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Equity market ends down by 86 points on falling global prices

KARACHI: The equity market has lost 86 points on Monday owing to lowering international oil prices and bearish regional markets, analysts said.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 28,023 points as against 28,110 points showing a decline of 86 points.

Analysts at Arif Habib Limited said that the market opened on a negative note today with -127 points and continued trending down throughout the session to realize a loss of -642 points.

Slump in international crude oil prices as well as bearish performance of Regional Stock markets caused selling pressure at PSX. Cement sector came out as the winner, following on the trajectory shown on the last trading day on account of possible relief package for real estate construction sector.

Resultantly, MLCF hit upper circuits, whereas DGKC also traded near upper circuit. Due to significant price reductions during the later half of the outgoing month also gave hope to the Investors of a reduction in monthly CPI number.

Power sector led the volumes with 41 million shares, followed by Cement (29.5 million) and Banks (18 million). Among scrips, KEL topped the chart with 35 million shares, followed by MLCF (9.6 million) and HASCOL (7.2 million).

Sectors contributing to the performance include E&P (-133 points), Banks (-95 points), Tobacco (-19 points), Cement (+136 points), Power (+47 points), Pharma (+12 points).

Volumes declined from 169.5 million shares to 159.4 million shares (-6 percent DoD). Average traded value also by 0.3 percent to reach US$ 25.4 million as against US$ 25.6 million.

Stocks that contributed significantly to the volumes include KEL, MLCF, HASCOL, UNITY and SMBL, which formed 41 percent of total volumes.

Stocks that contributed positively to the index include LUCK (+65 points), FFC (+38 points), HUBC (+32 points), DGKC (+18 points) and FCCL (+17 points). Stocks that contributed negatively include PPL (-73 points), OGDC (-46 points), UBL (-35 points), UBL (-20 points), and PAKT (-19 points).

March 30, 2020
PCDMA urges FBR to withdraw notices amid coronavirus lockdown

KARACHI: Commercial importers have resented to the notices sent by Federal Board of Revenue (FBR) despite realizing severe economic crisis amid lockdown in the country to control spread of coronavirus.

Pakistan Chemicals & Dyes Merchants Association (PCDMA) chairman and former director Karachi Stock Exchange Amin Yousuf Balgamwala in a statement on Monday demanded to waive all notices including income tax, sales tax, WHT and all proceeding in this regard for two months due to the worst economic crisis, as due to coronavirus pandemic, all the business activities have stopped and commercial importers are already facing huge financial crises.

Balgamwala said we are surprised on receiving FBR notices, as whole country is lockdown for prevention of coronavirus pandemic, so chairman FBR to issue directives to chief commissioner and all RTOs to stop harassment to commercial importers, so that import activities could be restored after the lockdown period.

“If wheel of trade and industry will continue to rotate, will create more opportunities for employment as the country develops,” he said

PCDMA chairman further said that if all notices including income tax, sales tax, WHT and other proceeding not stopped for at least 2 months then the textile industry will be badly affected which is the backbone of the domestic economy as commercial importers are the largest means of providing raw materials to the textile industry to continue production activities.

Amin Yusuf Balgamwala also demanded to defer the condition of the CNIC on the sale of goods to unregistered persons for six months so that the business community, especially small traders should be protected from destruction.

March 30, 2020
FBR seeks exemption for its officials during coronavirus lockdown

ISLAMABAD: Federal Board of Revenue (FBR) on Monday sought exemption for its officials during lockdown to prevent spread of coronavirus pandemic.

In a circular the FBR said that in view of the COVID-19 pandemic, the federal and provincial governments had introduced various measures to contain the spread of the virus, which included lockdowns across the country.

The FBR said that the personnel of essential services and few other agencies had been exempted from these lockdowns.

FBR, in this last quarter of the financial year, through its multiple field formations (Inland Revenue/Customs) across the country is making all out efforts to consolidate and ensure maximum revenue collection, the FBR said.

Needless to say, money/funds are urgently required by the federal and provincial governments to wage this war against the coronavirus pandemic.

The revenue body said in these circumstances, it is imperative that all field offices of FBR, engaged in revenue collection remain open and are fully operational.

However, due to the lockdowns enforced through the country, the officers and staff are unable to reach their offices and perform their duties.

This has therefore, critically effected the operational preparedness of this organization and is also adversely affecting the revenue collection.

The FBR asked all relevant federal and provincial agencies to exempt from lockdown the officers/staff of FBR who are in possession of permission letters from their respective chief commissioner-IR / Chief Collector Customs/Heads of Operational offices to reach their offices in order to perform their duties.

March 30, 2020
FBR extends time limit to 25 days for GD filing

KARACHI: Federal Board of Revenue (FBR) on Monday extended time limit for filing goods declaration to facilitate traders and importers, who were facing difficulties due to lockdown.

The FBR extended the time limit for filing of goods declaration from the existing 10 days of arrival of goods to further 15 days (total 25 days) for all Import General Manifest (IGMs) filed between March 17, 2020 and April 07, 2020.

The FBR said that the customs collectorates across the country were operating normally, however, on account of the ongoing lockdown by provincial governments to address the prevailing pandemic of COVID-19, the importers and clearing agents were facing hardship in filing of goods declaration within the time limit prescribed under Customs Act, 1969.

The consequent penalty on this account is causing undue hardship to the traders as the circumstances for late filing, which was beyond their control.

The FBR said that it had received requests from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) for extension in the time limit for filing of goods declaration.

March 30, 2020
Rupee ends down by 60 paisas against dollar

KARACHI: The Pak Rupee ended down by 60 paisas against dollar on Monday on uncertain global and domestic financial conditions.

The rupee ended Rs166.14 to the dollar from last Friday’s closing of Rs165.54 in interbank foreign exchange market.

Currency analysts said that the rupee was remained under pressure due to outflow of foreign investment due to easing in monetary policy stance and global financial crisis after large scale spread of coronavirus.

The State Bank of Pakistan (SBP) cumulatively brought down the policy rate by 2.25 percent to 11 percent considering severe impact of coronavirus on the economy.

However, lowering the policy rate the foreign investors opted to sell their exposures in treasury bills after the reduction in the policy rate.

Currency experts said that the lower international oil prices however would help the local currency to recovery in the coming days as Pakistan’s import bill would reduce significantly.

March 30, 2020
Shanghai Electric allows to make offer for K-Electric till June 26

KARACHI: Securities and Exchange Commission of Pakistan (SECP) has granted extension of 90 days to make public announcement of offer by Shanghai Electric Power Company Limited to acquire shares of K-Electric.

In an announcement on Monday, K-Electric with reference to the public announcement to acquire 66.4 percent shares of K-Electric Limited made by the acquirer on September 30, 2019, Arif Habib Limited is acting in the capacity of Manager to the Offer for the acquisition.

As part of the acquisition process, the acquirer had requested an extension of 90 days in making public announcement of offer which was to be made by March 28, 2020 as per the law.

In this regard SECP granted extension of 90 days up to June 26, 2020.

March 30, 2020
Commissioner (Appeals) barred from issuing adverse orders

LAHORE: Punjab Revenue Authority (PRA) has barred commissioner appeals from issuing any adverse order against taxpayers, who failed to appear due to lockdown for prevention of coronavirus.

The PRA in an office order dated March 25, 2020 said that in view of the prevailing circumstances in the wake of coronavirus spread, no adverse orders may be passed due to non-appearance of any party, lawyer or authorized representatives, as the case may be, fixed for hearing before the Commissioner (Appeals), Punjab Revenue Authority with immediate effect and till further orders.

In another office order, the PRA said that in order to facilitate the taxpayers, lawyers, chartered accountants and tax consultants/authorized representatives because of the closure of office due to coronavirus outbreak, it has been urged upon the taxpayers to file their appeals before the Commissioner (Appeals), Punjab Revenue Authority electronically.

For this purpose, the taxpayers may submit their appeals through emails at [email protected]

The taxpayers have also been advised that the appeals may be filed/sent through courier or mail as well.

March 29, 2020
FBR urged to defer CNIC condition for six months

KARACHI: Business community has urged Federal Board of Revenue (FBR) to defer CNIC condition on purchases above Rs50,000 for at least six months.

In a statement Saquib Fayyaz Magoon, Convener of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) standing committee on Sales Tax and Chairman Indenters Association of Pakistan (IAOP), urged Government to pay attention on economic crises due to lockdown for prevention of coronavirus pandemic and has demanded Prime Minister to defer CNIC Condition for 6 months on sale of goods to unregistered persons in view of the current economic crisis.

Magoon Said due to situation caused by the coronavirus, all payments to exporters have been stopped and export orders canceled while the economic activities have also stopped. While there has been a severe crisis of cash flow in the market, therefore, by defer the condition of the CNIC will improve the cash flow situation, otherwise there will be another major financial crisis.

He also requested the government to accept sales tax returns without CNIC and said that in the current economic crisis, now we will depend largely on the local consumer industry, who are already in crisis due to the CNIC condition.

Prime Ministers adviser on commerce Abdul Razzaq Dawood in which he assured that cash flow would not be affected by the Coronavirus.

So if he wants the cash flow not affected then CNIC Condition must defer for minimum six months so that business activities can be restored as usual.

Magoon pointed to the difficulties facing the businessman community over the ban on courier companies due to the lockdown, said the original document of import shipment could not be reached in the banks.

So as long as the lockdown is in place, the State Bank should issue clear instructions to the banks that the EIF be approved on the copy of the document to ensure uninterrupted clearance of imported goods. Because the original documents are required for EIF approval.

Due to not being provided original documents is causing constraints and importers are not able to file a GD which is causing consignment storage and shed charges.

Saquib Fayyaz Magoon appealed the Prime Minister Imran Khan that in view of the serious situation caused by the coronavirus, a directive should be issued to the State Bank that the EIF be approved on the copy of the document at the time of payment by the importers to the banks.

March 29, 2020
Date for sales tax payment may not to be extended

ISLAMABAD: Federal Board of Revenue (FBR) has said it will not extend the date for sales tax payment beyond March 31, 2020.

The FBR spokesman said that the date was extended for duty and tax payment in order to facilitate taxpayers amid outbreak of coronavirus and subsequent lockdown.

Through a notification on March 18 the FBR extended the last date for submission of sales tax and federal excise return for the tax period of February 2020.

The FBR extended the date of submission of sales tax and federal excise return up to March 25 for the tax period of February 2020, which was due on March 18, 2020.

The FBR on March 24 issued another circular to further extend the date for submission of sales tax and federal excise returns along with annexures for the tax period of January 2020 and February 2020.

The FBR allowed extension return filing date for January 202 up to April 15, 2020. This return was due on February 18, 2020 and was extended up to February 28, 2020.

For the month of February 2020, the date for payment of sales tax and federal excise duty has been extended up to March 03, 2020 which was due on March 15, 2020.

The submission of sales tax and federal excise return has been further extended up to April 15, 2020, which was due on March 18, 2020 and it was extended up to March 25, 2020.

March 28, 2020
SBP facilitates cheque based transactions amid COVID-19 pandemic

KARACHI: The State Bank of Pakistan (SBP) has issued directives for cheque based transactions in the wake of coronavirus pandemic.

The SBP on Saturday issued a notification related to facilitation regarding paper-based clearing operations in the wake of COVID-19.

The central bank said that to combat the potential spread of COVID-19 pandemic by limiting person-to-person interactions and to provide ease of services to the customers, Banks/MFBs are allowed to provide the following services to their customers:

Direct Cheque Deposit Facility under which:

a) A crossed cheque may be presented by payee/beneficiary directly into the paying/drawee bank, instead of their bank branches as per the existing practice.

b) In this case, funds may be transferred by the paying/drawee bank either through RTGS customer fund transfer – MT102 or Over the Counter (OTC) IBFT or Bank’s internal online system (in case both payer & payee banks are the same).

c) Before debiting their customer’s account, the paying/drawee bank must take all necessary precautions including but not limited to customer call back or multifactor authentication to verify the authenticity/genuineness of the instrument and verification of their respective customers. Similarly, before crediting the customer account, the payee/beneficiary bank must ensure the authenticity of the customer’s credentials as well.

Doorstep Cheque Collection Facility under which Banks/MFBs may make arrangements to collect cheque from registered addresses of their customers upon their request.

Drop box Cheque Collection Facility under which customers may drop their cheques in drop boxes of their Banks, installed in selected branches.

Banks may allow their Corporates/Priority customers to send them the scanned image of the cheque along with relevant details of the Beneficiary either through registered emails or through mobile Apps of their banks to push funds from their accounts to the payee bank.

However, such arrangement must be duly agreed with the customer under proper Terms & Conditions along with complete disclosure of risks and liabilities.

The Paying/Drawee bank shall implement all necessary controls including call back confirmation or multifactor authentication to ascertain the authenticity and genuineness of the instrument and identity of the payee. Upon satisfactory validation, Paying/drawee bank may transfer funds to beneficiary bank using MT 102 of RTGS (PRISM).

The recommended modus opernadi for options 2 to 5 is attached at Annexure-A. However, banks are encouraged to implement additional risk mitigating measures as per their internal policies while offering these services to their customers.

Further, to minimize person-to-person interaction, Banks/MFBs may also make arrangements with the Clearing House (NIFT) for clearing their cheques through Image Based Clearing (IBC) functionality as per the agreed SOPs between NIFT and banks.

While transferring funds through RTGS, the concerned Banks/MFBs shall ensure compliance with relevant clauses of PSD Circular No. 3 of 2018 on “Electronic Fund Transfers Regulations”.

Further, Banks/MFBs are advised to follow all relevant laws, rules and regulations issued by SBP from time to time.

Above mentioned measures may be made part of campaigns to create awareness in order to promote the use of clearing options as per PSD Circular No. 2 of 2020.

March 28, 2020