Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • OGDCL declares fall in net profit to Rs53.18 billion during six months

    OGDCL declares fall in net profit to Rs53.18 billion during six months

    KARACHI: The net profit of Oil and Gas Development Company Limited (OGDCL) fell to Rs53.184 billion for the six-month period ended December 31, 2019.

    According to financial results for the six-month period ended December 31, 2019 announced on Wednesday, the after tax profit for the same period in last year was Rs56.75 billion.

    The company declared earnings per share at Rs12.37 for the period, which was also declined when compared with Rs13.20 EPS declared in the same period of the last year.

    The net sales of the company increased to Rs133.44 billion for six months period ended December 31, 2019 as compared with Rs126.89 billion in the same period of the last year.

    Operating expenses of the company increased to Rs30.55 billion for the period under review as compared with Rs29.63 billion in the corresponding half of the last year.

    The exploration and prospecting expenditure increased to Rs10.42 billion as compared with Rs4.48 billion in the corresponding period of the last year.

  • FBR official website not responding

    FBR official website not responding

    KARACHI: The official website of Federal Board of Revenue (FBR) is not available online for the past few hours creating problems for income tax return filers as the date is expiring after two days.

    The official website https://www.fbr.gov.pk/ is not available online for the past few hours as the site showing massages of runtime error or connection timed out. The website was remained offline till 2:00pm on Wednesday.

    It is important to note that the last date for filing income tax returns is February 28, 2020 for tax year 2020.

    The actual last date for filing of income tax returns was September 30, 2019. However, the FBR allowed multiple extension in dates and latest extension was granted up to February 28, 2020.

    Sources in the FBR, however, said that the problem was being resolved in order to provide facilitation to taxpayers.

  • Pakistan Petroleum declares 21% decline in half year profit

    Pakistan Petroleum declares 21% decline in half year profit

    KARACHI: Pakistan Petroleum Limited (PPL) has announced 21 percent decline in after tax profit for half-year period ended on December 31, 2019.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Tuesday, the company declared net profit of Rs24.55 billion for the half year ended December 31, 2019 as compared with Rs31.04 billion in the same half of the last year.

    The company declared earnings per share of Rs9.02 for half year ended December 31, 2019 as compared with Rs11.41 in the corresponding period of the last year.

    The decline in profit has been mainly attributed to higher operating expenses and higher exploration expenses.

    The operating expenses of the company increased to Rs21.34 billion for the period under review as compared with Rs19.45 billion in the half-year period ended December 31, 2018.

    Similarly, exploration expenses grew to Rs11.74 billion for the half-year period ended December 31, 2019 as compared with Rs7.99 billion in the corresponding half of the last year.

    The company declared decline of profit by 39 percent to Rs10.31 billion for quarter ended December 31, 2019 as compared with Rs16.85 billion in the same quarter of the last year.

    Analysts at Topline Securities said that PPL’s reported lower than expected earnings during the outgoing quarter. This deviation from our estimates was mainly on account of higher than expected exploration expenses. Increase of 106 percent was seen YoY while on quarterly basis they increased by a massive 197 percent.

    PPL’s revenue grew by 7 percent YoY in 2QFY20, despite a decline of 3 percent in oil production and a 12 percent decline in gas production, the analysts said.

    Oil prices for the period didn’t fare well either declining 6 percent YoY for 2QFY20. The favorable exchange rate movement YoY was enough to post growth for the period under review YoY.

  • FBR advised to enhance monitoring, enforcement for achieving annual targets

    FBR advised to enhance monitoring, enforcement for achieving annual targets

    ISLAMABAD: The ministry of finance has advised Federal Board of Revenue (FBR) to enhance monitoring and enforcement in order to achieve annual targets.

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  • Health declaration made mandatory for passengers entering Pakistan

    Health declaration made mandatory for passengers entering Pakistan

    ISLAMABAD – In response to the ongoing challenges posed by the COVID-19 pandemic, the federal health ministry in Pakistan has taken a crucial step to safeguard public health.

    The ministry has mandated that all travelers entering the country must submit a health declaration form, outlining contact details and providing a brief travel history.

    The official statement issued on Tuesday highlights the imperative nature of this measure, aligning with the ministry’s commitment to implementing stringent health protocols and ensuring the safety of the nation. The health declaration form, a critical tool in managing the spread of the virus, has undergone a minor amendment, making its submission a prerequisite for entry into Pakistan.

    Passengers aboard incoming flights will now be required to complete and submit the Health Declaration Card, which includes vital information about their travel history and current health status. This proactive approach aims to enhance the monitoring and screening of individuals arriving in the country, minimizing the risk of potential COVID-19 transmissions.

    The Health Declaration Cards will be distributed to passengers during their flight, allowing them ample time to provide accurate and comprehensive details before landing. The submission process is designed to be straightforward, contributing to the ease of compliance for travelers.

    The government emphasizes that adherence to this new requirement is non-negotiable. Non-compliance with the health declaration submission will result in denial of entry to the country. This strict stance underscores the gravity of the situation and the government’s commitment to prioritizing public health.

    The health declaration form seeks demographic information, travel history, and details regarding the passenger’s health status. Specifically, individuals are asked to disclose any symptoms such as fever, cough, or shortness of breath. These details serve as essential data points for health authorities, aiding in the identification of potential cases and facilitating timely interventions.

    To streamline the process and ensure the effective implementation of this measure, health staff will be stationed in the International Arrival Lounge to receive the completed forms. The collaboration between passengers and health authorities is crucial in mitigating the impact of the virus and preventing its further spread within the country.

    The introduction of the Health Declaration Card is a testament to the government’s commitment to adopting proactive measures in the face of the evolving COVID-19 situation. The emphasis on transparency and cooperation from travelers is integral to the success of these efforts, as collective responsibility plays a pivotal role in managing public health crises.

    As the global community continues to grapple with the challenges posed by the pandemic, Pakistan’s proactive approach to implement health protocols for international travelers reflects a commitment to safeguarding the well-being of its citizens and mitigating the impact of COVID-19 on a national scale.

  • 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.