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  • Hafeez Shaikh, Illangovan discuss World Bank funded projects

    Hafeez Shaikh, Illangovan discuss World Bank funded projects

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance, Revenue and Economic Affairs and the World Bank Country Director Patchamuthu Illangovan met on Monday to discuss ongoing projects funded by the World Bank.

    Patchamuthu Illangovan was called on the Adviser to PM on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh. They discussed the ongoing projects being supported by the World Bank, a statement said.

    The adviser emphasized the need to expedite the finalization of the new financing in the pipeline before the end of FY 2019.

    He assured the Country Director that all approvals will be expedited to ensure timely disbursement.

    It was also agreed that Chief Executive Officer, World Bank, Kristalina Georgieva, would meet the Prime Minister of Pakistan in China during his visit later this month there.

  • KCCI hopes new finance adviser to take steps minimizing taxpayers’ grievances

    KCCI hopes new finance adviser to take steps minimizing taxpayers’ grievances

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday felicitated Dr. Hafeez Shaikh on his appointment as adviser to prime minister on finance, revenue and economic affairs.

    The KCCI hoped that the new adviser would take practical steps in minimizing grievances of genuine taxpayers.

    Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli and President KCCI Junaid Esmail Makda, while extending heartfelt felicitations to Dr. Abdul Hafeez Sheikh on his appointment as Adviser to Prime Minister on Finance, said that keeping in view his vast experience and past performance, Dr. Hafeez Sheikh will certainly succeed in overcoming numerous crises being suffered by the country.

    In a letter sent to PM’s Adviser, Siraj Teli and Junaid Makda warmly welcomed the appointment of Dr. Hafeez Sheikh as PM’s Adviser and said that that due to his expertise and well acquaintance with trade and economic issues, the business and industrial community of Karachi was fairly optimistic that Dr. Sheikh will be able to successfully devise effective strategies in order to completely get rid of all types of crises.

    They stressed that as country was currently going through severe economic crises, therefore it was really essential that the business and industrial community should be taken on board in the policy making process.

    They hoped that the newly appointed PM’s Adviser would also take practical steps to minimize the grievances being faced by loyal taxpayers who are suffering terribly due to serious loopholes in the existing taxation mechanism.

    They stressed that the consultation strategy adopted by the PTI government with the business community of Karachi must continue and the contribution of more than 70 percent revenue to the national exchequer must always be taken into consideration.

    “The business and industrial community of Karachi stands shoulder-to-shoulder with the government during this difficult time and we will continue to support the government in the larger interest of the country,” they added.

    They also invited Dr. Hafeez Sheikh to visit the Karachi Chamber as soon as possible so that the business and industrial community could get an opportunity to share views about the Amnesty Scheme and also give valuable proposals for the forthcoming Federal Budget 2019-20, besides suggesting ways and means of how to improve the taxation system, enhance revenue generation and ensure ease of doing business which is one of the top most priority of the present government.

    Siraj Teli and Junaid Makda also paid glowing tribute to Former Finance Minister Asad Umer for always realizing the ground realities, making necessary corrections and struggling really hard to somehow minimize the burden on the poor segment of society.

  • FPCCI condemns terror attacks in Sri Lanka

    FPCCI condemns terror attacks in Sri Lanka

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday condemned brutal act of terrorism in Sri Lanka claiming around 290 lives.

    In a statement Engr. Daroo Khan Achakzai, FPCCI President strongly condemned the coward and brutal act of terrorism on luxury hotels and Churches holding Easter Services in Sri-Lanka, killing nearly 290 innocent people – including dozens of foreigners – and injuring nearly 500 people, including Pakistanis in a series of eight devastating bomb blasts on Sunday.

    The Chief of FPCCI, an apex body of the trade and industry in the country, expressed his deepest and profound condolence on behalf of the business community and the people of Pakistan in the wake of terrorist attacks in Sri-Lanka.

    He conveyed sympathies for the bereaved families on lost of their loved one in tragic incidents and prayed for the speedy recovery of the injured.

    The FPCCI President recalled, “Being a victim of protracted terrorism, Pakistan fully understands the pain of their Sri Lankan brethren and stands in complete solidarity with Sri-Lanka in their hour of grief.”

    Ackhazi hoped that the people of Sri Lanka would prevail unity and interfaith harmony amongst their ranks and files and the ugly attempts to destabilize their country would be crushed and foiled.

  • Stock market down 391 points on selling pressure

    Stock market down 391 points on selling pressure

    KARACHI: The stock market lost 391 points to start the week on Monday with selling pressure witnessed during the trading.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,902 points as against 37,292 points showing a decline of 391 points.

    Analysts at Arif Habib Limited said that profit booking was apparently the only idea on investors’ mind.

    SNGP, which hit upper circuit the other day with high volume was scheduled to announce financial results today.

    Although SNGP beat street consensus and did hit upper circuit today, it couldn’t sustain selling pressure and price went below last trading day’s closing price.

    LOTCHEM retained investors’ interest and despite trading below upper circuit several times, it managed to close at upper circuit.

    Overall, the index lost 453 points during the session besides marking +187 points in the beginning.

    Cement sector led the volumes with 24 million shares, followed by Chemical (21.8 million) and Banks (12.5 million). Among scrips, LOTCHEM topped the chart with 19.7 million shares, followed by PIOC (10.6 million).

    Sectors contributing to the performance include Banks (-118 points), E&P (-40 points), Fertilizer (-37 points), Cement (-29 points), Power (-27 points).

    Volumes declined considerably from 177.4 million shares to 125.9 million shares (-29 percent DoD). Average traded value also declined by 33 percent to reach US$ 31.3 million as against US$ 46.9 million.

    Stocks that contributed significantly to the volumes include LOTCHEM, PIOC, KEL, SNGP and PAEL, which formed 45 percent of total volumes.

    Stocks that contributed positively include LOTCHEM (+8 points), INDU (+2 points), DCR (+2 points), ICI (+2 points), and PKGS (+2 points). Stocks that contributed negatively include HBL (-56 points), PPL (-22 points), MCB (-20 points), LUCK (-18 points) and FFC (-17 points).

  • Rupee remains unchanged for sixth straight trading day

    Rupee remains unchanged for sixth straight trading day

    KARACHI: The Pak Rupee remained unchanged against dollar for sixth straight trading day on Monday amid lackluster demand for import and corporate payments.

    The rupee ended Rs141.40 to the dollar, the same last Friday’s closing, 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 Rs141.40 and low of Rs141.40 and closed at Rs141.40.

    Currency experts said that the traders were cautious about purchasing dollars over uncertainty about the future of exchange rate.

    The exchange rate in open market ended with gain by the local currency.

    The buying and selling of dollar was recorded at Rs141.80/Rs142.30 as compared with last Saturday’s closing of Rs142.00/Rs142.50 in cash ready market.

  • PSO declares 55 percent decline in net profit for nine-month period

    PSO declares 55 percent decline in net profit for nine-month period

    KARACHI: The net profit of Pakistan State Oil (PSO) has declined substantially by 55 percent to Rs5.92 billion for the period July – March 2018/2019 as compared with Rs13.22 billion in the corresponding period of the last fiscal year.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Monday for nine-month period ended March 31, the earning per share of the company also fell to Rs15.15 as compared Rs33.80 in the same period of the last year.

    The gross sales of the company was flat at Rs950.93 billion during July – March 2018/2019 as compared with Rs930.38 billion in the same period of the last fiscal year.

    The gross profit of PSO reduced to Rs23.88 billion for the nine-month period ended March 31, 2019 as compared with Rs28.87 billion in the same period of the last fiscal year.

    The profit of the company for the quarter January – March 2019 also fell to Rs1.67 billion as against Rs4.70 billion, posting 64 percent decline.

    Analysts at Topline Securities said that the company recorded loss of around Rs2.3 billion on petrol, while, gain of around Rs2 billion and Rs95 million on Furnace Oil (FO) and HSD respectively.

    Further, volumetric decline of 6 percent YoY in HSD/Petrol and 31 percent YoY decline FO sales also weighed on overall gross profits of the company.

  • Foreign currency account restriction on non-filers not apply on non-residents: SBP

    Foreign currency account restriction on non-filers not apply on non-residents: SBP

    The State Bank of Pakistan (SBP) issued an important clarification on Monday regarding the restrictions on foreign currency accounts, emphasizing that these limitations do not apply to non-resident Pakistanis.

    (more…)
  • FBR plans prizes to encourage public take invoices from restaurants, hotels

    FBR plans prizes to encourage public take invoices from restaurants, hotels

    ISLAMABAD: Federal Board of Revenue (FBR) is planning to introduce prize scheme through draw against invoices of restaurants submitted by customers.

    Sources in FBR on Monday said that the plan was under consideration after identification of huge tax evasion by restaurants in Islamabad Capital Territory.

    The sources said that the FBR would announce different prizes through a draw of invoices. The purpose of this prize scheme is to encourage people to take their invoices for food purchased from restaurants and hotels.

    Few months back the FBR installed Restaurants Information Management System (RIMS) at top restaurants and hotels located in Islamabad to monitor their sales for collection of sales tax on services.

    The RIMS is installed at the restaurants and directly connected with FBR online system for real-time data sharing of sales invoices.

    However, it was identified that the most of the restaurants were found in suppressing sales through switching off the online system. The FBR sources said that it was detected that the restaurants were declaring less than half of their sales.

    The FBR has launched penal action against non-compliant restaurants.

    On the other side the owners of restaurants and hotels had announced shut down protest. However, this protest was called back after discussion with State Minister Hammad Azhar a day earlier.

    The owners of hotels and restaurants would again hold talks with FBR officials today to resolve the matter.

  • Ghandhara Nissan declares 44 percent decline in net profit for nine-month period

    Ghandhara Nissan declares 44 percent decline in net profit for nine-month period

    KARACHI: Ghandhara Nissan Limited, the assembler of light commercial and heavy vehicles in Pakistan, has posted significant decline in net profit by 44 percent for nine-month period ended March 31, 2019.

    The company submitted its finance results for July – March 2018/2019 to Pakistan Stock Exchange (PSX) on Monday.

    The company declared Rs135.92 million profit after tax for the period as compared with Rs242.85 million for the corresponding period of the last fiscal year.

    The earnings per share also fell to Rs2.38 for the period under review as compared with Rs4.91 in the same quarter of the last fiscal year.

    The revenue off the company was stagnant at Rs1.7 billion for the first nine months of the current fiscal year as compared with Rs1.74 billion in the same period of the last fiscal year.

    After excluding the cost of sales the gross profit of the company was at Rs300.89 million as against Rs358.95 million in last year.

    The profit before taxation of the company stood at Rs178.84 million for the nine-month period ended March 31, 2019 as compared with Rs316.82 million in the same period of the last fiscal year.

    The profit after tax for the third quarter (January – March) 2019 was sharply declined by 85 percent to Rs6.87 million as compared with Rs45.8 million declared for the same quarter of the last year.

  • Sales Tax Act 1990: three years imprisonment for persons fail to get registration

    Sales Tax Act 1990: three years imprisonment for persons fail to get registration

    KARACHI: Persons making taxable supplies but failed to get registration with tax department then such persons are liable to three years imprisonment, which may be extendable.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the fines and penalties had been prescribed for persons deliberately violated the laws.

    According to the law, any person who is required to apply for registration under this Act fails to make an application for registration before making taxable supplies.

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

    Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, 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 fails to maintain records required under this Act or the rules made there under.

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

    Where a registered person who, without any reasonable cause, in non compliance with the provisions of section 25, –

    (a) fails to produce the record on receipt of first notice;

    (b) fails to produce the record on receipt of second notice; and

    (c) fails to produce the record on receipt of third notice.

    Then such person shall pay a penalty of five thousand rupees;

    such person shall pay a penalty of ten thousand rupees; and

    such person shall pay a penalty of fifty thousand rupees.

    Any person who fails to furnish the information required by the Board through a notification issued under sub-section (5) of section 26.

    Such person shall pay a penalty of ten thousand rupees.