05262016Thu
Last update: Thu, 26 May 2016 09pm

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The federal government is likely to deduct 25 per cent of total outstanding power sector receivables - with the approval of Cabinet Committee on Energy - from the share of Sindh in the federal divisible pool. Chief Executive Officer (CEO), Hyderabad Electric Supply Company (Hesco) , Akhtar Ali Randhawa told Business Recorder that the company's receivables against Sindh government are about Rs 32 billion whereas the provincial government owes Rs 52 billion on account of Sukkar Electric Supply Company (Sepco) totalling Rs 84 billion.

The government is expected to impose in budget (2016-17) a 10 percent sales tax on the import of newsprint, increase sales tax from 5 to 10 percent on the ingredients of poultry feed and enhance sales tax from 10 to 17 percent on the import of plant and machinery not manufactured locally.
The Federal Board of Revenue (FBR) is likely to abolish 16 percent Federal Excise Duty on banking services to avoid duplication of taxes on banks in coming budget (2016-17). It is learnt that the FED on banking services may be abolished in line with the FBR's policy to avoid duplication of taxes on a specific sector/industry.
Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan informed the Public Accounts Committee (PAC) that the Board is doing its homework against the Pakistanis who have been named in the Panama Papers but it cannot take any action under the existing laws.
Eurozone ministers reached Wednesday a vital deal to unlock urgent cash for Greece but analysts warned promises to tackle the country's debt mountain are sketchy, spelling trouble further down the road. The agreement unlocks 10.3 billion euros ($12 billion) in bailout cash that Greece needs to repay big loans to the European Central Bank (ECB) and International Monetary Fund (IMF) in July, having already fallen behind in paying for everyday government payments and wages.
The International Monetary Fund said Wednesday that it was not ready to add its funds to the EU rescue program for Greece, saying debt relief for Athens still needs to be detailed. Speaking after a deal was reached for the release of more European Union funds to Greece, a senior IMF official said the Fund hoped that EU creditors would be able to meet its conditions on debt relief to join the bailout by the end of this year.
Stocks remained bearish Wednesday. Equity analysts called it "pressure in a pre-budget rally" that kept equities in the red. The KSE-100 index shed 83 points or 0.23 percent to close at 36,499 compared to Tuesday's 36,582 points. The volatile benchmark index moved both ways to hit the intraday high and low of 36,767 and 36,483.