Author: Mrs. Anjum Shahnawaz

Pakistan’s weekly forex reserves increase by $149.7 million

KARACHI: The total liquid foreign exchange reserves of the country have increased by $149.7 million to $15.142 billion by week ended October 11, 2019 as compared with $14.992 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

The reserves held by State Bank witnessed increase of $56.1 million to $7.813 billion by week ended October 11 as compared with $7.757 billion.

The reserves held by commercial banks increased by $93.6 million to $7.329 billion as compared with $7.235 billion.

October 17, 2019
FBR launches Urdu version official website

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday launched its official website in national language in order to aware large population of the country to understand taxation issues.

Chairman FBR Syed Muhammad Shabbar Zaidi inaugurated the Urdu website of FBR.

The Urdu version of website has been launched to facilitate the taxpayers.

Member FATE Mustafa Sajjad Hassan and Chief FATE Tehmina Aamer briefed the Chairman FBR about the features of the Urdu website.

The senior officers of FBR HQ, Member Administration Nausheen Javed Amjad, Member IR Operations Seema Shakil, Member Customs Operations Jawwad Awais Agha, Special Assistant to Chairman Zubair Bilal were also present on the inauguration.

The Urdu website offers online facilitation and services to the taxpayers about Income Tax, Sales Tax, Customs and FBR Maloomaat.

The Urdu version contains special features which contain useful reservoir of information relating to taxation and customs.

With the launch of Urdu website, the people can not only file their complaints in Urdu but can also seek responses of their queries in the national language.

The website offers facilitation to the people to read the Tax and Customs laws and rules, SROs and Circulars in Urdu language.

Chairman FBR appreciated the efforts of FATE Wing officers and staff who worked tirelessly to make the launch of Urdu website possible in the shortest possible time for the facilitation of the taxpayers.

Chairman FBR stated on the inauguration that FBR will soon achieve complete automation in all areas which will certainly bring great ease for the taxpayers in future.
Urdu website can be accessed by clicking on the Urdu button on the FBR’s website fbr.gov.pk.

The Urdu website can also be logged into by accessing urdu.fbr.gov.pk.

October 17, 2019
Foreign investment grows by 51pc during first quarter

KARACHI: The total inflow of foreign private investment increased by 51 percent growth during first quarter (July-September) of 2019/2020, State Bank of Pakistan (SBP) said on Thursday.

The total foreign private investment increased to $565 million during the first quarter of current fiscal year as compared with $374 million in the same period of the last fiscal year.

The foreign direct investment (FDI) posted nominal decline of 3.1 percent to $542 million during the period under review as compared with $559 million in the same period of the last fiscal year.

The inflows under FDI were $763 million during July – September 2019, which were 5.4 percent lower when compared with inflows of $806 million in the same period of the last year.

The outflows under FDI were declined by 11 percent to $221 million as compared with $247 million.

The foreign investment in capital market witnessed 112.2 percent increase during the first quarter of current fiscal year.

The portfolio investment recorded $22.7 million inflows during July – September 2019 as against outflows of $185 million in the corresponding period of the last year.

October 17, 2019
Stock market ends down by 383 points on selling pressure

KARACHI: The stock market ended with decline of 383 points on Thursday owing to selling pressure seen in the market.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,899 points as against 34,281 points showing a decline of 383 points.

Analysts at Arif Habib Limited said that the market opened on a positive note with +12 points and 0.4 million shares.

The benchmark index went up to 80 points earlier in the session, which was followed by growing selling pressure.

The only stock that mattered today was clearly LOTCHEM, which realized trading volume of 59.6 million shares (approx. 16 percent of its free float and 43 percent of the total trading volume of today).

No other stock managed to cross even 6 million share traded volume. LOTCHEM announced 9 million financial results, which was largely inline with street estimates, however, cherry on top was 15 percent dividend that matched last year’s declaration.

On the whole, index lost 383 points with a total volume of 138 million shares, most of which was contributed by Chemical sector and followed by Technology (8.1 million) and Power (7.9 million). Among scrips, KEL (5.2 million) and TRG (4.2 million) followed LOTCHEM.

Sectors contributing to the performance include Banks (-147 points), E&P (-87 points), Cement (-36 points), Pharma (-33 points) and O&GMCs (-23 points).

Volumes declined from 151.4 million shares to 137.9 million shares (-9 percent DoD). Average traded value also declined by 23 percent to reach US$ 24.1 million as against US$ 31.4 million.

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

Stocks that contributed positively include KAPCO (+7 points), COLG (+7 points), ICI (+4 points), MUREB (+4 points) and EFERT (+3 points). Stocks that contributed negatively include HBL (-54 points), UBL (-39 points), MARI (-26 points), PPL (-25 points), and LUCK (-19 points).

October 17, 2019
Rupee gains 13 paisas against dollar as SBP issues anti-money laundering framework

KARACHI: The Pak Rupee gained 13 paisas against dollar on Thursday owing to guidelines issued by the central bank to prevent trade based money laundering.

The rupee ended at Rs155.89 to the dollar from previous day’s closing of Rs156.02 in interbank foreign exchange market.

The SBP on October 15, 2019 issued framework to create deterrence against money laundering and terror financing through trade related transactions.

The central bank made it mandatory for banks to ensure customers due diligence while approving export or import forms for issuance of amount.

On the other hand the government also launched crackdown against hoarding of the US dollar. In this connection a day earlier the Federal Board of Revenue (FBR) issued notices to foreign exchange companies to provide information of those persons who purchased dollars during recent past.

The government believed that many persons had purchased dollars but kept the foreign currency on hope of further depreciation of the local currency.

The market sources said that falling import bill was another component for rupee appreciation.

The foreign exchange market was initiated in the range of Rs155.95 and Rs156.00. The market recorded day high of Rs155.98 and low of Rs155.85 and closed at Rs155.89.

The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs155.70/Rs156.20, the same previous day’s level, in cash ready market.

October 17, 2019
Rupee gains 11 paisas against dollar in early trade

KARACHI: The Pak Rupee gained 11 paisas against dollar in early trade on Thursday owing to guidelines issued by the central bank to prevent trade based money laundering.

The exchange rate was recorded at Rs155.91 to the dollar in early trade in interbank foreign exchange market. The rupee ended Rs156.02 to the dollar in last day trading.

The SBP on October 15, 2019 issued framework to create deterrence against money laundering and terror financing through trade related transactions.

The central bank made it mandatory for banks to ensure customers due diligence while approving export or import forms for issuance of amount.

On the other hand the government also launched crackdown against hoarding of the US dollar. In this connection a day earlier the Federal Board of Revenue (FBR) issued notices to foreign exchange companies to provide information of those persons who purchased dollars during recent past.

The government believed that many persons had purchased dollars but kept the foreign currency on hope of further depreciation of the local currency.

The market sources said that falling import bill was another component for rupee appreciation.

October 17, 2019
Notices for filing income tax returns of past 10 years may be issued

ISLAMABAD: Tax officials have been empowered to issue notices to taxpayers for filing income tax returns of past 10 years.

Sources in Federal Board of Revenue (FBR) said that there are many cases had been identified where persons had accumulated assets and making huge amount transactions but not filing their income tax returns and wealth statements.

The sources said that the tax authorities may invoke Section 114(5) of the Income Tax Ordinance, 2001 for the purpose to compel such persons to file their returns of past 10 years.

The Section 114(5) of the Ordinance stated: “A notice under sub-section (4) may be issued in respect of one or more of the last five completed tax years or assessment years.

“Provided that in case of a person who has not filed return for any of the last five completed tax years, notice under sub-section (4) may be issued in respect of one or more of the last ten completed tax years.”

Sub-Section (4) of Section 114 of the Ordinance stated that subject to sub-section (5), the Commissioner may, by notice in writing, require any person who, in the Commissioner’s opinion, is required to file a return of income under this section for a tax year or assessment year but who has failed to do so to furnish a return of income for that year within thirty days from the date of service of such notice or such longer or shorter period as may be specified in such notice or as the Commissioner may allow.

October 17, 2019
PTCL declares 14.33 percent growth in after tax profit

KARACHI: Pakistan Telecommunication Limited (PTCL) on Wednesday declared 14.33 percent growth in profit after tax for the nine-month period ended September 30, 2019.

The company announced profit after tax of Rs5.46 billion during January – September 2019 as compared with Rs4.78 billion in the same period of the last year.

The company announced Rs1.07 as earnings per share (EPS) for the period under review as compared with Rs0.94 EPS of the same period in last year.

The total revenue of the company was flat at Rs43.774 billion in January – September 2019 as compared with Rs53.55 billion in the corresponding period of the last year.

PTCL posted gross profit of Rs13.179 billion during nine-month period ended September 30, 2019 as compared with Rs13.721 billion in the same period of the last year.

The administrative, general and selling/marketing expenses of the company were at Rs8.73 billion during January – September 2019 as compared with Rs8.478 billion in the same period of the last year.

Other income of the company increased to Rs3.82 billion as compared with Rs2.18 billion.

The profit before tax for the period was at Rs8.03 billion as compared with Rs6.927 billion in the same period of the last year.

October 17, 2019
UBL posts 48 percent increase in after tax profit

KARACHI: United Bank Limited (UBL) has announced 48 percent increase in after tax profit to Rs14.4 billion in nine-month period ended September 30, 2019.

The net profit of the bank was Rs9.73 billion for the period January – September 2018, according to announcement on Wednesday.

UBL also announced Rs11.77 earning per shares (EPS) for the period as compared with Rs7.95 EPS in the same period of the last year.

Net mark-up / interest income of the bank registered increase to Rs45.34 billion during first three quarters of financial year 2019 as compared with Rs41.88 billion in the corresponding quarters of the last year.

Total mark-up/interest expenses of the bank increased to Rs29.24 billion as against previous year’s Rs28.155 billion.

UBL allowed provisioning and write-offs to the tune of Rs6.82 billion during the period under review as compared with Rs7.44 billion in the same period of the last year.

Profit before taxation of the bank was Rs26.3 billion during January – September 2019 as against Rs16.49 billion.

The bank discharged tax liability to the tune of Rs11.9 billion for nine-month period ended September 2019 as compared with Rs6.76 billion paid in the corresponding period of the last year.

October 17, 2019
Tax officials empowered to recover short payment without notice

KARACHI: Tax officials have been authorized to recover short payment of sales tax through freezing bank accounts of taxpayers without serving show cause notice.

Officials in Federal Board of Revenue (FBR) said that the officers of Inland Revenue had been authorized to make recovery of short payment of sales tax as declared in return of a taxpayer by taking measures including freezing bank account without issuing a show cause notice.

The officials said that under Section 11A of Sales Tax Act, 1990, the powers of Inland Revenue officers had been explained.

Section 11A: Short paid amounts recoverable without notice

Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:

Provided that no penalty under section 33 of this Act shall be imposed unless a show cause notice is given to such person.

October 17, 2019