Finance Ministry re-evaluating capital gains tax mechanism

KARACHI: The Finance Ministry is re-evaluating the mechanism to implement the capital gains tax on shares’ trading, said sources in the Federal Board of Revenue (FBR).

In February, the Finance Ministry and members of the Karachi Stock Exchange (KSE) reached an agreement under which capital gains tax would be imposed from July 1, but the rate of tax was not disclosed.

SBP limits maximum financing to Rs1bn

The State Bank of Pakistan (SBP) on Monday restricted, with immediate effect, maximum financing limit to Rs1 billion for a single export-oriented project under the Long-Term Financing Facility, according to a statement issued here on Monday.

The decision was taken in view of growing demand, diversify financing and risk, besides accommodating large number of borrowers, the statement said. Since the initiation of Long-Term Financing Facility in 2008, introduced to facilitate export growth, there was no bar on the maximum financing limit for a single borrower.

Auto financing picks up, but banks remain cautious

KARACHI: After a two-year gap, banks have started reviewing their policy on auto finance and have slightly increased auto financing with stringent conditions, said Atif Zafar, auto analyst at JS Research.

Car sales were improving and one of the reasons was that auto finance along with restoring economic confidence had reduced interest rates and seasonal effects, he added.

Auto finance was at its peak during 2006-2007 and its share in car sales was 70 per cent to 75per cent, however in the later years it was almost stooped due to higher interest rates, and most importantly, auto finance default rate was very high and recovery rate was very low which forced banks to do critical review of their auto finance product, he said.

SBP amends consumer financing regulations

Friday, January 01, 2010
KARACHI: The State Bank of Pakistan after review of Prudential Regulations for Consumer Financing and feedback of the stakeholders has made amendments in the regulations.

According to SBP circular addressed to all banks/DFIs here on Thursday, the following amendments will come into effect immediately.

Financial assistance to improve Pak economy: IMF

WASHINGTON: The financial assistance to Pakistan by IMF and other financial donors will help bring improvement in the economic condition of the country, IMF's director of external relations Caroline Atkinson said Saturday.

Speaking about Pakistan here at a press conference, Caroline Atkinson said Pakistan is receiving abundant financial assistance from different organizations which holds particular significance for its economy.

“Pakistan had faced a number of problems in the past and that is why it has earned the support of the financial institutions including IMF,” she said, adding, “This assistance will provide a push to the economy of Pakistan.”