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  • Stock market gains 104 points amid selling pressure

    Stock market gains 104 points amid selling pressure

    KARACHI: The stock market gained 104 points on Wednesday amid profit booking in scripts of many sectors.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,805 points as against 37,700 points showing an increase of 104 points.

    Analysts at Arif Habib Limited said that the market traded in a similar fashion as yesterday, whereby cement, fertilizer, banks saw profit booking / selling pressure, which was counterweighed by index heavy weights HUBC, ENGRO.

    Today MCB, HBL and Cement sector stocks (particularly LUCK) saved the day. ECC’s approval of Funds for construction sector gave Cement sector the reason to trade.

    International crude oil prices increased over the day, which helped E&P stocks staged recovery. Cement sector topped the volumes with 59.8 million shares, followed by O&GMCs (46.6 million) and Technology (40.2 million).

    Among scrips, HASCOL realized trading volumes of 21.2 million, followed by UNITY (20 million) and AGL (19.2 million).

    Sectors contributing to the performance include Cement (+79 points), Autos (+40 points), O&GMCs (+26 points), E&P (+20 points), Power (-37 points), Fertilizer (-25 points) and Insurance (-15 points).

    Volumes declined from 457.2 million shares to 405.5 million shares (-11 percent DoD). Average trade value also declined by 9 percent to reach US$ 106.2 million as against US$ 116.5 million.

    Stocks that contributed significantly to the volumes include HASCOL, UNITY, AGL, FCCL and MLCF, which formed 24 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+71 points), MTL (+28 points), PSO (+18 points), MCB (+16 points) and HBL (+14 points). Stocks that contributed negatively include HUBC (-35 points), UBL (-34 points), ENGRO (-16 points), TRG (-11 points), and EFUG (-8 points).

  • Rupee gains 27 paisas against dollar on improved inflows

    Rupee gains 27 paisas against dollar on improved inflows

    KARACHI: The Pak Rupee gained 27 paisas against dollar on Wednesday owing to improved inflows of export receipts and remittances.

    The rupee ended Rs167.63 to the dollar from previous day’s closing of Rs167.90 in interbank foreign exchange market.

    Currency experts said that improved inflows of export receipts and remittances helped the rupee to gain the value.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Capital gain tax to be collected on July 30: NCCPL

    Capital gain tax to be collected on July 30: NCCPL

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday announced to collect capital gain tax for month of June 2020 on July 30, 2020.

    The NCCPL in a statement said that the aggregate amount of CGT arising on disposal of shares at Pakistan Stock Exchange for the period June 01, 2020 to June 30, 2020, would be collected on Thursday July 30, 2020 through respective settling banks of the clearing members, along with refund or adjustments on the basis of amount collected up to previous month.

    All Clearing Members are advised to ensure requisite amount in their respective settling bank’s account.

    Necessary details and reports for the said period have already been made available in the CGT System, the NCCPL said.

    Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period June 01, 2020 to June 30, 2020, would also be collected from the Pakistan Mercantile Exchange on Thursday July 30, 2020. Necessary details and reports for the said period have already been made available.

    Moreover, the aggregate amount of CGT arising on redemption of units of open end mutual funds have also been finalized for the period June 01, 2020 to June 30, 2020. Necessary details and reports have already been made available in the CGT System.

    The NCCPL further said that consequent to amendments introduced in section 37 A pertaining to adjustment of carry forward of losses for three years, net capital gains as on June 30, 2020 has been adjusted with net capital loss as on June 30, 2019 and accordingly any CGT collected thereon if any, shall be refunded/adjusted.

  • Banks, exchange companies no more required to give details of remittances sent abroad for education

    Banks, exchange companies no more required to give details of remittances sent abroad for education

    ISLAMABAD: Federal Board of Revenue (FBR) shall not ask banks and exchange companies to provide details of persons sending remittances abroad related to education.

    Through Finance Act, 2020, the Section 236R of Income Tax Ordinance, 2001 has been omitted. This section was introduced for collection of advance tax on education related expenses remitted abroad.

    This section was introduced through Finance Act 2015 under which banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax at the rate of five percent from the payer of education related expenses.

    Tax collected under the section was adjustable against the income of the person remitting payment of education related expenses.

    The section defined “education related expenses” as tuition fee, boarding and lodging expenses, any payment for distant learning to any institution or university in a foreign country and any other expense related or attributable to foreign education.

    This section was an important source of gathering information of those persons having taxable income in Pakistan and sending foreign exchange abroad taking advantage of education expenses.

    Under Section 165 of Income Tax Ordinance, 2001, withholding agents are required to provide details of persons including CNIC, NTN and addresses, whose tax was deducted at the time of transaction.

    However, deletion of this section the banks and exchange companies would no more required to share details of persons who are sending foreign exchange abroad for education related expenses.

  • FBR promotes 106 IRS officers to BS-18

    FBR promotes 106 IRS officers to BS-18

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday promoted 106 officials of Inland Revenue Service (IRS) to BS-18 on regular basis and acting charge basis with immediate effect.

    The following BS-17 officers of IRS are promoted to BS-18 on regular basis with immediate effect:-

    1. Ms. Sadeea Nadeem

    2. Ali Ahsan Warraich

    3. Ms. Mahwash Sami *

    4. Muhammad Hussain Shah

    5. Muhammad Zeeshan

    6. Ms. Alvina Fatima

    7. Ms. Kiran Zahra

    8. Ms. Alia Khurshid

    9. Amir Yasin

    10. Ms. Madiha Batool

    11. Ms. Saira Khan

    12. Amir Aslam

    13. Ms. Seemab Zafar

    14. Ms. Sana Ghous

    15. Ms. Angel David

    16. Ms. Romesa Tahir

    17. Arsalan Khan

    18. Hammad Hussain Jaffari

    19. Syed Faizan Ali Zaidi

    20. Muhammad Mauz Zafar

    21. Muhammad Hussnain Shamim

    22. Usman Azam Bhatti

    23. Ghulam Hussain Yassir

    24. Malik Samiullah Khan *

    25. Faizan Ahmad

    26. Ms. Anum Tahir

    27. Muhammad Naveed

    28. Gobind Kumar

    29. Adnan Jabbar

    30. Zahoor Ahmad

    31. Waseem Ahmed

    32. Ms. Shaista

    33. Waqar Ahmed

    34. Ghufran Syed

    35. Muhammad Nasir Javid *

    36. Dr. Aneela Javed Gondal *

    37. Syed Nasir Jamal Shah

    38. Mohsin Ihsan

    39. Ms. Rosheen Hussain Syed

    40. Muhammad Qamar Minhas

    41. Ejaz Qaisar

    42. Akhtar Saleem

    43. Kamran Shahab

    44. Usman Sadiq

    45. Muhammad Kashif Ahmad

    46. Muhammad Siddique

    47. Khawar Yaqoob

    48. Muhammad Ansir Ali khan

    49. Talib Hussain

    50. Suhbat Ali Sahto

    51. Shahid Nawaz

    52. Syed Abaid ur Rehman

    53. Atif Nawaz Warriach

    54. Muhammad Nadeem Asad

    55. Muhammad Shah Jahan Durrani

    56. Ms. Hina Mustafa

    57. Wazir Ahmad Khushik

    58. Zufiqar Ali Memon

    59. Javed Alam

    60. Anees Ahmad

    61. Ms. Tabinda Shaheen

    62. Roshan Ali

    63. Ms. Sorath Sadiq Chandio

    64. Muhammad Jamshed Khan

    65. Muhammad Naeem Afzal Khan

    66. Sanaullah

    67. Abdul Waheed Awan

    The FBR said that the officers shall actualize their regular promotion to BS-18 at their present place of posting.

    The officers at Sr. Nos. 03, 24, 35 & 36 will actualize their promotion to BS-18 from the date they return from deputation and join FBR (Hq), Islamabad.

    The following BS-17 officers of Inland Revenue Services are appointed in BS-18 on acting charge basis with immediate effect:-

    1. Hayat Omer Malik

    2. Ms. Tooba Ahmed Khan

    3. Ms. Saman Zahra

    4. Ms. Bushra Ranjha

    5. Ahmad Faiz

    6. Ms. Mehak Fatima

    7. Ms. Namra Ijaz

    8. Ms. Fatima Anjum

    9. Ray Muhammad Najam Nawaz Saqib

    10. Ms. Shahida Nazeer

    11. Muhammad Naeem Orakzai

    12. Ms. Rafia Nawaz Ranjha

    13. Usama Amin

    14. Ms. Komal Altaf

    15. Ms. Maheen Ali

    16. Ms. Rabia Haider Bokhari

    17. Kamran Hussain

    18. Muhammad Safian Adeel

    19. Sohail Anjum

    20. Ms. Farah Khan

    21. Shahzad Akbar

    22. Ms. Mehreen Yousaf

    23. Ali Raza Gilani

    24. Najam-ul-Hassan

    25. Ms. Sania Makhdoom

    26. Khan Muhammad

    27. Aamir Hussain

    28. Ali Khalid

    29. Ms. Samayya Qayyum

    30. Ms. Javeria Hayat

    31. Ms. Amna Sharif *

    32. Arsalan Ali

    33. Abdullah Zulfiqar

    34. Abdul Baseer Khan Khattak

    35. Ms. Sanam Rasool

    36. Ahmad Taimoor

    37. Usman Asif

    38. Rizwan Manzoor *

    39. Ms. Aqsa Gharshin

    The above officers shall actualize their appointment in BS-18 on acting charge at their present place of posting.

    The officers at Sr. Nos. 31 & 38 will actualize their appointment from the date they return from deputation and join FBR (Hq), Islamabad.

  • FBR abolishes regulatory duty on wheat import

    FBR abolishes regulatory duty on wheat import

    ISALAMABAD: Federal Board of Revenue (FBR) on Tuesday abolished regulatory duty on import of wheat in order to bring down domestic price of the commodity.

    The FBR issued SRO 633(I)/2020 in order to amend SRO 6809I)/2019 dated June 28, 2019.

    Through the SRO the FBR reduced the regulatory duty to zero from 60 percent.

    FBR sources said that the decision to abolish the regulatory duty was take to encourage import of the commodity in order to ensure buffer stock at home and maintain retail price at lower side.

  • Equity market gains 50 points in range bound trading

    Equity market gains 50 points in range bound trading

    The equity market in Pakistan witnessed a modest gain of 50 points on Tuesday, characterized by mixed trading activities throughout the day. The benchmark KSE-100 index of the Pakistan Stock Exchange closed at 37,700 points, exhibiting an increase from the previous closing level of 37,651 points.

    (more…)
  • Rupee recovers 40 paisas against dollar on shrinking CAD

    Rupee recovers 40 paisas against dollar on shrinking CAD

    KARACHI: The Pak Rupee recovered 40 paisas against dollar on Tuesday owing to significant reduction in current account deficit (CAD) and lower demand for import payments.

    The rupee ended Rs167.90 to the dollar from previous day’s closing of Rs168.30 in interbank foreign exchange market.

    Currency experts said that sharp contraction in annual current account deficit reported by State Bank of Pakistan (SBP) helped the rupee to recover.

    Further the lower import payment demand also helped the rupee to appreciate value.

    On the other hand workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • FPCCI expresses concerns over grant of huge exemptions to FTAs, PTAs

    FPCCI expresses concerns over grant of huge exemptions to FTAs, PTAs

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over huge amount of exemptions, concessions granted under Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTA).

    The apex trade body urged the government to redesign the FTAs and PTAs with a view to promote the domestic industry of Pakistan, as the government has suffered revenue loss of over Rs45 billion during FY 2019-20 due to these agreements signed with different countries.

    Moreover, the general exemption on imports from China under this agreement has caused revenue loss of Rs 26.86 billion during this period.

    FPCCI President Mian Anjum Nisar suggested that Pakistan should have entered into Free Trade Agreements and Preferential Trade Agreements with only those countries where it has a clear and mutual competitive advantage.

    He recommended the government to include maximum finished goods which can be exported to China on tariff line offered by China to ASEAN countries.

    He demanded that the concerned stakeholders should also be taken on board while framing and finalizing the recommendations in this regard.

    Referring to the data of the Federal Board of Revenue, he stated that the government has suffered revenue loss of Rs 45.020 billion during current fiscal year due to the FTAs and PTAs signed with different countries.

    According to the reports, figures reveal that the general exemption on import from SAARC countries caused revenue loss of Rs 231 million during this period.

    The general exemption on import from SAARC countries under SAFTA Agreement has revenue impact of Rs1.602 billion.

    Similarly, the general exemption on import from SAARC countries under SAFTA Agreement caused revenue loss of Rs 15 million.

    The general exemption on import from China under the FTA has revenue impact of Rs6.911 billion during 2019-20.

    The general exemption on import from Malaysia under PTA caused revenue loss of Rs 2.517 billion during this period. Under the exemption on import from Indonesia under Pak-Indonesia PTA caused revenue loss of Rs3.65 billion.

    Mian Anjum Nisar suggested the government to devise a strategy in the light of impact on domestic industry, convincing other countries to liberalize their import policy by reducing tariff lines and easing sensitive list for Pakistan merchandise.

    He said that during the first phase of FTA with China, Pakistan’s trade deficit had improved from 2.9 billion dollar to over 12 billion dollars over the last decade.

    He suggested that Pakistan should have entered into Free Trade Agreements and Preferential Trade Agreements with only those countries where it has a clear and mutual competitive advantage.

    FPCCI President said that local cost of production is already high on account of high tariff of electricity and gas, coupled with import duties on inputs, making the local production uncompetitive.

    He said that Free Trade Agreements signed with different countries without taking the real stakeholders onboard, are damaging the local industry, as imports of several products under FTA with these countries are subject to zero percent import duty.

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