Day: May 22, 2024

The federal government is planning to give tax exemptions to local startups next fiscal year. If approved, the exemptions would cover health technology, artificial intelligence, financial technology, and agriculture technology sectors, reported Dawn on Wednesday. This initiative was discussed during a meeting chaired by Prime Minister Shehbaz Sharif on Tuesday. IT Minister Shaza Fatima Khawaja highlighted tax exemptions as a means to address the disparity between private individuals and startups. Currently, private individuals enjoy zero tax, while those associated with organizations face a 35 percent tax rate. PM Shehbaz instructed the central bank governor to ensure that banks do not create obstacles for software exporters regarding debit cards and foreign currency issues. He also emphasized the need for private-sector consultations to support startups. A target of $25 billion in IT exports was also set till 2029, with plans to expand tech services and captive IT businesses. The premier was briefed t hat the Pakistan Digital Nation project aims to digitize state affairs and the economy. Additionally, a target has been set to train approximately 1.5 million individuals in the IT sector over the next five years. The meeting was informed of plans for ensuring international certifications for IT professionals through public-private partnerships, establishing three IT parks, and setting up 250 e-Rozgar centers. The meeting also discussed enhancing mobile broadband coverage to 100MBPS and increasing fiber penetration to 12 percent. Shehbaz underscored the potential of the IT sector in Pakistan and the critical role of entrepreneurs in its development. Source: Pro Pakistani

Pakistan Aluminium Beverage Cans Limited (PSX: PABC) expects to incur an impact on its revenue from exports to Afghanistan due to logistical disruptions at Chamman, the can maker informed the main bourse on Wednesday. 'Due to ongoing security issues at Chamman, we are experiencing logistical disruptions and a shortage of vehicles for our exports to Afghanistan, which may impact revenue from Afghan exports,' the stock filing stated. It added, 'Coupled with the near 25 percent YoY decline in local order bookings, we expect a negative impact on our order bookings during the peak season'. PABC has been listed on the Pakistan Stock Exchange since July 16, 2021. The principal activity of the Company is the manufacturing and sale of aluminium cans. The Company completed the installation, testing, and commissioning of its manufacturing facility at Faisalabad Special Economic Zone and commenced commercial operations in September 2017. At the time of filing, the company's scrip at the bourse was Rs. 63.61, down 5. 34 percent or Rs. 3.59 with a turnover of 366,169 shares on Wednesday. Source: Pro Pakistani

The price of gold in Pakistan declined marginally on Wednesday to close at Rs. 248,200 per tola. According to data issued by the Karachi Sarafa Association, the price of gold (24 carats) dropped by Rs. 300 per tola to Rs. 248,200, while the price of 10 grams fell by Rs. 236 to Rs. 212,791. The Sarafa Association said in a brief statement that the price of gold has been kept under cost by Rs. 4,000 considering the significant reduction in purchasing power of the public. The price of the precious metal had begun the new week with an increase of Rs. 2,300 per tola on Monday, however, the price fell by Rs. 1,900 per tola yesterday after international prices declined. In the international market, spot gold slipped by 0.3 percent to $2,413.96 per ounce as of 1127 GMT. Source: Pro Pakistani

The auto vendors have asked the government to revisit import of used cars policies during the upcoming budget as the import of used cars has caused over Rs. 50 billion in losses to the country's economy during the first eight months of the current fiscal year. According to data, the used vehicles soared to 25,000 units, marking a staggering 641 percent increase during the first eight months of the current fiscal year, compared to last year's 3,386 units imported. The representatives of the local auto industry told ProPakistani that the local automobile sector is suffering due to the government's decision to allow the import of used and unregistered vehicles. They argued that the government consistently fails to safeguard local industries, despite these industries benefiting from billions of dollars in foreign investments and providing employment to over 5 million workers. Industry representatives revealed that the import of used cars has caused over Rs. 50 billion in losses to the local industry and econ omy during the first eight months of the fiscal year 2023-24 alone. Initially intended for overseas Pakistanis, the allowance for used car imports has been exploited through corrupt practices, with vehicles imported in their names for profit-making ventures, claims the industry. The document highlights that favorable taxation and duty policies towards used car imports have also played a part in crippling the local assembling industry, leading to reduced demand for domestically assembled automobiles. The automobile manufacturers are also concerned that grey channel transactions for used car imports pose a significant threat compared to legal transactions for local manufacturers, resulting in potential revenue losses for the economy. Furthermore, despite an unwavering resolve to manufacture a substantial portion of car parts locally, unfavorable policies have led to inefficient production facilities, job losses, and a lack of motivation to boost the local industry. According to industry suggestions, the go vernment should immediately discourage or regulate used car imports to support local industry growth and competitiveness. Besides, policymakers should engage in creating mutually beneficial policies that foster industry growth and job creation. Furthermore, relevant authorities need to implement consistent policies that enable the local industry to thrive and contribute positively to the economy. Pakistani automobile manufacturers asked the government to protect millions of families from unemployment, it said that even with 13 local manufacturers and assemblers and thousands of used import cars, the segment is still out of reach of the common man due to skyrocketing taxes and duties. A consistent and favorable policy to encourage the local auto industry enables it to become more productive towards boosting the industry. Compared to the local manufacturing industry, the import of used cars does not employ many people. The import process involves a few people, often from the same family, with one sitting in Japan and the other sitting in any Pakistani city engaged in a black market business that only seeks to serve the luxury lifestyle. On the other hand, local car manufacturers are a valuable economic asset of our country. Source: Pro Pakistani

The Federal Board of Revenue (FBR) has restricted the entry of visitors at its main headquarters to ensure confidentiality and security of the budget preparation process. According to a circular issued by the tax machinery, only the FBR Chairman, Tax Members, and Director Generals (DGs) will be allowed on the premises. Meanwhile, visitors who wish to enter the FBR HQ must now arrange their visit in advance and obtain an appointment. In case a confirmed meeting or appointment of any visitor is rescheduled or canceled for any reason, it is the responsibility of the concerned to inform the reception well in advance. Notably, the federal budget 2024-25 will be presented in parliament on June 7, 2024. Source: Pro Pakistani

Crescent Star Insurance Limited (PSX: CSIL) Wednesday announced that it has started receiving money from advance given to Dost Steels Ltd (DSL), in continuation of the arrangements made. 'Further to information shared by Crescent Star Insurance Limited (CSIL) on August 31, 2023 leading to a broad based settlement with Dost Steels Ltd (DSL), for the investment made by CSIL, the management would like to inform that CSIL had withdrawn all litigation with DSL which led to the reorganization of the DSL Board and management earlier this year,' the company said in a notice to the Pakistan Stock Exchange (PSX). CSIL said it is confident to resolve this long outstanding matter. As part of the efforts CSIL has extended its support once again to DSL, and has nominated Naim Anwar (CEO-CSIL) as Director and Chairman on the Board of DSL, and Suhail Elahi (Director) and Board member of CSIL as CEO of DSL in the recently constituted Board of DSL. A larger and broad based structural business plan will soon be shared by DS L through its Board approval. This will lead the company to play an active role in the larger interest of all stakeholders. Source: Pro Pakistani