Important Business News 13th May, 2018

Important Business News

    13th May, 2018

S.# Description Pg # Source
1. Challenge of under-invoicing on imports from China: Miftah explains why taxation at import stage introduced

The Chinese authorities are not willing to share the data of trade with Pakistan, compelling the government to introduce taxation at the import stage to curb under-invoicing, Federal Finance Minister Miftah Ismail stated here on Saturday.
Speaking to businessmen at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) brand of the year award ceremony, the minister said certain measures proposed in the Finance Bill 2018 were regulatory measures only; and “these do not aimed at generating revenue.”
He said under-invoicing of imported goods was a major issue and the proposal to convert income tax at import stage as minimum tax was aimed at curbing under-invoicing.

1 Business Recorder
2. Shahbaz highlights cornerstone of foreign policy

Punjab Chief Minister and president of Pakistan Muslim League-Nawaz (PML-N) Shahbaz Sharif on Saturday said that after winning the general elections his government’s foreign policy would be based on peace and stability.
Addressing a gathering of diplomats from various countries here on Saturday, the PML-N President said that Pakistan believes in a policy of peace within and abroad and has always joined hands with the world community in peace efforts in the region and across the world. “Pakistan’s foreign policy is a policy of durable peace and stability,” he added.



Business Recorder
3. Export package to be announced next week: minister

Finance Minister Miftah Ismail Saturday said the government will announce export package next week with a view to increasing exports to $27 billion in the next fiscal year.
The government will release around Rs100 billion to exporters under the sales tax refunds before the end of its tenure, he assured the members of Council of All Pakistan Textile Associations (Capta) at a meeting held at the PHMA House.

1 Business Recorder
4. US diplomat barred from leaving country

The Immigration Wing of Federal Investigation Agency (FIA) Saturday barred US diplomat Colonel Joseph Emanuel Hall, defense attaché at the US Embassy who is involved in killing a boy in a road accident, from leaving the country.
According to a senior official of FIA, Hall arrived at the airport to leave the country in a special US plane C-130, which landed at Noor Khan Airbase for taking him back. When Hall’s passport was handed over to immigration official for clearance, he was denied to leave the country as his name was put on the blacklist, he added.
He said that later the C-130 plane returned without taking the diplomat. The name of US diplomat was put on blacklist a few days after the road accident to prevent him from leaving the country.

1 Business Recorder
5. SNGPL, SSGCL to manage gas loads thru RLNG swap system

The government has allowed SNGPL and SSGCL to manage gas loads on their systems through RLNG system gas swap mechanism through setting up a deferral account by OGRA, official sources told Business Recorder.
Giving the background, the sources said, the ECC on June 14, 2016 discussed determination of sale price of RLNG. In line with this decision ECC approved policy guidelines with respect to determination of sale price of RLNG, and Oil & Gas Regulatory Authority (OGRA) has been determining the sale price of RLNG on monthly basis whereas M/s PSO is notifying it.

1 Business Recorder
6. Shaukat appointed SECP chief

The federal government has appointed Commissioner Securities and Exchange Commission of Pakistan, Shaukat Hussain as chairman SECP with immediate effect. A notification of Finance Division’s Investment Wing stated that in exercise of powers conferred by Section 6 of the SECP Act, 1997 (XLII of 1997), the federal government is pleased to appoint Shaukat Hussain, Commissioner Securities and Exchange Commission of Pakistan, as the chairman Securities and Exchange Commission of Pakistan with immediate effect. Accordingly, Hussain has assumed the charge of his new office.

1 Business Recorder
7. Govt’s assurance to PHM&EA: Rs35bn refund payment orders to be paid before 31st

The government has issued instructions to the concerned departments to resolve the problems confronted by the value added textile sector and in this connection Refund Payment Orders amounting to Rs 35 billion would be paid before May 31.
Similarly, a special meeting with Federal Finance Minister Miftah Ismail would also be arranged on Monday to withdraw the regulatory duty on the import of cotton & polyester yarn. These views were expressed by Rana Muhammad Afzal Khan, Chaudhry Abid Sher Ali and Haji Muhammad Akram Ansari State Ministers for Finance, Energy and Commerce & Textile during a meeting held in Pakistan Hosiery Manufacturers & Exporters Association here on Saturday.

7 Business Recorder
8. Technological advancement: Wang terms smallholder farmers’ role vital for agri sector

Lance Wang, Vice President of Monsanto ASEAN and Pakistan, has termed the lack of awareness and proper understanding of new technological advancements in agriculture a major hurdle in its adoption.
He was talking to Business Recorder during his recent short visit to Pakistan. Wang who has been with Monsanto for more than 24 years said that considering the complexity of Asia-Africa market, which largely comprises of subsistence farming, it is important to reach out to farmers and engage them in a manner that makes the adoption process easier for them. “This requires intense effort around farmer education and capacity building”.

7 Business Recorder
9. SOS to PM: Fertilizer industry on the verge of Collapse

The fertilizer industry has urged the Prime Minister to save it from collapsing which has over 100,000 ton capacity but underutilized due to non availability of gas at applicable and affordable rates. The manufacturers have been running from pillar to post to try and highlight their grievances on various government platforms.
Shortage of local gas and high prices of imported LNG in the country has created major challenges for this sector – which is among the biggest revenue contributors to Pakistan’s exchequer.

7 Business Recorder
10. FCCI booklet recommending economic reforms launched

The Research and Development (R&D) Department of the Faisalabad Chamber of Commerce & Industry (FCCI) has launched a booklet titled, “Agenda for Economic Reforms in Pakistan 2018–23.”
Speaking at the launching ceremony, chairman of FCCI Standing Committee on R&D, Engineer Ahmed Hassan said the booklet is aimed at providing recommendations to the policymakers at the federal and provincial levels for designing an appropriate economic reform agenda for the next 5 years. “It will also help Pakistan to achieve rapid and sustainable economic growth,” he said, adding that Pakistan is the 6th largest country in the world by population.

Quoting National Human Development Report published by UNDP, he said around 64% of the population falls within the age group of less than 30 years hence Pakistan has potential to become one of the largest economies of the world by exploiting abundant economic resources including human resource of productive age.

17 Business Recorder
11. Experts urge govt to implement water policy

Applauding the unanimous approval of Pakistan’s first National Water Policy by all the four provinces, the energy experts participating in a roundtable advised to expedite the process of policy’s implementation by relying on country’s own resources instead of wasting time in seeking help from other countries and international institutions.
The recommendation was made in a roundtable session titled ‘Pakistan’s National Water Policy: An Appraisal,’ which was organised here by Institute of Policy Studies (IPS).
The session was chaired by Mirza Hamid Hasan, former secretary, Ministry of Water and Power, and chairman IPS Committee on Energy, Water and Climate Change.

19 Business Recorder
12. Pakistani banks’ credit rating

Banks’ overall credit rating is determined by a number of factors. Commenting on the recently announced Federal Budget for FY19, Moody’s Investors Service has termed one-year extension of a 4 percent special tax on banks’ taxable income as credit negative that will continue to weigh on banks’ profits and add to the ongoing profitability challenges. The Pakistani authorities first imposed this tax in 2015, equaling 4 percent of banks’ taxable income for the last accounting year; and it was imposed on banks’ semi-annual results. Together with a uniform tax rate of 35 percent on all sources of income (including dividends and capital gains), the effective tax rate on banks amounted to 39 percent which was a big drag on their earnings. Profitability is also likely to be reduced due to narrowing margins from lower yields on government securities in which the banks invest roughly half of their balance sheets and higher pension costs ordered by the Supreme Court.

  Business Recorder


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