Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR taking significant steps to improve tax administration: IMF

    FBR taking significant steps to improve tax administration: IMF

    ISLAMABAD: International Monetary Fund (IMF) on Friday said that Federal Board of Revenue (FBR) is undertaking significant steps to improve tax administration and its interface with taxpayers.

    An International Monetary Fund (IMF) mission, led by Ernesto Ramirez Rigo, visited Islamabad and Karachi during September 16–20, 2019 to take stock of economic developments since the start of the Extended Fund Facility (EFF) and discuss progress in the implementation of economic policies.

    A full mission for the first review under the EFF, is planned for late-October. At the conclusion of the staff visit, Ramirez Rigo issued the following statement:

    “While the authorities’ economic reform program is still in its early stages, there has been progress in some key areas. The transition to a market-determined exchange rate has started to deliver positive results on the external balance, exchange rate volatility has diminished, monetary policy is helping to control inflation, and the SBP has improved its foreign exchange buffers.

    “There has been a significant improvement in tax revenue collections, with taxes showing double-digit growth net of exporters refunds. Moreover, the FBR is undertaking significant steps to improve tax administration and its interface with taxpayers. Staff and the authorities have analyzed the worse than expected fiscal results of FY2018/19, which were partially the result of one-off factors and should not jeopardize the ambitious fiscal targets for FY2019/20. Importantly, the social spending measures in the program have been implemented.

    “The near-term macroeconomic outlook is broadly unchanged from the time of the program approval, with growth projected at 2.4 percent in FY2019/20, inflation expected to decline in the coming months, and the current account adjusting more rapidly than anticipated. However, domestic and international risks remain, and structural economic challenges persist. In this context, the authorities need to press ahead with their reform agenda.

    “In order to complete the first review, an IMF staff team plans to return to Pakistan in late-October to assess the end-September program targets.”

  • Stock market shed 73 points in range bound activity

    Stock market shed 73 points in range bound activity

    KARACHI: The stock exchange declined by 73 points on Friday in a range bound trading activity.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,111 points as against 32,184 points showing a decline of 73 points.

    Analysts at Arif Habib Limited said that the market remained range bound today, trading above 32,000 level, although moved between +149 points and -129 points during the day.

    Volumes again registered healthy growth from 137 million shares yesterday to 153 million shares.

    Oil Chain remained under selling pressure with the exception of PSO that showed considerable gain.

    Banks, Steel, Cement also downplayed, which brought the index under pressure in the second session. MLCF issued financial results today that saw 85 percent right issuance besides nominal dividend of 5 percent.

    By the end of session, MLCF hit lower circuit and closed at that level. Cement sector led the volumes with 26.3 million shares followed by Technology (16 million) and Chemical (13.4 million).

    Scrip wise activity reflects MLCF registering 18 million shares, followed by TRG (6.9 million) and PIBTL (6.6 million).

    Sectors contributing to the performance include Cement (-49 points), Banks (-25 points), Technology (-11 points), Investment Banks (+29 points), O&GMCs (+15 points).

    Volumes increased further increased from 137 million shares to 153 million shares (+12 percent DoD). Average traded value on the contrary witnessed slight decline of 1.3 percent DoD to reach US$ 37.2 million as against US$ 37.7 million.

    Stocks that contributed significantly to the volumes include MLCF, TRG, PIBTL, LOTCHEM and UNITY, which formed 29 percent of total volumes.

    Stocks that contributed positively include DAWH (+30 points), PPL (+20 points), PSO (+14 points), BAFL (+12 points) and EPCL (+7 points). Stocks that contributed negatively include OGDC (-22 points), HBL (-19 points), LUCK (-18 points), FCCL (-8 points), and TRG (-8 points).

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  • Rupee gains 16 paisas on improved inflows

    Rupee gains 16 paisas on improved inflows

    Karachi, September 20, 2019 – The Pakistani rupee appreciated by 16 paisas against the US dollar on Friday, buoyed by improved inflows of export proceeds and workers’ remittances, according to traders and market analysts.

    (more…)
  • Nine countries sign declaration to enhance cross-border cooperation at CAREC Energy Ministers’ Dialogue

    Nine countries sign declaration to enhance cross-border cooperation at CAREC Energy Ministers’ Dialogue

    TASHKENT, UZBEKISTAN: Nine countries in Central and West Asia, including Pakistan, on Friday signed a historic declaration that will accelerate cross-border cooperation on energy issues and move the region a step closer to the creation of a regional energy market, said a statement issued by Asian Development Bank (ADB).

    Energy ministers and leaders from Afghanistan, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, and Uzbekistan signed the 10-point declaration at the end of the Central Asia Regional Economic Cooperation (CAREC) Energy Ministers’ Dialogue held in Tashkent.

    The meeting marks the first time energy ministers from Central and West Asia have come together to discuss common regional energy challenges. Uzbekistan’s Minister for Energy, Alisher Sultanov, opened the meeting on behalf of the Prime Minister of Uzbekistan Abdulla Aripov.

    The opening address was delivered by Asian Development Bank (ADB) Vice-President for Private Sector Operations and Public–Private Partnerships Mr. Diwakar Gupta. The energy minister from Turkey, Fatih Dönmez, attended the meeting as an observer.

    The declaration sets the region on a faster reform path toward more liberal energy markets with greater private sector participation and investment, increased power connections and exchanges between countries, and a strong commitment to tap renewable energy sources and clean technologies.

    The group also endorsed a new CAREC Energy Strategy for the next 10 years that will provide the roadmap to reach the region’s goal of a secure energy future.

    “This is a historic achievement and an important commitment,” said Gupta. “The energy sector drives economic growth in the region, so this unprecedented gathering of energy leaders is very important. Today, they have strengthened their commitment to work together to deliver an electricity supply for the region that is reliable and affordable, develop modern energy markets, and embrace clean energy as a more efficient, sustainable source of power.”

    The meeting of ministers has come at a critical time for the region as its energy sector faces a number of challenges. CAREC countries are rich in natural resources, but uneven distribution of these resources—compounded by inadequate infrastructure and inefficient state-owned energy utilities—means some countries continue to face power shortages. To keep pace with the region’s economic growth and an increasing demand for power, the region will need to double its current power system capacity by 2030. The capacity expansion will require sizable investments, estimated to be about $400 billion in cumulative investments up to 2030.

    Regional energy cooperation, modern energy markets, and a significant increase in private investment in the energy sector is an opportunity to overcome these challenges and to create a stable supply of power for domestic use and for export to attractive energy markets in the People’s Republic of China (PRC), Pakistan, and India, along with new strategic transit opportunities for oil and gas through Turkey and Georgia.

    Unlocking private sector participation and investments is key to meeting the region’s significant energy infrastructure needs. The declaration committed the region to policy reforms in creating a more conducive business environment for attracting private investments across the region.

    “The region cannot achieve the level of investment needed without large private investments,” said ADB Director General for Central and West Asia Werner Liepach. “Private investments demand predictive policies, stable regulations, transparency, and good governance. I am deeply impressed by the CAREC countries’ strong commitments to reforms, which is the only way towards a more reliable, affordable, modern, and sustainable energy future.”

    Following the Ministerial Dialogue, officials attended the opening of the 4th CAREC Energy Investment Forum. The 2-day forum aims to unlock and guide private investment in the region’s energy sector and is attended by a mix of energy leaders, policy makers, project developers, technology providers, investors, international financial institutions, members of the diplomatic community, academia, and young entrepreneurs and students.

    ADB is the secretariat of the CAREC Program. Since 2001, the CAREC Program has financed 196 regional projects worth $34.5 billion in the areas of transport, energy, and trade in its member countries. Over a third of this amount, or $12.8 billion, has been financed by ADB; $13.8 billion by other development partners such as the World Bank, the Islamic Development Bank, and the European Bank for Reconstruction and Development; and $7.9 billion from CAREC governments. The 11 members of CAREC are Afghanistan, Azerbaijan, the PRC, Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.

  • PIA’s empty flights cause Rs184 million losses

    PIA’s empty flights cause Rs184 million losses

    KARACHI: The Auditor General of Pakistan (AGP) has detected Rs184 million losses due mismanagement by Pakistan International Airlines (PIA) for carrying empty flights.

    The AGP in its audit report for PIA Islamabad Office for the year 2016/2016, observed that 46 flights were operated without any passenger, resulting loss of Rs184 million. These flights are other than 36 flights for Hajj and Umrah.

    The AGP said that General Manager, Network and Schedule Planning, PG-X(Reporting to Director Marketing) was responsible to supervise and monitor proper designing of long term and short term operating plans; and to focus on network management and evaluation of multiple scenario of schedule changes.

    The audit of the view that operation of flight without passenger shows lack of proper planning and control on the part of the management.

    “The matter was report to the management in October, 2018 but no reply was received. DAC meeting was not convened despite requests by the audit.”

    The AGP recommended to investigate the matter with a view to fix responsibility on the persons at fault.

  • Sales tax registration made mandatory for buyers of ginned cotton

    Sales tax registration made mandatory for buyers of ginned cotton

    ISLAMABAD: Federal Board of Revenue (FBR) has made sales tax registration mandatory for persons buying ginned cotton.

    The FBR issued SRO 1087(I)/2019 and said that the person receiving ginned cotton shall pay sales tax and shall discharged the liability in the following manner:

    (a) the recipient of the supply of ginned cotton shall be duly registered under the Sales Tax Act, 1990, and the ginner shall not make any supply of ginned cotton to any person who is not so registered;

    (b) the ginner shall issue a tax invoice on the supply of taxable goods under Section 23 of the Sales Tax Act, 1990 indicating the value of taxable supply and the amount of tax due on such supply, along with other particulars as prescribed therein. The ginner shall also file the monthly return in accordance with the rules prescribed under the Act;

    (c) the tax invoice shall be issued of the date on which the ginned cotton was dispatched;

    (d) the recipient of ginned cotton shall deposit the tax due thereon under a payment challan indicating the name and registration number of supplier, along with the return for tax period in which invoice is issued for the relevant supply;

    (e) if the recipient fails to deposit sales tax payable on ginned cotton purchased by him by the due date for the relevant tax period, besides any other action which may be taken against him under the said Act, he shall not be entitled to claim adjustment or refund of input tax in respect of such purchase unless he pays the amount of additional tax or penalties chargeable on such late deposit under Section 33 and 34 of the said Act;

    (f) in case the ginner fails to declare the supply of ginned cotton in his return and same is detected during the course of an audit or otherwise, the amount due on such supply shall be recoverable from the ginner in accordance with the provisions of the said Act and the rules made thereunder;

    (g) the cases involving non-payment or short-payment of sales tax by a ginner or a recipient on supplies of ginned cotton made under the provisions of this notification shall be adjudicated by the officer having jurisdiction in the area where the contravention is made; and

    (h) in case a ginner deposits the tax due on the supply of ginned cotton, the same shall absolve the recipient from liability to pay tax on such supply under this notification.

  • 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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