KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has said terminal operators have refuse to extend waiver from demurrage and detention charges despite clear instruction of the government to facilitate the trade in the wake of COVID-19.
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Sales tax rate reduction: Think tank to discuss with FBR
Islamabad – The Federal Government’s think tank convened its third meeting on Sunday to deliberate on fiscal measures, including sales tax, aimed at mitigating the economic challenges arising from the COVID-19-induced slowdown. The discussion, chaired by Advisor to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh, emphasized the critical role of sales tax adjustments in spurring consumer spending and economic recovery.
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Karachi Chamber demands ease in lockdown, resuming trade activities
KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to ease the ongoing lockdown and allow the resumption of trade activities.
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SBP enhances refinancing limits for hospitals
KARACHI: State Bank of Pakistan (SBP) on Friday increased the refinancing limits for hospitals and medical centers in the background of rising cases of COVID-19 in the country and with the need to strengthen health sector in fight against COVID-19.
The central bank enhanced financing limit of a single hospital/ medical center under its Refinance Facility for Combating COVID -19 (RFCC) from Rs. 200 million to Rs. 500 million.
RFCC is an emergency funding facility to support hospitals/medical centers to develop their capacities for treatment of infected patients of COVID-19.
The financing under this facility is being made available by State Bank at zero percent to banks that can charge a maximum rate of 3 percent per annum to hospitals/medical centers.
State Bank has been continuously improving features of this Facility to ensure timely financial support to hospitals/medical centers engaged in combating COVID-19.
So far, financing of Rs. 2.2 billion for 11 hospitals/medical centers has been approved whereas financing requests of Rs 3.6 billion for 23 hospitals/medical centers are being processed by the banks.
With today’s enhancement of financing limit, it is expected that large scale facilities will be created for treating COVID-19 patients by using subsidized funding being extended under this facility.
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Coronavirus infects 23 FBR officials
KARACHI: At least 23 tax officials posted at Regional Tax Office (RTO) Quetta have been tested positive for coronavirus.
A senior official of RTO Quetta confirmed that officials had been tested positive for coronavirus.
The official said that initially 14 officials were infected with the virus. Further tests increased the number to 23. More, tests are underway.
The RTO Quetta was sealed after the identification of cases last week. However, the office was resumed with limited staff approximately five percent of workforce.
The Federal Board of Revenue (FBR) decided to conduct tests of all the officials at the regional office.
The FBR recently issued precautionary measures for the prevention from COVID-19. However, the officials are not following the guidelines. The FBR has made it mandatory for all the officials to use face masks and sanitizers.
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SECP extends submission of AML/CFT quarterly information up to May 31
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has extended the date up to May 31, 2020 for submission of mandatory information related to anti money laundering (AML)/ counter financing of terrorism (CFT) for the corporate sector.
The SECP on Monday due to the recent outbreak of pandemic Coronavirus (COVID- 19) and its impact on the public health and the lockdown situation in the country, the Regulated Persons are facing various difficulties while ensuring compliance with regulatory requirements related to reporting and submission of information in the manner prescribed under Directive 55(1)/2020 dated January 28, 2020.
The term Regulated Person (“RP”) has been defined in the Anti Money Laundering and Countering Financing of Terrorism (AML-CFT) Regulations, 2018 (“the Regulation”) as the “Regulated Person” means Securities Brokers, Futures Brokers, Insurers, Takaful Operators, NBFCs and Modarabas for the purposes of these regulations.
The Securities and Exchange Commission of Pakistan (SECP) in discharge of its statutory responsibilities for effective AML/CFT regulation of its regulated financial sector seeks to clarify as follows:
i. Relaxation in submission of quarterly information under Directive 55(1)12020:
In view of Directive 55(1)12020 dated January 28, 2020 a thirty days extension in filing of AML/CFT quarterly information is provided to all RPs facing difficulties in submission of information for period ended March 31, 2020 that is required to be submitted by April 30,2020.
Now, the said extension to submit quarterly information is being extended till May 31, 2020 for the quarter ended March 31, 2020 only.
ii. Companies to make necessary work arrangements for ensuring regulatory compliances:
As safety of employees is priority of the companies during the coronavirus (COVIT-19) outbreak, therefore RPs are encouraged to make necessary arrangements for the use of technology and related applications in order to enable them to work from home to meet the regulatory compliances.
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Business support package announced for small industrial, commercial units
In a bid to alleviate the financial burden caused by the coronavirus outbreak, the federal government has introduced a comprehensive support package for small industrial and commercial units.
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Sindh releases over Rs2 billion for coronavirus emergency funds
KARACHI: The Sindh government has released an amount of over Rs2 billion under coronavirus emergency fund, which included funds for filed isolation center and distribution of ration.
According to details released by Sindh Finance Department regarding expenses issued date April 24, 2020 to dilute the economic impact of coronavirus and fight against the pandemic.
The details showed that an amount of Rs1.08 billion has been spent as special grant for distribution of ration to poor. The provincial government has spent Rs580 million for disbursement to all Deputy Commissioners (DCs) for distribution of ration to daily wagers.
Another amount of Rs500 million has been disbursed to all the DCs for distribution of ration to poor/ daily wages who are economically affected by spread of coronavirus.
The provincial government released an amount of Rs300.79 million to Indus Hospital Karachi. While another amount of Rs100 million has been released to director health services Hyderabad.
The Sindh government released fund of Rs134 million for setting up field isolation centre at Expo Center Karachi.
An amount of Rs30 million has been released for procurement of coronavirus rapid test kits. Further Rs50 million has been released for procurement of 2000 detection Kit CE-IVD marked Cat No. Z-Path. The provincial government also released an amount of Rs32.34 million for procurement of personal protection equipment (PPE).
An amount of Rs50 million has been released to health department secretariat. The provincial government issued funds amounting Rs50 million to DC Malir Karachi, Rs60 to DC Sukkur and Rs5 million to DC Larkana.
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Think tank discusses viability of reducing GST to five percent
ISLAMABAD: The second meeting of think tank on Saturday discussed the viability of reducing General Sales Tax (GST) from existing 17 percent to five percent on consumer goods to kick start consumer spending.
Advisor to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Sheikh chaired the 2nd meeting of the Thinktank, recently constituted under the directions of Prime Minister, to deliberate on the Covid-19 related economic downturn and mitigation of ensuing risks.
The forum discussed the need and scope for bailout package for large businesses and exporters apart from gauging the viability of reduction of GST on consumer goods, from 17 percent to 5 percent, to kick-start consumer spending for next two years.
The constraints of FBR amid high revenue targets in a shrinking economy were highlighted by Finance Secretary. Decision in this regard would be made after detailed consultations.
The forum has been mandated to provide platform for collective thinking on the emerging situation resulting from the Covid-19 related medical crisis and its spillover to economy.
Its other members include Shaukat Tareen, Dr. Ishrat Husain, Dr. Ijaz Nabi, Sultan Ali Allana, Arif Habib, Dr. Waqar Masood. Advisor to PM on Commerce and Finance Secretary are also part of it.
After extensive deliberations on emerging themes, the forum identified key areas for policy interventions, including monetary affairs and banking sector, fiscal matters and public finances, social safety nets, SMEs and large businesses, commodity prices, public health challenges and role of private sector and NGOs.
Advisor to PM on Finance apprised the forum about developments at G-20 forum regarding debt relief package. There is potential for USD 1.8 billion debt deferment for one year under this, whereas proceeds worth USD 1.4 billion under IMF have already been received.
Participants highlighted the need for further downward revision in policy rate coupled with passing on the benefits of slashed oil prices in global market to public. The focus of the deliberations remained on strengthening of aggregate demand and supply of the economy, with emphasis on lower income groups and small firms.
Need for further liquidity for banks was discussed as strong and vibrant banking sector is essential to boost economy under such strong recessionary headwinds. Ways to further encourage remittances, agriculture financing and timely lifting of crops and vegetables from small farmers were analyzed.
The progress of ongoing cash disbursements under Ehsas program were shared. The need for gathering reliable data on recently laid-off works and timely cash transfers to the most vulnerable were emphasized.
Economists within the Think-tank stressed for the need of designing PSDP to facilitate labor intensive projects apart form crafting robust agriculture financing plans. The need for public private partnerships was elaborated to create fiscal space within public sector through these off-balance sheet financing arrangements which encourage private sector participation in public sector initiatives.
Professionals within group stressed for the need of oil price hedging, power sector debt securitization and creation of fiscal space through rescheduling of foreign and domestic debts. The need for designing lending programs for housing sector participants came under consideration including facilitation of end-users. The massive scope for mortgage backed financing in Pakistan was also highlighted.
Advisor to PM on Finance and Revenue took lead in picking most urgent themes for proper policy deliberations and decisions.
He shared that Prime Minster of Pakistan may participate in the next session to give boost to the work of this Forum which has been constituted to provide intellectual and professional insights to the Ministry in designing and implementing incentives for economy in pragmatic fashion.
Advisor decided that interventions with highest, medium and low impacts would be sorted out and aligned on the basis of short, medium and long term time horizons so that most essential tasks are pushed on priority basis, with proper funding and execution arrangements.
It was also decided that international think-tanks will be engaged for cross-leaning for select policy making players in Pakistan so that robust interventions are designed to bring relief to economy and most deserving segments of public.
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PIA slashes UAE fares up to 30 percent for providing relief to stranded Pakistanis
ISLAMABAD: Pakistan International Airline (PIA) has slashed fares of its special flights up to 30 percent in order to provide relief to stranded Pakistanis in United Arab Emirates (UAE) due to coronavirus pandemic.
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