Tag: sales tax
August 13, 2020: A sharp spike in food prices may snap the Pakistan central bank’s longest policy easing streak in nearly two decades, say some economists.
Headline inflation accelerated to 9.3% in July -- above the State Bank of Pakistan’s 7%-9% range forecast for this year -- fuelled by a 17.8% increase in food prices. The South Asian nation resorted to importing of staples such as wheat and sugar after their costs increased.
Pakistan Plans Biggest Wheat Import in a Decade to Fill Shortage
“It’s a combination of supply shortage and hoarding by the middlemen that has resulted in this disruption,” said Suleman Maniya, head of the advisory at Karachi-based Vector Securities Pvt. “Pakistan is facing serious issues in its food security regime that includes availability at affordable prices. If the government can’t keep this under control, they will see protests.”
It isn’t just wheat and sugar, but the cost of vegetables such as tomato has also surged. With food and beverage items making up a third of the consumer price basket, the price increase has prompted some economists to revise their interest-rate forecast.
Pearl Securities Ltd., which as of last month had penciled in one more rate cut, doesn’t expect any further easing for now. The central bank cut interest rates by a cumulative 625 basis points in five back-to-back moves this year -- the most easing in a row since at least 2003 -- as inflation dropped from a high of 14.6% in January to 8.2% in May.
Pakistan Unexpectedly Cuts Key Rate to Boost Economic Growth
But inflation quickened as a result of a rally in food prices due to reasons including locust attacks on crops, and smuggling and hoarding amid a nationwide lockdown to contain the coronavirus pandemic. “Inflation is expected to stay a bit high,” said Yawar Uz Zaman, head of research at Pearl, which this month revised its average inflation estimate to 7% from 5.5%-6% this month.
August 13, 2020 (MLN): Abdul Razak Dawood has informed five export sectors that the issue of energy price case will be taken up before the ECC meeting next week.
The aforesaid announcement was made by Adviser to PM for Commerce and Investment on its official twitter handle.
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August 13, 2020 (MLN): Askari Bank Limited has unveiled its financial results for the 1HCY20 ended June 30, 2020. As per results, the bank has posted its net profits of Rs 4.97 billion (EPS: Rs 3.94), showing an increase of 58.75 % against net profits of Rs 3.13 billion (EPS: Rs 2.48) of the same period last year.
The increase in profitability of the bank was mainly attributable to increased Net interest income (NII).
The bank’s net interest income went up by 33% YoY to stand at Rs 14.41 billion in 1HCY20 on a back of repricing of deposits to lower rate with policy rate decline, as per the research of Darson.
During the period under review, increased gains on securities by 37 times YoY pushed up the bank’s non-funded income (NFI) by 28.47% YoY.
The bank’s operating expenses increased by 13.63% YoY to Rs 9.95 billion, along with a 54% increase in tax expense restricted the bank’s profits.
Financial Results for the half-year ended June 30, 2020 ('000 Rupees)
Net mark-up/interest income
Fee and commission income
Foreign exchange income
Income / (loss) from derivatives
Gain on securities
Total non-mark-up/interest income
Workers' Welfare Fund
Total non-mark-up/interest expenses
Profit before provisions
Provisions and write offs - net
Extraordinary items/unusual items
Profit before taxation
Profit after taxation - continued operations
Profit after taxation - discontinued operations
Total profit after taxation
Basic and diluted earnings per share
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August 13, 2020: Minister for Power Omar Ayub has said the government is working to generate indigenous, affordable electricity to reduce dependency on foreign sources by 2030.
Addressing a media briefing along with Minister for Science and Technology Fawad Chaudhary, he said under the new Renewable Energy Policy, the government has planned to increase the share of renewable energy in power generation to 30 percent by 2030.
Speaking on the occasion, Minister for Science and Technology Fawad Chaudhary said the new Renewable Energy Policy will help reduce electricity prices in the country.
Special Assistant to the Prime Minister on Petroleum Division Nadeem Babar said a committee consisting of provincial members will decide the renewable energy resources of producing electricity in each province.