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Author: Mrs. Anjum Shahnawaz

  • Reform program results encouraging, SBP tells IMF

    Reform program results encouraging, SBP tells IMF

    KARACHI: The State Bank of Pakistan (SBP) has informed the International Monetary Fund (IMF) that initial results from the reform program are encouraging.

    SBP Governor Dr. Reza Baqir told a delegation of IMF led by the Director Middle East and Central Asia Department, Jihad Azour on Thursday. He was accompanied by the IMF Mission Chief to Pakistan, Ernesto Ramirez Rigo; Resident Representative of IMF for Pakistan, Ms. Teresa Daban Sanchez; and Special Assistant to the Director of the IMF’s Communications Department, Olga Stankova. The delegation also met with senior management of the SBP.

    The SBP governor said that the earlier volatility in the exchange market and associated uncertainty had subsided and confidence was slowly improving.

    “Inflation had risen due to the economic imbalances accumulated from previous years but inflationary pressures were expected to recede in the second half of the current fiscal year.”

    Nevertheless, the governor emphasized that these were the early stages of the reform process and it was essential to sustain the reform momentum and to keep policies focused on securing stability and promoting sustainable and shared growth.

    He noted that Pakistan has embarked on its home-grown economic reform program and said that he looked forward to a continuing fruitful partnership with the IMF and other stakeholders in the international financial community to support this reform program.

    He observed that the transition to a market-based exchange rate system, building foreign exchange reserves, and bringing down inflation were key elements of the SBP’s reform program to restore financial stability and lay the foundations for sustainable and shared growth.

    In his discussions with the SBP, Azour shared his views on how central banks in the region were responding to the challenges being faced by them particularly with regard to capital flows, the role of technology, and the role of central banks in economic management, amongst other areas.

    Azour looked forward to a continuing partnership with the State Bank.

  • Pakistan foreign exchange reserves increase by $148 million to $15.898 billion

    Pakistan foreign exchange reserves increase by $148 million to $15.898 billion

    KARACHI: The foreign exchange reserves of Pakistan has increased by $148 million to $15.898 billion by week ended September 13, 2019 as compared with $15.75 million a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by the SBP increased by $138 million to $8.6 billion by week ended September 13, 2019 as compared with $8.462 billion a week ago.

    The foreign exchange reserves held by commercial banks increased by $10 million to $7.297 billion by week ended under review as compared with $7.89 billion by week ended September 06, 2019.

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  • Stock market gains 629 points on buying activity

    Stock market gains 629 points on buying activity

    KARACHI: The stock exchange gained 629 points on Thursday owing to buying activity observed across the board.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,184 points as against 31,555 points showing an increase of 629 points.

    Analysts at Arif Habib Limited said that the market increased significantly today after a bearish session yesterday.

    All in all, the index surged by 680 points after an initial draw down of 80 points in the morning.

    Buying activity was observed across the board, but mainly concentrated in Fertilizer, Banks and E&P Sectors.

    International crude prices stayed above the levels seen yesterday, which attracted investors to invest in Oil & Gas sector scrips.

    Besides, yesterday’s auction of PIBs helped investors take a view on interest rate, which yielded positively on stocks.

    Chemical sector led the volumes table with 19.3 million shares, followed by Technology (16.2 million) and Cement (14.4 million). Among scrips, LOTCHEM garnered 15.5 million shares followed by PIBTL (8 million) and TRG (7.8 million).

    Sectors contributing to the performance include Fertilizer (+129 points), Banks (+86 points), Power (+82 points), E&P (+74 points) and Cement (+53 points).

    Volumes increased significantly from 99.4 million shares to 136.5 million shares (+37 percent DOD). Average traded value also increased by 48 percent to reach US$ 37.7 million as against US$ 25.4 million.

    Stocks that contributed significantly to the volumes include LOTCHEM, PIBTL, TRG, MLCF and KEL, which formed 34 percent of total volumes.

    Stocks that contributed positively include ENGRO (+81 points), HUBC (+70 points), LUCK (+36 points), PPL (+35 points) and HBL (+32 points). Stocks that contributed negatively include FABL (-3 points), AKBL (-1 points), ICI (-1 points), LOTCEHM (-1 points), and BWCL (-1 points).

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  • Rupee ends flat against dollar

    Rupee ends flat against dollar

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

    The rupee ended Rs156.25 to the dollar from previous day’s closing of Rs156.24 in interbank foreign exchange market.

    Currency experts said that demand for dollar was higher earlier in the day but inflows kept the local currency stable.

    The foreign currency market was opened in the range of Rs156.30-156.40. The market recorded day high of Rs156.35 and low of Rs156.20 and ended at Rs156.25.

    The exchange rate in open market also witnessed stable value of the local currency. The buying and selling of dollar was recorded at Rs155.80/Rs156.30, the same previous day’s closing in cash ready market.

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  • Any person can takeover imported goods by offering higher customs value

    Any person can takeover imported goods by offering higher customs value

    KARACHI: In order to prevent under-invoicing and mis-declaration the customs authorities have powers to accept offer from any person to allow clearance at higher value than the declared by an importer for the same consignment.

    The Customs Act, 1969 has authorized the customs officials to allow such offer under Section 25C of the Act to takeover the imported goods.

    Section 25: Power to takeover the imported goods

    Sub-Section (1): If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the goods declaration, and the Collector of Customs is satisfied that the declared value is not the actual transactional value, he may after approval of the Board order the following without prejudice to any other action against the importer or his authorized agent, namely:-

    (i) entertain offer by any other person to buy these goods at substantially higher value than the declared customs value in the goods declaration and payment of customs duties and other leviable taxes thereon, provided such offer is accompanied by a pay order equal to twenty-five per cent of the amount of each such offer and duties and other taxes calculated in accordance with the offer;

    (ii) give an option in writing to the importer of such goods for clearance of imported goods at the customs value equal to such highest offer for purchase of goods and payment of customs duties and other taxes chargeable thereon; and

    (iii) in case the importer fails to clear the imported goods within seven days of the receipt of notice under clause (ii) above, the appropriate officer may takeover the goods on payment of customs value declared in the goods declaration and an amount equal to five per cent of such declared value;

    Sub-Section (2): The imported goods taken over under sub-section (1) shall be delivered to the offerer on submission of two pay orders, one equal to the customs value declared in the goods declaration plus five per cent in the name of importer and the other pay order equal to the remaining amount of value of imported goods and the amount of customs duties and other taxes leviable on the imported goods in the name of Collector of Customs;

    Sub-Section (3): In case the local buyer fails to take the delivery of the goods on payment of value and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-five per cent of the amount shall be fore-feited in favour of the Federal Government and imported goods shall be released to the importer as per customs value determined under sections 25 or 25A as the case may be.

  • Persons not required filing income tax return, wealth statement

    Persons not required filing income tax return, wealth statement

    The Income Tax Ordinance, 2001, under Section 115, specifies classes of persons exempted from filing annual income tax returns and wealth statements for the tax year 2019.

    (more…)
  • FBR issues 60,000 notices to Faisalabad industrial, commercial electricity consumers

    FBR issues 60,000 notices to Faisalabad industrial, commercial electricity consumers

    ISLAMABAD: Federal Board of Revenue (FBR) has issued 60,000 notices to commercial and industrial electricity consumers for mandatory registration and filing of income tax returns.

    Syed Shabbar Zaidi in a tweet on Wednesday said that over 60,000 notices to non-registered / non-compliant persons were being jointly sent by FBR and Faisalabad Electric Supply Company (FESCO) to industrial and commercial consumers in Faisalabad.

    “Strict actions will be taken against delinquents. Such action will be replicated around the country.”

    Under the Income Tax Ordinance 2001, an industrial / commercial consumer of gas or electricity paying above Rs500,000 for single connection is mandatorily required to file income tax returns.

    Recently, the chairman wrote letters to power and gas utilities for refusing new applications for commercial / industrial connections until the individuals appear on the active taxpayers list.

  • SECP board approves amendments to exchange traded fund regulations

    SECP board approves amendments to exchange traded fund regulations

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to Exchange Traded Funds Regulations and other regulations at its policy board meeting which met in Islamabad under the chairmanship of Professor Khalid Mirza, said a statement on Wednesday.

    The Policy Board welcomed the new Chairman, SECP, Aamir Khan and accredited his joining to the improvement in the stock market and development of new initiatives.

    The Policy Board reviewed the implementation of its decisions of previous meetings and was satisfied with the overall workings of the Commission. The Chairman and the Board commended Aamir Khan for ensuring that the decisions have been implemented in an expeditious and progressive manner.

    In order to facilitate launch of ETFs, the Policy Board, amongst several other recommendations of the Regulations Committee of the Board, approved amendments in the Exchange Traded Funds Regulations which have been revamped to add flexibility for fund managers to appoint separate intermediaries for performing the functions of market maker and authorized participant.

    This shall enable fund managers for on-boarding market makers easily which are now subject to rationalized regulations that aim to reduce cumbersome requirements and decrease the cost of doing business for market makers.

    In addition to regulatory changes, system level modifications have also been made to enable market makers for performing their functions seamlessly with minimum inventory.

    The approved regulatory amendments aim to provide maximum facilitation to fund managers and market makers through streamlined regulatory requirements based on international benchmarks.

    Other approvals of the Policy Board include:

    (i) Amendments in Futures Brokers (Licensing & Operations) Regulations, 2018 which provide relaxation in education requirement of CEO, elimination of the requirement of NCB, deletion of the requirement of wealth statement, and reduction in frequency of reports by compliance officer,

    (ii) Amendments in the Securities Brokers (Licensing & Operations) Regulations 2016 extending the timeline for complying with financial resource requirements till December 2019, and deletion of requirement to submit NICL Building, 63 Jinnah Avenue, Islamabad certificate of commencement of business,

    (iii) Amendments in CDC Regulations – Reforms in CDC Regulatory Framework for ease of doing business by direct credit of securities in the CDS issued by way of right issue of public unlisted and private companies; relaxation in appointment of independent Transfer Agent by private and single member companies, and

    (iv) PSX to act as the sole frontline regulator and may draw upon the assistance of NCCPL and CDC to outsource the compliance function of PSX, to the extent of supervision or conducting any investigation, inspection or enquiry and monitoring compliance of securities brokers.

    The Policy Board was also given a presentation by the Commission pertaining to the implementation of the FATF Recommendations including instances of penalties imposed in various cases.

    The Policy Board directed that the FATF guidelines should be followed but the focus should remain on the areas that are critical to curb the menace of financing of terrorism/money laundering and we should take care not to affect business activity.

    The Securities and Exchange Policy Board, in pursuance of Section 12 of the Act 1997, comprises ex-officio members of the Ministries of Finance, Commerce, and Law, SBP, SECP and persons of eminence from the private sector.

  • Prime Minister inaugurates 24X7 Torkham Terminal to boost Pak-Afghan trade

    Prime Minister inaugurates 24X7 Torkham Terminal to boost Pak-Afghan trade

    PESHAWAR: Prime Minister Imran Khan on Wednesday inaugurated 24X7 crossing terminal at historic Torkham border which will help bolster bilateral trade Pakistan and Afghanistan.

    The prime minister cut the ribbon to formally inaugurate the Integrated Transit Trade Management System at Torkham border, completed at a cost costing Rs16 billion that would ease immigration facilities besides bolstering trade activities.

    The prime minister came all the way from Islamabad to Torkham border, located in Khyber Tribal district, reflecting his deep commitment to further improve trade ties and strength bilateral relations with brotherly country of Afghanistan.

    The prime minister was received by Governor Khyber Patkhunkhwa Shah Farman, Chief Minister Mahmooad Khan and other senior officials of the KP Government at the helipad.

    Federal Minister for Foreign Affairs Shah Mehmood Qureshi, PM adviser on Establishment Arbab Shahzad also accompanied the Prime Minister.

    The opening of crossing terminal for provision of 24-hour service is a landmark decision of PTI-led Government that would immensely help accelerate pace of economic, industrial and agriculture development besides taking bilateral trade between the two countries to a new height.

    It would create enormous employment opportunities for hundreds of thousands of people, skilled labour and bring boom in transport sector, especially in Khyber Pakthunkhwa and erstwhile FATA.

    The landmark decision would make positive impact on industries, small and medium entrepreneurship (SMEs), investment and enhance imports and exports between the two countries for their mutual benefits.

  • Stock market ends down by 353 points on easing international oil prices

    Stock market ends down by 353 points on easing international oil prices

    KARACHI: The stock market fell by 353 points on Wednesday on easing oil prices in international market.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,555 points as against 31,909 points showing a decline of 353 points.

    Analysts at Arif Habib Limited said that after the restoration of crude production at Aramco facility in Abqaiq, international crude prices saw a downward trend and that similar trend was witnessed at PSX as well.

    Oil chain including E&P, OMCs, and Refineries drove the market with volume amid declining prices.

    IMF’s nod on government’s measures failed to give confidence to the investors on the macro-economic front.

    Besides, oil & gas chain, Cement sector also saw selling pressure, with the most decline observed in LUCK in past sessions.

    OGDC also posted higher than anticipated financial results but couldn’t bring any positivity to the falling stock price.

    Technology sector topped the volumes chart with 13.9 million shares followed by Cement (12.2 million) and O&GMCs (11.5 million).

    Scrip-wise activity shows WTL leading the volumes with 10.3 million shares followed by PAEL (8.5 million) and KEL (8.3 million).

    Sectors contributing to the performance include E&P (-123 points), Banks (-90 points), Fertilizer (-47 points), Cement (-45 points) and Power (-30 points).

    Volumes increased from 99.3 million shares as against 122 million shares (-19 percent DOD).

    Average traded value also declined by 24 percent to reach US$ 25.4 million as against US$ 33.3 million.

    Stocks that contributed significantly to the volumes include WTL, PAEL, KEL HASCOL and OGDC, which formed 38 percent of total volumes.

    Stocks that contributed positively include SEARL (+8 points), PSO (+8 points), NATF (+7 points), COLG (+6 points) and FCEPL (+4 points).

    Stocks that contributed negatively include PPL (-51 points), POL (-39 points), LUCK (-36 points), UBL (-25 points), and ENGRO (-22 points).

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