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xResearch

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Apr 9, 2017
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*Budget Proposals 2020/2021*
*Revival of Sales Tax Zero rating suggested to ease Liquidity Problem*

Business community has recommended revival of zero rated sales tax for the export sector in the wake of difficulties faced following COVID-19.

Pakistan Business Council (PBC) has suggested sales tax proposals for budget 2020/2021 to ease the pressure on the industry.

It said that the proposal for bringing the five export sectors under the ambit of normal sales tax regime has clearly not worked.

Sales tax refund claims continue to accumulate with the FBR while export industries have faced massive liquidity in the past nine months on account of this move.

Exporters liquidity as well as net operating results / losses have taken a strong negative hit from the two-edged sword; once after withdrawal of zero rating regime resulting in piling of sales tax refunds and thereafter, due to cancellation of existing orders post the COVID-19 pandemic.

Restoration of Zero rating will allow some relief on the liquidity front for the major export sectors

It further said that at present, local sales to DTRE license holder has been provided the benefit of sales tax zero rating, however, local supplies to EOUs / manufacturing bond is chargeable to sales tax at 17 percent, which is an apparent anomaly between the DTRE, EOUs and Manufacturing bond rules.

In order to remove anomaly and considering the fact that material / goods being purchased by DTRE / EOU / Manufacturing Bond are used for the purposes of exports and are subject to strict scrutiny, it is proposed to allow zero rating on local purchase of goods by EOUs / Manufacturing Bond in line with the benefit given to DTRE.

Under the Sales Tax Act, Section 8 – B, a company is not allowed to adjust input tax in excess of 90 percent of the output tax for that period. Further, commercial importers paying 3 percent minimum Value Addition sales tax at import stage are totally exempt from the applicability of minimum tax under section 8B.

Source: PakRevenue
 

xResearch

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لاک ڈاؤن سے 10 لاکھ ادارے بند، 7 کروڑ افراد غربت کا شکار ہوجائیں گے، اسد عمرلاک ڈاؤن سے 10 لاکھ ادارے بند، 7 کروڑ افراد غربت کا شکار ہوجائیں گے، اسد عمر

اسلام آباد: وفاقی حکومت نے کہا ہے کہ پاکستان میں کورونا سے زیادہ لوگ ٹریفک حادثات میں ہلاک ہوجاتے ہیں اس کے باوجود ٹریفک کو چلنے کی اجازت ہوتی ہے۔
وفاقی وزیر منصوبہ بندی اسدعمر نے اسلام آباد میں میڈیا بریفنگ میں کہا کہ کورونا وبا کے باعث عائد کردہ موجودہ پابندیوں کا 9مئی تک اطلاق رہے گا، 9 مئی سے پہلے وزیراعظم عمران خان کی زیر صدارت اجلاس ہوگا جس میں اہم فیصلے کیے جائیں گے، قومی رابطہ کمیٹی 9 مئی کے بعد کی حکمت عملی طے کرےگی۔
اسد عمر نے کہا گزشتہ چند دنوں میں کورونا وائرس سے اموات میں اضافہ ہوا ہے جو اچھی خبر نہیں ہے، ہلاکتوں کی 3 سرخ لکیریں عبور ہوچکی ہیں اور پچھلے 6 روز میں روزانہ 24 اموات ہورہی ہیں لیکن آبادی کے تناسب کے حساب سے پاکستان میں یہ شرح کم ہے، اللہ کا کرم ہے پاکستان میں بیماری اتنی مہلک ثابت نہیں ہوئی جتنی یورپ میں ہوئی، پاکستان کے مقابلے میں امریکا میں 58 گنا اور برطانیہ میں 124 گنا زیادہ ہلاکتیں ہوئیں، بیماری کے پہلے 46 روز میں ہر 10 لاکھ شہریوں میں سے اسپین میں سب سے زیادہ 414، اٹلی 305، فرانس 256، برطانیہ 248 اور امریکا میں 116 ہلاکتیں ہوئیں جبکہ پاکستان میں صرف 2 افراد جاں بحق ہوئے۔
وفاقی وزیر کا کہنا تھا کہ پاکستان میں کورونا سے اوسطا روزانہ 24 لوگ اور ایک ماہ میں 720 افراد ہلاک ہوسکتے ہیں، کورونا سے زیادہ لوگ ٹریفک حادثات میں ہلاک ہوتے ہیں لیکن اس کے باوجود ہم ٹریفک کو اجازت دیتے ہیں، ملک میں ایک ماہ میں اوسطا 4 ہزار 800 سے زیادہ لوگ ٹریفک حادثات میں ہلاک ہوجاتے ہیں، لیکن گاڑی سڑک پر چلتی ہے، کیونکہ ٹریفک پر پابندی زیادہ نقصان دہ ہے۔
اسد عمر نے کہا کہ اگر یہ ذہن میں بٹھالیں کہ کورونا سے اموات کو صفر کرنا ہے تو اس کے لیے ایسے اقدامات کرنے پڑیں گے جو انسانوں کے لیے اتنے زیادہ مہلک ہوں گے جو کوئی انسان برداشت نہیں کرسکتا، کورونا سے اموات کو صفر کرنا ناممکن ہے، دیگر ممالک میں بھی کورونا کو ختم کرنے کی نہیں بلکہ پھیلاؤ کو روکنے کی کوشش کی جارہی ہے۔
اسد عمر نے کہا کہ یہ بیماری دنیا میں جتنی مہلک ہے اتنی ہمارے ہاں نہیں، لیکن معاشی نقصان زیادہ ہے، لاک ڈاؤن اور پابندیوں کے باعث معاشی طور پر حکومت کو آمدنی میں 119 ارب روپے کا نقصان ہوا، روزگار میں بڑے پیمانے پر کمی آئی ہے، 7 کروڑ غربت کی لکیر سے نیچے چلے جائیں گے، ایک کروڑ 80لاکھ افراد بے روزگار ہوسکتے ہیں، 10 لاکھ چھوٹے ادارے ہمیشہ کے لیے بند ہوسکتے ہیں، ہر 4میں سےایک پاکستانی کے گھر میں خوراک کی کمی ہوئی۔
اسد عمر نے مزید کہا کہ کورونا کو مکمل ختم کرنا ممکن نہیں، اس کا پھیلاؤ کم کیا جاسکتا ہے، یورپ سمیت دنیا کے بہت سے ممالک آہستہ آہستہ روزگار کے پہیے کو چلانے کے لیے بندشیں کم کررہے ہیں، ہمیشہ کے لیے ملک بند کرکے بیٹھ نہیں سکتے، ہمارا ہدف صحت کے نظام کو مضبوط کرنا ہے، ہمارا صحت کا نظام پچھلے 2 ماہ کے مقابلے میں اب بہتر ہے، فوری طور پر ملک کو اس لیے نہیں کھول سکتے کہ کہیں ہمارے صحت کے نظام پر خدانخواستہ اتنا بوجھ آئے کہ وہ مفلوج نہ ہوجائے، آہستہ آہستہ بندشیں کم کریں گے، روزگار کے مواقع بڑھائیں گے، آئندہ روز میں وفاقی حکومت تمام صوبوں کو شامل کرکے مزید فیصلے کرے گی۔


https://www.express.pk/story/2038106/1/
 
Apr 11, 2017
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Outlook & Expected Levels for the Coming Session (May 07, 2020) - Index Has Formed Firm Base at 33,600 – 33,200 Range | 34,250 – 34,600 Short Term Upside. The Thin Range Triggered Exhaustion for Index Bulls. Once again, the index failed in surpassing the short term range top at 34,250 and faced profit taking that enforced a closing below 33,800. During the session, index started off the session with gains and reached to as high as 34,120. However the gains eroded within the first 30 minutes of the session and index fell to as low as 33,675, before ending the session at 33,728 with a net loss of 265 Points. Volumes from KSE-100 Index Stocks clocked at 150.58 Million, which is down by 23.6% from previous session and suggests that buyers were not interested in executing their orders.
 
Apr 11, 2017
131
1
18
For The Coming Session…. The intra-day range of KSE-100 has started widening up again, which indicates that high volatility is likely to be observed. However, since the index has already tested intra-day range lows, the chances for a further dip are less. Support for the day is seen at 33,650 – 33,500 area, major indicators suggest that 33,200 – 33,160 is getting so strong that it can serve as support for the week. On the Upside… The index needs to surpass 34,250 with aggressive bullish candle and higher volumes, on hourly closing terms. This will help it in achieving the next breakout point at 34,530.
 

xResearch

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Apr 9, 2017
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Economy News

IMF projects govt debt at 78.3pc of GDP

Economy | Negative

The International Monetary Fund (IMF) has projected total government net debt at 78.3 percent of the GDP for 2020 against 75.2 percent in 2019 that is an increase of 3.1 percent of the GDP. According to the IMF report, Fiscal Monitor’s statistical appendix, government revenue is projected at 14.3 percent of the GDP in 2020, and 15.8 percent in 2021, against 12.8 percent during the same period of 2019. (BR)


US pledges $15m to help Pakistan fight COVID-19, says envoy

Economy | Positive

United States has committed around $15 million to help Pakistan contain the coronavirus pandemic weeks after designating it as a priority country for the COVID-19 assistance. (PT)


EU to support Pakistan’s anti-corona fight with 153m euros

Economy | Positive

Ambassador of the European Union Delegation to Pakistan Androulla Kaminara called on Prime Minister Imran Khan on Thursday and said the EU had allocated 153 million euros to support Pakistan in its efforts to contain COVID-19. (PT) | Click for more info.



PM wants to raise $15bn thru sale of unutilized govt land

Economy | Positive

Prime Minister Imran Khan has reportedly expressed his intention to raise $ 15 billion from the sale of 100,000 plots of land to overseas Pakistanis across Pakistan at a price of $ 150,000 each. (BR) | Click for more info.



Pakistan's debt servicing soars to Rs1.9tr

Economy | Neutral

The public debt servicing cost jumped to Rs1.9 trillion in the first nine months of the current fiscal year, which was equal to 79% of net federal receipts, highlighting adverse implications of flawed taxation and monetary policies, showed the latest data of the Ministry of Finance. (ET)


SBP reserves rise

Economy | Positive

Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $259 million to $12.329 billion on April 30. The SBP on Thursday reported that the country’s total foreign exchange reserves rose to $18.755bn. Net foreign reserves held by commercial banks were $6.425bn. (Dawn)


Fall persists

Economy | Negative

Pakistan rupee went down on Thursday in interbank market against USD whereas it showed kind of a mixed trend in open market. INTER-BANK MARKET RATES: Pakistan Rupee went down by 40 paisas for buying and by 20 paisas for selling against USD in interbank market closing at 160.20 and 160.40 respectively. (BR)


Oil & Gas

OGDCL decides to suspend activities at Rajian Oil Field Chakwal

OGDC | Negative

The Oil and Gas Development Company Limited (OGDCL) has decided to suspended its activities at its Rajian Oil Field Chakwal after the situation occurred with District Administration Chakwal on the matter of employees medical checkup who tested positive for Covid-19. (Pakobserver)


Prices of RLNG slashed for May

Gas | Nuetral

The Oil and Gas Regulatory Authority (Ogra) on Thursday cut the prices of re-gasified liquefied natural gas (RLNG) to $1.84 per mmbut for SNGPl May and $1.806 per mmbtu for end consumers of the Sui Southern Gas Company (SSGC) over previous month. (BR)


Autos

Auto sector seeks State Bank help

Autos | Neutral

Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has asked the central bank to help the auto vending industry survive the pandemic crisis through various facilitations, including short- and long-term financing, a statement said on Thursday. (The News)


Dealers, vendors; IMC announces interest-free support package

Autos | Neutral

Indus Motor Company (IMC) has announced interest-free support package for dealers and vendors. According to details, the nationwide lock-down has severely impacted the auto sector of Pakistan especially the vendors and dealers. With stagnated revenue generation activities, they are still bearing overhead costs and expenses including salaries of staff and debt servicing. (BR)


Miscellaneous

ST zero-rating facility for dairy sector; Hafeez agrees to look into matter of restoration

Food & Allied | Positive

Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has agreed to look into the policy matter of restoration of sales tax zero-rating facility for the dairy sector in the upcoming budget (2020-2021). (BR |


PM orders inquiry into import of drugs from India despite ban

Pharmaceutical | Neutral

Prime Minister Imran Khan has tasked Adviser on Interior Affairs Barrister Shahzad Akbar to probe into the misuse of permission regarding the import of life-saving drugs from India. (PT)

Tobacco sector; Huge revenue loss due to illicit trade in 2019-20

PAKT | Negative

Pakistan has suffered huge revenue loss to the tune of billions during 2019-20 on account of growing illicit trade in tobacco sector, which is now touching almost 40 percent of total cigarettes consumption in the country. (BR)

Political News

Lockdown eases from tomorrow

The National Coordination Committee (NCC) Thursday decided to substantially ease the lockdown from May 9 after consultations with the provinces and consensus; however, the provinces did not agree on opening the public transport. (The News)

International News

Asia Stocks Edge Higher; Treasuries Hold Advance: Markets Wrap

Asian equities opened higher on Friday and U.S. futures climbed as investors continue to weigh moves to reopen economies against data illustrating the enormous damage wreaked by the coronavirus. (Bloomberg)


Oil Set for Second Weekly Gain With Market Starting to Rebalance

Oil headed for its first back-to-back weekly gain since February as output cuts from the biggest producers and a nascent recovery in demand began to rebalance a market awash with crude. (Bloomberg)


Thanks & Regards
 

xResearch

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Apr 9, 2017
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*Today’s Major News*

*International News*

1. Asia stocks little changed; China’s services sector in April slumps
https://www.cnbc.com/2020/05/07/asi...-pmi-coronavirus-oil-currencies-in-focus.html
Neutral

*Political Noise*

2. 18th amend can be revisited with no compromise on autonomy: Saad
https://www.dawn.com/news/1555182/18th-amend-can-be-revisited-with-no-compromise-on-autonomy-saad
Neutral

*Economy Watch*

3. 3.8pc budget deficit witnessed in 9 months
https://epaper.brecorder.com/2020/05/07/1-page/836139-news.html
Neutral

4. Govt moves to take over Rs800bn power sector circular debt
https://www.dawn.com/news/1555209/govt-moves-to-take-over-rs800bn-power-sector-circular-debt
Neutral

5. Gilead in talks with Pak drug makers to produce remdesivir
https://www.thenews.com.pk/print/655266-gilead-in-talks-with-pak-drug-makers-to-produce-remdesivir
Neutral

6. Easing lockdown: Opening of shops, domestic flights recommended
https://www.thenews.com.pk/print/65...opening-of-shops-domestic-flights-recommended
Neutral

7. Cut-off yield on 12-month papers edges up
https://www.thenews.com.pk/print/655008-cut-off-yield-on-12-month-papers-edges-up
Neutral

8. SECP proposes amendments
https://www.thenews.com.pk/print/655017-secp-proposes-amendments
Neutral

*Sector-related news flows*

9. Cement despatches down 23.65 percent on demand slump
https://www.thenews.com.pk/print/655019-cement-despatches-down-23-65-percent-on-demand-slump
Neutral for Cements

10. Govt earmarks Rs30bln for credit risk sharing
https://www.thenews.com.pk/print/655005-govt-earmarks-rs30bln-for-credit-risk-sharing
Neutral for Banks

*International Crude Oil prices*

WTI Change
US$23.97 -0.02

Brent Change
US$29.74 +0.02

Arab Light Change
US$21.36 +4.22
 

xResearch

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Apr 9, 2017
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*Thursday, May 07, 2020*

*Pakistan Headlines – AKD Securities Ltd.*

*Rs391bn raised through T-bills*
https://www.dawn.com/news/1555205/rs391bn-raised-through-t-bills

*Govt moves to take over Rs800bn power sector circular debt*
https://www.dawn.com/news/1555209/govt-moves-to-take-over-rs800bn-power-sector-circular-debt

*Govt promises to bear 40pc first loss to banks on SME loans*
https://www.dawn.com/news/1555163/govt-promises-to-bear-40pc-first-loss-to-banks-on-sme-loans

*Decision on lockdown curbs today*
https://www.brecorder.com/2020/05/07/595087/decision-on-lockdown-curbs-today/

*Sindh urges centre to allow limited business, routine activities in case of easing lockdown*
https://www.dawn.com/news/1555120/s...routine-activities-in-case-of-easing-lockdown

*Gilead in talks with Pak drug makers to produce remdesivir*
https://www.thenews.com.pk/print/655266-gilead-in-talks-with-pak-drug-makers-to-produce-remdesivir

*Fiscal deficit slides lower to 3.8pc*
https://www.dawn.com/news/1555208/fiscal-deficit-slides-lower-to-38pc

*Cement sales plunge as construction comes to a halt*
https://www.dawn.com/news/1555206/cement-sales-plunge-as-construction-comes-to-a-halt

*FBR extends tax incentive for E&P sector*
https://www.thenews.com.pk/print/655012-fbr-extends-tax-incentive-for-e-p-sector

*Amendments to restrict forex outflow from insurance sector*
https://www.dawn.com/news/1555207/amendments-to-restrict-forex-outflow-from-insurance-sector

* ‘Retailers must list sales tax on price tags separately’*
https://www.dawn.com/news/1555203/retailers-must-list-sales-tax-on-price-tags-separately

*Tax liability to be determined on whole year’s income: SC*
https://www.brecorder.com/2020/05/07/595096/tax-liability-to-be-determined-on-whole-years-income-sc/

*PBC baffled at IMF’s ambitious revenue target for FY2021*
https://www.thenews.com.pk/print/655010-pbc-baffled-at-imf-s-ambitious-revenue-target-for-fy2021

*Board Meetings:* PAKT (1Q) & DNCC (1Q).