Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Stock market gains 114 points in narrow band trading

    Stock market gains 114 points in narrow band trading

    KARACHI: The stock market gained 114 points on Tuesday while trading in narrow band during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,199 points as against 33,085 points showing an increase of 114 points.

    Analysts at Arif Habib Limited said that the market traded largely in a narrow band, oscillating between +155 points and -124 points, and ending the session +114 points.

    Low volumes were witnessed amidst selling pressure in Cement, Steel, Banking sectors. Concerns over activity on Borders with India, political uncertainty due to JUI (F)’s protest and FATF reverberated today.

    Chemical sector led the volumes with 13.4 million shares, followed by Cement (10.9 million) and Technology (7.5 million).

    Among scrips, LOTCHEM garnered 10.8 million shares in trading volume, followed by TRG (4.1 million) and FFC (3.4 million). Market seemed to lack luster, paying little interest in better than expected results announced recently.

    Sectors contributing to the performance include Banks (+38 points), Power (+19 points), E&P (+15 points), Food (+13 points), O&GMCs (+11 points) and Fertilizer (-10 points).

    Volumes declined from 130.3 million shares to 83.6 million shares (-36 percent DoD). Average traded value also declined by 36 percent to reach US$ 20.4 million as against US$ 1.8 million.

    Stocks that contributed significantly to the volumes include LOTCHEM, TRG, FFBL, HASCOL and DGKC, which formed 29 percent of total volumes.

    Stocks that contributed positively include HBL (+22 points), HUBC (+18 points), MCB (+15 points), NESTLE (+15 points) and DAWH (+13 points). Stocks that contributed negatively include ENGRO (-10 points), BAFL (-7 points), DGKC (-6 points), FFBL (-6 points), and JLICL (-6 points).

  • Rupee gains three paisas amid demand for import payment

    Rupee gains three paisas amid demand for import payment

    The Pakistani Rupee experienced a modest gain of three paisas against the US Dollar on Tuesday, reflecting demand pressures for import and corporate payments in the local market.

    (more…)
  • Wealth Statement Form: mandatory for filing along with annual return

    Wealth Statement Form: mandatory for filing along with annual return

    KARACHI: Filing of wealth statement is mandatory for making annual return form valid. Taxpayers are required to file asset declaration under Section 116 of Income Tax Ordinance, 2001.

    (more…)
  • No legal proceeding against customs officials while exercising powers

    No legal proceeding against customs officials while exercising powers

    KARACHI: Customs laws protect officials from legal proceedings in case anything done in good faith while exercising powers.

    The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating amendment brought through Finance Act, 2019.

    Section 217 of the Customs Act, 1969 provides protection of action taken under the Act.

    Section 217: Protection of action taken under the Act

    Sub-Section (1) :No suit, prosecution or other legal proceeding shall lie against the Federal Government or any public servant for anything which is done or intended to be done in good faith in pursuance of this Act or the rules and notwithstanding anything in any other law for the time being in force no investigation or enquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or directions made or issued thereunder without the prior approval of the Board.
    Sub-Section (2): No suit shall be brought in any civil court to set aside or modify any order passed, any assessment made, any tax levied, any penalty imposed or collection of any tax made under this Act.

    Section 218: Notice of proceedings

    No proceeding in a court other than a suit shall be commenced against any officer of customs or any other person exercising any powers conferred or discharging any duties imposed by or under this Act for anything purporting to be done in pursuance of the provisions of this Act or the rules without giving to such officer or person a month’s previous notice in writing of the intended proceeding and of the cause thereof; or after the expiration of one year from the accrual of such cause:

    Provided that this section shall not be deemed to apply in the case of the prosecution of an officer of customs or such other person for an offence punishable under this Act.

  • Sale tax refunds to be released on declared stock statement: FBR

    Sale tax refunds to be released on declared stock statement: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday said that refunds will be issued only on stock statement declared by sales tax registered persons.

    The FBR issued Sales Tax Circular No. 04 of 2019 to explain the issuance of refund payment under FASTER refund module.

    The FBR said that refund will be processed on the basis of entries in Annex-H.

    Annexure H is a stock statement declared by a registered taxpayer through his return.

    According to the FBR this annexure is mandatory for refund claimants and they may submit this statement within 120 days from due date of return filing of particular tax period; other registered persons are encouraged to provide these details.

    The system will show and fill the relevant columns of those items whose closing balance will be greater than zero in proceeding return, but the registered person may add the new items and provide their data manually. The column wise filing details are as follows:

    This annexure will be mandatory for refund claimants who will claim any amount of refund at serial 30 of main return and they may submit this statement within 120 days from due date of return filing of particular tax period.

    In the latest circular No. 4, the FBR said that in wake of rescission of SRO 1125(I)/2011, it had committed with the exporters of the export oriented sectors i.e. textiles, leather, carpets, sports goods and surgical goods, that refunds shall be paid within 72 hours of filing of refund claim.

    For this purpose, FASTER refund module has been developed, which will process claims of exporters of five export-oriented sectors for the tax period July, 2019, and onwards.

    FBR has earlier clarified that submission of Annex-H, which is a form in the monthly sales tax return, shall be treated as submission of refund claim.

    It is added that the number of refund claims received is not significant. The exporters are facing some difficulties in filing of their tax refund claims (Annex-H) under FASTER. Many claimants have approached the Board with request that they may be allowed revision of their return on the ground that the entries made in Annex-F do not match with those in Annex-H.

    It is accordingly clarified that refund is processed on the basis of entries in Annex-H. The entries in Annex-F have no bearing on refund claim except that carry forward of value addition tax is excluded from refund amount.

    Accordingly, the claimants are advised not to revise the returns on the ground that entries in Annex-F do not match with those in Annex-H.

    They should submit Annex-H, if not already submitted so that their claims can be processed.

    Further, field formations are advised not to draw an adverse inference if the Annex-F does not match with Annex-H in case of monthly returns already submitted.

  • Asset quality of banking sector weakens on rising NPLs: SBP

    Asset quality of banking sector weakens on rising NPLs: SBP

    KARACHI: State Bank of Pakistan (SBP) on Monday said that the asset quality of banking sector weakened owing to Rs88.3 billion or 13 percent increase in Non-Performing Loans (NPLs).

    In its Mid-Year Performance Review of the Banking Sector (January – June 2019), the SBP said that the asset quality of the banking sector weakened during first half (January – June) 2019 H1CY19, breaking away from the declining trend in recent past.

    “The infection ratio (NPLs to Total Gross Loans) increased to 8.8 percent by the end of H1CY19 (8.0 percent by end H2CY18).”

    This was mainly due to an increase of Rs88.3 billion (or 13.0 percent) in NPLs during H1CY19.

    As a result, the NPLs stood at Rs768 billion by end June 2019. The fresh rise in domestic NPLs was mostly concentrated in few local private banks as well as in a specialized bank, the SBP said.

    Consequently, the infection ratio for local private banks and specialized banks increased to 7.0 percent (6.2 percent by end of H2CY18) and 43.2 percent (32.9 percent by end of H2CY18).

    With the tightening of macroeconomic conditions in CY18 and later, inflow of fresh NPLs have been on the rise.

    However, in terms of economic sectors, the higher defaults during H1CY19 were restricted to the energy and agribusiness sectors.

    Energy sector contributed 52.8 percent to the total increase in NPLs during H1CY19, while agribusiness contributed 18.6 percent. Most of the NPLs in the energy sector (96.8 percent) pertained to the public sector entities associated with electricity generation and transmission that faced constrained cash flows (due to circular debt/low recoveries).

    In case of Agribusiness, however, an element of seasonality exists in the classified loans as they peak around second quarter of each calendar year but then recede in subsequent quarters.

    Besides this seasonal phenomenon, other factors responsible for the rise in NPLs included late start of sugar crushing season, water shortage and drought conditions affecting crop yields, and delay in sale of the newly harvested kharif crops by farmers hindering their repayment capacity (Rice, Cotton and others) etc.

    Furthermore, 20.8 percent contribution to the growth in NPLs came from banks’ overseas operations, largely related to operations in the Middle East.

    In addition to Pak Rupee depreciation, the economic slowdown in some of these countries could be the reason for the higher NPLs.

    The surge in NPLs was mainly driven by the NPLs of public entities in the energy sector, which do not require provisions.

    Resultantly, the provision coverage ratio (78.4 percent in H1CY19 against 83.8 percent in H2CY18) declined.

    As a result, the net NPLs increased and net NPLs to capital ratio jumped to 11.5 percent as of end H1CY19 against 7.8 percent as of end H2CY18.

    However, it may be kept in perspective that in the aftermath of growing NPLs banks made net provisions to the tune of Rs26.40 billion during H1CY19 compared to Rs36.2 billion during CY18.

    The fund-based liquidity of the banking sector remained comfortable, despite continued moderation in liquidity ratios.

    Liquid assets to total assets ratio moderated to 48.0 percent by end June 2019 (48.7 percent by Dec- 18).

    Similarly, liquid assets to total deposits (excluding customer fixed deposits) also moderated to 81.8 percent in H1CY19 (85.0 percent in Dec-18) mainly due to higher proportionate rise in deposits.

    However, due to improved growth in fixed deposits, liquid assets to short term liabilities ratio improved to 95.6 percent (94.9 percent in Dec-18) percent over the comparable period of last year.

    Islamic Banking Institutions (IBIs) continued to augment the overall profitability of the banking sector as it contributed 26.5 percent to the overall after-tax profits during H1CY19, despite 14.4 percent share in total banking sector assets.

    The earnings ratios, which were on downtrend for last few years, improved during the half year under review Return on Equity after-tax inched up to 11.4 percent in Jun-19 from 10.7 percent in Dec- 18, while ROA improved to 0.84 percent from 0.81 percent The turnaround in profitability indicators, after three consecutive years of downturn, was primarily enabled by rising interest rates over the last year or so.

  • SBP directs banks to ensure employment quota for disable persons

    SBP directs banks to ensure employment quota for disable persons

    KARACHI: State Bank of Pakistan (SBP) on Monday directed banks to ensure compliance related to employment quota for persons with disabilities.

    In a notification, the SBP directed all banks, Microfinance banks and Development Finance Institutions to ensure compliance with the relevant law as amended from time to time.

    The SBP said that the Disable Persons’ (Employment and Rehabilitation) Ordinance, 1981 was promulgated to provide for the employment, rehabilitation and welfare of the persons with disabilities.

    Similar legislation on Provincial level is also in force. Accordingly, Federal and Provincial Government establishments as well as commercial and industrial establishments are inter-alia required to maintain quota for employment of the persons with disabilities.

  • PM inaugurates CPHGC 1320MW Coal-fired Power Plant

    PM inaugurates CPHGC 1320MW Coal-fired Power Plant

    KARACHI: Prime Minister Imran Khan on Monday inaugurated CPHGC 1320MW Coal-fired Power Plant, Hub, Balochistan and said that more collaborations on the same pattern may be seen in future.

    The prime minister said that the government will facilitate joint collaboration between Pakistani and Chinese businesses in various sectors.

    Addressing inaugural ceremony of China Hub Power Generation Plant in Balochistan on Monday, he said this is the first joint project under China Pakistan Economic Corridor and we want to see the pattern in future too. He said a large number of Chinese business corporations are interested in investing in different sectors of the economy.

    He said the government is moving towards the second phase of CPEC and it has established CPEC Authority to facilitate the projects under the program.

    The prime minister said during his recent visit to China, the Chinese President and Prime Minister expressed interest to give momentum to CPEC projects.

    The prime minister said the productivity of Chinese companies is quite higher than their counterparts in Pakistan and our country would like to benefit from it.

    He said we will introduce new techniques in farming sector in collaboration with Chinese enterprises.

    The prime minister congratulated the Hubco Chairman Habibullah Khan on the project and asked him to use more indigenous coal for power generation. He also asked him to work on water projects for Karachi.

    He regretted that Pakistan has a rich hydropower resources and capacity which was not utilized effectively by the previous governments.

    Imran Khan said government is committed to increase ease of doing business in the country to attract foreign investment. He said red tapism and undue hurdles in the way of business are being removed.

    Imran Khan said Balochistan is the province that is full of rich mineral deposits. He said during his visit to the US chairman of company previously working on Rekodik project informed him that Pakistan has one of the largest and finest quality gold reserves in the world. Chairman said they are still interested in working on the reserves as they believe that incumbent government of Pakistan is free of corruption. In past, a small group of people plundered the national wealth and filled their pockets.

    The prime minister said apart from mineral resources, the province of Balochistan is also blessed with huge fisheries resources and its development can help earn valuable foreign exchange.

    Imran Khan said PTI government inherited a record debt which led to more inflation, devaluation of rupee and other challenges. However, difficult decisions were made which have started yielding positive results.

    The Prime Minister said we have to give clean governance to our country for the future generations. Imran Khan said we are committed to mobilize the youth of the country for national development.

    He said youth are the biggest asset of Pakistan and government will give them skills training to work in various sectors. He said centers of artificial intelligence, robotics and other modern fields are being opened to prepare our youth for the modern work requirements.

    Earlier, in his address Balochistan Chief Minister Jamal Kamal said investment worth billions of dollars in the province will change the outlook of Balochistan. He said Balochistan will become a hub of investment in the coming days.

    Jam Kamal Khan said Prime Minister Imran Khan is taking special interest in development of Balochistan.

    He said it is an unexploited province and is the only place in Pakistan that can boost the economic frontiers of the country in the coming years. The Chief Minister said Balochistan is endowed with rich mineral resources that are largely untapped and investors can take advantage of these assets.

    Chinese ambassador Yao Jing, Federal Ministers and other senior officials were also present on the occasion.

  • Stock market falls by 785 points on FATF warnings

    Stock market falls by 785 points on FATF warnings

    KARACHI: The stock market fell 785 points on Monday owing to decision of Financial Action Task Force (FATF) an its warning on compliance by February 2020.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,085 points as against 33,870 points showing a decline of 785 points.

    Analysts at Arif Habib Limited said that the market took heavy bantering today on the basis of latest decision of FATF to keep Pakistan in grey list.

    “Although, the market participants had same expectation, by and large, what took them by surprise was the intimation and warning tone by the FATF, in case this last extended deadline till February 2020 fails to meet objective,” they said.

    Besides, beginning of rollover week has its own effect, which resulted in index losing around 800 points during the session and closing at -785 points.

    Selling was observed across the board, with 273 scrips showing decline among actively traded stocks on all share index, 38 in Advance and 15 unchanged.

    Banking sector led the volumes table with 19.3 million shares followed by Cement (18.1 million) and Chemical (15.1 million).

    Among scrips, KEL registered highest volumes with 11.2 million shares, followed by LOTCHEM (9.8 million) and BOP (7.9 million).

    Sectors contributing to the performance include Banks (-227 points), E&P (-107 points), Cement (-91 points), Power (-75 points), O&GMCs (-66 points).

    Volumes increased from 115.2 million shares to 130.1 million shares (+13 percent DoD). Average traded value increased slightly from US$ 31.4 million to US$ 31.7 million (+1 percent DoD).

    Stocks that contributed significantly to the volumes include KEL, LOTCHEM, BOP, FCCL and UNITY, which formed 33 percent of total volumes.

    Stocks that contributed positively include NESTLE (+12 points), ATLH (+4 points), JICL (+4 points), SHFA (+3 points) and KTML (+2 points). Stocks that contributed negatively include HBL (-50 points), MCB (-49 points), LUCK (-47 points), HUBC (-46 points), and PPL (-42 points).

  • Rupee ends stable despite higher dollar demand

    Rupee ends stable despite higher dollar demand

    KARACHI: The Pak Rupee ended stable against dollar on Monday despite higher demand for import and corporate payments.

    The rupee ended Rs155.91 to the dollar, the same level of last closing on last Friday’s, in interbank foreign exchange market.

    Currency dealers said that earlier in the day the demand for import and corporate payment was high and rupee was under pressure.

    However, sufficient supply of the greenback helped the local unit to gain earlier day’s losses.

    The foreign currency market was initiated in the range of Rs1556.95 and Rs156.02. The market recorded day high of Rs155.99 and low of Rs155.90 and closed at Rs155.91.

    The exchange rate in open market also witnessed stable rupee value. The buying and selling of dollar was recorded at Rs155.70/Rs156.20, the same closing level on last Friday, in cash ready market.