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  • KSE-100 falls by 242 points on concerns over economy in IMF program

    KSE-100 falls by 242 points on concerns over economy in IMF program

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 242 points on Tuesday due to concerns over economic condition in post IMF program.

    The share market closed at 36,784 points as against 37,026 points showing a decline of 242 points.

    Analyst at Next Capital Limited said that the stock market plunged amid growing concerns on economy post IMF program and concerns over additional taxes to be implemented in the upcoming budget.

    As per news reports, Pakistan and IMF have launched the final round of talks over the $8 billion bailout package for Islamabad, a deal that’s expected to be signed next month.

    The round started on Monday in the capital and is expected to last till May 7.

    Market participation for the 100 index decreased to 82.5 million shares from 132.4 million shares in the previous session (-37.7 percent on d/d basis).

    Major contribution to total market volume came from UNITY, PAEL, and BOP churning 28.0 million shares out of the total market volume of 110.6 million shares.

    Daily traded value for the 100 index decreased to USD28.2 million from USD38.2 million in the previous session.

    Analysts at Topline Securities said that the index extended losses for the second consecutive day as investors remained wary on upcoming events like Budget and Amnesty Scheme.

    Further, IMF technical team is also in town till May 07, which is likely to dictate key revenue measures for upcoming federal budget.

    Consequently, index lost 0.65 percent today, closing at 36,784.

    During the outgoing month, Index lost 4.8 percent – worst April month in last 14 years.

    E&Ps, Cements, and Banking sector remained top laggards with deletion of 887 points from the index.

    Investors sentiments in E&Ps were affected after offshore drilling hit a snag, while cement sector remained under pressure due to slippage in cement prices as difference of opinion still prevails among manufacturers over uniform pricing.

    Volumetric activity witnessed rise of 33 percent MoM, similarly value was up 9 percent MoM.

  • DISCOs publish list of defaulters above Rs1 million

    DISCOs publish list of defaulters above Rs1 million

    ISLAMABAD: Power Distribution Companies (DISCOs) have published the list of defaulters above Rs 1 million on their website, said a statement on Tuesday.

    It said that on directions of Power Division, the lists of electricity dues defaulters above Rs1 million have been published on the websites of concerned DISCOs.

    An operation against these defaulters is also in full swing. Electricity connections of the running and dead/disconnected defaulters against whom more than Rs 1 million are outstanding in lieu of electricity charges their connections are being disconnected.

    All lists of these defaulters are also published on the website of Power Information Technology Company (PITC) and can be accessed at pitc.com.pk/index.php/defaulters-list.

  • FPCCI deplores ignoring national chamber at China visit

    FPCCI deplores ignoring national chamber at China visit

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the ministry of commerce for ignoring the apex trade body at the recent important visit of Prime Minister Imran Khan to China.

    President FPCCI Engr. Daroo Khan Achakzai regretted that the ministry of commerce specially the Advisor to Prime Minister on Commerce for not helping the Prime Minister and wasting all his efforts due to their attitude and disconnect with the business community.

    In a statement on Tuesday, he cited an example that during the recent important visit of the Prime Minister to China, MOC arranged Pakistan business forum and B2B meetings between Pakistani and Chinese businessmen.

    “It was surprising that Pakistan Business Council (PBC) represented the business community of Pakistan at this important forum.”

    PBC is a non-elected body of few elite businessmen originally formed under the patronage of present Advisor to PM on Commerce and Industry.

    PBC Irrespective of its Professional merits or demerits, it cannot be a substitute to the democratically elected representatives of business community FPCCI, the national chamber of the country, but somehow the unjustified patronage of Advisor to PM has given it a more prominent role in shaping the trade and economic policies, whereas genuine stakeholders have been sidelined.

    This has resulted in deterioration of Business confidence as the policies are formulated more on intellectual ideas of few instead of input of ground realities based on input from the real stakeholders. Such policies would not help the Government to come out of its present crisis.

    The FPCCI president praised the recent achievements of the Prime Minister during his visit to China. The Signing of FTA-II and ML-1 projects will go a long way in bringing up Country’s economy.

    He said that the vision and hard work of PM is unprecedented in the history of the Country. His five points agenda of at OBR forum of mitigating climate change, establishing a BRI tourism corridor for promoting people-to-people contacts inter-cultural understanding, anti-corruption cooperation, poverty alleviation fund, and further liberalizing trade and investment flows by encouraging private sector and businesses is revolutionary ideas and were appreciated at all levels.

    Unfortunately he has inherited an economy, which is very difficult to manage, and he faces gigantic task to stabilize this. The business community has always resolved support for the Prime Minister in his efforts.

    It is worth mentioning that while Country’s own Ministry of Commerce ignored FPCCI, the apex trade body of the Country while the Councils of Promotion of International Trade (CCPIT) of Chongqing, Tianjin and Xin Jiang Provinces met the President of FPCCI and immediately signed MoUs with him during the Belt and Road Forum at Beijing thus recognizing the importance of the elected representative of the business community.

    President FPCCI has urged the Prime Minister that his hard work and vision will only yield fruitful results, when his team will take the entire business community into confidence instead of patronizing few.

    He requested the prime minister to direct all concerned trade, investment, economic Ministries and departments to engage the elected bodies of Business community specially FPCCI for their input on all economic issues and give weightage to their nominations for advisory and consultative bodies, trade delegations and important forums abroad.

  • Rupee makes gain against dollar

    Rupee makes gain against dollar

    KARACHI: The Pak Rupee made gain against dollar on Tuesday after maintaining levels for 11 consecutive days.

    The rupee ended at Rs141.39 to the dollar from previous day’s closing of Rs141.40 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs141.39 and Rs141.40.

    The market recorded a high of Rs141.398 and low of Rs141.39 and closed at Rs141.39.

    Currency experts said that the market was remained range bound and buyers were eying on the talks between Pakistan and IMF for the new loan program.

    The exchange rate in open market was remained unchanged.

    The buying and selling of dollar was recorded at Rs141.80/Rs142.30, the same previous day’s closing, in cash ready market.

  • ExxonMobil chief discusses offshore drilling with minister

    ExxonMobil chief discusses offshore drilling with minister

    ISLAMABAD: Chairman of ExxonMobil, Alex Volkov with his team met Ali Haider Zaidi, Minister for Maritime Affairs here on Tuesday.
    In a tweet message by the minister stated that productive discussions took place on the LNG requirements in Pakistan and the offshore drilling project off the coast of Karachi.

  • Sales Tax Act, 1990: FBR may posts IR officer to business premises

    Sales Tax Act, 1990: FBR may posts IR officer to business premises

    KARACHI: Federal Board of Revenue (FBR) may post an officer of Inland Revenue to the premises of a registered taxpayer to monitor sale, purchase and production activities.

    The Section 40 of updated Sales Tax Act, 1990 explained the powers of FBR and Inland Revenue officers under the law.

    Section 40: Searches under warrant

    Sub-Section (1): Where any officer of Inland Revenue has reason to believe that any documents or things which in his opinion, may be useful for, or relevant to, any proceedings under this Act are kept in any place, he may after obtaining a warrant from the magistrate, enter that place and cause a search to be made at any time.

    2) The search made in his presence under sub-section (1) shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898).

    Section 40B: Posting of Inland Revenue Officer

    Subject to such conditions and restrictions, as deemed fit to impose, the Board, may post Officer of Inland Revenue to the premises of registered person or class of such persons to monitor production, sale of taxable goods and the stock position.

    Section 40C: Monitoring or Tracking by Electronic or other means

    Sub-Section (1): Subject to such conditions, restrictions, and procedures, as it may being fit to impose or specified, the Board may, by notification in the official Gazette, specify any registered person or class of registered persons or any good or class of goods in respect of which monitoring or tracking of production, sales, clearances, stocks or any other related activity may be implemented through electronic or other means as may be prescribed.

    Sub-Section(2): From such date as may be prescribed by the Board, no taxable goods shall be removed or sold by the manufacturer or any other person without affixing tax stamp, bandrole stickers, labels, barcodes, etc. in any such form, style and manner as may be prescribed by the Board in this behalf.

    Sub-Section (3): Such tax stamps, banderols, stickers, labels, barcodes etc., shall be acquired by the registered person referred to in sub-section (2) from a licensee appointed by the Board for the purpose, against price approved by the Board, which shall include the cost of equipment installed by such licensee in the premises of the said registered person.

  • Sindh receives Rs441.8 billion in nine months: finance ministry

    Sindh receives Rs441.8 billion in nine months: finance ministry

    ISLAMABAD: The ministry of finance on Monday said that Sindh has received Rs441.8 billion during the first nine months of current fiscal year.

    While clarifying media reports that the federal government had delayed or reduced transfers of funds to provinces, said that the government of Sindh has received Rs441.8 billion, as federal transfers, during the first three quarters (July – March 2018–19) of the current fiscal year compared to Rs418.1 billion during the corresponding period of the last fiscal year entailing a 5.7 percent increase i.e. Rs23.7 billion higher than the last year.

    Similarly, Punjab and Khyber Pakhtunkhwa have received Rs 866.6 billion and Rs. 290.4 billion, respectively, compared to Rs 801.7 billion and Rs 269.3 billion received during the corresponding period last year that has resulted in 8.1 percent and 7.9 percent increase in their Federal transfers.

    Balochistan also saw a12.8 percent increase in its Federal Transfers by receiving Rs. 180.3 billion compared to Rs. 159.9 billion during the same corresponding period.

    The ministry said that all the provinces have been receiving their share in the Federal Transfers in accordance with the NFC Award.

    The Federal Government makes these transfers, fortnightly, on the same day of reporting of the collections by the collecting agencies (i.e. Federal Board of Revenue and Petroleum Division).

    Any shortfall in revenue collections results in a uniform change in the share of the Federation and the provinces in the Federal Transfers.

  • Meezan Bank posts 49 percent growth in quarterly net profit

    Meezan Bank posts 49 percent growth in quarterly net profit

    KARACHI: Meezan Bank Limited has declared 49 percent increase in profit after tax to Rs2.85 billion for the quarter ended March 31, 2019 as compared with Rs1.19 billion in the same period of the last fiscal year.

    The Earnings per Share (EPS) – on enhanced capital increased to Rs. 2.44 per share, said a statement on Monday.

    The Board of Directors of Meezan Bank Limited in its meeting approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the quarter ended March 31, 2019.

    The meeting was presided by Mr. Riyadh S. A. A. Edrees – Chairman of the Board and Faisal A. A. A. Al – Nassar – Vice Chairman of the Board, was also present.

    The Board has approved 10 percent interim cash dividend (Rs 1.00 per share) and 10 percent bonus shares in the meeting. Quarterly cash dividend has been approved for the first time in the history of the Bank and is in keeping with the Board desire to ensure that investors in Meezan Bank are well looked after. The Bank has maintained an unbroken payout record since the Bank’s listing on Stock Exchange in the year 2000.

    The growth in profitability was driven by an increase of 57 percent in net spread primarily due to the Bank’s focus on maintaining a good quality high yield earning assets portfolio.

    Profit paid to depositors also doubled, as a result of increase in deposits and increase in depositors’ profit rates. The fees and commission income of the bank grew by 18 percent driven by an increase in trade business volume handled by the bank.

    Administrative and operating expenses increased by 24 percent primarily due to rising inflation, rupee devaluation and increase in costs associated with new branches – an investment in the future.

    However, the rise in expenses was sufficiently absorbed by the growth in the bank’s income resulting in improvement in the banks income expense ratio. The bank added 16 new branches to its network during the quarter bringing the total number of branches to 676 in 189 cities.

    The Bank is now the 7th largest bank in terms of branch network as well as in terms of deposit base.

    The investments portfolio increased to Rs219 billion from Rs124 billion in December 2018 – a growth of 77 percent. During the quarter, a consortium led by Meezan Bank successfully closed Pakistan’s first-ever energy Sukuk issued by the Power Holding Private Limited, a company wholly owned by the Government of Pakistan (GoP).

    The Sukuk is guaranteed by the GoP and is eligible for SLR for the purposes of the State Bank of Pakistan (SBP). The Bank is the largest investor in this Sukuk with a participation of Rs. 85 billion.

    The Islamic financings and related assets portfolio closed at Rs494 billion with an ADR of 64 percent. The bank maintained its financing exposure in all sectors and continued to actively pursue growth in Small and Medium Enterprise (SME) / Commercial and Consumer segment.

    The NPL ratio and NPL coverage ratio stood at 1.4 percent and 137 percent respectively. The bank remains a well-capitalized institution with Capital Adequacy Ratio of 15.5 percent.

    The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), in 2018, assigned the Bank an Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook.

    The Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank has been assigned a credit rating of ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings represent sound performance indicators of the Bank.

  • SRB extends return filing date for telecom service providers

    SRB extends return filing date for telecom service providers

    KARACHI: The Sindh Revenue Board (SRB) has announced an extension for the filing of returns. The revised deadline, now set for May 3, 2019, pertains specifically to the tax period of March 2019.

    (more…)
  • Equity market ends down by 104 points on panic selling

    Equity market ends down by 104 points on panic selling

    KARACHI: The equity market ended down by 104 points on Monday owing to panic selling.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,026 points as against 37,130 points showing a decline of 104 points.

    Analysts at Arif Habib Limited said that the market commenced on a positive note today and continued the rally that took place last week.

    During the session, the index increased by 307 points that was caused by Cement sector stocks hitting upper circuit.

    However, rumor regarding failure of negotiation amongst Cement manufacturers caused panic selling by investors, which resulted in index sliding in negative territory and erosion of price gains made earlier.

    Cement Sector topped the volumes with 34 million shares, followed by Banks (24 million).

    Among scrips, PIBTL led the volumes with 14 million shares followed by PAEL (11 million).

    Major sentiment dampener turned out to be E&P sector that saw heavy selling in all the E&P scrips on the back of falling international oil prices.

    Sectors contributing to the performance include Transport (+20 points), Tobacco (+19 points), E&P (-100 points), Fertilizer (-43 points), Power (-9 points), Textile (-8 points) and Cement (-7 points).

    Volumes increased from 144 million shares to 177 million shares (+23 percent DoD).

    Average traded value also increased by 22 percent to reach US$ 44.8 million as against US$ 36.7 million.

    Stocks that contributed significantly to the volumes include PIBTL, PAEL, BOP, FCCL and KEL, which formed 32 percent of total volumes.

    Stocks that contributed positively include PIBTL (+20 points), HBL (+16 points), HMB (+10 points), PMPK (+10 points), and PAKT (+9 points). Stocks that contributed negatively include PPL (-46 points), OGDC (-34 points), POL (-23 points), ENGRO (-19 points) and LUCK (-13 points).