Day: November 16, 2021

The National Assembly’s Standing Committee on Finance met earlier today under the chairmanship of PTI MNA Faizullah Kamoka and received a briefing on the trade ties between Pakistan and Azerbaijan.

During the meeting, Deputy Governor State Bank of Pakistan (SBP) Dr. Murtaza Syed apprised the committee that trade between the two countries takes place through Iran and traders are facing a lot of challenges ever since sanctions were imposed on Iran.

JUI-F MNA Muhammad Yaqoob Sheikh suggested to the Deputy Governor that Afghanistan and Turkmenistan can be used as alternative routes for trade with Azerbaijan until the ease of sanctions on Iran.

PML-N MNA Qaiser Ahmed Sheikh said that SBP hasn’t done anything to explore alternative trade routes to Azerbaijan which is why traders are beset with difficulties.

PTI MNA Jamil Ahmed Khan lamented that there was only one branch of the National Bank of Pakistan (NBP) in Kyrgyzstan that has been shut down as well.

PTI MNA Munaza Hassan said that Azerbaijan wants to supply oil and gas to Pakistan on deferred payments but SBP hasn’t done anything in this regard.

The committee directed Deputy Governor to present suggestions to ensure uninterrupted trade between Pakistan and Azerbaijan through alternative routes within 15 days. It also ordered him to brief about the trade between Pakistan and Iran at the next meeting.

Source: Pro Pakistani

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has decided to prepone its next meeting from 26 November.

It has issued a press release in this regard that read: “The MPC will now convene in SBP Karachi on Friday, November 19, 2021,”

It explained that the meeting has been brought forward in light of recent unforeseen developments that have affected the outlook for inflation and the balance of payments, and to reduce the uncertainty about the monetary settings in the market.

The MPC will take stock of these developments and will decide about the monetary policy, and the SBP will issue the Monetary Policy Statement through a press release on the same day.

Source: Pro Pakistani

Waves Singer Limited will produce 25,000 coolers of different variants for its client, Coca-Cola, which will be the latter’s largest-ever order.

It has received a corporate order worth Rs. 1.438 billion from Coca-Cola, as per a stock filing.

This is Coca-Cola’s second consecutive year of ordering a supply of branded Coca-Cola freezers since the approval of the manufacturer.

Waves Singer Limited will produce 25,000 chest coolers and visi coolers worth Rs. 1.438 billion until the end of the financial year 2021-22.

It produced 22,850 units of chest coolers and visi coolers at the cost of Rs. 944 million last year.

Waves Singer Limited is one of Pakistan’s leading manufacturers of appliances and has been expanding its business consistently. It also plans to explore opportunities in the businesses of real estate and construction.

The company’s net profit has been Rs. 371 million during the nine months of 2021, as compared to the Rs. 90 million recorded in nine months in the period that ended on 30 September 2020. Its growth can be attributed to the easing of the lockdown, the extended summer, and an increase in disposable household incomes coupled with better cost absorption due to higher volumetric growth.

Source: Pro Pakistani

The Pakistani Rupee (PKR) recovered against the US Dollar (USD) for the second day in a row and appreciated 40 paisas against the greenback in the inter-bank market today.

It appreciated by 0.23 percent against the USD and closed at Rs. 174.89 today after it posted gains of 43 paisas and closed at Rs. 175.29 in the inter-bank market on Monday, 15 November.

So what’s up with the Rupee lately? It is playing the bull and bear numbers a lot faster than anyone could have predicted. The local currency’s growth is feeling the weight of the imbalances it spawned a few years ago (particularly the external deficits), and may settle at resistance levels that are harmful to the economy according to current trends.

Today’s gains are a mere reflection of yesterday’s surge against the remarks of Finance Advisor Shaukat Tarin, and the release of the remittances figure for Q1 FY22.

Considering the PKR’s interbank performance earlier today during the trading hours, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, seemed disappointed with the Rupee’s performance as it failed to exploit gains to achieve higher resistance levels. He said, “Yesterday after a blistering start Rupee failed to keep its upside momentum”.

“Release of remittances figure of $ 2.5bn inflow for OCT & FM’s statement of undervalued #PKR supported the local currency, but late demand narrowed the gain. It may continue to look for direction,” he added.

The PKR maintained its performance against most of the other major currencies as well and posted encouraging gains in the inter-bank currency market today.

It gained a whopping Rs. 1.85 against the Euro (EUR), 12 paisas against the Malaysian Ringgit (MYR), and five paisas against the Chinese Yuan (CNY).

It also posted gains of 11 paisas against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in today’s inter-bank currency market.

Besides this, the PKR posted gains of 23 paisas against the Canadian Dollar (CAD), 51 paisas against the Australian Dollar (AUD), and losses of 19 paisas against the Pound Sterling (GBP).

Source: Pro Pakistani

Interloop Limited (ILP) is planning to invest about $100 million to set up a vertically integrated knitwear apparel plant, reported Link News on Tuesday citing the management of ILP.

During a discussion on the company’s latest financial results and future outlook, the management said the decision was made in view of an increase in the market demand. It added that the company, at present, was looking forward to doubling the capacity of its denim plant and increasing the production of 20,000 pieces per day to 40,000 pieces per day.

Under its vision 2025, ILP intends to double its revenue by $700 million. The expenditures of the plan will add up to $300 million from which 50% will be financed through debt whereas 50% through internal cash generation, adds the report.

Moreover, the company may also approach the State Bank of Pakistan to finance its operations at an interest rate of 2-2.5% with a maximum limit of $5 billion for the next five years.

It is to be noted that the net income of the company increased by 95% during the first quarter of the current fiscal year as compared to the first quarter of the previous fiscal year. During the same time period, the net sales of the company surged by 50% Year-on-Year to Rs. 19.3 billion as the company added new machinery in its hosiery division.

With the addition of denim and hosiery plants, the company is expected to gain more revenue.

Source: Pro Pakistani

Prime Minister Imran Khan will inaugurate the Track and Trace system of the Federal Board of Revenue (FBR) for the sugar industry on 23rd November.

The Track and Trace system will ensure electronic monitoring of manufacturing and sales of products of important sectors like tobacco, fertilizer, sugar and cement. The scope of electronic monitoring ranges from manufacturing of the products to its usage by the end-users, thus bringing much-needed revenue for the country and preventing tax evasion in these sectors.

After rolling out electronic monitoring of the tobacco sector, FBR is now implementing the Track and Trace System in the next sugar sector which will be followed by the remaining sectors. In this regard, FBR has already issued Sales Tax General Order No-5 vide powers conferred under Section 40C (2) of the Sales Tax Act-1990 and Rule 150 ZF of the Sales Tax Rules-2006.

The said STGO ordains that no Sugar Bag will be allowed to move out of a production site, factory premises or manufacturing plant without affixation of activated stamps/Unique Identification Marking (UIMs) with effect from 11th November 2021.

The Stamps/Unique Identification Markings (UIMs) are to be obtained/procured from FBR’s Licensee Ms. AJCL/MITAS/Authentix Consortium. The provisions of Section 40C (2) of the Sales Tax Act-1990 read with Rule 150 ZF of the Sales Tax Rules-2006 mandate FBR to notify the date for the implementation of Electronic Monitoring of Production and Sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors.

FBR is paying special attention to the automation of processes and digitization of economic transactions. It is moving from manual systems to automated technology, with the aim to bring a change in the taxation system. The Track and Trace System and many other similar initiatives and interventions are meant to increase revenues, promote transparency and thereby maximize tax compliance in Pakistan.

In the next phase, FBR is planning to cover the beverages and petroleum sector into the Track and Trace System.

Source: Pro Pakistani