Important Business News 04th July, 2019

Important Business News

04th July, 2019

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1.                 $6bn loan approved by IMF board


The International Monetary Fund (IMF) Executive Board has approved $6 billion bailout package for Pakistan.
Director Communications Department IMF, Gerry Rice tweeted that IMF Executive Board has approved a three-year US $6 billion loan to support Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living.

1 Business Recorder


Amnesty scheme fetches Rs60bn so far

The Federal Board of Revenue (FBR) has so far received 110,000 declarations under the Assets Declaration Scheme-2019 with tax deposited to the tune of over Rs 60 billion.
Sources said that 25,000 more declarations are under process, taking total declarations filed under the Assets Declaration Scheme-2019 to 130,000.

1 Business Recorder


Sir Syed Express launched by PM

Prime Minister Imran Khan Wednesday inaugurated Sir Syed Express, a non-stop train from Rawalpindi to Karachi, to facilitate passengers and earn revenue for Pakistan Railways.
Addressing the launch ceremony at Rawalpindi Railway Station, Prime Minister Khan emphasized on curbing financial corruption in all institutions of the country, saying nobody will be given ‘National Reconciliation Ordinance (NRO)’.

1 Business Recorder


Pakistan on positive trajectory of development, peace: COAS

Chief of Army Staff General Qamar Javed Bajwa on Wednesday said that Pakistan is on positive trajectory of peace and development and shall carry forward the same towards enduring peace and prosperity, Inter-Service Public Relation (ISPR) reported.

1 Business Recorder


Govt all set to privatize Discos

The Pakistan Tahreek-e-Insaf is all set to start privatizing power Distribution Companies (Discos) and in this regard, Cabinet Committee on Privatization (CCoP) has directed Task Force on Energy Reforms to present a viable plan for sell-off of one or two Discos, well informed sources in Privatization Commission told Business Recorder.

1 Business Recorder


Trump accuses China, Europe of currency manipulation, stimulus

US President Donald Trump on Wednesday accused China and Europe of deliberately weakening their currencies and stimulating their economies to gain competitive advantages over the United States.
Trump’s latest Twitter outburst came as the Commerce Department reported that the US trade deficit surged to a five-month high in May, in part on record imports of automobiles — goods on which Trump has threatened to impose steep duties.

1 Business Recorder


Transportation of additional POL products: ECC decides to use railways to reduce cost

The Economic Coordination Committee (ECC) of the Cabinet has decided that additional petroleum products to up-country would be transported through Pakistan Railways, instead of oil tankers, to reduce transportation cost by 20 percent and help the PR mobilize some revenue.

1 Business Recorder


Petrol and HSD: Adjustment of ST & PL enable Govt to keep prices unchanged

Adjusting sales tax (ST) on petrol and HSD upward and reducing the petroleum levy (PL) on HSD enabled the government to keep prices of both products unchanged for July.
Sales tax on Motor Spirit (MS) and HSD was raised from 13 percent to 17 percent effective 1 July, 2019 while the standard rate of sales tax (17 percent) on Kerosene and Light Diesel Oil (LDO) was unchanged for July, 2019. A senior FBR official maintained that the upward adjustment of sales tax would have a revenue impact of Rs 2-3 billion in July 2019.

5 Business Recorder


July-May 2018-19: Govt borrowed $543.96bn from foreign banks

The PTI-led government borrowed $543.96 million from foreign commercial banks in May, bringing the total to $3.727 billion under this head in July-May 2018-19, compared to $3.494 billion borrowed during the same period of 2017-18.
This does not include $6 billion loan from friendly countries – $3 billion each from Saudi Arabia and United Arab Emirates (with one billion dollar yet to be disbursed).

5 Business Recorder


Withdrawal of zero-rated facility: Textile sector’s cost of production rises by 40pc: PWMA

The cost of production of the textile sector rose sharply some 40 percent due to budgetary measures as zero-rated facility has been withdrawn, wef, July 1, 2019.
The federal government has withdrawn SRO-1125 in the federal budget 2019-20 resulting in the removal of sales tax exemption under the zero-rated regime for five export-oriented sectors, including textile and now the textile sector is required to pay 17-20 percent sales tax.

7 Business Recorder


PIA Hajj operation begins on Friday

PIA Pre-Hajj operation of transporting intending pilgrims to Saudi Arabia from Pakistan will commence from July 5, 2019. PIA will transport more than 78,000 intending pilgrims to Saudi Arabia through nearly 300 flights from Pakistan.
Four Pre-Hajj flights that will depart on the first day of Pre-Hajj operation on July 5, 2019 include PK741 from Islamabad, PK 743 from Karachi, PK 759 from Lahore and PK 735 from Peshawar carrying more 1,300 intending pilgrims to Saudi Arabia.

7 Business Recorder


APTPMA urges Govt to continue zero-rated regime for one month

All Pakistan Textile Processing Mills Association (APTPMA) has urged the federal government for continuation of zero-rated regime for one month to devise a mechanism for payment of sales tax. Operations of textile processing mills remained suspended on third consecutive day as mills are not getting new order due to imposition of 17 percent sales tax in the federal budget as facility of zero rating has been revoked effective July 01, 2019.

15 Business Recorder


Financial constraints: Govt not to import 0.1m tons of urea

The federal government has reportedly decided not to import 0.1 million tons of urea due to financial constraints and on assurance from domestic industry that it will not increase price for the time being, well-informed sources told Business Recorder.

20 Business Recorder


Protection from taxation not listed as fundamental right: CJP

The Supreme Court on Wednesday held that the protection from taxation is not listed as fundamental right conferred by Chapter 1 of Part II of the Constitution.
A three-judge bench, headed by Chief Justice Asif Saeed Khan Khosa and comprising Justice Qazi Faez Isa and Justice Ijazul Ahsan on April 24, 2019 hearing a matter regarding deduction of taxes and other charges by mobile companies had disposed of the human right case and restored all the taxes charged by cellular service providers on mobile phone top-up cards.

20 Business Recorder


PM for more stringent action against gas thieves

Prime Minister Imran Khan Wednesday directed for making the anti-gas theft campaign more robust by exposing and taking indiscriminate action against elements involved in gas theft.

3 Business Recorder

Army chief defends Govt’s tough economic measures

Chief of the Army Staff General Qamar Bajwa on Wednesday defended the government’s tough econo­mic measures as indispensable. He was speaking at a Corps Commanders meeting at the General Headquarters (GHQ), where the economic and internal security situation was discussed in addition to emerging challenges on the external front.

1 Dawn

ECC allows non-competitive tendering for LNG terminal, defers proposal to ban wheat exports

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday allowed setting aside procurement rules to induct a consultancy firm for third LNG terminal and deferred, for the third time, a proposal to ban wheat export unless provinces control their smuggling as prices go up. The ECC meeting, presided over by Adviser to Prime Minister on Finance & Revenue Dr Abdul Hafeez Shaikh, also ordered the authorities concerned to shift some oil movements through Pakistan Railways to help it stand on its feet.

10 Dawn

Textile units shut down amid rising costs

The business of wholesalers and retailers associated with textile processing mills has come to a standstill after the end of zero rated regime for the textile sector coupled with imposition of sales tax of 17 and 20 per cent, said the All Pakistan Textile Processing Mills Association (APTPMA). APTPMA Chairman Mohammad Arif Lakhani in an emergency meeting held on Wednesday said that, “we are not on strike but all processing industries have been closed for the last three days as our customers have stopped sending any work of dyeing and printing at our factories, rendering thousands of workers jobless.”

10 Dawn

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