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Tag: investment

  • FBR asks banks to provide details of government securities investment

    FBR asks banks to provide details of government securities investment

    ISLAMABAD: Federal Board of Revenue (FBR) has asked banks to provide details of additional investment made into the government securities during the tax year 2019.

    The sources in FBR on Tuesday said that a commissioner of Inland Revenue had been empowered to ask the banking companies to furnish details of the investment in the federal government securities so as to ascertain the applicability of enhanced rate of tax.

    The FBR said that the rate of tax on taxable income of a banking company is 35 percent. “Through the Finance Act, 2019, a new rule 6C has been inserted to Seventh Schedule which provides tax rate of 37.5 percent on taxable income from federal government securities.”

    As per this rule, the taxable income arising from additional income earned from additional investment in the federal government securities for the tax year 2020 and onwards shall be taxed at the rate of 37.5 percent.

    “A banking company shall furnish a certificate from external auditor along with accounts while e-filing return of income certifying the amount of money invested in the federal government securities in the preceding tax year, additional investments made for the tax year and mark-up income earned from the additional investment for the tax year.”

    The FBR defines ‘additional income earned’ as to mean mark-up income earned from additional investment in the federal government securities by the bank for the tax year.

    The FBR also defines the term ‘additional investment’ as to mean average investment made in the federal government securities by the bank during the tax year, in addition to average investment held during the tax year 2019.

    As per sub-rule (3) of the rule 6C, the Commission may require the banking company to furnish details of the investment in the federal government securities so as the ascertain the applicability of enhanced rate of tax.

  • Imran Khan invites investors to benefit from Pakistan’s business opportunities

    Imran Khan invites investors to benefit from Pakistan’s business opportunities

    KARACHI: Prime Minister Imran Khan has invited overseas businessmen and investors to benefit from the economic and business opportunities afforded by Pakistan’s strategic location and the connectivity to the broader region.

    He was talking to a group of prospective investors that led by Javaid Anwar, a leading Pakistani-American businessman, called on the prime minister at the Embassy of Pakistan in Washington DC, reported by Radio Pakistan on Sunday.

    The investors appreciated improved security environment in Pakistan and identified areas of interest with regard to investment in key sectors including energy and tourism

    Javed Anwar is an effective member of Democratic party and also played a leading role in formation of Pakistan Congress Foundation caucus.

    Former Pakistan Ambassador to the UN Munir Akram and renowned businessman Shahal Khan also called on Prime Minister Imran Khan in Washington on Sunday.

    They discussed issues relating to trade and investment in Pakistan.

    The meeting was also attended by federal ministers Shah Mehmood Qureshi and Syed Ali Haider Zaidi. Advisor on Commerce Abdul Razak Dawood and Advisor on Finance Dr. Abdul Hafeez Shaikh were also present, along with Sayed Zulfiqar Abbas Bukhari.

    Meanwhile, Texas based leading Pakistani businessman and high ranking influential member of the democratic party Tahir Javed also called on Prime Minister Imran Khan at Embassy of Pakistan in Washington.

    Prime Minister Imran Khan is on three-day (July 21-23) visit to the United State. He will hold dialogues with US President Donald Trump on July 22, 2019.

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  • Engro Corp announces Rs7.5 billion investment in telecom infrastructure

    Engro Corp announces Rs7.5 billion investment in telecom infrastructure

    KARACHI: Pakistan’s premier conglomerate, Engro Corporation, has announced investment in telecom infrastructure.

    The investment has been approved by board of directors of the corp. in its meeting held on April 25, 2019. The BoD also approved financial results for the quarter ended March 31, 2019.

    Engro Corporation, in light of its long-term strategy, has streamlined its businesses in four verticals namely Food & Agriculture, Energy & Related Infrastructure, Petrochemicals and Telecommunications Infrastructure; focused on creating value and helping Pakistan resolve these pressing issues.

    In order to develop potential business opportunities in the telecommunications infrastructure vertical, the Company had earlier set up Enfrashare (Private) Limited.

    Enfrashare will accelerate development of the country’s connectivity infrastructure, thereby providing an opportunity for people to be part of the new digital era.

    As an initial investment, Enfrashare will engage in the acquisition & construction of shared telecom towers, provision of various telecommunication infrastructure & related services, including state of the art network monitoring solutions.

    “To enable this, the Directors have approved an investment of Rs7.5 billion in this vertical,” a statement said on Friday.

    Ghias Khan, President & CEO Engro Corporation said: “Investments in energy, telecommunications infrastructure, petrochemicals and food and agriculture can accelerate change, help towards increasing exports, substitution of imports, industrialization in the country, job creation and hence build a stronger Pakistan.”

    “Engro Corporation will continue to explore investment opportunities across these four identified verticals with a focus to improve the lives of our stakeholders and communities in which we live and work with a culture founded on truth, trust and a relentless pursuit of excellence.”

    Furthermore, to continue building on Engro’s experience in the Petrochemical sector and keeping with its strategic ambitions that the Company will seek investment opportunities in this vertical, the Board of Directors approved the commencement of a feasibility study of a polypropylene facility based on a propane dehydrogenation plant.

    This will also enable the company to initiate discussions with potential partners and/or stakeholders for developing this project.

    Investment in the Petrochemical sector will create opportunities for both substituting the imports & enhancing the export potential, thus help in building foreign currency reserves of the country.

    Simultaneously with a view to expand its footprint outside Pakistan and to explore potential trading opportunities, the Board has also approved the acquisition of 100 percent shares of Engro Eximp FZE, a wholly owned subsidiary of Engro Fertilizers Limited, for Rs1.76 Billion (subject to adjustments at the date of closing of the transaction and corporate approvals).

    The company’s consolidated revenue grew by 21 percent in comparison to the prior period, driven by higher Urea sales in the Fertilizer business.

    The Company posted a consolidated profit-after-tax (PAT) of Rs6,565 million compared to PKR 6,837 million for the prior period.

  • Pakistan emerges as ideal marked for investment

    Pakistan emerges as ideal marked for investment

    ISLAMABAD: Abdul Razak Dawood, Advisor to the Prime Minister on Commerce, Textile, Industries & Production on Sunday said that Pakistan has become a sought after destination for investment due to Government of Pakistan’s recently carved out investor friendly policies.

    He was addressing at Pakistan – Qatar Trade and Investment Conference that was held in Qatar on March 10, 2019.

    He also elaborated these policies of the government and lucrative incentives being provided to the foreign investors.

    Highlighting the recent economic stability and progressive on-going economic activities in the wake of CPEC; he stated: “Pakistan has emerged as an ideal market for investment.”

    Furthermore, he was of the view that improved security situation has also motivated foreign investors for their safe investments in Pakistan.

    He stated that trade volume between Pakistan and Qatar can be enhanced through increased business engagements.

    He encouraged Qatari investors to invest in Pakistan mainly in the areas related with real estate, hospitality, petro-chemical, food & agriculture etc.

    Qatari Minister of Commerce and Industry Ali Bin Ahmed Al-Kuwari welcomed Pakistani delegates and told that there were approximately 1450 companies mutually owned by businessmen from both sides.

    He further added that Qatari side is ready to invest in Pakistan and is open to provide a platform to the Pakistani investors to use their market for business both inside and outside Qatar.

    He expressed his desire to further the relationship of both sides in trade and investment through regular business exchanges, trade expose and official engagements.

    Haroon Sharif, Chairman, Board of Investment made a brief presentation highlighting the potential areas of investment in Pakistan.

    He reiterated Prime Minister Imran Khan’s statement that it is the best time for investment in Pakistan and the opportunity shall not be missed.

    Yousef Al-Jaidah, Chief Executive Officer of Qatar Financial Center shed light on the new emerging belt initiative which includes countries like Turkey, Kuwait, Iraq, Qatar, Oman, Malaysia and Pakistan.

    He stated that this initiative will further enhance the trade and investment ties amongst these countries.

    Pakistan Ambassador to the State of Qatar Syed Ahsan Raza Shah was also present on the occasion.

    The conference was followed by business to business (B to B) meetings of the businessmen participating from both sides.

  • Saudi Arabia signs pact for $20bn investment in Pakistan

    Saudi Arabia signs pact for $20bn investment in Pakistan

    ISLAMABAD: Saudi Prince Mohammed bin Salman announced on Sunday that Saudi Arabia has inked investment agreements totaling $20 billion in Pakistan.

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  • Pakistan has geographical importance for investment

    Pakistan has geographical importance for investment

    KARACHI – Henry Ensher, Deputy Assistant Secretary of the Bureau of South and Central Asian Affairs, emphasized the geopolitical importance of Pakistan for regional investment during a meeting with Sindh Governor Imran Ismail on Friday.

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  • Tighter monetary policy chokes investment in Pakistan

    Tighter monetary policy chokes investment in Pakistan

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday said that the tighter monetary policy stance by the central bank has strangulated the investment in the country.

    In a statement Eng. Daroo Khan Achakzai, President, FPCCI showed his serious concern over the hiking of policy rate by another 25 basis points in last two months in view of prevailing inflation, devaluation of currency and twin deficit in Pakistan.

    He said: “SBP continues to operate a tight monetary policy and increased policy rate by 4.50 percent in last one year despite the clear evidences that this policy strangulates investment in Pakistan and hampered the economic activities.”

    The statistics clearly showing that investment to GDP in Pakistan is very lower i.e. 16.4 percent of GDP compared to 22.5 percent in 2007 while in India the investment to GDP ratio is 30 percent and in Bangladesh it is 31 percent.

    He termed the contraction in monetary policy as an anti-investment policy which has declined the economic activities in the first six month of the current fiscal year due to declining of large scale manufacturing growth particularly textile industry, food-beverages, petroleum, iron, pharmaceutical, electronics and wood products etc.

    He indicated that the 10.5 percent policy rate is very high compared to regional economies like India 6.5 percent, China 4.35 percent, Sri Lanka 9.0 percent, Thailand 1.75 percent, Indonesia 6.5 percent, Malaysia 3.25 percent etc.

    He said that the present inflation rate is 6.0 percent which is high compared to last year same period 3.8 percent; but this inflation is cost push inflation which cannot be controlled through demand management policies.

    The major cause of rising inflation in the country is high cost of doing business particularly utility prices, increase in the prices of industrial inputs and shortage of essential items of daily necessity.

    The government should focus to increase the demand for credit by declining interest rates and make easy access to finance.

    “Globally, the aim of monetary policy is to protect the value of the currency in co-ordination with the fiscal policy in order to achieve the objectives of macro-economic stability with constraining inflation and expansion of private sector investment,” he added.

    The President FPCCI further stated that the government should create its own fiscal space for financing its expenditures instead of borrowing from SBP and other institutions.

    During the first half year, there was an expansion in private sector credit, but is largely attributed to high cost of raw materials (cotton, petroleum products, etc), continuation of capacity expansion in power and construction-allied industries.

    This private sector credit should be expanded to other industries which are showing declining growth trend, he suggested.

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  • Cabinet meets tomorrow to approve export, investment package

    Cabinet meets tomorrow to approve export, investment package

    Islamabad: Prime Minister Imran Khan is set to lead a special cabinet meeting scheduled for Wednesday at 2:00 PM. The meeting, which carries substantial implications for Pakistan’s economic landscape, is expected to grant approval to a comprehensive economic reform package, as reported by informed sources.

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  • Cargill announces to invest $200 million to grow Pakistan business

    Cargill announces to invest $200 million to grow Pakistan business

    Cargill, a prominent global player in the food and agriculture industry, has announced its ambitious plans to invest over $200 million in Pakistan over the next three-to-five years, according to a statement released on Thursday.

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