Important Business News 2nd July, 2019

Important Business News

2nd July, 2019

                                           

S.# Description Pg #            Source
 

1.

PM says his govt paid back $10bn 

Prime Minister Imran Khan has said the PTI government has paid back 10 billion dollars on debt servicing on loans taken by the previous governments.

In an interview to a private TV channel, he said his government is focusing on current account deficit and money laundering to lessen pressure on rupee.

He said his government inherited record current account deficit of over 19 billion dollars, which increased pressure on rupee.

https://epaper.brecorder.com/2019/07/02/1-page/789214-news.html

 

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Business Recorder

 

2.

MoF projects 2.4pc growth for current fiscal year

Ministry of Finance has projected 2.4 percent growth for the current fiscal year in the budget documents based on fiscal consolidation agreed with the International Monetary Fund (IMF) under the bailout package.

This was stated by former finance minister Dr Hafeez Pasha while talking to Business Recorder on Monday and confirmed by an official of the Ministry of Planning Commission on condition of anonymity.

https://epaper.brecorder.com/2019/07/02/1-page/789215-news.html

 

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Business Recorder

 

3.

Rs3/unit during off peak hours

The federal government has discontinued Industrial Support Package (ISP) of Rs 3 per unit during off peak hours (20 hours in total) effective from July 1, 2019.

This decision was taken by the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on June 26, 2019 with PM’s Finance Advisor, Dr Abdul Hafeez Shaikh in the chair.

https://epaper.brecorder.com/2019/07/02/1-page/789216-news.html

 

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Business Recorder

 

4.

Cabinet to approve withdrawal of Rs40,000 prize bonds today

The Federal Cabinet which is scheduled to meet on Tuesday (July 2) with Prime Minister in the chair will approve withdrawal of Prize Bonds of Rs 40,000, well-informed sources told Business Recorder.

The Central Directorate of National Savings (CDNS), an attached department of the Finance Division, plays a vital role in mobilizing domestic savings through National Savings Schemes (NSSs), and thereby provides budgetary support as non-bank financing and helps in managing inflationary pressures.

https://epaper.brecorder.com/2019/07/02/1-page/789217-news.html

 

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Business Recorder

 

5.

OPEC extends oil cut to prop up prices

OPEC agreed on Monday to extend oil supply cuts until March 2020, three OPEC sources said, as the group’s members overcame their differences in order to prop up the price of crude amid a weakening global economy and soaring U.S. production.

The move will likely anger U.S. President Donald Trump, who has demanded OPEC leader Saudi Arabia supply more oil and help reduce prices at the pump if Riyadh wants U.S. military support in its standoff with arch-rival Iran.

https://epaper.brecorder.com/2019/07/02/1-page/789219-news.html

 

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Business Recorder

 

6.

Imposition of sales tax

Textile processing mills on Monday decided to suspend operations against imposition of sales tax.

Arif Lakhani, Regional Chairman All Pakistan Textile Mills Processing Association, told Business Recorder that in a general meeting held on Monday, all association members have unanimously decided to suspend operations of textile processing mills across the country as customers are not agreed to pay new rates, fixed by processing mills after the imposition of sales tax.

https://epaper.brecorder.com/2019/07/02/1-page/789213-news.html

 

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Business Recorder

 

7.

Withdrawal of zero-rating regime

Withdrawal of zero-rating (under Statutory Regulatory Order 1125) to the five key export-oriented sectors (textile, leather, carpets, surgical and sports goods) in the Finance Act 2019 was necessary as the Pakistani negotiating team had committed its withdrawal as part of the prior conditions to the International Monetary Fund (IMF) under the 39-month 6 billion dollars bailout package. Ironically, however, the man who revealed this to the Standing Committee on Commerce and Textiles was none other than the Advisor to the Prime Minister on Commerce, Abdul Razzak Dawood, who had reportedly urged the government, albeit unsuccessfully, not to withdraw this facility at the present time given a woeful decline or stagnation in exports.

https://epaper.brecorder.com/2019/07/02/20-page/789377-news.html

 

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Business

Recorder

 

8.

Date for filing returns under ADO extended to Aug 2 

To encourage people to file returns under the Assets Declaration Ordinance 2019, the Federal Board of Revenue (FBR) has extended date for filing of income tax returns/statements for Association of Persons (AoPs) and individuals for the Tax Year 2018 to August 2, 2019.

According to the income tax circular number 5 of 2019 issued here Monday, the date for filing of income tax returns/statements for TY18 has been extended only in cases of individuals and AoPs whose returns were due on August 31, 2018 and September 30, 2018 and extended up to June 30, 2019 is hereby further extended up to August 2, 2019.

https://epaper.brecorder.com/2019/07/02/22-page/789390-news.html

 

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Business

Recorder

 

9.

PBIF expresses concern over govt spending, Inflation

President of Pakistan Businessmen and Intellectuals Forum (PBIF) Mian Zahid Hussain has expressed concern over the government spending, increasing value of dollar, inflation and unemployment. He noted that industrialists and traders have started agitation as the energy prices have been revised upward for the eleventh time in ten months whereas people still remain doubtful about amnesty scheme.

https://epaper.brecorder.com/2019/07/02/5-page/789248-news.html

 

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Business

Recorder

 

10.

MCC Gwadar collects Rs12.7bn custom duty in FY2018-19

Customs Collectorate (MCC) Gwadar has surpassed its revenue target by Rs700 million during Financial Year 2018-19.

According to details, the MCC Gwadar has collected Rs12.7 billion custom duty as against the target of Rs12 billion, surpassing its target by Rs700 million.

The collection of custom duty shows 30 percent growth as compared to the collection made during preceding year. The amount involves realisation of more than Rs1 billion revenue through encashment of guarantee after pursuance of court cases and through auctions of confiscated goods.

https://epaper.brecorder.com/2019/07/02/5-page/789246-news.html

 

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Business

Recorder

 

11.

Tax measures

The trade bodies, transporters, farmers, CNG pump operators, textile industrialists, owners of small & medium enterprises have all threatened countrywide strike against the tax measures contained in the budget 2019-20.

Representatives of traders from all over the county gathered here in Islamabad on Monday and condemned the govt’s anti-business measures which, they claim, were formulated without any input from the relevant stakeholders including Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI).

https://epaper.brecorder.com/2019/07/02/7-page/789265-news.html

 

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Business

Recorder

 

12.

PIAF rejects massive increase in gas, power tariff

Pakistan Industrial and Traders Associations Front (PIAF) has rejected the massive increase in gas and electricity rates, which has now been notified for implementation from Monday, July 01 (the first day of new fiscal year) under an agreement with the International Monetary Fund after approval by the federal cabinet.

PIAF former chairman Irfan Iqbal Sheikh said that the cost of doing business has been already increased manifold, leading to constant decline in exports and high trade deficit. https://epaper.brecorder.com/2019/07/02/8-page/789276-news.html

 

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Business

Recorder

 

13.

Businessmen urged to avail additional time for assets declaration scheme

The Lahore Chamber of Commerce & Industry (LCCI) on Monday appealed to the business community to avail additional time provided for assets declaration scheme.

While talking to a large group of businessmen belonging to various sectors of trade and industry here, LCCI President Almas Hyder, Senior Vice President Khawaja Shahzad Nasir and Vice President Faheem-ur-Rehman Saigal said that extension was demanded by Lahore Chamber to facilitate businessmen, who were unable to avail it due to paucity of time.

https://www.brecorder.com/2019/07/01/506649/businessmen-urged-to-avail-additional-time-for-assets-declaration-scheme/

 

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Business

Recorder

 

14.

WAPDA generated 31.425bn units of hydel power last FY   

Despite low flows and less availability of water in the country, Pakistan Water and Power Development Authority (WAPDA) contributed 31.425 billion units of low-cost hydel electricity to national grid during the last fiscal year (2018-19). This quantum of electricity was 4.358 billion units more when compared with hydel generation of fiscal year 2017-18 and this additional contribution of hydel electricity not only helped resolve the issue of load-shedding in the country but also stabilize the power tariff, according to WAPDA spokesman here Monday.

https://www.brecorder.com/2019/07/02/506713/wapda-generated-31-425bn-units-of-hydel-power-last-fy/

 

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Business

Recorder

 

15.

Treasury single account gets going; Benami crackdown zones identified

The government has empowered the federal secretaries to have full control over development and non-development funds of their respective ministries and attached organisations and be responsible to surrender all unspent funds to the consolidated fund at least 25 days before the close of fiscal year.

This has been done with coming into force of the Public Finance Management Act 2019 as part of the Finance Bill 2019 that also completely binds the ministries and their secretaries not to keep public funds in commercial banks.

https://www.dawn.com/news/1491569/treasury-single-account-gets-going-benami-crackdown-zones-identified

 

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Dawn

 

16.

Textile exports stagnate despite incentives

The slump in Pakistan’s exports continued in May on the back of overall slowdown in the country’s manufacturing and agriculture sectors.

Data published by the Pakistan Bureau of Statistics (PBS) on Monday showed that the country’s cumulative exports in the first 11 months of the current fiscal year fell by marginal 0.29 per cent to $21.267 billion compared to $21.329bn during the same period last year.

https://www.dawn.com/news/1491566

 

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Dawn

 

17.

10pc regulatory duty on used clothes slammed

The Pakistan Second Hand Clothing Merchants Association (PSHCMA) on Monday urged the government to remove 10 per cent regulatory duty (RD) on used clothes imports. It further called for the need to bring down withholding tax to 1pc from current 6pc in order to offset the impact of rising landing cost of imported items due to rupee depreciation against the dollar.

Calling the 10pc RD unjust, the PSHCMA said the move was making the life of middle and lower income people difficult.

https://www.dawn.com/news/1491567/10pc-regulatory-duty-on-used-clothes-slammed

 

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Dawn

 

18.

Processing mills on strike against 17pc sales tax

All 600 textile processing units in four major cities of the country have been closed in protest against the imposition of a 17 per cent sales tax on five zero-rated sectors and the government’s failure to get the trade sector registered with the tax net.

Though the processing units’ owners are yet to lay off hundreds of thousands of workers, they say they may take this decision within the next 10 days if the government continues ignoring their genuine demands.

https://www.dawn.com/news/1491539

 

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Dawn

 

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