The State Bank of Pakistan (SBP) released the Karachi Interbank Offered Rates (KIBOR) for various tenors on Monday, August 2, 2021, providing updated benchmarks for interbank lending and borrowing activities in the financial sector.
(more…)Author: Faisal Shahnawaz
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New export facilitation scheme implements from August 14
ISLAMABAD: Federal Board of Revenue (FBR) on Monday said the new export facilitation scheme will be applicable from August 14, 2021.
The FBR has notified Rules for new Export Facilitation Scheme 2021 which will be effective from 14th August, 2021, a statement said.
New Export Facilitation Scheme has been approved by the Federal Government and passed by Parliament under Finance Act 2021.
This Scheme will run parallel with existing schemes like Manufacturing Bond, DTRE and Export Oriented Schemes for two year.
The existing old schemes shall be phased out in next two years and will be fully replaced by Export Facilitation Scheme-2021. EFS 2021 Rules can be accessed at the official website of FBR.
Users of this Scheme will include Exporters (Manufacturers cum Exporters, Commercial Exporters, Indirect Exporters), Common Export Houses, Vendors and International Toll Manufacturers.
Users of this Scheme shall be subject to authorization of inputs by the Collector of Customs and Director General Input Output Organization (IOCO).
Inputs include all goods (imported or procured local) for manufacture of goods to be exported. These include raw materials, spare parts, components, equipment, plant and machinery.
No duty and taxes shall be levied on inputs imported by the authorized users and local supplies of inputs to the authorized users shall be zero rated.
Through this new Scheme Common Export House will import inputs duty and tax free for subsequent sale to the authorized users especially SMEs. This Scheme has also allowed International Toll manufacturing within Pakistan.
Under the said scheme, minimum but necessary documentation and securities based on category and profile of the applicant, user or exporter will be required. This scheme will encourage new entrants and SMEs.
This Scheme will be completely automated under WeBOC and PSW where users of the Scheme and regulators (IOCO, Regulator Collector, PCA etc.) shall be integrated through WeBOC and PSW and communicate through these systems.
The focus of the Scheme is on post clearance compliance checks and audits. Under this new Scheme, authorization and utilization period has been enhanced from two years to five years
It is expected that Export Facilitation Scheme 2021 shall reduce cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating Sales Tax refunds and Duty Drawback for the users of Scheme and shall attract more users and shall ultimately promote exports.
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AHL declares Rs2.08 billion annual profit
KARACHI: Arif Habib Limited (AHL) on Monday announced Rs2.08 billion as profit for the year ended June 30, 2021.
The board of directors of the AHL approved the financial results for the year ended June 30, 2021.
The company also declared a final cash dividend of Rs 10 per share i.e. 100 per cent, and bonus 10 per cent (i.e. 10 shares for every 100 shares held) for the year 2021.
The company recorded the highest ever revenues in the history of brokerage, investment banking and money markets division; all combined have taken up AHL’s core income by Rs1,398 million.
The brokerage division witnessed an increase of 132 per cent in revenue against the same period in the previous year.
Investment Banking’s income increased massively by 633 per cent from Rs155 million to Rs672 million. This increase is attributable to successful completion of equity and debt IPOs.
The Company’s investment portfolio has yielded healthy realized and unrealized revenue of Rs1,681 million against Rs228 million in the corresponding period.
Commenting on the results, Shahid Ali Habib, CEO, AHL said: ‘’AHL’s growth momentum is outstanding and in line with our expectations. The phenomenal increase in revenue has been due to stellar performance across all business divisions and high volumes in the market. We foresee similar brokerage and investment banking performance in coming year as the economy grows and focus on capital market development intensifies.”
AHL, which led 8 of the 10 IPOs this year, has embarked upon expanding its footprint by establishing presence in other cities and increasing its client base both within Pakistan and abroad, which is expected to reap dividends by its shareholders in the future.
AHL is pioneering the efforts of opening Roshan Digital Accounts (RDA) for Overseas Pakistanis that is bound to help Pakistan increase foreign investment flows and has maintained an average of 35 per cent of market share since RDA’s introduction in September.
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Determination of tax on long term contracts
Section 36 of Income Tax Ordinance, 2001 has explained that a person’s income on accrual basis shall compute such income arising for a tax year under a long-term contract on the basis of the percentage of completion method.
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SBP issues customers exchange rates for August 02
KARACHI: The State Bank of Pakistan (SBP) on Monday issued customers’ exchange rates. The exchange rate is on the basis of weighted average rates of commercial banks.
The SBP said the data compiled and disseminated for information only.
These exchange rates are estimates that quoted by various commercial banks to their clients.
The banks provide their indicative exchange rates for commercial transactions with customers.
CURRENCY BUYING SELLING AED 44.3802 44.4745 AUD 119.6517 119.9087 CAD 130.6071 130.8772 CHF 179.8624 180.2451 CNY 25.2340 25.2843 EUR 193.4138 193.8341 GBP 226.5118 226.9954 JPY 1.4851 1.4884 SAR 43.4361 43.5278 USD 162.8677 163.2310 -
Sindh designates COVID vaccination centers in Karachi
KARACHI: The Sindh Government on Sunday designated centers for COVID vaccination in Karachi in order to facilitate general public.
Following are the hospitals for corona vaccinations:
01. District Karachi East: DOW OJHA CAMPUS
02. District Karachi South: I. Khaliq Dino Hall; II. JPMC; III. Lyari General Hospital
03. District Karachi Central: I. Children Hospital; II. Sindh Government (SG) Hospital New Karachi; III. SG Hospital Liaquatabad
04. District Karachi West: Sindh Government Qatar Hospital
05. District Karachi Malir: SG Hospital Murad Memon Goth
06. District Karachi Korangi: SG Hospital Korangi-05; SG Hospital, Saudabad, Karachi.
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Container carrying 39MT sugar sinks at Karachi Port
KARACHI: A container carrying around 39 metric tons (MT) of refined sugar fell into the sea from a ship berthed at the Karachi Port on Saturday evening.
The container fell into the sea while handling by a trawler at berth No. 5 West Wharf of Karachi Port, sources said.
It is believed that the container, which fell into the sea, had carried around 39 metric tons of sugar about 780 bags of 50 kilograms. The sugar was imported by the Trading Corporation of Pakistan (TCP) to provide the commodity at affordable prices in the country .
The sources said that the breaks of the trawler suddenly failed and lost control. However, driver of the trawler was safe in the incident.
The monetary loss due to the incident was not ascertained at the time of filing this report but sources said that a ship MV Unity brought 33,000 metric tons of sugar from Dubai on July 27, 2021.
It was second incident within the jurisdiction of Karachi Port in ten days.
During Eid holidays a cargo ship was stuck up at sea view Karachi. This ship has not been rescued so far.
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FBR collects Rs410 billion; highest ever in July
ISLAMABAD: Federal Board of Revenue (FBR) has posted a robust growth of 48 per cent in the first month of the fiscal year 2021/2022. The collection in July 2021 is the highest collection in the same month of any past year.
The tax collection target for the fiscal year has been set at Rs5,829 billion.
The FBR has provisionally collected Rs410 billion in July 2021 as compared with Rs277.3 billion in the same month of the last year.
The FBR also surpassed the revenue collection target of Rs342 billion set for the month of July 2021.
Prime Minister Imran Khan commended the performance of the FBR in a tweet message. “I commend the efforts of FBR in achieving record revenue collection in July. As of now collection is Rs410 billion which is highest ever in the month of July and around 22 per cent above required target for the month,” the prime minister said.
The prime minister said the revenue collection performance is a reflection of the government’s policies for sustained economic growth and revival.
The provisional collection showed all the heads have recorded significant growth. The FBR collected Rs190 billion as sales tax, Rs135 billion as income tax, Rs22 billion as federal excise and Rs63 billion as customs duty during July 2021.
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Weekly Review: lockdown may impact trading sentiments
KARACHI: The lockdown imposed by Sindh government may impact positive sentiments in the stock market. Analysts at Arif Habib Limited said that Karachi is set to observe a more stringent lockdown in place next week to contain the highly contagious delta variant of the novel coronavirus.
It appears the market may remain upwards sticky in the short term.
Albeit, with the result season commencing, and cyclicals expected to post a robust jump in earnings on a YoY basis (given a nation-wise lockdown was enforced in 2Q last year), certain select stocks may come under limelight.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.7x (2021) compared to Asia Pac regional average of 15.8x and offering a DY of 6.7 per cent versus 2.4 per cent offered by the region.
The KSE-100 index remained under pressure for most part of the week, closing in red on 4 out of 5 sessions.
Key sentiment dampener was the sharp incline in domestic COVID ratio with businesses asked to operate at 50 per cent workforce.
Albeit, with no relief on the infection front, the Sindh government announced a complete lockdown in Karachi for the following week, causing the equity bourse to book further losses today.
Although investors heaved a sigh of relief during mid-week with the Central Bank holding its benchmark policy rate at 7 per cent, which translated to buying in cement and steel scrips.
That said, the market ended at 47,055.29 points (down by 1.54 per cent / -738 points WoW).
Contribution to the downside was led by i) Cements (212 points), ii) Commercial Banks (178 points), iii) Oil and Gas Exploration Companies (58 points), iv) Pharmaceuticals (53 points), and v) Oil and Gas Marketing Companies (51 points). Scrip-wise major losers were LUCK (118 points), TRG (62 points), MCB (60 points), PSO (45 points), and HBL (44 points). Whereas, scrip-wise major gainers were SYS (67 points), FCEPL (43 points), HUBC (38 points), ANL (34 points) and MTL (21 points).
Foreigners offloaded stocks worth of USD 5.4 million compared to a net sell of USD 21.02 million last week. Major selling was witnessed in Commercial Banks (USD 2.94 million) and All other Sectors (USD 2.56 million). On the local front, buying was reported by Banks (USD 6.30 million) followed by Mutual Funds (USD 2.43 million).
That said, average daily volumes and traded value for the outgoing week were up by 28 per cent and 14 per cent to 405 million shares and USD 81 million, respectively.
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KIBOR rates for July 30, 2021
KARACHI: State Bank of Pakistan (SBP) on Friday issued following Karachi Interbank Offered Rates (KIBOR) on July 30, 2021.
Tenor BID OFFER 1 – Week 6.91 7.41 2 – Week 6.96 7.46 1 – Month 7.01 7.51 3 – Month 7.13 7.38 6 – Month 7.34 7.59 9 – Month 7.44 7.94 1 – Year 7.53 8.03