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  • Equity market gains 64 points amid selling pressure

    Equity market gains 64 points amid selling pressure

    KARACHI: The equity market gained 64 points on Thursday amid selling pressure was seen in energy scrips.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PsX) closed at 35,129 points as against 35,066 points showing an increase of 64 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range between -70 points and +188 points, closing the session +64 points.

    E&P sector saw selling pressure that has been the case since international oil prices have faced resistance in the past couple of sessions.

    Fertilizer, Cement, Steel and Textile sector scrips performed well today on the back of positive expectations from upcoming Budget, whereas Banks and E&P sectors saw profit booking.

    Cement sector led the volumes with 44.4 million shares, followed by Chemical (31.8 million) and Technology (27.7 million).

    POWER topped the volumes with 19.2 million shares, followed by TRG (14.5 million) and UNITY (10.8 million).

    Sectors contributing to the performance include Fertilizer (+60 points), Cement (+44 points), E&P (-46 points), Banks (-36 points) and Food (-23 points).

    Volumes increased from 218.6 million shares to 270.6 million shares (+24 percent DoD). Average traded value also increased by 9 percent to reach US$ 52.6 million as against US$ 48.3 million.

    Stocks that contributed significantly to the volumes include POWER, TRG, UNITY, EPCL and MLCF, which formed 24 percent of total volumes.

    Stocks that contributed positively to the index include DAWH (+27 points), FFC (+25 points), LUCK (+25 points), MEBL (+20 points) and ENGRO (+20 points). Stocks that contributed negatively include UBL (-32 points), HBL (-24 points), OGDC (-22 points), NESTLE (-18 points), and PPL (-15 points).

  • Rupee weakens by four paisas against dollar

    Rupee weakens by four paisas against dollar

    The Pakistani Rupee faced a decline of four paisas against the US Dollar on Thursday, closing at Rs164.59 in the interbank foreign exchange market.

    (more…)
  • Economic Survey: GDP growth projected at negative 0.38 percent

    Economic Survey: GDP growth projected at negative 0.38 percent

    ISLAMABAD: The GDP growth for current fiscal year has been estimated negative 0.38 percent, according to Pakistan Economic Survey for 2019/2020 released on Thursday.

    The survey stated that although, provisional GDP growth rate for FY2020 is estimated at negative 0.38 percent, however, macroeconomic stabilization measures undertaken by the government over the past year resulted in significant reduction in Saving-Investment Gap which was mainly driven by reduction in trade deficit and increase in workers’ remittances.

    It is also mentionable that fiscal deficit remained contained in first three quarters of FY2020.

    Historically, Private Consumption had significantly contributed in Pakistan’s economic growth.

    The pattern was likely to continue, however, due to COVID-19, private consumption suffered significantly.

    In percentage of GDP, it dropped to 78.5 percent in FY2020 compared to 82.9 percent in FY2019.

    Private Investment as a percentage of GDP dropped to 9.98 percent from 10.29 percent in FY2019 while Public Investment (including General Government investment) has shown improvement as it remained 3.8 percent compared to 3.7 percent last year.

    However, there was 13.2 percent growth in Public Investment (including General Government investment) during FY2020, while it declined by 21.6 percent last year.

    The economy of Pakistan like other economies has a diverse structure with three main sectors -agriculture, industry and services.

    The agriculture sector, as mentioned earlier, grew by 2.67 percent.

    The crops sector has witnessed positive growth of 2.98 percent during FY2020 mainly due to positive growth of 2.90 percent in important crops.

    According to Pakistan Bureau of Statistics, fourth quarter has been estimated by keeping in view the lockdown situation faced by the industrial sector due to COVID-19.

    Significant impact has been observed in the manufacturing sector, particularly Large-Scale manufacturing and Small-Scale Manufacturing.

    The provisional growth in industrial sector has been estimated at -2.64 percent mainly due to a negative growth of 8.82 percent in mining and quarrying sector and decline of 7.78 percent in large-scale manufacturing sector.

    Due to lock down situation in the country, the growth estimates of Small-Scale Industry for FY2020 are 1.52 percent.

    Similar to the industrial sector, services sector of the economy has also witnessed significant impact of the lock down situation in the country due to COVID-19, particularly in Wholesale and Retail Trade and Transport Sectors.

    The services sector has declined provisionally at 0.59 percent mainly due to 3.42 percent decline in Wholesale and Retail Trade sector and 7.13 percent decline in Transport, Storage and Communication sectors.

    Finance and insurance sector witnessed a slight increase of 0.79 percent.

    The Housing Services, General Government Services and Other private services have contributed positively at 4.02, 3.92 and 5.39 percent respectively.

  • Sindh excise asks taxpayers to pay dues to get 25pc exemption

    Sindh excise asks taxpayers to pay dues to get 25pc exemption

    KARACHI: Sindh Excise Department has urged taxpayers to pay their dues till June 30, 2020 and avail exemption of 25 percent.

    In a statement on Thursday, Provincial Minister for Excise and Taxation and Narcotics Control and Parliamentary Affairs Mukesh Kumar Chawla said that the Sindh Excise Department has introduced an online queue management system in view of the Sindh government’s health advisory to facilitate taxpayers.

    “Tax defaulters should deposit their taxes and dues before June 30, as all the offices of the Sindh Excise Department are open as per the routine with one-third of the staff,” he said.

    He said that in the current financial year till May, Rs 4602.548 million from Karachi, Rs 372.033 million from Hyderabad, Rs 231.850 million from Sukkur, Rs 80.380 million from Shaheed Benazirabad , Rs 83.467 million from Larkana and Rs. 46.629 million from Mirpurkhas were received in term of Motor Vehicle Tax.

    Provincial Minister Mukesh Kumar Chawla further said that in terms of professional tax, Rs 419.515 million from Karachi, Rs 25.020 million from Hyderabad, Rs 25.723 million from Sukkur, Rs 11.511 million from Shaheed Benazirabad, Rs 23.960 million from Larkana and Rs 7.041 million from Mirpurkhas were received.

    Giving the details of property tax collection, Provincial Minister for Excise & Taxation and Narcotics Control & Parliamentary Affairs Mukesh Kumar Chawla said that Rs 1678.884 million from Karachi, Rs 69.532 million from Hyderabad, Rs 33.102 million from Sukkur and Rs 9.186 million from Shaheed Benazirabad, Rs.22.137 million from Larkana and Rs.9.778 million from Mirpurkhas were recovered.

    He said that the offices of Sindh Excise Department were open for collection of all taxes including professional tax and property tax.

    He requested the taxpayers to get their challans and deposit their taxes and take the advantage of the 25 percent exemption in their taxes.

  • FBR reconstitutes licensing committee for tracking transit, transshipment cargo

    FBR reconstitutes licensing committee for tracking transit, transshipment cargo

    ISLAMABAD: Federal Board of Revenue (FBR) has re-constituted committee for grant of license for tracking transit and transshipment cargo.

    The FBR on Wednesday issued SRO 542(I)/2020 dated June 08, 2020 to amend Tracking and Monitoring of Cargo Rules, 2012.

    The reconstitution of committee shall comprise of Director General of Transit Trade (Chairman), Director Transit Trade (I-IQs), Karachi, Director Transit Trade (Peshawar), Director Transit Trade (Quetta), Director Reforms and Automation (Karachi), Collectors of Customs (Enforcement and Compliance, Karachi), (Appraisement and Facilitation, Port Muhammad Bin Qasim, Karachi), (Appraisement and Facilitation-East, Karachi), (Appraisement and Facilitation-West), Karachi, and Director of Intelligence and Investigation, FBR, Karachi or any other authority designated by the FBR Headquarter.

    As per amendment the project director shall be Director (HQs), Directorate General of Transit Trade. Previously, the project director was Collector, Model Collectorate of Customs (Preventive).

    In another amendment, Director Transit Trade (HQs), Karachi shall be the convener of the Licensing Committee and its headquarters shall be located in Directorate General of Transit Trade, Karachi. The Director Transit Trade (HQs), Karachi shall provide secretarial and other allied support required for functioning of the Licensing Committee.

    A new rule introduced through the amendment that any function enumerated in these rules including mounting and un-mounting of tracking devices in the designated areas, whereof, the staff of the Directorate General of Transit Trade is not posted, shall be performed by the staff of the respective Enforcement and Compliance or Composite Customs Collectorate of jurisdiction.

  • MCC Gwadar announces auction of fresh lot of vehicles on June 16

    MCC Gwadar announces auction of fresh lot of vehicles on June 16

    KARACHI: Model Customs Collectorate (MCC) Gwadar has announced auction of fresh lot of confiscated vehicles on June 16, 2020 to be held at Custom House, Gaddani.

    According to terms and conditions, the auction shall be held strictly in accordance with the provision of the Customs Act, 1969 and rules made there under. All the interested parties/bidders shall abide by all the conditions ordained the relevant provisions of the Act and the Rules.

    Successful bidder has to deposit 25 percent of the bid amount in shape of cash on the spot. Rest of the bid amount shall be deposited within 7 days of the display of the list of approved lots.

    Further, successful bidder has to deposit 10 percent of bid amount as advance income tax separately.

    Following vehicles will be presented for the auction on June 16, 2020.

    01. Toyota Succeed, Reg. No, AXY-531, Chassis No. NCP58-0031359

    02. Probox Car, Reg. No, ABK-783, Chassis No. NCP50-0021677

    03. Probox Car, Reg. No, AVY-782, Chassis No. NCP51-0090826

    04. Corolla Car, Reg. No, AAL-662, Model 2000, Chassis No. EEI02-0094351

    05. Toyota Succeed car, Reg. No, AAF-754, Chassis No. NCP58-0056515, Model 2004

    06. Land Cruiser Prado, Reg. No, Not Traceable, Chassis No. LJ78-0002499

    07. Toyota Land Cruiser, Reg. No, BA-5186, Chassis No. HJ60-009651, Model 1984

    08. Toyota Corolla Car, Reg. No, AFY-270, Chassis No. NZE120-6009594, Model 2004

    09. Toyota Land Cruiser, Reg. No, QBA-3037, Chassis No. FZ180-016013

    10. Toyota X Corolla, Chassis No. NZE124-3016997

    11. Probox Car, Reg. No, AKL-224, Chassis No. NCP51-0001414

    12. BMW Car, Model 2002, Reg. No, #ANG-032, Chassis No. WBAGL42020DD-78677, Engine No. WB96L614161, Capacity 4320cc

    13. Toyota Land Cruiser, Model 1988, Reg. No, JAA-889, Chassis No. BJ-60-020679, Capacity 3400

    14. Toyota Land Cruiser, Model 1991, Reg. No, JAE-140, Chassis No. HZJ-770002489, Capacity 4500

    15. Toyota Land Cruiser, Model 1985, Reg. No, BA-4463, Chassis No. BJ-61-003506, Capacity 2446

    16. Mitsubishi Pajero, Model 1985, Reg. No, JAL-231, Chassis No, LO48G-3005856, Capacity 2446

    17. Land Cruiser, Model 1989, Reg. No, QAB-1649, Chassis No. HJ61-013994, Capacity 3400

    18. Toyota Hilux Surf SSR-X, Model 2000, Reg. No, JAF-845, Chassis No. RZN185-9036661, Engine No. 3RZ-FE2386704, Capacity 2693cc

    19. Toyota Jeep Land Cruiser, Model 1989, Reg. No, AFR-2015, Chassis No. SJ40-371932, Capacity 3400

    20. Toyota X Corolla Car, Model 2007, Chassis No. NZE121-0009339, Eng. No, KCE-1297, Capacity 1492cc

    21. Toyota X Corolla Car, Model 2005, Chassis No. NZE120-3008546, Engine. No, 2018158, Capacity 1492

    22. Toyota Mark-X, Model 2007, Chassis No. GRX121-3001923, Eng. No, 3GR-0198589, Capacity 2994cc

    23. Toyota Land Cruiser, Model 1993, Chassis No. LJ78-0039971, Eng. No, ZL-33868, Capacity 2000cc

    24. Honda Civic Car, Model 2002, Chassis No. ESI-1600827, Engine. No, D1610173-004871, Capacity 1800cc

    25. BMW, Model 2002, Chassis No. WBAGL62090DJ92594, Engine. No, CC-300, Capacity 4476

    26. Toyota Prado, Model 2000, Chassis No. VZJ90-0004977, Engine. No, SVM-L041167, Capacity 3400

    27. Toyota Land Cruiser, Model 1996, Chassis No. FZJ-800102056, Engine. No, IFZFES4476, Capacity 4500

    28. Toyota Surf, Model 1993, Chassis No. KZN130-9032504, Engine. No, Not Traceable, Capacity 2446

  • SECP proposes setting up oversight committee to review Shariah compliance

    SECP proposes setting up oversight committee to review Shariah compliance

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has proposed constitution of an oversight committee to review Shariah compliance of listed companies and securities.

    The SECP issued draft amendments to Shariah Governance Regulations, 2018 through SRO 510(I)/2020 dated June 03, 2020.

    An amendment has been proposed in regulation 12 to form the oversight committee.

    According to the draft amendment:

    An Oversight Committee to conduct Shariah screening process:

    1. There shall be an oversight committee comprising of the following members to oversee and establish the Shariah screening criteria.

    (a) Chairman Shariah Advisory Committee, SECP – as head

    (b) A representative of PSX;

    (c) A representative of KMI;

    (d) A representative of MUFAP.

    1. The oversight committee shall conduct the Shariah screening for listed companies on the basis of criteria notified by Pakistan Stock Exchange (PSX) as per regulation 11 for the purpose of a Shariah index.
    2. The Oversight committee shall review the Shariah compliance of companies and securities on a bi-annual basis.
    3. The oversight committee shall exclude a company or security from the index as and when it becomes Shariah non-compliant.
    4. To facilitate oversight committee and develop Islamic capital market products, PSX shall establish a dedicated Shariah department and appoint at least one independent Shariah Advisor.
  • Car sales plunge by 75 percent in May

    Car sales plunge by 75 percent in May

    KARACHI: The sales of locally manufactured cars have posted a massive decline of 75 percent in May 2020 due to closure of business operations of all major car assemblers during the month.

    According to data released by Pakistan Automobile Manufacturers Association (PAMA), the sales of car industry were at 4,473 units in May 2020 as compared with 17,781 in the same months of the last year.

    Analysts at Topline Research said that the decline in sales was mainly due to the closure of business operations of all major car assemblers, which resulted in no invoicing of cars for the majority of the month.

    The car sales also witnessed 54 percent decline to 102,137 units during July – May 2019/2020 as compared with 222,167 units in the corresponding period of the last year.

    The highest decline was recorded by Honda Car (HCAR) as its units sales were down by 89 percent YoY in May 2020, followed by Indus Motors (INDU) and Pak Suzuki (PSMC) with declines of 88 percent YoY and 64 percent YoY, respectively.

    In 11MFY20 car sales have declined by 54 percent YoY. HCAR sales are down by 65 percent YoY, followed by INDU and PSMC with declines of 57 percent YoY and 49 percent YoY, respectively.

    Atlas Honda (ATLH) recorded motorbike sales of 12,106 units, down by 88 percent YoY. In 11MFY20, ATLH sales are down by 24 percent YoY.

    Tractor sales are down by 49 percent YoY. Al Ghazi Tractors (AGTL) reported a decline of 89 percent YoY, while Millat Tractors (MTL) sales have declined by 26 percent YoY (+70 percentMoM).

    The official notification pertaining to announced subsidy of Rs2.5 billion on GST for tractors remains pending, which has created uncertainty amongst the buyers.

    The analysts expect higher sales for the month of June-2020 as restrictions imposed by the government has been eased significantly compared to the outgoing month

  • SBP disburses Rs96 billion under refinance scheme to dilute COVID impact

    SBP disburses Rs96 billion under refinance scheme to dilute COVID impact

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has said that so far around 1320 companies availed SBP’s refinance scheme and a sum of Rs96 billion has been disbursed to the applicants during last three months of current fiscal year to dilute adverse impact of COVID-19.

    The SBP governor was exchanging views with Presidents of Karachi, Lahore, Islamabad, Quetta, Faisalabad, Sarhad, Sialkot, Gujranwala, Multan, Mirpurkhas Chambers and also the FPCCI at a meeting held a day earlier via video link, said a statement issued by Karachi Chamber of Commerce and Industry (KCCI).

    The SBP governor said that the refinance scheme was launched as a risk sharing initiative to facilitate SMEs during the ongoing difficult times and minimize the negative impact on numerous businesses caused by the outbreak of coronavirus pandemic.

    He was of the opinion that this meeting via video link with the business and industrial community of entire Pakistan should be held regularly on monthly basis so that the SBP could better understand business community’s requirements and accordingly devise strategies.

    President KCCI Agha Shahab Ahmed Khan, in his remarks, urged the State Bank of Pakistan to publicize details of all the companies who have availed SBP’s refinance scheme with a view to make this scheme transparent otherwise, it is likely that the banks will be accused of giving loans to their favorites and undeserving in future.

    He further stated that several public sector organizations including the State Bank of Pakistan have been following dissimilar definitions for SMEs that creates a lot of confusion and needs to be clarified.

    In response, Governor State Bank assured that the issue has been rectified and all the institutions including SBP are following a uniform definition for SMEs which will be shared with KCCI so that they could understand the overall ambit of SME sector.

    Agha Shahab said that some highly influential people having good contacts in the banking sector have easy access to financing facilities but a large segment of society remains deprived hence, there is a need to ease the overall criteria and paperwork for loan disbursement so that maximum people could benefit from these facilities and are able to survive in the extremely difficult and extraordinary situation being suffered by the business community of entire Pakistan.

    “SBP’s refinance facility offers loans at an attractive interest rate of just 3 percent but many people simply don’t want to pay any interest as it is strictly prohibited in Islam. Hence, the State Bank must look into the possibility of launching another refinance facility with zero percent markup which would certainly provide huge support to the business community in distress”, he added.

  • FBR bans use of information system till budget announcement

    FBR bans use of information system till budget announcement

    ISLAMABAD: Federal Board of Revenue (FBR) has put a ban on using information system from June 11, 2020 till announcement of budget 2020/2021, which is schedule for June 12, 2020.

    In an office order, the FBR said that due to budget announcement on June 12, 2020 restrictions on the access of servers/information system running at FBR Headquarters will come in force on June 11, 2020 from 8:00am till the end of budget speech.

    The FBR said that message and engagement features will be disabled and would not be accessible for the internal users of the FBR house.

    Users located in the FBR house premises would only be limited in routing/marking their correspondence in the Wings located within FBR House. However, external users such as RTOs/LTUs/Customs collectorates would be able to mark their correspondence to the internal users/Wings of the FBR.

    The FBR said that access to the system for correction of disposition list, online application of leave and other facilities will be completely banned for field formations.

    However, FBR’s e-Portal/server will remain accessible for authorized users outside FBR headquarter premises but no one within FBR HQ will be allowed to access FBR e-portal during budget exercise.

    STARR and Sales Tax systems/services will remain inaccessible for FBR HQ users, however, authorized users/outside FBR HQ premises will be allowed to access the system/servers.

    While the local network of PRAL HQ and FBR HQ will remain operational individually, transfer to any files/documents from FBR HQ network to PRA HQ network vice versa will be banned.

    Internet services in FBR HQ will remain unavailable in FBR HQ till conclusion of budget speech.