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  • HBL declares 32 percent decline in net profit for first quarter

    HBL declares 32 percent decline in net profit for first quarter

    KARACHI: Habib Bank Limited (HBL) has announced 32 percent decline in profit after tax to Rs3.177 billion for first quarter of year 2019 as compared with Rs4.68 billion in the same quarter of the last year.

    The earnings per share also declined to Rs2.08 for the period as compared with Rs3.12 in the same quarter of last year.

    Analysts at Arif Habib Limited said that though the profit declined in first quarter as compared with the same quarter of the last year but it grew by 26 percent on quarter on quarter basis (QOQ) despite higher tax rate this quarter.

    Major drivers for earnings this quarter that have contributed to a remarkable 116 percent QoQ increase in PBT include a total gain on foreign exchange income and derivatives compared to a hefty loss last quarter.

    Moreover a net reversal was booked this quarter against a heavy provisioning expense booked last quarter. A dividend of PKR 1.25/share was also announced for the quarter.

    NII of the bank settled at PKR 23.4bn for 1QCY19, rising 19 percent YoY as 63 percent higher interest expense was offset by the 39 percent rise in mark-up income. NII registered an uptick of 12 percent QoQ as well.

    NFI of the bank depicted healthy improvement of 22 percent YoY / 60 percent QoQ. The bank booked a profit on FX income (and derivatives) of a total PKR 637mn compared to a staggering loss of PKR 3bn during 4QCY18 and PKR 478mn during 1QCY18. Moreover, fee income of the bank showed an impressive jump of 18 percent YoY.

    The bank booked a net reversal of PKR 83mn compared to a hefty provisioning expense of PKR 3.2bn during 4QCY18 (owing to impairment charge on the equity book).

    Higher OPEX (+21 percent YoY / 21 percent QoQ) owing to NY remediation/business transformation costs continued for the bank.

    Effective tax rate was set at 62 percent for 1QCY19 vis-à-vis 36 percent SPLY due to additional super tax being booked this quarter on CY17 earnings.

  • FBR suspends two customs intelligence officers

    FBR suspends two customs intelligence officers

    KARACHI: Federal Board of Revenue (FBR) on Wednesday suspended two officers of Customs Intelligence with immediate effect.

    The following Intelligence Officers of Directorate of Intelligence & Investigation – FBR, Regional Office, Karachi have been placed under suspension in terms of Article 194 of CSR with immediate effect.

    i. Mehmood Akbar.

    ii. Parvaiz Ahmed Zardari

  • Amnesty scheme may be introduced for two months; may conclude before IMF program

    Amnesty scheme may be introduced for two months; may conclude before IMF program

    ISLAMABAD: The government is reportedly planning to roll out a much-anticipated tax amnesty scheme during the last two months of the current fiscal year, with a conclusion targeted before the initiation of the International Monetary Fund (IMF) loan program.

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  • Sales Tax Act 1990: 5-year jail for obstructing IR officers to business premises

    Sales Tax Act 1990: 5-year jail for obstructing IR officers to business premises

    KARACHI: A person may be penalized up to five year imprisonment for obstructing or denying access any officer of Inland Revenue to the business premises or records.

    The updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR) explained offenses and penalties.

    As per Section 33 of the Sales Tax Act, 1990 following are offenses and penalties:

    Any person who denies or obstructs the access of an authorized officer to the business premises, registered office or to any other place where records are kept, or otherwise refuses access to the stocks, accounts or records or fails to present the same when required under section 25, 38 38A or 40B.

    Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher.

    “He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to five years, or with fine which may extend to an amount equal to the loss of tax involved, or with both.”

    Any person who, –

    (a) submits a false or forged document to any officer of Inland revenue; or

    (b) destroys, alters, mutilates or falsifies the records including a sales tax invoice; or

    (c) Knowingly or fraudulently makes false statement, false declaration, false representation, false personification, gives any false information or issues or uses a document which is forged or false.

    Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher.

    “He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to the amount of tax involved, or with both.”

    Any person who commits, causes to commit or attempts to commit the tax fraud, or abets or connives in commissioning of tax fraud.

    Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher.

    “He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to five years, or with fine which may extend to an amount equal to the loss of tax involved, or with both.”

    Where any person violates any embargo placed on removal of goods in connection with recovery of tax.

    Such person shall pay a penalty of twenty five thousand rupees or ten per cent of the amount of the tax involved, whichever is higher.

    “He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to one year, or with fine which may extend to amount equal to the amount of tax involved, or with both.”

  • Procedure to claim income tax refund

    Procedure to claim income tax refund

    Karachi, Pakistan: The Federal Board of Revenue (FBR) has taken a significant step to streamline the process of claiming income tax refunds. In a recent announcement, the FBR has issued detailed guidelines that outline the procedures for individuals and businesses to seek refunds for excess taxes paid.

    (more…)
  • FBR directed to make proposed amnesty scheme more attractive

    FBR directed to make proposed amnesty scheme more attractive

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance, Revenue, and Economic Affairs, directed the Federal Board of Revenue (FBR) to modify the proposed tax amnesty scheme to attract a maximum number of people.

    (more…)
  • Chief collector directs simplifying refund payment system

    Chief collector directs simplifying refund payment system

    KARACHI: Mrs. Surriya Ahmed Butt, Chief Collector of Appraisement (South) has issued directives to customs authorities to simplify refund payment system.

    The chief collector issued the directives in a meeting with members of Karachi Customs Agents Association (KCAA), a statement issued on Tuesday.

    At the meeting the customs agents pointed out that the traders were facing immense problems in obtaining refunds as authorities were processing their claims through manual system.

    They said that almost all the system of the customs clearance had been automated and urged the collector to make the refund payment through online system.

    The chief collector assured the customs agents for simplifying the refund payment system.

    The managing committee of KCAA headed by the President Mohammad Amin Essani and General Secretary Arshad Khurshid participated in the meeting.

    This high-level meeting was also attended by the Collector of Customs MCC-Appraisement (West) Wajid Ali, Collector of Customs MCC-Appraisement (East), Dr. Nadeem Memon, Collector of Customs MCC-(Port Qasim), Mumtaz Ali Khoso alongwith the Additional Collectors of Customs of MCC-Appraisement (East) & (West).

    While addressing the participants by the worthy Chief Collector South stated that collection of legitimate taxes in a friendly environment and Trade Facilitation is the main focus and top priority agenda of Pakistan Customs.

    She assured their cooperation in order to resolve the issues being faced by the trade on the spot by adopting Open Door Policy at Custom House.

    In the said meeting the following decisions were taken:

    Refund Process: It has been decided that refund process will be simplified.

    Dis-continuation of practice for manual hold by the terminal operators on auction goods released by the customs after payment of legitimate duty and taxes.

    Call Documents: In order to reduce dwell time the process for call documents will also be simplified.

    Review Submission Option: The Customs Authorities agreed that an option will be given to traders to opt for personal hearing directly before the concerned Deputy Collector instead of routed through PA. This will reduced the dwell time and allow timely clearance of goods.

    CRF procedure. As proposed by KCAA the On-Line CRF request will be introduced in the system with the consultation of Directorate of Reforms & Automation.

    Regarding Auto De-Blocking of IGM. De-blocking of IGM of late GDs filing should be done electronically.

    On-Line Verification of Pak China FTA. The authenticity of Pak-China FTA Certificate should be verified through Electronic Data Exchange (EDE).

    All the proposals / agenda were appreciated by the department and assure the implementation of the same for the betterment of trade facilitation.

    The meeting was concluded with a vote of thanks as the decisions taken were definitely reduce the cost of doing business.

    In the end of meeting Mohammad Amin Essani (President) and Arshad Khurshid (General Secretary) thanked and appreciated the prompt decisions taken by the Honorable Chief Collector South (Appraisement) and other Collectors for giving them their precious time for meeting and assure their full cooperation at any stage.

  • PTCL, Zong 4G collaborate for network expansion in remote areas

    PTCL, Zong 4G collaborate for network expansion in remote areas

    KARACHI: Pakistan Telecommunication Company Limited (PTCL) and Zong 4G have entered into a strategic partnership for network expansion in remote and far-flung areas of the country.

    The collaboration will ensure provision of VSAT services by PTCL to further support and expand the network coverage across the country.

    The agreement was signed by Saad Muzaffar Waraich, Chief Technology & Information Officer, PTCL, and Li Wenyu, Chief Financial Officer, ZONG 4G, during the ceremony held at Zong 4G Headquarters in the presence of the senior management and officials of respective companies.

    The collaboration will ensure state-of-the-art VSAT satellite services to further enhance the network coverage and enabling customers from remote areas to enjoy increased speed through Zong 4G’s widest coverage.

    Being the most experienced in the domain of satellite communication, PTCL also has extensive ground support, operation and implementation infrastructure to serve a variety of satellite communication applications.

    The company will offer a complete spectrum of end-to-end connectivity to Zong 4G designated sites.

    Speaking on the occasion, Saad Muzaffar Waraich, Chief Technology & Information Officer, PTCL, said, “We are pleased to sign the agreement with ZONG 4G. PTCL has been serving as the communication backbone of the country since inception of Pakistan and this partnership will help them to expand their high-quality voice and data services to the underserved markets of Pakistan.

    “We are at the forefront of leading the digitization across Pakistan through such partnerships. PTCL continues to play its role in the development of telecom infrastructure, contributing to the overall economic growth of the country.”

    Commenting on the partnership, Mannan Shabbir, Executive Director, Corporate Affairs Division & Company Spokesperson, said, “Being the first and the only operator with more than 10,000 4G sites across the country, Zong 4Gis providing the widest 4G coverage to the largest 4G subscriber base in the Pakistan at an unprecedented scale.

    “Our partnership with PTCL is a testament to our customer-centric approach by providing our customers with the best possible services and solutions through our ever-expanding data network. Leading digitalization efforts across Pakistan, we continue to thrive, not only in the mainstream cities, but also in far-flung and remote areas of Pakistan providing reliable and seamless connectivity.”

    As the winner of ‘Best in 4G services’ award by the Consumers Association of Pakistan and with more than 11 Million 4G customers, Zong 4G is the leading 4G operator of the country.

    Through its continued investment in the network and infrastructure, the company is enabling its customers in every nook and corner of the country to experience world-class 4G services.

    The collaboration will further enhance the digital agenda of Zong 4G and PTCL in empowering millions to remain connected anywhere and everywhere.

  • SBP restrains banks’ chairmen from appointing adviser

    SBP restrains banks’ chairmen from appointing adviser

    KARACHI: State Bank of Pakistan (SBP) on Tuesday restrained board / chairman of banks from appointing adviser in any capacity.

    The central bank amended Prudential Regulations G-1 to substitute Para C-3, which is as under:

    “3. The Chairman/Board shall not appoint an `Advisor’ in any capacity. Accordingly, all Banks/DFIs are advised to ensure appropriate skill mix of the Board keeping in view the overall risk profile of the institution.”

    All banks/DFIs are advised to ensure compliance within six months of the date of issuance of the circular letter, the SBP said.

    After which, the non-compliance shall attract punitive action under relevant provisions of the Banking Companies Ordinance, 1962.

    Earlier the SBP through amendment dated April 24, 2009 issued the following:

    “Chairman of the Board of Directors may, if deemed necessary, appoint one advisor to advise and facilitate him in discharge of his duties/responsibilities. The appointment of such an advisor will be subject to the following conditions:

    a) The advisor must possess the required technical experience relating to banking and finance at a senior level to enable him/her to render a professional advice to the Board.

    b) The terms of reference of the advisor shall be approved by the Board.

    c) A reasonable remuneration may be paid to the advisor with the approval of the Board of Directors.

    d) The advisor may attend the meetings of Board of Directors and Board Committees in which his/her participation is required but he/she will not be a member of the Board and/or its committees.

    e) The advisor shall be required to sign an appropriate confidentiality agreement to ensure confidentiality of documents / information that may come to his/her knowledge, before assuming any such role.”

  • Equity market extends losses on concerns over budgetary measures

    Equity market extends losses on concerns over budgetary measures

    KARACHI: The equity market extended previous day’s losses on Tuesday owing to concerns over new budgetary measures under planned IMF program.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,404 points as against 36,902 points showing a decline of 498 points.

    Analysts at Arif Habib Limited said that the index saw a significant draw down of 765 points.

    Issues contributing to the negative sentiment included a key meeting among Cement manufacturers to discuss the market share and possibly redefine the same in north and south regions.

    Besides, recent resignation of FM and joining of the Advisor to Finance Ministry caused concern among investors for deferral in finalization of IMF.

    In addition, future contract in the on-going rollover week attracted selling interest from investors. Cement Sector led the volumes with 19 million shares, followed by Chemical (15 million).

    LOTCHEM managed to move upward though the price gains were contained. SNGP after showing phenomenal results, announced yesterday, saw lower circuit by session’s end.

    Sectors contributing to the performance include Fertilizer (-66 points), Banks (-66 points), Cement (-58 points), E&P (-58 points), O&GMCs (-51 points).

    Volumes continued declining trend and reached 120 million shares from 126 million shares (-5 percent DoD). Average traded value increased by 13 percent to reach US$ 35.4 million from US$ 31.3 million.

    Stocks that contributed significantly to the volumes include LOTCHEM, KEL, SNGP, BOP and PIOC, which formed 35 percent of total volumes.

    Stocks that contributed positively include MCB (+4 points), MUREB (+3 points), UBL (+2 points), FATIMA (+2 points), and MEBL (+2 points). Stocks that contributed negatively include HBL (-33 points), DAWH (-30 points), ENGRO (-23 points), OGDC (-23 points).