Pkrevenue.com

Author: Faisal Shahnawaz

  • Shabbar Zaidi appointment as FBR chairman without advertisement may tantamount to contempt of court

    Shabbar Zaidi appointment as FBR chairman without advertisement may tantamount to contempt of court

    ISLAMABAD: The selection committee has observed that appointment of Shabbar Zaidi without advertising the post as chairman of the Federal Board of Revenue (FBR) and Secretary Revenue Division may tantamount to contempt of court.

    The selection committee for the selection of the senior officers held its meeting on May 06, 2019 for and considered the FBR Chairman is appointed by Federal Government in terms of Section 3 (3) of FBR Act, 2007.

    The Federal Government has been defined as the ‘Federal Cabinet’ in Article 90 of the Constitution of Islamic Republic of Pakistan, 1973 (Annex-II) and Honorable Supreme Court of Pakistan’s judgment dated 18-08-2016 passed in Civil Appeals No.1428/2016 and 1436/2016.

    The selection committee observed the name of Dr. Ahmad Mujtaba Memon (PCS/BS-21) was discussed for his appointment as Chairman, FBR / Secretary, Revenue Division.

    “After detailed discussions, the Committee was of the view that Dr. Ahmad Mujtaba Memon (PCS/BS-21) is too junior to be posted / appointed as Chairman, Federal Board of Revenue / Secretary, Revenue Division.”

    Whereafter, the Adviser on Finance, Revenue & Economic Affairs recommended Syed Muhammad Shabbar Zaidi, Chartered Accountant, for appointment as Chairman, FBR / Secretary, Revenue Division.

    The Committee observed that Islamabad High Court, Islamabad, vide judgment dated 05-06-2013 passed in Writ Petition No.812/ 2013 (Annex-IV) while setting aside notification of appointment of Ali Arshad Hakeem as Chairman, FBR, inter alia, directed Establishment Division, for appointing regular Chairman, FBR, through competitive process after advertising the post.

    “However, Ali Arshad Hakeem as Chairman, FBR, enjoyed all financial benefits of the post. It was discussed that possibility of appointment of Syed Muhammad Shabbar Zaidi may be explored on pro bono / honorary basis.”

    “The committee of the view that the advice from law and justice division may be solicited in this regard since Syed Muhammad Shabbar Zaidi is from private sector,” according to the report of selection committee.

    It further said that since pro bono appointment are being made by the government without advertisement, such as appointment of chairman, prime minister’s inspection commission (PMIC), Chairman NAVTTC, option of pro bono appointment of Chairman FBR/Secretary, Revenue Division, without advertisement is worth exploring.

    “Since express directors of the court are in field regarding appointment of chairman FBR through competitive process appointing Syed Muhammad Shabbar Zaidi without advertising the post as FBR chairman / Secretary Revenue Division may tantamount to contempt of court.”

    Keeping this aspect in view, the division sought advice from law and justice division on the following propositions:

    Whether or not FBR chairman can be appointed from private sector in terms of Section 3(3) of the FBR Act, 2007.

    Whether or not the post of FBR chairman is required to be advertised if the appointment is to be made on honorary / pro bono basis.

    Further the selection committee went through the CV of Shabbar Zaidi and observed that he had made representation before the FBR on behalf of the clients for various clarifications and reconciliations. “The existing of conflict of interest in his appointment as FBR chairman/ Secretary Revenue Division also needs to be taken into consideration,” it added.

  • SBP sells T-Bills worth Rs560bn at 11.249pc cut-off yield

    SBP sells T-Bills worth Rs560bn at 11.249pc cut-off yield

    KARACHI: State Bank of Pakistan (SBP) has sold treasury bills amounting Rs560 billion at cut-off yield at 11.2491 percent, much above the key policy rate of 10.75 percent.

    The SBP on Wednesday offered bids to auction Market Treasury Bills (MTB) of three-, six- and 12-month maturities.

    The SBP received bids of Rs560 billion at face value of Rs574.186 billion in three-month MTBs. However, the SBP did not receive bids in other papers.

    The central bank accepted all the bids in three-month maturities at cut-off yield of 11.2491 percent.

    The high cut-off yield indicates further rise in key policy rate to be announced this month.

    In its monetary policy announcement on March 29, 2019 the SBP increased key policy rate by 50 basis points to 10.75 percent.

    Banking experts said that the financial institutions were only interested in short term maturities as those were anticipating further hike in policy rate in upcoming monetary policy announcement.

    The SBP has set a target of Rs1,200 billion for this auction in order to help the government in meeting budgetary financing.

    However, the central bank could only raise Rs560 billion.

    SBP sells treasury bills worth Rs415.72 billion at above 11pc cut-off yield

  • PTCL offers 40 percent discount on all new connections

    PTCL offers 40 percent discount on all new connections

    ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) has offered 40 percent discount on installation charges on all new connections for a limited time period only, a statement said on Wednesday.

    All new connections include PTCL unlimited internet, digital quality TV & reliable telephone services that allow subscribers to get best experience.

    Customers can now enjoy high speed unlimited internet up to 20Mbps on copper and up to 100Mbps on fiber at affordable prices on different packages and services across Pakistan.

    Talking about the offer, Yasir Manzoor, General Manager Content and Multimedia, PTCL, said: “PTCL continues to offer best-in-class services to its valued customers.

    “We are constantly working to improve our products and services in line with the customers’ expectations.”

    Being a national company, the general manager said that every citizen should be able to experience a digital life style.

    “Therefore, PTCL is introducing such offers to cater to the ever increasing demand for unlimited data and high speed internet at affordable rates.”

    PTCL endeavors to serve customers across Pakistan with a wide and diverse range of products and services.

  • Meezan Bank signs payment services pact with PSL

    Meezan Bank signs payment services pact with PSL

    KARACHI: Meezan Bank, leading Islamic bank in Pakistan, has recently joined hands with Port Services Limited (PSL), Sialkot as their exclusive partner for payments & cash management services, a statement said on Wednesday.

    The agreement was signed by Abdullah Ahmed – Group Head Corporate & Institutional Banking, Meezan Bank and Navid Iqbal Sheikh – Director, Port Services Limited (Chairman SDPT) along with key members of their teams.

    Under this agreement, the Bank will provide Payments & Cash Management services to Port Services Limited through its state-of-the-art web based electronic solution ‘eBiz+’.

    With the largest Islamic banking network of 660 online branches in the country, the Bank’s Cash Management suite will help increase efficiency, optimize cash flow position and manage operational complexities to streamline the company’s receivables and payables.

    Abdullah Ahmed while speaking at the occasion, said: “This agreement between Port Services Limited, Sialkot and Meezan Bank is a testimony of the Bank’s expertise in the field of payment and cash management services.

    “We are confident that Port Services Limited will benefit from the efficiency and controls provided by the Bank’s digitalized Payments & Cash Management solutions – e-Biz+ that is based on latest technology.”

  • Careem signs agreement to provide logistic solution to Unilever

    Careem signs agreement to provide logistic solution to Unilever

    KARACHI: Careem – the app based logistic service – has signed an agreement to provide solution to Unilever for its logistic business.

    A statement on Wednesday said that Careem and Unilever Pakistan have entered into a strategic partnership whereby Careem has agreed to provide an app based solution to Unilever for its logistics business.

    The digital solution provided by Careem will improve service levels and cost for Unilever by implementing new business models through innovative technologies.

    Key target areas the solution will focus on include the delivery of left over stock that can be transported through Careem, delivery of stock to remote locations, as well as urgent deliveries.

  • FBR sets up committee to address complaints in contract bidding

    FBR sets up committee to address complaints in contract bidding

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday constituted a grievances redressal committee to resolve the complaints of bidders pertaining to contracts of the revenue body.

    In an office order issued by the FBR stated that in accordance with rule 48(1) of the Public Procurement Rules, 2004, it had constituted the grievances redressal committee comprising the following officers of the FBR with immediate effect:

    01. Ali Raza, PD(ITTMS)/Procurement specialist: chairman

    02. Ardsher Saleem Tariq Chief Broadening of Tax Base: Member

    03. Amir Javed, Secretary (Management-IR): Member

    04. Tariq Mehmood, Second Secretary (Admin): Member

    05. Shiraz Ali, Second Secretary (SSM): Member.

    The committee will have full powers to address the complaints of bidders pertaining to procurement / contracts in FBR (Headquarter) before entry into force of the procurement contracts in question.

  • FBR field offices show resentment on appointment of chairman from private sector

    FBR field offices show resentment on appointment of chairman from private sector

    KARACHI: A massive resentment has been shown by the employees of Federal Board of Revenue (FBR) on nomination of a chartered accountant for top post of the revenue body.

    The working at the FBR is at standstill following the nomination of Shabbar Zaidi as FBR chairman by the Prime Minister two days back.

    The officers of the FBR are arguing that till today Shabbar Zaidi was helping his clients to avoid taxes if not evade taxes through aggressive tax planning.

    “If he is appointed as chairman of the FBR then he will lead tax teams in the field to conduct audit of taxpayers including his clients to detect mis-declarations / under-declarations, tax avoidance and tax evasion,” a FBR official said.

    There is no legal bar except that his appointment may be against the doctrine of conflict of interest, the official said.

    There is no moral justication for employees of FBR to raise objection on his appointment as Section 3(3) of FBR Act, 2007 empowers the federal government to appoint any person as Chairman FBR on such terms and conditions as it may determine.

    The official said that the only point on the basis of which Shabbar Zaidi’s appointment can be challenged by FBR employees is that the appointment may be in violation of doctrine of conflict of interest, which can only be decided by a court of law.

    Shabbar Zaidi has been the Managing Partner of Fergusson in Pakistan and hundreds of companies audit have been conducted and completed under his supervision, advice, guidance and signature.

    Those audited books of accounts up to previous five years would now be presented before his subordinate officers in the FBR and in the field formations.

    What would happen if an issue of his client is brought before him under section 7 of FBR Act 2007 for settlement where in he himself or even his former Chartered accountant firm has completed audit, the official questioned.

    Conflict of interest would still be there even if he assigns the case to any member of FBR for decision because he would be head of the office.

    Other serious issue in his case would be that he can not be Secretary Revenue Division so the government has to have separate Secretary Revenue Division from the bureaucratic hierarchy most probably from PAS.

    So working conditions may not be good for Shabbar due to probable resistance though he is highly competent and an extraordinary individual of strategic thinking and also very fair, honest and judicious.

    The other technical hitch is that if Chairman FBR has to be brought from private sector then it has to be through open competition by giving advertisement in the press as ruled by the Superior Courts.

    Another officer said that the appointment of FBR officials was made through Federal Public Service Commission (FPSC) in a transparent manner.

    “An officer spends his entire life with hope that in reward to his judicious work he would become chairman,” the officer said, adding that the precedent set by the government would demoralize the FBR officials.

  • PSX issues list of 25 top performing companies

    PSX issues list of 25 top performing companies

    KARACHI: Pakistan Stock Exchange (PSX) on Wednesday issued the list of 25 top performing companies for the year 2017.

    Every year, the Exchange acknowledges the performance of the top companies shortlisted on the basis of comprehensive criteria, which includes (i) Capital Efficiency, (ii) Profitability, (iii) Free-Float of Shares, (iv) Transparency, (v) Corporate Governance & Investors Relation and (vi) Compliance with Listing of Companies & Securities Regulations.

    The awards given by the Exchange to the top companies recognises their excellent financial and managerial performance, thereby providing them inter-alia a powerful marketing tool.

    Pakistan Stock Exchange is pleased to announce the names of the top 25 companies for the year 2017 that have been selected on the basis of the highest score obtained as per the Criteria for Selection of Top Companies mentioned earlier:

    Name of Company
    1. Fauji Fertilizer Company Limited.
    2. Unilever Pakistan Foods Limited.
    3. Lucky Cement Limited.
    4. Nestle Pakistan Limited.
    5. Golden Arrow Selected Stocks Fund Limited.
    6. Arif Habib Limited.
    7. Archroma Pakistan Limited.
    8. International Industries Limited.
    9. International Steels Limited.
    10. Engro Fertilizers Limited.
    11. Sui Northern Gas Pipelines Limited.
    12. Habib Bank Limited.
    13. Colgate – Palmolive (Pakistan) Limited.
    14. Atlas Honda Limited.
    15. Kohinoor Energy Limited.
    16. Mari Petroleum Company Limited.
    17. The Hub Power Company Limited.
    18. Millat Tractors Limited.
    19. Shifa International Hospitals Limited.
    20. Al-Ghazi Tractors Limited.
    21. United Bank Limited.
    22. Meezan Bank Limited.
    23. Atlas Battery Limited.
    24. Murree Brewery Company Limited.
    25. Bank AL Habib Limited.

  • Rupee makes significant gains against dollar

    Rupee makes significant gains against dollar

    KARACHI: The rupee made significant gain of 17 paisas against dollar on Wednesday after sufficient inflows of remittances and export receipts.

    The rupee ended 141.12 to the dollar from Monday’s closing of Rs141.29 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs141.28 and Rs141.35.

    The market recorded day high of Rs141.30 and low of Rs141.10 and closed at Rs141.12.

    Currency expert said that the sufficient inflows in shape of remittances and export receipts helped the rupee to gain value.

    The exchange rate in the open market was remained unchanged.

    The buying and selling of dollar was recorded at Rs141.20/141.70 same previous day’s level in cash ready market.

  • Equity market plunges by 596 points on expected tough budgetary measures

    Equity market plunges by 596 points on expected tough budgetary measures

    KARACHI: The equity market plunged by 596 points on Wednesday owing to concerns over interest rate rise and tough measures in the budget.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,035 points as against 35,631 points showing a decline of 596 points.

    Analysts at Arif Habib Limited said that KSE-100 index had a major draw down of 781 points that was caused by across the board selling.

    Market started on a positive note with 35 points but the selling pressure that was witnessed in the past couple of sessions started reflecting soon.

    Power, E&P, Cement, Steel, Banks and Chemical sectors contributed mainly to the volumes and also to decline. KEL declined significantly in the early session but started recovering by day end.

    Overall, KEL registered a volume of 16.7M shares followed by SNGP (5.7M) and MLCF (5.2M). Investors seem to have concerned about the repercussions of IMF conditionalities, as well as a host of issues from rising interest rates to an impending tough budget.

    Sectors contributing to the performance include Fertilizer (-133 points), E&P (-105 points), Banks (-55 points), O&GMCs (-51 points), Power (-41 points).

    Volumes increased significantly from 65.4mn shares to 113.2mn shares (+73 percent DoD). Average traded value also increased by 67 percent to reach US$ 32.3mn as against US$ 19.4mn.

    Stocks that contributed significantly to the volumes include KEL, SNGP, MMLCF, PIBTL and WTL, which formed 32 percent of total volumes.

    Stocks that contributed positively include COLG (+13 points), UBL (+10 points), BAFL (+3 points) SHEL (+3 points) and ARPL (+2 points). Stocks that contributed negatively include MCB (-51 points), ENGRO (-36 points), FFC (-34 points), PPL (-32 points) and MARI (-28 points).