Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Stock market gains 665 points to start year 2020

    Stock market gains 665 points to start year 2020

    KARACHI: The stock market gained 665 points on Wednesday to start the year 2020. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,400 points as against 40,735 points showing an increase of 665 points.

    Analysts at Arif Habib Limited said that the first day of 2020 started with a bang and contributed +665 points to the Index. During the session, the market went up by 809 points.

    Buying activity was observed across the board especially in Banks and Cement sectors.

    KEL saw highest trading volumes of 119 million shares, which was on the back of fuel adjustment recently announced by NEPRA.

    Trading volumes also increased significantly over the day to 330 million shares, with the index crossing 41,500 points level. Power sector led the volumes with 121 million shares, followed by Technology (30.2 million) and Vanaspati (26.6 million). Among scrips, KEL led the table followed by UNITY (26.6 million) and FFL (17.5 million).

    Sectors contributing to the performance include Banks (+277 points), Fertilizer (+93 points), E&P (+74 points), Cement (+46 points) and Inv Banks (+32 points).

    Volumes increased from 177.1 million shares to 330.7 million shares (+86 percent DoD). Average traded value also increased by 14 percent to reach US$ 52.1 million as against US$ 45.7 million.

    Stocks that contributed significantly to the volumes include KEL, UNITY, FFL, AVN and TRG, which formed 55 percent of total volumes.

    Stocks that contributed positively include HBL (+90 points), UBL (+74 points), ENGRO (+64 points), POL (+45 points) and MCB (+36 points). Stocks that contributed negatively include PAKT (-33 points), HUBC (-9 points), SHEL (-6 points), JLICL (-3 points), and APL (-1 points).

  • Headline inflation increases by 12.6% in December 2019

    Headline inflation increases by 12.6% in December 2019

    In a concerning economic development, Pakistan’s headline inflation, as measured by the Consumer Price Index (CPI), has surged by 12.6 percent in December 2019 on a Year-on-Year (YoY) basis, according to the latest report from the Pakistan Bureau of Statistics (PBS).

    (more…)
  • FBR drafts rules for risk based customs clearance

    FBR drafts rules for risk based customs clearance

    ISLAMABAD: Federal Board of Revenue (FBR) has drafted Risk Management System Rules for customs clearance of cargo to comply with Trade Facilitation Agreement (TFA) of World Trade Organization (WTO).

    (more…)
  • FBR implements duty exemption/concession under 2nd Phase Pak-China FTA

    FBR implements duty exemption/concession under 2nd Phase Pak-China FTA

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday issued concessionary rates for 6,786 tariff lines for goods imported under Second Phase of Free Trade Agreement (FTA) between Pakistan and China.

    The notified rates will be effective from January 01, 2020 for next 15 years i.e. December 31, 2034.

    The FBR issued SRO 1640(I)/2019 to implement the revised customs duties for goods imported from China.

    The SRO said:

    “S.R.O.1640(I)/2019.- In exercise of the powers conferred by section 19 of the Customs Act,1969 (IV of 1969), and in supersession of Notification No. S.R.O. 659(I)/2007,dated the 30th, June, 2007, the Federal Government is pleased to exempt, with effect from the first day of January, 2020, unless specified otherwise, the import into Pakistan from Peoples Republic of China of the goods specified in column (3) of the Table below, falling under the Heading and sub-Heading numbers of the First Schedule to the said Act as specified in column (2) of the said Table, from so much of the customs duty specified in the First Schedule as on the 1st January , 2020 to the said Act as in excess of the rates specified in columns (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15), (16), (17) or (18) of the Table with effect from the corresponding date:

    “Provided that the goods are manufactured or produced and imported in conformity with the Rules of Determination of Origin of Goods and the operational certification procedures for the Rules of Origin notified by the Ministry of Commerce vide No. S.R.O. 1286(I)/ 2005, dated the 24th December, 2005 read with the Import Policy Order, 2016:-

    The second phase of China-Pakistan FTA came into effect earlier this month, allowing Pakistani manufacturers and traders to export more than 300 new products to the Chinese market for zero duty charges.

    The two neighboring countries have already completed all legal procedures and formalities to start implementation of the agreement.

    Pakistan and China signed a protocol for implementation of the agreement during the last visit of Prime Minister Imran Khan to China.

    Pakistan is already enjoying zero duty on export of 724 products to China under the first FTA signed between the two countries in 2006.

    The major products on which tariff has been eliminated are textiles, garments, seafood, meat, other animal products, prepared food, leather, chemicals, plastics, oilseeds, footwear as well as engineering goods including tractors, auto parts, and home appliance machinery.

  • POL prices increased up to Rs3.10/liter

    POL prices increased up to Rs3.10/liter

    ISLAMABAD: The government has increased the prices of petroleum products (POL) up to Rs3.10 per liter effective from January 01, 2020.

    In a notification issued on Tuesday, the government decided to increase the prices of petroleum products as per recommended by Oil and Gas Regulatory Authority (OGRA).

    Following are the new POL prices:

    The price of kerosene (SKO) has been increased by Rs3.10 per liter to Rs99.45 to from Rs96.35.

    The price of petrol has been increased by Rs2.61 per liter to Rs116.60 from Rs113.99.

    The rate of High Speed Diesel (HSD) has been increased by Rs2.25 per liter to Rs127.26 from Rs125.01.

    The price of Light Diesel Oil (LDO) has been increased by Rs2.08 to Rs84.51 from Rs82.43.

  • FBR extends return filing date up to January 31

    FBR extends return filing date up to January 31

    ISLAMABAD: Federal Board of Revenue (FBR) granted fifth extension for filing income tax return for tax year 2019 up to January 31, 2020.

    The FBR issued Income Tax Circular No. 18 of 2019 for extension in date of filing income tax returns/statements for tax year 2019.

    The FBR said that the date of filing of return of total income / statements of final taxation for individuals and associations of persons for the tax year 2019 which was due on September 30, 2019 and extended up to December 31, 2019 has been extended up to January 31, 2020.

    The FBR further said that the date of filing of return of total income/statements of final taxation for companies for the tax year 2019, which was due on September 30, 2019 and extended up to December 31, 2019, in respect of those companies who have paid 90 percent of the admitted tax liability on or before September 30, 2019, has been allowed further extension up to January 31, 2020.

    The date of filing of return of total income/statements of final taxation for companies for tax year 2019, which was due on December 31, 2019 has also been extended up to January 31, 2020.

  • FBR collects Rs2,080 billion in first half at 16% growth

    FBR collects Rs2,080 billion in first half at 16% growth

    ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs2,080 billion during first half (July – December) 2019/2020 as compared with Rs1,795 billion in the corresponding half of the last fiscal year, showing a growth of 16 percent.

    FBR chairman Syed Shabbar Zaidi in a tweet message said that the revenue body collected Rs2,080 billion up to December 31, 2019 posting 16 percent growth.

    On the basis of above data, the FBR collected Rs463 billion during December 2019 as compared with Rs411 billion in the same month of the last year, posting 12.65 percent growth.

    The FBR was required to collect Rs2,198 billion during first half of the current fiscal year as per revised performance criteria of International Monetary Fund (IMF).

    Considering the performance criteria the FBR’s revenue shortfall was at Rs118 billion during first half of the current fiscal year.

    According to Country Report Pakistan released by IMF on Monday the actual performance criteria for revenue collection was Rs2,367 billion during first half (July – December) of current fiscal year, which has been revised downward by Rs169 billion to Rs2,198 billion.

    As per IMF documents the FBR failed to achieve the first quarter (July – September) 2019/2020 target of Rs1,071 billion and its collection was at Rs964 billion.

    The actual revenue collection target for current fiscal year was Rs5,550 billion. However, the indicative target as per IMF documents has also been revised downward to Rs5,238 billion.

    The FBR has to raise revenue collection to Rs3,520 billion by March 2020 in order to ensure the desired target for current fiscal year.

    As per IMF documents: “Tax revenue is now expected to be 0.5 percent of GDP lower than originally expected: while domestic collection is envisaged to remain strong, growing by over 25 percent y-o-y over FY 2020, growth in trade-related tax revenues is expected to remain subdued as declining imports continue to weigh on collections—more than 40 percent of total tax revenue in Pakistan is collected at the import stage.”

    The FBR has been given revised Indicative Targets for end December 2019 including net tax collection to recognize the faster than expected external adjustment negatively impacting customs revenue, besides net accumulation of tax refund arrears to capture the authorities plan to reflect the end-June stock of tax refund arrears.

  • KSE-100 posts 10% return in year 2019

    KSE-100 posts 10% return in year 2019

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) posted a return of 10 percent during year 2019.

    Analysts at Arif Habib Limited said that KSE-100 index posted a return of 9.9 percent YoY during CY19 while USD-based return clocked-in at negative 1.4 percent.

    First positive return after two years of consecutive negative returns, the analysts said.

    Barring the last couple of months, CY19 was nothing short of a horror story for the equity market with a dominating bearish trend. During the year, the KSE-100 index crashed to a 5-Yr low of 28,765 points on August 16, 201919, which was a 22 percent contraction since December 2018 and a 31 percent decline on a YoY basis.

    Stringent conditions attached with the USD 6 billion IMF bailout package such as 40 percent higher FBR tax revenue target, currency depreciation, cap on sovereign guarantees, electricity and gas tariff hikes were the sources of pessimism during the outgoing year.

    Meanwhile, tension on the border with India following the air combat in Feb’19 had its own adverse effects on the overall sentiment.

    Albeit, the domestic equity bourse showed a sharp inflection post its low in August 2019.

    Till date, since its low the market has shown a remarkable rebound of 42 percent, and in effect turning the CY return positive.

    Undoubtedly, dirt cheap valuations across the index and over-selling were pivotal factors for the impressive market performance but we see the economy entering into stabilization mode as a more sustainable and important reason.

    Analysts at Topline Securities said that KSE-100 index during 4Q2019 recorded growth of 8,656 points/27 percent; which is the highest quarterly gain achieved by index since 3QCY09 to close at level of 40,735.

    The recovery in equities was mainly led by improved macroeconomic factors which included 1) declining bond yields leading investors towards equities, 2) stable PKR/USD exchange rate, 3) Positive first quarterly review by IMF, 4) foreign investment in local debt securities, 5) anticipation of policy rate cut in 1H2020 & 6) current account surplus of USD70 million recorded in month of October.

    Political uncertainty as always remained a key concern during the quarter. Departure of ex-prime minister Nawaz Sharif to London, conditional extension to COAS for 6 months by supreme court and decision of death penalty to ex president Musharraf by special court were the main highlights.

  • SBP directs biometric verification of branchless banking accounts by March 31

    SBP directs biometric verification of branchless banking accounts by March 31

    KARACHI: State Bank of Pakistan (SBP) has directed financial institutions to ensure biometric verification of branchless banking customers by March 31, 2020.

    In a circular issued on Tuesday directed all banks and microfinance banks to complete biometric verification of all level-1 accounts by March 31, 2020. In case biometric verification is not performed, the financial institutions shall convert all these accounts to Level – 0 with effect from April 01, 2020.

    The transaction limits for Level – 1 accounts are as follow:

    a. Rs. 50,000 per day [This limit shall not be applicable on: (i)credit from employers for salaried persons against proof of employment and (ii) payment to trusted merchants including schools and hospitals etc.]

    b. Rs. 200,000 per month

    The transaction limits for Level-0 accounts are as follow:

    a. Rs. 25,000 per day

    b. Rs. 50,000 per month

    c. Rs. 200,000 per year

    d. Rs. 200,000/- maximum balance limit

    The financial institutions operating branchless banking are required to follow regulations related to Know Your Customer (KYC)/Account Opening requirements and conditions:

    For Level-0 accounts:

    a) Verification of customer identity from NADRA

    b) Pre-screening the name and CNIC against proscribed/designated persons and entities as per the Statutory Notifications issued by Federal Government from time to time.

    c) Call Back Confirmation or generation of One-Time Password (OTP) for verification in remote account opening.

    For Level-1 accounts:

    a) Biometric Verification of customer from NADRA

    b) Pre-screening the name and CNIC against proscribed/designated persons and entities as per the Statutory Notifications issued by Federal Government from time to time.

    c) Call Back Confirmation or generation of One-Time Password (OTP) for verification in remote account opening.

    The SBP said that financial institutions shall keep all necessary record obtained through CDD measures, account files and business correspondence and results of any analysis undertaken, for at least ten years following the termination of the business relationship.

    The central bank further said that the financial institutions shall ensure that documents, data or information collected under the CDD process is kept up to date and relevant, by undertaking reviews of existing records.

  • SBP updates guidelines related to UNSC resolutions

    SBP updates guidelines related to UNSC resolutions

    KARACHI: State Bank of Pakistan (SBP) on Tuesday updated guidelines for banks related compliance on notification issued under United Nations Security Council (UNSC) Resolutions.

    The SBP issued circular addressing chief executives and presidents of banks, development financial institutions and microfinance banks, referring to the guidelines on Compliance of Government of Pakistan’s Notifications issued under United Nations Security Council (UNSC) Resolutions, issued vide BPRD Circular No. 03 of 2015 as amended from time to time.

    The SBP said that in order to further enhance the understanding of Targeted Financial Sanctions regimes for Terrorism Financing and Proliferation Financing, under UNSC Resolutions, and to further align said regimes with the requirements embodied in FATF Recommendations, SBP has decided to update the subject guidelines.