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  • Equity market gains 208 points amid buying activities

    Equity market gains 208 points amid buying activities

    KARACHI: The equity market recovered 208 points on Tuesday due to buying activities in blue chips.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,130 points as against 36,922 points showing an increase of 208 points.

    Analysts at Arif Habib Limited said that the market showed some signs of recovery today, particularly in blue chips which touched a low again today but saw buying activity, which pulled the index up.

    Cement stocks such as LUCK, DGKC showed some resilience and closed well above day’s low.

    MLCF on the contrary showed major activity on lower circuit and closed at that level.

    Cement sector led the volumes with 40 million shares contributed mainly by MLCF (15.6 million).

    Sectors contributing to the performance include Power (+84 points), Banks (+56 points), O&GMCs (+38 points), Pharma (+20 points), E&P (+16 points), Cement (-61 points).

    Volumes increased significantly from 106.9 million shares to 160.5 million shares (+50 percent DoD). Average traded value also increased by 45 percent to reach US$ 41.7 million as against US$ 28.8 million.

    Stocks that contributed significantly to the volumes include UNITYR1, MLCF, FCCL, KEL and WTL, which formed 37 percent of total volumes.

    Stocks that contributed positively include HUBC (+61 points), UBL (+37 points), PSO (+23 points), NBP (+19 points), and ENGRO (+17 points). Stocks that contributed negatively include LUCK (-25 points), HBL (-16 points), FFC (-13 points), FCCL (-11 points) and DAWH (-11 points).

  • Rupee ends firmer in range bound trading

    Rupee ends firmer in range bound trading

    KARACHI: The Pak Rupee ended firmer against dollar on Tuesday in a range bound trading activity.

    The rupee ended Rs141.38 to the dollar from previous day’s closing of Rs141.39 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 Rs141.38 and closed at Rs141.38.

    The rupee however gained in open market against the greenback.

    The buying and selling of dollar was ended at Rs142.30/Rs142.70 from previous day’s closing of Rs142.50/Rs142.50 in cash ready market.


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  • CDC freezes shares of Ansari Sugar Mills

    CDC freezes shares of Ansari Sugar Mills

    KARACHI: Central Depository Company of Pakistan (CDC) on Tuesday frozen ordinary shares of Ansari Sugar Mills following placement of the company on defaulter segment by Pakistan Stock Exchange (PSX).

    A notification issued by the CDC informed that consequent to placement of Ansari Sugar Mills Limited on the defaulter’s segment by the PSX with effect from April 08, 2019 as informed by PSX dated April 05, 2019 with advise to CDC to freeze the ordinary shares of issuer held in CDS accounts of sponsors, directors and senior management officers of issuer, CDC has frozen the ordinary shares in accordance with the CDC regulations.

    The ordinary shares shall remain frozen in CDS accounts of persons till further notice.

  • PTCL facilitates payment for Netflix subscription

    PTCL facilitates payment for Netflix subscription

    KARACHI: Pakistan Telecommunication Company Limited (PTCL) has facilitated its customers for pay subscription of Netflix, the world’s leading internet entertainment service, in their monthly broadband bills.

    A statement on Monday said that the PTCL had partnered with Netflix. “This partnership will enable PTCL customers to easily pay for their Netflix subscription as part of their monthly PTCL broadband bills, eliminating the need to share additional credit card or debit card details.”

    New and existing PTCL customers can avail this service by simply registering at https://www.ptcl.com.pk/netflix.

    Speaking on this collaboration, Moqeem ul Haque, Chief Commercial Officer, PTCL, said, “Many PTCL customers enjoy the stellar content catalogue of Netflix through our broadband service that offers seamless high speed internet connectivity.

    “This encouraged us to offer them a convenient way to pay for their Netflix subscription through their monthly PTCL bills.”

    Speaking on the partnership, Tony Zameczkowski, Vice President, Business Development, Asia, Netflix, said: “The growing broadband internet ecosystem in Pakistan is fueling the rise of video consumption in the country.

    “Our association with PTCL enables their customers to seamlessly pay for their Netflix subscription, and enjoy the wide breadth of content from across the world on any internet connected screen.”

    PTCL provides digital lifestyle to its customers through its vast array of products and services, including international collaborations like Netflix that bring ease and convenience to the subscribers.

  • Many withholding tax provisions to be abolished in budget

    Many withholding tax provisions to be abolished in budget

    ISLAMABAD: The government has intended to abolish large number of withholding tax provisions in the budget.

    According to Medium-Term Economic Framework (MTEF), which was launched by Finance Minister Asad Umar on Monday, pointed out that withholding taxes become regressive if people who are not liable to income taxes and/or if firms treat them as consumption taxes and are generally passed them on to the consumers, badly impacting the progressivity of the tax.

    As such, the tax needs some fundamental reforms.

    “As a first step, the government intends to discontinue a large number of low yielding withholding taxes in the next year’s budget.”

    The framework also highlighted about the taxation and valuation of immovable properties.

    Since the federal government collects tax on income from property and provincial and local governments collect property and transaction tax on immovable property, all parties have an interest in proper documentation and valuation of property.

    “The government intends to pursue a coordinated approach to taxation and valuation of the real estate sector in a way to collect optimum revenue from it without discouraging investment.”

  • FBR empowered to use third-party information for identifying tax dodgers: MTEF

    FBR empowered to use third-party information for identifying tax dodgers: MTEF

    ISLAMABAD: Federal Board of Revenue (FBR) has been empowered for using third-party information to identify tax dodgers.

    The Medium-Term Economic Framework (MTEF), which was launched on Monday by the Finance Minister Asad Umar, the government had promulgated a law so as to allow FBR to access third-party data bases.

    The MTEF pointed out building data analytics capacity to utilize available information. “This involves identifying and identifying and pursuing individuals falling outside the tax net through the use of third-party information on consumption patterns utilizing data from income, income tax returns and expenditure data from various sources such as travel, bank account, car ownership, property ownership, children studying abroad, children studying in expensive schools etc.”

    Since FBR does not have adequate capacity to utilize these data using latest techniques available, it would be necessary to collaborate with researchers and experts to develop efficient and effective analytical tools.

    The government has evolved measures to strengthening tax enforcement and tax audits

    The framework said that tax enforcement has remained one of the weakest areas of tax administration.

    The government intends to overcome this shortcoming by building enforcement capabilities within FBR through staff training and an intensive use of information technology.

    In this regard, priority is being given to putting in place a track-and-trace system and strengthening the risk-based tax audits.

    The government also planned harmonizing the tax codes. The MTEF said that the government is well aware that some tax issues (e.g. non-harmonized sales tax rates across tiers of government, taxation of real estate, etc.) adds to the cost of doing business by requiring multiple tax returns to be filed in a single tax year.

    While working with the provincial governments in the National Finance Commission (NFC) framework, the federal government intends to harmonize the tax code and integrate tax processes through digitization and process automation.

    In addition, it intends to establish a mechanism to fast-track resolution of tax disputes, thus reducing compliance cost.

    This will reduce the cost of doing business to some extent and make it harder for taxpayers to play the tax administrations off against each other to evade taxes.

    An NFC sub-group has already been tasked with formulating recommendations to simplify payment of taxes to enhance ease of doing business in taxation area.

  • All tax exemptions to have sunset clause: MTEF

    All tax exemptions to have sunset clause: MTEF

    ISLAMABAD: The ministry of finance on Monday launched Medium-Term Economic Framework (MTEF), which envisaged that all permanent exemptions to be withdrawn or have a sunset clause.

    The MTEF said that presently tax policy has a predominant revenue focus and as such is likely to create distortions in the economy which can adversely affect the growth and equity objectives.

    In addition, even the revenue objective is compromised by large scale exemptions.

    To correct this shortcoming, the government intends the following:

    i) Enact a law to ensure that no tax exemption is allowed through law or notification without an estimate of its cost independently by the tax department as well as the concerned ministry. Such cost will be made public before notification of the exemption.

    ii) Review all existing exemptions, with the purpose of eliminating as many of those as possible. Even if an exemption is to be retained its cost will be determined and made public. Ministry of Finance to publish annually a statement of tax expenditures to show how much revenue is being foregone due to exemptions.

    iii) Ensure that all exemptions, existing or newly proposed, will have a sunset clause (ideally not more than 5 years).

    iv) Publish a list of all government owned, quasi-government and government-linked enterprises availing tax exemption/concession in any way along with quantification of the tax expenditure. In addition, a plan be prepared for phasing out of these concessions.

    v) Withdraw FBR powers to issue SROs to grant exemptions. This power will vest only with the Parliament.

    vi) Ensure that all non-procedural existing SROs will expire at the end of the fiscal year. Steps taken over the last two years to incorporate all exemptions granted through SROs to be made part of the body of law.

  • SBP to be given independence for money market discipline

    SBP to be given independence for money market discipline

    ISLAMABAD: The State Bank of Pakistan (SBP) to be given operation and institutional independence for bringing discipline in money market.

    According to ‘Medium-Term Economic Framework’ launched by Finance Minister Asad Umar on Monday, the government is considering giving the SBP greater operation and institutional independence to bring greater discipline in money market and exchange rate regimes.

    It said that the State Bank Act would be amended to further strengthen the autonomy of SBP and clarify its objectives and functions.

    “Specifically, the government, in consultation with SBP and other stakeholders, will finalize proposals to facilitate implementation of flexible inflation targeting as envisage in SBP Vision 2020,” it added.

    The existing exchange rate arrangements and possible limits of government borrowing from SBP will also be clarified in line with prioritizing price stability as an objective of monetary policy.

    The framework said that the exchange rate is one of the most important prices and is determined by underlying economic fundamentals.

    These fundamentals ensure that it would adjust to its equilibrium value over the long run.

    As mentioned earlier, Pakistan’s approach over the last two years to manage the exchange rate was structurally flawed, as it focused more on the overriding desire to avoid unnecessary volatility in the foreign exchange market and avoid fiscal cost of exchange rate adjustment, even when it was needed.

    “This led to persistent overvaluations of rupee contributing to a massive increase in trade and current account deficits; which was the central to the macroeconomic instability faced by the country today.”

    The recent pressures on external fronts are a manifestation of the misaligned exchange rate for the past two years.

    Against this background, the principal idea now is to enshrine an exchange rate policy which enhances competitive of Pakistani exports, by avoiding the persistent overvaluation of rupee.

    Accordingly, the Pakistani rupee has depreciated around 33.4 percent since November 2017. The depreciation has moved the exchange rate to a level, which is more reflective of economy’s medium-term needs and market conditions while at the same time minimizing disorderly fluctuations.

    The near-term goal of this policy is to move towards an exchange rate regime which SOEs not allow overvaluation of rupee on persistent basis.

  • Equity market plunges by 600 points

    Equity market plunges by 600 points

    KARACHI: The equity market plunged by 600 points on Monday owing to reports of possible border confrontation between Pakistan and India.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,922 points as against 37,522 points showing a decline of 600 points.

    Analysts at Arif Habib Limited said that negative news flow over the weekend, especially possible border confrontation between Pakistan and India, as highlighted by Foreign Minister, in addition to macro-economic woes added to deficit of Investor confidence.

    The index slid by 783 points during the session and closed 600 points down.

    Cement blue chips hit lower circuits, especially LUCK, DGKC and MLCF that contributed to decline in KSE100. Cement Sector topped volumes table with 20 million shares, followed by Power and Banks. Among Scrips, KEL registered highest traded volume of 10.9 million shares followed by FCCL (9.5 million).

    Sectors contributing to the performance include Cement (-120 points), Banks (-79 points), Fertilizer (-59 points), O&GMCs (-59 points), E&P (-58 points).

    Volumes increased slightly from 101.7 million shares to 106.9 million shares (+5 percent DoD). Average traded value also increased by 9 percent to reach US$ 28.9 million as against US$ 26.6 million.

    Stocks that contributed significantly to the volumes include KEL, FCCL, UNITYR1, BOP and MLCF, which formed 38 percent of total volumes.

    Stocks that contributed positively include HUBC (+17 points), HBL (+10 points), NESTLE (+9 points), FABL (+6 points), and IGIHL (+3 points). Stocks that contributed negatively include LUCK (-56 points), ENGRO (-26 points), MCB (-24 points), SEARL (-22 points) and PSO (-22 points).

  • Rupee ends down by nine paisas

    Rupee ends down by nine paisas

    KARACHI: The Pak Rupee ended down by nine paisas against dollar on Monday after gaining value earlier in the day.

    The rupee ended Rs141.39 to the dollar from last Friday’s closing of Rs141.30 in interbank foreign exchange market.

    The interbank foreign exchange was initiated in the range of Rs141.10 and Rs141.20. The market recorded day high of Rs141.40 and low of Rs141.20 and closed at Rs141.39.

    The exchange rate in open market was remained unchanged.

    The buying and selling of dollar was recorded at Rs142.50/Rs142.80 the same last Saturday’s level in cash free market.


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