Day: November 2, 2021

The law minister, in a briefing session with the IMF, mentioned that section 46B (8) in the State Bank (Amendment) Bill breaches the constitution.

Talking through a video link, the minister highlighted the newly introduced provision which suggests that the central bank will be consulted on new legislation relating to the State Bank of Pakistan (SBP).

According to Farogh Naseem, the constitution only gives the right of legislation to the parliament and does not mention any consultation with the State Bank of Pakistan. Therefore, the new provision to consult the central bank before proceeding to legislation regarding the institution is a violation of the constitution.

Furthermore, the minister told the officials that the provision was likely to be turned down by the judiciary and the parliament as it clearly violates the constitution.

He moved on to Section 15(1) and declared it unconstitutional, mentioning that it is unauthorized to dismiss governors, deputy governors, or non-executive directors and external members of the Monetary Policy on the basis of misconduct. This can only be done through the approval of the Court of Law.

Farogh Naseem stated that this provision breached Article 25 which focuses on equality of citizens. The minister mentioned that the officials can be dismissed from their duties if proven guilty by the court.

The minister further went on to mention different Articles that the new provisions violated which included NAB Ordinance 1999, and FIA Act 1974.

Finally, the minister concluded that as the government does not have a two-thirds majority in the parliament, therefore, the constitution can not be amended. He further said that it would require several months for the bill to be legislated and therefore it is not possible to pass the bill before the 17th of December.

Source: Pro Pakistani

Pakistan’s monthly petroleum consumption surged to an all-time high in October 2021, second only to the monthly sales of May 2018, amid growing economic activity and increasing oil prices. PSO posted the highest monthly sales, followed by SHEL.

In October of FY22, total petroleum sales (including lubricants) swelled to 1.99 million tons against 1.70 million tons in October FY21, posting year-on-year (YoY) growth of 17 percent. Among the POL products, high-speed diesel (HSD) made the highest contribution of 0.84 million tons, experiencing a YoY growth of 25 percent. This sales volume is the highest in any month of the current fiscal year and is second only to May 2018 figures.

According to Arif Habib’s petroleum report, this massive increase in sales volume is due to:

• Substantial increase in the demand for HSD in the agriculture and transportation sector.

• Boost in economic activity as businesses ramp up production due to increased local demand and higher trade activity.

• Significant increase in the sales volume of automobiles, posting a growth of 84 percent in the first quarter of the current fiscal year against the same period last year.

• Improved border management to curb the sales of smuggled fuel.

• Increased reliance on fossil fuel-based power plants for electricity generation.

Among the OMCs, PSO posted the highest sales, reporting year-on-year growth of 35 percent. SHEL sales figures grew by 22 percent in October 2021 against the same month last year. However, not all OMCs were able to increase their petroleum sales. APL and HASCOL sales declined year-on-year by 3 percent and 73 percent, respectively.

It is to be noted that petroleum sales increased even when POL prices reach historic highs.

Source: Pro Pakistani

Equity, treasury bills (T-Bills), and Pakistan Investment Bonds (PIBs) witnessed foreign investment outflows almost three times higher than the inflows in October of FY22.

Cumulatively, the inflows added up to $58.5 million, whereas the outflows were recorded at $178.58 million, bringing the net outflows to $120 million. This trend reflects the dwindling interest of investors despite attractive returns.

Equity registered the highest outflow in October, with a total of $134.5 million withdrawn by investors compared to an inflow of $34.2 million. Similarly, in PIBs, the outflow was recorded at $30.2 million, far greater than the inflow of only $7.7 million.

However, T-Bills experienced a higher inflow than outflow. The inflows were recorded at $16.6 million against an outflow of $13.8 million during the month.

The data from four previous months (July FY22–Oct FY22) also shows that the outflows have been relatively greater than the inflows. Collectively, the three investments saw a net outflow of $565.9 million against a net inflow of $304.4 million.

During this period, the biggest outflow was seen in equity, as a total of $369 million was withdrawn by investors. A total of $142 million was also invested in equity during the same period.

Furthermore, the outflows in PIBs during these four months were $50.6 million compared to an inflow of $27.5 million. Similarly, the outflows for T-bills were $146.2m against an inflow of $134.7m during the same period.

The great increase in the outflows and the increasing gap between the inflows and outflows have been credited to the uncertain and volatile exchange rate.

Source: Pro Pakistani

Muhammad Azfar Ahsan, a seasoned strategic engagements and communications specialist in the corporate sector, has been appointed as the Chairman Board of Investment (BoI) and State Minister, ProPakistani has confirmed with its sources.

He will be replacing Atif A. Bokhari, who quit the board to join Askari Bank Limited as Chairman and President. Azfar has not been notified yet, and if sources are to be believed, then his notifications would surface later this week.

Azfar Ahsan is the founder of Nutshell Conferences, Nutshell Communications, and Pakistan Corporate Group. Over the last few years, he expanded his business and strengthened its relationship with multinational and local companies in the public and private sectors.

He helped introduce various influencers and investors in Pakistan through his conferences, which eventually built a positive image among the foreigners and investors fraternity.

Recently, he set up Nutshell Communications and hired renowned specialists in the Public Relations industry. Within a short span of time, the agency has signed big companies as clients, including K-Electric, TCS Group, Jaffer Brothers, FrieslandCampina Engro Pakistan, Martin Dow, and Hive.

Azfar is a member of the Board of Directors of the Institute of Financial Markets of Pakistan, a subsidiary of Securities and Exchange Commission of Pakistan (SECP), RYTS Global (Rytsglobal.com), and Make-A-Wish Foundation Pakistan. He is also a member of the Advisory Board of the Shaukat Khanum Cancer Hospital project in Karachi and Vice-President of the Marketing Association Pakistan, an apex body of marketing in Pakistan. He also served as the Chairman of MARCON, Pakistan’s flagship marketing event, in 2009.

Over the last twenty years, Azfar has managed dozens of community projects all over Pakistan in the fields of health and education. In 2019, the Canada Pakistan Business Council, in recognition of Azfar’s services, conferred him with the ‘Global Outreach Award,’ which was presented to him at their Annual Gala and Awards Night in Toronto, Canada, in the presence of 500 Canadian nationals and Pakistani diaspora.

In December 2020, the US State Department selected and featured Azfar in the list of eighty selected alumni of the International Visitors Leadership Program (IVLP) out of 225,000 participants from around the globe.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) will launch a Single Sales Tax Portal in the ongoing month, November 2021, to facilitate taxpayers and ensure ease of doing business through automation, digitization, and minimization of human interaction with taxpayers. Prime Minister Imran Khan is likely to launch the initiative.

According to a handout issued by FBR, the decision has been made after thorough discussions with the provincial revenue authorities of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan, as well as Azad Jammu & Kashmir.

This facility will enable taxpayers to file single monthly Sales Tax returns instead of multiple returns (six in the past) on different portals. It will significantly reduce the time and cost of compliance, and thus help achieve maximum efficiency.

The handout reveals that the system will be intelligent enough to sift and collect revenues from a single taxpayer and distribute the same among multiple revenue agencies.

This unique project will also help resolve the long outstanding issues of input tax adjustment among relevant stakeholders. With the proposed launch of the Single Sales Tax Portal, the existing cumbersome and tedious processes will be replaced with an efficient & automated system of tax adjustments, with minimum human involvement.

As per the handout, the portal will also be beneficial for tax collectors in having a ‘360-degree view’ of taxpayers’ business activities across the country in order to maximize revenue potential and tax compliance. By all standards, this is a giant leap forward in taxpayers’ facilitation and at the same time, a significant step in the harmonization of taxes between federal and provincial governments.

Source: Pro Pakistani

The Pakistan Rupee appreciated against the US Dollar (USD) on Tuesday and continued its run against the dollar. It gained 75 paisas against the dollar and closed at 170.54, posting a growth of 2.77 percent since crashing to an all-time low in October.

On Monday, the local currency continued to register its largest increase in value since April 2020. It added 36 paisas against the dollar and closed at 171.29 in the interbank market yesterday.

The rupee has appreciated Rs. 4.73 in the past four market closings. The local unit has continued its growth against the US dollar as Pakistan received funds from Saudi Arabia through the supplementary foreign exchange reserve assets (SDRs), which are units of account for the International Monetary Fund (IMF). They represent a claim to currency held by IMF member countries for which they may be exchanged.

It should be noted that Saudi Arabia is the largest Arab country to obtain 9577.5 million SDRs, with a 2.1 percent voting stake.

The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, discussed the news on Twitter and expressed confidence that the rupee would stabilize.

The PKR appreciated against other major currencies too. It gained 38 paisas against the Euro, 121 paisas against Pound Sterling (GBP), 117 paisas against the Australian Dollar (AUD), and 70 paisas against the Canadian Dollar (CAD).

It also added 20 paisas against both Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED) today.

Source: Pro Pakistani