Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Headline inflation contracts in March to 10.2pc

    Headline inflation contracts in March to 10.2pc

    ISLAMABAD: The headline inflation has contracted to 10.2 percent in March 2020 as compared with inflation in the previous month.

    Pakistan Bureau of Statistics (PBS) on Wednesday said that Consumer Price Index (CPI) inflation increased by 10.2 percent on year-on-year basis in March 2020 as compared to an increase of 12.4 percent in the previous month and 8.6 percent in March 2019.

    On month-on-month basis, it increased by 0.04 percent in March 2020 as compared to a decrease of 1.0 percent in the previous month and an increase of 2.0 percent in March 2019.

    The CPI inflation in urban areas increased by 9.3 percent on year-on-year basis in March 2020 as compared to an increase of 11.2 percent in the previous month and 8.9 percent in March 2019.

    On month-on-month basis, it increased by 0.1 percent in March 2020 as compared to a decrease of 1.1 percent in the previous month and an increase of 1.9 percent in March 2019.

    CPI inflation in rural areas increased by 11.7 percent on year-on-year basis in March 2020 as compared to an increase of 14.2 percent in the previous month and 8.2 percent in March 2019.

    On month-on-month basis, it decreased by 0.1 percent in March 2020 as compared to a decrease of 1.0 percent in the previous month and an increase of 2.2 percent in March 2019.

    Sensitive Price Index (SPI) based inflation on YoY increased by 11.8 percent in March 2020 as compared to an increase of 14.5 percent a month earlier and an increase of 10.5 percent in March 2019. On MoM basis, it decreased by 0.3 percent in March 2020 as compared to a decrease of 0.8 percent a month earlier and an increase of 2.1 percent in March 2019.

    Wholesale Price Indicator (WPI) inflation on YoY basis increased by 9.2 percent in March 2020 as compared to an increase of 12.6 percent a month earlier and an increase of 16.6 percent in March 2019.

    WPI inflation on MoM basis it decreased by 0.9 percent in March 2020 as compared to a decrease of 0.8 percent a month earlier and an increase of 2.2 percent in corresponding month of last year i.e. March 2019.

  • Oil consumption falls by 40pc during coronavirus lockdown

    Oil consumption falls by 40pc during coronavirus lockdown

    KARACHI: The oil consumption during last 15 days of the current month has declined by an average 40 percent due to lockdown to control outbreak of coronavirus.

    Analysts at Topline Securities said that the oil consumption has declined to 26,000 tons/day compared to average consumption of 46,000 tons/day, which is due to the lockdowns announced by the provinces to control the outbreak of Covid-19.

    Due to Covid-19 outbreak, Oil sales for March-2020 are expected to decline by 33 percent YoY (and 5 percent MoM) largely driven by declines in High Speed Diesel (HSD) and Furnace Oil (FO) volumes of 31 percent YoY and 62 percent YoY, respectively.

    Ex-FO performance did not fare well either as 29 percent YoY decline is likely. The slight uptick in FO volumes witnessed in Jan-2020 has quickly disappeared with declines of 33 percent MoM and 51 percent MoM in Feb-2020 and Mar-2020, respectively.

    During 9MFY20, overall volumes went down by 13 percent YoY (ex FO 8 percent) due to overall economic slowdown and impact of Covid-19.

    PSO sales are likely to decline the most by 46 percent YoY. FO volumes are expected to decline by 88 percent YoY, HSD volumes by 34 percent YoY and MS volumes by 18 percent YoY.

    HASCOL volumes are likely to decline by 35 percent YoY, but are expected to improve by 11 percent MoM.

    APL and SHEL volumes are expected to decline by 30 percent YoY and 28 percent YoY, respectively during the month.

  • Share market gains over 1200 points on tax relief reports

    Share market gains over 1200 points on tax relief reports

    KARACHI: The share market gained over 1,200 points on Tuesday owing to reports of tax relief announced by the government.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 29,231 points as against 28,023 points showing an increase of 1208 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today with 62 points and did not see back since then.

    The ascent continued till 1311 points in the benchmark index and closed the session +1208 points.

    The overriding factor that helped investors take a positive view on the market seems to be weakening selling pressure from Foreign Investors as well as the recent announcements on tax relief by the Government that include select relief on account of custom duty, additional duties and GST.

    Also the prospect of end of lock down, as April begins, boosted investor confidence to take a positive view on equities. Cement sector led the volumes with 51.8 million shares, followed by O&GMCs (31.5 million) and Power (23.4 million).

    Among scrips, HASCOL posted trading volumes of 25.8 million shares, followed by MLCF (19 million) and KEL (16.7 million).

    Sectors contributing to the performance include Banks (+339 points), Fertilizer (+161 points), E&P (+125 points), Power (+117 points) Cement (+109 points).

    Volumes increased from 159.5 million shares to 221.8 million shares (+39 percent DoD). Average traded value also increased by 74 percent to reach US$ 44.1 million as against US$ 25.3 million.

    Stocks that contributed significantly to the volumes include HASCOL, MLCF, KEL, OGDC and UNITY, which formed 39 percent of total volumes.

    Stocks that contributed positively to the index include ENGRO (+90 points), HUBC (+84 points), MCB (+78 points), UBL (+76 points) and HBL (+55 points). Stocks that contributed negatively include MUREB (-3 points), DCR (-2 points), IDYM (-2 points), JLICL (-1 points), and JDWS (-1 points).

  • FBR asks terminal operators to allow 15-day free time for imported cargo

    FBR asks terminal operators to allow 15-day free time for imported cargo

    The Federal Board of Revenue (FBR) has urged terminal operators to provide an additional 15-day free period for imported cargo at the port area, exempting it from demurrage and detention charges, in response to the ongoing coronavirus lockdown.

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  • FBR further extends sales tax payment date up to April 12

    FBR further extends sales tax payment date up to April 12

    Islamabad, Pakistan – In a bid to provide relief to businesses during these challenging times, the Federal Board of Revenue (FBR) announced on Tuesday the extension of the last date for the payment of sales tax and federal excise duty (FED) for the month of February 2020.

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  • FBR appeals taxpayers pay duty, taxes to help government fight against coronavirus

    FBR appeals taxpayers pay duty, taxes to help government fight against coronavirus

    The Federal Board of Revenue (FBR) has issued a call to taxpayers, urging them to pay their duties and taxes promptly to support the government’s efforts in combating the coronavirus pandemic. This appeal, made in a statement on Tuesday, emphasizes the crucial role of tax revenue in bolstering the country’s resources during these challenging times.

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  • APTMA demands restoration of zero-rate sales tax, policy rate reduction to 5pc

    APTMA demands restoration of zero-rate sales tax, policy rate reduction to 5pc

    KARACHI: All Pakistan Textile Mills Association (APTMA) on Tuesday demanded the government of restoring zero-rate sales tax and reducing interest rate to five percent in order to help the industry and ensure jobs.

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  • Date for converting bearer prize bonds of Rs40,000 extended to June 30

    Date for converting bearer prize bonds of Rs40,000 extended to June 30

    KARACHI: People now can surrender Rs40,000 denomination bearer prize bonds by June 30, 2020 and exchange the amount with registered bonds or other given options.

    Finance Division on Tuesday issued a notification to extend the last date for encashment/redemption of Rs40,000 bearer bonds from March 31, 2020 to June 30, 2020.

    The SBP stopped the issuance of Rs40,000 denomination prize bonds on June 24, 2019 and given deadline of March 31, 2020 for exchange the such denomination with other registered mode of investment.

    Since the announcement of the central bank, the holders of bearer bonds had surrendered around Rs238 billion till November 2019.

    The total investment Rs40,000 denomination bearer bonds peaked at Rs258 billion by May 2019, which reduced to around Rs20 billion by November 2019.

    SBP stops banks selling Rs40,000 prize bonds, issues procedure for conversion into registered bonds

    The SBP in a notification issued in June 2019 issued the following instructions regarding handling of Rs.40,000/- denomination National Prize Bonds are issued herewith for information, guidance and meticulous compliance:

    a) National Prize Bonds of Rs.40,000/- denomination shall not be sold after June 24, 2019 and will not be encashed/redeemed after March 31, 2020.

    b) No further draws of Rs.40,000/-denomination National Prize Bonds shall be held.

    c) Cash payment for encashments of bonds is not allowed. However, the bond holder (s) shall have the following options to replace / encash these bonds:

    1. Conversion of premium prize bonds (registered)

    2. Replacement with special saving certificate (SSC)/Defence Saving Certificate (DSC)

    3. Encashment at face value.

    d) Appended below is the SOP for processing requests under the aforementioned options for compliance by all banks:

    Conversion to Premium Prize Bonds (Registered)

    i. The bonds can be converted to premium prize bonds (registered) through the 16 field offices of SBP Banking Services Corporation, and authorized branches of six commercial banks i.e. National Bank of Pakistan (NBP), Habib Bank Limited (HBL), United Bank Limited (UBL), MCB Bank Limited (MCB), Allied Bank Limited (ABL) and Bank Alflah Limited (BAFL).

    ii. The bond holder shall be required to submit a written request for conversion of bearer bonds to premium prize bonds (registered) to be registered in his (her) name on the prescribed application.

    iii. The bond holder shall also be required to submit prescribed applications forms for registrations / purchase of premium prize bond as per the procedure in vogue.

    Replacement with the Special Saving Certificate (SSC)/Defence Saving Certificate (DSC)

    i. The bonds can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

    ii. All authorized commercial banks shall, therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

    iii. The bondholder shall also be required to submit application form for purchase of SSC/DSC (SC-1) as per the prescribed procedure.

    Encashment at Face Value:

    i. The bonds will only be encashed by transferring the proceeds to the bond holder’s bank account through the 16 field offices of SBP Banking Services Corporation as well as the authorized commercial bank branches.

    ii. All commercial banks shall receive requests for encashment of bearer bonds on the prescribed application form.

    A copy of the application form, duly signed and stamped, shall be provided to the bondholder as an acknowledgement receipt.

    The SBP said that it is needless to mention that the National Prize Bonds of Rs40,000 denomination tendered at the counters of banks shall be subject to through scrutiny to ascertain their genuineness. In this regard, details regarding the security features in Rs40,000 denomination National Prize Bonds are available online.

    Moreover, the prize bonds encashed / replaced by general public may be surrendered to concerned SBP BSC office through respective regional office of the commercial banks. For the purpose, the regional office may intimate the SBP BSC office three days in advance so that necessary arrangements for receipt of the bonds can be made.

    It is imperative to mention that a notice regarding the above / mentioned facilities must be displayed at prominent places within branch premises for awareness and information of general public.

  • Rupee depreciates by 56 paisas against dollar

    Rupee depreciates by 56 paisas against dollar

    KARACHI: The Pak Rupee fell by 56 paisas against dollar on Tuesday owing to uncertain economic conditions after coronavirus spread.

    The rupee ended Rs166.70 to the dollar from previous day’s closing of Rs166.14 in interbank foreign exchange market.

    Currency experts said that the uncertain economic conditions were prevailed after lockdown in most of the parts of the country to control coronavirus spread.

    They said that despite lower import payment demand and massive decline in international oil prices the local unit had failed to recover against the greenback.

    The experts however said that the deterioration in rupee value was mainly due to outflow of hot money that was invested in the secondary debt market.

    The foreign currency market was initiated in the range of Rs166.00 and Rs166.71. The market recorded day high of Rs167.00 and low of Rs166.50 and closed at Rs166.70.

  • Attock Refinery warns complete shut down on lower uplifting

    Attock Refinery warns complete shut down on lower uplifting

    KARACHI: Attock Refinery Limited has issued a grave warning regarding the continuation of its operations, stating that a complete shutdown is imminent within a week if the current situation regarding product uplifting does not improve significantly.

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