KARACHI: The total foreign exchange reserves of Pakistan increased by $21 million to $14.815 billion by week ended February 22, 2019 as compared with $14.794 billion a week ago, the State Bank of Pakistan (SBP) said on Thursday.
The reserves held by SBP, however, declined by $7 million to $8.036 billion as compared with $8.043 billion.
The reserves held by commercial bank increased by $28 million to $6.779 billion from $6.751 billion.
KARACHI: State Bank of Pakistan (SBP) has issued instructions for banks regarding opening of bank accounts by Afghan refugees.
In a circular issued on Thursday, the SBP said that National Database and Registration Authority (NADRA) had informed that biometric verification for opening bank accounts of Afghan refugees holding Proof of Registration (PoR) Card has been made live w.e.f February 26, 2019 over the existing established linkage of CNIC verification.
The biometric verification service for Afghan refugees holding PoR Card would work similar to the CNIC biometric verification system.
Accordingly, for opening accounts of Afghan refugees holding PoR Card, banks/DFIs may accept the valid Proof of Registration (PoR) Card issued by NADRA as identity document. In this regard, banks/DFIs shall verify the identity of the Afghan refugees holding PoR Card through NADRA biometric verification system for opening of account.
Moreover, for services offered by banks to their account holders, where CNIC and biometric verification is required under AML/CFT Regulations, valid biometrically verified PoR Card is acceptable as identity document.
However, banks/DFIs are advised to ensure compliance of all relevant legal and regulatory requirements including AML / CFT preventive measures instructed by SBP for account opening from time to time.
KARACHI: State Bank of Pakistan (SBP) on Thursday directed exchange companies to take approval from the central bank before opening outlets at any airport in the country.
In a circular, the SBP said that in order to facilitate the Exchange Companies and Exchange Companies of ‘B’ category in timely opening of their outlets (Currency Exchange Booths / Branches) at Pakistani airports under Pakistan Civil Aviation Authority (CAA) license, the following procedure will be applicable with immediate effect:
a. Exchange Companies and Exchange Companies of ‘B’ category desirous of participating in CAA tender(s) for award / renewal of license of currency exchange booth(s) / branch(es) at any Pakistani airport(s) shall obtain in-principle approval from SBP before participating in each CAA tender.
b. Application(s) complete in all respects by Exchange Companies and Exchange Companies of ‘B’ category for obtaining in principal approval to participate in CAA tender(s) must reach Exchange Policy Department at least 7 working days prior to the last date of application submission in CAA tender(s).
Exchange Companies
c. In principle approval for participation in CAA tender(s) shall be given by SBP to those Exchange Companies which have better compliance ratings, financial health, corporate governance etc. as mentioned in Para 3(iii) and (iv) of Chapter 4 of Exchange Companies Manual.
d. Application(s) of Exchange Companies for in-principle approval for participation in CAA tender(s) for opening of currency exchange booth(s) / branch(es) at airports shall be treated independent of their Annual Network Expansion Plan and may be submitted to the Director, Exchange Policy Department any time during the year as per CAA tender timelines.
Exchange Companies of ‘B’ category
e. Exchange Companies of ‘B’ Category are not allowed to participate in CAA tender(s) for award of new license of currency exchange booth(s) / branch(es) as at present they are not allowed expansion of their branch network.
f. Exchange Companies of ‘B’ category holding valid CAA license of currency exchange booth(s) / branch(es) shall apply for permission to participate in fresh tenders at airports/locations where they already operate after expiry of CAA license subject to compliance as applicable to Exchange Companies with requirement of Para 3(iii) and (iv) of Chapter 4 of Exchange Companies Manual.
The SBP said that while submitting the application for participation in CAA tender, Exchange Companies and Exchange Companies of ‘B’ category shall deposit non-refundable fee of Rs.50,000/- per outlet in RTGS Clearing account number 427516 of the State Bank and submit the payment receipt as evidence of having paid the applicable fee.
The central bank warned that failure to comply with the above instructions shall attract regulatory action against the concerned Exchange Company / Exchange Company of ‘B’ Category under the relevant provisions of the Foreign Exchange Regulation Act, 1947.
KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended with gain of 362 points despite tension on the Pak-India borders.
The index closed at 39,055 points as against 38,693 points showing an increase of 362 points.
Analysts at Arif Habib Limited said that the market opened on a positive note today and leaped by 123 points at the opening.
During the session, the index increased by 456 points, however, later the investors showed concern due to tensions on the border, which resulted in a decline of 134 points.
Market recovered back in the last trading hours that resulted in an adjusted closing of +362 points.
Though volumes declined as compared to yesterday, nonetheless healthy volumes were seen in the end.
Banking sector led the volumes table with 24 million shares, which was topped by BOP.
Sectors contributing to the performance include Banks (+63 points), Autos (+37 points), Pharma (+35 points), Tobacco (+33 points), Miscellaneous (+29 points).
Volumes declined from 274 million shares to 159 million shares (-42 percent DoD). Average traded value also declined by 28 percent to reach US$ 53 million as against US$ 74 million.
Stocks that contributed significantly to the volumes include BOP, WTL, KEL, PAEL and FCCL, which formed 29 percent of total volumes.
Stocks that contributed positively include DAWH (+36 points), PAKT (+33 points), OGDC (+29 points), PSEL (+23 points), and MEBL (+19 points). Stocks that contributed negatively include MCB (-19 points), NESTLE (-14 points), PPL (-12 points), ENGRO (-11 points) and EFERT (-11 points).
KARACHI: The Pak Rupee made a sharp recovery of 44 paisas against dollar on Thursday on peace message sent by Pakistan after giving strong response to Indian aggression.
The rupee ended Rs138.82 to the dollar as compared with last day’s closing of Rs139.25 in interbank foreign exchange market.
The rupee was depreciated massively last day against dollar.
However, yesterday Pakistan shot down two Indian fighter jets in response to Indian violation of Pakistan airspace a day earlier.
Dealers said that the sentiments were positive in foreign currency market as economic indictors showing improvement.
The interbank foreign exchange market was initiated in the range of Rs139.20 and Rs139.25.
The market recorded a high of Rs139.20 and low of Rs138.80 and closed at Rs138.82.
The exchange rate however has shown some negative trend.
The buying and selling of dollar was recorded at Rs139.00/Rs139.50 from previous day’s closing of Rs138.70/Rs139.20 in cash ready market.
KARACHI: Murree Brewery Company Limited has declared 4.6 percent increase in net profit despite ban on liquor sale in Sindh, according to half- year financial results for period ended December 31, 2018 submitted to Pakistan Stock Exchange (PSX) on Thursday.
The net sales revenue increased by 10.2 percent to Rs4.582 billion during July – December 2018 from Rs4.15 billion in the corresponding period of the last year.
The gross profit of the company has increased by 10.2 percent to Rs1.544 billion from Rs1.4 billion.
Earnings per share of the company have increased by 4.6 percent to Rs23.78 from Rs22.75 EPS.
The company declared the profit despite ban on liquor sale in Sindh. It said that as advised earlier the case is pending before the Sindh High Court. Meanwhile, sales during the half year were satisfactory.
The company also pointed out depreciation in local currency. It said that the rupee has further devalued to Rs.138 per US dollar increasing the cost of imports and making repayment of foreign currency loans and interest thereon dearer.
The benefit to the country by making exports cheaper has been marginally received by reducing the current account deficit. The cost of production has increased with dearer imports and increases in the cost of gas and electricity which has also increased the cost of living of the public utilizing higher quantities of these utilities, it added.
The company said that the Punjab Government issued a notification # SO(E&M)2-3/2011(P-II) dated 24th June, 2015 by which Still Head Duty was levied from 1st July, 2015 on all Pakistan Made Foreign Liquor and beer meant for consumption outside the province of Punjab. The Company challenged this notification in the Lahore High Court, Lahore.
The notification was set aside by the Honorable High Court on 27th June 2016.
The Company is paying this duty and recovering it from the buyers, which makes Murree Brewery products dearer than our competitors.
The Punjab Government has filed an appeal in the Lahore High Court, Lahore praying the impugned judgment may be set aside and the Notification dated 24th June, 2015 be declared intra vires to the Constitution of Islamic Republic of Pakistan.
Punjab Excise has got a stay against Sindh wine dealers and is collecting “extra duty”. The intra court appeal of the Excise Department has been dismissed by the Honorable Lahore High Court, Lahore on 19th February, 2019. However, the department has the right to appeal in the Supreme Court.
The company said that tax on extraction for business purpose also affected the sales.
In December 2018 the Supreme Court ordered a Re 1 per litre tax on water extracted for business purposes on a suo motu case pertaining to selling of water extracted from underground sources without any charge as well as the fitness of the same for human consumption.
Finally it applies to many industries including cement, beverages, textiles etc. The modalities of this tax have not yet been determined.
As the Company’s Tops and Liquor Divisions come under the purview of this tax, a review petition has been led in the Supreme Court.
KARACHI: The Pak Rupee recovered 10 paisas against the US dollar in early trade on Thursday owing to strong response by Pakistan to Indian aggression.
The dollar is being traded at Rs138.16 in interbank foreign exchange market. The foreign currency market was ended on Wednesday at Rs138.26 as exchange rate lost 38 paisas.
Currency experts said that the shooting down two Indian fighter jets a day earlier by Pakistani Air Force boosted the confidence of market.
The rupee had maintained levels during the last week owing to investment prospects and shrinking current account deficit.
However, latest conflict between Pakistan and India dragged down the value of the local unit.
KARACHI: Late filers of income tax returns will not get their name on the Active Taxpayers List (ATL) that will be issued tomorrow (March 01, 2019).
The Federal Board of Revenue (FBR) will issue the latest edition of ATL, which will carry names of those taxpayers who filed their income tax returns by due date for Tax Year 2018.
With the issuance of new active taxpayers’ list the FBR will also suspend the weekly updated list as the late filers have been denied to have their names on the list.
The previous PML-N government in its last budget announcement made a law to restrict the list with those name, who filed their list by due date.
Through Finance Act, 2018 a new provision Section 182A was added to Income Tax Ordinance, 2001 for this purpose.
Section 182A: Return not filed within due date.—
Sub-Section (1): Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—
(a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date; and
“Explanation.—For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and
(b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV.
The FBR issued its last weekly updated ATL for Tax Year 2017 on Monday, February 25, 2019, which carried those taxpayers list who filed their returns up to February 24, 2019.
The last ATL shows the FBR received 1.84 million returns till February 24, 2019 for tax year 2017.
While, the FBR received around 1.55 million income tax returns for tax year 2018 by due dates for individuals and corporate entities.
The appearance on ATL is important for a taxpayer to avail reduced rate of withholding tax rates.
The appearance of name has become even more important after the amendments brought in to restrict non-filers in purchase / registering new motor vehicles and immovable properties.
ISLAMABAD: The Cabinet Committee on Energy (CCoE) has been informed that around 20,712 FIRs were registered and 1909 arrests were made in electricity theft cases.
Finance Minister Asad Umar chaired the meeting of CCoE on Wednesday.
The Power Division gave the meeting performance update on efficiency improvement and control of theft.
Regarding control of theft, CCoE was apprised that during the period from October 13, 2018 to February 22, 2019 as many as 20,712 FIRs were registered and 1909 arrests were made.
Detection bills charged amounted to Rs. 1,278.305 million while the amount of detection recovered was Rs 537.120 million.
The CCoE appreciated the Power Division’s effective drive for recoveries and theft control. The meeting also noted the progress shared by the Power Division on proposed plan/measures to bring down power sector losses.
The meeting was informed that total collection from November 2017 to January 2018 stood at Rs 203,953 million which rose to Rs. 243,642 million in the same period in FY 2018-19, showing net increase of Rs 39,689 million.
Improved recovery from consumers and decrease in losses significantly contributed to the enhanced collection, the meeting was informed.
The committee approved proposals from Power Division providing for all future Renewable Energy investments to be treated in line with the RE Policy 2019 that envisages a framework consistent with the current international market norms and greater consumer benefits.
The Power Division informed that draft RE Policy 2019 was currently in circulation for comments by stakeholders and would be presented to the CCoE as soon as such comments were finalized.
All those projects which have been granted LoS by AEDB, shall be permitted to proceed towards the achievement of their requisite milestones as per the RE Policy 2006.
However in those cases where more than a year has elapsed since determination of tariff by NEPRA, their tariff would have to be reviewed by NEPRA as per policy.
Petroleum Division apprised the CCoE about findings of the committee probing into the matter of inflated gas bills. It was also informed that report of audit being conducted in this matter will also be shared with the CCoE.
KARACHI: World Bank Group is conducting a survey regarding traders’ and customs agents’ views about the customs clearance process in Pakistan.
Karachi Customs Agents Association (KCAA) is facilitating the World Bank in this survey, said a circular issued by the association.
This survey will be used to understand the relations between companies and Pakistan customs and will be one of the tools used to ultimately improve the business climate and facilitation of trade in Pakistan.
The KCAA said that it would contact its members for the survey in order to take feedback on Pakistan’s trade network.
The association said that the feedback would be important for enabling further improvement in the trade and customs experience in the country.
The KCAA further said that in order to ensure anonymity and confidentiality, the World Bank had commissioned Gallup Pakistan, an independent market research organization, to carry out the study.
“Gallup will be contacting you (members) in the next few weeks to arrange an in-person interview,” it said.
“As per undertaking submitted by the World Bank Group all the information provided will be kept confidential and will only be used in aggregate form,” the KCAA assured the members.