Important Business News 2nd January, 2018

 Important Business News

2nd January, 2018



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Govt plans record borrowing in 3Q

 In order to meet rising fiscal deficit, the federal government has planned to borrow a record amount of Rs 4.9 trillion from banking sector during Jan-March period of current fiscal year (FY18). Bankers said that slow foreign inflows and rising expenditures have compelled the government to enhance its reliance on banking system for borrowing. However, they said, the planned amount is much higher than previous auctions.


Business Recorder


SBP restricts import of cash USD

The State Bank of Pakistan (SBP) has restricted cash US dollar import by Exchange Companies (ECs) at 35 percent of total export of permissible foreign currencies in a month.
Previously, there were no limitations on cash import of US dollar and exchange companies were importing US Dollars against export of permissible foreign currencies in shape of cash or directly in their foreign currency accounts maintained with banks in Pakistan without any restrictions.


Business Recorder


US has gotten nothing from aid: Trump’s grim New Year gift to Pakistan

US President Donald Trump said on Monday that the United States has “foolishly” handed Pakistan more than $33 billion in aid over the last 15 years while getting nothing in return and pledged to put a stop to it. “They give safe haven to the terrorists we hunt in Afghanistan, with little help. No more!” Trump wrote on Twitter. “The United States has foolishly given Pakistan more than 33 billion dollars in aid over the last 15 years, and they have given us nothing but lies & deceit, thinking of our leaders as fools.”


Business Recorder


SECP prohibits cos form donating cash to JuD

The Securities & Exchange Commission of Pakistan (SECP) Monday prohibited all companies from donating cash to Jamaat-ud-Dawa (JuD), the charity wing of banned outfit Lashkar-e-Taiba, as well as several other individuals and organizations named in a comprehensive list of banned outfits by the United Nations Security Council (UNSC).


Business Recorder


Date for the payment of WHT extended

The Federal Board of Revenue (FBR) has extended date for payment of reduced rate of withholding tax (0.4 percent) for non-filers up to June 30, 2018 under section 236P of the Income Tax Ordinance 2001. 



Business Recorder


Circular debt soars to Rs525 billion

The country’s circular debt has reached Rs525 billion due to highly mismanaged power sector after top positions of public sector’s power companies have been occupied by Power Ministry’s officials, well- informed sources told Business Recorder.


Business Recorder


Senate body told: Rs37 billion under GIDC pending against KP govt

An amount of Rs37 billion under Gas Infrastructure Development Cess (GIDC) has been pending against Khyber Pakhtunkhwa since government of Pakistan Tehreek-e-Insaf (PTI) took charge there in 2013.


Business Recorder


CPEC opens doors for secured foreign investment: Shahbaz

Punjab Chief Minister Shahbaz Sharif has said the China-Pakistan Economic Corridor (CPEC) project has opened the doors of secured foreign investment in the country while the foundation of a prosperous and developed Pakistan have been laid.


Business Recorder


Sales decline in 2017 was ‘worst’ in five years, traders say

Political instability and poor economic policies squeezed public purchasing power, which resulted in a ‘drastic’ fall in sales in 2017 making it the ‘worst’ over the last five years, traders said on Monday.


Business Recorder


Rice Exporters urge govt active, better informed commercial attaches

Rice Exporters Association of Pakistan (REAP) has urged the government to appoint sincere, active and intelligent commercial counselors to boost the declining exports of the country.
RafiqueSuleman, acting chairman of REAP, has hoped that 2018 will be a better year for Pakistan’s overall trade, particularly export sector, which was facing decline for many years. Quoting half-yearly statistics, he said in six months approximately 11 percent growth has been observed in overall trade.


Business Recorder


SCCI demands withdrawal of hike in POL products prices

Sarhad Chamber of Commerce and Industry (SCCI) has termed the recent increase in prices of petroleum commodities as unwise decision of government for country’s economy and poor masses, and demanding for its immediate withdrawal.


Business Recorder


17pc GST to be charged on motor spirit

The Federal Board of Revenue (FBR) will charge 17 percent sales tax on motor spirit from January 01, 2018.
The FBR has issued SRO 1331(I)/2017 here on Monday.
Sales tax at the rate of 25.5 percent ad valorem would be charged on high speed diesel oil from January 01, 2018; 6 percent on kerosene oil and 6 percent sales tax would be charged on light diesel oil from January 01, 2018.


Business Recorder


LCCI concerned over impact of the hike in POL prices

The Lahore Chamber of Commerce and Industry (LCCI) has expressed dismay over hike in POL prices and expressed apprehensions over ill impact on the national economy.
“The Lahore Chamber rejects POL price hike and logic for this initiative given by the Ministry of Finance” and questioned why the comparison for just POL prices with India, Bangladesh and Turkey is made.


Business Recorder


Cotton prices hit season’s new high

 Prices hit fresh high on the cotton market on Monday as the ginners were not interested in new selling in expectations of further rise in the rates, dealers said.
The official spot rate picked up Rs 200 to Rs 7500 in a single day rally, they said. In ready session, over 20,000 bales of cotton changed hands between Rs 5750-8000, they said.


Business Recorder


Inflation rises to 4.6pc

 Inflation edged up 4.6 per cent year-onyear in December 2017 on the back of a persistent increase in petroleum products and regulatory duties on imported consumer goods.
This was the highest month-on-month increase since April 2017, her alding a trend that consumer inflation will go up in coming months, according to data released by the Pakistan Bureau of Statistics on Monday




PPL finds tight gas in lower Indus Basin

The tight gas potential is being explored in the lower Indus Basin, an official of the Pakistan Petroleum Limited (PPL) announced on Monday.
The source said that PPL, one of the key players in the exploration and production sector, is playing its due role in the development of unconventional reservoirs in the country.




32 power projects in pipeline: PPIB

The Private Power and Infrastructure Board (PPIB) is processing 32 multiple fuel-based power projects of 20,686 megawatts, which are in various stages of development, the body informed the Ministry of Energy in a recent presentation.




International Business News




Saudi, UAE introduce VAT in first for Gulf

Saudi Arabia and the United Arab Emirates introduced value-added tax from Monday, a first for the Gulf which has long prided itself on its tax-free, cradle-to-grave welfare system.
Saudi Arabia compounded the New Year blow for motorists with an unannounced hike of up to 127 percent in petrol prices with immediate effect from midnight


Business Recorder






No amnesty for proceeds of crime- Editorial

For a while, the government has been mulling over a new amnesty scheme for Pakistanis holding assets abroad to encourage them to declare/bring back their wealth and get it legalised on payment of a nominal tax, replenishing the country’s fast dwindling foreign exchange reserves. According to a press report, the FBR has now prepared a draft proposal suggesting three to five percent tax.


Business Recorder


Currency exchange rates









Selling TT & OD 110.50





Buying TT Clean






Buying OD/T.CHQ








Business Record

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