KARACHI: The total inflow of foreign private investment increased by 51 percent growth during first quarter (July-September) of 2019/2020, State Bank of Pakistan (SBP) said on Thursday.
(more…)Author: Mrs. Anjum Shahnawaz
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Stock market ends down by 383 points on selling pressure
KARACHI: The stock market ended with decline of 383 points on Thursday owing to selling pressure seen in the market.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,899 points as against 34,281 points showing a decline of 383 points.
Analysts at Arif Habib Limited said that the market opened on a positive note with +12 points and 0.4 million shares.
The benchmark index went up to 80 points earlier in the session, which was followed by growing selling pressure.
The only stock that mattered today was clearly LOTCHEM, which realized trading volume of 59.6 million shares (approx. 16 percent of its free float and 43 percent of the total trading volume of today).
No other stock managed to cross even 6 million share traded volume. LOTCHEM announced 9 million financial results, which was largely inline with street estimates, however, cherry on top was 15 percent dividend that matched last year’s declaration.
On the whole, index lost 383 points with a total volume of 138 million shares, most of which was contributed by Chemical sector and followed by Technology (8.1 million) and Power (7.9 million). Among scrips, KEL (5.2 million) and TRG (4.2 million) followed LOTCHEM.
Sectors contributing to the performance include Banks (-147 points), E&P (-87 points), Cement (-36 points), Pharma (-33 points) and O&GMCs (-23 points).
Volumes declined from 151.4 million shares to 137.9 million shares (-9 percent DoD). Average traded value also declined by 23 percent to reach US$ 24.1 million as against US$ 31.4 million.
Stocks that contributed significantly to the volumes include LOTCHEM, KEL, TRG, UNITY and QUICE, which formed 55 percent of total volumes.
Stocks that contributed positively include KAPCO (+7 points), COLG (+7 points), ICI (+4 points), MUREB (+4 points) and EFERT (+3 points). Stocks that contributed negatively include HBL (-54 points), UBL (-39 points), MARI (-26 points), PPL (-25 points), and LUCK (-19 points).
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Rupee gains 13 paisas against dollar as SBP issues anti-money laundering framework
KARACHI: The Pak Rupee gained 13 paisas against dollar on Thursday owing to guidelines issued by the central bank to prevent trade based money laundering.
The rupee ended at Rs155.89 to the dollar from previous day’s closing of Rs156.02 in interbank foreign exchange market.
The SBP on October 15, 2019 issued framework to create deterrence against money laundering and terror financing through trade related transactions.
The central bank made it mandatory for banks to ensure customers due diligence while approving export or import forms for issuance of amount.
On the other hand the government also launched crackdown against hoarding of the US dollar. In this connection a day earlier the Federal Board of Revenue (FBR) issued notices to foreign exchange companies to provide information of those persons who purchased dollars during recent past.
The government believed that many persons had purchased dollars but kept the foreign currency on hope of further depreciation of the local currency.
The market sources said that falling import bill was another component for rupee appreciation.
The foreign exchange market was initiated in the range of Rs155.95 and Rs156.00. The market recorded day high of Rs155.98 and low of Rs155.85 and closed at Rs155.89.
The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs155.70/Rs156.20, the same previous day’s level, in cash ready market.
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Rupee gains 11 paisas against dollar in early trade
KARACHI: The Pak Rupee gained 11 paisas against dollar in early trade on Thursday owing to guidelines issued by the central bank to prevent trade based money laundering.
The exchange rate was recorded at Rs155.91 to the dollar in early trade in interbank foreign exchange market. The rupee ended Rs156.02 to the dollar in last day trading.
The SBP on October 15, 2019 issued framework to create deterrence against money laundering and terror financing through trade related transactions.
The central bank made it mandatory for banks to ensure customers due diligence while approving export or import forms for issuance of amount.
On the other hand the government also launched crackdown against hoarding of the US dollar. In this connection a day earlier the Federal Board of Revenue (FBR) issued notices to foreign exchange companies to provide information of those persons who purchased dollars during recent past.
The government believed that many persons had purchased dollars but kept the foreign currency on hope of further depreciation of the local currency.
The market sources said that falling import bill was another component for rupee appreciation.
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Notices for filing income tax returns of past 10 years may be issued
ISLAMABAD: Tax officials have been empowered to issue notices to taxpayers for filing income tax returns of past 10 years.
Sources in Federal Board of Revenue (FBR) said that there are many cases had been identified where persons had accumulated assets and making huge amount transactions but not filing their income tax returns and wealth statements.
The sources said that the tax authorities may invoke Section 114(5) of the Income Tax Ordinance, 2001 for the purpose to compel such persons to file their returns of past 10 years.
The Section 114(5) of the Ordinance stated: “A notice under sub-section (4) may be issued in respect of one or more of the last five completed tax years or assessment years.
“Provided that in case of a person who has not filed return for any of the last five completed tax years, notice under sub-section (4) may be issued in respect of one or more of the last ten completed tax years.”
Sub-Section (4) of Section 114 of the Ordinance stated that subject to sub-section (5), the Commissioner may, by notice in writing, require any person who, in the Commissioner’s opinion, is required to file a return of income under this section for a tax year or assessment year but who has failed to do so to furnish a return of income for that year within thirty days from the date of service of such notice or such longer or shorter period as may be specified in such notice or as the Commissioner may allow.
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PTCL declares 14.33 percent growth in after tax profit
KARACHI: Pakistan Telecommunication Limited (PTCL) on Wednesday declared 14.33 percent growth in profit after tax for the nine-month period ended September 30, 2019.
The company announced profit after tax of Rs5.46 billion during January – September 2019 as compared with Rs4.78 billion in the same period of the last year.
The company announced Rs1.07 as earnings per share (EPS) for the period under review as compared with Rs0.94 EPS of the same period in last year.
The total revenue of the company was flat at Rs43.774 billion in January – September 2019 as compared with Rs53.55 billion in the corresponding period of the last year.
PTCL posted gross profit of Rs13.179 billion during nine-month period ended September 30, 2019 as compared with Rs13.721 billion in the same period of the last year.
The administrative, general and selling/marketing expenses of the company were at Rs8.73 billion during January – September 2019 as compared with Rs8.478 billion in the same period of the last year.
Other income of the company increased to Rs3.82 billion as compared with Rs2.18 billion.
The profit before tax for the period was at Rs8.03 billion as compared with Rs6.927 billion in the same period of the last year.
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UBL posts 48 percent increase in after tax profit
KARACHI: United Bank Limited (UBL) has announced 48 percent increase in after tax profit to Rs14.4 billion in nine-month period ended September 30, 2019.
The net profit of the bank was Rs9.73 billion for the period January – September 2018, according to announcement on Wednesday.
UBL also announced Rs11.77 earning per shares (EPS) for the period as compared with Rs7.95 EPS in the same period of the last year.
Net mark-up / interest income of the bank registered increase to Rs45.34 billion during first three quarters of financial year 2019 as compared with Rs41.88 billion in the corresponding quarters of the last year.
Total mark-up/interest expenses of the bank increased to Rs29.24 billion as against previous year’s Rs28.155 billion.
UBL allowed provisioning and write-offs to the tune of Rs6.82 billion during the period under review as compared with Rs7.44 billion in the same period of the last year.
Profit before taxation of the bank was Rs26.3 billion during January – September 2019 as against Rs16.49 billion.
The bank discharged tax liability to the tune of Rs11.9 billion for nine-month period ended September 2019 as compared with Rs6.76 billion paid in the corresponding period of the last year.
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Tax officials empowered to recover short payment without notice
KARACHI: Tax officials have been authorized to recover short payment of sales tax through freezing bank accounts of taxpayers without serving show cause notice.
Officials in Federal Board of Revenue (FBR) said that the officers of Inland Revenue had been authorized to make recovery of short payment of sales tax as declared in return of a taxpayer by taking measures including freezing bank account without issuing a show cause notice.
The officials said that under Section 11A of Sales Tax Act, 1990, the powers of Inland Revenue officers had been explained.
Section 11A: Short paid amounts recoverable without notice
Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:
Provided that no penalty under section 33 of this Act shall be imposed unless a show cause notice is given to such person.
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Business community demands Pakistan Customs to launch Authorized Economic Operator certification
KARACHI: The business community has demanded Pakistan Customs of launching Authorized Economic Operators (AEO) certification program, which will enable business and industrial units to become trustworthy member of international supply chain.
In view of its significance and importance, it is imperative that Pakistan Customs, being member of the World Customs Organizations, should immediately launch the AEO Certification program without further delays to rank among the countries having fully operational AEO program.
AEO certificate will enable the business and industrial entities to become the trustful member of international supply chains and to comply high security standards.
This was stated by Muhammad Jawed Bilwani, Focal Person, Authorized Economic Operators’ Stakeholders Group notified by Pakistan Customs & Chairman Pakistan Apparel Forum.
Exchanging views in the first meeting of Authorized Economic Operators’ Stakeholders Group held on Wednesday at the PHMA House Karachi, he articulated that Pakistan Custom is envisaging a robust taxpayers facilitation program in their supply chain according to International Standards.
Many countries have successfully introduced such programs under “Authorized Economic Operators (AEOs). Under the anticipated AEO program for Pakistan, eligible businesses will be recognized as credible clients and they will accrue various benefits, nationally and internationally, in accordance with their AEO status. AEO Stakeholders group will seek inputs and recommendations from the business and industrial community of Pakistan to successfully launch the AEO program from Pakistan.
In a presentation to the AEO Stakeholders’ Group, Saeed Akram, Collector (Customs) briefed that the Pakistan Customs is the member of World Customs Organization which comprise of 182 members divided into six regions and responsible for processing of 98 percent of the international trade.
The Customs role has been evolved and transformed from the Revenue Collection to Economic Development and Security with focus on Supply Chain.
One of the pillars of WCO’s Framework of Standards to Secure and Facilitate global trade (SAFE) which is a partnership / cooperation program between customs and trade aiming to secure and facilitate global supply chain security through Mutual Recognition Agreements (MRAs).
According to the World Customs Organization (WCO), an authorized economic operator (AEO) is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.
Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.
AEO is a voluntary program wherein any economic actor in the international supply chain having dealing with the Customs can participate. Currently, AEO program is operational in 83 countries while under-developed in 18 countries which includes Pakistan.
To launch AEO program in Pakistan, the Government has introduced Section 212A of Customs Act, 1969 and also drafted Rules.
The ECC has also approved summary for introduction of AEO in Pakistan and timeframe for launch of AEO/MRA is communicated to WCO while discussions with Business Community initiated to Finalize Recommendations.
In another presentation, Sheeraz Ahmed, Additional Collector (Customs) highlighted that Comprehensive AEO Program has been conceived covering all sector directly dealing in international trade, mainly the exporters and importers.
Proposed Benefits on AEO Certifications are Speedy green channel and high level of facilitation in imports / export consignments, thereby ensuing shorter cargo release time – Priority Placement, Assessment & Examination and Scanning on priority by giving front line of treatment, Facility of Direct Port Delivery (DPD) and/ or Direct Port Entry(DPE): Facility of self -sealing of export goods, Facility of deferred payment of duty/taxes, Automated disbursal of drawback amount within 72 hours of the clearance of export GD, 50 percent reduction in the quantum of required Bank Guarantee,
Speedy completion of valuation, classification disputes/Investigations – issuance of special rulings, 24/7 clearances on request, if required, at all sea ports and airports, Single point of assistance to AEOs through designated relationship officer in relation to legitimate concerns, Access cards for hassle free entry to Custom Houses, terminals, off-dock terminals and dry ports.
Benefits under consideration are account-based processing rather than transaction-by-transaction clearance of accounts; Low documentary and data requirements; Choice of location for control/clearance of goods at the premises of the authorized economic operator or another place authorized by customs; Faster clearance at transit points and fewer checks en-route; Prior notification and treatment in case of selection for physical controls; Priority use of non-intrusive inspection techniques when examination is required; Reduction of applicable fees or charges for AEOs; Deferred payment of duties, taxes, fees, and charges or periodic payment of duties/taxes; Tax privileges to be granted by speedier processing of tax refunds, drawback, and other permissions/authorizations; Extended Customs services beyond normal working hours; Priority response to request for rulings from Customs authorities; Eligibility for self-audit or reduced audit programmes etc.
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New concessional list should be considered under Pakistan, Malaysia FTA
KARACHI: Consul General of Malaysia Khairul Nazran Abd Rahman has said that Malaysia and Pakistan need to agree upon on a new concessional list under the existing Free Trade Agreement (FTA).
Large number of requests have been received from different segments for addition of numerous items in the FTA list in which Pakistani Basmati rice was also not included hence it was being imported by Malaysia from India and Vietnam.
Speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI), Malaysian CG said that as Pakistani Basmati rice was not in the FTA list, it was not competitive when compared with other countries exporting this important commodity to Malaysia.
“Meanwhile, the business communities of both countries must hold regular interactions in order to fully utilize and benefit from the existing FTA which would certainly improve the existing trade ties between the two brotherly countries”, he added.
General Secretary Businessmen Group & Former President KCCI AQ Khalil, President KCCI Agha Shahab Ahmed Khan, Senior Vice President Arshad Islam, Vice President Shahid Ismail, KCCI Managing Committee members and others also attended the meeting.
Malaysian Consul General pointed out that the volume of trade improved marginally by 2.5 percent to US$1.47 billion in 2018 as compared to US$1.34 billion in 2017. “Malaysia’s Palm oil is a major product, which alone represents 47 percent of total trade while other traditional products including Pakistani textiles are also being exported to Malaysia. We need to do more and must take advantage of the FTA which was enforced in 2008 and must also focus on non-traditional items as well”, he added.
He said that Malaysia and Pakistan must not remain confined to improving the political and economic ties only but other areas of strategic importance particularly defense, education and tourism must also get special attention from both sides. “We are now focusing on promoting and cooperating in the tourism sector as our cooperation has remained mostly on trade and investment. The tourism sector, having immense potential, has to be given attention which would prove beneficial for the two nations”, he added.
Congratulating the newly elected Office Bearers, the Consul General said that KCCI was not a stranger for him as it was his second visit to this Chamber after assuming charge as Consul General in Karachi last year in the month of June 2018. My intention of today’s visit to KCCI is to explore trade and investment opportunities and identify the potential sectors, particularly the non-traditional goods.
Referring to Malaysian Prime Minister Mahathir Bin Mohamad’s visit to Pakistan and PM Imran Khan’s visit to Malaysia, he said, “Both countries have new governments in place and a lot of discussions have taken place and now we need to see the results. Hence, it is right time for the business communities to focus more on improving trade and investment”, he added.
Speaking on the occasion, President KCCI Agha Shahab Ahmed Khan said, “Today we are living in the 21st century in which nobody is neither dependent nor independent but everyone of us are inter-dependent. Hence, we all must live in harmony and focus on expanding ties particularly in those sectors where there was a comparative advantage.”
Commenting on the scenic sites in the northern areas of Pakistan and Malaysia, he said that Pakistanis were keen to visit Malaysia to see its natural beauty but many of them were unaware of the tourism opportunities in Malaysia and same was the case with Malaysians who don’t know much about the mesmerizing landscapes in northern areas of Pakistan. In this regard, both sides will have to make efforts and devise effective strategies to promote the tourism sector.
To improve the existing trade ties, he opined that Pakistan can exports many of its traditional and non-traditional goods to Malaysia particularly rice, furniture, electric cables, cosmetics, jewelry, food stuff and many other products in which the country has got comparative advantage.
He further advised the Malaysian CG to arrange visit of a Malaysian delegation to Karachi and after identifying the potential sectors, the Karachi Chamber will also look into the possibility of sending relevant delegations to Malaysia so that the trade and investment ties between the two countries could prosper.
Agha Shahab also stressed that the existing FTA needs to be revisited and updated with a list of products having good potential for penetrating into the Malaysian market whereas both countries must also look into the possibility of undertaking joint ventures in the Halal food sector.
He also invited the Malaysian business community to participate in 17th My Karachi – Oasis of Harmony Exhibition scheduled to be organized at the Expo Center from April 17th to April 19th, 2020 which would surely provide a perfect networking platform and help them in identifying the potential products which can be supplied in the Pakistani markets.