Dec.

1, 2015

KCCI - eBulletin
Dar's mini-budget
The govt. has taken taxation measures of PKR 40Bn by imposing a 5 to 10% regulatory duty (RD) on the import of 350 luxury and
non-essential items, 1% additional customs duty across the board on all tariff slabs, an increase in Federal Excise Duty (FED) on List of Indicators
cigarettes and a raise in fixed duty on import of old and used vehicles (above 1000cc) from Dec. 1, 2015. The new revenue
USD-Interbank
generation measures were announced by Finance Minister Ishaq Dar on Nov.30, 2015 where he also extended date for filing of
USD-Open MKT
income tax returns and applicability of 0.3% concessionary rate on banking transactions of non-filers till Dec. 31, 2015. BR.
5-10% regulatory duty levied on 61 new items
FBR has imposed 10% regulatory duty (RD) on the import of live poultry, apparel and clothing accessories of leather, footwear
and cocoa paste and different kinds of fruits from Dec. 1, 2015. The govt. announced imposition of 5-10% RD on 61 new items.
The 61 items, on which customs duty is applicable, are also subjected to different rates of regulatory duty. The FBR has done
working on SRO 568(I)/2014 (RD on luxury/non-essential goods) (excluding cotton yarn, grey & processed fabric, blankets and
iron & steel sector). BR.

Date / Period

Unit

Value

Change Daily

30-Nov

PKR

105.50

-0.01%

30-Nov

PKR

106.85

0.33%

KSE-100 index
FIPI

30-Nov
30-Nov

Pts.
$ Mn

32,255
-8.17

-2.14%
NM**

Crude (JA'16)

30-Nov

$/bbl

41.62

-0.69%

Gold (NO'15)

30-Nov

$/oz

1,064.9

0.77%

Gold (10g) Local

30-Nov

PKR

38,100

-1.00%

Silver (NO'15)

30-Nov

$/oz

14.05

0.04%

Cotton(KHI)-40 kg

30-Nov

PKR

5,734

0.00%

30-Nov

6.53%

0.01%

20-Nov

$ Bn

19.83

0.58%

Jul-Oct 15

$ Bn

6.51

5.21%

Exports*

Jul-Oct 15

$ Bn

6.88

-13.42%

Imports*

Jul-Oct 15

$ Bn

14.58

-12.76%

Trade Balance*

Jul-Oct 15

$ Bn

-7.70

12.15%

Current Account
Avg. CPI-FY16*

Jul-Oct 15
Jul-Oct 15

$ Mn
%

-532
1.65

71.96%

Kibor-6M
1% additional duty levied on import of mobile phones
FBR has imposed 1% additional customs duty on the import of mobile phones, landline phones and satellite phones falling under
Pakistan Customs Tariff heading (PCT) 8529.1090 from Dec. 1, 2015. The govt. has exempted telecom sector from 1% additional Forex Reserves
customs duty imposed across-the-board at import stage. The petroleum products are not included in the list of items and sectors
exempted from 1% additional customs duty. This means that petroleum products are also subjected to 1% additional customs
Remittances
duty at the import stage. BR.

Issues with SRB not resolved yet: FBR starts blocking NTNs of service providers
FBR, instead of resolving procedural issues with Sindh Revenue Board (SRB) over tax on services, has started blocking NTNs of
service providers - customs clearing agents and others, creating difficulties for them in filing of Goods Declarations (GDs) for
consignments' clearance. Absence of integrated system between both revenue authorities over procedural issues for book
adjustments of tax on services has put the service providers - clearing agents and others in an uncertain state as they are facing
NTN blockage over non-filing of 'Nil Returns' at FBR's e-portal despite paying taxes to provincial revenue authority. BR.
Govt delays tax amnesty scheme for traders
The government has delayed an amnesty scheme, earlier scheduled to be announced on Nov 30th, which would let traders
whiten their undeclared assets against a nominal tax payment. The broad contours of the scheme are reportedly being finalised,
but it needs prior feedback from the IMF. As a result, the government has also extended the last date from Nov 30 to Dec 31 for
payment of lower rate of withholding tax of 0.3% on banking transactions. Under the proposed scheme, the government has
shown its willingness to allow traders to whiten undeclared assets of up to PKR 100Mn by paying up to PKR 250,000 in tax.
However, the upper limit set for the assets did not go well with the IMF, and it has sought details from Islamabad. Dawn.
Remaining static: Contrary to proposal, diesel and petrol prices unchanged
The govt. has decided to leave petrol and high-speed diesel prices unchanged for the month of Dec despite a recommendation by
the regulator for price revision in line with movements in the international market. Finance Minister Ishaq Dar has announced on
30th Nov, 2015 that prices of the two vital petroleum products which is widely used in transport and agriculture sectors will stay
at the existing level of PKR 83.79 per litre and petrol at PKR 76.26 per litre. Tribune.
FBR asked to declare Sost a transit border
The communications ministry has asked the FBR to declare Sost in Gilgit-Baltistan as a transit border and to adopt all clearance
procedures in order to enhance trade activities between Pakistan, China, Kazakhstan and Kirghizstan. The directive further stated
that trade framework at Sost and other ports may also be synchronized with the Weboc system. Pakistan has a quadrilateral
agreement with China, Kazakhstan and Kyrgyzstan to facilitate trade and transport through its territory between Sost border and
Karachi port, which has been operational since 2004. Dawn.
FBR to start biometric verification of registered sales tax payers
The FBR has decided to verify all the registered sales taxpayers after the board found that a large number of registration
certificates were issued to fake entities. Presently, around 115,000 registered units are filing their sales tax statements and
returns against which multibillion rupees of refunds are claimed. Several genuine taxpayers are unable to receive the due refunds
because of the fake claimants and facing cash flow problems. The FBR is expected to issue the guidelines within the next couple
of days. The News.
CCP approves integration of stock exchanges
The Competition Commission of Pakistan (CCP) has issued the detailed Phase II Review Order regarding the integration of ISE,
LSE, and KSE and approved the merger while imposing conditions to remedy certain competition concerns. In a detailed
judgment, CCP has undertaken a comprehensive competitive analysis of the merger to determine if it substantially lessens
competition by creating or strengthening a dominant position. The order provides that how entry into the market by new stock
exchanges, would be affected by this merger and further that if at any time in the post-merger scenario, the commission finds
the integrated exchange to be engaging in abuse of its dominant position, it has the power to penalize the undertaking and
rectify such a situation under the provisions of Section 3 of the Act. Daily Times.
BlackBerry delays Pakistan shutdown
BlackBerry Ltd. will delay shutting down its operations in Pakistan until December 30th as negotiations continue over government
demands for access to usersprivate data. Pakistan Telecommunication Authority (PTA) had in Jul15 demanded BlackBerry give it
access to its BlackBerry Enterprise Services, which encrypt data such as emails and instant messages, or shut it down by
November 30th. The News.

WoW
YoY

Nov-15
Discount Rate
%
6.00
Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS*
** Not Meaningful
WoW= week on week; YoY=Year on Year

Major Currencies
175

GBP, 30-Nov-15,
158.6

165
155
145
135

EUR, 30-Nov-15,
111.6

125
115
105

USD, 30-Nov-15,
105.5

95
85
75
Nov-12

May-13
USD

Nov-13

May-14

GBP

EUR

Nov-14

May-15

Nov-15

Source: KCCI Research ; Oanda.com

Quote of the Day

"To the man who only has a hammer, everything he

encounters begins to look like a nail."
Abraham Maslow
Chart of the Day

Govt.'s Domestic Debt & Liabilities (Jul.'11 - Sept.'15)

14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Jun-11R
Aug-11R
Oct-11R
Dec-11R
Feb-12R
Apr-12R
Jun-12R
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13R
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14R
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15

Provisional figures: over PKR 229Bn collected in Nov.15

During the month of Nov.15, according to the provisional figures received so far, the FBR has made a net collection of more than
PKR 229Bn, as against net collection of PKR 180Bn made last year showing an increase of 27%. From Jul.15 Nov.15, FBR made
a net collection of more than PKR 1,044Bn as against net collection of PKR 904Bn made last year resulting in an increase of 15%.
Up to Oct.15, this increase was at 12%. This is after having issued refunds of PKR 36Bn as against PKR 34Bn issued during
5MFY15. BR.

Economic Indicators

Domestic Debt (PKR Tn)

Domestic Liabilities (PKR Tn)

Source: KCCI Research, SBP

Disclaimer
South Korea ratifies free trade deal with China
South Korea has ratified a free trade agreement (FTA) with China that would remove most tariffs between Asias largest and
fourth-largest economies. The two countries will gradually remove tariffs on more than 90% of traded goods within 20 years. The
pact materialized after the Seoul government promised to provide about 1Tn Won ($ 865Mn) in direct financial support for
farmers and fishermen who argue that their livelihoods will be severely affected by the deal. However, the FTA still needs Chinas
ratification in order to take effect. Dawn.

This report has been prepared by KCCI Research & Development Cell. The information contained
herein have been compiled or arrived at based upon information obtained from sources believed to
be reliable and in good faith. Such information has not been independently verified.
icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the
readers' understanding of the news item. The R&D Dept. bears no responsibility for its
correctness or accuracy. Contact: res@kcci.com.pk