Pkrevenue.com

Category: Top stories

Find top stories in this section. Pakistan Revenue brings you the latest and most important news from Pakistan and around the world, keeping you informed with key updates and insights.

  • Industry protests over 20% additional ST on electricity

    Industry protests over 20% additional ST on electricity

    KARACHI: Industry has strongly protested over imposition of 20 per cent additional sales tax on supply of electricity and said it will destroy the industrial activities and result in mass unemployment.

    Faisal Moiz Khan, President, North Karachi Association of Trade & Industry (NKATI) in a statement on Saturday expressed deep concerns over the imposition of 20 per cent additional sales tax on electricity bills by K-Electric and by strongly protested.

    He demanded the government to withdraw the increase immediately and K-Electric should be stopped from looting the industrial community.

    The imposition of additional taxes on electricity will lead to destruction and a flood of unemployment.

    In a statement, NKATI president said that 20 per cent additional sales tax has been levied on the electricity bills sent to industries by K-Electric.

    While KE is already levying 17 per cent sales tax on electricity bills, so there is no justification for imposing an additional 20 per cent sales tax.

    “Forcible collection of additional sales tax from registered consumers in sales tax is a total injustice which will increase the cost of production immensely. Which will have a very bad effect on the country’s exports and industrial production activities”, he said.

    Faisal Moiz Khan demanded the government to take notice of the imposition of 20% additional sales tax on electricity bills by K-Electric and withdraw this decision immediately and provide a conducive business and industrial environment in line with Prime Minister Imran Khan’s vision of making it easier to do business and run industries. Otherwise, it will be impossible for industrialists to run their own factories

    NKATI president further said that if the government wants industries to flourish and create more employment opportunities, then anti-business and anti-industrial measures must be avoided, so that the domestic industries can get back on their feet in the face of the dire economic situation due to COVID-19 pandemic.

  • Weekly Review: stock market likely to remain positive

    Weekly Review: stock market likely to remain positive

    KARACHI: The stock market is likely to stay positive during the next week as the IMF and Pakistan expected to reach an agreement.

    Analysts at Arif Habib Limited said that the market to remain positive in the upcoming week. With IMF and Pakistan expected to reach agreement soon, the investor sentiment is anticipated to remain buoyant.

    Moreover, with the ongoing result season, certain sectors and scrips are expected to stay under limelight.

    Keeping in view concerns over inflation and devaluation of Pak Rupee against greenback, investors are expected to have a cautious approach.

    The KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.2x (2021) compared to Asia Pac regional average of 14.7x while offering a dividend yield of ~8.1 per cent versus ~2.2 per cent offered by the region.

    The market commenced on a negative note this week given the uncertainty over outcome of Pakistan-IMF talks tagged with surge in petroleum prices raising concerns over inflation.

    The market sentiment changed after Advisor to the PM informed that talks with IMF were moving in the positive direction, with staff-level agreement expected to be reached soon.

    Alongside this, the current account deficit for September 2021 narrowed by 24.5 per cent MoM to USD 1.1 billion, fueling the positive momentum.

    On the flip, continuous drop in PKR/USD parity to PKR 174 (all time high exchange rate), reduction in SBP reserves by 8 per cent WoW to USD 17.5 billion and FATF retaining Pakistan on grey-list in its plenary meeting, kept the index in check.

    Albeit, the market closed at 45,578 points, gaining 757 points (up by 1.7 per cent) WoW.

    Sector-wise positive contributions came from i) Commercial Banks (463 points), ii) Cement (184 points), iii) Oil & Gas Exploration Companies (137 points), iv) Fertilizer (107 points), and v) Insurance (42 points).

    Whereas, sectors which contributed negatively were i) Technology & Communication (155 points), and ii) Food & Personal Care Products (31 points).

    Scrip-wise positive contributors were HBL (187 points), UBL (150 points), ENGRO (99 points), LUCK (72 points) and MCB (64 points).

    Meanwhile, scrip-wise negative contribution came from TRG (113 points), PSO (27 points) and SYS (26 points).

    Foreign selling continued this week, clocking-in at USD 7.3 million compared to a net sell of USD 13.3 million last week. Major selling was witnessed in Fertilizer (USD 4.5 million) and Commercial Banks (USD 3.8 million). On the local front, buying was reported by Insurance Companies (USD 4.6 million) followed by Other Organizations (USD 2.5 million).

    Average volumes clocked-in at 299 million shares (down by 13 per cent WoW) while average value traded settled at USD 64 million (down by 10 per cent WoW).

    Stocks end down by 243 points on political unrest
  • FBR suspends credit notes against unregistered supplies

    FBR suspends credit notes against unregistered supplies

    The Federal Board of Revenue (FBR) has stirred controversy with its recent decision to suspend credit notes against supplies made to unregistered persons, a move that has drawn strong protests from the Karachi Tax Bar Association (KTBA).

    (more…)
  • FPCCI demands replacing SBP governor

    FPCCI demands replacing SBP governor

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday demanded the government of replacing the governor of State Bank of Pakistan (SBP).

    “The business, industry and trade community of Pakistan demands a better, more competent and responsible leadership at the helm of the affairs at State Bank of Pakistan,” said Mian Nasser Hyatt Maggo, President FPCCI while criticizing irresponsible and fictitious statement by the Governor SBP on deprecating value of Pakistani Rupee and how it is benefiting Pakistan.

    FPCCI Chief said that there is no economic sense and justification in the statement that Pakistan has gained around $3 billion due to recent depreciation in Pak Rupee. He added that the ground realities are diametrically opposite than that of assertions by SBP Chief.

    Mian Nasser Hyatt Maggo emphasized that monetary policy should be devised in a manner to promote economic growth and bring stability in the economic indicators; however, monetary policy has failed to achieve any of the above.

    Nasir Khan, VP FPCCI, has said that unrelentingly depreciating exchange rate is playing a havoc with Pakistani society and the economy. This is unsustainable and the Prime Minister should intervene – in the larger national interest – immediately to arrest the slide in the value of Pak Rupee.

    Nasir Khan said that the government must address the domestic and imported inflation through its monetary and fiscal policies; instead of making lame excuses.    

    Mian Nasser Hyatt Maggo said that hardly any justification exists in continuation of the present Governor SBP. In fact, ethically speaking, he should prefer to resign himself in view of totally indefensible policy structure given by SBP.

    Mian Nasser Hyatt Maggo has also demanded a binding inquiry into the conduct of SBP in recommending sweeping tax concessions for non-resident companies to attract investments in government debt at very high rates to favor certain foreign commercial banks. The same conduct of Governor SBP is part of the history archives, when he was in Egypt.

    Dollar goes up to new closing high at Rs174
  • Digital payments continues upward trajectory: SBP

    Digital payments continues upward trajectory: SBP

    KARACHI: The State Bank of Pakistan (SBP) has said that the digital payment continued upward trajectory during fiscal year 2020/2021.

    The SBP on Friday released its Annual Payment Systems Review (PSR) for the fiscal year 2020-21, which shows strong growth in the space of digital financial transactions in the country.

    According to the SBP, transactions processed through SBP’s large-value payments segment, known as Real-time Inter-Bank Settlement Mechanism (PRISM), recorded YoY growth of 60.0 per cent by number of transactions (volume) and 12.8 per cent by value.

    Similarly, overall e-Banking transactions registered YoY growth of 31.1 per cent which highlights substantial increase in adaption of digital means for payments.

    This growth was spurred by major uptake in mobile banking (29 per cent increase in the number of users, 133.6 per cent and 178.7 per cent increase in volume and value respectively) and internet banking (32 per cent increase in the number of users, 65.1 per cent and 91.7 per cent increase in volume and value respectively).

    This promising growth was achieved on the back of 27 banks offering app-based banking along with other entities offering innovative payment solutions for accepting digital transactions.

    During FY21, digital payments adoption for retail transactions continued to show an upward trend. Due to the active efforts of the SBP, the number of card accepting POS machines saw a growth of 47 per cent. Transactions processed through POS machines reached as high as 88.8 million amounting to PKR 453.1 billion, showing YoY growth of 26.3 per cent by volume and 24.4 per cent by value of transactions.

    The same trend was reflected in e-commerce transactions as well. The number of e-commerce merchants reached 3,003 which shows double-digit growth of 76 per cent.

    Consumers carried out 21.9 million online transactions worth Rs60.6 billion on these locally registered e-Commerce Merchants during the year FY21 which amounts to significant YoY growth of 114.8 per cent and 74.1 per cent by volume and value of transactions respectively. These trends point toward healthy growth in fostering a more digitally integrated economy.

    Similarly, on the card issuance side, as on end-June 2021, there were 45.9 million total cards in circulation that mainly comprised of Debit cards (65.0 per cent), Social welfare cards (18.4 per cent), ATM only cards (12.6 per cent), Credit cards (3.7 per cent), and Prepaid cards (0.3 per cent).

    Collectively, these cards processed 708.7 million transactions amounting to Rs8.4 trillion during FY2021. The number of debit cards at the end of FY 2021 has been 29.8 million, observing a YoY growth of 11.8 per cent and annualized growth of 13.8 per cent during the last 4 years. Transactions processed through ATMs also grew to 598.7 million with the total value of Rs8.1 trillion.

    This amounts to growth of 16.9 per cent by volume and 25.6 per cent by value on YoY basis.

    The country’s core payment systems infrastructure remained operationally resilient. All channels of payment systems showed significant growth. SBP expects that going forward, the momentum of growth across all key areas of the digital payments ecosystem will continue to strengthen.

    Modernizing the country’s payment system and infrastructure is a key priority, for which SBP will continue to work on providing an enabling regulatory environment.

    Digital payment facility made must for corporate clients
  • FTO’s prompt action helps release of stuck up tractors

    FTO’s prompt action helps release of stuck up tractors

    The Federal Tax Ombudsman (FTO) has taken swift action in response to a complaint against customs authorities, addressing unnecessary delays in the clearance of a consignment. The complainant, a regular importer of Agricultural Tractors, reported that the customs authorities had unjustifiably halted the clearance of a shipment of tractors destined for use by farmers in the country.

    (more…)
  • Dollar goes up to new closing high at Rs174

    Dollar goes up to new closing high at Rs174

    KARACHI: The US dollar continued its upward trajectory in the interbank foreign exchange market on Friday, closing at Rs174. This marks a slight depreciation of the Pakistani rupee, which lost four paisas compared to the previous day’s closing rate of Rs173.96.

    (more…)
  • FBR vows to curb money laundering in real estate

    FBR vows to curb money laundering in real estate

    ISLAMABAD: The Federal Board of Revenue (FBR) has vowed to continue its efforts to stop money laundering through real estate and precious metals and stones, including gold and jewellery.

    FBR Chairman Dr. Muhammad Ashfaq Ahmed that FBR will continue implementing the AML/CFT regulations in order to curb the menace of money laundering through real estate and precious metals and stones, including gold and jewellery.

    The chairman issued the statement on the major achievement of completing actions on Designated Non-Financial Businesses and Professions (DNFBS) in the FATF action plan I just one reporting cycle and one year ahead of the deadline in September 2022.

    The Chairman FBR Dr. Muhammad Ashfaq Ahmed congratulated DG DNFBPs, Mr. Mohammad Iqbal, and his team for the tireless efforts to complete the actions on DNFBPs in a short span of three months and one year ahead of the deadlines.

    The FATF plenary in its public statement has noted that Pakistan has now satisfied the requirements of most of its action items under the 2021 action plan, ahead of deadlines and in its first reporting cycle.

    In June 2021, the FATF plenary had approved a seven actions new action plan for Pakistan, focusing on combating money laundering. This action plan contained two actions specific to DNFBPs, in particular, the real estate agents and Dealers in Precious Metals and Stones (DMPS). FBR was already designated as AML/CFT regulatory authority for real estate agents, DPMS and accountants other than those registered with ICAP and ICMAP under the Anti-Money Laundering Act, 2010, through amendments made in September 2020.

    Since the designation of FBR as the AML/CFT regulatory authority, FBR issued AML/CFT regulations for its regulated entities and also embarked upon an extensive outreach to educate and facilitate the DNFBPs on implementation of the new AML/CFT regime. A dedicated portal was made available on FBR website, which contains comprehensive guidance documents and other information for the DNFBPs. FBR also launched a customized mobile App for the registration by DNFBPs, screening the lists of proscribed /designated persons and generating Suspicious Transaction Reports (SRTs). A detailed supervisory plan was chalked out for offsite and onsite supervision of the DNFBPs.

    Since June 2021, FBR has carried out onsite inspections of a large number of DNFBPs and imposed a wide range of penalties on the delinquent entities. The real estate associations were also taken on board for the implementation of the AML/CFT obligations.

    FBR warns of action for delaying inquiry reports
  • SBP’s foreign exchange reserves fall by $1.64 billion

    SBP’s foreign exchange reserves fall by $1.64 billion

    KARACHI: The official foreign exchange reserves of the State Bank of Pakistan (SBP) sharply fell by 1.642 billion by the week ended October 15, 2021.

    The foreign exchange reserves of the central bank were $25.969 billion by the week ended October 8, 2021, the SBP said on Thursday.

    The central bank attributed the decline in foreign exchange reserves to external debt repayment, which included repayment of $1 billion against Pakistan International Sukuk.

    The total liquid foreign exchange reserves fell $1.642 billion by the week ended October 15, 2021, when compared with the previous week. The country’s foreign exchange reserves fell to $24.327 billion by the week ended October 15, 2021, as compared with $25.969 billion a week ago.

    The foreign exchange reserves held by commercial banks registered an increase of $4 million to $6.835 billion when compared with $6.831 billion a week ago.

    Foreign exchange reserves fall to $26 billion
  • FATF retains Pakistan in grey list; admits progress

    FATF retains Pakistan in grey list; admits progress

    The Financial Action Task Force (FATF) on Thursday kept Pakistan in the grey list or increased monitoring list with an acknowledgment of completing almost all the action plans.

    Pakistan has been on the grey list for deficiencies in its counter-terror financing and anti-money laundering regimes since June 2018.

    Announcing the decision, FATF President Dr Marcus Pleyer said that Pakistan had to complete two concurrent action plans with a total of 34 items. “It has now addressed or largely addressed 30 of the items,” he said.

    “Its most recent action plan from June this year, which largely focused on money laundering deficiencies, was issued after the FATF’s regional partner — the Asia Pacific Group — identified a number of serious issues.

    “Overall, Pakistan is making good progress on this new action plan. Four out of the seven items are now addressed or largely addressed.”

    He said that this included showing that financial supervisors are conducting on-site and off-site checking on non-financial sector businesses and enacting legislative amendments to improve international cooperation.

    Commenting on the action plan devised in 2018 which focused on terror financing, the FATF president said that Pakistan was still assessed to have largely addressed 26 out of 27 items.

    “Pakistan has taken a number of important steps but needs to further demonstrate that investigations and prosecutions are being pursued against the senior leadership of UN designated terror groups,” he said.

    All these changes are about helping authorities stop corruption, preventing terrorism and organized criminals from benefitting from their crimes, he said, thanking the government for their “continued strong commitment” to the process.

    Responding to a question about whether Pakistan would be blacklisted for its failure to act against those on the UN terrorism list, Dr Pleyer said that the country had completed 30 items out of 34 on two action plans.

    “This shows the clear commitment of the Pakistani government so there is no discussion on blacklisting Pakistan and the FATF urges the country to address the remaining four items,” he said, adding that the government was cooperating with the financial watchdog.

    Pakistan will remain on enhanced follow-up, and will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures. Pakistan’s fourth progress report is due 1 February 2022.

    Pakistan urges FATF to take action against Indian plot