Tag: SBP

Suzuki Motors warns plant shutdown in Pakistan

KARACHI: Suzuki Motors Co. Ltd. on Thursday warned shutting down its production plant in Pakistan due to import restrictions.

In a communication sent to Pakistan Stock Exchange (PSX), the auto manufacturer said that State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKD) vide circular No. 09 of 2022 dated May 20, 2022.

READ MORE: Indus Motors rebuts plant shutdown reports

“Restrictions had adversely impacted clearance of import consignments of the company from the ports which might result in shutdown of the plant in near future,” the company said, adding that Pak Suzuki has stopped bookings of its products since July 01, 2022.

The company further clarified that at present it had not plan to shut down the plant. “The production schedule of the company and any non-production days remain contingent on a number of external factors,” it said.

READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

The company is actively monitoring its production and operations and is closely working with the government of Pakistan and the central bank to alleviate the present challenges.

A day earlier, Indus Motors Company– the manufacturers of Toyota cars in Pakistan, also issued a statement in this regard.

READ MORE: Toyota lowers July production in Japan

The IMC said that the auto sector was facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

“The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the IMC said.

The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

READ MORE: COVID-19 cases reported at Toyota work sites

July 28, 2022
SBP’s customer forex rates – July 28, 2022

On Thursday, July 28, 2022, the State Bank of Pakistan (SBP) unveiled the foreign exchange rates for customers, revealing the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
(more…)

July 28, 2022
Pakistan’s FY22 current account deficit widens to $17.41 bn

KARACHI: Pakistan has posted $17.41 billion as current account deficit (CAD) for the fiscal year 2021/2022, according to data of balance of payment released by the State Bank of Pakistan (SBP) on Wednesday.

The country posted a deficit in the current account of $2.82 billion in the preceding fiscal year i.e. 2020/2021. It shows that the current account deficit of the country ballooned by over five times.

The widening of the current account deficit may be attributed to a surge in import bill during the fiscal year under review.

READ MORE: Pakistan’s CAD balloons to $15.19 billion in 11 months

The import bill of the country recorded an increase of 42.21 per cent to $80.18 billion during the fiscal year 2021/2022 as compared with $56.38 billion in the preceding fiscal year, according to Pakistan Bureau of Statistics (PBS).

However, the exports also posted an increase of 25.64 per cent to $31.79 billion during the fiscal year under review as compared with $25.30 billion a year ago.

But the massive rise in import bill resulted in a huge trade deficit. The country posted 55.70 per cent in widening of trade deficit to $48.38 billion during the year under review as compared with the deficit of $31.07 billion in the preceding fiscal year.

READ MORE: Current account deficit swells to $13.78 bn in 10 months

Even the record remittances during the year have failed to curtail the current account deficit. The Pakistani workers sent record high remittances amounting $31.24 billion during the fiscal year 2021/2022 as compared with $29.45 billion in the preceding fiscal year.

Meanwhile, the total investment into Pakistan recorded a 61 per cent decline to $1.79 billion in the fiscal year 2021/2022 as compared with $4.58 billion in the preceding fiscal year.

The inflow of foreign private investment into the country fell 27 per cent to $1.48 billion during the fiscal year under review as compared with $2.03 billion in the preceding fiscal year.

READ MORE: Pakistan’s CAD hit $13.17 billion in July – March

The major component of the foreign private investment i.e. Foreign Direct Investment (FDI) posted an increase of 2.6 per cent to $1.87 billion during the fiscal year 2021/2022 as compared with $1.82 billion a year ago.

However, the foreign investment in the capital market recorded a massive decline of 288 per cent. The capital market witnessed an outflow of $388.4 million during fiscal year 2021/2022 as compared with an inflow of $206.6 million in the preceding fiscal year.

July 27, 2022
SBP issues KIBOR rates – July 27, 2022

KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on July 27, 2022.

Following are the latest KIBOR rates:

Tenor BID OFFER
1 – Week 14.70 15.20
2 – Week 14.74 15.24
1 – Month 14.81 15.31
3 – Month 15.13 15.38
6 – Month 15.46 15.71
9 – Month 15.53 16.03
1 – Year 15.61 16.11

READ MORE: SBP issues KIBOR rates – July 26, 2022

July 27, 2022
SBP’s customer forex rates – July 27, 2022

On Wednesday, July 27, 2022, the State Bank of Pakistan (SBP) released the foreign exchange rates for customers, unveiling the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
(more…)

July 27, 2022
SBP issues KIBOR rates – July 26, 2022

KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on July 26, 2022.

Following are the latest KIBOR rates:

Tenor BID OFFER
1 – Week 14.66 15.16
2 – Week 14.71 15.21
1 – Month 14.78 15.28
3 – Month 15.10 15.35
6 – Month 15.43 15.68
9 – Month 15.52 16.02
1 – Year 15.60 16.10

READ MORE: SBP issues KIBOR rates – July 25, 2022

July 26, 2022
SBP’s customer forex rates – July 26, 2022

On Tuesday, July 26, 2022, the State Bank of Pakistan (SBP) released the foreign exchange rates for customers, detailing the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
(more…)

July 26, 2022
SBP issues KIBOR rates – July 25, 2022

KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as on July 25, 2022.

Following are the latest KIBOR rates:

Tenor BID OFFER
1 – Week 14.57 15.07
2 – Week 14.64 15.14
1 – Month 14.71 15.21
3 – Month 15.04 15.29
6 – Month 15.42 15.67
9 – Month 15.51 16.01
1 – Year 15.57 16.07

READ MORE: SBP issues KIBOR rates – July 22, 2022

July 25, 2022
SBP’s customer forex rates – July 25, 2022

On Monday, July 25, 2022, the State Bank of Pakistan (SBP) issued the foreign exchange rates for customers, outlining the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
(more…)

July 25, 2022
Tax imposed on foreign payments made by exchange companies

ISLAMABAD: The Federal Board of Revenue (FBR) has said that tax has been imposed on foreign payments made by exchange companies.

The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments brought through Finance Act, 2022 to the Income Tax Ordinance, 2001.

READ MORE: Minimum tax for commercial importers enhanced: FBR

The FBR said that two new sub-sections (1DC) and (1DD) have been inserted in section 152 of the Income Tax Ordinance 2001.

Under sub-section (DC), service charges/commission/fee, by whatever name called, paid by an exchange company licensed by the State Bank of Pakistan (SBP) to a non-resident person has been brought under the tax net.

READ MORE: Tax through electricity connections on retailers, service providers

Now these exchange companies have been made liable to deduct tax at the time of making payment of service charges or commission or fee to the global money transfer operators, international money transfer operators or such other persons engaged in international money transfers or cross-border remittances for facilitating outward remittances.

READ MORE: FBR explains income tax on export of services

Similarly, under sub-section (1DD), every banking company has been made liable to deduct tax at the time of making payment to card network company or payment gateway or any other person, on any transaction fee or licensing fee or service charges or commission or fee by whatever name called or interbank financial telecommunication services.

This final tax on the income of non-resident person and rates have been provided in Division IV of Part I of First Schedule. Corresponding changes in this regard have been made in sections 6 and 8 of the Ordinance.

READ MORE: FBR restores 100% depreciation deduction

July 24, 2022

Tenor	BID	OFFER
1 – Week	14.70	15.20
2 – Week	14.74	15.24
1 – Month	14.81	15.31
3 – Month	15.13	15.38
6 – Month	15.46	15.71
9 – Month	15.53	16.03
1 – Year	15.61	16.11