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Author: Mrs. Anjum Shahnawaz

  • Rupee falls by two paisas against dollar

    Rupee falls by two paisas against dollar

    KARACHI: The Pak Rupee fell by two paisas against dollar on Tuesday amid demand from importers and corporate buyers.

    The rupee ended Rs158.43 to the dollar from previous day’s closing of Rs158.41 in interbank foreign exchange market.

    Currency experts said that the rupee had fallen significantly earlier in the day owing to demand from importers and corporate buyers. However, the sharp decline in international oil prices improved the sentiments.

    The experts said that falling international oil prices would help the country to reduce its import bill.

    The foreign currency market was initiated in the range between Rs158.65 and Rs159.25. The market recorded day high of Rs159.05 and low of Rs158.40 and closed at Rs154.43.

    The exchange rate in open market witnessed decline in rupee value. The buying and selling of dollar was recorded at Rs157.50/Rs158.50 from previous day’s closing of Rs157.00/Rs158.00.

  • Economic managers discuss coronavirus impact

    Economic managers discuss coronavirus impact

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, advisor to the Prime Minister on Finance and Revenue, chaired a meeting on Monday the impact of the ongoing corona virus epidemic on the economy and the strategy to achieve the targets with maximum success.

    The meeting was held at the Finance Division to review the progress being made by the major sectors of the economy.

    Ministers for Energy and Economic Affairs Division, Chairperson FBR and Secretaries of Finance Division, Ministry of National Food Security and Research and Ministry of Commerce attended the meeting.

    The participants of the meeting shared the details of the ongoing major initiatives of their respective ministries and divisions, their current status of progress to meet the targets set during the current financial year, the impact of the ongoing corona virus epidemic on the economy and the strategy to achieve the targets with maximum success.

    It was agreed during the meeting that all sectors related with the economy will work in unison to achieve the economic targets with maximum effort and that the government will ensure that the common man is not affected by any adverse fallout of the epidemic.

  • Stock market crashes by 2,376 points, witnesses fourth lower lock

    Stock market crashes by 2,376 points, witnesses fourth lower lock

    KARACHI: The stock market ran into bear market on Monday after slipping another 2,376 points and witnessed forth lower lock since last week.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,685 points as against 36,061 points showing a decline of 2,376 points.

    Analysts at Arif Habib Limited said that the index marked the 4th halt since last week and since the circuit breakers moved up, the downside came with KSE-30 dropping 5 percent.

    The 100-index sustained a loss of 1651 points at the time of halt, but continued the downtrend ultimately posting a total loss of 2442 points during the session and registering a small recovery by end of session showing a loss of 2376 points.

    Market did not take any positive cue from the upcoming monetary policy, to be announced tomorrow, whereby street anticipates a cut of 50-100bps.

    Fears of coronavirus spread have also caused significant damage to investor sentiment and generally investors were seen sidelined. Index heavy weights in Banking, Cement, Fertilizer, E&P sectors were observed at or near lower circuits.

    Banking sector realized trading volumes of 56.4 million shares, followed by Cement (37.6 million) and Technology (14 million). Among scrips, BOP topped the volumes with 31.1 million shares, followed by MLCF (25.7 million) and FCCL (20.9 million).

    Sectors contributing to the performance include Banks (-689 points), E&P (-326 points), Fertilizer (-281 points), Cement (-220 points), Power (-155 points).

    Volumes declined from 290.5 million shares to 215.4 million shares (-26 percent DoD). Average traded value also declined by 42 percent to reach US$50.9 million to US$ 88.2 million.

    Stocks that contributed significantly to the volumes include BOP, MLCF, UNITY, PPL and TRG, which formed 38 percent of total volumes.

    Stocks that contributed negatively include HBL (-169 points), ENGRO (-140 points), HUBC (-126 points), MCB (-124 points), and UBL (-115 points).

  • Rupee gains 57 paisas against dollar

    Rupee gains 57 paisas against dollar

    KARACHI: The Pak Rupee gained 57 paisas against dollar on Monday owing to falling oil prices in international markets.

    The rupee closed at Rs158.41 to the dollar from last Friday’s closing of Rs158.98 in interbank foreign exchange market.

    Currency dealers said that the international oil prices were falling constantly due to ease in demand on coronavirus threat and price war between Saudi Arabia and Russia.

    The foreign currency market was initiated in the range of Rs157.75 and Rs158.00. The market recorded day high of Rs158.75 and low of Rs157.75 and closed at Rs158.41.

    The exchange rate witnessed stable rupee value. The buying and selling of dollar was recorded at Rs157.00/Rs158.00, the same last Friday’s closing level, in cash ready market.

  • NCCPL allows remote access on coronavirus threat

    NCCPL allows remote access on coronavirus threat

    KARACHI: National Clearing Company of Pakistan (NCCPL) has allowed stock investors to access the company remotely in the wake of spread of coronavirus epidemic.

    A notification issued on Monday said as part of this endeavor, NCCPL’s is providing an option to all its clients to connect remotely from any location in Pakistan to avail and access all the services provided by the Company.

    In order to avail this option, clients are required to meet following basic pre requisites:

    Two Mbps Internet connection from any vendor with Public static IP.

    Share the above connectivity details with NCCPL customer services through official communication channel.

    On fulfillment of these requirements, NCCPL technical support team will get in touch to setup necessary configuration at client’s end.

    NCCPL has been continuously updating and aligning its processes, technology and human resource capabilities as per emerging national and international Business Continuity challenges.

    The NCCPL said: “We are also making sincere efforts to ensure that all such scenarios are covered in our Business Continuity Drills. Because of recent outbreak of pandemic diseases CORONA, NCCPL has improved its business continuity planning with key focus on mitigating such risks.”

    With reference to pandemic diseases such as the recent outbreak of COVID’19, NCCPL has designed a live BCP drill involving all its business applications.

    This activity is planned on March 18-19, 2020 with special focus on NCCPL staff conducting daily operations from remote locations.

    “We would also encourage all NCCPL clients to take part in this activity and connect NCCPL business applications from remote locations as well in order to test and ensure continuity of their operations from their remote setups.”

  • PSX trading halts for fourth time

    PSX trading halts for fourth time

    KARACHI: The trading activities at Pakistan Stock Exchange (PSX) have been halted after indices fell below five percent.

    Experts said that the detection of new coronavirus cases in the country negatively impacted the stock market.

    While the expansion of this epidemic in the world especially the number of deaths increased substantially also discouraged the investors.

    The KSE-100 index fell by 1651 points and was at 34,410 at the time of halt. The market shall resume after 45 minutes.

    The trading has been halted during the past eight days following massive decline in indices.

  • BTB efforts help RTO-II Karachi to post unprecedented 60% growth: CCIR

    BTB efforts help RTO-II Karachi to post unprecedented 60% growth: CCIR

    KARACHI: The efforts of tax officials for broadening the tax base (BTB) helped Regional Tax Office (RTO)-II Karachi to achieve above 60 percent revenue collection growth in February 2020.

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  • Coronavirus prevention: Clearing agents advised avoid unnecessary visits to Custom House

    Coronavirus prevention: Clearing agents advised avoid unnecessary visits to Custom House

    KARACHI: Customs clearing agents have been advised to avoid unnecessary visits to Custom House Karachi as a preventive measure against coronavirus.

    In a circular Karachi Customs Agents Association (KCAA) on Saturday, informed its members that the association had conducted meetings with the Model Customs Collectorate Appraisement & Facilitation (East) & (West) regarding outbreak of Novel Coronavirus (COVID-19) and decided to take appropriate precaution measures in order to avoid unnecessary visits and long sit-ins at visitor’s area of Custom House, Karachi.

    It is highly recommended for the general public to reduce exposure and limit the risk of spread/transmission of Novel Coronavirus.

    Members and their employees are advised to avoid unnecessary visits at Custom House Karachi and wear masks by following other safety instructions as already displayed on the notice boards at Custom House, Karachi.

    However, in case of any emergency meetings/hearings are required to be attended, a written applications by mentioning the reasons to the officers concerned should be submitted for the redressal of grievance.

    In case of any assistance members are advised to contact the CHO-Office of MCC Appraisement & Facilitation (East & West).

  • FBR starts obtaining CNIC information on purchases above Rs50,000

    FBR starts obtaining CNIC information on purchases above Rs50,000

    KARACHI: Federal Board of Revenue (FBR) has started obtaining CNIC information of buyers making purchases above Rs50,000 in order to realize sales tax and for broadening of tax base.

    Sources in FBR said that sales tax registered persons would provide details of Computerized National Identity Card (CNIC) of buyers making purchases above Rs50,000.
    The registered persons will provide the details of CNIC through their monthly sales tax return that is due on March 18, 2020 for the month of February 2020.

    The FBR made it mandatory for sales tax registered persons to obtain CNIC details of unregistered buyers. In this regard an amendment was made to Section 23 of Sales Tax Act, 1990 through Finance Act, 2019.

    The condition was made mandatory on supplies from August 01, 2019. However, on the objections from stakeholders including small traders and shopkeepers the condition was deferred till January 31, 2020.

    The sources said that the sales tax registered persons are required to obtain CNIC details of buyers from February 01, 2020 and provide the same information to the FBR through monthly returns of February 2020, which is due on March 18, 2020.

    They said that the condition is not applicable on ordinary customers.

    For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing.

    The sources said that in case seller was unable to obtain the CNIC information of buyer then in such case the registered person would be responsible.

    However, the FBR through Sales Tax General Order No. 106 dated October 04, 2019 issued clarification regarding CNIC condition.

    The FBR clarified that the CNIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the suppliers with conditions that the invoice should complies with statutory requirements.

    It is also mandatory that payment made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax, is deposited into the supplier’s declared business bank account.

    The CNIC provided by the purchaser is found authenticated by the National Data and Registration Authority (NADRA).

    The FBR also barred that CNIC/NTN provided was not of the employee of the seller or of his associates.

    The sources said that the tax authorities would impose penalty on registered persons on failure to comply with the requirement of obtaining CNIC.

  • OCAC suggests fortnightly POL prices revision

    OCAC suggests fortnightly POL prices revision

    KARACHI: The Oil Companies Advisory Committee (OCAC) has advised the government to review petroleum prices on fortnightly basis instead monthly basis.

    In a letter to Secretary Petroleum, the OCAC said that due to the declining petroleum products prices experienced in February and March 2020, the whole downstream oil industry was facing uncertainty and financial exposure.

    “As a consequence, upliftment from refineries and Oil Market Companies (OMCs) depots is depressed when there is also a huge trading exposure in imports,” it said, adding that needless to mention, the losses incurred and being incurred by oil industry due to fluctuation of Pak Rupee/ US Dollar parity is also over and above the pricing exposure.

    “In light of above to mitigate the situation in weeks and months ahead so as to avoid any undesirable situation in terms of imports shyness and availability of petroleum products, we proposes to switch the frequency of petroleum products pricing from monthly to fortnightly basis and if further needed to weekly basis.”

    It is pertinent to mention that fortnightly prices have also been successfully implemented in the past, the OCAC said.

    Recently, analysts at Topline Securities revised down earning forecast for Oil and Gas exploration companies over FY20E-22F by 18-33 percent due to: downward revision in international oil price assumption; incorporation of lower-than-expected 1HFY20 results; and likely delays in production from few fields mainly for MARI.

    The Energy Information Administration (EIA) has downward revised their oil price forecast by 33 percent and 13 percent to US$43 and US$55/bbl for 2020E and 2021F, respectively in the aftermath of deadlock over production cuts between OPEC and allied countries (mainly Russia). Saudi Arabia announced price discounts and production increase to 12.3mn bopd (current 9.8mn bopd) from Apr 2020 onwards.

    To note, crude oil prices (Arab Light) are down 46 percent to US$37/bbl since Dec 31, 2019.

    Concerns over epidemic Corona Virus Disease (COVID) is also weighing down on the global growth outlook and subsequently on oil demand. OPEC in its recent Mar 2020 report (released on Mar 11) has revised down World GDP growth target to 2.4 percent vs. earlier 3.0 percent for 2020.