KARACHI: Meezan Bank – Pakistan’s leading Islamic bank, and Central Depository Company (CDC) signed an agreement to launch shares custody services, a statement said on Friday.
(more…)Author: Mrs. Anjum Shahnawaz
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Banking timings during Ramazan-ul-Mubarak announced
KARACHI: State Bank of Pakistan (SBP) on Friday announced banking timings during holy month of Ramazan-ul-Mubarak.
During the ensuing holy month of Ramazan-ul-Mubarak 1440 AH, the following office hours will be observed in the State Bank of Pakistan, which will also be followed by all banks, development finance institutions and microfinance banks:-
Monday to Thursday from 10:00am to 4:00pm with prayer break from 2:00pm to 2:15pm whereas on Fridays office hours will be from 9:00am to 2:00pm without any break.
However, it is further advised to observe the following business (banking) hours for public dealing:-
Monday to Thursday from 10:00am to 2:00pm without any break whereas on Fridays business (banking) hours for public dealing will be from 9:00am to 1:00pm without any break.
After the holy month of Ramazan-ul-Mubarak, the above timings will automatically be reverted to pre Ramadan-ul-Mubarak timings, the SBP said.
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forex reserves deplete by $251 million to $15.743 billion
KARACHI: The total liquid foreign exchange reserves of the country have depleted by $251 million to $15.743 billion by week ended April 26, 2019 as against $15.994 billion in the previous week, State Bank of Pakistan (SBP) said on Thursday.
The official reserves of the central bank fell by $219 million to $8,805 billion for the week under review as against $9.024 billion by week ended April 19, 2019. The central bank said that the official reserves were declined due to external debt servicing and other official payments.
The foreign exchange reserves with the commercial banks also declined by $33 million to $6.937 billion for the week ended April 26, 2019 as compared with $6.97 billion a week ago.
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Meezan Bank posts 49 percent growth in quarterly net profit
KARACHI: Meezan Bank Limited has declared 49 percent increase in profit after tax to Rs2.85 billion for the quarter ended March 31, 2019 as compared with Rs1.19 billion in the same period of the last fiscal year.
The Earnings per Share (EPS) – on enhanced capital increased to Rs. 2.44 per share, said a statement on Monday.
The Board of Directors of Meezan Bank Limited in its meeting approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the quarter ended March 31, 2019.
The meeting was presided by Mr. Riyadh S. A. A. Edrees – Chairman of the Board and Faisal A. A. A. Al – Nassar – Vice Chairman of the Board, was also present.
The Board has approved 10 percent interim cash dividend (Rs 1.00 per share) and 10 percent bonus shares in the meeting. Quarterly cash dividend has been approved for the first time in the history of the Bank and is in keeping with the Board desire to ensure that investors in Meezan Bank are well looked after. The Bank has maintained an unbroken payout record since the Bank’s listing on Stock Exchange in the year 2000.
The growth in profitability was driven by an increase of 57 percent in net spread primarily due to the Bank’s focus on maintaining a good quality high yield earning assets portfolio.
Profit paid to depositors also doubled, as a result of increase in deposits and increase in depositors’ profit rates. The fees and commission income of the bank grew by 18 percent driven by an increase in trade business volume handled by the bank.
Administrative and operating expenses increased by 24 percent primarily due to rising inflation, rupee devaluation and increase in costs associated with new branches – an investment in the future.
However, the rise in expenses was sufficiently absorbed by the growth in the bank’s income resulting in improvement in the banks income expense ratio. The bank added 16 new branches to its network during the quarter bringing the total number of branches to 676 in 189 cities.
The Bank is now the 7th largest bank in terms of branch network as well as in terms of deposit base.
The investments portfolio increased to Rs219 billion from Rs124 billion in December 2018 – a growth of 77 percent. During the quarter, a consortium led by Meezan Bank successfully closed Pakistan’s first-ever energy Sukuk issued by the Power Holding Private Limited, a company wholly owned by the Government of Pakistan (GoP).
The Sukuk is guaranteed by the GoP and is eligible for SLR for the purposes of the State Bank of Pakistan (SBP). The Bank is the largest investor in this Sukuk with a participation of Rs. 85 billion.
The Islamic financings and related assets portfolio closed at Rs494 billion with an ADR of 64 percent. The bank maintained its financing exposure in all sectors and continued to actively pursue growth in Small and Medium Enterprise (SME) / Commercial and Consumer segment.
The NPL ratio and NPL coverage ratio stood at 1.4 percent and 137 percent respectively. The bank remains a well-capitalized institution with Capital Adequacy Ratio of 15.5 percent.
The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), in 2018, assigned the Bank an Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook.
The Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank has been assigned a credit rating of ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings represent sound performance indicators of the Bank.
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Second phase of Pak-China FTA signed; two premiers witness signing ceremony
ISLAMABAD: The second phase of Pakistan China Free Trade Agreement (FTA) signed on Sunday, which was witnessed by the premiers of both the countries.
Prime Minister Imran Khan and Chinese Premier Li Keqiang witnessed the signing ceremony at a meeting on the conclusion of the 2nd Belt and Road Forum (BRF) in Beijing, a statement said.
The list of MoUs/Agreements signed/exchanged on the occasion is as follows:
i. Second Phase of China Pakistan Free Trade Agreement
ii. Declaration for Completion of Preliminary Design of Phase-I for Up-gradation of ML-1 and Establishment of Havelian Dry Port under CPEC
iii. MoU on Cooperation in the field of Marine Sciences between the China Geological Survey (CGS), Ministry of Natural Resources of China, the Institute of Oceanography, Ministry of Science and Technology.
iv. MoU between CIDCA and Ministry of Planning, Development and Reform on Implementation of the Projects under JWG of CPEC on Socio-Economic Development.
v. China-Pakistan Economic and Technical Cooperation Agreement
vi. Rashakai SEZ Joint Venture and License Agreement between KPEZMDC and CRBC.
The two prime ministers were accompanied by ministers and senior officials.
Both leaders reaffirmed the time-tested and strong friendship between Pakistan and China and exchanged views on the myriad facets of bilateral engagement.
The prime minister extended felicitations to the Chinese leadership on the successful holding of the 2nd Belt and Road Forum (BRF).
Noting the depth and breadth of the Belt and Road Initiative (BRI), the Prime Minister said it was of immense significance for the world in terms of connectivity and shared prosperity.
The two sides exchanged views on bilateral collaboration in the context of CPEC and prospects of further deepening economic linkages.
Prime Minister Imran Khan underscored the importance of CPEC for Pakistan’s economy and noted with satisfaction its expansion into new areas of development – including industrial development; livelihood projects; social uplift; and agriculture in line with the priorities of government.
He hoped that Chinese investment in Specialized Economic Zones (SEZs) would expand Pakistan’s industrial base and assist in diversifying its export basket.
Underlining the steady growth of bilateral cooperation since the Prime Minister’s last visit to China in November 2018, Premier Li Keqiang expressed satisfaction at the positive momentum of CPEC projects.
He hoped that the conclusion of the Second Phase of China-Pakistan Free Trade Agreement (FTA), would give further boost to trade and economic relations between the two countries.
The two sides agreed to further deepen the political, security, economic, education, science & technology, cultural, and people-to-people relations.
It was agreed to maintain the existing momentum of high level exchanges between the two countries.
The two leaders also exchanged views on regional issues including peace efforts in Afghanistan and peace and stability in South Asia.
They also agreed to closely coordinate in their endeavors.
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Sales Tax Act 1990: IR officers authorized to arrest fraudsters
KARACHI: The sales tax law has authorized officers of Inland Revenue to arrest persons committing fraud or any other offence.
The Section 37A of the updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR) explained the powers of IR officers for making arrests.
Section 37A: Power to arrest and prosecute
Sub-Section (1): An officer of Inland Revenue not below the rank of an Assistant Commissioner of Inland Revenue or any other officer of equal rank authorised by the Board in this behalf, who on the basis of material evidence has reason to believe that any person has committed a tax fraud or any offence warranting prosecution under this Act, may cause arrest of such person.
Sub- Section (2): All arrests made under this Act shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of 1898).
Sub-Section (3): deleted
Sub-Section (4): Notwithstanding anything contained in sub-section (1) to subsection (3) or any other provision of this Act, where any person has committed a tax fraud or any offence warranting prosecution under this Act, the Commissioner may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due along with such default surcharge and penalty as is determined under the provisions of this Act.
Sub-Section (5): Where the person suspected of tax fraud or any offence warranting prosecution under this Act is a company, every director or officer of that company whom the authorized officer has reason to believe is personally responsible for actions of the company contributing the tax fraud or any offence warranting prosecution under this Act shall be liable to arrest; provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty imposed under this Act.
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Chief collector directs simplifying refund payment system
KARACHI: Mrs. Surriya Ahmed Butt, Chief Collector of Appraisement (South) has issued directives to customs authorities to simplify refund payment system.
The chief collector issued the directives in a meeting with members of Karachi Customs Agents Association (KCAA), a statement issued on Tuesday.
At the meeting the customs agents pointed out that the traders were facing immense problems in obtaining refunds as authorities were processing their claims through manual system.
They said that almost all the system of the customs clearance had been automated and urged the collector to make the refund payment through online system.
The chief collector assured the customs agents for simplifying the refund payment system.
The managing committee of KCAA headed by the President Mohammad Amin Essani and General Secretary Arshad Khurshid participated in the meeting.
This high-level meeting was also attended by the Collector of Customs MCC-Appraisement (West) Wajid Ali, Collector of Customs MCC-Appraisement (East), Dr. Nadeem Memon, Collector of Customs MCC-(Port Qasim), Mumtaz Ali Khoso alongwith the Additional Collectors of Customs of MCC-Appraisement (East) & (West).
While addressing the participants by the worthy Chief Collector South stated that collection of legitimate taxes in a friendly environment and Trade Facilitation is the main focus and top priority agenda of Pakistan Customs.
She assured their cooperation in order to resolve the issues being faced by the trade on the spot by adopting Open Door Policy at Custom House.
In the said meeting the following decisions were taken:
Refund Process: It has been decided that refund process will be simplified.
Dis-continuation of practice for manual hold by the terminal operators on auction goods released by the customs after payment of legitimate duty and taxes.
Call Documents: In order to reduce dwell time the process for call documents will also be simplified.
Review Submission Option: The Customs Authorities agreed that an option will be given to traders to opt for personal hearing directly before the concerned Deputy Collector instead of routed through PA. This will reduced the dwell time and allow timely clearance of goods.
CRF procedure. As proposed by KCAA the On-Line CRF request will be introduced in the system with the consultation of Directorate of Reforms & Automation.
Regarding Auto De-Blocking of IGM. De-blocking of IGM of late GDs filing should be done electronically.
On-Line Verification of Pak China FTA. The authenticity of Pak-China FTA Certificate should be verified through Electronic Data Exchange (EDE).
All the proposals / agenda were appreciated by the department and assure the implementation of the same for the betterment of trade facilitation.
The meeting was concluded with a vote of thanks as the decisions taken were definitely reduce the cost of doing business.
In the end of meeting Mohammad Amin Essani (President) and Arshad Khurshid (General Secretary) thanked and appreciated the prompt decisions taken by the Honorable Chief Collector South (Appraisement) and other Collectors for giving them their precious time for meeting and assure their full cooperation at any stage.
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PTCL, Zong 4G collaborate for network expansion in remote areas
KARACHI: Pakistan Telecommunication Company Limited (PTCL) and Zong 4G have entered into a strategic partnership for network expansion in remote and far-flung areas of the country.
The collaboration will ensure provision of VSAT services by PTCL to further support and expand the network coverage across the country.
The agreement was signed by Saad Muzaffar Waraich, Chief Technology & Information Officer, PTCL, and Li Wenyu, Chief Financial Officer, ZONG 4G, during the ceremony held at Zong 4G Headquarters in the presence of the senior management and officials of respective companies.
The collaboration will ensure state-of-the-art VSAT satellite services to further enhance the network coverage and enabling customers from remote areas to enjoy increased speed through Zong 4G’s widest coverage.
Being the most experienced in the domain of satellite communication, PTCL also has extensive ground support, operation and implementation infrastructure to serve a variety of satellite communication applications.
The company will offer a complete spectrum of end-to-end connectivity to Zong 4G designated sites.
Speaking on the occasion, Saad Muzaffar Waraich, Chief Technology & Information Officer, PTCL, said, “We are pleased to sign the agreement with ZONG 4G. PTCL has been serving as the communication backbone of the country since inception of Pakistan and this partnership will help them to expand their high-quality voice and data services to the underserved markets of Pakistan.
“We are at the forefront of leading the digitization across Pakistan through such partnerships. PTCL continues to play its role in the development of telecom infrastructure, contributing to the overall economic growth of the country.”
Commenting on the partnership, Mannan Shabbir, Executive Director, Corporate Affairs Division & Company Spokesperson, said, “Being the first and the only operator with more than 10,000 4G sites across the country, Zong 4Gis providing the widest 4G coverage to the largest 4G subscriber base in the Pakistan at an unprecedented scale.
“Our partnership with PTCL is a testament to our customer-centric approach by providing our customers with the best possible services and solutions through our ever-expanding data network. Leading digitalization efforts across Pakistan, we continue to thrive, not only in the mainstream cities, but also in far-flung and remote areas of Pakistan providing reliable and seamless connectivity.”
As the winner of ‘Best in 4G services’ award by the Consumers Association of Pakistan and with more than 11 Million 4G customers, Zong 4G is the leading 4G operator of the country.
Through its continued investment in the network and infrastructure, the company is enabling its customers in every nook and corner of the country to experience world-class 4G services.
The collaboration will further enhance the digital agenda of Zong 4G and PTCL in empowering millions to remain connected anywhere and everywhere.
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SBP restrains banks’ chairmen from appointing adviser
KARACHI: State Bank of Pakistan (SBP) on Tuesday restrained board / chairman of banks from appointing adviser in any capacity.
The central bank amended Prudential Regulations G-1 to substitute Para C-3, which is as under:
“3. The Chairman/Board shall not appoint an `Advisor’ in any capacity. Accordingly, all Banks/DFIs are advised to ensure appropriate skill mix of the Board keeping in view the overall risk profile of the institution.”
All banks/DFIs are advised to ensure compliance within six months of the date of issuance of the circular letter, the SBP said.
After which, the non-compliance shall attract punitive action under relevant provisions of the Banking Companies Ordinance, 1962.
Earlier the SBP through amendment dated April 24, 2009 issued the following:
“Chairman of the Board of Directors may, if deemed necessary, appoint one advisor to advise and facilitate him in discharge of his duties/responsibilities. The appointment of such an advisor will be subject to the following conditions:
a) The advisor must possess the required technical experience relating to banking and finance at a senior level to enable him/her to render a professional advice to the Board.
b) The terms of reference of the advisor shall be approved by the Board.
c) A reasonable remuneration may be paid to the advisor with the approval of the Board of Directors.
d) The advisor may attend the meetings of Board of Directors and Board Committees in which his/her participation is required but he/she will not be a member of the Board and/or its committees.
e) The advisor shall be required to sign an appropriate confidentiality agreement to ensure confidentiality of documents / information that may come to his/her knowledge, before assuming any such role.”
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Equity market extends losses on concerns over budgetary measures
KARACHI: The equity market extended previous day’s losses on Tuesday owing to concerns over new budgetary measures under planned IMF program.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,404 points as against 36,902 points showing a decline of 498 points.
Analysts at Arif Habib Limited said that the index saw a significant draw down of 765 points.
Issues contributing to the negative sentiment included a key meeting among Cement manufacturers to discuss the market share and possibly redefine the same in north and south regions.
Besides, recent resignation of FM and joining of the Advisor to Finance Ministry caused concern among investors for deferral in finalization of IMF.
In addition, future contract in the on-going rollover week attracted selling interest from investors. Cement Sector led the volumes with 19 million shares, followed by Chemical (15 million).
LOTCHEM managed to move upward though the price gains were contained. SNGP after showing phenomenal results, announced yesterday, saw lower circuit by session’s end.
Sectors contributing to the performance include Fertilizer (-66 points), Banks (-66 points), Cement (-58 points), E&P (-58 points), O&GMCs (-51 points).
Volumes continued declining trend and reached 120 million shares from 126 million shares (-5 percent DoD). Average traded value increased by 13 percent to reach US$ 35.4 million from US$ 31.3 million.
Stocks that contributed significantly to the volumes include LOTCHEM, KEL, SNGP, BOP and PIOC, which formed 35 percent of total volumes.
Stocks that contributed positively include MCB (+4 points), MUREB (+3 points), UBL (+2 points), FATIMA (+2 points), and MEBL (+2 points). Stocks that contributed negatively include HBL (-33 points), DAWH (-30 points), ENGRO (-23 points), OGDC (-23 points).