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ISLAMABAD: The finance division has extended last date for redemption of bearer prize bonds Rs40,000 and Rs25,000 denominations up to September 30, 2021.
According to notifications issued by the Finance Division the last date for redemption of Rs40,000 denomination bearer prize bonds has been extended up to September 30, 2021. Similarly, the last date for encashment of Rs25,000 denomination bearer prize bonds has also been extended up to September 30, 2021.
ISLAMABAD: An important meeting of the ministry of finance with representatives of International Monetary Fund (IMF) will be held today evening (Thursday evening) to finalize the recommendations for budget 2021/2022.
Senior officials of the ministry of finance, three representatives, including country head, of IMF and senior officials of Federal Board of Revenue (FBR) will attend the meeting, sources said.
Officials of the IMF will attend the meeting through video link.
The meeting will discuss important points of the budget, which will include salary income tax and sales tax reforms.
The sources said that the meeting would finalize tax slabs for salaried persons.
The IMF had proposed reduction in salary tax slabs from 11 to five. Further the meeting will discuss sales tax incentives and reduced rates.
The sources said that the government would finalize the proposals after discussions with the IMF.
The source said that the government is considering an increase of 10 percent in salaries and pension. This increase would be given through adhoc basis. However, the government is not considering to grant the increase in basic pay scale.
The government has decided to allocate an amount of Rs900 billion for Public Sector Development Program (PSDP). The budget deficit may be curtailed at six percent of the GDP.
In his recent statement, Finance Minister Shaukat Tarin had already made it clear that the government was not in position to take strict measures due to covid pandemic.
ISLAMABAD: Competition Commission of Pakistan (CCP) on Tuesday issued show cause notices to 19 poultry feed companies for collusive activities and entering into prohibited agreements.
A statement issued by the commission stated that it had taken suo motu notice of the concern and complaints regarding a concurrent increase in the feed prices and initiated an enquiry.
Data gathered from market sources showed that there was indeed a simultaneous increase in price by poultry feed mills and the average quantum of increase in price also appeared to be similar, which raised suspicion of collusive decision making and violation of Section 4 of the Competition Act, 2010.
The CCP said that from December 2018 to December 2020, the feed mills colluded to raise the poultry feed prices by Rs825 per 50 kilogram bag, thus making feed 32 percent costlier for the poultry farmers. “Moreover, data from the Pakistan Bureau of Statistics (PBS) for September 2020 shows that chicken prices rose by 18.31 percent and eggs by 5.2 percent. The rise in these prices coincided with an increase in feed prices by almost Rs100 per bag.”
In October 2020, the CCP said, after another price increase by poultry feed mills by Rs125 on layer and 175 on broiler feed, the chicken prices rose by 26.62 percent and eggs by 23.81 percent as compared to the previous month. In November 2020, the poultry feed prices rose again by Rs150 per bag, and the prices of chicken and eggs rose by 20.76 percent and 5.23 percent. In December 2020, another price increase in poultry feed by Rs250 per bag caused prices of chicken and eggs to rise by 3.21 percent and 14.08 percent, respectively.
Moreover, the CCP said, multiple sources shared the concerns that some of the top poultry feed mills were meeting at different locations and fixing the feed poultry feed prices. Therefore, exercising its powers under Section 34 of the Competition Act, 2010, the CCP on February 04, 2021 carried out search and inspection of two major poultry feed mills based in Rawalpindi and Lahore to impound the proofs of their suspected involvement in collusive activities and collective fixing of poultry feed rates. Two authorized team of the CCP conducted the inspection and successfully impounded the relevant record including computer-stored information.
“The impounded record revealed that officials of 19 feed mills were using an active WhatsApp group where one feed producer would announce its intended price increase and the rest expressing and sharing their willingness to follow suit.
“These discussions and decisions were implemented on the ground, as evidenced by the official price lists of these companies.”
The CCP said that based on the examination and review of the documents/material impounded during the raid, the enquiry report has been concluded.
According to the enquiry report, from December 2018 to December 2020, the poultry feed mills have acted in a collective manner to fix the price of poultry feed, which constitutes a prima facie violation of Section 4 of the Act.
Moreover, while poultry feed companies produce the poultry feed which are mostly located in Punjab, the feed is sold/supplied to poultry farms in Sindh and KPK to meet their requirements and therefore given the inter-provincial movement of poultry feed, any anticompetitive effects would have a spillover effect throughout Pakistan.
The feed companies have been called upon to show cause in writing within 14 days and to appear and place before the commission for hearing. Once the CCP’s bench concludes the hearings, it will pass the order under Section 31 of the Act.
The CCP said if proven, Section 4 violations entail a penalty of Rs75 million in case of a business association and up to 10 percent of the annual turnover or Rs75 million penalty in case of a company/business entity. The companies against whom proceedings are underway can also compete for leniency (reduction in or waiver of penalty) under the CCPs Leniency Regulations subject to provision of additional substantial information or evidence and acceptance by CCP.
KARACHI: The current account balance has posted a surplus of $773 million during first ten months (July – April) of 2020/2021 as compared with a deficit of $4.657 billion in the corresponding period of the last fiscal year, according to statistics released by State Bank of Pakistan (SBP) on Tuesday.
Deficit of trade and service has widened by $22.736 billion during first ten months of the current fiscal year as compared with the deficit of $20.599 billion in the corresponding period of the last fiscal year.
Primary balance has shown a deficit of $4.025 billion during the period under review as it narrowed from the deficit of $4.64 billion in the same period of the last fiscal year.
The major component in surplus of the current account is significant rise in worker remittances. The inflow of remittances increased to $24.24 billion during July – April 2020/2021 when compared with $18.79 billion in the corresponding period of the last fiscal year.
The current account balance posted a deficit of $200 million in April 2021 as compared with deficit of $33 million in March 2021 and deficit of $510 million in April 2020.
Analysts at Arif Habib Research said that it is quite certain that Pakistan is likely to end up with a Current Account (CA) surplus this fiscal year (FY21) of around USD 607 million.
This surplus comes after a gap of 10 years, last witnessed in FY11 of USD 214 million. Despite an expectation of more than 100 percent jump in the trade deficit compared to FY11’s figure, the primary reason for this surplus is the unprecedented and spiraling jump in remittance flows- defying the initial prediction of a decline due to the pandemic.
Moreover, the government seems to be in a comfortable zone given the foreign reserves floating around USD 23 billion mark, providing further support to the overall external position.
As for the stats, the SBP expects CAD to clock in below 1 percent of GDP for FY21 due to strong remittances and high value-added textiles-led exports. However, in FY22, we may see current account balance slipping into deficit (USD 4.4 billion), as trade deficits widens with imports picking up and workers remittances staying stable at the current levels (above ~USD 2.3bn per month).
It is pertinent to note that Pakistan has to rely on the current account deficit because it has been an essential aspect for overall economic growth with imports comprising heavily of capital assets. However, the concern here is the deficit’s sustainability that should be analyzed.
ISLAMABAD: The ministry of commerce has issued guidelines for local businessmen to join Amazon – one of the world’s largest e-Commerce platform – as Pakistani seller.
(more…)KARACHI: The inflow of total foreign investment into Pakistan has surged by over 98 percent during first 10 months (July – April) 2020/2021 of the current fiscal year owing to massive investments in public debt securities.
According to data released by State Bank of Pakistan (SBP) on Friday, the total foreign investment into the country increased to $3.736 billion during first ten months of the current fiscal year as compared with $1.884 billion in the corresponding months of the last fiscal year.
The foreign public investment in debt securities has increased to $2.463 billion during the period under review as compared with the outflow of $234 million in the same period of the last fiscal year.
The foreign private investment fell by around 40 percent to $1.273 billion during first ten months of the current fiscal year as compared with $2.118 billion in the corresponding months of the last fiscal year.
The major component of foreign private investment i.e. foreign direct investment (FDI) registered a decline of 32.5 percent to $1.553 billion during July – April 2020/2021 as compared with $2.301 billion in the same period of the last fiscal year.
The other component of the foreign private investment i.e. portfolio investment in the stock market witnessed a sharp outflow of $280 million during the period under review as compared with the outflow of $182.7 million in the same period of the last fiscal year.
KARACHI: The foreign exchange reserves of the country increased by $167 million to $22.91 billion by week ended May 07, 2021, State Bank of Pakistan (SBP) said on Monday.
The foreign exchange reserves of the country were at $22.743 billion by week ended April 30, 2021.
The foreign exchange reserves held by the SBP increased by $176 million to $15.774 billion by week ended May 07, 2021 as compared with $15.598 billion by week ended April 30, 2021. The SBP attributed the weekly increase in the foreign exchange reserves to the government’s official inflows.
The foreign exchange reserves held by commercial banks eased by $9 million to $7.136 billion by week ended May 07, 2021 as compared with $7.145 million on the week ended by April 30, 2021.
JEDDAH, Saudi Arabia: Prime Minister Imran Khan met His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud in Jeddah and held wide-ranging talks on bilateral, regional and international issues. The talks were marked by exceptional cordiality and a commitment to fortify the upward trajectory in the bilateral relationship.
The Prime Minister conveyed sincere regards to the Custodian of the Two Holy Mosques, His Majesty King Salman bin Abdulaziz, and thanked the Crown Prince for his gracious invitation to him to visit the Kingdom.
The Prime Minister expressed gratitude for affording him the opportunity to visit the two Holy Mosques during the special days of Ramadan.
The two leaders reaffirmed the strong and historic bonds between the two countries rooted firmly in shared beliefs, common values, mutual trust and longstanding tradition of mutual support.
The Prime Minister reiterated Pakistan’s abiding support for the sovereignty and territorial integrity of the Kingdom, and expressed special reverence accorded to the Land of the Two Holy Mosques by the people of Pakistan.
During the meeting, it was agreed to further strengthen, deepen and diversify the existing bilateral political, economic, trade, defence and security ties.
Special emphasis was laid on increasing Saudi investments in Pakistan, collaboration in the field of energy, and increased job opportunities for Pakistanis in Saudi Arabia.
The Prime Minister appreciated the Crown Prince’s recently launched “Green Saudi Arabia and Green Middle East” initiatives and hoped to build upon the synergies between the vision of the Crown Prince and his own environment-related initiatives including the “10 Billion Trees Tsunami”.
Acknowledging the positive and constructive role of more than two million Pakistani Diaspora in the Kingdom, the two leaders discussed ways to maximize mutual benefit from cooperation in the human resource sector.
The Prime Minister thanked the Saudi leadership for taking considerate measures for the welfare of Pakistani expatriates during the COVID-19 pandemic. Views were exchanged on regional and international issues. The Prime Minister outlined his vision of a peaceful neighborhood to advance the objectives of national economic development.
Highlighting the situation in IIOJK, the Prime Minister stressed the importance of peaceful resolution of the Jammu and Kashmir dispute. The Prime Minister also highlighted Pakistan’s consistent efforts to support peace and reconciliation in Afghanistan.
The Prime Minister lauded the Crown Prince for the Kingdom’s efforts and initiatives aimed at reinforcing and further promoting regional peace and security. After the meeting, the Prime Minister and the Crown Prince signed the Agreement on Establishment of the Saudi-Pakistan Supreme Coordination Council (SPSCC). The Council, co-chaired by the Prime Minister and the Crown Prince, is designed to impart strategic direction to the development of Pakistan-Saudi relations.
The Prime Minister expressed the hope that the SPSCC will play a catalytic role in fostering enhanced bilateral cooperation in all fields.
The two leaders also witnessed signing of a number of bilateral agreements/Memoranda of Understanding (MoU), including Agreement on Cooperation in the Field of Combating Crimes; Agreement on Transfer of Convicted Individuals (Prisoners); MoU on Combating Illicit Traffic in Narcotic Drugs; Psychotropic Substances and Precursor Chemicals; and Framework MoU for financing of projects (totaling up to USD 500 million) in energy, hydropower generation, infrastructure, transport and communication and water resource development.
The Prime Minister extended an invitation to HRH the Crown Prince to visit Pakistan at the earliest convenience. Earlier, upon arrival at Jeddah airport, Prime Minister Imran Khan was received warmly by HRH Crown Prince Mohammad bin Salman.
ISLAMABAD: The Competition Commission of Pakistan (CCP) has discovered that monopoly of feed mills resulted massive increase in poultry rates at retail state.
A statement on Friday said that the nineteen poultry feed companies have been involved in price coordination and their alleged anti-competitive conduct has caused poultry feed price rise.
Poultry feed comprises approximately 75-80 percent of the cost of broiler meat and eggs. Therefore, the hike in feed prices has affected the prices of chicken and eggs, which are the most commonly consumed high protein foods. The CCP’s enquiry revealed that from December 2018 to December 2020, the feed mills colluded to raise the poultry feed prices by Rs. 825 per 50kg bag, thus making the feed 32 percent costlier for the poultry farmers.
Moreover, data from the Pakistan Bureau of Statistics (PBS) for September 2020 shows that chicken prices rose by 18.31 percent and eggs by 5.2 percent. The rise in these prices coincided with an increase in feed prices by almost Rs. 100 per bag.
In October 2020, after another price increase by poultry feed mills (by Rs.125 on layer and 175 on broiler feed), the chicken prices rose by 26.62 percent and eggs by 23.81 percent as compared to the previous month. In November 2020, poultry feed prices rose again by Rs. 150 per bag, and in this month, the prices of chicken and eggs rose by 20.76 percent and 5.23 percent. In December 2020, another price increase in poultry feed by Rs.250 per bag caused prices of chicken and eggs to rise by 3.21 percent and 14.08 percent, respectively.
The CCP took a suo motu notice of the concerns and complaints received, through the PM Citizens Portal and the CCP’s own online complaint management system, alleging that some of the leading mills in the country collusively raised poultry feed prices. The complainants also included poultry farmers whose business were hit by the costlier feed prices.
In February 2021, the CCP raided two major poultry feed producers and impounded crucial evidence pointing towards price change coordination among the feed companies. The impounded record revealed that officials of 19 feed mills were using an active WhatsApp group where one feed producer would announce its intended price increase and the rest expressing and sharing their willingness to follow suit. Price discussions included the effective date and amount of the rise. These discussions and decisions were implemented on the ground, as evidenced by the official price lists of these companies.
In a conversation thread from 07 December 2020, feed mills, while discussing price increases on the group, an official of a feed mill states: “Everyone would increase, for sure, but what’s about the exact effective date, please”. In response official of another feed mill says: “Dear all owners want immediately but seems from tomorrow”. Another feed mill representative replies: “surely w.e.f 07-12-2020”. Price lists show that on 7/8 December 2020, mills increased prices by Rs. 250 per 50 kg bag.
The enquiry also found that mills carried out price changes between December 2018 and December 2020 in a coordinated manner in short intervals at least 11 times. In addition, the data revealed that not only were price revisions made on the exact dates, but the amounts of price change were also similar.
To illustrate this pattern, on 10 October 2020, the feed mills participating in the WhatsApp group increased prices by Rs. 125 per 50 kg bag for layer and Rs. 175 per 50 kg bag for broiler feeds, on 14th/16 November 2020, by Rs. 150 per 50 kg bag on all feed rations and on 7th/8 December 2020, these mills increased prices by Rs. 250 per 50 kg bag on all rations.
An analysis of poultry input costs shows that maize, which is the primary component of feed, constitutes 55-60 percent in terms of physical usage in feed, approximately 40 percent of the cost. Maize witnessed a bumper crop in 2020 and was abundantly available.
Moreover, in FY-2019-20, maize prices fell by 7 percent compared to the previous year and in the first quarter of FY21, were 22 percent lower than 2019-20. On the other hand, soybean meal, another critical raw material, saw higher prices. However, a rise in input prices it has been witnessed cannot be used as a justification to increase feed prices uniformly as each mill has a different cost structure and business model.
Poultry feed mills are each other’s competitors, and any discussion and coordination on prices is prohibited under Section 4 of the Competition Act, 2010. Accordingly, following the findings of the enquiry report, Show Cause Notices will be issued to poultry feed companies involved in the prima facie violation of Section 4 of the Act.
KARACHI: Pakistan’s foreign exchange reserves have fell by $777 million during a week owing to repayment of government’s external debt, State Bank of Pakistan (SBP) said on Thursday.
The country’s foreign exchange reserves fell to $22.746 billion by week ended April 30, 2021 as compared with $23.52 billion a week ago ended April 23, 2021.
The official reserves of the central bank fell by $830 million to $15.598 billion by week ended April 30, 2021 as compared with $16.428 billion a week ago. The SBP said that during the week government’ commercial loan of $ 1.0billion was paid, whose impact on SBP’s reserves was partially offset by official inflows.
The foreign exchange reserves held by commercial banks however increased by $53 million to $7.145 billion as compared with $7.092 million a week ago.