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Author: Faisal Shahnawaz

  • CMOs worry over power outages, 100% cash margin on imports

    CMOs worry over power outages, 100% cash margin on imports

    KARACHI: Cellular Mobile Operators (CMOs) are worried over continuous power outages and imposition of 100 per cent cash margin on import of certain phone equipment.

    The CMOs in a letter to Pakistan Telecommunication Authority (PTA) highlighted certain issues that were hampering the quality of service (QoS).

    READ MORE: Ufone increases rates amid rising inflation

    They said that CMOs as some of the leading corporate entities of the country and law abiding licensees of the authority have always strived to comply to all applicable License conditions, rules and regulations including provision of requisite level of quality, network and service availability.

    The CMOs highlighted some critical economy-wide factors which are directly impeding and are expected to further severely constrain the operators’ ability to meet the existing QoS obligations/performance KPIs as well as our Network Rollout Obligations under the new License conditions.

    READ MORE: All tax proposals of IT sector accepted: FBR

    They said the current electricity shortfall, which is increasing with every passing day, is causing unplanned and prolonged load shedding nationwide especially in rural areas. Despite having backup power available in the form of generators/batteries, cellular operators are still finding it almost impossible to cope with the quantum of these power outages that are beyond our dimensioned backup capacity.

    Moreover, the rapidly escalating fuel prices are not only placing extra constraints on provision of generators backup for our BTS sites, round the clock. This extra fuel consumption for back up purposes is also contributing to further demand for fuel rather than supporting the government objective of rationalizing fuel consumption across the board in these testing times. Considering the current situation, maintaining network availability and delivering QoS performance KPIs have become a massive challenge for the CMOs.

    READ MORE: Jazz, Telenor seek reduction in taxation

    In addition, recent increase in Letter of Credit (LC) cash margin on all telecom equipment imports from 10 per cent to 100 per cent by the State Bank of Pakistan (SBP) also applies to backup batteries.

    Hence the imposition of increased LC cash margin has not only severely dented our ability to rollout more sites in order to meet the licensed QoS requirements, it also drastically impedes addition of more backup capacity to counter these extended power outages.

    READ MORE: Ufone launches contact center for housing loans

    In view of the above highlighted critical issues, we have a very serious apprehension that our licensing QoS KPIs and Network Rollout targets will be further affected. We are taking this opportunity to timely inform PTA and trust that the Authority will take into account the circumstances beyond our control while evaluating the license compliance and enforcement matters.

    They further highlighted the most recent fiscal and political developments have further impacted the already deteriorating health of capital-intensive telecom sector in Pakistan; and in the absence of immediate reversal of adverse directive(s) and elimination of electricity load shedding, the telecom operators would unfortunately be constrained to notify Force Majeure situation under special circumstances, outside the control of the major Telecom service providers of Pakistan.

    READ MORE: PITB, Faysal Bank sign MoU to facilitate freelancers

    The CMOs requested to indulge the Authority with the relevant quarters for favorable decisions in order to enable the telecom industry to keep providing essential telecoms service to the masses.

  • Standard Chartered facilitated by BenchMatrix

    Standard Chartered facilitated by BenchMatrix

    KARACHI: BenchMatrix has successfully facilitated Standard Chartered Bank Pakistan (SCBPL) in the installation and implementation of its RiskNucleus GRC, with the goal to digitize the Bank’s compliance risk management processes.

    The implementation of this comprehensive solution will assist Standard Chartered in holistically managing compliance processes and ensure regulatory compliance. The solution is a well-integrated system that allows risk managers to effectively assess and monitor identified risks and controls within the organization. The solution includes modules for management of regulatory change, risk assessment, regulatory correspondence, review observations and overall consolidated risk calculation, while enabling cross modular linkages and comprehensive functionalities.

    Commenting at the occasion Rehan Shaikh, Chief Executive Officer, Standard Chartered Pakistan said, “Our unwavering focus on managing risk and continued investment in building controls in an era of digitization and automation has led us to actualize this deployment. We are hopeful that the implementation of this comprehensive yet simplified solution will help the Bank grow its business sustainably, whilst effectively managing compliance processes and regulatory expectations.

    On the occasion Taimur Kaleem, CEO of BenchMatrix, Pakistan said, “I would like to congratulate both teams on successful completion of the project. RiskNucleus GRC will help to reduce the overall cost of compliance, fulfil regulatory requirements and eradicate operational gaps through automation of the Bank’s robust compliance framework.”

    RiskNucleus GRC solution is a web-based, modular fully configurable and integrated application that streamlines the process of Governance, Risk and Compliance, according to the organization’s needs.

    BenchMatrix is now one of the leading solution provider for Governance, Risk & Compliance solution, serving almost 60+ clients globally with offices in Canada, KSA, UAE, Bahrain, Kuwait & Pakistan. It implements all its products with efficiency to ensure accelerated deployment timelines, owing to a vastly experienced staff in both, banking operations and project implementations globally.

  • SBP issues KIBOR rates – June 28, 2022

    SBP issues KIBOR rates – June 28, 2022

    KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on June 28, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week13.1113.61
    2 – Week13.3113.81
    1 – Month13.5414.04
    3 – Month14.5214.77
    6 – Month15.0615.31
    9 – Month15.1315.63
    1 – Year15.1915.69

    READ MORE: SBP issues KIBOR rates – June 27, 2022

  • Pakistan stocks shed 113 points on tough conditions

    Pakistan stocks shed 113 points on tough conditions

    KARACHI: Pakistan stocks declined by 113 points on Tuesday as tough economic conditions forced the market to trade in range bound trajectory.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 41,766 points from previous day’s closing of 41,879 points, showing a decline of 113 points.

    READ MORE: Pakistan stocks gain 827 points on Chinese funds

    Analysts at Topline Securities Research said Pakistan equities closed on a negative note where benchmark KSE-100 Index settled at 41,765 level (down 0.27 per cent).

    “Tough economic conditions let the market to trade in range bound trajectory where KSE100 Index traded in a range of 535 points as market make an intraday high of 271 points and a low of 264 points,” the analysts added.

    READ MORE: Weekly Review: stocks to respond positively to IMF deal

    LUCK, NESTLE and POL were the major gainers in today’s trading session cumulatively added 71 points, where on the flip side FFC, BAHL and PSO were the major decliner cumulatively dented the Index by 77 points.

    READ MORE: Pakistan stocks crash on super tax imposition

    Around 257 million shares traded today at the bourse while total value clocked in at Rs7.7 billion. KEL was the volume leader of the day with trading of 28 million shares in it, today.

    READ MORE: Pakistan stocks rally on Chinese loan facility

  • Rupee recovers sharply on expected IMF inflows

    Rupee recovers sharply on expected IMF inflows

    KARACHI: The Pakistan Rupee (PKR) made sharp recovery of Rs1.07 against the dollar on Tuesday amid expectation of $2 billion inflows from the International Monetary Fund (IMF).

    The exchange rate ended at Rs206.87 to the dollar from previous day’s closing of Rs207.94 in the interbank foreign exchange market.

    READ MORE: Rupee falls 46 paisas to dollar despite Chinese inflows

    Prime Minister Shehbaz Sharif earlier in the day said that a significant amount was expected from the IMF.

    “Miftah Ismail [the finance minister] sent a message this morning saying that Pakistan will receive not $1 billion but $2 billion from the IMF. I told him in response, Alhamdulillah, but our ultimate goal is self-reliance,” the prime minister said.

    The prime minister announced shortly after Ismail confirmed Pakistan had received the Memorandum of Economic and Financial Policies (MEFP) from the IMF for the seventh and eighth reviews.

    The rupee was remained under pressure due to high import payments and falling foreign exchange reserves. Recently, Pakistan received about $2.3 billion from China.

    The rupee fell to the all-time low at Rs211.93 to the dollar on June 22, 2022.

    READ MORE: Dollar gains 25 paisas to PKR on forex reserves decline

    The official foreign exchange reserves of State Bank of Pakistan (SBP) have decreased around 32-month low at $8.238 billion by week ended June 17, 2022. The official reserves of the central bank fell by $747 million to $8.238 billion by week ended June 17, 2022 as compared with $8.985 billion by week ended June 10, 2022.

    Previously, the foreign exchange reserves of the SBP were seen on November 01, 2019 when those were at $8.358 billion.

    Considering the current official reserves of the State Bank at $8.238 billion, the import cover is only for 1.21 months.

    The central bank attributed the decline in foreign exchange reserves for external debt repayments. However, SBP reserves are expected to increase in coming days on realization of proceeds of China Development Bank (CDB) loan.

    READ MORE: Dollar retreats to Rs207.23 at interbank closing

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.91 billion by week ended June 17, 2022 from touching the peak on August 27, 2021.

    The total foreign exchange reserves of Pakistan have declined to around three-year low at $14.21 billion by week ended June 17, 2022. Previously, the foreign exchange reserves of the country were seen at $14.259 billion by week ended July 5, 2019. The country’s foreign exchange reserves have fallen by $733 million to $14.21 billion by week ended June 17, 2022 as compared with $14.943 billion a week ago i.e. June 10, 2022.

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.018 billion.

    READ MORE: Rupee slips to new low at Rs211.93 against dollar

    The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.

    The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.

    Recently the government announced a complete ban on imports to support balance of payment and help the rupee to stabilize. But all these measures appeared in failure as the exchange rate yet again deteriorated today massively.

  • SBP’s customer forex rates – June 28, 2022

    SBP’s customer forex rates – June 28, 2022

    KARACHI: The State Bank of Pakistan (SBP) has published the foreign exchange rates for customers on June 28, 2022.

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  • FBR nears to achieve revenue collection target for 2021/2022

    FBR nears to achieve revenue collection target for 2021/2022

    KARACHI: Pakistan’s apex tax agency has almost achieved the revenue collection target of Rs6.1 trillion for fiscal year 2021/2022.

    According to FBR sources the revenue collection has crossed the ambitious mark of Rs6 trillion by midday of June 28, 2028. “The FBR needs another Rs100 billion to surpass the revised upward revenue collection target for the outgoing fiscal year,” a senior FBR official said.

    READ MORE: All tax proposals of IT sector accepted: FBR

    The actual revenue collection target for the FBR was Rs5.9 trillion. However, under the IMF program and excellent revenue collection performance throughout the year, the revenue collection target was revised upward to Rs6.1 trillion.

    The sources said that the FBR is likely to surpass the collection target by today (June 28, 2022) evening as only Rs100 billion is left to achieve the target.

    READ MORE: Pakistan’s salaried class unhappy over new tax changes

    The FBR has further two days i.e. June 29 and June 30 to finish the fiscal year 2021/2022.

    According to the Rs6 trillion breakup of revenue collection made available, the FBR collected Rs2.21 billion as income tax; Rs2.77 trillion as sales tax; Rs320 billion as federal excise duty; Rs1.01 trillion as customs duty.

    READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23

    The gross collection of the FBR till Midday of June 28m 2022 comes at Rs6.305 trillion. The revenue body granted an amount of Rs305 billion as refunds that makes the net revenue collection at Rs6 trillion.

    The sources said that the FBR has achieved around 98.3 per cent of the target so far. The comparative numbers with the last fiscal year, the revenue collection targets in income tax, sales tax, federal excise duty and customs duty has been achieved as 98 per cent, 98 per cent, 95 per cent and 102 per cent, respectively.

    READ MORE: Pakistan imposes fixed tax on gold shops

  • Bitcoin to Pak Rupee on June 28, 2022

    Bitcoin to Pak Rupee on June 28, 2022

    KARACHI: The exchange rate of Bitcoin (BTC) in Pak Rupee (PKR) is Rs4,311,503.40 on June 28, 2022 at 11:22 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate Rs4,398,392.36 at closing on June 27, 2022.

    The rate of Bitcoin in US Dollar (USD) is $20,766.55 on June 28, 2022 at 11:23 AM Pakistan Standard Time (PST) in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate $21,235.89 at closing on June 27, 2022.

    Disclaimer: All data and information is provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.

    READ MORE: Bitcoin to Pak Rupee on June 27, 2022

  • Ripple to Pak Rupee on June 28, 2022

    Ripple to Pak Rupee on June 28, 2022

    KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs71.91 on June 28, 2022 at 11:15 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate Rs75.28 at closing on June 27, 2022.

    The rate of Ripple in US Dollar (USD) is $0.35 on June 28, 2022 at 11:15 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate of $0.36 at closing on June 27, 2022.

    Disclaimer: All data and information are provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.

    READ MORE: Ripple to Pak Rupee on June 27, 2022