Pkrevenue.com

Author: Faisal Shahnawaz

  • PKR witnesses record single day fall to dollar

    PKR witnesses record single day fall to dollar

    KARACHI: The Pakistan Rupee (PKR) on Thursday witnessed a historic single day fall of Rs2.05 as dollar reached to another record high of Rs188.18 at interbank foreign exchange market.

    Currency experts said that the foreign exchange market was remained volatile during the day owing to scheduled repayment of government external debt and political uncertainty after dissolution of national assembly.

    READ MORE: Dollar tops PKR 186.13 at interbank closing

    The rupee ended Rs188.18 to the dollar as compared with previous day’s closing of Rs186.13 in the interbank foreign exchange market.

    The rupee fell non-stop against the dollar for the last 17 trading sessions. The local currency recorded Rs178.51 at interbank closing on March 11, 2022 and since then the dollar’s made gain Rs9.67.

    The local unit recorded a decline of Rs30.64 or 19.45 per cent against the dollar since start of the current fiscal year. The rupee was at Rs157.54 to the dollar on June 30, 2021 and fell to Rs188.18 to the dollar on April 07, 2022.

    READ MORE: Dollar hits PKR 184.35 in intraday trading

    Currency experts attributed the new wave of rupee devaluation to political uncertainty at home and an international conspiracy to regime change in Pakistan.

    Many believe that Pakistan was not able to receive funds from international agencies, which resulted in massive fall in foreign exchange reserves in past few weeks.

    Pakistan’s foreign exchange reserves have depleted by $2.88 billion in a week to $18.554 billion by week ended March 25, 2022, State Bank of Pakistan (SBP) said on Thursday. The foreign exchange reserves of the country were $21.44 billion by week ended March 18, 2022.

    READ MORE: Dollar makes new top at Rs184.09

    This is seventh consecutive week when the country’s foreign exchange reserves have witnessed consistent decline. The liquid foreign exchange reserves of Pakistan have declined by $5.167 billion since February 04, 2022, when the reserves were at $23.721 billion.

    The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year.

    Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.

    READ MORE: Rupee continues falling spree; dollar at Rs183.48

    The trade deficit widened by 70 per cent to $35.39 billion during first nine months (July – March) 2021/2022 as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

    The exports of the country recorded an increase of 24.67 per cent to $23.3 billion during first nine months of the current fiscal year as compared with $18.7 billion in the same months of the last fiscal year.

    Meanwhile, import bill registered an increase of 48.63 per cent to $58.69 billion during July – March 2021/2022 as compared with $39.49 billion in the corresponding period of the last fiscal year.

  • Bitcoin to Pak Rupee on April 07, 2022

    Bitcoin to Pak Rupee on April 07, 2022

    As of April 07, 2022, at 5:41 AM Pakistan Standard Time (PST), the exchange rate of Bitcoin (BTC) in Pakistani Rupee (PKR) stood at Rs8,034,761.30 in the open exchange market.

    This figure reflects a comparison with the previous day’s closing rate of Rs8,459,985.89, indicating a fluctuation in the value of the cryptocurrency against the PKR.

    Similarly, the exchange rate of Bitcoin in US Dollar (USD) at the same time was $43,186.03 on April 07, 2022. Contrasted with the closing rate of $45,857.35 on April 6, 2022, this illustrates a shift in the value of Bitcoin against the USD.

    It’s essential to note that all data and information provided are for informational purposes only. They are not intended for trading purposes or to provide financial, investment, tax, legal, accounting, or any other form of advice. Individuals engaged in trading activities are strongly advised to consult their brokers or financial representatives to verify pricing before executing any trades.

    Furthermore, the exchange rate fluctuations observed in Bitcoin do not constitute investment advice. The data presented here should not be construed as a recommendation to buy, sell, or hold any security or financial product.

    Cryptocurrencies, including Bitcoin, are known for their volatile nature, with their values subject to rapid changes based on various factors such as market demand, investor sentiment, regulatory developments, and technological advancements. As such, individuals involved in cryptocurrency trading should exercise caution and conduct thorough research before making any investment decisions.

    The fluctuating exchange rates of Bitcoin against both the Pakistani Rupee and the US Dollar highlight the dynamic nature of the cryptocurrency market. While these fluctuations may present opportunities for some investors, they also entail risks that individuals should carefully consider and manage according to their risk tolerance and investment objectives.

    In conclusion, the exchange rate of Bitcoin against the Pakistani Rupee and the US Dollar continues to experience fluctuations, underscoring the need for vigilance and informed decision-making among cryptocurrency traders and investors.

  • Ripple to Pak Rupee on April 07, 2022

    Ripple to Pak Rupee on April 07, 2022

    KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs186.05 on April 07, 2022 at 5:34 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate Rs151.90 at closing on April 06, 2022.

    The rate of Ripple in US Dollar (USD) is $0.76 on April 07, 2022 at 5:34 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate of $0.82 at closing on April 06, 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.

    Ripple to Pak Rupee on April 06, 2022
  • Dogecoin to Pak Rupee on April 07, 2022

    Dogecoin to Pak Rupee on April 07, 2022

    KARACHI: The exchange rate of Dogecoin (DOGE) in Pak Rupee (PKR) is Rs26.53 on April 07, 2022 at 5:27 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate Rs31.41 at closing on April 06, 2022.

    The rate of Dogecoin in US Dollar (USD) is $0.14 on April 07, 2022 at 5:27 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate $0.17 at closing on April 06, 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.

    Dogecoin to Pak Rupee on April 06, 2022
  • Policy rate may rise as T-Bill yields increase sharply

    Policy rate may rise as T-Bill yields increase sharply

    KARACHI: The cut-off yield of treasury bills (T-Bills) increased sharply in an auction held on Wednesday indicating an expected rise in policy rate in upcoming monetary policy announcement scheduled for April 19, 2022.

    “In today’s [April 06, 2022] treasury bills auction, cut-off yields increased by 60 – 80 basis points,” according to analysts at Topline Securities.

    READ MORE: SBP receives 20 applications for digital bank licenses

    The government raised Rs645 billion through auction of treasury bills against the target of Rs600 billion and maturity of Rs674 billion, according to results announced by the State Bank of Pakistan (SBP).

    The key policy rate has been kept unchanged at 9.75 per cent in the last Monetary Policy Statement (MPS) on March 08, 2022. However, the cut-off yields of government securities have shown much higher rate against the policy rate.

    READ MORE: State Bank enhances frequency of MP reviews to eight

    The cut-off yields of 3-, 6- and 12-month papers increased by 80 basis points, 75 basis points and 60 basis points, respectively. The yields in three-month treasury bill increased to 12.80 per cent from 11.9999 per cent. Similarly, yields in six-month and 12-month papers have increased to 13.25 per cent from 12.50 per cent and 13.2999 per cent from 12.70 per cent, respectively.

    READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month

    The latest auction of treasury bills witnessed aggressive participation from the banks. The SBP received bids worth Rs911 billion against the target of Rs600 billion.

    However, the central bank accepted bids worth Rs645 billion at maturity of Rs674 billion.

    READ MORE: SBP decides to keep policy rate unchanged at 9.75%

  • Advance tax on individuals must be for Rs10mn turnover

    Advance tax on individuals must be for Rs10mn turnover

    KARACHI: The Federal Board of Revenue (FBR) has been proposed to increase the turnover from one million rupees to 10 million rupees for individuals to made advance payment.

    Karachi Tax Bar Association (KTBA) in its proposals for budget 2022/2023, stated that Section 147 of the Income Tax Ordinance, 2001 relates to quarterly payment of advance tax.

    READ MORE: Eliminating commissioner audit selection power sought

    The subsection 6 entitles a taxpayer to file a lower estimate. Vide Finance Act 2018 condition has been added that the lower estimate be accompanied with prescribed details.

    Subsection 4A as substituted vide Finance Act 2015 states that the taxpayer shall estimate the tax payable for the tax year, by the second installment due date and if the tax payable is likely to be more than the amount payable under sub-section (4), the taxpayer shall furnish an estimate of the amount of tax payable and discharge fifty per cent by the second quarter installment. The remaining fifty per cent to be discharged by the due date of the third and fourth quarter of the tax year.

    READ MORE: Threshold be doubled for domestic electric consumers

    The requirement of quarterly payment of advance tax is comfortable for the companies and AOPs as they are regularly operated entities. While the condition of income more than one million for the individual cause workload for the registered individuals to face notices and quarterly compliance of advance tax. Unease of doing business and rigorous compliance requirement.

    The requirements to file prescribed details along with the lower estimate is against the scheme of deemed assessment and concurrent legislation as well since the section 205 mandates the taxpayer to discharge ninety percent of the tax liability by way of advance tax.

    READ MORE: Genuine NPOs unable to get benefit of 100% tax credit

    “The amendment shall be made in the threshold of one million rupees. It should be increased to ten million,” it is recommended.

     Sub-section147(4A) may be restored to the position prior to amendment vide Finance Act 2015 requiring taxpayers to file an estimate of higher side. While the ultimate objective of section 147 is to discharge tax liability of 90 percent this is well achieved vide pre-amended position with check as per section 205 of the Ordinance.

    READ MORE: Changes sought in withholding on non-resident payment

    The requirements under subsection 6 as inserted vide Finance Act 2018 tantamount to disturbing the concept of deemed assessment and should be deleted.

    Giving rationale, the KTBA said this will save individuals from cost burdens of quarterly compliance And decrease the workload of individual tax-payers.

  • SBP issues KIBOR rates – April 06, 2022

    SBP issues KIBOR rates – April 06, 2022

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on April 06, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.8710.37
    2 – Week10.1110.61
    1 – Month10.5611.06
    3 – Month11.7712.02
    6 – Month12.3912.64
    9 – Month12.4312.93
    1 – Year12.4812.98

    Source: State Bank of Pakistan

    SBP issues KIBOR rates on April 05, 2022
  • Stocks gain 183 points despite political uncertainty

    Stocks gain 183 points despite political uncertainty

    KARACHI: Pakistan stocks gained 183 points on Wednesday despite political uncertainty and devaluation of Pakistani rupee (PKR) against the dollar.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended 44,111 points from previous day’s closing of 43,928 points, showing an increase of 183 points.

    READ MORE: Pakistan stocks end up amid volatile trading

    Analysts at Topline Securities said that Pakistan equities closed green where benchmark KSE-100 Index settled at 44,111 level. “Despite political uncertainty and unstable economic conditions market open on a positive note where market make an intraday high of 449 points,” they added.

    The analysts at Arif Habib Limited said that positive day observed at PSX, KSE-100 index remained in green zone throughout the day, activity remained sideways due to political unrest and devaluation of PKR against US Dollar.

    READ MORE: Stocks plunge 1,250 points on no-trust move rejection

    Value buying were observed in fertilizer sector. In the last trading hour, across the board profit taking was witnessed.

    Sectors contributing to the performance include Fertilizer (+64.4 points), Banks (+36.0 points), Technology & Communications (+30.8 points), Power (+28.7  points) and Investment Banks (+25.3 points).

    READ MORE: Weekly Review: market to relax after no-confidence vote

    Volumes decreased from 115.6 million shares to 108.4 million shares (-6.3 per cent DoD). Average traded value also decreased by 6.9 per cent to reach US$ 22.9 million as against US$ 24.6 million.

    Stocks that contributed significantly to the volumes are TREET, TELE, EPCL, KEL and GGL.

    READ MORE: Pakistan stocks gain 223 points amid volatile trading

  • Dollar tops PKR 186.13 at interbank closing

    Dollar tops PKR 186.13 at interbank closing

    KARACHI: The US dollar ended at Pakistan Rupee (PKR) 186.13, a new historic high of the foreign currency, at closing of interbank foreign exchange market on Wednesday.

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  • SBP receives 20 applications for digital bank licenses

    SBP receives 20 applications for digital bank licenses

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday said that around 20 applications were received for digital bank license by end of deadline i.e. March 31, 2022.

    The application process registered an overwhelming response whereby SBP received twenty (20) applications from a diverse range of applicants, including domestic commercial banks, microfinance banks, electronic money institutions and FinTech players, the SBP said in a statement issued on Wednesday.

    Foreign players already operating in the digital banking space overseas have also expressed their interest to venture into Pakistani market.

    The strong interest shown by both local and international players into SBP’s digital banks’ initiative reflects their confidence in the financial sector of Pakistan and the potential of the investment opportunities available in the country.

    Earlier this year on January 03, 2022, SBP launched its “Licensing and Regulatory Framework for Digital Banks”.

    While setting foundation for the customers’ convenience, providing cost effective digital financial services and promoting innovation for achieving SBP’s overall goal of digitization in the banking business, the Framework is primarily aimed at providing financial services to unserved and underserved segments of the society.

    To achieve the intended objectives under this regulatory initiative, the applications were solicited from interested applicants who can demonstrate strong value proposition, robustness of technological infrastructure, sufficiency of financial strength, high level of technical expertise and effectiveness of their risk management culture in the Digital Banks’ space.

    SBP developed and finalized this Framework after an extensive consultative process. Initially, SBP released an exposure draft of this Framework and a targeted survey was launched to invite feedback from a wide range of local as well as international stakeholders. Subsequently, a number of meetings were held with all the stakeholders to further enrich the consultative exercise.

    Later, SBP also organized two interactive webinars titled ‘Digital Banks – A New Era in Pakistan’ and ‘The Promise of Digital Banks’ with leading local as well as international speakers to discuss the opportunities and challenges associated with digital banks as well as disseminate awareness about Pakistan’s digital bank licensing framework.

    During the application window opened from January 03 till March 31, 2022, SBP has remained extensively engaged with all the interested applicants and held various rounds of discussions/ meetings with all of them.

    Moreover, SBP team also remained committed to provide exclusive support and necessary facilitation required for preparation and submission of applications to all the applicants. This initiative of State Bank would greatly help in providing financial services to underserved and unserved segments of the society.