KARACHI: The State Bank of Pakistan (SBP) published the foreign exchange rates for customers on June 08, 2022, based on the weighted average rates of commercial banks.
(more…)Author: Faisal Shahnawaz
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Move to legalize cryptocurrency trading in Pakistan
KARACHI: Pakistan apex trade body has moved a proposals to authorities to legalize cryptocurrencies in the country.
In this regard, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has recommended changes in tax laws to bring cryptocurrencies under tax net
The FPCCI recommended capital gain tax (CGT) at 15 per on income derived from disposal of cryptocurrencies.
READ MORE: FPCCI suggests amnesty for cryptocurrency declaration
It further suggested that Pakistan must develop a regulatory framework and national cryptcurrency strategy.
“Cryptocurrencies should be defined among securities under Section 37A of Income Tax Ordinance, 2001 under which assets are charged at the rate of 15 per cent.” The Section 37A of the Ordinance deals with the collection of capital gain tax on disposal of securities.
The apex trade body also recommended imposition of withholding tax at the rate of one per cent, which should be adjustable, on transactions of cryptocurrencies.
READ MORE: FPCCI protests over advisory council formation
The FPCCI suggested a one-time asset declaration scheme must be launched. The scheme should include encashment of cryptocurrencies in Pakistan and converting the foreign exchange into the Pak Rupee may be allowed with no tax.
Further, it may be made mandatory the encashment of cryptocurrencies in Pakistan and held as deposit in foreign exchange accounts in Pakistan should be allowed with a rate of tax at five per cent.
The FPCCI further suggested related to the scheme that the encashment of cryptocurrencies in Pakistan and held as deposits in Roshan Digital Accounts should be allowed with 10 per cent tax for non-resident Pakistani nationals / dual nationals. “Holding of cryptocurrencies as an asset may be allowed to be declared on payment of 15 per cent tax,” it recommended.
READ MORE: FPCCI demands reducing income tax slabs to five
Giving the proposal to bring virtual currency under the tax net, the FPCCI said investment in cryptocurrencies started with speculative gaming but in recent years it had grown into humongous size. These assets which reside in digital clouds, need to be landed safely into the economic mainstream.
“The total trading value of Pakistani investors touched $20 billion in 2020-21 and the country ranked third in the Global Crypto Adoption Index,” the FPCCI said.
The apex trade body pointed out that recently the finance minister of India in her budget speech 2022 proposed to tax crypto-assets by 30 per cent on profits that occurred through transactions and 1 per cent TDS on every transaction of cryptocurrencies.
READ MORE: Cryptocurrency, best performing assets in Pakistan
Giving rationale to the proposal, the FPCCI said that virtual assets in countries like India, Thailand, Malaysia, UAE and many other countries are covered under tax laws which allow them to generate an additional revenue stream. “Coverage of these assets under the income tax regime in Pakistan will also help mobilize additional tax revenues,” it added.
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Bitcoin to Pak Rupee on June 08, 2022
KARACHI: The exchange rate of Bitcoin (BTC) in Pak Rupee (PKR) is Rs6,092,013.24 on June 08, 2022 at 10:43 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate Rs5,940,736.66 at closing on June 07, 2022.
The rate of Bitcoin in US Dollar (USD) is $30,264.75 on June 08, 2022 at 10:43 AM Pakistan Standard Time (PST) in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate $29,525.94 at closing on June 07, 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.
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Ripple to Pak Rupee on June 08, 2022
KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs80.45 on June 08, 2022 at 10:38 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate Rs78.48 at closing on June 07, 2022.
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Dogecoin to Pak Rupee on June 08, 2022
KARACHI: The exchange rate of Dogecoin (DOGE) in Pak Rupee (PKR) is Rs16.03 on June 08, 2022 at 10:25 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate Rs15.92 at closing on June 07, 2022.
The rate of Dogecoin in US Dollar (USD) is $0.08 on June 08, 2022 at 10:25 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate $0.08 at closing on June 07, 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.
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FBR announces panel of advocates for Karachi tax cases
KARACHI: The Federal Board of Revenue (FBR) has announced a panel of advocates, who will contest cases in various courts and tribunals on behalf of the tax authorities based in Karachi.
Following advocates have been placed on the panel of the FBR, relating to court matters of Inland Revenue Service (IRS) for a period of three years:
READ MORE: FBR sacks Customs appraising officer for misconduct
01. Barrister Dr. Huma Sodher
02. Abdul Latif Mirbahar
03. Syed Ahasan Ali Shah
04. Barrister Faheem Ali Memon
05. Muhammad Azam Khan
06. Ameer Nausherwan Adil
READ MORE: Sindh integrates 56 restaurants for online tax monitoring
07. Syeda Abdia Bukhari
08. Muhammad Ali Shahwani
09. Muhammad Ajmal Solangi
10. Abdul Ghaffar
11. Syed Mustafa Mehdi
12. Barrister Imran Ahmed Metlo
13. Sajjad Ahmed Chandio
READ MORE: Salary tax rates in Pakistan for Tax Year 2022
14. Rafeo Fazal
15. Jazib Ali Shaikh
16. Fareed Ahmed Dayo
17. Mohsin Ali
18. Muhammad Fahad
19. Khalid Hidayat Khan
20. Mutahir Khalid Khan
21. Asad Aftab Solangi
22. Sajjad Ali Solangi
23. Zubair Zia Siddiqui
24. Waheedullah Khokhar
25. Saleem Ul Haq
26. Barkat Ali Metlo
27. Afsheen Aman
28. Syed Shohrat Hussain Rizvi
READ MORE: Re-importation of goods manufactured in Pakistan
29. Khalil Ullah Jakhro
30. Barrister Waqar Ali Baloch
31. Shahid Hussain
32. Ms. Tania Malik
33. Barrister Ghazi Khan Khalil
34. Barrister Zain Mustafa Soomro
35. Muhammad Younus
36. Ali Tahir Soomro
37. Muhammad Saad Siddiqui
38. Zulfiqar Ali Domki
The FBR said advocates may be assigned court cases for pleading before various Courts / Tribunals at Karachi Station, on the basis of merit, keeping in view their experience and facts of the each case.
Matter relating to professional fee/ special professional fee, appointment, performance evaluation, de-notification, conduct of the Panel Advocates and other related matters will be governed by the SOPs/ policy guidelines circulated vide FBR’s letter No. 176432 dated 12.10.2020, No. 129965-R dated 24.10.2017 and No. 9(2)PA/2020-21(Pt) dated 26.01.2021 and any other notification issued or to be issued from time to time.
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Pakistan stocks end flat as investors eyeing budget
KARACHI: Pakistan stocks ended flat on Tuesday as investors are waiting for federal budget announcement, which is scheduled on June 10, 2022.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended 41,568 points from previous day’s closing of 41,577 points, showing decline of nine points.
READ MORE: Pakistan stocks gain 262 points in mixed trading
Analysts at Topline Securities said that Pakistan equities witnessed a mix trend today as all eyes are now on the upcoming budget.
Investors opted to stay sidelines which compelled benchmark index to slide. During the day, the KSE 100 index made an intraday low at 41,524 (-53 points; down 0.12 per cent) and an intraday high at 41,854 (+277 points; up 0.66 per cent) before eventually settled at 41,568 (-9 points; down 0.02 per cent) for the day.
READ MORE: Weekly Review: stocks to move with budget reports
Banks, Tech, Food and Power sector’s stocks contributed negatively today to the benchmark index where HBL, TRG, UNITY & HUBC lost 57 points, cumulatively. On the flip side, NML, SNGP & MARI have seen some buying interest as they added 44 points collectively today.
Around 157 million shares traded today at the bourse while total value clocked in at Rs4.2 billion. TPLP was the volume leader of the day with trading of 17 million shares in it, today.
READ MORE: Pakistan stocks plunge by 923 points on fiscal weakness
Analysts at Arif Habib Limited said that a range-bound session was observed at PSX today given further devaluation of PKR against USD tagged with concerns of new taxes in the upcoming budget, keeping the investors at bay. The volumes remained dry in the main board although 3rd tier stocks continued positive momentum.
Sectors contributing to the performance include Banks (-21.0 points), Technology (20.5 points), Power (-13.1 points), Vanaspati & Allied (-11.9 points) and Investment Banks (-8.7 points).
READ MORE: Stocks shed 518 points on monetary tightening concerns
Volumes decreased from 189.2 million shares to 157.4 million shares (-16.8 per cent DoD). Average traded value also decreased by 13.8 per cent to reach US$ 20.8 million as against US$ 24.2 million.
Stocks that contributed significantly to the volume are TPLP, UNITY, PRL, OBOYR1 and SNGP.
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SBP issues KIBOR rates – June 07, 2022
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on June 07, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 13.71 14.21 2 – Week 13.76 14.26 1 – Month 13.89 14.39 3 – Month 14.75 15.00 6 – Month 15.13 15.38 9 – Month 15.19 15.69 1 – Year 15.26 15.76 -
Sindh integrates 56 restaurants for online tax monitoring
KARACHI: Sindh Revenue Board (SRB) on Tuesday said it integrated around 56 restaurants through installation of Point of Sales (POS) for online monitoring of sales tax on services.
The SRB issued a statement regarding distribution of certificate of appreciation to SRB POS integrated persons by its chairman.
READ MORE: SRB collects Rs132 billion as services tax in 11 months
It said SRB Chairman Dr. Wasif Ali Memon, in appreciation of compliant taxpayers of the restaurant sector, who were amongst the first to integrate with SRB’s POS system, distributed certificates of appreciation and thanked them for their compliance and support with regards to SRB’s flagship project i.e. the POS initiative.
READ MORE: Tax officials barred from direct freezing bank accounts
The SRB is successfully implementing the POS integration system in Karachi and Hyderabad with provision of real-time monitoring of business activities of the integrated persons and round the clock facility / support through SRB’s POS control room.
READ MORE: SRB implements verification system for utility invoices
“So far 56 restaurants have integrated their point of sales with the SRB,” it said.
The SRB is committed to achieve continuous growth and implementing measures for maximizing revenue collection. “SRB thanks all integrated persons for their support in making SRB’s POS a success, a system based on mutual trust and coordination,” it added.
READ MORE: KTBA identifies anomaly in SRB’s appellate system
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Dollar hits record high at Rs202.83 in interbank
KARACHI: The US dollar made a new historic high at Rs202.83 against the Pakistani Rupee (PKR) at closing of interbank foreign exchange market on Tuesday.
The exchange rate witnessed a fall of in PKR of Rs2.77 against the dollar to end at Rs202.86 as compared with the previous day’s closing of Rs200.06 in the interbank foreign exchange market.
The rupee previously fell to the record low at Rs202.01 on May 26, 2022.
READ MORE: Dollar hits Rs200.06 as rupee falls sharply in interbank
Currency experts said that the rupee was under immense pressure due to import payment demand and falling foreign exchange reserves.
They said that usually import payment high in the last month of a fiscal year, especially for the oil imports.
It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion.
Although the since announcement of raising petroleum prices the rupee witnessed a recovery. However, the falling foreign exchange reserves of the central bank once again put pressure on the local unit.
READ MORE: Dollar rebounds to Rs197.92; halts rupee’s gaining streak
The foreign exchange reserves of the State Bank of Pakistan (SBP) fell two years low to $9.72 billion by week ended May 27, 2022. The SBP foreign exchange reserves were at $10.089 billion a week ago i.e. May 20, 2022. The central bank said that its reserves were decreased by $366 million to $ 9.723 billion due to external debt repayment. The SBP’s foreign exchange reserves were at $9.96 billion on June 19, 2020.
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 $10.423 billion by week ended May 27, 2022 from touching the peak on August 27, 2021. The official reserves of the SBP also reduced to payment for 1.46 months for import cover.
READ MORE: Dollar weakens for 5th straight day; ends at Rs197.59
Overall the foreign exchange reserves of the country declined by $379 million to $15.771 billion by week ended May 27, 2022 as compared with $16.150 billion a week ago. 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 $11.547 billion.
The dollar hit record high at Rs202.01 on May 26, 2022. However, with the decision of the government to partially withdraw the subsidy to get next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during past five sessions.
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.
READ MORE: SBP’s forex reserves fall two-year low to $9.72 billion
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 to impose a complete ban on imports to support balance of payment and help rupee to stable. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.
Pakistan’s import bill massively increased to $72.18 billion during first 11 months (July – May) 2021/2022 as compared with $50.03 billion in the same period of the last fiscal year, showing an increase of 44.28 per cent.
READ MORE: Dollar loses Rs4.14 in four sessions; falls to Rs197.87
Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s energy bill was $17.03 billion during the first nine 10 months (July – April) 2021/2022 as compared with $8.69 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.