Important Business News – 12th June, 2018

Important Business News

12th June, 2018


S.# Description Pg # Source
1. Mobile phone handsets, telecom apparatus

Govt mulling taking steps to rationalize import
The caretaker government is considering measures to reduce import bill by rationalizing import of mobile phone handsets and other telecom apparatus, sources revealed to Business Recorder.
Pakistan’s trade deficit reached an all time high of $33.88 billion during the first eleven months of the current fiscal year with $55.23 billion imports and $21.34 billion exports.

1 Business Recorder
 2. External account

Exchange rate adjustment may contain imbalances: SBP
The State Bank of Pakistan (SBP) Monday said the market-driven adjustment in the exchange rate along with other recent policy measures are expected to contain the imbalances in the external account.
Money market remained volatile on the first working day of the week and Pak rupee was depreciated by 3-4 percent against the US dollar in early hours of the interbank market Monday. Pak rupee-US dollar exchange rate in interbank market went as high as some Rs122 and then closed some Rs119-120 compared with Friday’s close of Rs115.62 per dollar.

1 Business Recorder
3. PKR hits new lows

The Pakistani rupee slumped 3.8 percent against the dollar on Monday before slightly recovering in what appeared to be the third currency devaluation in seven months by the central bank amid fears of a balance of payments crisis.
The rupee’s decline to 119.85 per U.S. dollar threatens to squeeze consumers just days before the Eid holiday, which ends the Islamic fasting month of Ramadan, and ahead of a general election set for July 25.

1 Business Recorder
4. Caretakers raise POL prices up to 8.9pc

The caretaker government Monday increased the prices of petroleum products by 8.9 percent with effect from June 12, 2018.
According to caretaker government, in line with the global oil market trend, the following rates of different petroleum products have been approved by the government of Pakistan with effect from 12th June, 2018.

1 Business Recorder
5. DLTL for 2018-21

PTA demands finished leather inclusion
Pakistan Tanners Association chairman Amanullah Aftab has urged the caretaker Federal Commerce Minister and Secretary Commerce to ensure inclusion of ‘Finished Leather’ in the new Drawback of Local Taxes and Levies (DLTL) for 2018-21.
He said that the manufacturers-cum-exporters of finished lather are contributing significantly to the country’s GDP by making necessary highly value additions from raw skins to finished leather with new innovations after going through the detailed hectic 23 vital procedures for necessary value addition but they are deprived of DLTL scheme in the new export package announced by the government for the year 2018-21.

2 Business Recorder
6. SCO achieves new progress since accession of Pakistan: Xi

President Xi Jinping said the new progress has been made by the Shanghai Cooperation Organization (SCO) since the accession of Pakistan.
On behalf of leaders of the SCO member states, Xi made the remarks at a joint press conference in the coastal city of Qingdao, east China’s Shandong Province.

8 Business Recorder
7. Saudi Arabia, UAE, Kuwait offer $2.5bn in aid to Jordan

Saudi Arabia, the United Arab Emirates and Kuwait have offered $2.5 billion in aid for Jordan to ease its economic crisis following a wave of anti-austerity protests, the Saudi state media announced early Monday.
Jordan has been rocked in recent days by mass protests against price rises and a proposed tax hike as the government pushes measures to slash the country’s debt, leading to the prime minister’s resignation.
A four-nation summit in the holy city of Mecca, hosted by Saudi King Salman, offered Amman a bailout in the form of a deposit in the Jordanian central bank, World Bank guarantees as well as budgetary support over five years.

9 Business Recorder
8. LCCI for strong lobbying against Pakistan’s inclusion in ‘Grey List’

The Lahore Chamber of Commerce and Industry Monday called for strong lobbying against Pakistan’s inclusion in Grey List by Financial Action Task Force (FATF).
“Political parties are busy in blame-game while country is facing a huge threat of economic constraints by the world after implementation of FATF’s decision to include Pakistan in Grey List” LCCI President Malik Tahir Javaid said. The global money laundering supervisory body Financial Action Task Force (FATF) has decided to put Pakistan in its terrorist financing watch list that is not an ordinary thing as after this, Pakistan would be facing European Union’s black-listing threat, he added.

13 Business Recorder
9. T4 turbine starts rolling to generate 335MW

Consequent upon the improved hydrological conditions and availability of water, the first unit of Tarbela 4th Extension Hydropower Project has started electricity generation with effect from June 8. The unit, which is in its reliability period now-a-days, has been providing 335MW of electricity to the national grid, which will be gradually increased to its maximum capacity of 470MW. Though this unit was completed in April, it could not start electricity generation for non-availability of water due to less inflow in River Indus at Tarbela in current year.
The second unit of Tarbela 4th Extension Hydropower Project has also been put into wet commissioning three days ago. This unit is scheduled to enter its reliability period in first week of July.

13 Business Recorder
10. Registration, monitoring
SECP formulates regulations for charities, NGOs

For the first times the Securities and Exchange Commission of Pakistan (SECP) has formulated detailed regulations for registration, documentation and monitoring of associations with charitable and Not for Profit objectives as well as such international NGOs operating in Pakistan.
The SECP has issued Associations with Charitable and Not for Profit Objects Regulations, 2018 here on Monday in this regard.
The Commission, while considering the application for grant of license under regulations, may make such enquiry and obtain such other information or clarification as it may deem necessary.
21 Business Recorder
11. FATF
Govt working on plan to avert being blacklisted

The government is working on an action plan to avert being blacklisted by Financial Action Task Force (FATF) and consultations are ongoing with all relevant ministries/departments, informed sources told Business Recorder.
The meeting with FATF is scheduled for 24-29 June in Paris and Secretary Finance and an official from the State Bank of Pakistan may represent Pakistan in the meeting.


22 Business Recorder
12. Mobile phone recharge cards

SC restrains FBR, cellular cos from deducting WHT

The Supreme Court here Monday restrained Federal Board of Revenue (FBR) and cellular companies from deducting withholding tax and other charges from mobile phone recharge cards till further orders.
The court also directed the FBR and the cellular companies to present within two weeks a plan to separate those mobile phone users not liable to pay tax from their tax collection system.
Chief Justice of Pakistan Mian Saqib Nisar heading a three-member bench observed that the deduction of such taxes was a compulsory appropriation and giving two days to the FBR and companies to implement the order.

22 Business Recorder
13. Expats remit over $18bn in 11 months

Overseas Pakistani workers remitted over $18 billion in the first eleven months (July-May) of this fiscal year (FY18).
According to the State Bank of Pakistan (SBP), Pakistanis received home remittances amounting to $18.028 billion in the first eleven months of FY18 compared with $17.511 billion arrived during the same period in the preceding year, showing a growth of 3 percent or $517 million.

22 Business Recorder


Non-performing loans
A three-member bench headed by Chief Justice Saqib Nisar took up suo motu proceedings initiated in 2008 on press reports that the State Bank of Pakistan (SBP) had allowed commercial banks to write off around 54 billion rupee non-performing loans (NPLs) of 222 companies on political basis under a scheme introduced by the then dictator General Pervez Musharraf. In 2002, the then SBP Governor, Dr Ishrat Husain, had issued circular 29 titled New Guidelines on Write-Off of Irrecoverable Loans and Advances since 1971 onwards that raised serious queries even at that time with critics maintaining that through this circular banks were compelled to write off loans to benefit Musharraf’s political acolytes.


Business Recorder

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>