AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: FBR to revise mechanism of filing CGT returns
Revision to help revive capital markets and increase volumes at stock exchanges Tax Reforms Coordination Group of the Federal Bureau of Revenue (FBR) is set to consider next week revision of filing of Capital Gains Tax (CGT) return mechanism and collection of CGT mechanism from stock markets.
According to Standard Capital, the Securities and Exchange Commission of Pakistan (SECP) Chairman Muhammad Ali told journalists here on Thursday that the SECP will propose new mechanism for filing of CGT returns and collection of the capital gains tax (CGT) on stock exchanges to address concerns of the broker’s community and investors for revival of the capital market.
SECP is at present studying the difficulties faced by stock market investors in filing of CGT returns as well as existing CGT collection mechanism on stock exchanges. The commission will propose new mechanism for collection of the CGT on share’s trading to eliminate difficulties faced by the stock market players and this would help revival of the capital markets and increase volumes at the stock exchanges.
The SECP will also propose measures to effectively handle the issue of income tax return filing by the brokers and investors. The proposals of the SECP would ensure that the government would continue to get revenue from the CGT and at the same time stock market should be revived. Similarly, the SECP proposals would also serve purpose of the documentation of economy and address the genuine grievances of brokers and investors.
Pak‐China CSA to boost trade and investment
Pakistan and China have signed Currency Swap Agreement (CSA) for promoting bilateral trade and enhancing financing of direct investment between the two countries in their respective local currencies. State Bank of Pakistan (SBP) Governor Thursday stated this while explaining CSA with Peoples Bank of China (PBC).The CSA has been executed for a tenor of three years in respect of local currencies, Rs 140 billion and 10 billion yuan.
This is the second CSA that SBP has signed, the first one being with the Central Bank of Turkey on November 1, 2011. SBP governor said that the principal objective of these swaps is to promote the use of regional currencies for trade settlement purposes and specifically in the case of China because the agreement will enhance the role of the yuan in international trade and investment.
Infrastructure for Malakand, import of urea: Saudi Arabia signs two accords worth $172 million
Saudi Arabia will provide $172 million (645 million Riyals) for construction of infrastructure for Malakand region and import of urea fertilizer. This was announced during a signing ceremony of the two agreements worth $172 million held here on Thursday.
The agreements were signed by Secretary, Economic Affairs Division, and the Vice Chairman and Managing Director of Saudi Fund for Development, of Saudi Arabia to Pakistan, was also present at the occasion. said that the first agreement is a soft loan worth $72 million (Riyal 270 Million) allocated to improve roads in Malakand, North Waziristan, South Waziristan and Bajaur and to increase the agricultural productivity.
The amount will also be used to develop the educational standards in these areas while the health sector would also be promoted. Amortization of first loan is 20 years with 5 year grace period. The interest rate on the loan is 2 percent. Revealed that the second loan agreement worth $100 million (Riyal 275 million is for import of urea to be used during Rabi season that will benefit the agriculture sector by enhancing production and maximising farmer’s income.
Forex reserves improve
Pakistan’s foreign exchange reserves jumped to $16.77 billion in the week ending December 23, compared with $16.66 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) rose to $12.81 billion, compared with $12.76 billion the previous week, while those held by commercial banks rose to $3.96 billion, compared with $3.90 billion the previous week.
Foreign exchange reserves hit a record $18.31 billion in the week ending July 30, but have since eased due to debt repayments. Reserves were boosted in June by inflows of $411 million, including a $191.9 million loan from the World Bank, and a $196.8 million loan from the Asian Development Bank. However, they fell slightly to $923 million in November, compared with $926.89 million received in November last year.