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  • KSE-100 index down 487 points on delay in fund activation

    KSE-100 index down 487 points on delay in fund activation

    KARACHI: The stock market ended down by 487 points on Tuesday owing to delay concerns over activation of state enterprise and market opportunity fund.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,682 points as against 35,169 points showing a decline of 487 points.

    Analysts at Arif Habib Limited said that the market repeated yesterday’s episode of decline in index, which was primarily caused by concerns over delay in activation of State Enterprise & Market Opportunity Funds, MSCI and FTSE Reviews.

    Activity was slow and investors maintained cautious stance.

    Selling pressure was mainly observed in Banks and E&P Sector, which spread to Cement sector by the end of session.

    Cement sector saw price gains on the back of another increase of Rs15-20 in price / bag, which couldn’t sustain selling pressure. MLCF, which topped the volumes chart, ended 5 percent down.

    Overall, Cement sector led the volumes with 28M shares, followed by Technology stocks (mainly TRG).

    Sectors contributing to the performance include Banks (-79 points), Fertilizer (-76 points), E&P (-65 points), Cement (-59 points), O&GMCs (-55 points).

    Volumes declined further from 128mn shares to 104mn shares (-19 percent DoD). Average traded value also declined by 19 percent to reach US$ 257mn as against US$ 31.6mn.

    Stocks that contributed significantly to the volumes include MLCF, TRG, PIBTL, KEL and EPCL, which formed 35 percent of total volumes.

    Stocks that contributed positively include PAKT (+6 points), OGDC (+5 points), GATM (+3 points), AICL (+2 points) and AGP (+2 points). Stocks that contributed negatively include MCB (-31 points), PPL (-28 points), MARI (-26 points), NESTLE (-23 points) and FFC (-23 points).

  • Rupee recovers 15 paisas on SBP governor briefing

    Rupee recovers 15 paisas on SBP governor briefing

    KARACHI: The Pak Rupee recovered 15 paisas against dollar on Tuesday day after the press conference of the governor of State Bank of Pakistan (SBP) for clarifying many issues about the economy.

    The rupee ended Rs156.81 to the dollar from previous day’s closing of Rs156.96 in interbank foreign exchange market.

    The foreign exchange market was initiated in the range of Rs156.60 and Rs156.90. The market witnessed day high of Rs156.85 and low of Rs156.40 and closed Rs156.81.

    A day earlier SBP governor Reza Baqir conducted a press briefing and clarified many issues pertaining to the economy, which boosted the confidence in the market.

    The exchange rate in the open market was remained unchanged.

    The buying and selling of the dollar was recorded at Rs155.50/Rs156.50 same previous day’s closing in cash ready market.

  • FBR sets up Finance Bill 2019 anamoly committee

    FBR sets up Finance Bill 2019 anamoly committee

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted an anamoly committee comprising tax professionals to identify legal flaws in Finance Bill 2019.

    Ashfaq Tola has been nominated chairman of the committee. Hamid Atiq Sarwar, Member IR Policy, FBR has been nominated as vice chairman.

    Other members of the committee are included: Abid Shaban, Zia Awan, Muhammad Awais, Asif Haroon, Abdul Qadir Memon, Amer Javed, Iftikhar Taj and Muhammad Rafique.

    The committee shall it’s report on June 21, 2019.

  • Import Policy Order 2016 amended: SRO 604 issued for solar panels, equipments

    Import Policy Order 2016 amended: SRO 604 issued for solar panels, equipments

    ISLAMABAD: The ministry of commerce on Monday amended Import Policy Order, 2016 to describe conditions for import of solar energy panels and related equipments into Pakistan, according to a notification made available to PkRevenue.com.

    The ministry issued SRO 604(I)/2019 to amend the import policy order. The SRO amended the Appendix-B related to procedural requirement of following items with Pakistan Customs Tariff (PCT) code and description of commodity:

    8541.4000: Solar Photovoltaic cells whether or not assembled in modules or made up into panels (Crystalline Type/ Thin Film) Solar PV Test equipment for system performance testing.

    8504.4090: Inverter for use with solar PV system. Common for all PV inverters (off-gird/Hybrid/on-gird.

    9032.8990: Charge Controllers for use solar PV systems Balance of system components for Photovoltaic systems.

    8501.3110: Off-gird/Standalone solar photovoltaic generators consisting of panels of photocells combined with other apparatus / Solar PV Homes System / Solar Kits.

    8501.3210: Off-Grid/ standalone solar photovoltaic generators consisting of panels of photocells combined with other apparatus / Solar PV Homes Systems/ Solar Kits

    8503.0010: Parts suitable for use solely or principally with the machines of heading 8501.3110 and 8501.3210

    8503.0020: Parts suitable for use solely or principally with the machines of heading 8501.3110 and 8501.3210

    8503.0090: Pats suitable for use solely or principally with the machines of heading 8501.3110 and 8501.3210 – others.

    8538.9090: Junction Box with covers for solar panels.

    8544.6090: Insulated (including enameled or anodized electric wire, cables (including con-axial cable) and other insulated conductors, whether or not fitted with connectors for use in photovoltaic systems.

    8413.7090: Solar Photovoltaic pumping system for liquids.

    8419.1900: Solar Water Heaters with accessories

    7321.1190: Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, rings, plate non-electric domestic appliances and parts thereof running on solar.

    For the import of above solar system equipments the ministry has defined the conditions, included:

    Importable subject to compliance with the quality and safety standards approved by Pakistan Standards and Quality Control Authority (PSQCA) as given in Appendix N:

    i. Provided that the test report shall be issued by accredited laboratory in the country of origin or exporting country for the scope of testing/ calibration, in accordance with the requirements of ISO/IEC 17025, General requirements for the competence of testing and calibration laboratories.

    ii. Provided further that the certificate of conformance (CoC) shall be issued by accredited product certification body in the country of origin of exporting country for the type of certification in accordance with the requirements of ISO/IEC 17065, Conformity assessment – Requirements for bodies certifying products and services.

    iii. Provided also further that the PSI report shall be issued by accredited inspection body in the country of origin or exporting country for the type of inspections, in accordance with the requirements of ISO/IEC 17020, General criteria for the operation of various types of bodies performing inspection.

    iv. Provided further that the accreditation of the above mentioned conformity assessment bodies shall be issued by the Accredited Body (AB), operating in accordance with ISO/IEC 17011, General requirements for accreditation bodies accrediting conformity assessment bodies.

    The SRO also amended Appendix H related to the list of pre-shipment inspection companies. According to the amendment:

    g. The pre-shipment inspection companies as approved by Pakistan National Accreditation Council (PNAC) for the inspection of solar equipment (including but not limited to solar PV system, off-girds/standalone solar PV systems, solar PV kits, solar PV panels, solar PV cells, inverters, charge controllers, balance of system components for PV systems, low-voltage switchgear and control gear assemblies, power converters for use in PV power systems, insulated cables for use in PV systems, solar pumping systems for liquids, solar water heaters with accessories, solar stoves/ cookers/ ranges, etc. and parts thereof.

    The SRO also amended the Appendix N related to list of compulsory items to meet Pakistan Standards at import stage.

    Following items have been added to the list with HS code and subject:

    8541.4000:

    Solar PV Module IEC: 61730-1

    Solar PV Module – Crystalline Type IEC: 61730-2, IEC:61215-1

    Solar PV Module – Thin Film (CdTe Based) IEC: 61215

    Solar PV Module – Thin Film (amorphous silicon based), IEC: 61730-1, IEC: 61730-2

    Solar PV Module – Thin Film (In, GA based) IEC: 61730-1, IEC: 61730-2

    PV Test Equipment for system performance testing

    Photovoltaic Concentrator (CPV)

    Solar PV standalone systems (including AC or DC off-grid systems)

    8504.4090:

    Inverter for use with solar PV system. Common for all PV inverters (off-grid/hybrid/on-gird)

    Inverters for use with solar PV on-grid system only

    Inverter testing equipment

    Charge controllers for use with solar PV system

    Balance of system components for photovoltaic systems

    Low voltage switchgear and control gear assemblies

    Power converters for use in photovoltaic power assemblies

    Power converters for use in photovoltaic power system

    8501.3110/8501.3210:

    Off-grid/standalone solar PV Home Systems/ Solar Kits

    8503.0010/8503.0020/8503.0090:

    Electronic equipment and parts suitable for use in solar PV power installations

    8538.9090: Junction Box with covers for solar panels

    8544.6090: Electric cables for photovoltaic systems

    8413.7090: Solar PV Pumping System Design qualification and performance measurements

    8419.1900:

    Solar Water Heaters, Solar heading – Domestic water heating systems

    Solar water heater for dwellings based on JIS 4111

    Solar Storage tank based on JIS 4113

    Solar water heaters – elastomeric materials for absorbers, connecting pipes and fittings

    Thermal performance of glazed liquid heating collectors including pressure drop.

    Thermal solar system and components: factor made systems.

    Thermal solar system and components: collectors.

    Solar energy – Water heating systems

    7321.1190:

    Solar cooker – Box Type: requirements

    Solar cooker – Box Type: components

  • Last date for asset declaration scheme not to be extended: Member IR

    Last date for asset declaration scheme not to be extended: Member IR

    KARACHI: Ms. Seema Shakil, Member Inland Revenue (Operations), Federal Board of Revenue (FBR) on Monday said that date for asset declaration scheme will not be extended due to obligations under IMF loan program.

    “The last date for availing asset declaration scheme is June 30, 2019. There will be no further extension in the last date as the IMF loan program will commence from July 01,” the member said at an even organized by Karachi Tax Bar Association (KTBA).

    She said that present scheme was bargained with the IMF in order to provide people declare their undisclosed cash, assets and supplies before the tax machinery launch massive crackdown.

    Ms. Seema Shakil said that the asset declaration scheme had been launched within short span of 8 to nine months considering bulk of information of Pakistanis having offshore investments received. Besides, information under OECD treaty has also been received to the authorities.

    Further, the FBR notified rules for Benami laws in February 2019 empowering authorities to take action against people having assets in some other names.

    It was demand from the stakeholders to allow such scheme before any harsh action. She said that it was unfair to take action without giving opportunity.

    On the occasion, Zeeshan Merchant, former vice president, KTBA highlighted the major points of the asset declaration scheme.

    He said that the scheme was expiring on June 30, 2019 and people were still trying to understand it.

    He urged the tax authorities to extend the last date for availing the scheme as much of the time had lapsed due to Eid holidays.

    Abdul Qadir Memon, President, Pakistan Tax Bar Association, Rehan Siddiqui, President, KTBA and other senior official of FBR were also present on the occasion.

  • Powers to form Customs tribunal shifted to Prime Minister

    Powers to form Customs tribunal shifted to Prime Minister

    KARACHI: The Finance Bill 2019 has proposed to shift the powers to form Customs Appellate Tribunal from the federal government to the Prime Minister.

    According to interpretation by EY Ford Rhodes Chartered Accountants Firm, the Finance Bill 2019 sees to substitute Section 194 of Customs Act, 1969, which empowers the federal government to form, regulate and conduct the affairs of the Appellate Tribunal.

    “The Bill seeks to shift these powers to the Prime Minister,” it added.

    The Appellate Tribunal shall consist of a Chairman, judicial and accountant members.

    The terms and conditions of appointment of the chairman and judicial and technical members (this may be referred to accountant members) are proposed to be determined by the Prime Minister.

    Further, the appointment of a technical member shall be for a period of two years. The Bill seeks to explain the criteria for appointment of judicial members and accountant members as under:

    A judicial member of the Appellate Tribunal shall be appointed, unless such person:

    (a) has been a judge of a High Court;

    (b) has exercised the powers of a District Judge and is qualified to be a judge of the High Court; or

    (c) is or has been an advocate of a High Court and is qualified to be appointed as a judge of a High Court:

    Further, the person who is or has been an advocate of High Court shall not be appointed as judicial member unless selected in accordance with the Civil Servants Act, 1973 (LXXI of 1973) and the Federal Public Service Commission Ordinance, 1977 (XLV of 1977).

    An accountant member of the Appellate Tribunal shall be appointed, unless such person:

    (a) is an officer of Pakistan Customs Service equivalent in rank to the Member of FBR or Chief Collector of Customs or Director General; or

    (b) is a Collector or Director or Chief of the FBR having at least three years’ experience in that position.

  • Adjudicating monetary limits of principal appraisers, superintendents enhanced

    Adjudicating monetary limits of principal appraisers, superintendents enhanced

    KARACHI: The government has enhanced monetary threshold of principal appraisers and superintendents for adjudication with condition of reducing time limit to 90 days for deciding cases.

    Through Finance Bill 2019, it has been proposed to redefine the monetary threshold of the officers of customs for adjudication. The bill also proposed to abolish the power of assistance collector in adjudicating matters.

    According to budget commentary of EY Ford Rhodes, the following powers of adjudication have been proposed as compared with existing powers:

    Power of adjudication

    Under Section 179 of Customs Act, 1969

    (i) Collector: No limit – No change in present power

    (ii) Additional Collector: Not exceeding three million rupees – No change in present power

    (iii) Deputy Collector: Not exceeding one million rupees – No change in existing power

    (iv) Assistant Collector: Not exceeding five hundred thousand rupees: the power of assistance collector proposed to be deleted

    (v) Superintendent: Not exceeding fifty thousand rupees: proposed that it should not exceeding one hundred thousand rupees

    (vi) Principal Appraiser: Not exceeding fifty thousand rupees: it is proposed it should not exceeding one hundred thousand rupees.

    The Finance Bill further seeks to reduce the time period to decide the cases within ninety days instead of existing one hundred and twenty days.

  • Commission directed to submit privatization proposals for Steel Mills

    Commission directed to submit privatization proposals for Steel Mills

    ISLAMABAD: Cabinet Committee on Privatization (CCoP) on Monday directed Ministry of Industries and Production and Privatization Commission to present proposals for the privatization of Pakistan Steel Mills.

    Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh, chaired meeting of CCoP.

    The committee discussed the privatization of Pakistan Steel Mills.

    While presenting the report of the task force on energy reform, the Ministry of Energy briefed the Committee about the challenges being faced by the DISCOs.

    Various measures recommended by the task force for improving the performance of energy sector with a focus on reduction of losses and enhancing the efficiency of DISCOs were discussed during the meeting.

    The Committee directed the Ministry of Energy to submit proposals aimed at accelerating closure of those GENCOs that have outlived their recommended life and are running into losses. Issue of delisting of House Building Finance Corporation Ltd (HBFC) from the privatization list was also recommended to be presented in the next meeting.

    The Meeting was attended by the Federal Minister for Privatization, Muhammad Mian Soomro, Adviser on Commerce, Textile, Industry and Production and Investment, Abdul Razak Dawood, various Federal Secretaries and senior officials of the government of Pakistan.

  • Demand, supply to decide dollar rate: SBP governor

    Demand, supply to decide dollar rate: SBP governor

    KARACHI: The demand and supply will decide the rate of US dollar, Reza Baqir, Governor, State Bank of Pakistan (SBP) said on Monday in his maiden press conference.

    “Let the market decide the dollar rate,” he said while replying to questions regarding exchange rate.

    He said that there were impacts of high inflation while increasing exchange rate. On the other hand if exchange rates are maintained then it will result in high debts, he added.

    At present the exchange rate is being decided by the market and it help in improving the indicators, the SBP governor said.

    The governor said that by controlling the exchange rate the imports had been reduced. He said that current account deficit had been reduced significantly. The deficit was at $19.8 billion. The deficit has been narrowed to $13 billion so far in the current fiscal year.

    He said that exchange rate was improved before Eid ul Fitr due to better inflows. However, payment pressure from corporate sector has against pressurized the local currency, he added.

    The SBP governor said that the economic team is bringing improving in the country.

    He said that in the past such budgets were presented which had failed to yield results.

    However, in the current budget relief measures have been announced under social protection program.

    Talking about the IMF program and its conditionalities, he said that people should wait till July 03, 2019 and after that all the documents related to fund programs would be made public.

  • KCCI seeks three month deferment for implementing unregistered buyers’ details

    KCCI seeks three month deferment for implementing unregistered buyers’ details

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday urged the government to defer implementation of obtaining information of unregistered buyers.

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