Author: Mrs. Anjum Shahnawaz

Rupee recovers on last trading day of fiscal year

KARACHI: The Pak Rupee ended with gain to Rs160.05 on the last day of the fiscal year at to the dollar on Friday owing to inflows of exports and workers remittances besides ease in payment for imports.

The rupee gained Rs4.01 to end at Rs160.05 to the dollar in interbank foreign exchange market as against previous day’s all time low of Rs164.06.

The foreign currency market was initiated in the range of Rs162.00 and Rs162.50. The market recorded day high of Rs163.80 and low of Rs160.00 and closed at Rs160.05.

Currency experts said that the ending of Pak Rupee at Rs160.05 would increase the overall debt as the government had estimated the budget 2019/2020 at the higher rupee value.

The exchange rate in open market also witnessed appreciation in the local unit.

The buying and selling of dollar was recorded at Rs159.50/Rs161.00 as compared with previous day’s closing of Rs162.50/Rs163.50 in cash ready market.

June 28, 2019
Commerce ministry enhances shelf life condition to discourage substandard edible imports

ISLAMABAD: The ministry of commerce has put mandatory requirement of 66 percent shelf life on imported edible items in order to discourage not fit items and save huge foreign exchange.

The ministry of commerce issued SRO 659(I)/2019 dated June 27, 2019 to amend Import Policy Order 2016 and enhanced the condition of shelf life for imported edible items from 50 percent to 66 percent or 2/3rd of the shelf life.

The condition will be applicable from July 01, 2019.

Through the latest notification the ministry of commerce made amendment to Appendix – B of the Import Policy Order, 2016.

As per import policy all the edible products are importable in Pakistan with certain conditions. At present the following conditions are applicable:

i. It must be fit for human consumption;

ii. The products shall be free of any Haram elements or ingredients;

iii. Edible products shall have at least 50 percent of the shelf life, calculated from the date of filing of Import General Manifest (IGM).

iv. Where condition at (i) above are not permitted on the packing, certificate issued by the manufacturers or principals in respect of these conditions shall be accepted by Customs Authorities.

v. That, in case of meat, it was obtained from Halal animals and slaughtered in accordance with the Islamic inductions;

vi. Import of edible oil in bulk quantity shall be on landed weight and quality basis.

June 28, 2019
Rupee sharply recovers by Rs4.06 against dollar in interbank market

KARACHI: The Pak Rupee sharply recovered by Rs4.06 against dollar in midday trading on Friday owing to inflows and ease in payment, dealers said.

The dollar is being traded at Rs160 in interbank foreign exchange market. A day earlier the dollar hit all time high at Rs164.06 in the foreign currency market.

Currency dealers said that the substantail inflows helped the rupee to gain. Further the recovery can also be attributed to ease in big payment of oil import, they added.

June 28, 2019
SRB allows reduced rate of 3pc for outstanding payments by indenters

KARACHI: Sindh Revenue Board (SRB) has allowed a reduced rate of 3 percent sales tax for payment of past four years on services rendered by indenters.

The SRB issued notification SRB-3-4/17/2019 on Thursday to declare that sales tax on the services provided or rendered by an indenter (described against tariff heading 9819.1200) from a place of business in Sindh during the tax periods from July, 2015 to June, 2019 shall, if not yet deposited by the indenter in Sindh Government’s head of account “B-02384”, be charged, levied and collected at the reduced rate of 3 percent subject to the conditions that:-

(a) such indenter received or intends to receive the value of such indenter services from a place outside Pakistan in foreign exchange through banking channels in the indenter’s business bank account in the manner prescribed by the State Bank of Pakistan;

(b) such indenter, if not yet a person actually registered under section 24 of the Act, gets himself registered in accordance with the provisions of the said section 24, read with rules prescribed under the Act, on or before the 31st day of July, 2019;

(c) such indenter deposits the arrears of the amounts of Sindh sales tax, as involved, for the tax periods from July, 2015 to July, 2019, at the rate prescribed in this notification, in Sindh Government’s head of account “B- 02384” in the prescribed manner on or before the 31St day of August, 2019; and

(d) such indenter does not claim any input tax credit/adjustments against the output tax payable under this notification.

The SRB said that this notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax already paid or deposited by him in Sindh Government’s head of account “B-02384” on any day prior to the date of this notification.

June 28, 2019
FBR constitutes ADRCs for eight cities

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday constituted Alternative Dispute Resolution Committees (ADRCs) for speedy disposal of cases in Inland Revenue in eight cities of the country.

The FBR issued SRO 657(I)/2019 to notify the panel of the following persons for constitution of committees for alternative dispute resolution, namely :-

SIALKOT

1. Z.A. Nasir, C.A, Sialkot.

2. Ch. Ahmad Zulfiqar Hayat, Businessman, Sialkot.

3. Aftab Hussain Nagra, Advocate, Sialkot.

4. Muhammad Arshad Nawaz Maan, Tax Practitioner, Sialkot.

5. Mahar Ghulam Mujtaba, Representative Trade Bodies, Sialkot.

6. Khalid Pervaiz Javaid Butt, Representative Trade Bodies, Sialkot.

FAISALABAD

1. Hamid Masood, C.A, Faisalabad.

2. Zahid Suleman, C.A, Faisalabad.

3. Muhammad Anwar Abid, Advocate High Court, Faisalabad.

4. Syed Zia Alumdar Hussain, Trade Bodies Representative, Faisalabad.

5. Mian Tanveer Ahmad, Trade Bodies Representative, Faisalabad.

6. Engineer Hafiz Ihtasham Javed, Trade Bodies Representative, Faisalabad.

7. Khalid Pervez, Advocate High Court, Faisalabad.

8. Muhammad Amjad Khawaja, Trade Bodies Representative, Faisalabad.

9. Ch. Habib Ahmad Gujjar, Trade Bodies Representative, Faisalabad.

10. Jawad Asghar, Trade Bodies Representative, Faisalabad.

11. Mr, Muhammad Ashraf Ghandi, Businessman, Faisalabad.

12. Rana Muhammad Younis, Businessman, Faisalabad.

13. Ch. Khalid Mahmood, District and Session Judge, Faisalabad.

SAHIWAL

1. Muhammad Abid, Commissioner IR, Sahiwal.

2. Rashid Hameed, President Sahiwal Chamber of Commerce & Ind, Sahiwal.

3. Rana Waseem Akhtar, Vice Chairman, Pakistan Soup Manufacturing Association, Sahiwal.

4. Mian Muhammad Latif, President Anjuman Tajraan, Sahiwal.

5. Muhammad Imran Khan, Vice President Sahiwal Tax Bar .

6. Shaikh Muhammad Sajjad, Ex President, Sahiwal Tax Bar.

ISLAMABAD

1. Syed Tanseer Bukhari, Advocate, Islamabad.

2. Syed Tauqeer Bukhari, Advocate, Islamabad.

3. Hafiz Muhammad Idrees, Advocate, Islamabad.

4. Shahzad Qazi, C.A Islamabad.

5. Muhammad Mudasser, C.A, Islamabad.

6. Khalid Iqbal Malik, Representative of Trade Body, Islamabad.

7. Tariq Sadiq, Representative of Trade Body, Islamabad.

8. Naeem Siddiqui, Representative of Trade Body, Islamabad.

9. Mian Muhammad Ramzan, Representative of Trade Body, Islamabad.

SUKKUR

1. Asif Iqbal Shekhani, Advocate, Sukkur.

2. Rewachand Rajpal, Advocate, Sukkur.

3. Khair Muhammad Shaikh , Representative of Trade Body, Sukkur.

4. Aamir Ali Khan, Ghouri, Reputable Taxpayer, Sukkur.

5. Tarique Hussain Soomro, Advocate, Sukkur.

MULTAN

1. M. Rashid Qamar, Rtd, District & Session Judge, Multan.

2. Waqas Khalid. Tax Practitioner. Multan.

3. Mueed Khawaja. Tax Practitioner. Multan.

4. Haji Saeed Ahmad, Businessman, Multan.

5. Kh. Muhammad Usman, Businessman, Multan.

6. Agha M. Akmal Khan Quzailbash, Advocate, Multan.

7. Anis Ahmad Sh. Businessman, Multan.

8. Malik Asrar Ahmad Awan, Businessman, Multan.

9. Mirza Muhammad Waheed Baig, Advocate, Multan.

10. Muhammad Younas Ghazi, Tax Practitioner, Multan.

11. Talat Javed, Tax Practitioner, Multan.

GUJRANWALA

1. Abid Hafeez Abid, Advocate High Court, Gujranwala.

2. Muhammad Asim Anees , Businessman, Gujranwala.

BAHAWALPUR

1. Shahid Nadeem Kahloon, Judge, Bahawalpur.

2. Iqbal Haider, CMA, Bahawalpur.

3. Ch. Javed Iqbal, Advocate, Bahawalpur.

4. Saifal Tanveer, Tax Practitioner, Bahawalpur.

5. Ejaz Nazim, Representative of Bahawalpur Chamber.

6. Ch. Mehmood Majeed, Reputable Businessman, Bahawalpur.

June 28, 2019
Prime Minister launches campaign to control price hike

ISLAMABAD: Prime Minister Imran Khan on Thursday took serious notice of abnormal price hike and launched a special campaign to control increase in prices of essential items.

A press release said that effective implementation of local and special laws concerning efficient service delivery and relief to the general public is one of the prime responsibilities of field administration.

Lack of coordination among various stakeholders, poor understanding/implementation and indifferent attitude has established redundancy of these laws, thus increasing sufferings of general public.

The Prime Minister, while taking serious notice of current disproportionate price hike and ineffectiveness of the systems to control the same, has been pleased to desire a special campaign to control price hike may be launched which shall include:

i. A strategy shall be devised by all concerned stakeholders to implement price control laws effectively from the wholesale markets to retail shops;

ii. Prime and Market Control Committees shall be made more effective and should take stern actions against the perpetrators under law;

iii. Field Officers shall frequently visit the wholesale markets and be present at the time of auctions to determine realistic rates;

iv. All the Provincial Secretaries shall frequently have a surprise check in the districts;

v. Special Branch shall report daily the implementation of directives to the Chief Secretary and the Chief Minister concerned;

vi. Mechanism be developed to check unscrupulous elements which charge un-proportionate prices without sufficient cause;

vii. Strict action shall be taken against hoarding;

viii. Price Control Committees shall notify the rates of essential commodities regularly and the same shall be implemented effectively, and

ix. A performance evaluation mechanism, with reward and punishment be developed to ensure success of this campaign.

Action taken on the above directions shall be intimated to this office within seven (07) days for perusal of the Prime Minister.

June 27, 2019
FBR directs recovery of revenue loss from customs intelligence officers

ISLAMABAD: Federal Board of Revenue (FBR) has imposed penalty on two customs intelligence officers and directed recovery from these officials of such government revenue lost due to their negligence.

The FBR imposed penalty of stopping performance allowance for six months. The penalty has been imposed on Saifullah, Superintendent, Directorate of Intelligence & Investigation (Customs), Lahore and Ch. Muhammad Javaid, Superintendent (BS-17), Directorate of Intelligence & Investigation (Customs), Lahore.

The FBR initiated departmental inquiry against both the official on the charges of inefficiency, misconduct and corruption.

The Authorized Officer imposed minor penalty of “Recovery of 1/3rd of the revenue loss which occurred due to negligence of the accused officials.

June 27, 2019
Bank holiday

KARACHI: The banks will remain close for public dealing on July 01, 2019, which will be observed as bank holiday on Monday.

A notification issued on Thursday the SBP said that it will remain closed for public dealings on July 1, 2019 (Monday) which will be observed as Bank Holiday.

All banks / Development Financial Institutions/ Microfinance Banks (MFBs) shall, therefore, remain closed for public dealings on the aforesaid date.

However, all employees of the banks / DFIs / MFBs will attend the office as usual, the SBP said.

June 27, 2019
Pakistan’s forex reserves deplete by $288 million

KARACHI: The liquid foreign exchange reserves of Pakistan fell by $288 million to $14.351 billion by week ended June 21 as against $14.639 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

The foreign exchange reserves held by the central bank were depleted by $322 million to $7.282 billion as compared with $7.604 billion a week ago.

The SBP said that its official reserves were declined due to external debt servicing and other official payments.

The foreign exchange reserves held by commercial banks witnessed increase of $35 million to $7.069 billion from previous week’s level of $7.034 billion.

June 27, 2019
Stock market witnesses continuous decline on selling pressure

KARACHI: The stock market witnessed another fall of 314 points on Thursday over concerns related to inflationary pressure and monetary tightening.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,774 points as against 34,089 points showing a decline of 314 points.

Muhammad Faizan Munshey, Head of Foreign Institutional Sales at Next Capital Limited said that the benchmark KSE 100-share index continued its slump on Thursday, dropping another 314.14 points to settle at 33,774.42.

“The brutal sell-off is being fuelled by mounting investor concerns over the outlook on inflation and interest rates, which could curtail growth in the economy and have a damaging knock-on effect,” he said.

Pak Rupee continues to drop against the dollar. The US Dollar hit all-time high of 164.5 against the Pak Rupee in early trade in the interbank bank.

However, some respite was witnessed later in the day and the Dollar came down to 163.35.

Analysts at Arif Habib Limited said that the down trend in market continues amidst repo activity.

Despite the absence of MTS volume, market remained under selling pressure.

Power sector led the volumes on the bourse with 33M shares, followed by Banks (19 million).

KEL remained on the top consecutively on the second day with 24 million shares, which is followed by PAEL (7 million).

Banking sector saw price erosion in HBL and UBL, with HBL taking the major toll and reaching recent lows.

Similarly, stocks that have potential negative effect due to increase in Rupee:Dollar parity performed poorly.

While those stocks which have positive impact emanating from high parity failed to grab investors’ interest due to weak macroeconomic fundamentals.

Sectors contributing to the performance include Fertilizer (-80 points), E&P (-76 points), Commercial Banks (-58 points), Cement (-30 points) and Power Generation (-24 points).

Volumes decreased from 159.6 million shares to 135.0 million shares (-15 percent DoD). Average traded value also decreased by 7.5 percent to reach US$ 27.9 million as against US$ 30.1 million.

Stocks that contributed significantly to the volumes include KEL, PAEL, FFBL, BOP and MLCF, which formed 37 percent of total volumes.

Stocks that contributed negatively include PPL (-44 points), FFC (-40 points), HBL (-35 points), HUBC (-29 points) and ENGRO (-23 points).

Stocks that contributed positively include INDU (+10 points), MEBL (+9 points), FATIMA (+8 points), ABOT (+7 points) and HMB (+7 points).

June 27, 2019