Important Business News 15th May, 2020

S.# Description Pg # Source
1. Fiscal deficit to hit at least 9.4pc The country’s fiscal deficit will be significantly worse than projected this fiscal year, with the fallout from the novel coronavirus pandemic pushing millions into unemployment and poverty, according to government estimates reviewed by Reuters. 1 Business Recorder
2. 9,350 PSM employees Ministry revisiting lay-off plan
 Ministry of Industries and Production (MoI&P) is revisiting its plan meant to terminate the services of around 9,350 employees of Pakistan Steel Mills (PSM) en bloc on the recommendations of Pakistan Steel’s Board of Directors (BoD) aimed at attracting potential investors on an open bidding instead of government to government basis, sources close to Secretary Industries and Production told Business Recorder.
1 Business Recorder
3. No laxity, compromise on anti-smuggling operations: PM While terming smuggling a curse for the economy, Prime Minister Imran Khan has sought a comprehensive list on measures so far taken and people involved in two weeks. 1 Business Recorder
4. Economy likely to grow by 2pc next year: Hafeez The real worry for the government is how to increase gross domestic product (GDP) when there are so many tendencies towards its contraction, said Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh. 1 Business Recorder
5. Debt relief from China Pakistan considering exploring possibility
Pakistan is considering to explore possibility of debt relief from China at bilateral level but discreetly, as debt relief on multilateral and commercial debt may be precluded, it is learnt.
1 Business Recorder
6. Sugar millers express ‘serious’ reservations Pakistan Sugar Mills Association (PSMA) which is being grilled by the Sugar Inquiry Commission on alleged tax evasion, Benami transactions, subsidy on export and suspicious export proceeds, has expressed “serious” reservations about the ‘hypothetical’ working and selective/incorrect accounting adopted by the Commission. 1 Business Recorder
7. Local, foreign currency Moody’s places ratings under review for downgrade
Moody’s Investors Service (Moody’s) has placed the government of Pakistan’s local and foreign currency long-term issuer and senior unsecured B3 ratings under review for downgrade.
1 Business Recorder
8. MPS today 100bps cut in key policy rate likely
The State Bank of Pakistan (SBP) will announce the Monetary Policy Statement (MPS) on Friday (May 15) with expectations of further cut in the key policy rate.
1 Business Recorder
9. ‘Economic damage caused by coronavirus is yet to be ascertained’ President of Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain, has proposed the establishment of a national authority to combat the virus which must include health experts, industrialists, traders, academicians, media professionals which can frame a proper policy to boost the economy. 5 Business Recorder
10. July-March IT, ITeS export remittances surge to $901.486m

The country’s information technology (IT) and IT enabled Services (ITeS) export remittances have surged to $901.486 million at growth rate of 23.94 percent during the first nine months (July-March) of fiscal year 2019-20 compared to $727.353 million during the same period of last year.
7 Business Recorder
11. Cotton business likely to resume fully after Ramazan Traders are hopeful that activities on cotton market will fully resume after Ramazan. 8 Business Recorder
12. Super tax for TDPs rehabilitation IR commissioner can invoke, utilise provisions of Section 4B, rules LHC
The Lahore High Court (LHC) has ruled that the commissioner Inland Revenue can very well invoke and utilise the provisions of Section 4B (super tax) in case of super tax for rehabilitation of the temporarily displaced persons (TDPs).
12 Business Recorder
13. All efforts being made to control economic losses: Razak Government is making all out efforts to control the economic losses incurred by our fragile economy in the wake of coronavirus lockdown, said Abdul Razak Dawood, Advisor to PM on Commerce, Textile and Investment. 12 Business Recorder
14. AFS equity investments SECP allows firms relief from requirements of IAS 39
The Securities and Exchange Commission of Pakistan (SECP) on Thursday allowed companies/entities that are applying IAS 39/principles of IAS 39 (for Available for Sale equity instruments), relief from the requirements in relation to their Available for Sale (AFS) equity investments.
15 Business Recorder
15. President asks NTU to play its role in helping textile industry President Dr Arif Alvi has asked the National Textile University (NTU), Faisalabad, to play its role in helping the textile industry of the country in value addition and diversification of its product. 15 Business Recorder
16. SEZs: CPEC body asks BoI, SBP, FBR to resolve issues The Parliamentary Committee on China-Pakistan Economic Corridor
(CPEC) has asked the Board of Investment (BoI), the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) to resolve all the issues pertaining to special economic zones (SEZs) on a top priority basis, so that these early harvest projects could be ready for economic activity.
16 Business Recorder
17. SBP urged to include current LCs, bonded goods in TERF scheme Industrialists have urged the State Bank of Pakistan (SBP) to include the current Letters of Credit (LCs) and already imported equipment, lying at ports, in the Temporary Economic Refinance Facility (TERF) scheme. 16 Business Recorder
18. No major change in tax rates likely during next fiscal year No major change in tax rates is expected during the next fiscal budget as there is a general understanding in the Federal Board of Revenue (FBR) that any change would lead to unnecessary hue and cry on the part of taxpayers, said the Board sources. 16 Business Recorder
19. NTDC energizes first 500kV HVAC transmission line The National Transmission and Despatch Company (NTDC) has connected high voltage direct current (HVDC) system with high voltage alternating current (HVAC) system first time in Pakistan. 16 Business Recorder
20. Debt repayments Foreign reserves down by $59m to $12.271bn
The State Bank of Pakistan (SBP) reserves decreased by $ 59 million to $ 12.271 billion end of the last week mainly due to external debt repayments.
16 Business Recorder
21. CCP launches online merger, acquisition application filing system The Competition Commission of Pakistan (CCP) has launched an Online Merger and Acquisition Application filing system to facilitate the local and foreign investors intending to invest in Pakistan through mergers, acquisitions, and joint ventures. 16 Business Recorder
22. Chinese company to carry out Rawalpindi-Islamabad circular railway feasibility study The federal and provincial governments signed a memorandum of understanding (MoU) with the China Civil Engineering Construction Company (CCECC) on Thursday to begin the feasibility study of the Rawalpindi-Islamabad Circular Railway and Leh Nullah Expressway projects. 4 Dawn
23. FBR tax proposals not in line with govt`s vision: Hafeez The proposals firmed up by the tax authorities for making part of next year`s finance bill do not represent the vision of the government and need to be simplified and kept fewer than before to ensure ease of doing business and reduce compliance costs. 9 Dawn
  International News    
24. World leaders demand free coronavirus vaccine for all GENEVA: World leaders past and present insisted on Thursday that any eventual COVID-19 vaccines and treatments should be made available to everyone, free of charge. 1       Business Recorder
25. Pandemic clouds US-China trade deal: Trump WASHINGTON: US President Donald Trump said on Thursday he was very disappointed in China over its failure to contain the novel coronavirus, and that the worldwide pandemic had cast a pall over his trade deal with Beijing. 9 Dawn

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