Pkrevenue.com

Author: Faisal Shahnawaz

  • Hafeez Shaikh holds phone discussion with IMF Mission chief

    Hafeez Shaikh holds phone discussion with IMF Mission chief

    ISLAMABAD: Dr Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance, Revenue and Economic Affairs held a phone discussion with Ernesto Ramirez-Rigo, IMF Mission Chief to Pakistan, after talking with Jihad Azour, IMF Director, earlier on Saturday.

    They discussed the progress of negotiations for an IMF-supported program for Pakistan.

    Both sides expressed their commitment for moving the discussions forward.

    It was agreed that an IMF mission will visit Pakistan by the end of April 2019.

  • Rupee sheds 20 paisas in open market

    Rupee sheds 20 paisas in open market

    KARACHI: The Pak Rupee ended down by 20 paisas in open market on Saturday owing to recent changes in the federal cabinet.

    The buying and selling of dollar was recorded at Rs142.00/Rs142.50 from previous day’s closing of Rs142.00/Rs142.50 in cash ready market.

    The local unit lost 50 paisas against the greenback during the last two days.

    Currency dealers said that the rupee was under pressure in the open market owing to uncertainty over the fate of the local currency after the new finance adviser had been installed by the Prime Minister.

    Asad Umar, who resigned from the portfolio of finance minister, said that any new finance incharge had to take difficult decision for betterment of economy.

  • PSX, China investment company hold seminar to facilitate cross border investments

    PSX, China investment company hold seminar to facilitate cross border investments

    KARACHI: VIS Credit Rating Company (VIS) in collaboration with Pakistan Stock Exchange Limited (PSX) and Pak China Investment Company Limited (PCIC) organized an event on Saturday to celebrate collaboration between VIS and China Chengxin International Credit Rating Company Limited (CCXI).

    The theme of the event was to facilitate cross border investments into Pakistan and promote informed investment decision making along CPEC and Belt & Road.

    The event, graced by Dr. Ishrat Hussain – Advisor to the Prime Minister as the chief guest, was attended by leading professionals and business personalities from the financial and industrial sectors of the country.

    CCXI is the largest rating agency in China with over 20,000 ratings outstanding currently and a work force of over 900 analysts based in China.

    During the event, VIS & CCXI launched their jointly developed methodology, ‘Investment Strength, Governance, Environment & Social (ISG-ES) Grading’.

    ISG-ES is a pioneering grading methodology jointly developed by the two credit rating agencies, VIS & CCXI, keeping in mind the information required by foreign investors while making long term investment decisions.

    The product is meant to grade organizations based on long term investment ability criterion with emphasis on overall investment financial strength, corporate governance standards established within the organization as well as a flavor of social responsibility and environmental accountability in processes and systems.

    ISG-ES is especially envisioned to be useful for those organizations seeking long term local/foreign equity investment or those seeking to establish partnerships with companies for business opportunities under CPEC and/or the B&R initiative.

    The product is envisioned to attract international investors and play a major role in the space of informed investment decision making.

    “Pakistan Stock Exchange, being one of the stakeholders in VIS, is proud to have this collaboration between VIS and China Chengxin International Credit Rating Company Limited”, stated Richard Morin, MD, Pakistan Stock Exchange.

    He added that rating agencies have a very important role to play in that they grade companies and organizations for analysts, investors, customers and other stakeholders and this grading serves as a benchmark for these companies’ performance going forward.

    Three prominent players from the financial and industrial sectors of Pakistan, Habib Bank Limited, Jubilee General Insurance Limited and International Industries Limited, who have already conducted ISG-ES assessment shared their experience and discussed benefits of such a pioneering product that provides them opportunities to showcase themselves as potential investment in Pakistan.

  • Sales Tax Act 1990: return filing requirement by registered persons

    Sales Tax Act 1990: return filing requirement by registered persons

    KARACHI: A sales tax registered person is required to file true and correct sales tax return on monthly basis by providing details of supplies and persons whom the supplies were made during the period.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 26 explained the requirement of filing sales tax return by registered persons.

    Section 26: Return

    Sub-Section (1): Every registered person hall furnish not later than the due date a true and correct return in the prescribed form to a designated bank or any other office specified by the Board [FBR], indicating the purchases and the supplies made during a tax period, the tax due and paid and such other information, as may be prescribed;

    Provided that the Board may, by notification in the official Gazette, require any person or class of persons to submit return on quarterly basis:

    Provided further that the Board may, by notification in the official Gazette, require any person or class of persons to submit such return as may be prescribed annually in addition to the monthly return or quarterly return:

    Provided also that the return filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of sub-section (1) and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e-intermediaries who will digitize the data of such returns and transmit the same electronically under their digital signatures.

    Sub-Section (2): omitted

    Sub-Section (3): A registered person may, subject to approval of the Commissioner Inland Revenue having jurisdiction, file a revised return within one hundred and twenty days of the filing of return under sub-section (1) or, as the case may be, sub-section (2), or under clause (a) or clause (b) of section 27, to correct any omission or wrong declaration made therein.

    Sub-Section (4): Notwithstanding the penalties prescribed in section 33, if a registered person wishes to file revised return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded along with default surcharge, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:

    Provided that in case the registered person wishes to deposit the amount of tax as pointed out by the officer of Inland Revenue during the audit, or at any time before issuance of the show cause notice, he may deposit the evaded amount of tax, default surcharge under section (34), and twenty five percent of the penalty payable under section 33 along with the levied return:

    Provided further that in case the registered person wishes to deposit the amount after issuance of show cause notice, he shall deposit the evaded amount of sales tax, default surcharge under section 34, and full amount of leviable penalty under section 33 along with the revised return and thereafter, the show cause notice, shall stands abated.

    Sub-Section (5): The Board may, by notification in the official Gazette, require any person or class of persons, for any goods of such description or class, to furnish such summary or details or particulars pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may be specified.

  • Market Review: technocrats’ inclusion seen positive for policy making

    Market Review: technocrats’ inclusion seen positive for policy making

    KARACHI: The stock market likely to gain momentum following major reshuffle in the federal cabinet and inclusion of technocrats.

    Analysts at Arif Habib Limited expected the market to continue the momentum it gained on Friday and remain in the green next week.

    “Inclusion of technocrats into the federal cabinet may be seen as a positive step for policy making.”

    Valuations across the board have opened up and investors are advised to build positions in value stocks.

    The domestic equity bourse remained under pressure the entire week owing to lack of clarity over the PM’s decision to make changes in the cabinet, which finally ended with major changes including the removal of Asad Umar from the Finance Ministry on Wednesday.

    Failure to get an Amnesty Scheme approved by the cabinet by the Finance Minister also depressed sentiment. Moreover, Commercial Banks remained under pressure mid-week as news of consultation process for creation of a Treasury Single Account (TSA) that would transfer government deposits in Commercial Banks to the SBP, took rounds in the market.

    However on the last trading day of the week the market rebounded strongly, accelerating 481 points during the day. The benchmark index closed at 37,292 points at the end of the week, receding by a mere 45 points WoW.

    Negative sector-wise contributions came from i) Tobacco (59 points), ii) Cement (55 points), and iii) Engineering (26 points). On the flip side, sectors that contributed positively include i) Fertilizers (72 points), ii) Oil & Gas Exploration Companies (26 points), iii) Automobile Assembler (25 points), and iv) Power Generation & Distribution (25 points).

    Scrip-wise major negative contributions came from PMPK (32 points), BAHL (29 points), PAKT (27 points) and BOP (24 points). Positive contributions came from FFC (78 points), UBL (58 points), PPL (37 points) and HUBC (36 points).

    Foreign selling continued this week clocking-in at USD 1.9 million compared to a net sell of USD 2.2 million last week.

    Selling was witnessed in Exploration & Production (USD 5.3 million) and Oil & Gas Marketing Companies (USD 0.4 million).

    On the domestic front, major buying was reported by Companies (USD 4.6 million) and Individuals (USD 2.3 million). Volumes settled at 176 million shares (up by 18 percent WoW) while value traded clocked in at USD 39mn (up by 16 percent WoW).

  • FBR imposes ban on tax officials’ leaves

    FBR imposes ban on tax officials’ leaves

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed ban on its officials for availing any kind of leave, including ex-Pakistan.

    In a circular issued on Friday, the FBR said that it had been observed with concern that the Field Formations of FBR are forwarding requests for grant of leaves, including ex-Pakistan leaves on daily basis despite the fact that the fourth quarter of the current financial year has started and the entire tax machinery is required to accelerate its efforts to achieve the assigned budgetary targets through full determination and devotion.

    In view of the above, the competent authority has desired that requests for grant of ex-Pakistan leaves may not be forwarded to the board by the respective Heads of Field Formations till June 30, 2019.

    All such cases will be processed in the board at the beginning of next financial year.

    Similarly local leaves /leaves of other kind may also not be granted liberally during the fourth quarter of the current financial year and may only be allowed in the light of special circumstances / hardship cases.

  • Stock market welcomes finance minister resignation with 481 points gain

    Stock market welcomes finance minister resignation with 481 points gain

    KARACHI: The stock exchange on Friday welcomed the resignation of Asad Umar from the post of finance minister by gaining 481 points.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,292 points as against 36,811 points showing an increase of 481 points (+1.3 percent DoD).

    Analysts at Arif Habib Limited said that resignation of the finance minister gave the market the required impetus and investors showed their confidence with an increase of 917 points.

    Almost everything from banks to steel saw healthy buying activity, which was further aided by prospects of discovery in offshore Indus, giving way to buying activity in OGDC and PPL.

    BOP reversed the negative tide with the news of SBP issuing clarification regarding implementation of TSA.

    Resultantly, BOP saw considerable activity at upper circuit.

    SNGP, which is due to consider Financials over the weekend, saw the scrip trading at an near upper circuit.

    Likewise, LOTCHEM which was estimated to post lower earnings came with a positive surprise and double the market expectation. LOTCHEM also closed at upper circuit.

    Sectors contributing to the performance include Banks (+188 points), E&P (+61 points), Fertilizer (+46 points), Food (+40 points) Power (+40 points).

    Volumes declined from 216 million shares to 177 million shares (-18 percent DoD). Average traded value on the contrary increased by 28 percent DoD to reach US$ 46.9 million as against US$ 36.6 million.

    Stocks that contributed significantly to the volumes include BOP,KEL, UNITY, PAEL and WTL, which formed XX percent of total volumes.

    Stocks that contributed positively include MCB (+65 points), HBL (+51 points), FFC (+38 points), PPL (+36 points), and NESTLE (+35 points).

    Stocks that contributed negatively include MARI (-8 points), IGIHL (-6 points), MEBL (-6 points), HMB (-5 points) and DAWH (-4 points).

  • Turkish consul general visits CDC

    Turkish consul general visits CDC

    KARACHI: A delegation from the Turkish Consulate General in Karachi, headed by Tolga Uçak, Consul General of Republic of Turkey, and his team visited the Central Depository Company (CDC).

    Representatives of leading Pakistani corporate and Turkish Businesses in Pakistan attended this event.

    Moin M. Fudda, Chairman CDC Board of Directors, and Badiuddin Akber, CEO CDC, welcomed the delegation.

    Moin M. Fudda spoke briefly about the long term friendly relations between Turkey & Pakistan while stressing on the need to foster greater ties on economic, business and other platforms.

    Badiuddin Akber gave a presentation on the achievements of CDC and its key role in the development of Pakistan’s Capital Market.

    He also spoke about the collaboration between MKK Turkey and CDC Pakistan, the securities depositories of both the countries.

    Consul General Tolga Uçak apprised, while giving his presentation at Central Depository Company about the Turkish economic status, in particular macroeconomics, growth rate and investment.

    He further stated that Turkish exports to the world are increasing on yearly basis and made a peak last year.

    He stated that bilateral trade between Turkey and Pakistan is on rise.

    Ucak also briefed the participants about banking and finance sector of Turkey and Turkish official development assistance to the world.

    He further explained overall tourism figures of Turkey as well as bilateral tourism relation between Turkey and Pakistan.

  • FPCCI felicitates newly appointed finance advisor

    FPCCI felicitates newly appointed finance advisor

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has felicitated Dr. Hafeez Shaikh, the newly appointed adviser to Prime Minister, for the slot of finance and revenue.

    FPCCI president Engr. Daroo Khan Achakzai in a statement on Friday extended his heartiest felicitation to Dr. Abdul Hafeez Shaikh on his appointment as Advisor to the Prime Minister on Finance for which he rightly deserved by virtue of his long and versatile experience of serving the country in various fields including Finance Ministership from 2010-2013; Minister for Privatization as well as Provincial Finance Minister of Sindh.

    He added that Dr. Abdul Hafeez Shaikh is a distinguished economist who remained affiliated with the World Bank during his career and possesses a vast experience of dealing with multilateral creditors such as IMF, World Bank, Asian Development Bank etc., and as such is well versed with Pakistan’s financial issues and economy.

    The FPCCI Chief hoped that under his ministership the country would steer out of the multi-faceted instant financial challenges being confronted by it such as balance of payment; fiscal and debt sustainability, better management of public sector entities; reforms of transparency; eliminate the menace of corruption; ease of doing business; arrest of rupee slide; reform tax administration; revive manufacturing sector; enhance access to finance etc.

    The FPCCI President was optimistic that during the tenure of Dr. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance, the coordination between the FPCCI – an apex body of trade & industry – and Ministry of Finance would be further strengthened for the benefit of both the stakeholders viz business community and the government.

    The FPCCI Chief also congratulated other Members of the Prime Minister Cabinet on assuming charge of their new portfolios including Fawad Chaudhry, Minister for Science and Technology ; Firdaus Ashiq Awan, Special assistant to PM on Information & Broadcasting; Ghulam Sarwar Minister for Aviation; Ijaz Shah, Interior Minister; Shehryar Afridi, Minister of States and Frontier Regions; Azam Swati, Minister of Parliamentary Affairs.