Category: Business

The most important business news, explained in a young, easy to understand way. News that affects young career professionals.

  • Govt to spend Rs40 billion to uplift 20 backward districts

    Govt to spend Rs40 billion to uplift 20 backward districts

    In order to initiate rehabilitation projects across 20 backward and underprivileged districts over the course of 60 months in four provinces, the Ministry of Planning has announced a special development project worth Rs40 billion.

    The federal and provincial governments are expected to split the project’s estimated cost 50:50. The project has received approval from the Planning Minister Ahsan Iqbal-led Central Development Working Party (CDWP).

    According to DAWN, the project has already been given a budget of Rs18 billion for PSDP 2022–23. Eleven districts from Balochistan, five from Sindh, three from Khyber Pakhtunkhwa, and one from Punjab are among the 20 districts that were chosen based on Multidimensional Poverty Index (MPI) ratings. The recent flood calamity, notably in Balochistan and Sindh, has severely damaged many of these districts.

    Sherani, Kohlu, Jhal Magsi, Barkhan, Killa Abdullah, Zhob, Musakhel, Dera Bugti, Jaffarabad, Ziarat, and Killa Saifullah are among the 11 districts in Balochistan. Sujawal, Thatta, Tharparkar, Kashmore, and Badin are five in Sindh; Torghar, Shangla, and North Waziristan are three in Khyber Pakhtunkhwa; and Rajanpur is one district in Punjab.

    The tentative interventions in these districts will be in the areas of connectivity via roads, access to broadband services and the internet, solarization of off-grid areas, establishment of LPG terminals, development of the agri-livestock and mineral value-chain, tunnel framing, dairy farming, fish farming, etc., establishment of common border markets, investments in skill development, and student scholarships.

    Additionally, the provincial and federal governments will choose sub-projects based on a thorough analysis of the requirements of the marginalised population in their respective regions. These initiatives will be approved by the relevant federal and provincial forums. Steering committees at the federal and provincial levels will oversee the sub-projects.

    “This is the first of its kind project in the economic history of Pakistan where the federal government is undertaking a national intervention to uplift the poorest districts and address the disparity in economic development,” said the planning minister in a statement released on Saturday.

    With the assistance of the UNDP, the MPI survey was finished in 2017–18, allowing for the first time ever to map poverty at the district level nationwide.

    Through targeted investments in infrastructure and the development of human capital in the nation’s poorest regions, the project’s principal goal is to promote inclusive growth and equitable development. One of the main cornerstones of the proposal is investments in human capital development, especially for young people and women.

    According to Pakistan’s MPI estimation for 2017–18, 38.3 percent of Pakistan’s population (87,089,000 people in 2020) will be multidimensionally poor, and a further 12.9 percent will be vulnerable to multidimensional poverty (29,353,000 people in 2020).

    The initiative seeks to significantly contribute to eliminating regional inequality and enhancing national integration and peace in the nation in line with Pakistan Vision 2025 and the Global Agenda for Sustainable Development Goals 2030.

    Prime Minister Shehbaz Sharif’s Youth Development Program, which the project is a part of, was introduced last month.

  • FBR increases WHT rates for non-filers to raise additional revenue

    FBR increases WHT rates for non-filers to raise additional revenue

    In order to enhance the cost of non-filers and generate additional income in the second quarter (October-December) 2022–2023, the Federal Board of Revenue (FBR) has decided to carefully monitor budgetary measures established under the Finance Act 2022.

    The higher cost to non-filers was one of the budget’s driving concepts (for the years 2022-23), sources told Business Recorder. For those who don’t submit income tax returns, the withholding tax rates have increased significantly.

    The last budget included new steps in this regard (2022-23). The remainder of the current fiscal year must see some measures completely implemented, though. All procedures put in place for individuals who do not appear on the FBR’s list of active taxpayers are tightly under the FBR’s vigilance.

    For instance, the government raised the tax rate for people who don’t pay taxes regularly from 100 per cent to 250 per cent when they buy property. Similar to this, the tax rate on the acquisition of a motor vehicle by a person who is not an active taxpayer has increased from 100 per cent to 200 per cent. The financial impact of raising the advance tax rate for non-ATL individuals who purchase real estate from the current 2 per cent to 5 per cent is Rs20 billion.

    The Excise and Taxation authorities currently collect advance tax on passenger transport vehicles operating for hire based on the vehicle’s seating capacity. By substituting the Table in the manner described below, the rates of adjustable advance tax on such vehicles stipulated in Division III of Part IV of the First Schedule of the Ordinance have been increased. According to rule 1 of the Tenth Schedule to the Income Tax Ordinance, the tax rate has been increased by 100 per cent in cases where a person’s name does not appear on the Active Taxpayers List.

    The rate of tax to be collected under section 236K will rise by 250 per cent of the rate indicated in Division XVIII of Part IV of the First Schedule in the case of a purchaser of immovable property who is not listed on the Active Taxpayers List. Rule 1 of the Income Tax Ordinance’s Tenth Schedule has been updated as necessary.

    The provision 236Y has been reinserted by Finance Act 2022. When sending money outside of Pakistan on behalf of a person who has completed a credit card, debit card, or prepaid card transaction with a person outside of Pakistan, every banking company will collect this adjustable advance tax. In the case of individuals who are not on the Active Taxpayers List, the rate will increase by 100 per cent.

    The advance tax on motor vehicles that is collectible under this section will increase by 200 per cent in the event that a person does not appear in ATL. Rule 1 of the Income Tax Ordinance’s Tenth Schedule has been updated as necessary.

  • Twitter halts $8 subscription program after fake accounts abuse service to impersonate major brands

    Twitter halts $8 subscription program after fake accounts abuse service to impersonate major brands

    After users started misusing it to impersonate major companies and known personalities, Twitter appears to have suspended its $7.99/month Blue membership service, which allowed customers to pay for a verification check mark.

    This week, Twitter introduced a feature that lets users purchase a checkmark that had previously been used to denote a verified or official account in its iPhone app. Friday saw the removal of the Twitter Blue sign-up option from the iPhone app.

    The swift suspension of the service shows that, at least right now, CEO Elon Musk’s grand strategy to attract new user-based revenue isn’t succeeding as anticipated.

    According to NBC, due to the expensive subscription service, many pranksters started setting up fake Twitter accounts. It made the site even more conducive to false information, and numerous easily obtained checkmarks were used to discredit corporations, governments, and celebrities.

    According to a current Twitter sales employee, the company decided to reduce Twitter Blue verification due to the influx of impersonators.

    The employee, who wanted to remain anonymous because they were not allowed to speak on behalf of Twitter, said that a fake Eli Lilly account that tweeted that “we are excited to announce insulin is free now” caused a major issue.

    Before it was deleted, the tweet remained visible for several hours. Later, the genuine Eli Lilly account tweeted, “We regret to individuals who have received a false message from a bogus Lilly account.

    Following the fraudulent message’s publication, the stock price of Eli Lilly and other pharmaceutical firms, notably AbbVie, which was also the target of a Twitter impersonation, both fell precipitously. Major stock indices were then rising during a market surge.

    Another imposter mocked Elon Musk’s electric car company Tesla by mimicking the blue subscription checkmark for paid subscribers. In a barrage of insulting tweets, a user whose name looked to be “@TeslaReal” claimed, “honestly the 53 per cent reduction in stock price doesn’t phase[sic] us. We are the ones who are most knowledgeable about Crashing.

    For marketers, the impact of so many changes to the Twitter platform is a significant challenge; several have already suspended their expenditure there.

    Some users who had already paid for the programme also reported that their freshly acquired blue checkmarks had vanished from their accounts.

    No one from Twitter was immediately available for comment. Musk was unavailable for comment right away.

    The removal of Twitter Blue verified comes as Musk and Alex Spiro, who is currently serving as Twitter’s top lawyer, are attempting to reassure staff, clients, and regulators that they will abide by all legal requirements and the terms of an earlier FTC consent decree.

    “I cannot emphasize enough that Twitter will do whatever it takes to adhere to both the letter and spirit of the FTC consent decree,” Elon Musk wrote in a company-wide email that CNBC was able to get on Thursday night.

    In a subsequent email, Spiro stated that his team had communicated with FTC officials on Thursday and that Twitter would soon be subject to the agency’s “initial forthcoming compliance check.” He made it clear that any violations would be the responsibility of Twitter, not “those who work at Twitter.”

  • Pakistanis buying 47% fewer cars due to rising prices

    Pakistanis buying 47% fewer cars due to rising prices

    Despite an increase from month to month in October, the total number of cars sold fell by 47 per cent to 39,700 units in 4MFY23 from 74,952 units as a result of increased prices, restrictions on auto financing and part imports, and high interest rates.

    However, the number of cars sold in October increased to 11,129 from 9,213 in September, a significant decrease from the 17,413 sold in October 2021.

    Assemblers have been allowed to hand over automobiles after the release of auto parts from the port as a result of the State Bank’s decision to increase the import quota, which led to a recovery in car sales as well as production in October.

    Honda Civic/City sales decreased to 6,416 units in 4MFY23 from 10,444 units during the same period in FY22, while Toyota Corolla and Yaris sales significantly decreased to 8,253 units from 19,214 units. Sales of the Suzuki Cultus and WagonR decreased from 11,454 to 6,779 units to 2,952 and 2,181 respectively. Sales of the Suzuki Bolan and Alto were unchanged at 1,469 and 13,464 units, compared to 4,012 and 20,773 units in 4MFY22.

    Jeep and pickup sales decreased by 45 percent, from 14,969 units in the same period last fiscal year to 8,234 units in July-October FY23.

    Additionally, the total number of tractors sold decreased by 47 per cent, from 17,386 units to 9,258 units, indicating a decline in agricultural activity.

    Compared to 2,011 and 184 units sold in 4MFY22, trucks and buses showed sales of 1,109 and 210 units, respectively.

    Sales of two and three-wheelers in the country fell dramatically, from 629,212 units in the same period last year to 412,111 units in the first four months of the current fiscal year.

  • PSX surpasses 43,000-mark on hopes of inflows from friendly countries

    PSX surpasses 43,000-mark on hopes of inflows from friendly countries

    The news that the country will get a financial package from friendly countries led to another bullish session at the Pakistan Stock Exchange on Friday.

    The benchmark index started the pre-Friday prayer session in the green, according to Arif Habib Ltd, but lacklustre activity caused the index to drop 96.39 points at the end of the session.

    However, as trading started again, the benchmark recovered. Following Finance Minister Ishaq Dar’s announcement of a $13 billion package from China and Saudi Arabia, investors started looking for equities. While significant activity was seen in the oil and exploration sector, volumes overall remained stable.

    The KSE-100 index settled at 43,092.95 points, up 191.68 points or 0.45 per cent from the preceding session.

    The trading volume decre­ased 20.8 per cent to 232.8m shares while the traded value went down 25.4 per cent to $34.4m on a day-on-day basis.

    Stocks contributing significantly to the traded volume included Cnergyico PK Ltd (21.1m shares), WorldCall Telecom Ltd (17.9m shares), TPL Properties Ltd (15.1m shares), Pakistan Refinery Ltd (14.8m shares) and Oil and Gas Development Company Ltd (12.5m shares).

    Sectors that contributed to the index performance were exploration and production (129.3 points), technology and communication (98.4 points), oil marketing (22.8 points), tobacco (13.1 points) and food and personal care products (12.8 points).

  • Domestic users to experience 16-hour gas load shedding during winter

    Domestic users to experience 16-hour gas load shedding during winter

    Due to the requirement for a $37 per mmbtu subsidy, the federal government is unable to guarantee that domestic customers of both Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) will have uninterrupted access to eight hours of gas per day during cooking hours in the upcoming winters.

    A parliamentary panel was informed on Thursday by Captain Muhammad Mahmood (retired), Additional Secretary (Incharge) for the Ministry of Energy’s Petroleum Division, that neither the government nor the gas firms had the resources to severely subsidise the domestic gas consumers. The secretary said, “We can’t supply gas at $3 per MMBtu against a current purchase of $40 per MMBtu.”

    He made it clear that every effort will be taken to guarantee household gas supply for three hours in the morning, two hours in the afternoon, and three hours in the evening.

    In response to a query, he stated that the Sindh gas load-shedding was a result of the allocation of gas between home and industrial uses. He claimed that in Sindh, 60 per cent of gas was delivered to industry and the remaining 40 per cent to homes and other sectors, in contrast to KP where 80 per cent of gas was supplied to domestic users.

    Imran Maniar, the managing director (MD) of SSGC, informed the committee that Balochistan contributed 110 mmcfd while Sindh produced 740 mmcfd.

    He claimed that due to the 10 per cent annual depletion of domestic gas reserves and the 100 per cent dependency on imported gas in ten years, there will be no gas in the upcoming winter.

    He stated that it was anticipated that in three to four years, LNG prices would decline significantly and the government would be able to finish building the new LNG facilities as planned.

    Due to the high expense of security and the country’s continued political unrest, new corporations were not expressing interest in oil and gas exploration. “The investors are waiting as they would not invest when new general election will be held next year,” he said.

    He added that due to sanctions, the anticipated import of gas from Russia or Iran was not feasible.

    In response to a question, the secretary stated that the cost of storing gas in the nation was high and that industrialised nations lacked such facilities; nonetheless, during recent gas crises, Germany and England began developing gas storage facilities.

    The previous administration authorised a draught of a new Pakistan Upstream Regulatory Authority to separate policy from regulation, according to Director General (DG) PC, Petroleum Division Kashif Ahmed.

    Provinces disagreed with a few of the proposed regulatory authority’s provisions, though. He stated that the authority would have four members from four different provinces and one vice chairman. “After getting approval from the competent forum, it will take three to four years for the establishment of the regulator for the upstream sector,” he added.

  • Toyota to reveal all-new 5th generation Prius next week

    Toyota to reveal all-new 5th generation Prius next week

    The next generation of the hybrid hatchback will be revealed at the Los Angeles auto show next week, and these teasers give a glimpse at its styling.

    If the brand-new Toyota teaser images are any indication, the Prius hybrid is about to undergo a significant overhaul.

    The images were posted on Toyota’s Japanese social media accounts and feature the words “Hybrid Reborn,” which could refer to the company’s first hybrid hatchback. The images also confirm a reveal date of November 16 for the new model.

    The fifth generation of the Prius will soon be released, and its outline is pretty obvious. But the recognised form, which aids in the vehicle’s aerodynamic profile, might get some fresh details. The headlamp in one of the teaser images resembles the design language on numerous Toyota concept cars, including some of the brand’s most recent EV concepts and the Toyota Crown compact crossover, also known as the Sport-type in Japan.

    Although we are unsure of what to expect from the new hybrid Prius powertrain, we can be confident that it will aim for better fuel economy than the present model, which can get up to 56 mpg combined according to the EPA. In comparison to the outgoing car’s 25-mile range on a fully charged battery, the Prius Prime plug-in hybrid is set to make a comeback and should have a larger battery pack.

    Next week will bring further details as Toyota gets ready to unveil the redesigned 2023 Prius in Los Angeles auto show.

  • ‘We do not comment on rumours,’ Telenor Pakistan responds to reports suggesting that the company is being sold for $1 billion

    ‘We do not comment on rumours,’ Telenor Pakistan responds to reports suggesting that the company is being sold for $1 billion

    Multiple online news outlets reported that Telenor, a telecom operator, intended to sell its business in Pakistan for $1 billion, which ignited a debate on social media.

    There is a lot of uncertainty about the authenticity of this news since a few Telenor employees have also denied the reports and asserted that they are fake.

    The company has yet to make an official announcement in this regard, with the exception of responding to a Twitter user’s question who asked whether these reports are legit. “We do not comment on speculations and rumours,” Telenor replied. 

    According to Bloomberg, Telenor is moving forward with plans to sell its business in Pakistan, which might be worth $1 billion, according to people familiar with the situation.

    The Norwegian telecommunications operator is working with Citigroup Inc. and will welcome first-round bids for the firm later this month, according to insiders.

    Telenor announced in July that it would conduct a strategic assessment of its Pakistan unit after incurring a 2.5 billion-krone ($244 million) loss on operations in the growing market.

    The people predict that strategic customers with operations in Pakistan from the Middle East and Asia will express interest. They stated that there is no assurance that the ongoing discussions would result in a transaction. Telenor and Citigroup representatives declined to comment.

    Telenor’s stock increased as much as 2.4 per cent on Wednesday. The company’s market worth increased to $13 billion as the stock rose 1.8 per cent in Oslo.

    In October, Telenor said that the third quarter’s underlying profitability in Pakistan decreased by 22 per cent, in part as a result of the nation’s growing energy costs. This had a negative effect, but it was partially offset by a gain from Pakistan’s repeal of a SIM tax.

    One of Telenor’s four Asian countries, Pakistan, saw a gain of 600 million crowns ($57.79 million), which was related to a court ruling on the applicability of tax on SIM cards for mobile phones from 2014 to 2020.

    In recent years, Telenor, which serves 175 million users across eight countries in the Nordic region and Asia, has worked to reduce expenses and increase cash flow in order to fund greater dividends and 5G expenditures. The company’s greatest efforts to date have involved attempts to consolidate markets in South-East Asia, including a $8.6 billion acquisition in Thailand and a $15 billion merger to create a telecoms leader in Malaysia.

    Telenor Asia, which also manages the company’s operations in Pakistan and Bangladesh, is in charge of both units.

    During the first three quarters of 2022, Telenor Pakistan’s income decreased by about 8 per cent in Norwegian Kroner terms but increased by 4 per cent in Pakistani Rupee terms, staying at NOK 3.390 billion (Rs82.57 billion) as opposed to NOK 4.270 billion (Rs79.36 billion) during the same period of 2021.

    In comparison to NKO 1.425 billion (Rs26.68 billion) during the same period last year, or in 2021, Telenor Pakistan reported total revenues of NOK 1.320 billion (Rs29.53 billion) during the third quarter of 2022. This represents a 7.5 per cent decline in NOK terms and a 10 per cent increase in rupee.

    Intense floods throughout the quarter had a negative impact on the Group’s business in Pakistan. Consumers’ purchasing power was impacted by the circumstance, which also resulted in network failures and raised prices.

  • SBP reduces cash-carrying limits by 50% for international travel

    SBP reduces cash-carrying limits by 50% for international travel

    The State Bank of Pakistan (SBP) said in a statement that the cash-carrying limitations on foreign currency for international travel have been cut in half to $5,000 (or equivalent in other foreign currencies) each visit and $30,000 per year for individuals aged 18 and over.

    Under-18s (minors) will be subject to a 50 per cent reduction in both ceilings, or $2,500 per visit and $15,000 per year.

    The cap on withdrawing foreign currency in cash, however, will continue to be $1,000 per visit and $6,000 per year for visitors to Afghanistan.

    Now, overseas debit and credit card transactions are also subject to the same annual cap ($30,000).

    To curb speculation and the grey market, the SBP and the Federal Investigation Agency (FIA) have independently decided to work together against illegal foreign exchange businesses.

    The yearly trip cash limits, according to the central bank, won’t take effect until January 1, 2023, but the per-visit limits will be effective right away.

    A $30,000 yearly restriction on overseas transactions was also imposed by the SBP after it discovered that debit and credit cards were being used for transactions that “are not linked with the profile of the individual or are meant for commercial purpose.”

    SBP advised banks to “ensure that the use of debit and credit cards for international transactions was aligned with the profile of cardholders and for their personal needs only”.

    “It is emphasised that the purpose of debit/credit cards is to facilitate individuals in making payments for transactions that are of personal nature. The limits on these cards as well as payments through them, both domestic and international, should therefore be aligned with the profile of the cardholder,” it said.

    It continued by stating that it was the customer’s duty to make sure that their annual quota was never exceeded. However, banks are required to track these caps for every person on a combined basis.

  • Pakistan has sufficient petrol and diesel to meet domestic demand: Petroleum Division

    Pakistan has sufficient petrol and diesel to meet domestic demand: Petroleum Division

    The Petroleum Division said on Tuesday that the country has sufficient petrol and High-Speed Diesel (HSD) in stock to meet domestic demand after allowing Oil Marketing Companies (OMCs) to recover Rs10 per litre on HSD for the next two months (November-December 2022) by raising the premium limit to $15 per barrel.

    The OCAC had cautioned the federal government about a likely shortage of petrol and HSD in the coming days due to limited imports and limited local availability.

    According to the OCAC’s letter to the Oil and Gas Regulatory Authority (Ogra), the gap is due to limited supply and excessive premiums on fuel stocks on the international market.

    The Economic Coordination Committee (ECC), led by Finance Minister Ishaq Dar, approved the summary proposed by the Ministry of Energy on Friday (Petroleum Division).

    The ministry aimed to secure sustainable HSD imports for November-December 2022 by loading the country’s risk factors of $6 bbl, with an upper limit premium of $15 to the OMCs for pricing computation.