Legislative and Corporate Bulletin
Oct 2023 | Vol: 1
Newsletter
B 1. Securities and Exchange Commission of Pakistan (SECP)
B 2. State Bank of Pakistan (SBP)
B 3. FBR
B 4. NEPRA
B 5. OGRA
i. SECP – AML – CFT – CPF Regulations 2020. Amended up to September 2020
In exercise of the powers conferred by section 6A of the Anti-Money Laundering Act, 2010 (VII of 2010), the Securities and Exchange Commission of Pakistan, is pleased to make the following regulations conferred by sub-section (1) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984), read with clause (b) of section 43 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997), the Securities and Exchange Commission of Pakistan, with the approval of the Federal Government, is pleased to direct that following amendments shall be made in the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003, the same having been previously published vide Notification S.R.O. 1604(I)/2022 dated August 22, 2022. In the aforesaid Rules, minor changes were made in rule 2 sub-rule (1) and rule 5 sub-rule (6). In form II (iii) at the end the following shall be inserted, namely: – “We the above-named deponent, do hereby solemnly affirm and declare that the contents of the aforementioned information are true and correct to the best of our knowledge and belief and nothing has been concealed therein. We also undertake to keep this information up to date and shall convey any change or modification therein within fourteen days of such change or modification. Signatures of the directors”. In Schedule I, in the last row under the heading “Pension Fund Scheme Business”, in column 2, after clause (i), the following shall be inserted, namely: – “(ia) A fund management NBFC with a valid investment advisory licence and minimum 3 years’ experience of managing discretionary or nondiscretionary portfolios for institutional clients”.
ii. The Unlisted Companies (Buy-Back of Shares) Regulations, 2023
In exercise of powers conferred under sub-section (1) of sections 512 read with sections 88 and 458A of the Companies Act 2017 (XIX of 2017), the Securities and Exchange Commission of Pakistan is pleased to notify the following Unlisted Companies (Buy-Back of Shares) Regulations, 2023, the same having been previously published in the official Gazette vide Notification No. S.R.O. 2066(I)/2022 dated November 25, 2022. These regulations shall be called the Unlisted Companies (Buy-Back of Shares) Regulations, 2023. The regulations include eligibility requirements for purchase of shares, procedure for purchase of shares, Cancellation of the Purchased Shares and Procedure, Obligations of the Purchasing Company and others. These regulations can be read in detail via the given link.
iii. Draft of Amendments of the Auditors (Reporting Obligations) Regulations, 2018
The following draft amendments to the Auditors (Reporting Obligations) Regulations, 2018, proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of the powers conferred under section 512 of the Companies Act, 2017 (XIX of 2017), are hereby published for information of all the persons likely to be effected thereby and notice is hereby given that suggestions or objections, if any, received within a period of fourteen days from the date of its publication in the official Gazette, shall be taken into consideration by the Securities and Exchange Commission of Pakistan. In regulation 2, in sub-regulation (1), the following shall be added ‘’(viii) “Unique Document Identification Number” or “UDIN” means UDIN generated from the designated portal of the Institute of Chartered Accountants of Pakistan or the Institute of Cost and Management Accountants of Pakistan.” after regulation 6, following new regulation 6A shall be inserted, namely: – ‘’6A. UDIN. – It shall be mandatory for auditors to mention UDIN on all reports issued under these regulations: Provided that this requirement shall be applicable to the practicing members of the Institute of Cost and Management Accountants of Pakistan from the date notified by the Commission.’’
iv. The Companies (Incorporation) Regulations, 2017 – updated May, 03, 2023
In exercise of the powers conferred under section 40B of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) read with clause (g) of regulation 4 of the Credit Rating Companies Regulations, 2016, the Securities and Exchange Commission of Pakistan is pleased to notify the China Chengxin (Asia Pacific) Credit Rating Company Limited as internationally recognized credit rating institution for the purpose of entering into joint venture or technical collaboration arrangement with a credit rating company in Pakistan.
v. Press Release – SECP’s publishes latest statistics of insurance industry
The Securities and Exchange Commission of Pakistan (SECP) has published the latest statistics, providing a comprehensive assessment of the insurance industry’s financial performance. These much-needed statistics, offering insights into 2022 data, are critical for the diverse stakeholders to make informed decisions and enable analysis. This is also significant in the long run for establishing industry-wide standard performance norms and functioning as a tool for effective performance measurement. The report shows that the life insurance sector accounts for 68% of gross premiums written in the industry, while the non-life sector accounts for 32%. In 2022, the industry’s total assets increased by 14.5%, reaching PKR 2,421 billion from PKR 2,114 billion. The gross premium increased by 28% from PKR 432 billion in 2021 to PKR 553 billion. Claims paid increased by 26%, with PKR 276 billion paid by life insurance companies and PKR 69 billion by non-life insurance companies, compared to PKR 218 billion in 2021.
vi. Press Release – SECP to host International Insure-Impact Conference 2023
The Securities and Exchange Commission of Pakistan (SECP) is set to host the International InsureImpact Conference 2023 (IIC 2023), a two-day event in Karachi in December, 2023, with the theme “Journey to an Insured Pakistan”. Through the IIC 2023, SECP aims to boost the insurance sector by promoting inclusivity, innovation, and resilience through discussions and presentations, highlighting key issues and potential prospects. The conference will focus on raising insurance product awareness, utilizing technology for innovation, building resilience through crop and disaster risk insurance, establishing reinsurance pools, and strengthening governance and risk management. At IIC 2023, SECP will unveil a 5-year strategic plan for the insurance sector. Several research reports to enhance the country’s insurance ecosystem will also be presented at the conference. The event will feature international and local speakers discussing various insurance industry issues and opportunities in Pakistan. Leading industry experts, practitioners, and other stakeholders from within the country will contribute their expertise on various topics. IIC 2023 is a continuation of SECP’s efforts to collaborate with industry experts and stakeholders to create a dynamic and resilient insurance landscape in Pakistan. The conference is expected to mark a significant milestone in fostering industry growth, promoting innovation, and safeguarding the nation’s future.
vii. Press Release – PTA - SECP sign MoU to promote mutual cooperation
The Pakistan Telecommunication Authority (PTA) and the Securities and Exchange Commission of Pakistan (SECP) signed a Memorandum of Understanding (MoU) to formalize mechanism for information sharing and cooperation between both regulators. The MoU was signed by Director General PTA, Mr. Muddasir Naveed and Executive Director SECP, Ms. Khalida Habib, at a ceremony held at SECP Head Office in Islamabad. Chairman PTA, Maj Gen (R) Hafeez Ur Rehman; Chairman SECP, Mr. Akif Saeed; Commissioner SECP, Mr. Mujtaba Ahmed Lodhi; Member Compliance and Enforcement PTA, Dr. Khawar Siddique Khokhar and senior officers from both organizations were in attendance. The objective of the MoU is to establish a framework for bilateral cooperation between the PTA and SECP in various areas of mutual interest, encompassing a wide spectrum of initiatives and objectives, including: realization of a digital society to contribute towards Government of Pakistan’s “Vision 2025”; e-Governance initiatives; exchange of information, UN Sustainable Development Goals (SDGs) – ICTs as contributor/enabler to achieve respective targets; policy and regulatory input on areas of common interest, business processes efficiency, cybersecurity, data management and capacity building etc. Chairman PTA, Maj Gen (R) Hafeez Ur Rehman, speaking at the occasion, emphasized the potential for both organizations to harness their collective strengths in order to elevate Pakistan’s digital landscape. He highlighted PTA’s successful crosssector collaborations with various government bodies and private entities. Chairman SECP Mr. Akif Saeed, applauded PTA’s proactive efforts in creating a safe and secure digital ecosystem in the country, and thanked PTA for its support in raising awareness about illegal loan apps. He also highlighted the significance of collective efforts by all regulatory bodies and the importance of creating awareness; as critical elements in strengthening overall cyber security measures.
viii. Press Release – SECP registers 2,477 new companies in September
The Securities and Exchange Commission of Pakistan (SECP) registered 2,477 new companies in September 2023, bringing the total number of companies in Pakistan to 202,892. The total capitalization (paid up capital) of newly incorporated companies stood at Rs. 1.59 billion. Private limited companies accounted for 58 percent of new incorporations, followed by singlemembercompanies at 39 percent and 3 percent were registered as public unlisted companies, notfor-profit associations, trade organizations and limited liability partnerships (LLP). One foreign company has also established a place of business in Pakistan, while 92 applicants incorporated companies from overseas using eService. Almost 99.7 percent of companies were registered online. In addition, as a result of integration of SECP with FBR and various provincial departments, 2,389 companies were registered with FBR for registration of NTN, 62 companies with EOBI, 34 companies with PESSI/SESSI and 40 companies with excise and taxation department. Information technology sector took the lead with incorporation with 347 companies, trading with 308, services with 282, real estate development & construction with 278, tourism with 123, education with 106, food & beverages with 100, ecommerce with 75, mining & quarrying with 70, textile with 60, corporate agricultural farming with 59, marketing & advertisement, and pharmaceutical with 49 each, engineering, and transport with 48 each, power generation with 47, healthcare, and cosmetics & toiletries with 37 each, chemical with 35, auto & allied 27, lodging with 24, broadcasting & telecasting, and communications with 22 each, cables & electrical goods with 21, paper & board with 17, and 186 companies were registered in other sectors.
ix. Press Release – SECP raising awareness about the Islamic capital market
The Securities and Exchange Commission of Pakistan (SECP), in partnership with the Pakistan Stock Exchange (PSX) and the IBA Centre for Excellence in Islamic Finance (IBA-CEIF), held sessions to raise awareness about the Islamic capital market. Speaking to the senior management of PSX, SECP Commissioner Mujtaba Ahmad Lodhi stated that the convergence of conventional equities into Islamic can create enormous opportunities for Pakistan’s stock market. He emphasized joint efforts to create a robust, transparent, and innovative ecosystem that attracts both domestic and international investors. PSX CEO Farrukh H. Khan praised SECP and IBA-CEIF for their collaborative efforts and pledged to expand Islamic finance in stock market through concerted efforts. Chairman of the Shariah Advisory Committee of SECP Dr. Mufti Irshad Ahmad Aijaz, delivered a lecture on foundational concepts of Islamic finance and key Shariah considerations for the capital market institutions. The SECP’s Head of Islamic Finance Tariq Naseem made a detailed presentation on key aspects of the Federal Shariat Court judgement on elimination of Riba and obligations of capital market institutions. He also briefed the participants about SECP’s policy framework and future roadmap for Islamic finance in regulated sectors. Director Ahmed Ali Siddiqui of IBA CEIF emphasized the need for the development of innovative capital market products in response to global financial changes.
x. Press Release – SECPinitiates consultation on voluntary ESG Disclosure Guidelines
The Securities and Exchange Commission of Pakistan (SECP) has issued draft guidelines on ESG disclosures for consultation as part of its Environmental, Social and Governance (ESG) Regulatory Roadmap issued in June 2022. The guidelines have been prepared to encourage listed companies to enhance their ESG disclosures in a fair and transparent manner on voluntary basis. Since the guidelines are non-mandatory in nature, non-listed companies may also seek guidance from the draft guidelines for embarking on their journey towards adoption of ESG standards. The draft guidelines cover a wide range of topics under the E, S and G pillars including the recommended metrics related to climate change, Green House Gases emissions, energy usage, gender diversity, executive compensation, non-discrimination, health and safety, board diversity, incentivized pay and internal controls etc. Under the draft guidelines, the companies have the liberty to disclose their ESG performance by issuing a separate sustainability report, integrating it with the company’s annual report or publishing it online on their website. The SECP is committed to promoting sustainable and responsible business practices in Pakistan and issuance of the draft ESG guidelines is a significant step forward in this direction. By improving ESG disclosures, the SECP aims to improve transparency in company’s operations, promote sustainable business practices to reduce impact on environment and help investors make more informed investment decisions.
xi. Notification of China Chengxin (Asia Pacific) Credit Rating Company Limited as internationally recognized credit rating institution
In the exercise of the powers conferred under section 40B of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) read with clause (g) of regulation 4 of the Credit Rating Companies Regulations, 2016, the Securities and Exchange Commission of Pakistan is pleased to notify the China Chengxin (Asia Pacific) Credit Rating Company Limited as internationally recognized credit rating institution for the purpose of entering into joint venture or technical collaboration arrangement with a credit rating company in Pakistan.
i. Circular –Export of Software, Information Technology (IT) & IT Enabled Services (ITeS) and Freelance Services
Attention of Authorized Dealers (ADs) is invited to Para 12, Para 36 and Para 40 of Chapter 12 (Exports) of the Foreign Exchange (FE) Manual, which provides general instructions relating to ‘Export of Software’, ‘Export of Services’ and ‘Utilization of funds held in Exporters’ Special Foreign Currency Account (ESFCA)’. In order to encourage the exporters of Software, Information Technology (IT) and IT enabled Services (ITES) and freelance services to boost their export earnings and bring additional foreign exchange into the country, the retention limit in ESFCAs has been increased from 35% to 50% of the export proceeds and the utilization of the retained funds has been further liberalized. Going forward, such exporters can freely make payments abroad of current account nature from these accounts, without prior approval of SBP.
ii. Press Release–Bank deposits are perfectly safe, SBP clarifies
Certain sections of the media, on the basis of a statement given by Deputy Governor of State Bank of Pakistan(SBP), Dr. Inayat Hussain during the meeting of Senate Standing Committee on Finance and Revenue, are implying as if bank deposits above Rs500,000 in the banking system in Pakistan are unsafe. It is categorically stated that the deposits are safe owing to a sound banking system in Pakistan under a robust regulatory and supervisory framework of SBP. The banking system in Pakistan is adequately capitalized, highly liquid and profitable with a low level of net non-performing loans, i.e. bad loans. The sector posted a strong profitability of Rs284 billion in first half of CY23, which is almost 125 percent higher than the first half of CY22. The higher earnings, in turn, also strengthened the capital of banks and the Capital Adequacy Ratio (CAR) of the banking sector increased to 17.8 percent by end June 2023 compared to 16.1 percent as of end June 2022, substantially higher than SBP’s minimum regulatory requirement of 11.5 percent and international standard of 10.5 percent. With improvement in solvency buffers, the ability of the banking sector to withstand a set of severe shocks has further improved.
iii. Press Release – Workers Remittances in September 2023
Workers’ remittances recorded an inflow of US$2.2 billion during Sep 23. In terms of growth, during Sep 2023, remittances increased by 5.3 percent on m/m. Workers’ remittances inflow of US$ 6.3 billion has been recorded during Q1FY24. Remittances inflows during Sep 2023 were mainly sourced from Saudi Arabia ($538.2 million), United Arab Emirates ($400 million), United Kingdom ($311.1 million) and United States of America ($263.4 million).
iv. Press Release – State Bank of Pakistan Suspends the Authorization of Exchange Companies of ‘B’ Category
State Bank of Pakistan has suspended, with immediate effect, the authorization of the following Exchange Companies –B Category till further orders due to serious violations of the State Bank’s regulations and instructions: M/s International Exchange Company –B (Pvt) Limited M/s World Wide Exchange Company – B (Pvt) Limited M/s World Exchange Company –B (Pvt) Limited iv. M/s Universal Exchange Company –B (Pvt) Limited M/s United Exchange Company –B (Pvt) Limited All the aforementioned Exchange Companies –B Category, their head offices and all branches have been debarred from undertaking any kind of business activity during the suspension period.
v. Press Release – Governor SBP addresses international investors about Pakistan’s economy
Governor State Bank of Pakistan (SBP), Mr. Jameel Ahmad, met key international investors during events organized by global banks, including Barclays, JP Morgan, Standard Bank, and Jefferies on the sidelines of the IMF-World Bank meetings in Marrakech, Morocco. Governor SBP briefed the investors about the recent macroeconomic developments, policy responses to current challenges, and the outlook of Pakistan’s economy, and also answered their questions. The Governor informed the investors that the current policy mix adopted by the Government and the Central Bank is geared towards achieving stabilization through addressing macroeconomic imbalances. He apprised that the SBP is among the first central banks that began to tighten monetary policy in the wake of the rising inflation globally. However, certain domestic challenges, most notably the unprecedented floods in the beginning of the previous fiscal year, complicated SBP’s efforts to bring down inflation. On a cumulative basis, SBP has increased the policy rate by 1500 bps over the last two years. Likewise, the government has also stepped up its fiscal consolidation efforts.
vi. Press Release–SBP Releases Annual Report on The State of Pakistan’s Economy
The State Bank of Pakistan (SBP) released today its Annual Report on the State of Pakistan’s Economy for the fiscal year 2022-23. According to the report, Pakistan’s economy faced multiple challenges during FY23, as longstanding structural weaknesses exacerbated the impact of successive domestic and global supply shocks of unprecedented nature. The country’s macroeconomic situation had already begun to deteriorate since the second half of FY22 in the aftermath of the Russia-Ukraine conflict, elevated global commodity prices and an unplanned fiscal expansion. The situation worsened during FY23 owing to floods, delay in the completion of the 9th review of the IMF’s Extended Fund Facility (EFF) program, continuing domestic uncertainty, and tightening global financial conditions. Particularly, the devastating monsoon floods significantly dented economic activity, fueled inflationary pressures, increased stress on external account and widened fiscal imbalance because of spending on relief efforts. Similarly, the uncertain global economic and financial conditions, softening – but still elevated – global commodity prices, higher debt servicing and reduced external inflows had implications for various sectors of the economy.
vii. Press Release – SBP introduces new measures to facilitate IT Exporters and Freelancers
In order to facilitate the IT exporters to boost the exports of IT and IT enabled services, SBP has increased the permissible retention limit of IT exporters from 35% to 50% of their export proceeds in the Exporters’ Specialized Foreign Currency Accounts (ESFCAs). Further, the usage of the balances available in the ESFCAs has been simplified by allowing the IT exporters to make their payments from these accounts without any approval from SBP or banks. The banks have also been advised to facilitate issuance of debit cards, enabling the IT exporters to make online payments from the balances available in their ESFCAs. Moreover, a new Framework for Freelancers has been introduced to further ease the opening of their bank accounts and allow higher retention of amounts in their FCY accounts. The freelancers will now be able to open the bank accounts both digitally and physically at their choice with minimum documentation requirements. Further, their ESFCAs shall be opened concurrently with the opening of their primary PKR account. The freelancers can retain 50% of their export proceeds or USD 5,000/- per month, whichever is higher, in their ESFCAs and can make all payments from these accounts without any approval from SBP or banks
viii. Press Release – Use of RMB to facilitate trade with China: Governor SBP
Addressing a ceremony on “Promoting the use of RMB in Cross-Border Settlement” today, organized by ICBC Bank in the Jinnah Conventional Center Islamabad, Governor SBP Mr. Jameel Ahmad highlighted the strong and long-lasting economic and financial ties between Pakistan and China, and said using Renminbi (RMB) for settling cross-border trade and investment transactions with China can further strengthen these ties. The event was held to mark the bank’s designation as the RMB clearing agent in Pakistan by the People’s Bank of China (PBoC). Governor SBP elaborated that given the importance of Pakistan’s economic ties with China, the SBP has put in place the required regulatory framework that facilitates use of RMB in trade and investment transactions, such as opening of L/Cs and availing financing facilities in RMB.
In terms of regulations in Pakistan, RMB is at par with other international currencies, such as the US Dollar, Euro and Japanese Yen, he asserted. Both public and private sector enterprises in Pakistan are free to choose RMB for bilateral trade and investment activities. As a result of the Central Bank’s efforts to promote use of RMB in trade with China, RMB denominated imports of Pakistan from China have increased from about 2% in FY18 to around 18% in FY22.
ix. Press Release – Monetary Policy Statement
At its meeting on 30/102/2023, the Monetary Policy Committee (MPC) decided to maintain the policy rate at 22 percent. The Committee noted that headline inflation rose in September 2023 as expected. However, it is projected to decline in October and then maintain a downward trajectory, especially in the second half of the fiscal year. While the recent volatility in global oil prices as well as the increase in gas tariffs from November 2023 pose some risks to the FY24 outlook for inflation and the current account, the Committee also noted some offsetting factors. These include the targeted fiscal consolidation in Q1; improvement in market availability of key commodities; and the alignment of interbank and open market exchange rates.The MPC noted the following key developments since its September meeting. First, the initial estimates for Kharif crops are encouraging and will have positive effects on other key sectors of the economy. Second, the current account deficit narrowed considerably in August and September, which helped to stabilize the SBP’s FX reserves position amidst tepid external financing in these two months. Third, fiscal consolidation remained on track, with both fiscal and primary balances improving during Q1- FY24. Fourth, while core inflation remains sticky, inflation expectations of both consumers and businesses improved in the latest pulse surveys. However, global oil prices remain quite volatile and the conflict in the Middle East makes its outlook even more uncertain.
x. Pakistan emerges as a top International Development Association borrower in 2023
Pakistan was the top borrower of the International Development Association (IDA) in fiscal year 2023, securing $2.3 billion in funding, the World Bank said in its annual report. The bank helped Pakistan respond to devastating floods with nearly $1.7bn for five projects in the worst-affected Sindh province to build resilient housing, restore crop production, provide health services for mothers and children, and strengthen social protection and the local government’s disaster response capacity. The document, titled “World Bank Annual Report 2023 — A New Era in Development”, states that the international institution approved $10.1bn in lending for 37 operations in the South Asian region during the fiscal year 2023 — $4.3bn in International Bank for Reconstruction and Development (IBRD) commitments and $5.8bn in IDA commitments. IDA is the world’s largest multilateral source of concessional financing, offering development loans, grants, and guarantees to the poorest countries. It aims to facilitate economic growth, reduce poverty, and enhance the living conditions of impoverished populations.
i. Amendment in S.R.O 797(I)/2021 dated 21.06.2021 to assign Jurisdiction to the relevant Adjudication Collectorates dealing with the cases of the new created Collectorates
In exercise of the powers conferred by section 3 of the Customs Act, 1969 (IV of 1969), read with section 179 thereof, the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in its Notification No.S.R.0.797(1)/2021, dated the 21′ day of June, 2021. In the aforesaid Notification, in the Table, in column (1),- (1) against S.No.1, in column (3),- in entry (iii), the word “and” shall be omitted; and thereafter the following new entry shall be added, namely:- “(v) Collectorate of Customs Enforcement (Ports), Custom House, Karachi.”; (2) against S.No.3, in column (3),- in entry (vi), the word “and” shall be omitted; and thereafter the following new entry shall be added, namely:- “(viii) Collectorate of Customs Appraisement, Taftan.”; and (3) against S.No.6, in column (3),- in entry (vii), the word “and” shall be omitted; and thereafter the following new entry shall be added, namely:- “(ix) Collectorate of Customs Appraisement, Kohat.”
ii. New Demarcation of NLC Dry Port, JiaBagga, Lahore
In exercise of the powers conferred by clause (a) of section 9 and clause (b) of section 10 of the Customs Act, 1969 (IV of 1969), and in supersession of its Notification No.S.R.0 595(1)/2020, dated the 2’dday of July, 2020, the Federal Board of Revenue is pleased to declare NLC Dry Port JiaBagga of 346500 square feet situated at khasra Nos. 2414, 2415, 2417, 2418, 2419, 2420, 2421, 2422, 2423, 2424, 2425, 2426 and 2427, JiaBagga Road Lahore, to be a customs-port for clearance of goods or any class of goods imported or to be exported.
iii. Amendment in Custom Rules, 2001
The following draft of certain further amendments in the Customs Rules, 2001, which the Federal Board of Revenue proposes to make in exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, section 40 of the Federal Excise Act, 2005 and section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published for information of all persons likely to be affected thereby and, as required by sub-section (3A) of section 219 of the Customs Act, 1969 (IV of 1969), notice is hereby given that objections or suggestions thereon, if any, may for consideration of the Board be sent within two days of publication of the draft amendments in the official Gazette. Any objections or suggestions which may be received from any person, before the expiry of the aforesaid period, shall be taken into consideration by the Federal Board of Revenue. In the aforesaid Rules, in Chapter XXI.- in rule 473, for sub-rule (3), the following shall be substituted, namely: – “(3) After filing of GD, a minimum of twenty-five percent consignments of transit goods shall be selected for scanning and a minimum of ten percent for examination by the Risk Management System (RMS) while those consignments cleared by RMS shall be forwarded to the respective terminal operator for delivery and to the sealing officer for sealing”.” in rule 475, in sub-rule (3), for the expression “up to 20%” the expression “A minimum of twenty-five percent consignments of transit goods shall be selected for scanning and a minimum of ten percent for examination by the Risk Management System (RMS).” in rule 484E, sub-rule (1) after the words “consignment shall be subjected to the” the words “minimum of twenty-five (25) percent consignments of transit goods shall be selected for scanning and a minimum of ten (10) percent for examination by the Risk Management System (RMS)” shall be added.
iv. Imposition of processing fee @10% ad-valorem under Section 18D of the Customs Act, 1969
In exercise of the powers conferred by section 18D of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to impose processing fee at the rate of 10% ad valorem on the following Afghan transit Commercial goods imported into Afghanistan in transit via Pakistan in which the major categories include Confectionaries and Chocolates, Footwear, Machinery (Mechanical and Electrical), Blankets and Home Textiles,and Garments. The Provisions of this notification shall not be applicable on the Afghan Transit Goods Declarations (AT-GDs) filed prior to issuance of this notification.
v. Press Release – Chairman FBR Holds E-Kacheri
Chairman Federal Board of Revenue (FBR) Malik Amjed ZubairTiwana held an E-Kachehri at FBR (HQs) on Thursday as part of FBR’s drive to facilitate taxpayers in tax compliance and to address their tax-related concerns.During the occasion, Chairman FBR directly received telephone calls from taxpayers and listened to their issues. The Chairman issued on-spot directions to relevant offices to resolve problems of the taxpayers at the earliest. He also encouraged the taxpayers to visit their nearest Regional Tax Office and Collectorate of Customs for speedy resolution of their concerns pertaining to filing of tax returns. He apprised that Field Formations have already been given instructions for maximum facilitation of taxpayers. The Chairman FBR also appreciated the suggestions given by taxpayers and assured them that their valued input would be duly considered during formulation of tax policies and initiatives for taxpayers’ facilitation. He reaffirmed that FBR was making all-out efforts to facilitate the taxpayers. The EKachehri occasion not only provides a platform to the taxpayers for quick redressal of their grievances but also promotes tax compliance and outreach. The exercise also helps in keeping a strong check on the performance of the Field Formations.
vi. Press Release – Chairman NADRA calls on Chairman FBR
Chairman Federal Board of Revenue Malik Amjed ZubairTiwana held a meeting with Chairman NADRA Lieutenant General Muhammad MunirAfsar at FBR Headquarters. During the meeting, matters pertaining to data sharing of eligible taxpayers were discussed. It was agreed to continue coordination on taxation affairs between FBR and NADRA. Chairman FBR reiterated that Revenue Division is committed to maximise tax compliance and promote tax culture across the country for increased revenue generation.
vii. Press Release – Caretaker Federal Minister for Finance and Revenue Dr.Shamshad Akhtar and Chairman FBR Malik Amjed ZubairTiwana Visited Overseas Investors Chamber Of Commerce & Industry (OICCI) And Korangi Association Of Trade & Industry (KATI) Today In Karachi
Caretaker Federal Minister for Finance and Revenue Dr. Shamshad Akhtar and Chairman FBR Malik Amjed ZubairTiwana visited Overseas Investors Chamber of Commerce & Industry (OICCI) and Korangi Association of Trade & Industry (KATI) today in Karachi and held meeting with their representatives. The meeting was also attended by all chief commissioners-IR and Chief Collectors Customs heading their respective field formations stationed in Karachi. The representatives of OICCI and KATI acknowledged the efforts of FBR field formations in taxpayers’ facilitation and revenue mobilization while also highlighting the issues like complicated tax compliance, over regulation, absence of documentation at cottage industry level, narrow tax base, non-filers, transit trade and IT glitches faced by exporters. The honorable Minister explained measures current government has undertaken to stabilize economy and to ensure optimum revenue collection. During the meeting, Chairman FBR discussed issues raised by representatives of both bodies and assured them that their concerns will be addressed instantly. He also emphasized on recent important initiatives taken by FBR like designating 50% of RTOs workforce for Broadening of Tax Base, Track and Trace System and crackdown on non-duty paid goods. The Minister and Chairman FBR also visited LTO, Karachi and held meeting with Chief Commissioner-IR, Chief Collectors Customs and Commissioners-IR. During the meeting, the minister appreciated FBR field formations for exceeding collection target during the first quarter of the current financial year and directed CCIRs to continue making endeavors to meet the budgetary target fixed for the year.
viii. Press Release – FBR Achieves Target for the 4th Consecutive Month with unprecedented 43% Growth in Domestic Taxes
FBR achieves revenue collection target for the fourth consecutive month with 43% domestic and 37% overall growth. During the period July to October 2023, FBR has collected Rs. 2,748 billion (2022: 2,159 billion) against assigned target of Rs. 2,682 billion, thereby exceeding it by Rs. 66 billion. FBR has put in tremendous efforts to achieve revenue target for the month of October, 2023. As against Rs. 516 billion collected in the month of October 2022, FBR collected 707 billion during the month of October 2023. At the same time, FBR also issued refunds amounting to Rs. 158 billion during the first four months as against Rs. 113 billion refunded in the corresponding period of previous year. Total returns filed up to 31st October, 2023 for tax year 2023 were 2.9 million approximately as against 2.57 million filed in the corresponding period of previous year showing an increase of 330,000. Chairman FBR appreciated the exceptional effort, hard work, professionalism and dedication displayed by FBR officers and officials. FBR is poised and determined to achieve assigned targets for coming months of the current financial year.
i. Decision of the Authority in the matter of Fuel Charges Adjustment for the month of August 2023 for XWDISCOs along with Notification Thereof
Decision of the Authority (total 12 Pages) regarding adjustment in fuel charges in respect of Ex-WAPDA Distribution Companies for the month of August 2023 and its Notification i.e. S.R.O. 1400 (1)/2023 dated October 05, 2023. 2. XWDISCOs are directed that while charging the fuel charges adjustment from their consumers, the Order of the Honourable Court(s), if any, be kept in mind and ensure compliance with the Order(s) of the Court(s), whatsoever, in this regard. In case of non-compliance of Courts Order the concerned DISCO shall be held responsible for violating / defying the orders of the Honorable Court(s). The detailed decision is available at NEPRA’s website which can be accessed via the given link.
ii. Decision of the Authority in the matter of Tariff Proposal Submitted by Islamabad Electric Supply Company Ltd. (IESCO) for Procurement of Power from the 3.2 MW Rehra Hydropower Project located in AJK
Decision of the Authority (total 20 Pages) in Case No. NEPRA/IPT- 13. The Decision is being intimated to the Federal Government for the purpose of notification in the official Gazette pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 within 30 days from the intimation of this Decision. In the event the Federal Government fails to notify the subject tariff Decision or refer the matter to the Authority for reconsideration, within the time period specified in Section 31(7), then the Authority shall notify the same in the official Gazette pursuant to Section 31(7) of NEPRA Act.
iii. Order of the Authority in the Matter of Modification -XI in the Generation Licence of K-Electric Limited that remanded to the Authority by the NEPRA Appellate Tribunal
Order of the Authority alongwith additional note of Mr. MatharNiaz Rana (nsc), Member NEPRA in the subject matter for your information, record and further necessary action. This order shall modify the decisions of the Authority (i). No. NEPRNR/LAG05/36655/61 dated September 15, 2021 and (ii). No. NEPRA/R/DG(Lic)/LAG05/7193/98 dated May 12, 2022 in the matter of Licensee Proposed Modification-XI (LPM-Xl/Modification-Xl) in the Generation License of KEL, to the extent of allowing the cost related to the interim operation of Unit-3 of Bin Qasim Power Station-I (BQPS-l), from May01, 2021, to August 15, 2021.
iv. Decision of the Authority pursuant to the Judgement of Honorable Supreme Court of Pakistan dated January 19, 2023 in the matter of Civil Appeals No. 1011 to 1119 of 2020 & 1185 to 1191 of 2020 and C.P No.3428 of 2020 & 1145-K of 2020 & 4775 to 3780 of 2020
Decision of the Authority along with Annex-A (total 03 Pages). The instant Decision of the Authority along with Annex-A is being intimated to the Federal Government for the purpose of notification in the official Gazette pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. 2. The Decision is being intimated to the Federal Government for the purpose of notification in the official Gazette pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 within 30 days from the intimation of this Decision. In the event the Federal Government fails to notify the subject tariff Decision or refer the matter to the Authority for reconsideration, within the time period specified in Section 31(7), then the Authority shall notify the same in the official Gazette pursuant to Section 31(7) of NEPRA Act. The detailed decision can be accessed via the given link.
i. Pakistan Refiner Imports Pakistan’s first Private-Sector Russian Crude Cargo
Pakistan refiner Cnergyico has imported the country’s first private-sector shipment of Russian crude oil, it said onMonday, as the cash-strapped nation takes advantage of Moscow’s discounts on its oil exports.The South Asian nation has started snapping up crude oil that Russia has discounted after its exports were banned from Europeanmarkets over Russia’s invasion of Ukraine.Pakistan’s first cargo, imported by the government, arrived in June and a second government-to-government shipment is undernegotiation. It had been assumed that private imports would not be commercially viable because, among other things, cargoeshave to be split and transferred to smaller ships as Pakistan’s ports cannot handle large tankers. But Cnergyico used its singlepoint mooring, which can accommodate deep-draft tankers, a company spokesman said in response to questions from Reuters.The crude is to be refined at the company’s refinery in the southwestern city of Hub.Processing the 100,000-metric-ton shipment of Urals crude “marks an important milestone for the company and for the countryas well,” said the spokesman. “It demonstrates the company’s capabilities and readiness to refine different types and complexities of crude oil.” Cnergyico operates the largest refinery in Pakistan, with a capacity of 156,000 barrels per day (bpd), accounting foronethird of a national capacity of 450,000 bpd.
ii. OGRA to Finalize Upgrade Deal with Local Refineries by Deadline
Pakistan’s oil regulator has convened a series of meetings with local refineries this week to finalize the upgrade agreement and the escrow account agreement under the new refining policy, sources told The News on Monday. The Oil & Gas Regulatory Authority (OGRA) has been slow in finalizing these agreements, which are required to be completed within three months of the notification of the policy on August 17, 2023, the sources said. The local refining sector has been expressing concern over the delay in finalising these agreements on the part of OGRA, as only three weeks remain to do so under the policy, they added. “OGRA has been dragging its feet in speeding up the finalization of these agreements, which is causing concern in the local refining sector,” an industry offcial said. @Meetings have now been convened this week to finalize the agreements so that the local refineries can move forward with their upgrade plans.”
Editors
Syed Bulent Sohail
Founding Partner
Sohail & Partners LLP
Advocate High Court
www.sohailco.org
bulent@sohailco.org
Haider Waheed
Founding Partner
Haider Waheed& Partners
Advocate Supreme Court
www.hwandpartners.com
hw@hwandpartners.com
Zarmeeneh Rahim
Senior Partner
Sohail & Partners LLP
wwwsohailpartnersllp.com
zarmeeneh@sohailco.org
Zoha Sirhindi
Partner
MSB Consultants
Advocate High Court
www.msbconsultants.com.pk
zoha.sirhindi@msbconsultants.com.pk
Contributing Editors
Anum Bawany
Partner
MSB Consultants
Advocate High Court
Syed Shahroz Bakhtiyar
Senior Associate
Advocate High Court
Salman K. Haider
Senior Associate
Advocate High Court
Taimoor Khan
Associate
Advocate
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