 percent hike in gas prices however; the ECC had deferred the proposal to increase the gas prices during the last meeting.

    Mian Anjum Nisar President Federation of Pakistan Chambers of Commerce and Industry also stated that the economy of Pakistan is not in a position to absorb such sudden and large shocks.

    Pakistan’s exports are not expanding and are still below targets. At this stage increase in energy cost will definitely further destabilize economic environment which is already under pressure.

    Pakistan need to maintain price stability particularly for manufacturing and export- oriented sector so that economy remain on track for which present government is struggling hard.

    President FPCCI strongly urged the government to withdraw the proposal of the increase in Gas tariff otherwise; industry will face closing down which will ultimately result in unemployment and labour unrest.

  • Karachi Chamber welcomes ease in US, UK travel advisory for Pakistan

    Karachi Chamber welcomes ease in US, UK travel advisory for Pakistan

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Tuesday welcomed the decision of United States and United Kingdom for easing travel advisory for Pakistan.

    KCCI president Agha Shahab Ahmed Khan in a statement said that the Karachi Chamber has been widely demanding relaxation in travel advisory and it was really heartening to see that the travel advisories have finally been eased by both these countries which would surely bring the people, particularly the business communities, more close to each other.

    “During the visit of every single diplomat throughout year, Chairman Businessmen Group Siraj Teli and all Office Bearers have been vocally urging the world community to ease travel advisories for Pakistan particularly Karachi.

    “We are very delighted to see that US and UK have relaxed their travel advisories and hope that more such announcements will be made by other important countries, particularly those from the European region as the security situation in Pakistan is much better now and it is a safe and secure destination for foreign investors and visitors,” he added in a statement issued.

    Agha Shahab, while terming it ‘a step in the right direction’, commented that this clearly indicates that the US and UK have realized the improved security situation in Pakistan thanks to the untiring efforts made by Law Enforcing Agencies who struggled really hard to cleanse Pakistan from the menace of terrorism and lawlessness.

    “After this positive news, the business and industrial community of Karachi expects improved trade and investment ties with the businessmen and investors from US and UK which was badly needed to deal with the ongoing economic crises being faced by the country,” he said while urging the business communities of the two major economies to come forward and visit Pakistan which offers immense trade and investment opportunities in almost all the sectors of the economy.

    He said that foreign investors from US and UK looking forward to invest or undertake joint venture in Pakistan must at least pay one visit to Karachi in order to see the ground realities themselves instead of relying on media reports which are usually exaggerated to create hype.

    Karachi is the financial, industrial and commercial hub of Pakistan contributing more than 70 percent revenue to the national exchequer.

  • Rupee gains 10 paisas against dollar on inflows

    Rupee gains 10 paisas against dollar on inflows

    KARACHI: The Pak Rupee gained 10 paisas against dollar on Tuesday owing to inflows and lackluster demand for import payment.

    The rupee ended Rs154.41 to the dollar from previous day’s closing of Rs154.51 in interbank foreign exchange market.

    Currency dealers said that the market witnessed inflows under the heads of workers’ remittances and export receipts. On the other hand due to coronavirus threat the importers are reluctant to purchase dollars for Chinese imports.

    The foreign currency market was initiated in the range of Rs154.51 and Rs154.56. The market recorded day high of Rs154.51 and low of Rs154.41 and closed at the same level.

    The exchange rate in open market witnessed no change in the local currency. The buying and selling of the dollar was recorded at Rs154.30/Rs154.60, the same previous day’s closing, in cash ready market.

  • MCB Bank declares 14% growth in annual net profit

    MCB Bank declares 14% growth in annual net profit

    KARACHI: MCB Bank Limited has declared 14 percent growth in annual profit for calendar year 2019 owing to significant increase in net mark-up income.

    According to financial results for calendar year 2019 released on Tuesday, the bank declared Rs24 billion after tax profit as compared with Rs21 billion profit in the preceding year.

    The bank also announced Rs20.23 as earning per share for the year as compared with EPS of 18.02 declared in the last year.

    The net interest income of the bank registered 23 percent increase to Rs56.61 billion in calendar year 2019 as compared with Rs46 billion in the preceding year.

    However, total non-markup income slightly fell to Rs16.6 billion in 2019 as compared with Rs17.19 billion in the last year.

    Therefore, the total income of the bank rose to Rs76.29 billion in 2019 as compared with Rs63.2 billion in the preceding year.

    Operating expenses of the bank were remained flat at Rs32.6 billion in 2019 as compared with Rs32.1 billion in preceding year.

    The bank contributed income tax to the tune of Rs16.12 billion in the calendar year 2019 as compared with Rs10.7 billion in the preceding year, posting a significant increase of 51 percent.

  • Oil sales fall by 10% on slow economic activity

    Oil sales fall by 10% on slow economic activity

    KARACHI: The domestic oil sales have declined by 10 percent during first seven months (July – January) 2019/2020 owing to slow economic activity.

    Analysts at Topline Securities on Tuesday said that the oil sales slipped to 10,139,000 tons during first seven months of the current fiscal year showing decline of 10 percent.

    The oil consumption in January 2020 fell by 13 percent year on year, where drop in sales was largely driven by 40 percent lower furnace oil sales due to government policy of moving away from FO-based power generation and 11 percent yoy decline in high speed diesel volumes amidst slow economic activity, particularly in the agriculture space.

    However, on a sequential basis, oil sales witnessed limited decline of 2 percent month on month, supported by 88 percent MoM higher furnace oil offtake given government allowing partial resumption of FO-based power plants to support the local refineries and possible exports by Byco Petroleum.

    High Speed Diesel sales were down by 13 percent Month on Month in January 2020, while motor spirit volumes declined by five percent MoM.

    Pakistan State Oil sales declined by 16 percent YoY and 10 percent MoM in January 2020, however, during first seven months of current fiscal year sales remain 6 percent YoY higher.

  • FBR conducts audit of all refund cases

    FBR conducts audit of all refund cases

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that the tax machinery conducts audit of all refund cases.

    “It is baseless to assume that FBR does not conduct the scrutiny. The processing of the case may take time but it is certain that all refund cases are audited,” the FBR said.

    In this regard, the FBR issued a clarification on the news aired on electronic media about the issuance of fake refunds.

    FBR has explained that two processes are being used to deal with refund cases.

    The first is the processing of refunds through automated system for the exporters.

    In this process, the audit of the refund is conducted after the issuance of refunds.

    The other system of refund issuance has been devised for the taxpayers not associated with the export sector.

    The refunds issued through this mode are called the “carry forward refunds.” Such refunds are issued once in a year. The audit is conducted before the issuance of such refunds.

    FBR has clarified that taxpayers involved in presenting the wrong invoices are dealt strictly and recovery is made from them.

    Moreover, penalty and default surcharge is also imposed to curb this practice.

    Sometimes, the audit process of refunds takes longer period of time which may cause problem of liquidity for the exporter, in case of delayed issuance of refunds.

    To avert liquidity crunch for the businesses, the refunds are issued and the scrutiny is conducted afterwards.

    There are certain inbuilt checks within the system to match the input claim by one person with output claim by another person.

    To avoid revenue loss, FBR has almost resolved the issue of fake invoices. Sometimes, it becomes a little cumbersome and lengthy to check the flying invoices but the scrutiny is conducted in all the cases. FBR has computer analytics system of CREST.

  • Bank holiday announced on Kashmir Day

    Bank holiday announced on Kashmir Day

    KARACHI, February 4, 2020 – In a significant move reflecting solidarity with Kashmiris, the State Bank of Pakistan (SBP) has declared a holiday on February 5, 2020, on the occasion of Kashmir Day.

    (more…)
  • Income tax return filing hit record high of 2.78 million

    Income tax return filing hit record high of 2.78 million

    ISLAMABAD: The income tax return filing of tax year 2018 has reached to record high of 2.785 million by February 02, 2020, according to latest Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR) on Monday.

    The FBR sources said that the actual number of return filers is higher than the persons appeared on the ATL. They said that those people filing return without penalty amount would not qualify for the ATL.

    The record increase in return filing has been attributed to the amendment to Income Tax Ordinance, 2001 through Finance Act, 2019.

    In the last budget 2019/2020 a new Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which persons not appearing on ATL would liable to pay 100 percent more withholding tax on certain transactions.

    The ATL for tax year 2018 issued on March 01, 2019 in which 1.59 million names were appeared of those taxpayer, who filed their returns by due date.

    However, later the FBR granted extension in date for filing returns due to introduction of a tax amnesty scheme.

    The extension for filing income tax returns for tax year 2018 was granted up to August 09, 2019.

    The return filing up to August 09, 2019 for tax year 2018 jumped up to 2.5 million from 1.59 million returns, which were part of the first ATL issued March 01, 2019.

    The insertion of Tenth Schedule to Income Tax Ordinance, 2001 speed up the return filing by taxpayers in order to avoid higher tax rate on certain transactions.

    Previously, people filing their annual income tax returns after due date were not allowed to appear on the ATL. However, another provision was added to the main statute under which persons by paying penalty can include their name to ATL.

    Therefore, since August 09, 2019 the FBR received around 285,000 tax returns for tax year 2018 till February 02, 2020.

    The FBR will issue ATL for tax year 2019 on March 01, 2020 and till then the prevailing ATL will be applicable for the purpose of withholding tax rates on certain transactions.