Tag: agreement for Economic Transformation Initiatives

August 11, 2020: The Securities and Exchange Commission of Pakistan has issued a draft of amendments in the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 for public consultation.

In order to promote an enabling business environment and provide ease of doing business, the SECP, through these amendments, has proposed the introduction of a perpetual license for Non-banking finance companies by replacing the existing requirement of renewal of a license after every three years.

The SECP has also proposed to allow a single Non-Banking Finance Company to undertake different licensed activities. Moreover, the lending NBFCs will be required to obtain a Private Equity and Venture Capital (PE&VC) license while the Investment Advisors will be allowed to manage and launch exchange-traded funds and listed collective investment schemes.

Moreover, to encourage the formation of new NBFCs, a more rationalized procedure to seek the Commission’s permission to form an NBFC and obtain relevant NBFC license has been proposed.

Draft amendments also streamline the requirements regarding sponsors and majority shareholders of NBFCs. It proposes that only first-time promoters shall be considered as sponsors while the person replacing a sponsor and holding less than 10% shares will not be required to obtain approval of the SECP. The requirement of blocking of shares is proposed to be applicable only when a person holds 10% or more shareholding.

Necessary provisions have also been introduced regarding the specification of capital adequacy requirements or any other requirement in addition to or in lieu of the minimum equity requirements for any form of business.

Press Release

August 11, 2020 (MLN): The Chief Justice of Pakistan, Gulzar Ahmed, has asked for the name of K-Electric Company’s CEO to be placed on Exit Control List (ECL).

According to reports from various media outlets, the CJP, who was heading a bench hearing cases at the Supreme Court on Tuesday, showed disappointment over K-Electric’s handling of load shedding as well as the several electrocution deaths that had occurred during the recent rains in Karachi.

He also ordered to register First Information Reports (FIR) against the company for the deaths that occurred due to electrocution.

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August 11, 2020 (MLN): Gold prices tumbled today as the US dollar held onto gains against other currencies in the wake of upbeat US data jobs. In the international market, gold prices reached $1,988 an ounce, down by $47, receding from a record high of $2072.50 last week. The other precious metal, silver, was pegged at $28.28 per ounce.

On the domestic front, gold price fell more than 2% on Tuesday following global markets which retreated from record mark.  During the session, gold declined by Rs 2,900 to Rs 126,100 per tola in bullion markets. The precious yellow metal of 24-Karat had closed at Rs 129,000 per tola on the last day.

According to the Karachi Sarafa Association, the price of 10-gram gold also witnessed a decrease of Rs 2,487 to settle at Rs 108,110 against the previous close of Rs 110,597 per-gram.

On the other hand, the silver prices remained flat at Rs 1,670 per tola.  Similarly, 10-gram silver remained stable at Rs 1,431.75.

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August 11, 2020 (MLN): The Federal Board of Revenue (FBR) has intensified action against irregularity, corruption and inefficiency and suspended ten more officers.

The suspended Customs officers included seven Inspectors, two Superintendents and one Appraising Officer.

Since July, so far 36 officers and 19 officials have been suspended, whereas, three employees have been dismissed from service.

FBR is determined to rid the organization of corrupt and inefficient elements. Prompt action will be taken against the officers and officials found involved in irregularity and inefficiency. The image of the organization will be raised and the perception of the taxpayers and people about the organization will be improved so that the taxpayers’ can pay their due taxes in time without any hesitation and suspicion thinking that their paid taxed would be utilized on the progress of the country and welfare of the people.

An Integrity and Performance Management Unit (IPMU) has been established in FBR to address the complaints of the taxpayers against any employee. The complainant can send his complaint through telephone, e-mail and letter which will be scrutinized and investigated by senior officers. FBR will continue to put its efforts to raise revenue for the Government and will strive to achieve the objectives of the organization at all costs.

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August 11, 2020 (MLN): K-Electric Limited has announced its financial results for the half year ended December 31, 2019, as per which, it has earned profits of Rs. 2.79 billion (EPS: 0.10), i.e. almost 47% lower than the earnings recorded in same period of last year.

The topline income of the company improved by around 9%, whereas the cost of sales surged by 10.8%, resulting in the gross profit showing a mere change of 0.4%.

The increase in the company’s non-core income by 86%, along with an 86% decline in non-core expenses, served as a saving grace during the period.

However, increase in the finance costs by 2.05x as well as income tax expense by 1.84x negated the impact of aforementioned factors.

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