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  • FATF advises Pakistan to continue on action plan implementation

    FATF advises Pakistan to continue on action plan implementation

    ISLAMABAD: Financial Action Task Force (FATF) in its plenary meeting on Friday advised Pakistan to continue to work on implementing its action plan to address its strategic deficiencies.

    The meetings of Financial Action Task Force (FATF) took place at OECD, Paris from February 17-22, 2019 to review the compliance of a number of countries with the international standards on Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT).

    Pakistan was earlier placed by FATF in its Ongoing Compliance Document in view of an Action Plan undertaken by it to strengthen its CFT Regime.

    The FATF reviewed the progress made by Pakistani authorities concerned with CFT role, based upon an analysis carried out by Asia-Pacific Joint Group.

    The FATF noted that Pakistan took several steps to implement the Action Plan including by undertaking Risk Assessment of Terrorism Financing and Cash Smuggling in the country.

    The FATF advised Pakistan for continue work on action plan, included:
    (1) adequately demonstrating its proper understanding of the TF risks posed by the terrorist groups above, and conducting supervision on a risk-sensitive basis;

    (2) demonstrating that remedial actions and sanctions are applied in cases of AML/CFT violations, and that these actions have an effect on AML/CFT compliance by financial institutions;

    (3) demonstrating that competent authorities are cooperating and taking action to identify and take enforcement action against illegal money or value transfer services (MVTS);

    (4) demonstrating that authorities are identifying cash couriers and enforcing controls on illicit movement of currency and understanding the risk of cash couriers being used for TF;

    (5) improving inter-agency coordination including between provincial and federal authorities on combating TF risks;

    (6) demonstrating that law enforcement agencies (LEAs) are identifying and investigating the widest range of TF activity and that TF investigations and prosecutions target designated persons and entities, and persons and entities acting on behalf or at the direction of the designated persons or entities;

    (7) demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions and enhancing the capacity and support for prosecutors and the judiciary; and

    (8) demonstrating effective implementation of targeted financial sanctions (supported by a comprehensive legal obligation) against all 1267 and 1373 designated terrorists and those acting for or on their behalf, including preventing the raising and moving of funds, identifying and freezing assets (movable and immovable), and prohibiting access to funds and financial services;

    (9) demonstrating enforcement against TFS violations including administrative and criminal penalties and provincial and federal authorities cooperating on enforcement cases;

    (10) demonstrating that facilities and services owned or controlled by designated person are deprived of their resources and the usage of the resources.

    The FATF urged Pakistan to swiftly complete its action plan, particularly those with timelines of May 2019.

  • SBP announces freight support for sugar export

    SBP announces freight support for sugar export

    KARACHI: State Bank of Pakistan (SBP) on Friday said that it will disburse freight support payments to sugar mills in Punjab Province at variable rates to be calculated on daily basis as per prescribed formula.

    The rates would be based on white sugar price index published by International Sugar Organization (https://www.isosugar.org/prices.php).

    Further, the international sugar price on the date of sugar export quota allocation will be applicable for calculation of rate of freight support irrespective of the export price, the SBP said.

    In a circular, the central bank invited attention of banks to EPD Circular Letter No. 22 dated December 18, 2018 regarding export of sugar.

    In this regard, ADs may find enclosed letter No. FD(W&M)2-3/2018 dated January 31, 2019 (Annexure-I) received from Finance Department, Government of the Punjab regarding release of funds for freight support on export of sugar subject to terms and conditions mentioned therein.

    The SBP advised the banks to process the cases of eligible sugar mills for cash freight support against the export of sugar as per following mechanism:

    Banks will forward the shipment-wise requests of sugar mills on prescribed format through their respective Departmental/Business/Group Heads to the Director, FEOD, SBP-BSC, Head Office, Karachi or the Chief Manager, Field Office of SBP-BSC, as the case may be, for claiming freight support quoting the reference of this circular letter along with the attested / authenticated copies of the following documents:

    FEOD’s approval letter for allocation of sugar export quota.

    Manual Form-E/Electronic Form-E (EFE).

    Goods Declaration Form (GDF).

    Bill of Lading/ Truck Receipt/ Railway Receipt. In case export has been made through House Bill of Lading, it must be accompanied by relevant Master Bill of Lading.

    Commercial / Customs Invoice.

    Export Proceeds Realization Certificate and / or Advance Payment Voucher properly showing utilization. Where shipment has been made against Advance Payment, shipping documents must have been submitted by the AD under Para 27, Chapter 12 of F.E Manual – 2018.

    Freight support will be paid to sugar mills on first come first served basis. Freight support will be allowed only after full realization of export proceeds against E-Form.

    Exporters must ship the sugar within 60 days from the date of FEOD’s approval regarding quota allocation to be eligible for freight support. Both date of approval and date of shipment are included in counting of the 60 days period. For shipment by sea, the date of shipment is the “Shipped on Board” date on Bill of Lading. For shipment by land route, the “Out of Charge” date will be considered as the date of shipment.

    It is reiterated that in case of non-performance within the stipulated time against the quota allocated by FEOD, ADs will recover a penalty of 15% of total contract value from the exporter and deposit the same with the FEOD, SBP-BSC, Head Office, Karachi through DD/ PO in favor of Government of Pakistan. In case of partial shipment, the penalty shall be recovered by the AD proportionately. Further, sugar mills/ exporters who are defaulters of banks will not be allowed to export sugar/ paid freight support.

    Sugar mills will approach the respective office of SBP-BSC through their AD claiming the freight support within 60 days from realization of export proceeds or date of shipment, whichever comes later. Further, both dates of submission of claim and realization of export proceeds or date of shipment, whichever applicable, will be considered in calculating number of days. No claims will be entertained after aforementioned time period.

    SBP-BSC will return discrepant claim to the respective AD and the same must be resubmitted after removing the discrepancies within 30 days from the date of SBP-BSC’s letter (both dates inclusive), after which no such application will be entertained.

    Only such sugar mills having presence in Punjab and submitting certificate from the office of Cane Commissioner Punjab at the time of allocation of sugar export quota will be eligible for sugar freight support.

    Approved claim will be disbursed to the respective AD in its account maintained with SBP-BSC for onward credit to the exporter’s account within 24 hours of disbursement.

    Format of application by the sugar mills (Annexure-II) and the undertaking by AD (Annexure-III) are enclosed.

    Incomplete requests shall not be considered, the SBP said.

  • SBP launches three Sharia compliant refinancing schemes for SMEs

    SBP launches three Sharia compliant refinancing schemes for SMEs

    KARACHI: State Bank of Pakistan (SBP) has issued three Shariah Compliant Refinance Schemes that are expected to provide level playing field to the Islamic banking industry, a statement said on Friday.

    Currently, SBP offers various subsidized refinance facilities to the banks / DFIs to channelise the funds into priority sectors.

    It is worth mentioning here that Shariah compliant Islamic Export Refinance facility and Islamic long term financing facility for the exporters are available to the Islamic banking industry.

    However, addition of Shariah compliant financing facility for Renewable Energy, financing facility for storage of agricultural produce and Refinance facility for modernization of SMEs will meet the long awaited demand of the industry, especially for the Agriculture and SME sectors.

    Mudarabah based facilities would provide long term cheaper liquidity to the end users. The financing under Islamic financing facility for Renewable Energy will be available in two categories.

    These are (i)prospective sponsors desirous of setting up renewable energy power projects with capacity ranging between 1 – 50 MW and (ii) consumers willing to install facility using renewable energy source for generation of electricity ranging between 4 KW – 1 MW for own use and/or for supplying to the distribution company.

    Islamic Financing facility for storage of agricultural produce will be available for setting up silos, warehouses and cold storages. Refinance facility for modernization of SMEs will be available for purchase of new imported/ local plant & machinery for SMEs.

  • KSE-100 index sheds 55 points

    KSE-100 index sheds 55 points

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended down by 55 points on Friday due to lack of interest by investors.

    The index closed at 40,016 points as against 40,070 points showing a decline of 55 points.

    Analysts at Arif Habib Limited said that with a lack of fanfare and excitement, the market finally ended the week in red.

    Banking sector realized the most volumes (20 million), followed by Chemical Sector (8.7 million).

    Among the banking sector, UBL hit lower circuit again with a traded volume of 4.2 million shares at lower circuit.

    Following the bearish sentiment, BOP, NBP and HBL also traded in red.

    NBP’s announcement of financial results sans dividend failed to impress the investors, which resulted in stock trading at lower than yesterday’s closing.

    Overall, the index went down by 279 points, however, recovery of around 200 points was seen by end of session.

    Sectors contributing to the performance include Banks (-99 points), Miscellaneous (-26 points), E&P (+23 points), Autos (+20 points).

    Volumes declined from 103 million shares to 98 million shares (-4 percent DoD). Average traded value also declined by 10 percent to reach US$ 39 million as against US$ 44 million.

    Stocks that contributed significantly to the volumes include BOP, PAEL, OGDC, LOTCHEM and UBL, which formed 26 percent of total volumes.

    Stocks that contributed positively include MCB (+26 points), OGDC (+16 points), HUBC (+13 points), THALL (+13 points), and MEBL (+12 points).

    Stocks that contributed negatively include UBL (-77 points), PSEL (-26 points), HBL (-22 points), ENGRO (-16 points) and HMB (-15 points).

  • Rupee gains against dollar for third consecutive day

    Rupee gains against dollar for third consecutive day

    KARACHI: The Pak Rupee gained for the third consecutive day against dollar on Friday owing to shrinking current account deficit and foreign inflows.

    The rupee ended with gain of eight paisas to end at Rs138.55 to the dollar as compared with previous day’s closing of Rs138.63 in interbank foreign exchange market.

    The rupee maintained gains for the third consecutive day as exchange rate was reached to Rs138.92 to the dollar on February 19, 2019.

    Currency experts said that the improved inflows of workers remittances and narrowed current account deficit improved the local currency.

    The interbank foreign exchange market was initiated in the range of Rs138.70 and 138.75.

    The market recorded day high of Rs138.70 and low of Rs138.52 and closed at Rs138.55.

    Pakistan’s current account deficit has narrowed by 16.8 percent to $8.424 billion owing to declining imports and improved foreign remittances.

    According to statistics released by State Bank of Pakistan (SBP) on Thursday, the current account deficit narrowed to $8.424 billion during July – January 2018/2019 as compared with the deficit of $10.124 billion in the corresponding period of the last fiscal year.

    The exchange rate in open market was remained flat.

    The buying and selling of dollar was recorded at Rs138.50/Rs138.90 from previous day’s closing of Rs138.50/139.00 in cash ready market.

  • FBR issues tax directories of parliamentarians, companies and individuals

    FBR issues tax directories of parliamentarians, companies and individuals

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued tax directories of parliamentarians and general taxpayers including companies in order to public the information about contribution of different segments of taxpayers.

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  • Classes of taxpayers require sales tax registration

    Classes of taxpayers require sales tax registration

    KARACHI: Federal Board of Revenue (FBR) has listed classes of taxpayers, who are required to get sales tax registration to declare their monthly transactions to the tax authorities.

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  • Rupee advances against dollar in early trade

    Rupee advances against dollar in early trade

    KARACHI: The Pakistani Rupee (PKR) extended its gains against the US Dollar in early trading on Friday, buoyed by a significant reduction in the country’s current account deficit, according to currency dealers.

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  • Income Tax Ordinance 2001: procedure for claiming refund, additional payment for delay

    Income Tax Ordinance 2001: procedure for claiming refund, additional payment for delay

    KARACHI: A commissioner of Inland Revenue is responsible for making payment at KIBOR plus 0.5 percent per annum for late payment of income tax refund.

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  • Amendments to help Pakistan in controlling offshore tax evasion, avoidance: Vishno Raja

    Amendments to help Pakistan in controlling offshore tax evasion, avoidance: Vishno Raja

    KARACHI: Amendments to Income Tax Ordinance, 2001 will help Pakistan in controlling offshore tax evasion and avoidance.

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