Author: Mrs. Anjum Shahnawaz

  • Pak-Turkey agree to strengthen cooperation

    Pak-Turkey agree to strengthen cooperation

    ISLAMABAD: A Joint Statement was issued after 6th session of Pakistan-Turkey High Level Strategic Cooperation Council (HLSCC) titled “Towards An Ever-Closer Strategic Partnership” co-chaired by Prime Minister Imran Khan and President Recep Tayyip Erdogan.

    Reiterating their resolve to transform bilateral fraternal relationship into an ever-expanding, mutually beneficial strategic partnership, Pakistan and Turkey on Friday agreed to further strengthen their cooperation in the areas of trade, energy, defence, infrastructure, transport, communication, agriculture etc.

    Following is the text of the Joint Statement:-

    “Reaffirming the time-tested and unparalleled relations between the peoples and the governments of the two brotherly countries that are embedded in a common historical, religious and cultural heritage;

    Recalling the historic bonds between the peoples of the two regions, manifested through the legendary support provided by the Muslims of South Asia to their Turkish brethren in early 20th century as well as the resolute support provided by Turkey to the people of Pakistan in the face of all challenges;

    Emphasizing that the fraternal relations between Pakistan and Turkey are a sacred trust, that must be protected, nurtured and transmitted onwards to successive generations as common heritage;

    Reiterating their resolve to transform this fraternal relationship into an ever-expanding, mutually beneficial, strategic partnership;
    Underlining the importance and centrality of Turkey-Pakistan High-Level Strategic Cooperation Council (HLSCC) mechanism in expanding Turkey-Pakistan bilateral relations;

    Welcoming the finalization of the landmark Pakistan-Turkey Declaration of Strategic Economic Framework (SEF) and Action Plan;

    Reiterating their common resolve to fight the scourge of terrorism in all its forms and manifestations; underscoring the need for addressing the root causes of terrorism, including by resolving prolonged conflicts and ending situations of foreign occupation; reaffirming that terrorism cannot and should not be associated with any religion, nationality or civilization; and calling for extending the scope of the UNSC 1267 sanctions regime to individuals and entities currently outside its ambit.

    Expressing deep concern at the rising tide of Islamophobia, and condemning in the strongest terms the recent terrorist and racist attacks against Muslims across the globe;

    Recalling all the previous Joint Declarations signed between the two sides under the framework of Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC), and the decisions made therein;

    Having endorsed the outcomes of the meetings of the respective Working Groups of the Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC) held on 13 February 2020 and expressing satisfaction at the progress achieved therein;

    We, the Co-chairs of the 6th Meeting of the Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC), held in Islamabad, on 14 February 2020 have agreed as follows:

    Political Cooperation

    Bilateral institutional mechanisms:

    The High-Level Strategic Cooperation Council (HLSCC) shall continue to be the main political forum that guides bilateral relations in all fields with an effective and expeditious follow-up on its decisions.

    The two sides will review, update and amend, as appropriate, the agreements, protocols and MOUs signed under the umbrella of the HLSCC, in order to streamline their implementation.

    The ongoing consultations between the Ministries of Foreign Affairs of the two countries shall be further intensified and their scope broadened to new areas.

    Fight against terrorism:

    Being victims of terrorism themselves, both countries will continue to cooperate in the fight against this scourge, including through the exchange of best practices and experiences in the area of law enforcement, legislation, capacity building and strengthening of the respective AML/CFT regimes.

    The two sides reiterate their resolve to fight against the Fetullah Gulen Terrorist Organization (FETO). In this regard, Turkey notes with appreciation the measures taken by Pakistan against FETO in line with its domestic law, through inter alia designation of FETO as a terrorist organization, and handing over of all linked schools to the Turkish Maarif Foundation.

    The two sides will continue to cooperate at all international forums, in particular at the United Nations and relevant inter-governmental organizations, to make international counter-terrorism and AML/CFT regimes more transparent, apolitical, non-discriminatory and objective, as well as to counter laws or administrative measures discriminating against and stigmatizing Muslims.

    Islamophobia:

    The two countries will work closely to combat Islamophobia, hate speech, efforts to link terrorism with Islam, and other manifestations of intolerance towards Muslims, including stereotyping of Muslims.

    Joint initiatives will be taken to counter stereotyping and defamation of Islam and Muslims, including incitement to acts of violence, xenophobia, and related intolerance and discrimination against Islam, its religious symbols, and venerated personalities, by means of print, audio-visual & electronic media, the Internet, as well as entertainment media such as movies, videos and digital games.

    The two countries note with appreciation the UN Secretary General’s Strategy and Action Plan on Hate Speech and call for convening a special session of the UN General Assembly on measures to combat Islamophobia;

    Both sides also call for establishment of an observatory under the auspices of OHCHR (or any other relevant UN body/authority) to monitor acts of hate speech, Islamophobia, incitement to hatred and violence against Muslims;

    The two countries call on the UN Human Rights Council to appoint a Special Rapporteur to monitor and combat Islamophobia.

    Regional and international issues:

    The unilateral actions by India on 5 August 2019, as well as the further deteriorating human rights and humanitarian situation in the region as a result of these actions, have further increased regional tensions, and, the situation must, therefore, be urgently addressed for regional as well as global peace and security.

    The two sides underscored need for resolution of all outstanding disputes between Pakistan and India, including the core issue of Jammu & Kashmir through a sustained dialogue process and in accordance with the relevant UN Security Council resolutions. In this regard, Pakistan expresses its deep appreciation for Turkey’s principled stance on the issue as well as its offer for mediation.

    Sustainable peace and stability in Afghanistan can only be achieved through an Afghan-led and Afghan-owned peace process. Turkey appreciates Pakistan’s support to the Afghan peace process. Pakistan supports Turkey’s efforts in achieving these objectives and welcomes the Istanbul Declaration adopted at the Heart of Asia Ministerial Conference, held on 11 December 2019.

    The two countries reiterate full and resolute support for the efforts towards the comprehensive settlement of the Cyprus issue on the basis of the political equality of the two communities on the Island, and with a view to building peace and stability in the Eastern Mediterranean;

    Both sides noted with concern the trend towards exceptionalism and sidelining of non-proliferation objectives. This trend is regarded as detrimental to the credibility of the global non-proliferation regime and, in this regard, also to the strategic stability in South Asia.

    Turkey appreciates Pakistan’s strong commitment to non-proliferation and its adherence to the Nuclear Suppliers Group’s (NSG) Guidelines. Turkey recognizes that as a country with an extensive experience in this area, Pakistan’s membership of the NSG will contribute to the global non-proliferation objectives.

    The United Nations Security Council needs to be made more representative, democratic, transparent, and accountable through comprehensive UN Security Council reform process, based on widest possible consensus. In addition, the need for the implementation of relevant UN Security Council resolutions to resolve the long-standing disputes on the agenda of the Security Council, especially those pertaining to the Muslim Ummah, is underlined;

    Cooperation at the multi-lateral forums:

    The two countries shall continue to cooperate and coordinate at regional and international forums, particularly the United Nations, the Organization of Islamic Cooperation (OIC), the Economic Cooperation Organization (ECO), and the D-8 Organization, etc. through, inter alia, mutual support for joint initiatives, policies and candidacies.

    Other issues:

    The two countries agree to work together bilaterally as well as at the global forums to address threats posed by the adverse effects of climate change; and explore avenues to enhance cooperation with regard to implementation of Sustainable Development Goals (SDGs).

    The two countries shall continue to work closely to address irregular migration and agreed to further develop cooperation on irregular migration and to combat human trafficking and migrant smuggling. Turkey acknowledges and notes with appreciation the measures being taken by Pakistan towards implementation of the Agreement on the Readmission of Persons Residing without Authorization as well as facilitation with regard to provision of documents of irregular migrants exiting from Turkey.

    Security and Defence Cooperation

    The two sides agreed to: further intensify and expand cooperation in the defence and security spheres, including by sourcing their defence purchases from each other to the extent possible, and prioritizing joint research, development and production ventures.

    Work for global disarmament, non-proliferation objectives, safeguarding and strengthening international as well as regional security and promoting strategic stability, including in each other’s respective regions.

    Enhance cooperation between the law enforcement institutions, departments and agencies of both countries through, inter alia, training activities and sharing of best practices, information, experiences and expertise, etc.

    Cooperate through relevant counter-terrorism institutions to develop methods and avenues of cooperation in keeping with the evolving nature of the threat, including in the areas of cyber-terrorism and cyber-crime.

    Energy Cooperation

    Both countries agreed to: Enhance cooperation in human capacity building, especially in the fields of human safety, management of the distribution systems and senior management training modules.

    That the Turkish experience and expertise in human resource development and the expertise would be utilized to upgrade and improved Pakistan’s electricity sectors institutional framework, curriculum, and modules at different levels.

    Cooperate in the capacity building of National Energy Efficiency and Conservation Authority (NEECA) Pakistan.

    Enhance investment opportunities in the power transmission and distribution sectors of Pakistan.
    Enhance cooperation in the field of hydrocarbons, especially in oil and gas exploration and production projects, supply and trade of LPG and petroleum products.

    Creation of a joint monitoring group of the Ministries of Energy that would meet at least once a year to review the progress against the decisions made in this joint working group.

    Trade and Investment

    Both sides reviewed the existing bilateral trade and agreed to increase the level of economic engagement to mobilize the untapped potential for increasing trade and investment.

    Both parties agreed to conclude the FTA with the broader purpose of increased economic and trade integration and as per the “Joint Declaration on Pakistan-Turkey Strategic Relationship for Peace and Prosperity” made during the 5th meeting of Pakistan – Turkey High Level Strategic Cooperation Council held on 22-24 February 2017 under which both sides agreed that the “Free Trade Agreement negotiations will be conducted taking into consideration the sensitivities of economies of both countries.”

    In this regard, both sides have also agreed to conduct and finalize a Joint Scoping Study by end of March, 2020 which would identify potential sectors where opportunities are not being exploited at present. This Study would form the basis for future roadmap of Pakistan Turkey FTA negotiations.

    In the light of above and the progress achieved in the Joint Scoping Study, both sides would consider reinitiating negotiations on Pakistan Turkey FTA in the second quarter of 2020.

    Both sides agreed to encourage their businessmen to establish Joint Ventures in industrial sectors and cooperate in the field of e-commerce.

    Banking & Finance

    Both sides discussed the proposed credit line facility of USD 350 million for implementation of eligible projects in Pakistan. A draft MoU was shared by Pakistan with their counterparts from Turkey. The Turkish side agreed in principle to consider the proposal for extending credit facility of USD 350 million to Government of Pakistan on terms mutually agreed between the two sides. In this regard, both sides agreed to formulate the draft MoU through mutual consultations by the end of May 2020.

    Both sides agreed to encourage their banking sectors to enhance cooperation in banking and finance for promotion of trade and investment between the two countries and facilitate each other for opening bank branches on reciprocal basis.

    Both sides expressed their mutual desire to enhance bilateral cooperation between their Central Banks by initiating a dialogue with a view to finalize an MoU on Technical Cooperation and Renewal of the Currency Swap Agreement (CSA).

    Both sides agreed to enhance technical cooperation in the following fields:

    i. Establishment of a Communication Line Between Credit Guarantee Institutions of Both Countries for SME Promotion.

    ii. Public Debt Management, Cash Management and Risk Management.

    iii. Development of Housing and Housing Finance Industry in Pakistan

    iv. Public Private Partnership Framework

    In this regard, Pakistan shared draft MoUs/Protocols with Turkish side. The Turkish side agreed to respond within due course of time.

    Both sides agreed on knowledge sharing and mutual technical assistance in the areas of Risk Based Approach for Supervision on anti-money laundering, misuse of payment system including new payment method, UNSC sanctions regime, money laundering and terrorist financing typologies.

    Both sides agreed on cooperation for capacity building in the areas of Islamic Banking, Project Management, Taxation, Strategic Planning, Sectoral Planning & Development and other areas of mutual interest.

    Pakistan appreciated the endeavors made by Turkish International Cooperation & Development Agency (TIKA) for implementing small grant projects in social sectors in Pakistan and assured them of continued cooperation.

    Transport and Communications Cooperation

    The two sides agreed to: Implement bilateral agreements in all the modes of transport i.e. Road, Rail, Sea and Air, as a step towards promoting bilateral trade and cooperation between the two countries.

    Devise all required mechanisms for boosting activities in various fields of Communications & Transport Sector including Roads, Rail, Air, Sea, Postal and IT & Telecom to their full potential by utilizing all available options.

    Enhance their commitment in the implementation of bilateral and multilateral Transport Agreements. Turkey appreciated and welcomed Pakistan’s Accession to International UN-TIR Convention 1975 and CMR Convention that has paved the way of harmonizing Pakistan’s procedures and standards with the globally accepted and recognized guaranteeing mechanisms.

    Both sides decided to organize a pilot run of at-least 10 trucks on Islamabad-Tehran-Istanbul (ITI) Road Corridor by June 2020 in consultation with the Transport Associations of both sides under framework of already signed bilateral Road Transport Agreement. This will further boost the bilateral cooperation and trade activities between the two countries.

    Consider participation in potential projects of highways and motorways of Pakistan by Turkish companies on BOT/Public Private Partnership basis.

    Both sides agreed to explore the possibilities of joint cooperation in railway sector mainly in the areas of business planning, management, railway operations, railway infrastructure, IT & Technology in railways, capacity building etc., in addition to manufacturing, rehabilitation, maintenance and repair of locomotives, freight wagons and passenger coaches in the framework of MoU which has been signed at High level Strategic Cooperation Council. This has also been reflected in the Strategic Economic Framework.

    Both sides affirmed to proactively engage in promoting joint cooperation in railways.

    The Turkish side agreed to explore the possibility of Pakistan’s proposal for the renewal of MoU between Pakistan Railways & Union of Chamber of Commerce and Commodity Exchange (TOBB) through its logistic company BALO.

    The two sides recognized the significance of ITI train for integration of the region with Europe and beyond. The two sides agreed to take measures necessary for resumption of ITI train operations at the earliest.

    Pakistani side also encourages Turkish companies to participate in the biding process of potential railways projects funded through own resources and BOT/PPP basis.

    Collaborate in the field of (a) international and local remittance and IT innovative services between Turkey and Pakistan, (b) Express and Logistic Services and E-commerce through Postal Network to enhance cooperation in ICT based postal services between the two countries.

    Cooperate and exchange of experiences and collaboration in Maritime Education & Trainings, Maritime Trade and Port Management. The geographical location of the Izmir Port of Turkey and Karachi Port need to be utilized to harmonize each other’s capabilities for an effective trade and cargo handling.

    Both sides may finalize the Annex-I of the MoU signed in 2015 with a view to further deepen the bilateral ties in the field of aviation. It was further agreed to discuss the traffic rights and frequencies between the two brotherly nations during a forthcoming meeting in Turkey at the invitation of Turkish side as per mutually agreed schedule.

    Culture and Tourism Cooperation

    Both sides agreed to: Organizing the 4th meeting of Turkey-Pakistan Joint Commission on Tourism.

    Promoting the regular exchange of media delegation.

    Cooperation in the area of Information, Culture, Tourism, Film and drama to further strengthen people to people interaction and brotherly relations with the two countries.

    Initiate Joint-ventures in film production and release of feature films in each other market on reciprocal basis.

    Enhance cooperation between TRT and PTVC/PBC in order to exchange programs, information and expertise on a reciprocal basis.

    Cooperation on restoration of cultural heritage.

    Encouraging joint initiatives for the development, planning and standardization of tourism attractions in Pakistan.

    Providing technical information and support on promotion and marketing in the field of tourism.

    Exchange of culture groups and tourist festivals within the framework of reciprocity.

    Exchange expertise in the fields of archaeology as well as conservation and restoration of archaeological and historical sites as well as museums.

    Education Cooperation

    Both sides agreed on the following by taking into account the applicable legislation of both countries within the bounds of financial and personnel resources:

    Promoting exchanges between universities, technical and vocational institutes and other academic institutes and in this regard continue collaboration on higher education scholarships.

    Promoting the relationship between the Technical and Vocational Training Institutes Schools of Turkey and Pakistan through International Sister Schools practice.

    Sharing of curricula and qualification standards to assist Pakistan in standardization and modernization of its TVET sector.

    Exploring possibilities of training Pakistani TVET teachers in Turkey and in Pakistan to ensure Pakistani TVET teachers acquire modern skills and help them improve the quality standards.

    TIKA will be preparing to establish Centre of Excellence of Hospitality and Tourism management in Islamabad in collaboration with NAVTTC

    Cooperate in the field of curriculum development.

    Both sides agreed to finalize the ongoing negotiations on Memorandum of Understanding between Ministry of Federal education and Professional Training and Turkish Maarif Foundation in the second quarter of 2020.

    Both sides agreed to start negotiations in the second quarter of 2020 and finalize as soon as possible the Cooperation Agreement in the field of Education between the Government of the Republic of Turkey and the Government of the Islamic Republic of Pakistan. The date and place of negotiation will be mutually decided through diplomatic channels.

    Follow-Up

    The two leaders decided to establish two more Joint Working Groups on:

    i. Defence Industry

    ii. Agriculture and Water

    The Joint Working Groups of the High-Level Strategic Cooperation Council shall continue their work to develop specific programmes and projects.

    In this regard, the Joint Working Groups, will meet before the meetings of the High-Level Strategic Cooperation Council at least two times in Ankara, in Islamabad, or through video conference.

    The next meeting of the High-Level Strategic Cooperation Council shall be held in Ankara. The dates shall be agreed upon through diplomatic channels.

    Done in Islamabad on 14 February 2020 in English and Turkish languages, both texts being equally authentic.”

  • Stock market sheds 212 points on selling pressure

    Stock market sheds 212 points on selling pressure

    KARACHI: The stock market fell by 212 points on Friday as selling pressure observed during the trading.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,243 points as against 40,455 points showing a decline of 212 points.

    Analysts at Arif Habib Limited said that similar to what was witnessed yesterday. The market opened on a positive note with +139 points and closed the session in red, with -180 points.

    During the sessions, the index lost 361 points in total but last hour of trading saw some recovery with PSO showing some life, as the news related to Sukuk II broke.

    Overall, selling activity was observed across the board barring few scrips in Banking sector. LOTCHEM announced relatively better results, however, concerns over product margins caused Investors to sell positions.

    Despite having two sessions the trading volumes declined significantly over the day. Transport Sector led the volumes on the bourse with 19 million shares, followed by Chemical (15.3 million) and Technology (13.4 million).

    Among scrips, PIBTL realized 17.5 million shares, followed by LOTCHEM (13.1 million) and HASCOL (9.1 million).

    Sectors contributing to the performance include E&P (-49 points), Tobacco (-38 points), Inv Banks (-31 points), O&GMCs (-28 points), Fertilizer (-23 points) and Banks (+32 points).

    Volumes declined from 197.6 million shares to 117.5 million shares (-41 percent DoD). Average traded value declined by 47 percent to reach US$ 24.5 million as against US$ 46 million.

    Stocks that contributed significantly to the volumes include PIBTL, LOTCHEM, HASCOL, AVN and UNITY, which formed 48 percent of total volumes.

    Stocks that contributed positively include HBL (+48 points), MCB (+24 points), MEBL (+14 points), IGIHL (+9 points) and NATF (+4 points). Stocks that contributed negatively include PAKT (-38 points), DAWH (-30 points), POL (-20 points), ENGRO (-19 points), and OGDC (-14 points).

  • Rupee gains 21 paisas against dollar on improved economic indicators

    Rupee gains 21 paisas against dollar on improved economic indicators

    KARACHI: The Pak Rupee made a substantial gain of 21 paisas on Friday against dollar owing to improved economic indicators and increase in foreign exchange reserves.

    The rupee ended at Rs154.17 to the dollar as compared with previous day’s closing of Rs154.38 in interbank foreign exchange market.

    Currency dealers said that improved numbers of foreign inflows helped the rupee to make gain.

    Pakistan’s liquid foreign exchange reserves have increased by $91 million to $18.735 billion by week ended February 07, 2020, State Bank of Pakistan (SBP) said a day earlier.

    The foreign exchange reserves were at $18.644 billion by week ended January 31, 2020.

    The foreign exchange reserves of the central bank increased by $157 million to $12.431 billion by week ended February 07, 2020 as compared with $12.274 billion a week ago.

    However, the foreign exchange reserves held by commercial banks fell by $66 million to $6.304 billion by week ended February 07, 2020 as compared with $6.37 billion a week ago.

    The foreign currency market was initiated in the range of Rs154.32 and Rs154.38. The market recorded day high of Rs154.37 and low of Rs154.15 and closed at Rs154.38.

    The exchange rate in open market was remained unchanged. The buying and selling of the dollar was recorded at Rs154.20/Rs154.50, same previous day’s closing, in cash ready market.

  • Bank Alfalah declares 19.58% increase in annual profit

    Bank Alfalah declares 19.58% increase in annual profit

    KARACHI: Bank Alfalah Limited has reported a significant 19.58 percent increase in its annual profit for the calendar year 2019, driven by a substantial rise in mark-up income. According to the financial results released on Friday, the bank declared an after-tax profit of PKR 12.7 billion, compared to PKR 10.62 billion in the preceding year.

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  • Fiscal deficit narrows at 2.3% in first half 2019/2020

    Fiscal deficit narrows at 2.3% in first half 2019/2020

    KARACHI: The ministry of finance on Friday said that the fiscal deficit narrowed at 2.3 percent of the GDP during first half (July – December) 2019/2020 as compared with 2.7 percent in the corresponding half of the last fiscal year.

    Analysts at Topline Securities said importantly though, the primary balance during the period clocked in at 0.7 percent of GDP (last year was -0.3 percent of GDP), within the target of 0.6 percent set by the IMF.

    In the second quarter of 2019/2020, the fiscal deficit came in at 1.6 percent of GDP compared to first quarter of current fiscal year deficit of 0.7 percent of GDP.

    All the four provinces recorded a budgetary surplus during the first half and second quarter of the current fiscal year.

    During the first half of 2019/2020, total revenues increased by 39 percent YoY, where the improvement was led by 18 percent YoY higher tax revenues (however less than targeted) and 213 percent YoY higher non-tax revenues.

    Looking into further breakup of revenues, government collected 17 percent YoY higher Direct taxes, 24 percent YoY higher Sales Tax and 68 percent YoY higher Petroleum Levy during first half of the current fiscal year.

    The government hugely benefited from 575 percent YoY higher profits from State Bank of Pakistan (SBP) in the first half of the current fiscal year (also 31 percent QoQ higher in the second quarter of the current fiscal year), which is around 0.8 percent of GDP.

    The fees fetched through the auction of telecom licenses (PTA profits: 607 percent YoY higher in the first half of the current fiscal year) also helped the government achieve the primary balance target.

    On the expenditures front, total expenses increased by 26 percent YoY. Current expenditures increased by 25 percent YoY, where Mark-up Payments were up 46 percent YoY and Defense expenses were up 10 percent YoY. Excluding these items, government’s own expenses increased by 17 percent YoY during the first half of the current fiscal year (also up 49 percent QoQ in second quarter of the current fiscal year).

    _ The development expenditure remained healthy, where growth of 28 percent YoY was witnessed in 1HFY20 and 122 percent QoQ in 2QFY20.

  • Bank Alfalah CEO resigns

    Bank Alfalah CEO resigns

    KARACHI: Nauman Ansari has resigned from the post of Chief Executive Officer (CEO) and a director of Bank Alfalah Limited, a statement said on Friday.

    According to a notification submitted by the bank to Pakistan Stock Exchange (PSX) that Nauman Ansari, CEO Bank Alfalah Limited had tendered his resignation as a director and CEO of the bank due to personal reasons.

    “The board of directors of the bank in its meeting held on February 13, 2020 has resolved to accept the resignation of Nauman Ansari.”

    The vacancy of the post of CEO will be filled by the board of directors in due course, after completing all legal and regulatory formalities.

    “Until that time Nauman Ansari will continue performing his role as President/CEO of the bank,” it said.

  • Pak-Turkey joint working group finalizes MoUs on trade facilitation

    Pak-Turkey joint working group finalizes MoUs on trade facilitation

    ISLAMABAD: The Joint Working Group on Trade and Investment of Pakistan and Turkey was held here on Thursday under the 6th HLSCC.

    Both sides reviewed the existing bilateral trade and agreed to increase the level of economic engagement to mobilize the untapped potential for increasing trade and investment.

    Two MoUs have been finalized by the Joint Working Group: one on Trade Facilitation and Customs Cooperation, and the other to reinforce cooperation in the field of Halal Accreditation.

    Both sides agreed to explore the possibilities of enhancing bilateral trade by mutually beneficial market access and trade facilitation.

    Both sides also agreed to encourage their businessmen to establish Joint Ventures in Industrial Sectors and cooperate in the field of E-Commerce.

    The Ministry of Commerce and Trade Development Authority of Pakistan (TDAP) organised Pakistan-Turkey Business-to-Business (B2B) networking Session on 13th February, 2020 at Islamabad.

    The event was formally inaugurated by Sardar Ahmad Nawaz Sukhera, Secretary, Ministry of Commerce.

    The Secretary welcomed the delegates and emphasized that the warm bilateral relations need to be translated into economic gains for both countries. Later, Prime Minister’s Advisor for Commerce, Abdul Razak Dawood, also visited the venue and met each Turkish delegate.

    He assured them of Ministry of Commerce’s full support for in working in Pakistan and with Pakistani companies.

    The B2B meetings were held in the Engineering, Energy, Tourism, Construction, Defence, Automotive, Chemicals and IT sectors. Around 450 fruitful B2B Meetings were conducted between the visiting Turkish Companies and their Pakistani business counterparts.

  • FBR to examine transaction records of commercial importers: CCIR

    FBR to examine transaction records of commercial importers: CCIR

    KARACHI: Federal Board of Revenue (FBR) will examine transaction records of commercial importers as they are no more under Final Tax Regime (FBR), Badaruddin Ahmed Qureshi, Chief Commissioner Inland Revenue (CCIR), Regional Tax Office (RTO)-II Karachi said.

    He was addressing a seminar on ‘Minimum Tax Implications After the Finance Act, 2019’ organized by Karachi Tax Bar Association (KTBA) on Thursday.

    The chief commissioner said that minimum tax was introduced through Finance Act, 2019 with objectives of documentation of economy and realizing actual potential of tax revenue.

    He said that previously commercial importers were liable to discharge their liability under the FTR and further they were not required to provide any record.

    However, with the introduction of minimum tax the commercial importers will required to provide details of all their goods declaration filed for clearance of their consignments.

    Previously, the FTR was available to persons such as commercial importers, commercial suppliers of goods, contractors, persons deriving brokerage or commission income and persons earning income from CNG stations.

    The tax collected or deducted from these persons has now been made as minimum tax liability except for exporters, persons winning prizes and sellers of petroleum products.
    The chief commissioner said that the taxpayers brought into the minimum tax regime would file their income tax returns and wealth statement for tax year 2020 in September this year.

    Murtaza Qurban, Executive Manager, EY Ford Rhodes, highlighted the changes related to minimum tax brought through the Finance Act, 2019.

    Tax required to be collected on import of goods that are sold in the same condition as they were when imported was treated as final tax.

    The Finance Act, 2018 brought a substantive conceptual shift whereby such tax collection was made “minimum tax”.

    The Finance Supplementary (Second Amendment) Act, 2019 restored the original position whereby tax collected at import stage from commercial importers was again treated as final discharge of tax liability.

    The Finance Act, 2019, however, again introduced amendments through which tax collection at import stage is made “minimum tax” instead of “final tax”.

    As a result of this change, Commercial Importers are now required to compute their financial results for comparison of tax on profits with minimum tax.

    Pursuant to the above amendments, Commercial Importers are now required to file a return of income instead of a statement in terms of section 115 of the Ordinance.

  • FBR extends date to submit stock position up to March 15 for claiming refunds

    FBR extends date to submit stock position up to March 15 for claiming refunds

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed taxpayers to submit their stock position for the period July – September 2019 up to March 15, 2020 in order to claim sales tax refunds under newly only verification and issuance system.

    In an official memorandum issued on Thursday, the FBR condoned the time limit for filing of Annexure – H for the tax period July – September 2019 up to March 15, 2020.

    Annexure-H is a statement for providing stock position by taxpayers along with monthly sales tax return.

    The FBR from July 01, 2019 introduced expeditious payment of sales tax refunds within 72 hours subject to the true filing of Annexure – H.

    Recently, Karachi Tax Bar Association (KTBA) highlighted this issue and urged the tax authorities to resolve for facilitating exporters and manufacturers.

    The KTBA pointed out that as per the amendments made in Sales Tax Rules, 2006 vide SRO no. 918(I)/2019 dated August 7, 2019, mechanism for expeditious processing of refund claim has been devised only for manufacturers-cum- exporters.

    As per the Rules, refund will be treated as having been filed only after filing of Annexure H of the Sales Tax return, for which deadline of 120 days has been prescribed in the Rules and the same can be extended for a period of 60 days on the basis of approval from the Commissioner.

    However, the rules are silent about the mechanism for processing of Sales Tax refunds in case Annexure H has not been filed by manufacturer-cum-exporter for any reason. Considering the legal and legitimate right of the taxpayer to claim adjustment / refund of the input tax, either of the following two option be considered by the FBR for facilitation of exporters:

    Allow filing of Annexure H without any time limit [present time limit of 4 months be abolished and taxpayer be allowed to claim refund as and when required] ii. Incase present limit of 4 months cannot be abolished, registered persons be allowed at least to alternatively file refund on annual basis after the end of the tax year.

    Apart from the above, Annexure H is only being allowed to be filed to taxpayers who have filed the said Annexure from sales tax returns of July 2019 and onwards. Instead of claiming refund, some taxpayers have reported sales tax carried forward balance in their sales tax returns from July 2019 onwards. In case they now intend to file Annexure H from the current month,

    FBR’s online portal does not allow such taxpayers to enter opening balance of inventory / raw materials as the said field in blocked for editing. This limitation should be removed and taxpayers should be allowed to file Annexure H for any specific month, for which they intend to claim refund.

    From apparent mechanism being followed by the system, it appears that those taxpayers who have not filed Annexure H for the month of July 2019 will never be allowed to file Annexure H for any subsequent month. This apparent anomaly should be resolved at earliest.