KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as of December 09, 2021.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 8.97 | 9.47 |
| 2 – Week | 9.09 | 9.59 |
| 1 – Month | 9.56 | 10.06 |
| 3 – Month | 10.58 | 10.83 |
| 6 – Month | 11.28 | 11.53 |
| 9 – Month | 11.39 | 11.89 |
| 1 – Year | 11.44 | 11.94 |
KARACHI: The US dollar recorded a new record high of Rs178 at intraday trading on Thursday but retreated and closed at Rs177.61, which is also an all-time high by closing at interbank foreign exchange market.
Currency experts said that during the intraday trading the dollar touched Rs178, which was never seen in the past. However, the Pak Rupee (PKR) recovered some losses during the day but closed at yet another historic low of Rs177.61 in interbank foreign exchange market.
The experts said that burgeoning import bill kept pressure on dollar demand during the day. They said that the external inflows were not sufficient to support the local unit.
Last week the Saudi Fund deposited an amount of $3 billion with the State Bank of Pakistan (SBP) to support Pakistan, to manage balance of payment.
The experts said that high international prices and growing domestic demand escalated the import bill.
The official data of Pakistan Bureau of Statistics (PBS) showed the import bill of the country climbed up by 69.17 per cent to $33 billion during first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.
KARACHI: The governor of State Bank of Pakistan (SBP), Dr. Reza Baqir has highlighted issues related to cybersecurity faced by banking system at the Islamic Financial Services Board (IFSB), Malaysia organised the 13th Public Lecture Series on the theme of ‘Sustainability and Cyber Resilience’ on December 8, 2021 in Abu Dhabi, United Arab Emirates.
(more…)Karachi, Pakistan – The State Bank of Pakistan (SBP) has published the exchange rates for December 09, 2021, providing valuable insights for customers based on the weighted average rates of commercial banks.
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KARACHI: The planned restrictions on automotive industry likely to increase the cost of motor vehicles and simultaneously to reduce the demand.
According to analysts of Topline Securities on Auto Sector, the government is planning to introduce measures to control rising import bill of the country by imposition of increased duties on luxury items including cars. The proposals according to news reports include increase in duties on import of Completely Built Unit (CBUs) and higher Federal Excise Duty (FED) on locally manufactured vehicles.
READ MORE: Pakistan’s car sales declines by 6% in October
The proposed measures under consideration include: 1) increase in regulatory duty (RD) on electric vehicles with 50 KWH battery pack from 10 per cent to 50 per cent, 2) increase in custom duty to 50 per cent from 15 per cent on Hybrid Vehicles on 1501-1800cc cars, 3) increase in FED from 5 per cent to 10 per cent on locally manufactured cars with engine capacity of 1500cc+.
The government has shelved the plan to impose ban on import of CBU and is likely to increase duties and taxes only to curtail rising import bill.
To recall, Pakistan total imports surged by 65 per cent to $25bn in first four months of fiscal year 2021-2022, which led to a current account deficit of $5.1 billion versus surplus of $1.3 billion in same period of the last fiscal year.
READ MORE: Ghandhara Nissan to launch Chery vehicles current fiscal
Pakistan total transport group imports surged by 140 per cent to $1.5bn in first four months of the current fiscal year exerting pressure on total import bill of the country.
It is pertinent to note that as per the Auto Policy of 2016-21, auto manufacturers were allowed to import 100 units of CBU for test marketing before they can start production of cars locally.
This led to sharp rise in CBU imports and there are news reports of potential misuse of the policy as few new entrants have imported more than 100 units.
READ MORE: Tax rates on motor vehicles during tax year 2022
As per said news reports, around 7000 units MG HS by MG Motors have been delivered to the buyers since November 2020 till date whereas it local production of cars just started recently in May 2021.
Similarly, import of other CBUs which includes Toyota Cross, Land Cruiser, Honda Accord etc have also led to higher import bill.
It will be interesting to see how the concerned authorities address the issue as the old auto policy expired in June 2021 and we still await for the new policy.
During the last fiscal year, used CBU imports clocked in at 21,247units whereas new CBU imports touched 6,394 units. The combined (old + new CBUs) contributed around 11 per cent of Pakistan car sales in the last fiscal year.
READ MORE: Indus Motors posts 195% growth in net profit to Rs5.42bn
The analysts said that latest numbers for the same are not available but looking at increased interest of new cars specially in the SUV segment we expect this number to be much higher in FY22.
They believe the decision to increase regulatory duty on CBUs will result in high car prices and may result in reduced demand for imported CBUs by new entrants. It may also force the new entrants to start manufacturing vehicles locally.
However, since the proposal to ban import completely is highly unlikely, the above stated measures are not likely be materially positive for local listed assemblers.
Additionally, expected increase in Federal Excise Duty (FED) to 10 per cent from 5 per cent on 1500+cc locally assembled cars and rising KIBOR (Karachi Interbank Foreign Exchange Rate) is likely to impact car demand going ahead.
READ MORE: SBP issues KIBOR rates on December 08, 2021
Stringent regulatory measures by SBP on auto financing and rising KIBOR is likely to impact car sales going ahead. It is important to note that, auto-financing on average contribute around 30-40 per cent of the total car sales of the industry. In November 2021, Pakistan car sales are anticipated to drop by 10 per cent MoM owing to the above stated measures.
The analysts expect Pakistan car sales to grow by 10 per cent in the ongoing fiscal year after a strong sales recovery in last fiscal year.
They have an ‘underweight’ stance on Pakistan Auto Sector based on the premise of 1) rising kibor, 2) stringent auto-financing policies, 3) increasing cost pressures, 4) likely increase in FED, and 5) expected macroeconomic slowdown.
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as of December 08, 2021.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 8.99 | 9.49 |
| 2 – Week | 9.11 | 9.61 |
| 1 – Month | 9.55 | 10.05 |
| 3 – Month | 10.62 | 10.87 |
| 6 – Month | 11.30 | 11.55 |
| 9 – Month | 11.40 | 11.90 |
| 1 – Year | 11.45 | 11.95 |
KARACHI: The US dollar climbed up to a new record high of Rs177.43 at the closing of interbank foreign exchange market on Wednesday.
The dollar reached crossed the previous record high which was on December 7, 2021 at Rs176.79 in the interbank foreign exchange market. The Pak Rupee (PKR) lost 64 paisas against the dollar when compared with the last day closing.
Currency experts said that the dollar demand for import and corporate payments were remained high during the day.
They said that deposit of $3 billion by Saudi Development Fund (SDF) with the State Bank of Pakistan (SBP) had failed to impact the rupee value. Further, the monetary tightening by the SBP also unable to support the rupee. The SBP in its last monetary policy on November 19, 2021 jacked up the key policy rate by 150 basis points to 8.75 per cent.
READ MORE: SBP increases policy rate by 150 basis points to 8.75%
The experts said that the local unit would only be supported by curtailing the imports.
The import bill of the country surged by 69.17 per cent to $33 billion during first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.
Karachi, Pakistan – The State Bank of Pakistan (SBP) has released the exchange rates for December 08, 2021, offering valuable information based on the weighted average rates of commercial banks.
(more…)
The government is set to introduce a finance supplementary bill which may bring major changes in sales tax regime, sources said on Wednesday.
The sources said that in the Sales Tax Act, 1990, zero-rating under the Fifth Schedule is proposed to be streamlined and certain entries are to be withdrawn.
Exemption regime under Sixth Schedule is proposed to be curtailed including pharmaceutical sector and restricted to import and local supply of essential commodities only.
Reduced rates of sales tax under Eight Schedule on certain items are proposed to be streamlined in order to achieve equity in the tax system.
Likewise, sales tax on import of high-end mobile phones in CBU condition under Ninth Schedule is proposed to be rationalized. The scope of Tier-1 retailers is also proposed to be rationalized.
The government is also planning to bring changes in Customs Act, 1969.
Under the Customs Act, 1969 the power of Collector to determine the value of imported or exported goods is proposed to be withdrawn which shall be exercised by Director Valuation that has been the case prior to Finance Act, 2021.
Similarly, the appeal against the decision of DG Valuation shall hereinafter be filed before judicial for a instead of Member Customs (Policy) in consonance with the principle of separation of judicial and executive functions. Moreover, in the interest of revenue, corporate guarantee is proposed to be taken out as was the case before September 15, 2021.
Minimal amendments in the Income Tax Ordinance, 2001 are aimed at promoting digital economy, documentation and facilitation measures. Additionally, advance tax on foreign produced drama serials is proposed to be introduced and slightly enhanced on cellular services.
Disclosure of information in respect of high-level public officials is proposed in line with the requirements of the development partners, rule of law and integrity. Furthermore, Special Purpose Vehicle (SPV) under the REIT regulations, 2015 is proposed to be extended.
During the tenure of the present Government far-reaching structural and administrative reforms have been initiated to achieve economic and financial stability through inclusive reforms and sustainable economic growth.
The Federal Board of Revenue (FBR) is committed to achieve tax reforms with the assistance of development partners with the ultimate objective to be able to generate sufficient revenue for the State.
The underlying purpose of reforms is also to rebuild the tax system on ideal principles of taxation and without any distortions. Amendments in tax laws, as outlined below, are warranted in order to achieve efficiency and equity in the tax systems through removal of aberrations, broaden the tax base, and document the economy.
KARACHI: The US dollar recorded an all-time high of Rs177.35 during midday trading at Interbank Foreign Exchange Market on Wednesday.
The Pak Rupee (PKR) ended previous record low at Rs176.79 to the dollar on December 07, 2021.
The rupee is facing deterioration due to large import bill.
According to the official data of the Pakistan Bureau of Statistics (PBS) released a day earlier, showed the import bill of the country surged by 69.17 per cent to $33 billion during first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.