Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • 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.

  • Oil prices fall by 15% since coronavirus outbreak

    Oil prices fall by 15% since coronavirus outbreak

    KARACHI: The international oil prices have fallen by around 15 percent since the outbreak of deadly coronavirus, analysts at Arif Habib Limited said on Tuesday.

    (more…)
  • Taxpayers can make payment in installments

    Taxpayers can make payment in installments

    KARACHI: Taxpayers have option to pay due liability in installments on explaining plausible reasons to the concerned Commissioner of Inland Revenue.

    Sources in Federal Board of Revenue (FBR) Monday said that the tax payable by a taxpayer on the taxable income of the taxpayer including the tax payable under section 113 or 113A of Income Tax Ordinance, 2001 for a tax year shall be due on the due date for furnishing the taxpayer’s return of income for that year.

    However, where any tax is payable under an assessment order or an amended assessment order or any other order issued by the commissioner under the Ordinance, a notice shall be served upon the taxpayer in the prescribed form specifying the amount payable and thereupon the sum so specified shall be paid within thirty days from the date of service of the notice:

    Provided that the due date for payment of tax payable under sub- section (7) of section 147 shall be the date specified in sub-section (5) or sub-section (5A) or first proviso to sub-section (5B) of section 147.

    “Upon written application by a taxpayer, the Commissioner may, where good cause is shown, grant the taxpayer an extension of time for payment of tax due under sub-section (2) or allow the taxpayer to pay such tax in instalments of equal or varying amounts as the Commissioner may determine having regard to the circumstances of the case.”

    Where a taxpayer is permitted to pay tax by instalments and the taxpayer defaults in payment of any instalments, the whole balance of the tax outstanding shall become immediately payable.

    The grant of an extension of time to pay tax due or the grant of permission to pay tax due by instalments shall not preclude the liability for default surcharge arising under section 205 from the due date of the tax under sub-section (2).

  • Centralized repository to facilitate effective settlement of insurance claims: SECP

    Centralized repository to facilitate effective settlement of insurance claims: SECP

    KARACHI: Pakistan’s first ever centralized information repository has been launched on Monday for life insurance sector.

    This will complement government’s objectives of providing ease of doing business and enhanced consumer protection.

    Aamir Khan, Chairman, Securities and Exchange Commission of Pakistan (SECP) in his keynote address said that the initiative would augment technological advancement in the insurance industry while ensure facilitation and protection of policyholders.

    He hoped that it would facilitate effective settlement of insurance claims and cause reduction in mis-selling and policy churning.

    “We, at the SECP are very mindful of our responsibilities as a progressive regulator that needs to help the industry to develop and grow, and simultaneously, create linkages between its regulated sectors and the real economy”, Khan said and underlined that the centralized documentation of data in digitalized form is critical to achieving transparency, speed and cost effectiveness.

    He informed participants that the SECP has already embarked upon a transformational journey of digitalization through its recently launched initiative – ‘Leading Efficiency through Automated Prowess (LEAP).

    This will enable 100 percent end-to-end automation, complete integration with multiple government agencies for one-time registration, and digitalization and storage of financial statements of companies through introduction of Extensible Business Reporting Language (XBRL).

    The repository that will function under the regulatory impetus of SECP will hold critical data of life insurance policies electronically.

    Shaukat Hussain, Commissioner Insurance, Moin M. Fudda, Chairman, Centralized Depository Company (CDC), Badiuddin Akber, Chief Executive Officer, CDC, senior officials from SECP, CDC, CEOs and representatives of life insurers, non-life insurers, and relevant stakeholders attended the launching ceremony.

    The Centralized Repository will enable electronic storage of life insurance and family takaful policies and serve as central point for critical policyholder related information.

    It will aid the underwriting function of the insurers to determine the appropriateness of an insurance policy, the level of insurance coverage and affordability of the insurance policy for the customer which will ultimately result in need-based selling and substantial reduction in mis-selling.

  • Coronavirus threat: KCCI demands waiver of demurrage, detention charges on Chinese consignments

    Coronavirus threat: KCCI demands waiver of demurrage, detention charges on Chinese consignments

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has demanded the government authorities to waive demurrage and detention charges on Chinese consignments that are stopped due to threat of coronavirus.

    KCCI President Agha Shahab Ahmed Khan in a statement urged the Ministry of Maritime Affairs, Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) to come up with some kind of a ‘Special Policy’ to save the importers of various goods and commodities from suffering severe losses due to ban imposed on imports from China because of the outbreak of corona virus, COVID-19.

    He urged the relevant authority to issues notification in which the port authorities and all terminal operators must be advised to refrain from imposing demurrage and detention charges on those consignments which have already arrived at the Pakistani ports from China but were not being cleared.

    “Any demurrage or detention charges already applied on such consignments must immediately be waived off which would certainly be widely welcomed by the business community”, he added.

    He said that many importers, while seeking KCCI’s assistance, informed that their imported consignments from China have been put on hold at the ports in order to prevent the outbreak of deadly corona virus in Pakistan which has terribly affected capital of Hubei province, Wuhan and resulted in hundreds casualties so far besides spreading further in more than 20 countries.

    “Many import related documents have also not been received by relevant importers as no parcels were arriving from China and other affected countries, making it impossible for the importers to timely fulfill all the documentation formalities which are required for clearance of imported goods hence their consignments remain blocked at the ports and are resulting in additional demurrage and detention charges”, he said.

    “We fully understand the sensitivity of the issue and support the government’s moves to save Pakistan from the outbreak of the COVID-19 but the importers should not be penalized and relief has to be provided to the perturbed traders by waiving the demurrage and detention charges.”

    He said that out of a total bilateral trade of around US$12 billion between Pakistan and China, around US$6 billion has been transacted so far but the downfall in trade would certainly appear by the end of current fiscal year and US$12 billion mark will not be achieved due to complete suspension of trade between the two countries.

    “The outbreak of corona virus is an opportunity for the local industry as we have to look into the possibility of what we can produce on our own which was previously being imported from China prior to suspension of trade”, he added.

    He stressed that the lethal virus has been rapidly spreading in many countries around the world including some countries bordering Pakistan hence, the government will have to take stringent measures to save our country from the eruption of deadly virus.

    He hoped that the relevant departments would realize the gravity of the situation and relief will soon be provided to the importers as soon as possible by urging the port authorities not to demand any demurrage and detention charges from those importers whose goods were arriving from China which would certainly be welcomed.

  • SBP directs banks to collect Hajj applications on coming weekly holidays

    SBP directs banks to collect Hajj applications on coming weekly holidays

    KARACHI: State Bank of Pakistan (SBP) on Monday directed banks to collect Hajj applications and other dues on coming weekly holidays on Saturday February 29 and Sunday March 01.

    A statement issued by the SBP stated that in order to facilitate the intending pilgrims to deposit application forms along with dues for Hajj 2020, 13 authorized banks had been directed to keep all their designated branches open from 10:00 a.m. to 2:30 p.m. on Saturday and Sunday (i.e. 29-02-2020 and 01-03-2020) throughout the country.

    Earlier, in terms of Hajj Policy 2020, the Ministry of Religious Affairs & Interfaith Harmony has authorized 13 banks (viz. National Bank of Pakistan, Habib Bank, United Bank, MCB Bank, Allied Bank, Bank of Punjab, Bank Alfalah, Zarai Taraqiati Bank, Faysal Bank, Askari Bank, Bank Al-Habib, Habib Metropolitan Bank and Meezan Bank) to collect application forms along with dues from intending pilgrims for Hajj 2020 w.e.f. February 25, 2020 till March 06, 2020 throughout the country.

  • Rupee ends flat against dollar

    Rupee ends flat against dollar

    KARACHI: The Pak Rupee ended flat against dollar on Monday amid demand for import and corporate payments.

    The rupee ended Rs154.21 to the dollar from last Friday’s closing of Rs154.20 in interbank foreign exchange market.

    Analysts said that improved indicators of lower import bill and shrinking current account deficit helped the positive sentiments n the market.

    They said that the rupee witnessed depreciation early in the day due to higher demand for the dollar as the market opened after two days weekly holiday.

    The exchange rate in open market remained unchanged. The buying and selling of the dollar was recorded at Rs154.10/Rs154.40, the same closing level of last Friday, in cash ready market.

  • Stock market plunges 1105 points on coronaviruse fears

    Stock market plunges 1105 points on coronaviruse fears

    KARACHI: The stock market plunged by 1,105 points or 2.7 percent on Monday owing to rising coronavirus cases in neighboring country.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,144 points as against 40,249 points showing a decline of 1105 points (-2.7 percent DoD).

    Analysts at Arif Habib Limited said that the market bled a total of 1169 points during the session and closed 1105 points down from LDCP.

    Concerns from pending IMF Executive Board’s decision to developing and worsening situation at border with Iran due to Corona virus and decline in international crude oil prices caused panic among investors.

    Foreign investors have largely been sellers during the past couple of sessions due to possible de-tracking and reversal of rupee appreciation that the currency has realized so far since last quarter.

    Barring 48 scrips in green and 17 scrips unchanged, a total of 271 scrips on the Bourse saw decline across the board including E&P, Refineries, OMCs, Cement, Steel and Banking sectors being the prominent ones.

    O&GMCs topped the volumes with 18.3 million shares, followed by Banks (17.4 million) and Cement (17.1 million).

    Among scrips, HASCOL realized volumes of 14.4 million, followed by UNITY (11.5 million) and KEL (10.6 million).

    Sectors contributing to the performance include Banks (-311 points), E&P (-188 points), Fertilizer (-109 points), Power (-94 points) and Cement (-82 points).

    Volumes increased from 85.6 million shares to 144.1 million shares (+68 percent DoD). Average traded value also increased by 54 percent to reach US$ 35.7 million as against US$ 23.2 million.

    Stocks that contributed significantly to the volumes include HASCOL, UNITY, KEL, BOP and MLCF, which formed 35 percent of total volumes.

    Stocks that contributed positively include NESTLE (+37 points), MUREB (+5 points), MTL (+4 points), DCR (+1 points) and EFUG (+1 points). Stocks that contributed negatively include PPL (-86 points), HBL (-78 points), HUBC (-67 points), UBL (-67 points), and OGDC (-60 points).

  • FBR withdraws 40% regulatory duty on sugar import

    FBR withdraws 40% regulatory duty on sugar import

    ISLAMABAD: The government has withdrawn 40 percent regulatory duty on import of sugar and sugar products.

    The FBR issued SRO 127(I)/2020 dated February 24, 2020 to withdraw the regulatory duty of 40 percent on import of commodities falling under Customs Harmonized Code Chapter of 17.01.

    The government imposed 40 percent regulatory duty on import of sugar through SRO 680(I)/2019.

    However, through the latest SRO 127(I)/2020 the regulatory duty has been withdrawn.

    It is worth mentioning that the recently the retail prices in the local markets surged abnormally. Some quarters had suggested the government to import the commodity to meeting the local demand and discourage hoarding.

    However, the Economic Coordination Committee in its latest meeting had rejected the proposal to import sugar as sufficient quantity was available in the country.

    Industry sources said that importers would able to import sugar from international market without levy of regulatory duty.