Pkrevenue.com

Author: Faisal Shahnawaz

  • Prolong Eid holidays to adversely affect exports: APTMA

    Prolong Eid holidays to adversely affect exports: APTMA

    KARACHI: All Pakistan Textile Mills Association (APTMA) has strongly reacted to the announcement of the government regarding Eid Holidays and stated the prolong closure may adversely affect economic activities.

    The Patron in Chief APTMA, Gohar Ejaz has rejected the decision of the Government for Eid ul Fitr holidays from 10th to 16th May 2021. While expressing his concerns, stated that this will bring the whole country practically shut down for 10 days from Saturday, 8th May to Monday 17th May 2021.

    Shutting down the country for 10 consecutive days is unacceptable as it would create a lot of glitches for the economy, industries, particularly the exporters who will not be able to dispatch their shipments abroad due to the complete closure of banks, ports, customs, and all other departments during excessive holidays. 

    He warned that we cannot afford such extended holidays as they will result in giving losses of up to billions of rupees to the national exchequer and terribly affect business activities particularly the exports.

    Simultaneously, it will badly affect and deprive the daily wage earners of the country of their desperately needed earnings for continuous 10 days. Workers will find it impossible to feed their families creating a social disaster.

    He particularly highlighted the Textile Industry that despite the issues and hardship, committed to double the exports.

    Textile manufacturers have orders in hand and are working day and night to dispatch shipments according to the agreed schedule.

    This decision will end up in the cancellation of orders which will not only result in losses to manufacturers but also to the country.

    Keeping in view the social overall business climate and economic crises being faced by the country, Gohar Ejaz requested the Government to review the decision of Eid ul Fitr holidays from 10th to 16th May 2021.

    The holidays should only be from 13th to 16th May 2021. The government should not shut down production and transportation for 10 days as the country simply cannot sustain such production and export loss.

  • Pak Suzuki posts sharp 285pc growth in first quarter

    Pak Suzuki posts sharp 285pc growth in first quarter

    KARACHI: Pak Suzuki Motors Company Limited on Thursday announced an unprecedented growth of 285 percent in gross profit to Rs2.21 billion during the first quarter (January – March) of 2021.

    The company declared the gross profit of Rs573 million in the same quarter of the last year.

    The sales of the company sharply grew to Rs36.1 billion for the quarter ended March 31, 2021 as compared with Rs17.74 billion in the same quarter of the last year.

    With the higher sales, the distribution and marketing expenses of the company also increased to Rs710 million during the quarter under review as compared with Rs320 million in the same quarter of the last year.

    The company declared profit from operations at Rs1.12 billion during January – March 2021 as compared with loss of Rs1.32 billion in the same quarter of the last year.

    The net profit of the company was at Rs778 million during first quarter of 2021 as compared with net loss of Rs941 million in the corresponding quarter of the last year.

    The company declared earnings per share at Rs9.45 for the period ended March 31, 2021 as compared with net loss of Rs941 million in the corresponding period of the last year.

  • APTMA disapproves Indian cotton import

    APTMA disapproves Indian cotton import

    KARACHI: All Pakistan Textile Mills Association (APTMA) has strongly disapproved any plan to import cotton yarn from India.

    In a statement issued on Friday, Asif Inam, Chairman – APTMA Sindh-Balochistan Region expressed deep concern on drastic decline in price of fine counts of yarn by Rs. 10,000/- per bag in the Faisalabad Yarn Market which is in expectation of massive tax evasion plan by individuals in anticipation of permission be allowed to import cotton yarn from India through Wagah Border.

    Asif Inam in a statement issued to the press and electronic media has said that industry has procured cotton at very high prices and they are not in a position to sustain these losses.

    He said that about 90 percent of yarn produced in the country is available for the domestic market and there is no shortage of yarn in the country.

    Asif Inam urged the government not to allow import of cotton yarn from India as India has imposed restriction on import of all Pakistani products.

    To restrain import of yarn from India and support the local industry he demanded the government to withdraw levy of sales tax on zero rated sector so that the genuine industry may flourish and be able to provide yarn at affordable prices.

    He also urged the government to save domestic industry from total closure, DLTL should not be provided on those entire textile products produced using imported materials which are either produced or manufactured in Pakistan as all such textile items which are produced using imported materials are incurring losses to the national exchequers because most of the exporters falls under the category of Fixed Tax Regime whereas they are also availing DLTL facility ranging between 2 percent to 4 percent and subsidized Export Refinance Facility which is provided from the revenue earned by the government from Pakistani Taxpayers. DLTL and ERF should only be provided on the products produced using domestic yarn and fabrics, he added.

  • FBR invites customs proposals for budget 2021/2022

    FBR invites customs proposals for budget 2021/2022

    The Federal Board of Revenue (FBR) has opened the floor for customs duty proposals as part of the preparations for the federal budget for the fiscal year 2021/2022.

    (more…)
  • Weekly Review: market likely to move in green

    Weekly Review: market likely to move in green

    KARACHI: The share market likely to move in green over million doses expected to be purchased from China within the ongoing quarter and subsequent distribution, dampening in COVID-19 concerns may fuel the market pack.

    Analysts at Arif Habib Limited said that bull run energy stocks to roll over next week and keep interest in the bourse alive.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.6x (2021) compared to Asia Pac regional average of 15.9x and while offering DY of around 6.1 percent versus around 2.4 percent offered by the region.

    While nervousness ruled market sentiment in the earlier part of the week with 3 cases of the new found coronavirus strain in Pakistan as well as profit taking by institutional investors, the equity bourse quickly posted a rebound amid extension in the Prime Ministers construction package to December 31, 2021.

    We also highlight that potential partial resolution of the circular debt with installment due to IPP’s within Jan’21 aided market momentum. That said, the benchmark KSE-100 index breached the 44k level and closed at 44,435 points, up by 2.34 percent / 1018 points.

    Sector-wise positive contributions came from i) Banks (342 points), ii) Fertilizers (231 points), and iii) Oil & Gas Exploration (202 points) while Power Generation & Distribution declined 37 points. Scrip-wise positive contributions were led by OGDC (112 points), FFC (95 points), MEBL (68 points), ENGRO (64 points), and PSO (63 points). HUBC and KOHC led the negative contributions, declining 43 and 15 points respectively.

    Foreign selling continued this week clocking-in at USD 46.22 million compared to a net sell of USD 20.44 million last week.

    Selling was witnessed in All other sectors (USD 46.14 million) and Technology (USD 0.95 million). On the domestic front, major buying was reported by Companies (USD 41.09 million and Individual (USD 20.04 million).

    That said, average daily volumes and traded value for the outgoing week were up by 4 percent and 3 percent to 528 million shares and USD 142 million, respectively.

  • Dollar eases to Rs159.97

    Dollar eases to Rs159.97

    KARACHI: The Pak Rupee gained 14 paisas against dollar on Tuesday amid inflows of workers’ remittances and export receipts, dealers said.

    The rupee ended at Rs159.97 to the dollar from last day’s closing of Rs160.11 in interbank foreign exchange market.

    Currency experts said that improved receipts of exports and workers’ remittances helped the rupee to make gain.

    They said that the second wave of coronavirus also reduced dollar demand for import payments.

  • Customs announces auction of confiscated diesel oil

    Customs announces auction of confiscated diesel oil

    The Customs Intelligence and Investigation (I&I), Regional Office, Multan, has officially announced the auction of seized high-speed diesel scheduled to take place on October 28, 2020.

    (more…)
  • Dollar retreats to Rs161.82 in interbank

    Dollar retreats to Rs161.82 in interbank

    KARACHI: The Pak Rupee continued its gaining momentum and further advanced by 31 paisas against the dollar on Thursday as the currency market remained positive.

    The rupee ended Rs161.82 to the dollar from previous day’s closing of Rs162.13 in interbank foreign exchange market.

    Currency experts said that sufficient inflows and a current account surplus helped the rupee to make gain.

    With the latest depreciation the dollar comes at five-month low in the interbank foreign exchange market.

    The dollar reached to record high of Rs168.43 on August 26, 2020 in interbank foreign exchange market.

    The rupee recovered around Rs6.61 against the dollar from witnessing record low against dollar.

    The experts said that ease in exchange rate pressure to help reduce debt pressure by Rs725 billion.

  • KiTS system stops

    KiTS system stops

    KARACHI: Karachi Internet Trading System (KiTS) of Pakistan Stock Exchange (PSX) stopped on Thursday morning due to a technical problem, said a statement.

    The notice updated on the PSX website at 9:31AM Thursday, stated that KiTS system has a technical problem and is not available.

    KiTS is one of the trading services of the PSX. KiTS is the Karachi Internet Trading System which is an online system for trading.

    The notice said that IT Teams are working to restore KiTS Services, and the system is expected to restore in the next two hours.

  • SBP relaxes 100pc cash margin condition on import of certain raw materials

    SBP relaxes 100pc cash margin condition on import of certain raw materials

    KARACHI: The State Bank of Pakistan (SBP) on Thursday relaxed the condition of 100 percent cash margin requirement on import of certain raw materials.

    A statement issued by the SBP stated that it had eased 100 percent cash margin requirement on the import of certain raw materials to support manufacturing and industrial sectors and further enhance their capacity to contribute towards the recovery of the economy in post COVID-19 era.

    The cash margin condition was initially imposed in 2017 on 404 HS Codes and later in 2018 on a further 131 items, with a view to contain the import of mostly consumer goods and to allow room for the import of more growth-inducing items.

    Considering the challenges posed by the COVID-19 to the manufacturing sector and other economic segments, and on the representations made by various businesses and associations, the SBP re-evaluated the cash margin requirements and decided to remove this requirement on 106 items/HS Codes.

    The removal of the cash margin requirements on these items will support businesses’ cash flows and liquidity, by freeing up funds previously held with the banks under cash margin against imports, and route these funds towards avenues of growth and development that will benefit the economy.

    The SBP remains committed to facilitate industries and businesses in contributing to the growth and development of the country, and is ready to take any further actions required to support the overall manufacturing and industrial activity.