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Author: Mrs. Anjum Shahnawaz

  • Pak-Afghan Chamber hails decision to open Torkham border round the clock

    Pak-Afghan Chamber hails decision to open Torkham border round the clock

    KARACHI: The announcement of keeping the Torkham border open for 24/7 was highly well-received by the business communities across the border and is surely a step in the right direction, however, it is critical to ensure that upgraded infrastructure and well-equipped & competent staff is in place to tackle the challenges.

    Zubair Motiwala, Chairman, Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) Chairman, appreciated the initiative of Prime Minister with an aim to increase bilateral trade ties between the two countries, but he also iterated that this single step needs to be intertwined with other confidence building measures that should reduce the trust deficit across the border.

    The Border management system, including quick processing at the border, scanning facility in place, appropriate number of manpower with the desired skill set should also be ensured. The congestion and infrastructure challenges at port leading to delays which is further aggravated by dilapidated road conditions also reduces the speed of consignments reaching the border, which needs to be looked into to reap the benefits from this endeavor.

    During a meeting with customs officials, it was highlighted that Torkham border has one gate which is used for the movement of all types of cargo, including Transit, Trade (Import / Export) and Empty Containers that limits the efficacy of border facilitation, this not only increases the time of processing but also creates a backlog.

    The electricity and internet disconnects also cause significant issues as it hampers the operation of WeBoC system, leading to the piling of documents that needs pre-processing for clearance of the consignments. The most critical issue highlighted was limited manpower on the border, which in normal working conditions is also not sufficient.

    Motiwala commented that it is heartening to see that these matters were taken under perspective by the Government and as highlighted during the visit of Chief Minister Mahmood Khan, the arrangement at border for ensuring round the clock functionality were deemed satisfactory. PAJCCI Chairman believed that if these issues are curbed then this investment at the border will surely support enhancement in trade and facilitation of transit.

    He also iterates the need to ensure the same across the border so that the benefits can be achieved mutually through an efficient border system on both the sides.

    Co-Chairman PAJCCI, Khan Jan Alokozai also welcomed the initiative of Pakistan Government to keep the border operational 24/7 and hope to see it replicated at the Chaman and Ghulam Khan borders as well.

  • Hafeez Shaikh briefs US treasury officials on FATF action plan implementation

    Hafeez Shaikh briefs US treasury officials on FATF action plan implementation

    ISLAMABAD: A US delegation led by Ambassador Alice G. Wells, Acting Assistant Secretary of State for the Bureau of South and Central Asian Affairs, along with the US Treasury officials comprising Scott Rembrandt, Deputy Assistant Secretary, Grant Vickers, David Galbraith and others held a meeting with Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance & Revenue today at Finance Division, Islamabad.

    A statement on Tuesday said that the adviser briefed the visiting delegation on measures pertaining to economic reforms being undertaken by the government of Pakistan to ensure economic discipline, efforts being made towards implementation of FATF Action Plan and the key challenges being faced.

    He emphasized the importance of bilateral engagement with the US and the need to encourage entrepreneurs from private sector of both the countries which will lead to enhanced trade.

    The Adviser informed that over the past three months, the Government has taken significant steps to bring financial discipline that include reduction in Current Account deficit, focus on increasing revenue generation, measures to reduce fiscal expenditures, reduce fiscal borrowings, efforts to enhance foreign exchange reserves through bilateral and multilateral support, arrangement of petroleum credit facility with KSA and IDB and IMF Program.

    Further, as part of its institutional development initiative, SBP and FBR are being resourced and empowered. At the same time to support economic growth and facilitate the people below the poverty line, various Programs to support our export oriented industries and health insurance schemes have been introduced for the poor.

    Regarding, implementation of FATF Action Plan, the Adviser briefed that the government is putting in all-out efforts to complete the Action Plan, involving all relevant authorities at the federal and provincial levels, supported by capacity building through international partners.

    The Adviser expressed Government of Pakistan’s commitment to enhance the effectiveness of its AML/CFT Framework being undertaken by the government of Pakistan, with the objective to ensure that all the actions that are being taken to curb Terror Financing are irreversible and sustainable.

    The Adviser urged for continued support of the international community for strengthening of the AML/CFT Framework over a longer period of time. Ms. Alice G. Wells appreciated the briefings and expressed that the US would continue to remain engaged with Pakistan in its economic reforms efforts and help build an environment that facilitates business development between the two countries.

  • Share market extends losses on negative sentiments

    Share market extends losses on negative sentiments

    KARACHI: The share market extended losses on Tuesday owing to investors sentiments grappled by prospects of global slowdown amidst SINO-US trade war and Kashmir issues between Indo-Pak.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,001 points as against 31,181 points showing a decline of 180 points.

    Analysts at Arif Habib Limited said that the market initially went down by 147 points and reverted the loss by around +300 points to post gain of 149 points.

    Carrying the trend from yesterday, HUBC kept falling that reflected the pressure on Index amongst other scrips such as HBL, UBL, PSO, MCB, NBP.

    Volumes remained low at 54 million shares. Cement sector led the volumes table with 7.7 million shares, followed by Power (5.9 million) and Technology (4.7 million).

    MLCF ranked first amongst volume leaders with 4.8 million shares, followed by KEL (3.1 million) and HUBC (2.4 million).

    Sectors contributing to the performance include Banks (-94 points), Power (-37 points), Chemical (-18 points), O&GMCs (-17 points), Autos (-12 points) and Fertilizer (+26 points).

    Volumes increased slightly from 52 million shares to 54.3 million shares. Average traded value on the contrary jumped by 49 percent to reach US$ 16.8 million as against US$ 11.2 million.

    Stocks that contributed significantly to the volumes include MLCF, KEL, HUBC, TRG and FFC, which formed 27 percent of total volumes.

    Stocks that contributed positively include FFC (+19 points), POL (+11 points), DAWH (+10 points), HBL (+6 points) and GHGL (+5 points).

    Stocks that contributed negatively include UBL (-38 points), MCB (-37 points), HUBC (-26 points), COLG (-12 points) and THALL (-10 points).

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  • Rupee appreciates for 7th consecutive trading day

    Rupee appreciates for 7th consecutive trading day

    KARACHI: The Pak Rupee has appriciated for the seventh consecutive trading date and gained 29 paisas against dollar on Tuesday amid improved inflows of home remittances related to Eid-ul-Azha.

    The rupee ended Rs158.65 to the dollar from previous day’s closing of Rs158.94 in interbank foreign exchange market.

    Currency dealers said that the rupee was improving as overseas Pakistanis are sending foreign exchange to their relatives for Eid related expenses.

    The foreign currency market was initiated in the range of Rs158.75 and Rs158.90. The market recorded day high of Rs158.80 and low at Rs158.50 and closed at Rs158.65.

    The rupee started recovery against the dollar during the last week and continued on the start of current week. The rupee has gained around Rs1.88 to the dollar during the past seven consecutive sessions.

    The exchange rate in open market also witness appreciation in rupee value. The buying and selling of dollar was recorded at Rs157.70/Rs158.70 as compared with last day’s closing of Rs157.80/Rs158.80 in cash ready market.

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  • FBR estimates Rs20 billion annual revenue loss in illicit tobacco trade

    FBR estimates Rs20 billion annual revenue loss in illicit tobacco trade

    ISLAMABAD: Federal Board of Revenue (FBR) has estimated around Rs20 billion as revenue loss due to illicit trade of tobacco products.

    The FBR on Tuesday said that the tobacco sector in Pakistan contributed significant revenue in 2018-2019 amounting to Rs 117 Billion (Rs 90.854 billion FED and Rs. 26.147 Billion sales tax).

    However, Pakistan is also facing problem with the illicit trade in tobacco products, which includes undeclared local production, smuggling of tobacco products of foreign brands and counterfeit production. “The illicit trade in tobacco products costs Pakistan more than Rs. 20 billion a year,” the FBR said.

    In order to prevent leakage of revenue, under-reporting of production and sales of tobacco products and to ensure proper payment of FED and Sales Tax on the manufacture and sale of tobacco products, the FBR is mandated to licence the implementation of a track and trace system; which is to be developed, operated and maintained by the licensee for tobacco products manufactured in and imported into Pakistan.

    To this end, the FBR is inviting applications for grant of licence to be issued under the Sales Tax Rules of 2006 for the development, maintenance and operation of track and trace system in accordance with the provisions of the rules and the instructions specified herein below.

    The successful applicant in compliance with SRO 250(I)/2019 dated 26.02.2019 shall implement a track and trace system, including high security tax Stamps/Markers/Codes which includes unique, secure and non-removable identification markings (hereafter referred to as unique identification markings) combined with state-of-the-art electronic monitoring and tracking systems, for the purpose of protecting existing revenue and to facilitate the generation of further revenue streams through the effective reduction of the illicit trade of tobacco products in Pakistan.

    The FBR said that Pakistan ratified the Framework Convention on Tobacco Control (FCTC) on 3rd November 2004 and acceded to the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products on 29th June 2018. Article 8.2of the FCTC Protocol requires Pakistan to establish a tracking and tracing system, to be controlled by Pakistan, for all tobacco products that are manufactured in, imported into or transiting through its territory.

    Pakistan has to embark on a project to implement a track and trace system for tobacco products to meet its national need to monitor and protect its revenues and address the high level of illicit trade within its borders, and to meet its international obligations under FCTC to implement a track and trace system that can form part of a regional and/or global international track and trace regime for tobacco products.

  • FBR imposes major penalty on four customs officials

    FBR imposes major penalty on four customs officials

    KARACHI: Federal Board of Revenue (FBR) has imposed major penalty on four customs officials for misconduct and inefficiency.

    The FBR on Monday issued four different office orders to imposed major penalty including demotion to lower grade and compulsory retirement.

    The FBR imposed the major penalty of “Reduction to the lower post of UDC” upon Qamar Jamal, Appraising Officer (BS-16), Model Customs Collectorate of Port Muhammad Bin Qasim. The FBR found the official guilty of misconduct and inefficiency.

    The FBR imposed the major penalty of “Reduction to the lower post of Appraising Officer” upon Amir Ahmad Samoo, Principal Appraiser (BS-16), Model Customs Collectorate of Appraisement-West, Karachi. The FBR found the official guilty of misconduct and inefficiency.

    The FBR imposed the major penalty of “Compulsory Retirement” upon Rao Muhammad Aslam, Appraising Officer/ (Examiner) (BS-16), Model Customs Collectorate of Appraisement-East, Karachi. The FBR found the official guilty of misconduct and inefficiency.

    The FBR imposed the major penalty of “Reduction to a lower post of UDC” upon Nasir Iqbal, Inspector (BS-16) (Posted as Examining Officer) in Model Customs Collectorate (Appraisement-West), Karachi. The FBR found the official guilty of misconduct and inefficiency.

  • Bank holidays announced for Eid-ul-Azha

    Bank holidays announced for Eid-ul-Azha

    KARACHI: State Bank of Pakistan (SBP) on Monday announced bank holidays from August 12 to 15, 2019 on the occasion of Eid-ul-Azha.

    In a notification sent to presidents / chief executives of all banks / Development Financial Institutions / Microfinance Banks, the central bank said that SBP will remain closed from 12th to 15th August, 2019 (Monday to Thursday) being public holidays on the occasion of Eid-ul-Azha.

    The SBP said that August 17, 2019 (Saturday) will be observed as working day from 9:00 A.M. to 5:30 P.M.

  • Disbursement of agriculture loans grows by 21 percent: SBP

    Disbursement of agriculture loans grows by 21 percent: SBP

    KARACHI: The disbursement of agriculture loan has registered 21 percent growth to Rs1,174 billion in 2018/2019 as compared with Rs972.6 billion in the preceding fiscal year, State Bank of Pakistan (SBP) said on Monday.

    However, banks have missed the disbursement target of Rs1,250 billion set by Agricultural Credit Advisory Committee for 2018-2019, the central bank said.

    However, the achievement of agriculture credit disbursement is a sizable performance in agriculture lending despite number of demand and supply side challenges.

    The SBP said that the agriculture outstanding portfolio increased to Rs 562.4 billion on end June, 2019 registering a growth of 20 percent compared with the last year’s position of Rs 469.4 billion.

    Similarly, the agricultural credit outreach has increased to 4.01 million farmers or 91 percent against target of 4.42 million farmers at end June 2019, recording growth of 8 percent from 3.72 million farmers at end June 2018.

    To achieve these numbers, SBP adopted a multifaceted strategy and made concerted efforts for pursuing a massive agricultural credit target which included; sensitizing banks to adopt agriculture financing as a viable business line, exploring new avenues of financing, value chain financing, mobilizing e-credit, warehousing receipt financing, implementation of crop/livestock insurance and credit guarantee schemes for the farmers etc.

    The achievement could be made due to the integrated efforts of federal/provincial governments, SBP, financial institutions and other stakeholders.

    Further, the efforts included rigorous follow up with the top management of banks and agriculture credit heads and conducting regular follow-up meetings with regional management were instrumental for target monitoring. Conducting regular farmers’ awareness & financial literacy programs across the country, initiation of one window operation in KPK and holding job fairs for agriculture graduates in underserved provinces were also helpful.

    Moreover, the support of SBP BSC field offices in monitoring the district/regional targets was also supportive.

    The detailed credit performance reveals that during FY 2018-19, five major commercial banks collectively disbursed agriculture loans of Rs 653.5 billion or 100.4 percent of their annual target of Rs 651 billion, specialized banks disbursed Rs 81.2 billion or 71.8 percent of their annual target of Rs 113 billion and fifteen domestic private banks as a group achieved 86.5 percent by disbursing Rs 211.9 billion against their target of Rs 245 during FY-2018-19.

    Moreover, Microfinance Banks (MFBs) as a group have achieved 98.7 percent by disbursing agri. loans of Rs. 154.0 billion to small farmers which is 23 percent higher than the disbursement of Rs 124.8 billion during same period last year.

    Similarly, the Microfinance Institutions/Rural Support Programs collectively achieved 97.1 percent of their targets by disbursing Rs 34.0 billion to small and marginalized farmers during FY 2018-19.

    Five Islamic Banks as a group achieved 78.8 percent of their annual target of Rs 50.0 billion by disbursing Rs 39.4 billion which is Rs 23 billion higher than the disbursement made during the corresponding period last year.

    Further, in order to mobilize the Islamic Windows of commercial banks for agricultural financing, the disbursement targets of Rs 50.0 billion were assigned for 2018-2019.

    Accordingly, the windows of commercial banks as a group disbursed Rs 32.7 billion or 65.4 percent of the annual targets to faith sensitive clients during FY 2018-2019.

  • KCCI seeks 90-day extension for clearance relaxation in printing retail price

    KCCI seeks 90-day extension for clearance relaxation in printing retail price

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged Federal Board of Revenue (FBR) to extend the relaxation for further 90 days that was given for clearance of imported items without printing of retail price.

    Junaid Esmail Makda, President, KCCI has requested the FBR to extend the relaxation given for clearance of imported items under Third Schedule without printing of retail price or affixing stickers for 90 more days as the import orders were booked in advance for around 3 to 6 months while the packaging of the ordered products was already designed and printed at the initial stage.

    In a letter sent to Chairman FBR Shabbar Zaidi, President KCCI stated that on KCCI’s request FBR gave an extension of just 15 days for the implementation of the said condition but it was too short for importers to fulfill the new requirements and the process still remains incomplete, hence, the relevant notification should be extended for 90 days.

    He was of the opinion that it was not possible to re-print MRP on the old stock while any request of making changes at the eleventh hour are unacceptable to the sellers and spoils the credibility / goodwill of the trader.

    “The MRP cannot be assessed by the importer as they sell their imported goods to dealers who sell to distributors and they subsequently sell to retailers across the country while the end retail price including all the margins was determined afterwards which varies in different cases and cannot be standardized across Pakistan”, he added.

    He said that KCCI has received repeated requests from the importers that they were facing severe problems in meeting the requirements of printing Minimum Retail Price (MRP) on items added under the Third Schedule. In the Finance Act 2019-20, Sales Tax has been imposed at the import stage based on the printed MRP and many new items have been added to the Third Schedule of Sales Tax Act 1990.

    He said that on KCCI’s request, FBR allowed clearance of imported Third Schedule items without printing of retail price or affixing stickers for which goods declaration are filed by 31st July, 2019 subject to the condition that the importer declares retail price for each of the imported items for the assessment of sales tax vide Sales Tax General Order No. 102 / 2019 dated July 15, 2019 to clear the backlog at the ports.

    He reiterated that it is impractical to pre-assess and then print the MRP at import stage on each and every item as a lot of factors affect the retail prices of the products like currency fluctuations, packing style, fragility and size of product, distance from ports &, transportation costs, market dynamics, competition, shelf life, and uncertainties of sale in future especially for seasonal items.

    Hence, Junaid Makda requested to withdraw the condition of printing MRP on imported goods or otherwise, allow MRP of the imported items to be declared on WEBOC along with the Goods Declaration (GD) for tax assessment purposes instead of being printed on each and every imported item. After the imposition of MRP, what will be the status of Import Trade Price (ITP) / Customs Valuation of items in the third schedule which also needs to be clarified, he added.

  • Share market plunges 1.53 percent on border tension

    Share market plunges 1.53 percent on border tension

    KARACHI: The share market plunged by 1.53 percent on Monday due to spike in tension between Pakistan and India at Line of Control (LoC).

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,181 points as against 31,666 points showing a decline of 486 points.

    Analysts at Topline Securities said that KSE-100 index lost 486 points/-1.53 percent in today’s session to close at 31,180.

    The spike in tensions between two neighboring countries India & Pakistan at LOC (Line of control) was heightened as India has revoked article 370 in Kashmir valley through a presidential decree.

    They said that investor sentiments remained negative due to hurdles faced by the much anticipated market support fund as government is facing issues due to IMF restriction on issuance of sovereign guarantee.

    Analysts at Arif Habib Limited said that declining cement dispatches, Concerns raised by O&GMCs on RLNG intake and India’s amendment in its Parliament relating to Kashmir caused a major blow to Investor sentiment.

    Resultantly, Banks, Power, Steel, Cement, E&P etc traded in red and contributed most to the downfall of Index. Overall volumes reached 52 million, led by Cement Sector. MLCF ranked highest on the volumes table with 4.8 million shares, followed by TRG (4.2 million) and ISL (3.5 million).

    Sectors contributing to the performance include Banks (-195 points), E&P (-75 points), Power Generation (-52 points), Fertilizer (-42 points) and O&GMCs (-26 points).

    Volumes increased from 46.5 million shares to 52.0 million shares (+12 percent DoD). Whereas, average traded value registered a decline of 12 percent DoD to reach US$ 11.3 million as against US$ 12.8 million.

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

    Stocks that contributed positively include NESTLE (+10 points), BAHL (+5 points), FATIMA (+4 points), ABL (+2 points) and ABOT (+2 points). Stocks that contributed negatively include UBL (-74 points), MCB (-41 points), HBL (-39 points), HUBC (-37 points) and PPL (-35 points).

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