Day: September 7, 2021

The Federal Board of Revenue has issued rules for the licensing of information technology service providers and the rendering of IT services to retailers undergoing integration under FBR vide SRO 1063 (I)/2021, dated 24 August 2021.

The operationalization of the licensing regime may take some time to complete.

To facilitate retailers with seamless integration, current IT service providers will continue to provide services to their clients until the board notifies the licensed IT service providers.

Source: Pro Pakistani

The Pakistan Association of Large Steel Producers rejected the Association of Builders & Developers’ accusation that a recent increase in prices of reinforcing bars was a conspiracy against the Naya Pakistan Housing Scheme.

In a statement, the steel producers’ association insisted that a rise in steel bar prices wasn’t a real impediment to the housing project.

“However, the biggest barrier to affordable housing is the real estate builders and developers themselves,” the statement said.

The Pakistan Association of Large Steel Producers (PALSP) insisted that the government should regulate developers who were using a surge in real estate prices to chase higher margins.

“With some of the highest net profits and returns on equity margins across industries, the need of the hour is the government regulations to fix the pricing of various categories of real estate projects whether it be residential or commercial development,” the PALSP said.

The association added that the government should monitor income tax submissions of major players in the real estate development sector to ensure transparency.

Last week, the Association of Builders and Developers of Pakistan (ABAD) released a statement criticizing a sharp spike in the prices of steel rebars over the past ten months.

ABAD Chairman, Fayyaz Ilyas, said that the price of steel bars was currently at Rs. 178,500 per tonne, up from Rs. 110,000 per tonne in November last year.

He accused manufacturers of artificially raising prices to make additional profits out of the Naya Pakistan Housing Scheme.

“In this situation, the federal government will not be able to fulfill its promise of constructing five million low-cost houses,” the ABAD statement said.

The Naya Pakistan Housing Scheme is an affordable housing project initiated by Prime Minister Imran Khan aimed at providing low-cost subsidized homes for low and middle-income earners.

The project has pledged to build a total of 5 million affordable homes and will require major input from contractors in the construction industry and related sectors.

Source: Pro Pakistani

The federal Minister for Finance and Revenue, Shaukat Tarin, has urged officials to adopt forward planning while dealing with volatile energy prices in international markets.

He said this at a meeting with the federal Minister for Energy, Hammad Azhar, and the Special Assistant to the Prime Minister on Power and Petroleum, Tabish Gauhar, at the Finance Division today.

The Secretary of Power, the Secretary of the Finance Division, and other senior officers attended the meeting.

The Minister for Finance emphasized the importance of risk hedging to dampen the impact of the recent fluctuations in the global prices of crude oil and petroleum products particularly due to the supply side disruptions amid the pandemic.

He also stressed the need to explore cost-effective options such as renewable sources of energy for a sustainable energy equation by reducing the reliance on expensive power-producing plants to make the energy sector dynamic and sustainable.

The Minister for Energy briefed the attendees of the meeting about the growing demand for energy, installed generation capacity, transmission capability, and the steps being taken to improve the transmission and distribution systems to reduce costs and ensure sustainability.

In his concluding remarks, Minister Tarin stated that the incumbent government is cognizant of its obligation to fulfill the energy requirements at affordable rates for electricity consumers, and said that it is taking all possible measures to meet future energy demands. He also affirmed full support to and facilitation of the energy sector.

Source: Pro Pakistani

The Pakistan Sugar Mills Association plans to challenge the fine of Rs. 44 billion imposed on it by the Competition Commission of Pakistan in court.

The association and its 81 member sugar mills are yet to deposit the penalty money that the commission demanded, according to Business Recorder.

According to the report, the Spokesman for the Pakistan Sugar Mills Association (PSMA) said, “We are going to challenge the CCP order in the high court within 60 days from the date of the issuance of this biased order”.

The Competition Act, 2010, states that the PSMA can challenge the Competition Commission of Pakistan’s (CCP) decision within 60 days in the Competition Appellate Tribunal (CAT).

However, the tribunal is currently not operational because its bench is incomplete. A bid to appoint a technical member for the CAT had been sent to the federal Cabinet in August but the agenda item had been set aside. Sources disclosed that this means that the PSMA will not be able to file an appeal in the CAT, which is why it is considering approaching the high court with a writ petition.

After months of legal back-and-forth, the CCP found the PSMA and its member mills guilty of a number of anti-competitive activities in August. The activities include fixing export quantities and making collective decisions on sales and production numbers, which allowed the industry to artificially control domestic stock and quantity.

The CCP’s verdict is premised on the PSMA and its mills’ actions being anti-competitive by object. This means that as long as they had intended for their activities to restrict competition, they are guilty of anti-competitive behavior. It is not necessary to prove that their actions did, in fact, restrict competition.

The decision is also based on the allegation that the PSMA and its mills had illegally shared commercially sensitive stock information on a fortnightly basis. This may lead to distortions in the market and artificially influenced sugar prices as the perceptions of resource stockpiles and fears of a shortage can dramatically alter price trends.

The CCP concluded the legal battle by pressing its highest penalty on record on the PSMA and its mills. This decision was not a unanimous one, and was the commission’s first split verdict. Two of the CCP’s members had initially voted against the penalty, causing the chairperson to call for a second vote to push through the decision.

Source: Pro Pakistani

Pakistan has the potential to form a new economic bloc with Russia, China, and the Central Asian and SAARC [South Asian Association for Regional Cooperation] states.

This was stated by Acting President Rawalpindi Chamber of Commerce and Industry (RCCI) Mr. Osman Ashraf in a statement. He observed that Pakistani products had a high demand in Uzbekistan, Kazakhstan, and Tajikistan. “The country’s exports can be increased by promoting regional trade. We need to find new markets.”

He asserted that Pakistan could benefit from enhanced trade with Central Asian republics (CARs) which were rich in oil, gas, and other energy resources. There is a need for signing more transit and preferential trade agreements with these countries, as half of the world’s population lives in this region, he urged.

Mr. Ashraf rued, “Exports have been affected by the lockdown [imposed in the wake of COVID outbreak], yet we have to promote our products through virtual platforms. In the prevailing challenging situation, there is a huge opportunity for us to re-examine our market and products.”

He explained that by using the virtual platform, the Pakistani chambers of commerce could liaise with the government to identify different sectors and industrial zones, sharing information of respective trade sectors with commercial consuls abroad. He underlined that the bilateral trade volume between Pakistan and CARs was less than a billion dollars. However, he said, efforts could be made to double the trade volume within the next couple of years.

He maintained that the China-Pakistan Economic Corridor (CPEC) offered great regional connectivity and integration from South Asia, Central Asia, and beyond. He emphasized the need to improve the banking channel, transportation, and road and railway network so that perishable goods could get more sustainable.

Source: Pro Pakistani

The federal government has notified the maximum price of filled Oxygen Cylinder for retail Sale.

Documents available with ProPakistani stated that the Ministry of Industries and Production has fixed the maximum retail price of oxygen cylinders with different cylinder capacities.

The Ministry of Industries and Production said on Friday it was capping the price of oxygen cylinders used to treat COVID-19 patients and other respiratory diseases after complaints of hoarding and shortages were observed by the government.

The aforesaid directives were notified in a detailed circular under S.R.O No.1114(I)/2021 for the Price Control and Prevention of Profiteering and Hoarding Order, 2021.

According to the notification, the maximum retail cost of an empty 10 litre oxygen cylinder has been fixed at Rs. 12,500, while for a filled cylinder, the price has been capped at Rs. 12,900 and Rs. 400 for refilling.

The consumer has to pay Rs. 400, Rs. 960 and Rs. 1100 extra if they want to refill the above-mentioned different capacity cylinders.

The maximum retail cost of an empty 40 litre oxygen cylinder has been set at Rs. 23,000, while for a filled cylinder, the price is now fixed at Rs. 23,960 and Rs. 960 for refilling.

The maximum retail cost of an empty 47 litre oxygen cylinder has been fixed at Rs. 25,000, while for a filled cylinder, the price has been capped at Rs. 26,100 and Rs. 1,100 for refilling.

The document further added that the ministry of I&P has directed the provincials as well as ICT administration to implement this order under the powers delegated to them by SRO F.No1(7)/2005-CA, Vol-III dated 14th September 2006 and to take action against the producers, dealers, distributors and retailers who do not comply with this order, as provided under the Price Control and Prevention of Profiteering and Hoarding Act, 1977.

However, provinces and federal regions/ICT may add an allowance to the notified prices for extra transportation costs in remote or distant areas, the document added.

All divisions have been directed to add an allowance to the above-mentioned prices, respectively, for extra transportation costs in remote/distant areas. To make sure that the price verticles are strictly followed, compliance reports will be prepared on a weekly basis.

Further, a weekly compliance report shall be submitted by authorities exercising the delegated powers of Controller General of Prices in the provincial and federal regions/ICT. This order shall come into force immediately and shall be given wide publicity through a notification in the official gazette.

Further, a weekly compliance report shall be submitted by authorities exercising the delegated powers of Controller General of Prices in the provincial and federal regions/ICT. This order shall come into force immediately and shall be given wide publicity through a notification in the official gazette.

Source: Pro Pakistani