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Author: Mrs. Anjum Shahnawaz

  • Rupee ends unchanged for third straight day

    Rupee ends unchanged for third straight day

    KARACHI: The Pak Rupee ended remained unchanged for third consecutive day against the dollar on Wednesday owing to lackluster trading activities.

    The rupee ended Rs154.57 to the dollar, same previous day’s level, in interbank foreign exchange market.

    Currency dealers said that the rupee had maintained the levels as importers and corporate buyers were cautious. They said that due to coronavirus outbreak in China the international oil prices had fallen.

    Besides, the health alerts issued by the government authorities due to coronavirus also prevented fresh orders to import Chinese goods.

    The foreign currency market was initiated in the range of Rs154.55 and Rs154.60. The market recorded day high of Rs154.59 and low of Rs154.55 and closed at Rs154.57.

    The exchange rate in open market was also remained unchanged. The buying and selling of the dollar was traded at Rs154.50/Rs154.80, the same previous day’s level, in cash ready market.

  • High policy rate stifles economic activity; dwindles profits, job cuts

    High policy rate stifles economic activity; dwindles profits, job cuts

    KARACHI: High policy rate has stifled the economic activity, resulting in dwindled profits and job cuts, this was noted in the financial results of Honda Atlas Cars (Pakistan) Limited for the period of third quarter ended December 2019.

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  • Meezan Bank signs agreement for e-ticket payments

    Meezan Bank signs agreement for e-ticket payments

    KARACHI: Meezan Bank, Pakistan’s leading Islamic bank has recently entered into a partnership with Bookme.pk – Pakistan’s first and largest online ticketing platform that helps customers buy bus, airline and event tickets online using the Bank’s state-of-the-art Internet & Mobile Banking channels.

    The partnership will enable the Bank’s customers to simply log on to their Meezan Bank Internet and Mobile Banking Application portals to conduct secure online transactions and instantly buy tickets by directly checking out with their existing Meezan Bank accounts.

    In addition, the customers will also get to avail best value fares and discounts from Bookme.pk’s large portfolio of digital tickets.

    Commenting on this partnership, Meezan Bank’s Head of Alternate Distribution Channels, Shariq Mubeen said: “Meezan Bank is committed to facilitating advanced and innovative methods of payments that can offer greater convenience to its customers. This initiative with Bookme.pk will provide them with an instant and convenient way to purchase great value tickets through our seamless ADC Channels.”

    “We strive to curate a seamless ticket booking experience for our customers as a leading disrupter in the e-ticketing space in Pakistan. We are very proud to announce the onboarding of Meezan Bank, the first and largest Islamic Bank in Pakistan, as our digital ticketing partner for the enablement of e-ticketing services across Pakistan. We look forward to a mutually beneficial strategic partnership with Meezan Bank and further disrupting the e-ticketing industry across Pakistan,” said Faizan Aslam – CEO, Bookme.pk.

  • Stock market declines by 240 points on selling pressure

    Stock market declines by 240 points on selling pressure

    KARACHI: The stock market fell by 240 points on Tuesday owing to selling pressure seen in various scrips. The benchmark KSE-100 index of Pakistan Stock Exchange closed at 42,299 points as against 42,539 points showing a decline of 240 points.

    Analysts at Arif Habib Limited said that the market dipped today by 386 points during the session and closed the session -240 points after staging a short recovery.

    Cement sector continued performing well, whereas Oil & Gas chain remained under pressure due to decline in International crude oil prices.

    Global stock markets have roiled due to the outbreak of NCV in China that also affected commodity markets.

    Banking sector stocks also sustained selling pressure that kept the stock prices on the lower side.

    Cement sector continued leading the volumes on the bourse with 60.9 million shares, followed by O&GMCs (27.6 million) and Banks (12.4 million).

    Among scrips, MLCF led the table with 29.7 million shares, followed by HASCOL (25.4 million) and UNITY (9.9 million).

    Sectors contributing to the performance include Banks (-103 points), E&P (-50 points), Fertilizer (-42 points), Inv Banks (-20 points), Chemical (+23 points), Autos (+16 points).

    Volumes dipped by 5 percent to reach 189.0 million shares against 198.5 million the other day. Average traded value, however, increased by 2 percent to reach US$ 43.4 million as against US$ 42.5 million.

    Stocks that contributed significantly to the volumes include MLCF, HASCOL, UNITY, DGKC and CHCC, which formed 42 percent of total volumes.

    Stocks that contributed positively include ICI (+12 points), EPCL (+9 points), INDU (+8 points), ATLH (+5 points) and HCAR (+5 points). Stocks that contributed negatively include HBL (-34 points), MCB (-26 points), PPL (-22 points), DAWH (-19 points), and ENGRO (-18 points).

  • Rupee ends unchanged

    Rupee ends unchanged

    KARACHI: The Pak Rupee ended unchanged against dollar on Tuesday owing to lackluster demand for import payments, dealers said.

    The rupee ended Rs154.57 to the dollar, the same previous day’s level, in interbank foreign exchange market.

    The dealers said that importers were cautious in buying dollar due to decline in international oil prices and outbreak of coronavirus in China.

    The foreign currency market was initiated in the range of Rs154.58 and Rs154.60. The market recorded day high of Rs154.59 and low of Rs154.54 and closed at Rs154.57.

    The exchange rate in open market witnessed gain in rupee value. The buying and selling of dollar was recorded at Rs154.50/Rs154.80 from last day’s closing of Rs154.60/Rs154.90 in cash ready market.

  • SBP enhances borrowing limit under LTFF to Rs5 billion

    SBP enhances borrowing limit under LTFF to Rs5 billion

    KARACHI: The State Bank of Pakistan (SBP) has enhanced the maximum borrowing limit under Long Term Financing Facility (LTFF) to Rs5 billion from Rs2.5 billion.

    In a statement on Tuesday, the central bank said that it had extended the scope of LTFF to cover all permissible export oriented sectors.

    This step is aimed at setting up of diverse export oriented projects in Pakistan and to boost exports in multiple sectors.

    Further, to accommodate enhanced financing requirements of exporters for setting up long term export oriented projects, maximum limit of Rs. 2.5 billion has been enhanced to Rs. 5 billion per project under LTFF.

    In line with the above measure, SBP has also provided additional concessional financing of Rs.200 billion to banks including Rs. 100 billion under Long Term Financing Facility (LTFF) and Rs. 100 billion under Export Refinance Scheme (EFS), to be utilized by June 30, 2020.

    Going forward, to further promote SME exporters, SBP in consultation with the relevant stakeholders, is in the process of devising an elaborate mechanism for the allocation of LTFF and EFS to SME exporters.

    These changes are likely to be announced in March 2020.

  • SBP allows 100% advance payment for import

    SBP allows 100% advance payment for import

    KARACHI: State Bank of Pakistan (SBP) has allowed 100 percent advance payment for import of various goods against letter credit.

    The SBP in a statement on Tuesday said that with a view to facilitate importers, SBP has allowed banks to make advance payment up to USD 10,000/-, or equivalent thereof, per invoice on behalf of commercial importers for import of raw material, spare parts and machinery.

    Besides, SBP has also allowed banks to make payments on behalf of commercial importers for imports of raw materials and spare parts on Open Account.

    In addition, SBP has also enhanced the existing limit of 50 percent advance payment, allowed to manufacturing concerns, for import of plant, machinery, spare parts and raw materials etc. against letter of credit, to 100 percent.

    In December 2019, SBP allowed advance payment of up to 50 percent of the value of imports against letter of credit to manufacturing concerns for import of plant, machinery, spare parts and raw material etc.

    After the implementation of a market based exchange rate system, the balance of payments has witnessed significant improvement. In the first six months of the current fiscal year, the current account deficit has contracted by 75 percent to US$ 2.15 billion.

    This improvement is helping to further relax some of the restrictions on imports by SBP.

    The latest measures, taken today, are in continuation of facilitating export-oriented industries and manufacturing concerns in the backdrop of ease of doing business and promoting exports’ growth.

    These measures will further contribute in improving economic outlook of the country.

  • SBP keeps policy rate unchanged at 13.25%

    SBP keeps policy rate unchanged at 13.25%

    KARACHI: The State Bank of Pakistan (SBP) announced on Tuesday that it has decided to maintain the policy rate at 13.25%. SBP Governor Dr. Raza Baqir conveyed this decision, which was made during the Monetary Policy Committee (MPC) meeting. The SBP emphasized that the outlook for inflation remains steady, prompting the committee to retain the current monetary policy stance.

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  • FBR advised to allow sales tax refunds on local supplies

    FBR advised to allow sales tax refunds on local supplies

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday advised Federal Board of Revenue (FBR) to allow sales tax refund to manufacturers making local supplies.

    The tax bar in a letter to FBR suggested in order to promote diversification of exports instead of relying solely on 5 export oriented sectors, you are requested to kindly issue necessary clarification/make necessary amendment to the effect that exporter-cum-manufacturers include all manufactures engaged in local as well export sales.

    The tax bar said that apart from five export oriented sectors, conditional facility for expeditious processing of sales tax refunds through FASTER system has been given to exporter-cum-manufacturers, however, as per Income Tax Circular no. 10 of 2008 dated August 27, 2008, the term exporter-cum-manufacturers means those manufacturers whose exports during the preceding year are more than 80 percent.

    The KTBA pointed out that input tax on fixed assets is adjusted against the minimum sales tax liability under section 8B of the Act only incase where other normal input tax [on goods / services] is less than 90 percent of the Output Tax, however, in case any unadjusted / unutilized input tax relating to fixed assets is carried forward to subsequent months than the same is treated at par with normal input tax and not being treated as input tax on fixed assets.

    Therefore it suggested that in order to allow fair treatment of input tax on fixed assets and in order to promote capital intensive investment, kindly direct concerned person to make necessary amendments in online sales tax return portal to treat input tax on fixed assets as part of the input tax on fixed assets even if the same is carried forward to subsequent months.