Day: December 7, 2021

The federal cabinet has approved extension in service of Chairman Securities and Exchange Commission of Pakistan (SECP) Aamir Khan for another three years.

This is the first in the history of SECP that a sitting chairman has been awarded an extension. Prime Minister Imran Khan first appointed Aamir Khan as Commissioner SECP in December 2018 and he was later elevated as Chairman in August 2019.

Advisor to the Prime Minister on Finance and Revenue Shaukat Tarin apprised the federal cabinet of the reforms, featuring legal, structural, regulatory, operational and product development initiatives, by SECP in the last three years. The reforms have been envisioned to further the government’s vision of improving ease of doing business, expanding financial inclusion, digitizing corporate processes, developing the capital market, and strengthening enforcement of laws.

SECP has achieved end-to-end digitalization of the company registration process, which has resulted in nearly 60% growth in the number of registered companies over the past three years, accumulating to 156,000 companies as of November 30, 2021, from 93,000 in December 2018, according to an SECP report.

In order to simplify, speed up and make enforcement and supervision effective, SECP has separated the functions of Supervision and Adjudication, by establishing two centralized autonomous divisions. All the SOPs and processes related to the initiation and conclusion of regulatory enforcement actions were revamped for ensuring independent adjudication and supervision.

SECP in collaboration with the Pakistan Stock Exchange (PSX) has introduced an alternative board, the Growth Enterprise Market (GEM) to encourage smaller companies to list equity securities and avail the benefits of listing at the exchange. The first SME was successfully listed at the GEM Board last week.

The commission introduced the electronic-IPO system in coordination with the Central Depository Company of Pakistan Limited (CDC). Through the said system investor(s) can submit IPO applications electronically and make subscription payments through e-banking channels. The simplification of the IPO process resulted in eight equity- and two debt-IPO issues that took place during the year. The companies have raised Rs. 56 billion through IPOs in 2020-21, the highest in the last 10 years. In addition, the highest number of companies listed during the year as compared to the last 5 years.

Moreover, SECP introduced Exchange Trade Funds (ETFs) in the capital market, for which the definition of investment advisory services was amended to enable brokers to launch low-cost ETFs. PSX has successfully launched two Exchange-Traded Fund’s (ETF), which will uplift the investor base in the capital market by providing a new, low cost and well-diversified investment avenue for the investors.

For enhancing the ease of doing business and strengthening market participants, measures have been taken to reduce market costs for which the fee structure of the PSX, CDC and NCCPL have been rationalized. In order to enhance investor outreach, a framework has been stipulated for enabling online account opening. To increase the retail base, a simplified account opening process has been introduced for low-risk investors whereby the maximum investment limit of the Sahulat Account has been enhanced from Rs. 500,000 to Rs. 800,000. These steps resulted in an increase of 14,000 new investors witnessed at PSX.

Furthermore, SECP is in the process of implementing the new trading engine at PSX which will improve trading operations of the stock market, but also lead to a much stronger surveillance system of the front-end regulator by December 2021.

Yet another milestone toward improving financial inclusion, growth of the private sector, the launch of Secured Transactions Registry (STR). The STR will be used for the registration of security interests/charges created by entities other than companies on their movable assets such as receivables, intellectual property, inventory, agricultural products, petroleum or minerals, motor vehicles, etc.

Moreover, SECP’s regime for regulated financial institutions has been rated as largely compliant in FATF action plan (08 out 08 action items) and in the Post Observation Period Report of the Mutual Evaluation Report (54 out of 54 recommended actions), as a result of these reforms undertaken by SECP.

To promote documentation and corporate investment in the real estate sector, SECP has amended the Real Estate Investment Trust (REIT) regulations, triggering a number of REIT management license requests and REIT schemes applications. Moreover, to provide ease of doing business to startups, private companies and SMEs were permitted to raise capital by receiving immovable property, intangible assets and services, instead of only cash and were allowed to offer employee stock option plans to employees.

Moreover, SECP eServices is integrated with the Federal Board of Revenue (FBR) and the Employees Old-Age Benefits Institution (EOBI) at the federal level and with business registration portals of Punjab and Sindh at the provincial level, according to the SECP report.

Source: Pro Pakistani

Ambassador of the Republic of Kyrgyzstan to Pakistan, Ulanbek Totuiaev, has stated that the Karakoram Pass offers Kyrgyzstan and Pakistan an excellent opportunity of enhancing trade and economic cooperation.

The Ambassador was addressing a seminar on “Business, Education and Tourism Opportunities in Kyrgyzstan” organized by The Diplomatic Insight, Institute of Peace and Diplomatic Studies, Riphah Institute of Public Policy, Riphah International University, Islamabad.

Showing interest in joining the China-Pakistan Economic Coordinator (CPEC), he highlighted that the geostrategic position of Kyrgyzstan, being located at the crossroads between Central Asia and China and having the Karakoram Pass to Pakistan, opened up excellent opportunities for regional trade and economic cooperation and assisted the country in establishing relations with the regional states in all areas of mutual interest.

He said the Kyrgyz Republic and Pakistan enjoyed cordial, brotherly, and friendly relations. He added that Pakistan was among the first countries to recognize the independence of the Kyrgyz Republic. “Since the establishment of diplomatic relations, our countries enjoy excellent political relations and regularly exchange visits at the highest levels,” he underlined. He also highlighted the potential of tourism sectors of the two countries for mutual collaboration.

He mentioned that during the last 30 years, the two countries exchanged presidential visits twice; the Kyrgyz Prime Ministers also visited Pakistan two times; the Pakistani Prime Ministers went to Kyrgyzstan four times; and, Speakers of the Kyrgyz parliament visited Pakistan twice.

In this context, he said, it was also important to note that Foreign Minister, Ruslan Kazakbaev, would arrive in Islamabad on December 15 to participate in the Extraordinary Session of the OIC [Organization of Islamic Cooperation] Council of Foreign Ministers on December 16-17.

The Ambassador also highlighted that Kyrgyzstan was celebrating the 30th anniversary of its independence this year. He said that during the last 30 years, Kyrgyzstan was steadily and peacefully developed in terms of democracy and freedom. Currently, Kyrgyzstan is passing through an important period of political changes, he underscored.

Source: Pro Pakistani

Country Director World Bank (WB) Najy Benhassine called on Chairman Federal Board of Revenue (FBR) Dr. Muhammad Ashfaq Ahmed at FBR Headquarters on Tuesday to review the implementation of the WB’s flagship program, Pakistan Raises Revenue (PRR).

The Country Director WB appreciated the efforts made by Chairman FBR and his team for implementing the program in letter and spirit and also expressed satisfaction with its progress.

An FBR team, accompanying the Chairman, highlighted the areas where FBR and WB could achieve the agreed program deliverables with mutual efforts. The team underlined the avenues for making the program more effective in terms of achieving its objectives and ensuring a sustainable increase in revenues. The WB team assured FBR of continuing support in the implementation of the program.

Member (Reforms & Modernization) FBR Ambreen Iftikhar, Project Director (PRR) Nadeem Bashir and Chief (Reforms & Modernization) FBR Khalid Jameel also attended the meeting.

Source: Pro Pakistani

Advisor to the Prime Minister on Finance and Revenue, Shaukat Tarin, held a meeting with a delegation of Turkish Coca-Cola company, led by its Vice President Corporate Affairs, Sinan Cem Sahin, at Finance Division on Tuesday.

Welcoming the delegation, the Advisor stated that the government was committed to providing a conducive environment to the investors and businessmen and had taken steps for ensuring the ease of doing business.

The delegation delivered a presentation on the business operations of the Turkish Coco-Cola company in Pakistan. The delegation appreciated the efforts made by the government to promote investment and business activities in the country and shared a number of recommendations and proposals pertaining to duties and taxes as well as the proliferation of the beverage industry in Pakistan.

The Advisor assured the delegates of full government support in their business endeavors. He said the government would take all possible measures to facilitate the businesses as it believed in investment and export-led growth. He urged the company to enter into the export market as, he assured, the government would fully support their initiatives.

Sinan Cem Sahin appreciated the steps taken by the Pakistani government to facilitate businesses and investors and to encourage foreign investment in Pakistan.

Source: Pro Pakistani

Chairman National Accountability Bureau (NAB) retired Justice Javed Iqbal on Tuesday vowed to satisfy the members of National Assembly’s Public Accounts Committee (PAC) on NAB’s claim of recoveries of Rs. 821 billion and said that he will go home otherwise.

The anti-graft watchdog head appeared before the PAC to answer the questions of the parliamentary panel.

Presiding over the meeting, PAC chairman Rana Tanveer Hussain said that the committee sought details of NAB’s claim of recoveries of Rs. 821 billion but all it received in response was a two-lined reply.

Tanveer said that the NAB Chairman is respectable for the committee but he took too long to appear before the committee. He further said that Chairman NAB only highlights the performance of the anti-graft watchdog on media and added that he should also take the parliament and this committee into confidence.

Chairman NAB said that supremacy of the parliament cannot be denied but he was unable to appear before the committee due to some legitimate reasons.

On questions by the committee members regarding investigation of the corruption cases, retired justice Javed Iqbal requested to convene a special meeting of the committee. The request was approved by the committee chairman and the special meeting in this regard will be held on January 06.

Chairman NAB further vowed to satisfy the committee members on every issue and said that he will go home if he cannot satisfy the committee members.

The NAB Chairman told the committee that the bureau has distributed billions of rupees among 30,000 affected people. He added that in many corruption cases, the proceeds go to the relevant agencies or provincial governments.

He said that billions of rupees were taken from housing societies and distributed among the affected people. He further informed the committee that 1270 references of Rs. 1386 billion are currently pending before the bureau.

Chairman PAC praised NAB’s performance in recoveries made in cases related to housing societies. He also praised the bureau for returning the recovered money to the affectless of these cases.

While talking to reporters after the meeting, Chairman NAB also rubbished claims of “selective accountability” and said that comments of those who are facing corruption cases hold no value.

Source: Pro Pakistani

The American Business Council of Pakistan has expressed interest in collaborating with the Ministry of Finance and the Federal Board of Revenue (FBR) to fight the menace of illicit trade in consumer goods based on the government-backed data.

A four-member delegation from the American Business Council, led by Adnan Asad, the head of the Council’s government relations sub-committee, called on Advisor to the Prime Minister on Finance and Revenue, Shaukat Tarin, and Chairman FBR, Dr. Muhammad Ashfaq Ahmed, at FBR Headquarters on Tuesday.

Speaking on the occasion, Asad explained the scope and significance of the American Business Council and talked about its key areas of collaborative engagement with relevant stakeholders including the Government of Pakistan.

He expressed keen interest in collaborating with the Ministry of Finance and FBR to fight the menace of illicit trade in consumer goods based on government-backed data.

A proposed Memorandum of Understanding (MoU) among the three entities encompasses joint research that will be conducted as per the government’s needs and areas of focus so that it could lead to informed policy decisions.

In his remarks, Tarin reiterated the government’s priority on increasing the tax-to-GDP ratio to 20 percent in the next 4-5 years. He identified tobacco and beverages as the two key sectors most affected by illicit trade and emphasized the pressing need to conduct quality research on the possible revenue leakages in these important sectors.

Appreciating the delegation for offering support, the Advisor urged the Council’s team to closely work with FBR as well as the private sector to counter illicit trade.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) has taken cognizance of a number of complaints it received from various stakeholders including real estate agents and town developers from across the country after it notified property valuation rates for 40 cities on December 1, 2021. FBR has issued detailed instructions through an Office Memorandum on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.

FBR has decided to revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by stakeholders.

According to the instructions, all Chief Commissioners Inland Revenue (CCIRs) would constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021. Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. The Chief Commissioners will undertake a meaningful consultative process with the stakeholders and engage SBP’s approved valuers for the determination of values, which could be either more or less than the lately notified valuations.

It is pertinent to mention that FBR is empowered to determine the fair market value of immovable properties in terms of section 68(4) of the Income Tax Ordinance, 2001. Therefore, FBR vide SRO No.1534-1572(I)/2021 issued new valuation tables of properties across 40 major cities with a view to bringing them closer to the actual market prices.

However, certain objections from various stakeholders including real estate agents and housing societies have been received highlighting anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

As per the Office Memorandum, the VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification. All recommendations made by VRCs vis-à-vis revaluations shall be re-notified on January 15, 2022, which shall come into force on January 16, 2022. In the meantime, SRO No.1534-1572(I)/2021 is held in abeyance to allow registration of the in-process transactions.

Source: Pro Pakistani

The government has allocated a major chunk of the development funds for the Special Communications Organization (SCO), which is only operating in Azad Jammu Kashmir and Gilgit Baltistan, leaving little money for other important projects across the country, which will resultantly get delayed.

Besides getting a major share in the development budget, the SCO was awarded a free-of-cost spectrum in the recently held auction, for which private cellular mobile companies paid millions of dollars.

The government allocated Rs. 9.361 billion under the Public Sector Development Programme (PSDP) 2021-22 for the Information Technology and Telecommunication Division where major shares of Rs. 3.147 billion i.e. 34 percent was allocated for SCO for 2021-22.

According to the official documents, the government allocated Rs. 2.311 billion under PSDP 2021-22 for new schemes of the Information and Telecom Division and Rs. 7.050 billion for ongoing schemes. The government allocated Rs. 2.8 billion i.e. 40 percent of the Rs. 7.050 billion for SCO.

The Ministry of Planning and Development documents revealed that Rs. 4.133 billion have so far been authorized for release for the Telecom Division, however, the Ministry is silent on how much was authorized for which project.

Source: Pro Pakistani