Pkrevenue.com

Blog

  • PSX trading halts for fourth time

    PSX trading halts for fourth time

    KARACHI: The trading activities at Pakistan Stock Exchange (PSX) have been halted after indices fell below five percent.

    Experts said that the detection of new coronavirus cases in the country negatively impacted the stock market.

    While the expansion of this epidemic in the world especially the number of deaths increased substantially also discouraged the investors.

    The KSE-100 index fell by 1651 points and was at 34,410 at the time of halt. The market shall resume after 45 minutes.

    The trading has been halted during the past eight days following massive decline in indices.

  • BTB efforts help RTO-II Karachi to post unprecedented 60% growth: CCIR

    BTB efforts help RTO-II Karachi to post unprecedented 60% growth: CCIR

    KARACHI: The efforts of tax officials for broadening the tax base (BTB) helped Regional Tax Office (RTO)-II Karachi to achieve above 60 percent revenue collection growth in February 2020.

    (more…)
  • Coronavirus prevention: Clearing agents advised avoid unnecessary visits to Custom House

    Coronavirus prevention: Clearing agents advised avoid unnecessary visits to Custom House

    KARACHI: Customs clearing agents have been advised to avoid unnecessary visits to Custom House Karachi as a preventive measure against coronavirus.

    In a circular Karachi Customs Agents Association (KCAA) on Saturday, informed its members that the association had conducted meetings with the Model Customs Collectorate Appraisement & Facilitation (East) & (West) regarding outbreak of Novel Coronavirus (COVID-19) and decided to take appropriate precaution measures in order to avoid unnecessary visits and long sit-ins at visitor’s area of Custom House, Karachi.

    It is highly recommended for the general public to reduce exposure and limit the risk of spread/transmission of Novel Coronavirus.

    Members and their employees are advised to avoid unnecessary visits at Custom House Karachi and wear masks by following other safety instructions as already displayed on the notice boards at Custom House, Karachi.

    However, in case of any emergency meetings/hearings are required to be attended, a written applications by mentioning the reasons to the officers concerned should be submitted for the redressal of grievance.

    In case of any assistance members are advised to contact the CHO-Office of MCC Appraisement & Facilitation (East & West).

  • FBR starts obtaining CNIC information on purchases above Rs50,000

    FBR starts obtaining CNIC information on purchases above Rs50,000

    KARACHI: Federal Board of Revenue (FBR) has started obtaining CNIC information of buyers making purchases above Rs50,000 in order to realize sales tax and for broadening of tax base.

    Sources in FBR said that sales tax registered persons would provide details of Computerized National Identity Card (CNIC) of buyers making purchases above Rs50,000.
    The registered persons will provide the details of CNIC through their monthly sales tax return that is due on March 18, 2020 for the month of February 2020.

    The FBR made it mandatory for sales tax registered persons to obtain CNIC details of unregistered buyers. In this regard an amendment was made to Section 23 of Sales Tax Act, 1990 through Finance Act, 2019.

    The condition was made mandatory on supplies from August 01, 2019. However, on the objections from stakeholders including small traders and shopkeepers the condition was deferred till January 31, 2020.

    The sources said that the sales tax registered persons are required to obtain CNIC details of buyers from February 01, 2020 and provide the same information to the FBR through monthly returns of February 2020, which is due on March 18, 2020.

    They said that the condition is not applicable on ordinary customers.

    For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing.

    The sources said that in case seller was unable to obtain the CNIC information of buyer then in such case the registered person would be responsible.

    However, the FBR through Sales Tax General Order No. 106 dated October 04, 2019 issued clarification regarding CNIC condition.

    The FBR clarified that the CNIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the suppliers with conditions that the invoice should complies with statutory requirements.

    It is also mandatory that payment made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax, is deposited into the supplier’s declared business bank account.

    The CNIC provided by the purchaser is found authenticated by the National Data and Registration Authority (NADRA).

    The FBR also barred that CNIC/NTN provided was not of the employee of the seller or of his associates.

    The sources said that the tax authorities would impose penalty on registered persons on failure to comply with the requirement of obtaining CNIC.

  • OCAC suggests fortnightly POL prices revision

    OCAC suggests fortnightly POL prices revision

    KARACHI: The Oil Companies Advisory Committee (OCAC) has advised the government to review petroleum prices on fortnightly basis instead monthly basis.

    In a letter to Secretary Petroleum, the OCAC said that due to the declining petroleum products prices experienced in February and March 2020, the whole downstream oil industry was facing uncertainty and financial exposure.

    “As a consequence, upliftment from refineries and Oil Market Companies (OMCs) depots is depressed when there is also a huge trading exposure in imports,” it said, adding that needless to mention, the losses incurred and being incurred by oil industry due to fluctuation of Pak Rupee/ US Dollar parity is also over and above the pricing exposure.

    “In light of above to mitigate the situation in weeks and months ahead so as to avoid any undesirable situation in terms of imports shyness and availability of petroleum products, we proposes to switch the frequency of petroleum products pricing from monthly to fortnightly basis and if further needed to weekly basis.”

    It is pertinent to mention that fortnightly prices have also been successfully implemented in the past, the OCAC said.

    Recently, analysts at Topline Securities revised down earning forecast for Oil and Gas exploration companies over FY20E-22F by 18-33 percent due to: downward revision in international oil price assumption; incorporation of lower-than-expected 1HFY20 results; and likely delays in production from few fields mainly for MARI.

    The Energy Information Administration (EIA) has downward revised their oil price forecast by 33 percent and 13 percent to US$43 and US$55/bbl for 2020E and 2021F, respectively in the aftermath of deadlock over production cuts between OPEC and allied countries (mainly Russia). Saudi Arabia announced price discounts and production increase to 12.3mn bopd (current 9.8mn bopd) from Apr 2020 onwards.

    To note, crude oil prices (Arab Light) are down 46 percent to US$37/bbl since Dec 31, 2019.

    Concerns over epidemic Corona Virus Disease (COVID) is also weighing down on the global growth outlook and subsequently on oil demand. OPEC in its recent Mar 2020 report (released on Mar 11) has revised down World GDP growth target to 2.4 percent vs. earlier 3.0 percent for 2020.

  • KCCI for more stringent measures to fight coronavirus epidemic

    KCCI for more stringent measures to fight coronavirus epidemic

    The Karachi Chamber of Commerce and Industry (KCCI) has called upon the government to implement stricter measures in the battle against the coronavirus epidemic. Agha Shahab Ahmed Khan, President of KCCI, emphasized the need for enhanced efforts to combat the threat posed by COVID-19, urging both the government and the public to remain vigilant and proactive in containing the spread of the virus.

    (more…)
  • FPCCI calls for strategy to save national economy amid global meltdown on coronavirus epidemic

    FPCCI calls for strategy to save national economy amid global meltdown on coronavirus epidemic

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, has urged the government to outline strategy to save national economy in the wake of global meltdown on coronavirus epidemic.

    FPCCI president Mian Anjum Nisar in a statement on Saturday urged the government to take preventive measures and develop strategy to protect the pace of economic and trade progress of Pakistan from likely impacts of world economic slowdown apprehended by leading think tanks due to the recent global spread of the novel coronavirus.

    Globally, more than 145,682 people have been diagnosed with coronavirus. The death toll above 5436, in China death toll 3173, South Korea, mass testing has turned up over 6,000 cases and more than 60 deaths.

    Italy has confirmed more than 17660 cases, along with more than 1200 deaths. Iran has announced 514 deaths and 11364 cases. The United States confirmed 41 deaths from the outbreak, along with more than 1264 confirmed cases.

    Mian Anjum Nisar said that in order to safe national economic system from the impacts of slowdown of world economy due to coronavirus and other global economic challenges government should announce economic relief package to protect trade and industry of the country. He informed that the Europe is now the “epicentre” of the global coronavirus pandemic.

    The Europe Union (EU) is the second biggest trading partner of Pakistan where around 20 percent of Pakistani exports have duty-free access to the Europe, while 70 percent avails preferential treatment.

    FPCCI under the current scenario has organized a consultative session seeking feeding back from the stake holders on likely impact of this coronavirus on Pakistan’s foreign trade.

    The session was attended by Dy. Governor SBP Dr. Murtaza Syed, Dr. S.M. Qaiser Sajjad Secretary General, Dr. Samreen Sarfarz Pakistan Medical Association, Dr. Adil H. Haider Dean Aga Khan Medical University, Dr. Ijaz, health department of Sindh Government, Aga Fakhar Hussain Additional Secretary Industry & Commerce Sindh, Dr. Saeed SINA Welfare Trust, Prof. Dr. Zarna Wahid, Dow University of Health Sciences, Pakistan National Shipping Corportation and KPT. The session was chaired by Sheikh Sultan Rehman Vice President FPCCI.

    The chief of the apex trade body also informed that the US Congress has voted for a US $ 50 billion emergency funding package to fight the coronavirus. Several central banks around the world, including the U.S. Federal Reserve, have lowered interest rates to support their economies amid the coronavirus outbreak. Lowering interest rates make borrowing costs cheaper and could encourage business to take loans and spend which will in turn stimulate the economy. He further stated that the IMF is making available US $ 50 billion in emergency funding to help poor and middle-income countries.

    Mian Anjum Nisar President FPCCI emphasized that as the inflationary trend shows declining that support to reduce interest rates while on the other hand to boost and safe economic activity all segment of economy needs to be supported and facilitated to contribute in economic growth.

    Other- wise we will again face economic crises, lower industrial growth and shifting of industrial units in sick industry. Government should also reduce the cost of doing business and encourage the domestic & foreign investors to make investment in country at this critical time when the global economy is shrinking.

  • Weekly Review: coronavirus spread likely to haunt stock market

    Weekly Review: coronavirus spread likely to haunt stock market

    KARACHI: The spread of coronavirus likely to haunt the stock market in the coming week as it had already dented massively.

    Analysts at Arif Habib Limited said that with panic and uncertainty looming over the extension of Coronavirus, global markets are yet to ascertain long term impact.

    “We do highlight that international markets have fallen significantly from their all-time high levels whereas the local index had already undergone major correction prior to spread of the virus.”

    Announcement of Monetary Policy in the coming week remains a key event for the market, where we expect the SBP to cut the benchmark rate by 50-100 basis points, which can be a positive trigger for the bourse.

    With that said, valuations across the board particularly in blue-chip scrips have reached attractive levels.

    The market commenced on a negative note on Monday amid sharp decline in oil prices (Arab Light down by 27 percent DoD) after OPEC and Russia failed to agree upon oil production cut and Saudi Arabia engaged in an oil price war, consequentially, the market nose-dived by 2,302 points during the intraday.

    The following day, the equity bourse displayed a swift rebound owed to expectations of a cut in interest rate, keeping in view decline in inflation.

    However, the sentiment was short lived as Pak Rupee depreciated against USD by 3 percent WoW. Furthermore, the US President imposed a travel ban on most European countries which led to a meltdown in Global Markets given classification confirmation by WHO of Corona as a pandemic.

    Following suit, panic was also witnessed at the KSE-100 Index (market halt enforced thrice during the week). The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) closed at 36,061 points, down 2,159 points WoW (-5.65 percent).

    Sector-wise negative contributions came from i) Commercial Banks (706 points), ii) Oil & Gas Exploration Companies (650 points) and iii) Fertilizers (317 points).

    Positive contributions came from Pharmaceuticals (35 points). Scrip-wise negative contributions were led by PPL (262 points), HBL (177 points), and ENGRO (167 points) while positive contributions were led by SEARL (30 points), and INDU (20 points).

    Foreign selling continued this week clocking-in at USD 23.0 million compared to a net sell of USD 16.7 million last week.

    Selling was witnessed in Cements (USD 8.2 million) and Exploration & Production (USD 6.2 million). On the domestic front, major buying was reported by Insurance Companies (USD 25.2 million) and Banks/DFIs (USD 6.0 million). Average Volumes settled at 264 million shares (up by 9 percent WoW) while average value traded clocked-in at USD 81 million (up by 25 percent WoW).

  • US stocks jump up after Trump declares coronavirus outbreak emergency

    US stocks jump up after Trump declares coronavirus outbreak emergency

    The US stocks rebounded on Friday and jumped up more than 9 percent after US President Donald Trump declared the coronavirus outbreak a national emergency.

    The Dow Jones Industrial Average closed 1,985 points higher, or 9.4 percent, at 23,185.62. Friday marked the Dow’s biggest-ever point gain. The S&P 500 climbed 9.2 percent to 2,711.02 while the Nasdaq Composite surged 9.3 percent to 7,874.23. The averages posted their biggest one-day gain since October 2008, according to CNBC.

    The BBC reported that Wall Street shares rallied on Friday after US President Donald Trump declared the coronavirus outbreak a national emergency, freeing up money to fight the spread of the disease.

    As the president spoke, the three main US indexes jumped more than 9 percent.

    Earlier, London’s FTSE 100 closed up 2.5 percent, retreating from an early surge, while other European indexes made similar moves.

    The rally comes a day after Wall Street suffered its biggest losses since 1987.

    Investors fear economies could slide into recession as a result of the pandemic, as business is disrupted, events are cancelled and schools in many countries close in an effort to contain the spread of the virus.

    Many indexes around the world have now fallen more than 20 percent from their recent highs – a red flag for recession, the BBC reported.

    CNN reported it was the best day for stocks since 2008, but indexes still ended the week with sharp losses. This pretty much sums up the market volatility.

  • International arrivals restricted to three airports to control coronavirus spread

    International arrivals restricted to three airports to control coronavirus spread

    KARACHI: Civil Aviation Authority of Pakistan (CAA) has implemented the decision of National Security Council and issued notification to restrict international arrivals at three major airports of the country.

    The authority restricted the international arrivals at airports included: Allama Iqbal International Airport, Lahore; Islamabad International Airport; and Jinnah International Airport, Karachi.

    Earlier, the NSC had decided to limit the international passengers to few airports of the country in order to prevent the spread of coronavirus.

    The CAA said that international aircraft operation would remain suspended from remaining airports of the country to control the spread of COVID-19.

    The authority asked the operators having scheduled operation from the airports being closed for international operations to reschedule their flights as an alternative option to AIIAP Lahore, IIAP Islamabad and JIAP Karachi during lean traffic period at these airports.

    1. A National Coordination Committee for COVID-19, to be convened by SAPM on Health, has been established to monitor the situation and make necessary decisions on a daily basis. The Committee will have representation of all provinces and relevant civilian and military stakeholders.

    2. NDMA will be the lead operational agency and will coordinate its efforts with the provincial and district authorities for necessary implementation of the preventive and curative actions.

    3. All educational/technical institutions, public and private, at all levels will remain closed for three weeks across the country.

    4. The entire Western border will be closed for two weeks for all human and commercial traffic. Sost border will continue to remain closed for two further weeks.

    5. The Kartarpur Corridor will be closed for Pakistanis. Indian pilgrims will be allowed to continue visiting.

    6. Outgoing and incoming international flights will only be allowed at the Karachi, Lahore, and Islamabad airports. Screening and administrative measures at these airports will be reinforced immediately.

    7. Reinforcement of screening and administrative measures at all sea ports will also be ensured.

    8. All public gatherings will be banned with immediate effect. Wedding halls and cinemas will be closed for two weeks. Large conferences will also be barred for the same period. Remaining PSL matches may be conducted without any crowd.

    9. Minister for Religious Affairs and Inter-Faith Harmony and Chairman, Council of Islamic Ideology will reach out to Ulema and all relevant stakeholders to work out the modalities for management of congregational religious services in light of the Corona Virus.

    10. Honorable Chief Justice of the Supreme Court and Honorable Chief Justices of the provincial High Courts will be requested to:

    (i) instruct all courts not to schedule cases of civil nature for three weeks.

    (ii) Judicial Magistrates and Session Court Judges to visit the concerned jails for three weeks to process remand and bail cases.

    11. No visitors will be allowed to visit prisoners in jails for three weeks.