Category: Business

In a momentous development, EduFi Financial Services Private Limited, a pioneering education lending FinTech company, has been granted its Non-Banking Financial Company (NBFC) license by the Securities and Exchange Commission of Pakistan (SECP).

This landmark achievement propels them into an exciting phase as EduFi formally launches its operations in the Pakistani market.

EduFi is at the forefront with its groundbreaking education lending app. Harnessing the power of artificial intelligence (AI), the app revolutionizes the process that not only streamlines the application process but also ensures fairness and objectivity in lending decisions. The app provides tailored financial offerings that align with the individual’s educational aspirations and capacity to repay.

As a result, students gain access to necessary funds, empowering them to pursue their academic goals without the burden of financial uncertainty.

This innovative solution is set to transform the education finance sector, making it more access
ible, efficient, and responsive to the needs of a diverse student population.

‘Our vision has always been to revolutionize the educational landscape of Pakistan to enhance our adult literacy rate and provide accessible and innovative financial solutions to a deprived sector of our economy. With the NBFC license in hand, we are now fully equipped to turn this vision into reality. We are set to embark on a mission to empower students, educators, and institutions with the financial tools they need to succeed. Education is the cornerstone of progress, and we believe that financial constraints should never be a barrier to learning. Our suite of products is designed to bridge the gap between ambition and opportunity, offering tailored financial solutions packages that will open doors for countless learners across Pakistan. We invite all Pakistani students to join us on this journey and fund their future with EduFi.’ said company CEO and founder Aleena Nadeem.

Source: Pro Pakistani

After suspension of a top Federal Board of Revenue (FBR) official for not pursing cases in high courts, the Securities and Exchange Commission of Pakistan (SECP) has immediately appointed new Special Public Prosecutors to defend cases before courts/tribunals including High Courts and Supreme Court of Pakistan.

In this regard, the SECP issued an S.R.O.(I)/2024 on Wednesday. The notification revealed that the Competent Authority of the SECP has nominated and re-designated officers/advocates as Special Public Prosecutors to conduct all prosecution of offences against any person or any administered legislation provided thereto.

Provided that Special Public Prosecutors may institute or defend cases, appeals, petitions, applications and all other matters before any court/tribunal including the High Courts and Supreme Court of Pakistan in matters arising out of any administered legislation provided thereto.

The Special Public Prosecutors will be entitled to benefits for their respective grades as per Schedule of
Entitlement of Management Cadre outlined in HR Manual.

Syed Farhan Shah has been nominated as Special Public Prosecutor for Islamabad Capital Territory (ICT) and KP (High Courts, Court of Sessions and Special Courts/Tribunal).

Fatima Shabbir has been nominated as Special Public Prosecutor for Islamabad Capital Territory (ICT) and Rawalpindi (High Courts, Court of Sessions and Special Courts/Tribunal).

Hassnain Raza has been nominated as Special Public Prosecutor for Islamabad Capital Territory (ICT), Rawalpindi and KPK (Court of Sessions and Special Courts/Tribunal).

The officers, previously notified as Special Public Prosecutors, have relinquished their respective charge from the Prosecution and Civil Litigation Department, and therefore, they are de-notified as Special Public Prosecutors, SECP added.

Source: Pro Pakistani

The Pakistan Stock Exchange (PSX) rose to a new all-time high on Wednesday, surpassing its previous high of 71,500 seen on Tuesday.

After opening trade at 71,359 points, the benchmark KSE-100 index went up by 1.48 percent or 1,055 points at 10:35 AM to a new high of 72,414.

It closed at 72,051, up 0.97 percent or 692 points.

The KMI 30 index gained 1,486 points settling at 121,162, while the KSE All share index increased by 306 points to close at 47,172.

Top Volumes

The highest participation was witnessed in Pakistan International Bulk Terminal (PSX: PIBTL) with over 54.5 million shares traded, followed by K-Electric Limited (PSX: KEL) and Air Link Communication Limited (PSX: AIRLINK). The scrips had 40.1 million shares and 25.9 million shares traded, respectively.

SCRIP PRICE HIGH LOW CHANGE VOLUME

PIBTL 7.02 7.07 6.79 0.38 54,513,000

KEL 4.16 4.23 4.1 0.09 40,123,957

AIRLINK 78.39 78.39 72.5 5.42 25,939,673

WTL 1.34 1.36 1.32 0.02 24,114,567

TELE 9.14 9.27 8.9 0.15 17,620,891

UNITY 24.53 24.55
23.61 0.6 16,685,503

PRL 27.74 28.25 27.4 -0.48 16,645,816

Source: Pro Pakistani

Pakistan and Iran have agreed to expeditiously finalize the Free Trade Agreement (FTA), a joint statement said on Wednesday as Iranian President Dr. Seyed Ebrahim Raisi concluded his three-day official visit to Pakistan.

According to the joint statement, with a view to further strengthening bilateral economic cooperation, both sides agreed to expeditiously finalize the Free Trade Agreement (FTA) and hold the next sessions of Annual Bilateral Political Consultations (BPC) and Joint Business Trade Committee (JBTC) as well as the 22nd round of the negotiations of the Joint Economic Commission (JEC) in the near future.

The statement said that the two countries also agreed to facilitate regular exchange of economic and technical experts, as well as delegations from Chambers of Commerce from both countries to intensify economic cooperation. The declaration of ‘Reemdan border point’ as an international border crossing point under TIR and opening of the remaining two border sustenance markets was also agreed.

Bot
h sides agreed to enhance mutual interaction through regular exchange of high-level visits to strengthen fraternal relations, the statement added.

Further, the two sides agreed to further expand trade and economic cooperation and affirmed their commitment to transform their common border from ‘border of peace’ to a ‘border of prosperity’ through joint development-oriented economic projects, including setting up of joint border markets, economic free zones, and new border openings.

They also reiterated the importance of cooperation in the energy domain, including trade in electricity, power transmission lines and IP Gas Pipeline Project. The two leaders agreed to boost their bilateral trade to $10 billion over the next five years.

Both sides underscored the imperative of a long-term durable economic partnership and collaborative regional economic and connectivity model, particularly for socio-economic development in Iran’s Sistan-Balochistan Province and Pakistan’s Balochistan Province, the statement added.

The joint statement said that there was consensus to fully operationalize barter trade mechanisms between the two sides to facilitate economic and commercial activity, particularly under ongoing collaborative endeavours, such as border sustenance markets, which would contribute towards improvement of the economic situation of local residents, and further constitute a step towards enhancing border security.

Pakistan and Iran stressed the importance of harnessing their respective geographic locations for promoting connectivity between the two countries as well as with the broader region. The two sides noted with satisfaction the progress made in the regular shipment of goods under the TIR Convention and agreed to fully operationalize the Convention to further promote efficient, speedy and barrier-free trade between Pakistan and Iran. It was agreed that full operationalization of the TIR Convention would also enhance regional integration and connectivity across the wider ECO region, the statement said.

It adde
d that as members of Belt and Road Initiative (BRI) and Economic Cooperation Organization (ECO), the two countries expressed firm resolve to enhancing cooperation in connectivity, infrastructure development and energy sectors. The two countries also agreed to expand mutually beneficial and enduring linkages between the sister ports of Gwadar and Chahbahar.

It is pertinent to mention here that, at the invitation of the Prime Minister Shehbaz Sharif, the Iranian President paid an official visit to Pakistan from 22-24 April 2024. The president o was accompanied by a high-level delegation comprising the Foreign Minister of Iran as well as other members of the cabinet and senior officials.

Source: Pro Pakistani

The Directorate of Customs Intelligence, Karachi has detected a fraudulent import of artificial leather worth Rs. 220 million.

According to information obtained by ProPakistani, the Directorate of Customs Intelligence, Karachi through Director General Faiz Ahmad Chadhar received credible information that the Clearing Agency M/s Ayyaz Enterprises was involved in imports of artificial leather without payment of duty and taxes in the name of fake companies including M/s Awami Textile, M/s Fraz Enterprises and M/s Pak Asia for manufacture of goods for exports but was fraudulently selling it illegally.

The investigation carried out by the Directorate of Customs Intelligence, Karachi revealed that Awami Textile, Fraz Enterprises, and Pak Asia having addresses in different parts of the country did not physically exist and that the artificial leather imported without duties and taxes for manufacture of goods for export on their names was illegally sold in the market.

These companies were fake, only existed in doc
uments, and had been created for evasion of massive duties and taxes through misuse of the Exports Facilitation Scheme introduced by the government for the promotion of exports.

Ayyaz Enterprises have so far imported artificial leather worth Rs. 220 million in the name of these fake companies by evading duties and taxes of Rs. 110 million and fraudulently sold it in the market.

One of the shipments of artificial leather valuing Rs. 16 million involving duty and taxes of Rs. 0.86 million imported by Ayyaz Enterprises in the name of fake company Awami Textile has also been seized at KICT West Wharf, Karachi port by the Directorate of Customs Intelligence, Karachi which has lodged FIR against the Clearing Agent as well as the fake companies on whose name huge quantity of artificial leather was imported without payment of duties and taxes and has initiated further investigations.

The Directorate of Customs Intelligence, Karachi is of the view that this timely cognizance of the misuse of the Export Facilitation
scheme introduced by the government for bonafide exporters will help in preventing its misuse by unscrupulous elements in the future.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) will disallow input tax adjustment of 1,680 Tier-1 retailers in case they fail to integrate with the FBR’s computerized system for real-time reporting of sales till May 31, 2024.

A Sales Tax General Order No. 01 of 2024 issued on Wednesday revealed that the Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 (‘the STA, 1990’) which provided that input tax of a Tier-1 Retailer ‘(T-1R)’ who did not integrate its retail outlet in the manner prescribed under subsection (9A) of section 3 of the STA, 1990 during a tax period, would be reduced by 15 percent.

The figure of 15 percent was subsequently raised to 60 percent vide the Finance Act, 2021.

In order to streamline the process of registration and integration of Tier-1 retailers, FBR has issued S.R.O 1842(I)/2023, dated 21st December 2023, whereby retailers, whose deductible withholding tax under section 236H of the Income Tax Ordinance, 2001 during immediate preceding twelve consecutive months
has exceeded Rs 100,000 have been prescribed as Tier-1 retailers under clause (g) of section 2(43A) of the Sales Tax Act, 1990.

Such retailers are liable to be registered and integrated with the Board’s computerized system for real-time reporting of sales under the Sales Tax Act, 1990 and rules made thereunder.

The FBR has issued a new STGO for the integration of such retailers who fulfill the conditions laid down in section 2(43A)(g).

In order to operationalize this important provision of law, a system-based approach has been adopted whereby all T-1Rs who are liable to integrate but have not yet integrated, w.e.f. June-2024 (Sales Tax Returns filed in July 2024) are to be dealt with as per the procedure.

A list of 1,680 identified T-IRs, enclosed with this STGO has also been placed on FBR’s web portal at www.fbr.gov.pk allowing them to integrate with the FBR’s POS System by 31st May 2024.

In case a notified T-1R claims that it is not a T-1R as per the definition provided in Section 2(43A) of the Sales T
ax Act 1990, and therefore not liable to integrate, it shall apply to the Commissioner concerned for exclusion from the list, and the Commissioner would decide in this regard in accordance with the procedure laid down in STGO 17 of 2022, dated 13.05.2022.

Upon filing of Sales Tax Return for June 2024 for all hereby notified T-1Rs not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount, FBR added.

Source: Pro Pakistani

Islamabad Electric Supply Company (IESCO) is facing disruption in its online bill payment system, hence payments through banking apps or 1link are not working at the moment. This has resulted in people forming long queues outside of IESCO offices everywhere.

Other than IESCO offices, banks are accepting bill payments through physical visits, but online payment systems are not accessible.

However, there is a workaround that appears to be working for most banking apps.

We have an example video that shows how it is done through the Allied Bank (ABL) mobile app. Through the ABL app, users simply have to head over to the ‘Payments’ option on the top left. Select ‘New Payments’ at the top, but instead of selecting ‘Utility’, select the ‘1 Bill’ option. Scroll down to the ‘Others’ option here.

Under the ‘Reference No/Customer ID’, add a prefix such as 111444 and then add a reference number. This will show the relevant bill which can be paid from the same tab.

This method should work with banking apps that have
the 1 Bill payment option.

Reference numbers can be found near the top right corner of an IESCO bill.

The reason behind IESCO’s online bill payment disruption remains unclear and we don’t know when the issue will be fixed. We have reached out to IESCO for a comment on the matter and will update the article once we have a response.

IESCO has made no announcements or informed the public by any means as of yet. Users are able to view data for their older bills, but not their recent ones.

Free Solar Systems

In related news, Punjab has announced free solar systems for 50,000 households to help save electricity bills and promote renewable energy. Each of these systems will include two solar panels, a battery, and wiring, and will be provided to power consumers with less than 100 units of consumption per month.

Source: Pro Pakistani

Lucky Core Industries Limited announced its 9MFY24 financial result today where the company posted a profit after tax (PAT) of Rs. 7.9 billion, down 64 percent YoY compared to PAT of Rs. 21.9 billion during SPLY.

On a quarterly basis, the profitability plummeted by 85 percent YoY, arriving at Rs. 2.9 billion in 3QFY24, which is on account of gain on partial disposal of NutriCo Morinaga (Pvt) Ltd (Rs. 8.9 billion) and a remeasurement gain on the retained interest of the same (Rs. 8.2 billion) booked in SPLY, said Arif Habib Limited in a brief review of the company’s results.

During 9MFY24, net sales increased by 13 percent YoY to Rs. 91.1 billion due to higher sales across all segments and upward cost price adjustments. During 3QFY24, sales witnessed a meager uptick of 1 percent YoY.

Gross margins went up by 181 bps YoY to 21.9 percent during 9MFY24 amid a revision in sales prices.

During 9MFY24, LCI booked an exchange gain of Rs. 131 million compared to exchange loss of Rs. 935 million in SPLY amid a rec
overy in the Pak Rupee against the greenback during the period.

The other income of the company increased by 3.7x YoY to Rs. 2.8 billion during 9MFY24, which is attributable to higher income from cash and cash balances. During the 3QFY24, the other income ascended by 71 percent YoY to Rs. 891 million due to the aforementioned reason.

Finance costs of the company went up by 47 percent YoY to Rs. 2.7 billion during 9MFY24 owed to higher interest rates.

The company booked effective taxation at 35 percent in 3QFY24 vis-à-vis 10 percent in 3QCY23.

LCI posted earnings per share (EPS) of Rs. 85.93 for 9MFY24 compared to an EPS of Rs. 237.74 in 9MFY23.

Source: Pro Pakistani