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Money Market, Forex and General News 30-07-09

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MONEY MARKET

Money Market opened at 13 percent. Later on SBP conducted OMO and injected Rs 11 billion for two days in the market @ 12.63 percent. Money closed at 12 percent.

FOREX

Inter bank opened at 83.15 & 83.25.Rupee depreciated to 83.35 as demand pressures remained persistent in the market. Market closed at 83.20 & 83.25

GENERAL NEWS

SPI for the week ended 23 Jul-09 posted a surge of 3.3% MoM. Although MoM inflation remained in the positive zone mostly since FY01, the quantum of increase in recent period is concering. In terms of CPI, the dominant factor of higher base will persist till Dec- 09, however, factors including 1) electricity prices 2) int'l oil and other commodity prices and 3) expected price hikes in Ramadan season, have a considerable capacity to offset the base impact.

Govt. of Pakistan is planning to release PkR 20 bn in the first week of August to retire small portion of the circular debt in an effort to clear the entire circular debt by the end of calendar year 2009. The circular debt issue was severed as power companies build up huge payments for the fuel to oil & gas marketing companies which in turn has brought liquidity crunch to refineries and exploration companies threatening the continuity of fuel supply to power companies. In an another step, Pakistan Electric Power Company (Pepco) was also allowed to obtain loans from commercial banks to meet its financial obligations on account of power generation in order to ease off some pressure.
Source: NBP Treasury

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posted @ 12:47 PM, ,

Money Market, Forex and General News 29-07-09

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MONEY MARKET

State Bank conducted auction of Treasury Bills today in which bids for three and six months were rejected while cut off rate for one year bill came at 11.8769 percent. Market went aggressively to buy one year bill with participation of over Rs 99 billion out of aggregate participation of Rs 116.90 billion but Central Bank accepted only Rs49.350 billion.

FOREX

Pakistani Rupee remains under pressure vs. the greenback amidst heavy buying for oil import payment. Dollar has crossed PkR 83 psychological mark as the central bank had earlier asked the oil companies to buy currency from the interbank market discontinuing the previous practice of central bank arranging the currency for oil
imports. In FY09, oil imports totalled USD 9.5 bn (28% of country’s imports) making up the single largest category of imports. However, any delay from IMF in the release of 3rd tranche of the loan can violate the relationship as proposed by relative purchasing power parity (RPPP).

GENERAL NEWS

Pakistan that is under financial assistance through loan agreement with IMF has informed the lending authorities that the country cannot withdraw subsidies all of a sudden thus the government would provide subsidy of PkR 55bn to people friendly sectors that include power sector , fertilizer sector etc. The government feels that it is not practical to eliminate subsidy all of a sudden as it would seriously affect the workability of the sector. Feed-stock gas, a key raw material for urea production, is heavily subsidized that ensures urea’s affordability to framers thus keeping price of wheat and other essential commodities at affordable level.

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posted @ 2:59 PM, ,

ACA (England and Wales) - Qualification Road Map For ICAP Members

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Route to ACA (England and Wales) Membership for ICAP Members is as follows;

Apply for exemption from 11 of the 12 Professional Stage exams. The ICAEW have agreed to waive all fees of these exemptions. The availability of a fee waiver will be reviewed later this year, but is guaranteed to stay until 31 December 2009 (this is for applications received and agreed by ICAEW before this date). For exemptions in these 11 subjects ICAEW can only accept hard copy applications. To get the hard copy of it click here

Register as an ACA independent student. For both exemptions and student registration ICAEW can only accept hard copy applications. The application to register as an independent student can be found here

Once the registration and exemptions have been completed it is then just a matter of sitting, and passing, the 4 exams - and the online ethics module.

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posted @ 4:06 PM, ,

Money Market, Forex and General News

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MONEY MARKET

The Central Bank will conduct a Treasury Bill auction tomorrow.The target amount is PkR.45 billion. There is a strong expectation of increase in the cut-off yields.

FOREX

Inter-bank opened at much higher level then yesterday at 82.80 & 82.90.Local currency was seen under immense strain as rupee breached psychological level of “83” and shot up to 83.24. Demand pressures seem to have deflated the rupee strongly against USD. Finally Rupee shed thirty five basis points to close at 83.15 & 83.25.

GENERAL NEWS

The MoC has announced the Trade Policy for FY09-12 with the objective to attain a sustainable economic growth through exports.Although, there are number of measures mentioned in the policy, the most significant one is the compensation provided to cement exporters in terms of inland freight (though the quantum is not known). On the textile front, value addition in cotton from USD 1,000 to USD1,500/bale till 2012 seems challenging due to the supply side issues at the local front along with the demand issues with major trade partners.

The government had paid Rs 66.00 bn to Oil Marketing Companies in FY09 for payment against subsidy on petroleum products (Petroleum Development Claims – PDC). The government loaded heavy PDC on diesel and gasoline in 1HFY09 after oil prices spiked towards US$147/bbl. However, softening of crude prices in 2HFY09 enabled the government to recover the subsidy through Petroleum Development Levy (PDL). Payment against PDC remained outstanding despite heavy taxes. Reportedly the government is still to pay PRs11bn to OMCs under PDC.

Source: NBP Treasury

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posted @ 10:38 AM, ,

Money Market, Forex and General News 27-07-09

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MONEY MARKET

Money market opened at 10.75 percent. Overnight repo rates bottomed at 9.25 but later on market tightened to 13.50 and closed at the same level.

FOREX

Inter bank opened at 82.50 & 82.55.Persistent demand pressures depreciated rupee to 82.70.After losing thirteen basis points at bid and offer, market closed at 82.63 & 82.68.

GENERAL NEWS

Government has projected Exports growth of 29 percent in next three years while growth target for fiscal year 2009-10 is set to be six percent Exports target for FY-09 was set at $22 billion initially which was revised later on but even then target was missed by sizeable amount and total exports managed to reach just $17.781
billion. Moreover Trade Policy would concentrate on four major issues including establishment of a hedge fund to counter any adverse revision in interest rates, insurance of foreign buyers, availability of credit to industry and commitment of Wapda to supply power to industrial sector.

Government would roll over loan of Rs 3 billion taken from consortium led by NBP for Financial Improvement Plan (FIP) of Karachi Electric Supply Corporation KESC).Government had committed to finance Rs 13 billion through Public Sector
Development Program (PSDP).However due to budgetary constraints government arranged Rs 10.698 billion through PSDP while rest was financed through bank led consortium, which was to be paid off by October 2008.Even though the loan is over due,
payment period has now been extended to October 2009 with mark up of 6Month KIBOR plus 100 basis points.

Source: National Bank - Treasury Management Group

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posted @ 10:45 AM, ,

Names of Qualified Chartered Accountants-Summer 2009

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  1. MEHDI RAZA JAVA
  2. MUHAMMAD ASIF KHAN
  3. MUDDASAR KHALID
  4. KHIZAR HAYYAT
  5. AMJAD MUSTAFA
  6. ZAHID HUSSAIN
  7. ALI ASGHAR
  8. WAJAHAT ALI KHAN
  9. YOUSUF ALI
  10. SHAFIQ UR RAHMAN
  11. SAJJAD AHMAD
  12. SYED WAJAHAT AHMAD
  13. MUHAMMAD FAHAD
  14. ZAKRIA HUSSNAIN
  15. FAISAL AFTAB AHMAD
  16. FUAD HAIDER SYED
  17. NAEEM AHMAD KHAN
  18. SHEHZAD
  19. IMTIAZ JALEEL
  20. BILAL HUSSAIN
  21. IMRAN ASAD
  22. SHAHID SAUD-UL-HASSAN
  23. NADIA SALEEM
  24. SHOAIB MUHAMMAD KHAN
  25. USMAN ISHAQ RAJA
  26. AFSHEEN SHAKOOR
  27. ASIF MAHMOOD
  28. ABDUL RAHMAN KHAN
  29. MUHAMMAD MUBASHIR FAROOQ
  30. MUHAMMAD AZEEM
  31. ASIF AHMED
  32. TALHA HASSAN JAFRI
  33. KAMRAN UZ ZAMAN KHAN
  34. NAVEED KAMRAN
  35. YASIR SAEED KIRMANI
  36. NIDA SALAHUDDIN
  37. MUHAMMAD TARIQ RAFIQUE
  38. KHURRAM SHAHZAD
  39. MUHAMMAD USMAN TAHIR FAROOQI
  40. USMAN SADDIQUE
  41. SABOOR SADIQ RANA
  42. HUMAYUN GUL
  43. MUHAMMAD FAHAD PARVAIZ
  44. HAFIZ MUHAMMAD ARSHAD
  45. FAUZIA RASHID
  46. SAQIB IBRAHEEM
  47. SYED ATIF GUL SHAH
  48. MUHAMMAD SAQIB IQBAL
  49. SYED MUHAMMAD HUMAYUN JAMIL
  50. MUHAMMAD ADIL ASHRAF
  51. FARYAD ALI
  52. OSAMA BIN SHAUKAT
  53. MUDASSIR HABIB KHAN
  54. FAISAL NAEEM
  55. MUHAMMAD HASNAIN RAZA
  56. SYED ALI AZHER HASANI
  57. MADIHA TAJ SIDDIQUI
  58. ALI RAZA
  59. MUHAMMAD MUJTABA AHSAN
  60. ZIAD BIN WASIM CHOWDHREY
  61. MUHAMMAD MAJID
  62. TAHIR SHAH
  63. MUHAMMAD YOUSUF
  64. MOHSINA AKRAM
  65. AHMAD RASHID
  66. JAWAD ALI
  67. SAMIA HUSAIN
  68. SYED MUHAMMAD SHADMAN
  69. AMBREEN MUKHTAR
  70. AHMED HASSAN ALI KHOJA
  71. SALMAN SALEEM
  72. MUHAMMAD SAAD KASMANI
  73. SYEDA SAFURA FATIMA
  74. FARWA SADIQ
  75. SYED HUZAIFA HAMID
  76. MOIZ MANSOOR
  77. RIFFAT JABEEN
  78. ASIF MAHMOOD
  79. BEENISH MALIK
  80. AHMAD FARHAN ZAFAR
  81. MARYAM TAHIR
  82. SUMAIRA YASIN
  83. ANAS IQBAL
  84. MUHAMMAD JUNAID
  85. ABDUL SATTAR SHAIKH
  86. MUHAMMAD HAMED
  87. NOUMAN SHAHZAD USMANI
  88. MUHAMMAD FAKHIR
  89. BASIT SAMEER
  90. ASAD SARWAR
  91. UZAIR ANJUM
  92. MUHAMMAD ARQAM
  93. MUHAMMAD YOUSUF IMTIAZ
  94. HUMERA HAYAT
  95. MUHAMMAD JEHANZEB
  96. SHOAIB AHMED SHAMIM
  97. ALI FAIZAN KHAN
  98. AAMIR SHAUKAT HUSSAIN
  99. SAAD SIDDIQUI
  100. AMEETAB
  101. SALIMA NADIR ALI
  102. UMAIR SUALEH
  103. ALI ATHAR
  104. IMRAN ULLAH KHAN
  105. MOHAMMAD ZUBAIR KHAN
  106. MUHAMMAD SHAHRAM BUTT
  107. NAVEED SAIFUDDIN AKBARALLY
  108. AYESHA FATIMA
  109. NAVEED ABDUL HAMEED
  110. SOHAIB HANIF
  111. ZEHRA
  112. AMMAR ALTAF MOUSANI
  113. AQEEL DALAL
  114. RAJA MUHAMMAD WAQAS GUL
  115. SAADIA MUSHTAQ
  116. HINA ASHRAF KHAN
  117. MUHAMMAD SUFYAN
  118. MATEEN SADIQ
  119. MUZAMMIL HASSAN FARHAN
  120. GHULAM MOHIYUDDIN
  121. SALMAN KHOJA
  122. MUHAMMAD MAJID KHAN
  123. SHAHID ANWAR SHAH
  124. QAISAR SOHAIL
  125. MUHAMMAD ARIF SIDDIQ
  126. NIBRAS MASOOM
  127. FAISAL TARIQ
  128. BILAL KHALED
  129. MALIK AMIR AHMED
  130. MUHAMMAD WAQAS HASSAN
  131. SARAH ANWER
  132. MUHAMMAD SHOAIB SIDDIQUI
  133. ASHFAQ HASAN KHAN
  134. OMER RAFIQ SHEKHANI
  135. NAVEED ARIF
  136. SAFAR ALI
  137. MUBASHIR UL HAQ
  138. ABDUL QADIR
  139. ASGHAR OMAIR
  140. RAHEEL LALANI
  141. FAHAD AHMED
  142. ROHAIL AZIZ
  143. SAJJAD HUSSAIN
  144. MUHAMMAD FAIZAN ASLAM
  145. UHAMMAD UMAIR ARIF
  146. SAAD JAHANZEB KHAN
  147. MOHAMMAD FARID AHMED MEMON
  148. AMBER
  149. DUR E NAYAB HUSSAIN
  150. ABDUL RAUF ALI KHAN
  151. MUHAMMAD SHAHID ASLAM
  152. MAJID ASGHAR ALI
  153. FARAZ HUSSAIN
  154. MAHWISH SARFRAZ SAIFY
  155. ABID ALI
  156. SHAH RUKH MEMON
  157. SYED KAZIM RAZA
  158. TAHIR SARTAJ
  159. RUKHSAR AHMED
  160. MUHAMMAD FARAZ NASEER
  161. ANUM NASEER
  162. SHARIQ EJAZ
  163. SHUMAILA
  164. SAMREEN
  165. SUMERA
  166. WAQAR ALAM
  167. MUHAMMAD UMAIR ISMAIL
  168. SADIA YASMIN
  169. ZEESHAN RAUF
  170. ADNAN ASLAM
  171. MOHAMMAD AMIN GHULAM
  172. TAHIR HAMEED
  173. SYED YOUSUF HASAN
  174. AYESHA ABDULLA
  175. KULSOOM FATIMA KHALID

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posted @ 9:47 AM, ,

Job Placement - ICAP

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Only for ICAP Members
As desired, ICAP has formally initiated the process of collecting CVs.This is the first time ICAP has started it and this will grow as we go along and would then assess what electronic solutions need to be in place. i.e Web Portals etc. Recommendations to align the process as per your requirements will be seeked at a later stage. Especially to consider is the process to be adopted to capture the job openings as informed by our Expatriate Members and informing the same to a suitable candidate.

The details are as follows:

Process


  1. ICAP will segregate them and before sending it for a particular job opening/ assignment they will touch base with the individual.

  2. You are required to send the CV by email by indicating the nature of work, job or assignment you are interested in and also send the following details;

  3. If you are looking for a job, whether you have any preference for working in profession or industry (or any specific sector of industry).

  4. If you are interested in training or teaching or research, the subject(s) and timing (part time or full time).

You may send the detail at following this email address

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posted @ 10:40 AM, ,

Fraud Detection And Deterrence - An Internal Auditor's Perspective

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When a fraud comes to light, the typical reactions range from asking how it happened, what the loss is, who are involved, to why it had not been spotted earlier.

Public vs Auditors' Expectations in Fraud Detection

The public tends to expect auditors to detect frauds in the course of their work. Auditors however see it as unrealistic to expect them to scope their audits to detect fraud as well. They focus their work on areas with direct or indirect impact on a company's bottom line e.g. Plugging revenue leakages, recovering overpayments, improving internal controls, enhancing corporate governance practices, etc. Fraud discovery is mostly not the focus of their procedures. They scope their work and review transactions based on samples. A fraud, particularly if it is not massive, might not be visible from samples and normal audit procedures. Auditors do not check every transaction. Even if they do, some clever collusive frauds (involving two or more persons, usually an employee and an outsider like a supplier) would probably go undetected.

Recent surveys have shown that the majority of frauds were committed by insiders. The management of an organization should therefore be vigilant that their operating environment is not conducive to fraud.

Environments Conducive to Fraud Activities

Environments that are conducive to fraud include the following:

High-growth, fast-paced organization

It is common to find that controls are secondary where employees are under pressure to grow the business, especially that of its overseas locations. Often, in such an organization, systems and controls do not adequately keep pace with the organization' s growth.

High incidence of management over-ride

Where over-ride of policies and procedures by a manager becomes rampant, the possibility of fraud and abuse increases because of compromise in internal controls. The attitude in such organizations towards internal controls is generally poor.

Employee highly protective of his or her areas of responsibility

The employee's tactic is usually to "put-off and intimidate" anyone prying into his or her areas of responsibility. The intention is to discourage further questions. There is normally an air of resistance and impatience when dealing with such an employee

High concentration of control in one person

Even though it might appear that responsibilities of an area are split organizationally, there is, in reality, one central person who is in control. He is the chief who directs. The other employees merely perform their functions in a cursory manner. The other employees are reluctant to answer any queries and would refer to the chief for answers.

General lack of segregation of duties

In today's IT-driven processes, it is common to find an employee performing what auditors describe as "conflicting or incompatible duties". A simple example is a human resource person who maintains employees' pay records also processs the payroll. While it might be more efficient (and cost-effective) to have the two functions done by the same individual, it increases the risk of abuse by the employee concerned.

The obliging IT department

The IT department that earnestly obliges its internal customers might unwittingly end up helping a fraudster in his or her activities. In such incidents, the fraudster would ask for program and systems changes. In form, the changes are to help him or her to be more efficient and effective, but, in intention, the changes are to aid and cover-up his or her fraudulent activities.

Fraud Deterrence Measures

The starting point to mitigate the risk of fraud is to have stated organizational policies and procedures and build detective and preventive controls into the procedures.

The logic in fraud deterrence is that employees who perceive that they will be caught are less likely to commit it. Therefore internal controls can have a deterrent effect only when employees perceive that such controls exist for the purpose of uncovering fraud.

It follows then that an organization should increase the perception of detection. Such steps include the following:

Employee education

Employees should be given anti-fraud training, or at the very least, basic fraud awareness. In this way, they become the eyes and ears of the organization and with the education, will be more likely to report possible fraud activity.

Fraud policies

Having such a policy stating clearly the organization' s stand and how it will deal with fraud perpetrators would send a clear message to employees of the organization' s zero-tolerance for anyone who commits fraud.

Analytical review

This measure is particularly beneficial to smaller businesses where the impact of fraud activities is frequently significant to the bottom line. The effectiveness of this measure would increase if the company has a policy of job rotation and enforced annual leave. Because many frauds require continuous manual intervention by the perpetrator, the chances of uncovering fraud activities are high when his or her job is being rotated.

Surprise audits

The threat of surprise audits, especially in currency-intensive businesses, would be a strong deterrent to fraud compared to normal audits that are announced in advance, giving fraud perpetrators time to cover their tracks.

Conclusion

There are many more scenarios that pose high risks of fraud and much more an organization can do to detect and deter fraud. The point is for management to be vigilant, to recognize probable areas and remain conscious of fraud possibilities when going about their work. Being aware and taking the necessary preventive and corrective actions could well deter or avert a fraud.

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posted @ 10:56 AM, ,

Money Market, Forex and General News 22-07-09

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MONEY MARKET

Money market opened at 13.25 percent and topped at 13.75 percent. Due to liquidity crunch, Central Bank conducted Open Market operations (Rev-Repo) for three days. The amount accepted was PkR. 18.4 billion at 12.61 percent. As a result of that market went down and closed at 11.25 percent.

FOREX

Inter-bank opened at 82.05 & 82.10.Market remained calm and no drastic movement was seen either way. Rupee gained just two basis points at bid and offer to close at 82.03 & 82.08.

GENERAL NEWS

Since the last policy statement released on April 20th, market has priced another steep cut in policy rates in the debt market. This is reflected from the bullish bond, T-bill and KIBOR trends. All adjusted in the range of 100-150bps.

Fundamentally speaking macro imbalances are in corrective phase through inflation and twin deficit improving, whilst, economic growth has emerged as a prime victim
of the stabilization program.This can be reflected from contraction in LSM (14%) during April and flat private credit off take trend in the past twelve months.

On the basis of these, the balance of risk is clearly highlighting a steep cut in policy rate. However, other side of the coin is disturbing and questioning the steep cut. To be clear, government has planned ambitious development target on the basis of exaggerated tax and external financing mode.

Any slippage would definitely warrant a shift in monetary and fiscal transmission from neutral to aggressive. Hence, the key from here is the flow of external financing.

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posted @ 10:51 AM, ,

Online Vitamins Store

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These days especially in United Kingdom and Europe, people are very much conscious about their health. They are always looking for such products that help them out keep their health fine. Vitamins related medicines are one of those medicines which really help people to keep fit and fine. There are number of companies emerged in the market to provide health related medicines. However, I personally found Vitasunn Nutritionals one of the best among all which help you to buy vitamins in the UK. They bring more options to the market place than ever before.

You can buy vitamins in the UK through this site as it is the product of an ever-growing, active community of athletes, fitness professionals, nutritionists and fitness-minded individuals like yourself that seeks to integrate all of the best elements available with a firm commitment to the betterment of your health and fitness. They are managing one the best health supplements available worldwide. This is not only a source of buying vitamins but also answers health related questions and guide people towards their health and fitness goals.

Visit the neatly laid out site and see what they are offering and how. This is one of the best places to buy vitamins in the UK at very competitive price.

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posted @ 10:12 AM, ,

CRR and SLR

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CRR is Cash Reserve Requirement - need to be placed with SBP @ 5% of Demand & Time Liabilities (for both PKR and FCY).

SLR is Statutory Liquidity Reserve - required to be invested into SBP's prescribed securities (generally Govt. Securities) @19% of Demand & Time Liabilities. This is applicable for PKR only, as for FCY, is is 15% and is required to be placed with the SBP.

However, banks are not required to keep above 'PKR' related requirements against Demand & Time Liabilities with 'original maturity of 1 year and above.

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posted @ 11:42 AM, ,

New Round of Crisis Starting to Affect Banking Sector

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Signs of the "second round" of the global financial crisis have started to show on the Kingdom's banking sector, according to the Central Bank of Jordan (CBJ).

However, CBJ Deputy Governor Kholoud Saqqaf stressed that the sector is capable of overcoming the crisis due to strict monitoring and supervision policies adopted by the Central Bank, which she said were already in place even before the global economic slowdown.

Experts in Jordan, meanwhile, say that the CBJ should further tighten its supervision measures on banks and be prepared to act promptly to meet any challenges posed by the coming phase of the global economic crisis warned of in a recent report by the International Monetary Fund (IMF).

"The CBJ acts slowly towards the country's economy by adopting the 'status quo' policy," economist Yusuf Mansur said, describing the banking system in Jordan as "unhealthy" because it is highly concentrated and dominated by two or three banks.

The IMF report, issued in May, said although the direct effects of the global financial crisis on the banking sector in Jordan have been limited, enhanced financial policies and supervision will remain key in the period ahead.

In addition to tighter supervision, contingency plans for dealing with troubled banks should be developed and prompt corrective action frameworks should also be established to set the rules for government intervention, the IMF report indicated.

The IMF acknowledged that the CBJ has taken some steps in that direction, including instructing banks to raise their capital. The CBJ's deputy governor said the bank even does more than required.

For example, "the minimum capital adequacy ratio worldwide is 8 per cent, but the CBJ has set the minimum ratio in Jordan at 12 per cent to protect depositors and promote the stability and efficiency of the Kingdom's financial system," Saqqaf noted.

Recently, the CBJ cited the dissolving of the board of directors of Capital Bank as an outcome of its policy to better streamline the industry. It appointed an administrative committee to manage the bank for six months under its supervision, saying the measure was precautionary and temporary to rectify the situation of the bank's administration, pointing out that corporate governance issues were behind the decision.

Mansur described the central bank's move as "good" but said the CBJ was slow in implementing its supervision measures as violations at Capital Bank had been noticed three months earlier.

Economist Ali Tabbalat told The Jordan Times on Saturday that "the CBJ is on the right track but should keep a close watch on banks' corporate loans".

"Defaulted loans by companies are expected to increase due to the financial crisis as firms may have liquidity problems," Tabbalat added, noting that banks' strict lending policies would naturally have a negative impact on the economy, though these restrictions are "justified".

Meanwhile, Fahmi Abu Dayeh, chief economist at a local bank, said that the CBJ has shown sound supervision of banks and managed, as a result, to protect the banking system in Jordan.

The financial policies of the CBJ are effective enough, but should also include continuous follow-up on risk related to credit facilities, he said, indicating that monetary measures in Jordan are relatively sound, especially when compared to other countries in the region.

Jordan has taken steps to ease monetary policy in light of the fall in international commodity prices and the decline in domestic inflation, with the CBJ lowering policy interest rates by 150 basic points (bps) in three steps during late 2008 and early 2009. The CBJ also reduced reserve requirements by 300bps to 7 per cent.

The experts differed on the issue of strict lending policies.

Mansur said that banks have not eased their policies on credit facilities despite CBJ measures to encourage a flow of cash into the market, which he said has negatively affected development in the Kingdom.

"Banks lowered interest rates on deposits and in many cases increased them on credit facilities, thus increasing their own margins while starving the nation for credit," the economist noted.

However, Abu Dayeh, agreeing with Tabbalat, believes banks' lending measures, which he called "classical banking", are justified because they respond to risk management rules.

According to CBJ figures, credit facilities extended through licensed banks declined by JD179 million, or 1.4 per cent, standing at JD12,865 million at the end of April 2009 compared with its level at the end of 2008, while total deposits reached JD18.9 billion, an increase of JD875.6 million, or 4.8 per cent, over their level at the end of 2008.

Domestic liquidity was up at the end of April 2009, growing by JD643.8 million, or 3.5 per cent compared with its level at the end of the previous year, to total JD18.9 billion.

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posted @ 10:22 AM, ,

Online Certificate of Deposit Rates

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People are confronted with sever economic crisis these days. Purchasing power is getting worse day by day. Normally people are used to spend what they earned. However, after experiencing the outcomes of present economic turmoil, they started to think about saving for bad time. Where they should invest their money? It is a big question mark. There are number of companies emerged in the market which are offering returns on the investments. However, I personally found MonitorBankRates.Com and Cdars.Com the best among all.

Have a look at neatly laid out site and see what they are offering and how. This is one of the best sources of getting CD Rates on the internet. They offer a number of certificates of deposits including American Express CD rates, Capital Federal Bank CD rates, Mutual Bank CD rates, wilshire State Bank CD rates, Ally Bank CD rates, Melrose Cooperative Bank CD rates and many more.

Visit the aptly named site and see how Certificate of Deposit Account Registry Services are better for individuals. This is one of the most convenient ways to enjoy the access of full deposit account related services. I personally suggest to see how actually they work and what they are offering for brokerage clients as well.

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posted @ 9:43 AM, ,

Money Market, Forex and General Updates - 21-07-09

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MONEY MARKET

Money market remained tight on Tuesday as market opened at 13 percent, touched high of 13.90 percent and closed at the same point

FOREX

Inter bank opened at 82.10 & 82.15.Market topped at 82.20 but later on rupee gained some strength against US dollar and touched bottom of 82.05.Rupee gained ten basis points at bid and offer to close at 82.00 & 82.05.

GENERAL NEWS

Inflow of foreign portfolio investment continued for the consecutive fifth week and equity market witnessed net buying of USD 3.6 mn during the last week. During the current month the offshore investor remained net buyer of worth USD 8 mn at the equity market. The current trend in portfolio investment can be attributed to improving law and order situation, stability in local political scene and expectations on improvement in bilateral relations with India. Beside that signs of improvement in macro economic indicators of the country and expectations of good return can be the other reasons for offshore investor’s interest in the local equity market.

Pakistan’s fiscal policy continues to remain in a state of flux. Doubts have been raised on the tax revenue target of ~PRs1.5tr since the FY10 budget was unveiled. This combined with post budget amendments and extension of power subsidy point to a potential cut in budgeted PRs783bn development expenditure, if budget deficit is
to be capped at 4.9% of GDP for FY10E.

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posted @ 11:53 PM, ,

CA Final Result - ICAP

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ICAP is going to announce CA Final Result (Module-E and F) at Monday (27-07-2009). I wish all the best to my friends especially Labeeb Subhani, Muhammd Kamran, Fawad Haider, Noor-un-Nabi, Tehseen Iqbal, Faisal Raza, Ahsan and Ghulam Abbas.

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posted @ 11:08 AM, ,

Money Market, Forex and General News - 17-07-2009

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MONEY MARKET

Excessive interest from the banking sector in government papers has driven yields down and widened the spread between the discount rate and yields in FY09.Continuing inflationary pressures and a weakening PKR will likely limit the magnitude of discount rate cut,if any..

FOREX

Inter bank opened at 82.20 & 82.25.Dollar moved both ways as market continued the volatile trend. Market topped at 82.27 but eased down later and touched bottom of 82.10.Greenback shed fifteen basis points at bid and offer to close at 82.05 & 82.10.

GENERAL NEWS

The apex regulator in the country initiated an enquiry against 5 brokers whose trading rights were earlier suspended on the complaints of investors on the settlement of claims. These settlement issues are basically the fallout of crisis taking place towards the end of Calender Year 08 following imposition of floor on the market index.

The country’s current account deficit (CAD) has shrunk by 36% in FY09 to USD 8.86 bn as compared to USD 13.87 bn in the previous fiscal year. Prime reason for this shrinkage is fall in the oil and other commodity prices following global recession. Oil comprises highest proportion of the country’s imports. Another reason for falling CAD is the local economic slowdown and steep currency depreciation that led to decrease in the demand of imports. Given the fact that exports have not in any way contributed to the falling deficit, the country stands vulnerable to the commodity prices rising again post any global economic recovery signs.

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posted @ 11:26 AM, ,

Blogging is Like Building a Home

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Blogging is like building a home. You start putting things togather (working hard) and ultimately end up having a nice place. No?

{Via}

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posted @ 12:34 PM, ,

Money Market, Forex and General News - 16-06-2009

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MONEY MARKET

The MoF held an auction for T-bills on 15 Jul-09 borrowing Rs57bn against a target of Rs45bn. Compared to the last auction, cut-off yields for 3M, 6M and 12M T-bills declined by 156, 93 and 71bps to settle at 11.42%, 11.51%, and 11.54% respectively.
Significantly higher participation in longer term papers with relatively lower cut-off yields confirms our expectation of longer term instruments at low level yields going forward.

FOREX

Inter bank opened at 82.25 & 82.30.Market topped at 82.38 but no drastic swings were seen today. Market moved just two basis points to close at 82.27 & 82.32.

GENERAL NEWS

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posted @ 10:23 AM, ,

Most Recent Search Key Words of This Blog

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posted @ 10:53 AM, ,

Money Market, Forex and General News - 14-07-2009

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MONEY MARKET

The State Bank of Pakistan is scheduled to target a T-bill auction of Rs45bn on 15 Jul-09. A maturity of Rs15bn is also scheduled for the subsequent day, translating into a net outflow of Rs30bn from the money market. Current money market rates suggest the cut-off to be even lower this time round.

All indicators leading up to the Monetary Policy on 25th July point to a cut in the policy rate. CPI has receded by ~12ppt since its worst level in Oct-08 (25%), National Savings Scheme rates were recently slashed ~175bp.

FOREX

There was a lot of volatility in the interbank forex market. There was supply in the market which pushed the USD/PkR parity downwards.

GENERAL NEWS

YoY CPI declined to 13.1% in June-09 from its high of 25% in Oct-08. Likewise, period average inflation settled at 20.8% for FY09 (Jul-Jun) compared to 12% in FY08, 2) Pakistan received the highest ever remittances of US$7.8bn in FY09, 21% higher YoY 3) Trade deficit for FY09 was lower by 19% YoY to US$17bn. Meanwhile on a MoM basis, inflation and trade deficit were both higher by 100bp and 70% to US$1.8bn. Looking ahead, we expect YoY inflation to continue a downward trend (we do not rule out single digit CPI in Oct-09) primarily due to base effect whereas trade deficit is expected to contract further by 11% YoY in FY10E. However continued upsurge in commodity prices remains the key risk to both inflation and trade deficit.

KSE board may okay re-launching of deliverable futures in 10 scrips As a reaction to the dip in trading volumes at the bourses, the KSE is expected to table for BoD approval the proposal for relaunching deliverable futures at the KSE. In the initial stage, 10 scrips will be traded on the counter.

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posted @ 9:11 AM, ,

Money Market, Forex and General News - 13-07-2009

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MONEY MARKET

Money market opened at 10.50 percent. State Bank conducted OMO in which funds worth Rs 11 billion were mopped up from the market for three days at 11.0 percent.Consequently overnight rates went up to 13.90 percent and market closed at the same level as well.

FOREX

Inter-bank opened at much higher level i.e. at 82.20 & 80.25.Rupee continued the declining trend against USD and has shed ninety basis points since the beginning of current month. Rupee toppled to 82.45, day’s highest point. After shedding twenty basis points at bid & offer each, market closed at 82.40 & 82.45.

GENERAL NEWS

Sales of passenger cars and Light Commercial Vehicles (LCVs)during FY09 declined by 47% to 99,307 units as against 187,412 units in FY10 due to obvious reasons of local currency depreciation, high cost of auto financing due to high interest rates, political instability and law & order situation in the country during the outgoing fiscal year. On YoY basis cars and LCVs sales declined by 49.7% and 27.8% respectively. The high end car segment was less affected by the above mentioned factors and declined by 31% while 800cc and 1000cc segments declined by 57% and 67% respectively.

As a result, PSMC’s market share declined to 52% in FY09 from 62% in FY08 due to its heavy presence in the low end vehicles segment while INDUS and HCAR’s market share increased from 26% and 8% to 35% and 11% respectively during the same period.
Source: NBP Treasury

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posted @ 2:19 PM, ,

Takaful - Mutual Assistance Under Islam

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Saima Batool & Jafar Razi Khan

Meaning of Takaful

Takaful comes from the Arabic root-word 'kafala'- guarantee. Takaful means mutual protection and joint guarantee. Operationally, Takaful refers to participants mutually contributing to the same fund with the purpose of having mutual indemnity in the case of peril or loss.

Reference

Al Quran: ’Help (ta awan) one another in furthering virtue (birr) and Allah consciousness (taqwa) and do not help one another in furthering evil and enmity" al maidah: verse 2 (5:2).

Takaful is a form of mutual help (ta'awun) in furthering good/virtue by helping others who are in need/in hardship. Takaful provides a strategy of risk mitigation/reduction by virtue of collective risk taking that distributes risks and losses to large numbers of participants. This mitigates the otherwise very damaging losses, if borne individually.

Basic Elements of Takaful

o Mutuality and cooperation.
o Tabarru (contribution)
o Eliminates the elements of Gharrar,Maisir and Riba.
o Wakalah/Modarabah basis of operations.
o Constitution of separate "Participants' Takaful Fund".
o Constitution of "Shariah Advisory Board".
o Investments as per Shariah.

Main drivers of Takaful

o Piety (individual purification)
o Brotherhood (mutual assistance)
o Charity (Tabarru or contribution)
o Mutual Guarantee
o Community well-being as opposed to profit maximization.

Objections to Conventional Insurance are based on the Elements of:

o Uncertainty - Gharar
o Gambling - Maisir
o Interest - Riba
o Under Writing + Investment Profit belongs to the Company

Uncertainty - Gharar:

Conventional insurance contract is basically a contract of exchange (mu'awadat) i.e. buying and selling whereby policy (indemnity) is sold as goods, with the premium as the price or consideration. The consideration must be certain for an exchange contract. The amount to be paid is not known. The time it will occur is not known. Thus, it involves an element of uncertainty in the subject matter of the insurance sales contract, which renders it void under the Islamic law.

Gambling - Maisir:

The insured loses the money paid for the premium when the insured event does not occur. The company will be in deficit if claims are higher than premium.

Interest - Riba

"Allah has permitted trading and forbidden riba" (Al Baqarah 2 : 275) Insurance funds invested in financial instruments which contain element of Riba.

Comparing Takaful to Conventional Insurance

Takaful Models

Mudaraba Model

The surplus is shared between the participants with a takaful operator. The sharing of such profit (surplus) may be in a ratio 5:5 , 6:4 etc. as mutually agreed between the contracting parties. Generally, these risk sharing arrangements allow the takaful operator to share in the underwriting results from operations as well as the favourable performance returns on invested premiums.

Wakala Model

Cooperative risk sharing occurs among participants where a takaful operator earns a fee for services (as a Wakeel or Agent) and does not participate or share in any underwriting results as these belong to participants as surplus or deficit. Under the Al-Wakala model the operator may also charge a fund management fee and performance incentive fee.

Takaful Products

General Takaful - offers all kinds of non-life risk coverages products like motor takaful, marine takaful, fire takaful, home takaful, shop takaful, etc.

Family Takaful - offers life coverage.

Banca-Takaful - tailored coverages for banks.

Takaful Worldwide

The first ever Takaful company was established in 1979 - the Islamic Insurance Company of Sudan. There are now more than seventy Takaful Companies in over 20 countries. Takaful premium is 0.1% (USD3 billion in 2004) of the global insurance premium and is expected to increase to USD12.5 billion by 2015. It is claimed by certain quarters that the average growth rate is higher than conventional insurance companies. Non - Muslims are also increasingly opting for Takaful products for commercial benefits.

Foundations of Takaful in Pakistan

1949 - Declaration made in the Objectives Resolution adopted by the Constituent Assembly of Pakistan "Sovereign state of Pakistan is established to enable Muslims individually and collectively to order their lives in accordance with the injunctions of the Holy Qur'an and Sunnah".

1973 - The Constitution of Pakistan declares Pakistan as "Islamic Republic of Pakistan and Islam as the official religion of the state".

1985 - Objectives Resolution was made 'substantive' part of the constitution.

1983 to 1989 - The Council of Islamic Ideology held its sessions in order to survey the Islamic Insurance System.

1992 - The Council of Islamic Ideology submitted its report on Islamic Insurance System.

2000 - The Insurance Ordinance defines the term "Takaful" in Section 2 and provides for establishment of Takaful companies in the country.

September 2005 - Takaful Rules notified.

Takaful Prospects in Pakistan

In a country like Pakistan where 97% population is Muslim, the demand for insurance is increasing with the increase in per capita income. The personal lines insurance business (leasing, health, medicare) is also growing at a higher rate than other conventional classes. The government is also encouraging Islamic banking on sound footing and hence there are great prospects for Takaful in Pakistan.

Saima Batool teaches at the International University of Chabahar, Iran. Jafar Razi Khan is a doctoral student in Divinity at the Imam Sadiq University in Tehran. Readers are welcome to discuss aspects of this article with the authors at saimarida87@hotmail.com

Source: The Pakistan Accountant, January-March 2009

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posted @ 12:13 PM, ,

ICAEW Fines Grant Thornton Over Audit Sign-Offs

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Grant Thornton agress to pay fines and costs over failing to sign off audit reports by a 'responsible individual' of the firm Grant Thornton has agreed to pay nearly £6,000 in fines and costs after it failed to correctly sign off 43 audit reports.

The firm agreed to pay a £2,500 fine and £3,410 in a consent order with the ICAEW's investigation committee after issuing 43 audit reports that had not been signed off by a responsible individual of the firm, contravening audit regulation 4.05.

Andrew Turpin of business recovery specialists P&A Partnership was ordered to pay a regulatory penalty of £1000 for drawing unauthorised remuneration although it was subsequently approved, found the ICAEW's insolvency licensing committee in its latest batch of disciplinary orders and regulatory decisions.

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posted @ 11:28 AM, ,

Job in Mobilink

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Industry: Telecommunication/ISP
Category: Financial Services
Total Position: 1
Job Type: Permanent ( firstshift )
Job Location: Islamabad
Gender: Doesn't Matter
Minimum Education Bachelor's Degree
Degree Title: ACMA / CA Inter / MBA degree
Career Level: Experienced (Non-Manager)
Minimum Experience: 5 Years(Minimum 5 years experience in Accounting / Finance/Taxation, including 2 Years of corporate taxation experience)
Vist here to Apply By: Jul 11, 2009

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posted @ 2:49 PM, ,

Money Market, Forex and General News - 08-07-2009

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MONEY MARKET

FOREX


GENERAL NEWS

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posted @ 10:09 AM, ,

Latest Invention of WAPDA and KESC

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Regards,

Ministry of Power and Water

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posted @ 10:44 PM, ,

Petrol Price Structure

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Supreme Court has suspended implementation of carbon tax on petroleum products. Have a look at petrol price structure that we are paying to get petrol for our vehicles.
If the said suspension implements then we would be in position to get petrol at 52.13. On the other side Governement would suffer with further deficit of 134 billion if this rule is implemented.

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posted @ 7:51 PM, ,

Collection of Tax by A Stock Exchange

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1. The reference has been made to the Board to clarify that who will take the credit of the tax withheld under clause (c) of sub-section (1) of section 233A of the Income Tax Ordinance, 2001. Whether the Member of the Stock Exchange or the seller of shares who did the trading of shares through the said Member?

2. The matter has been considered. Though the tax in respect of trading of shares is deducted from the member by the stock exchange yet the tax so withheld under clause (c) of sub-section (1) of section 233A of the Income Tax Ordinance, 2001, does not pertain to him exclusively. He is only an intermediary and the tax withheld under the aforesaid provisions of law, belongs to the seller of shares also who traded through him. Legally speaking, the seller is entitled to take the credit of the tax so withheld as well as the member in respect of the shares owned by him. The member of the stock exchange is the custodian of the record,as the transactions of shares are made through him on the stock exchange.

3. It is, therefore, clarified that the Member would certify the quantum of tax withheld from each person traded through him and shall furnish a statement, to the concerned Director General, RTO, for the verification of claim of the taxpayers who traded the shares through him.


Circular no. 02 of 2009 dated 26 March, 2009

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posted @ 7:48 PM, ,

Clarification Regarding Adjustments Of Payments Through Ledger Account

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Under clause (b) of section 158 of the Income Tax Ordinance, 2001 (hereinafter referred as “Ordinance”), a person is required to deduct tax from an amount paid by the person at the, time the amount is actually paid. It has, however, been noticed that some inter-account adjustments of receivable/collectable against payable are carried out through ledger accounts or journals maintained by the persons and such “adjustments” are not construed as “payments” or “actually paid” and no tax is withheld therefrom.

2. Though the word “adjustment” has not been defined in the Ordinance yet it as a matter of common prudence that it is at par with the word “paid”, because by such “adjustment” the payables are reduced which amounts to “actual payment” by other means.
3. The matter has been examined. According to Black’s Law Dictionary, “adjustment” amounts to “an arrangement; a settlement”. This obviously means that payable settled by payment or inter-account adjustment of receivables against the payables tantamount to “actually paid” and thus attracts the provisions of clause (b) of section 158 of the Ordinance, whenever any such adjustment is made. It is, therefore, clarified that in such circumstances, the person who is making such interaccount adjustments is required to withhold tax under the relevant provisions of law at the relevant rates and in case of any default, provisions of the Ordinance shall apply accordingly.
Circular No. 01 of 2009 Income Tasx - February 20, 2009

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posted @ 12:37 PM, ,

Income Tax Audit In Pakistan

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As per recent Amendments of Finance Act, 2009, everyone knows FBR can appoint for outsource of Income Tax Audit to the Chartered Accountants Firm. But number of professional Accountants, Finance professionals & Auditors are not fimaliar or awarness about the tax audit & its procedure due to its different from Financial or Statutory audit.

What is an Income Tax Audit?

An income tax audit is an inspection conducted by a government representative to confirm that someone's taxes were prepared correctly. Tax audits are very intimidating for most taxpayers, and the important thing to remember about audit notices is that they are not accusations, and that taxpayers are not being required to prove that they are not guilty of something when they are audited. Audits are usually performed on an entirely random basis, with taxpayers being selected by the Commissioner of Income Tax.

In an income tax audit, the taxpayer is required to show documentation and support for every aspect of his or her tax return. For example, if someone claims itemized deductions, receipts for those deductions must be produced, in addition to justifications for why the taxpayer felt that those deductions were legitimate. Tax deducted by bank on Cash withdrawal on higher side than compare to business activity it also attract for tax audit. In addition, taxpayers must open their accounting methods to inspection, and demonstrate that all of their income was in fact properly documented and claimed on the tax return.

Audits are usually performed because a taxpayer was randomly selected by the Commissioner of Income Tax. Certain areas of tax returns are especially prone to errors, so the Commissioner of Income Tax may weight people with things like high income, high levels of deductions, or repeated business losses for audits. Taxpayers may also be selected for auditing when they fail to pay their taxes, or when they request an installment plan to pay taxes.

In a correspondence income tax audit, the taxpayer is sent a notice and asked to return documents by mail. There are two types of Income Tax Audit which are as follows:-

1. Field Audits

Many taxpayers in pakistan are not aware of this kind of income tax audit. Field audits occur when FBR agents come to the taxpayer in the office to discuss tax issues as such power was conferred by the FBR to the selected Chartered Accountants Firm in shape of outsourcing of tax audit in the recent Finance Act, 2009.

2. Office audits

Office Audit requires the taxpayer to show up in a government office like Regional Tax Office / Large Tax Payer Unit with supporting documentation on a specific day or time. The FBR agent/ relevant Income Tax Officer/ Commissioner of Income Tax assigned to the case will review the material and make a determination on the basis of that review.

Sometimes, someone's taxes are audited and everything appears to be in order, in which case no action is taken. In other instances, over or underpayment of taxes is detected, and the issue will need to be corrected. If the taxpayer engaged in activity which is fraudulent or illegal, he or she can face legal penalties in addition to fines.

Mistakes happen on everyone's taxes now and then, and as long as taxpayers can demonstrate that an error is a true accident or the result of an action taken in good faith, the government is usually satisfied with a correction and no other action. Taxpayers can make the audit process smoother by taking the time to fully prepare for an income tax audit so that all of the information is organized and available, and by being polite and helpful to the auditing team. Consulting chartered accountant or income tax lawyer can be advisable if someone is preparing for an income tax audit.

The business community in Sindh and Punjab is perturbed at the flurry of notices received from the tax department in the last number of months. In certain instances, the department had re-opened cases of tax returns filed over the past five years. Taxpayers have been advised to make prompt payment to avoid tax evasion.

From the FBR point of view, it was to improve recovery the FBR has started the exercise of selective audit to” bridge the gap between the tax potential and its realisation.”

Presently, a taxpayer is required to maintain prescribed documents and records for five years from the end of relevant tax year. As per recent amendment in U/s. 174,176, 177 & 210 of the Income Tax Ordinance, 2001, require the taxpayer to maintain documents and records till final decision in any proceedings for assessment, appeal, revision, reference, petition and any proceedings before Alternative Dispute Resolution Committee.

As reported, the Board is considering outsourcing of tax audits to Chartered Accountant Firms. To enable the Chartered Accountant Firms to conduct such tax audits, the Finance Act seeks to empower Chartered Accountant Firms, with the prior approval of the Commissioner of Income Tax, to obtain and retain information, record or computers for such time as necessary.

Similarly, the amendment empowers the Commissioner to delegate the powers to conduct the audit of persons selected for audit to a Firm appointed by the Board.

INSTRUCTIONS FOR INCOME TAX AUDIT

Instructions

Things you will need:

· Copies of all affected tax returns
· Copies of Profit & Loss account and Balance Sheet
· Copies of all relevant receipts and other information
· Copies of Tax Challans & Other evidences for deduction of taxes
· Copy of Tax Computation
· Name and contact information for a tax accountant or lawyer

1. Step 1

Read the notice carefully. Some audits involve only parts of a single year's tax return, while others can include entire returns for multiple years. In addition, some audits request information by mail, while others require a meeting with an FBR agent/ relevant Income Tax Officer/ Income Tax Commissioner. Understanding what the FBR is asking for is vital to ensure that you prepare precisely for the specified audit.

2. Step 2

Start immediately. You will need plenty of time to pull your information together, to request information from others, such as buyers/ sellers, charities, credit card companies, and banks and to work with a tax professional.

3. Step 3

Consult a tax accountant or lawyer. The tax payment codes are extremely complex, and require years of study to fully comprehend. It's best to take the advice of professionals when responding to an audit. They can tell you what the audit means, what the consequences might be, and the exact information you will need to provide.

4. Step 4

Gather the required information. Hopefully, you stored all of the relevant receipts and other information when you filed your tax return, and so you will have an easy time of creating copies in preparation for the audit. If not, then you will need to locate all of the required information.

5. Step 5

Organize your information. Now that you have all of your information in place, put it in the proper order. All of the information should be laid out as in the audit notice. That way, it will be easier for you and your tax professional to double-check your information and have it ready for the response.

6. Step 6

Respond to the audit. If your audit is in person, either you or your tax professional can represent you to the FBR agent/ relevant Income Tax Officer/ Income Tax Commissioner. If you are not required to be at the audit, have your professional attend alone with a power of attorney. If your audit requires that you mail your response to the FBR, then send copies only and ensure that you've answered all of the issues outlined in the audit notice.

7. Step 7

Act on the FBR findings. You may have to pay an additional amount to the FBR, return part of a refund, or you may receive money back. You also have the right to appeal the FBR agent's findings to the Commissioner Appeal or the Appeals Division, and you can take your case to the High Court’s Tax Bench.

By: Muhammad Mustafa Rahim, Rahman Sarfaraz Rahim Iqbal Rafiq,Chartered Accountants
Sources:Complete Tax Solutions, English Law Dictionary, FBR

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posted @ 1:31 PM, ,

Money Market, Forex and General News - 03-07-2009

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MONEY MARKET

Market is flooded with liquidity, as a consequence the overnight closed at 1% p.a.
FOREX
The FX market was range bound with no major payments. The USD / PkR opened at levels of 81.55 & 81.60 and went as high as 81.62 and closed at 81.53 & 81.55

GENERAL NEWS
With Pakistan’s external liabilities rising to US$51bn and further sustained increase likely over the next 4-5 years, external debt sustainabilitywill certainly prove challenging in the medium term. This seems all the more obvious considering that the GoP is now negotiating for an additional US$4bn IMF financing facility – either SBA or PRGF – and at the same time mobilizing funds from bilateral donors though the FoDP platform. Already, servicing of external debt is eating heavily into fiscal resources with 13.4% of tax revenues budgeted for foreign debt servicing in FY10. This figure will likely rise as a result of servicing on the projected higher level of bilateral and IFI debt (excluding IMF), and sizable payments due on the IMF’s SBA facility during FY10-FY12.

A round of Pakistan-IMF meetings will initiate in Istanbul today. In this regard, the IMF has reportedly requested statistics on interest and amortization payments of major public sector enterprises, budgetary expenditures and revenue collection. In other news, the ADB and the IDB have jointly launched a US$500mn Islamic Investment Fund, mandated to invest in 12 countries including Pakistan
Source: NBP Treasury

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posted @ 12:16 PM, ,

List of the International Standards of Auditing - ISAs

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Respective responsibilities

Audit planning

Internal Control

Audit evidence

Using work of other experts

Audit conclusions and Audit report

Specialized areas

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posted @ 3:22 PM, ,

Some Suggestions For ICAP

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  1. To change the name of ICAP to a new name such as “The International Institute of Charered Accountants in Pakistan”
  2. To change the name of ICAP Magazine from “The Pakistan Accountant” to “The Global Accountant”
  3. To work on the Education Committee not Training Committee of ICAP and to ensure that ICAP offer few specializations such as “Islamic Finance, Banking Insurance”, Auditing and Assurance” , “Taxation, Fiscal and Corporate Laws”, “General Financial Management”, “Public Finance and Accountancy”.
  4. Mid career Accountants be offered a qualification like Assistant Chartered Accountant. This is something what Japan has done as Assistant CPA and ACCA has done like B.Sc. Hons. In Applied Accounting etc.

Do you agree with this Athar Zaidi's suggestions for ICAP.

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posted @ 3:11 PM, ,

ICAP Elections - Results

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We are pleased to inform you that the Election Committee has officially declared the results of ICAP Elections to the Council and its two Regional Committees held on June 27, 2009.

The names of the candidates declared elected are as under:

1 COUNCIL

1.1 Northern Region – Zone A

(1) Hafiz Mohammad Yousaf
(2) Mr. Mohammad Abdullah Yusuf
(3) Mr. Rashid Rahman Mir
(4) Ch. Nazir Ahmad Asad
(5) Mr. Naeem Akhtar Sheikh

1.2 Northern Region – Zone B

(1) Mr. Rafaqat ullah Babar

1.3 Southern Region – Zone A

(1) Mr. Abdul Rahim Suriya
(2) Mr. Pervez Muslim
(3) Mr. Khalid Rahman
(4) Mr. Yacoob Suttar
(5) Mr. Zahid Iqbal Bhatti
(6) Mr. Nadeem Yousuf Adil
(7) Mr. Ahmad Saeed
(8) Shaikh Saqib Masood

1.4 Southern Region – Zone B

(1) Mr. Adnan Zaman

2 REGIONAL COMMITTEES

2.1 Northern Region – Zone A

(1) Mr. Irfan Ilyas
(2) Mr. Muhammad Awais
(3) Mr. Mohammad Ali Latif
(4) Mr. Faisal Iqbal Khawaja
(5) Mr. Shibli Islam Rehan

2.2 Southern Region – Zone A

(1) Mr. Saad Kaliya
(2) Mr. Adnan Ahmad Mufti
(3) Mr. Riaz A. Rehman Chamdia
(4) Syed Najamul Hussain
(5) Mr. Khalilullah Shaikh

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posted @ 10:20 AM, ,


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