Latest news with #Rs500bn
Business Recorder
5 days ago
- Business
- Business Recorder
Rs431bn owed to Chinese power projects: PD and SBP at odds over repatriation?
ISLAMABAD: The Power Division and the State Bank of Pakistan (SBP) are reportedly at odds over the repatriation of Rs 431 billion owed to Chinese power sector projects—an amount meant to be repatriated through commercial banks, well-informed sources told Business Recorder. This issue came to light during a meeting of the Sub-Committee on Reforms, chaired by Minister for Petroleum and Natural Resources Ali Pervaiz Malik. The meeting was also attended by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar. Chinese coal-fired power projects, such as Port Qasim and Sahiwal, have been persistently writing to the Ministry of Finance, seeking clearance of these outstanding payments. Chinese IPPs face Rs500bn in unpaid dues The matter surfaced during discussions on proposed measures to mitigate currency risks for foreign investors in Pakistan. The SBP stated that no loan repayments—whether principal or interest—nor profit repatriation payments are pending with the SBP or any commercial bank. The central bank acknowledged that only a profit payment of $26.5 million is pending with one commercial bank, which it expects will be cleared soon. SBP further clarified that no verbal or written directives had been issued to commercial banks to delay LC payments or other financial transactions. However, the Power Division reported that while the power payment cycle typically spans 90 days, Rs 431 billion in payments remain stuck with commercial banks—primarily for non-energy components. A detailed ageing report presented during the meeting indicated that while no energy payments have been overdue for more than three months, non-energy payments have been pending for years. The depreciation of the rupee has further reduced the dollar value of these payments. No representatives from NEPRA attended the meeting, and no information was shared regarding eight pending cases. The SBP reiterated that no Chinese company payments are currently pending for profit repatriation or debt servicing, and it has issued no instructions—verbal or written—to banks in this context. However, the SBP was asked to provide a written report detailing all payments to Chinese companies pending with commercial banks, including ageing data. The Power Division maintained its stance that Rs 431 billion in payments are pending with various banks and remain un-repatriated by the concerned Chinese companies. NEPRA was directed to provide an update on the potential claw back of the eight cases under adjudication. No conclusive way forward was proposed during the session. The committee noted a divergence in views between the SBP and the Power Division, making it difficult to issue a clear recommendation due to the lack of clarity. The chair emphasized several core principles as essential for attracting investment: (i) adherence to due process of law ;(ii) sanctity and enforceability of contracts;(iii) provision of adequate security measures ;(iv) a competitive and transparent process, and (v) policy consistency and predictability in the medium term. Regarding the development of physical infrastructure and utility services at Special Economic Zones (SEZs) and Export Processing Zones (EPZs), the Board of Investment (BoI) informed the sub-committee that six SEZs will be marketed to Chinese investors. BoI said that 40 companies have been identified to showcase as success stories, which will be narrowed down to 5–10 for targeted promotion. The committee supported promoting six SEZs—AIIC, BQIP, KIP, Rashakai, Dhabeji, and PSM—to Chinese investors. Of these, 3,000 acres are available for development at PSM and 700 acres at AIIC, with additional land parcels available at other developed SEZs, all equipped with basic amenities. The committee recommended establishing Service Level Agreements (SLAs) to define timelines. On easing regulatory hurdles and creating a one-stop-shop mechanism integrating federal and provincial authorities, the BoI presented updates on its Business Facilitation Center (BFC) initiative. BoI highlighted the 'regulatory guillotine' efforts and modernization of the Companies Act. The Cabinet Committee on Regulatory Reforms (CCoRR) has been notified, and BoI claims that two reform packages will reduce the cost of doing business by Rs 250 billion. Three additional reform packages are in the pipeline for CCoRR approval. BoI also shared its role in integrating 20 departments with SECP, harmonizing food standards across federal and provincial jurisdictions, and reducing DRAP's medical device registration timeline from two years to 45 days. The committee recommended that BoI implement a hub-and-spoke model for BFCs linked to regional offices in the six priority SEZs. SLAs will also be developed for these centers to provide transparency and predictability for investors. On reducing port clearance times and enhancing cold chain logistics, the Secretary of the Ministry of Maritime Affairs (MoMA), along with the Chairman of Port Qasim Authority (PQA) and the General Manager (Operations) of Karachi Port Trust (KPT), briefed the committee. They reported that recent reforms have reduced consignment clearance time by 24–48 hours. However, no precise data was available on reefer (refrigerated container) occupancy or costs. It was also noted that 35–40% of consignments are routed through yellow or red channels, and various departments at ports impact both import and export processes. The chair inquired whether consignments of vetted and established investors could be moved to the green channel. The committee recommended developing a comprehensive port governance model that ensures one-window operations and standard procedures for cold chain storage, aligned with international best practices. SLAs should also be signed with investors to guarantee faster clearance of their consignments. Pre-clearance mechanisms and a grievance redressal help desk for reputable importers were also advised. Lastly, the chair took serious notice of the long-vacant post of Chairman KPT and directed the Secretary of MoMA to resolve the matter urgently. A 'look-after' charge must also be assigned without delay. Copyright Business Recorder, 2025
Business Recorder
21-06-2025
- Automotive
- Business Recorder
Import of up to 5-year-old used vehicles allowed with 40% extra tariff
ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025
Business Recorder
21-06-2025
- Automotive
- Business Recorder
Import of up to 5-year-old used vehicles allowed with 40pc extra tariff
ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025
Yahoo
16-06-2025
- Business
- Yahoo
Ninety One to complete Sanlam Investments UK transfer
Ninety One is set to finalise the transfer of Sanlam Investments UK's active asset management business to Ninety One UK today (16 June). The move is part of a broader agreement between Ninety One and Sanlam, positioning Ninety One UK as the primary active asset manager for a portion of Sanlam Investments UK's assets under management. Initially announced in November 2024, the agreement designates Ninety One as the primary active investment manager for Sanlam's single-managed local and global products. The alliance also formalises a 15-year relationship between the two firms through various operative agreements concluded in March 2025. As part of the arrangement, Sanlam will receive 125.7 million shares in Ninety One, translating to a 12.3% equity stake. Excluding ARC Financial Services Investments, Sanlam's effective shareholding in Ninety One will be approximately 8.9%. Additionally, Sanlam will become an anchor investor in Ninety One's international private and specialist credit strategies. Ninety One, originally from South Africa with a global footprint, hopes to benefit from preferred access to Sanlam's distribution network. The alliance is expected to expand Ninety One's market reach and accelerate its international private credit offerings. Announcing the deal in November, Ninety One founder and CEO Hendrik du Toit said: 'We are looking forward to a long and fruitful relationship with Sanlam, a business with a powerful brand and significant scale in South Africa. 'Our experience and expertise are complementary. This agreement will give us the opportunity, as leaders in our respective markets, to create additional value for our stakeholders.' Last week, India's Shriram Group launched its wealth management venture by collaborating with Sanlam Group, focusing on serving India's affluent and high-net-worth individuals. The equally shared joint venture, branded Shriram Wealth, targets Rs500bn ($5.84bn) in assets under advice and plans to onboard 500 wealth management experts within five years. "Ninety One to complete Sanlam Investments UK transfer " was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Shriram Group, Sanlam establish wealth management venture in India
Shriram Group has entered the wealth management sector through a partnership with South Africa's Sanlam Group, targeting India's affluent and high-net-worth individuals (HNIs). The 50:50 JV, named Shriram Wealth, aims to achieve Rs500bn ($5.84bn) in assets under advice (AUA) and recruit 500 wealth management professionals over the next five years. Shriram Wealth will offer a range of services, including mutual funds, alternative investment funds, portfolio management, lending solutions, protection plans, global investment opportunities, and legacy planning. Operations will begin in the top ten cities, with plans to expand to ten more cities within a year, focusing on both metropolitan and emerging Tier 2 and Tier 3 markets. The JV will cater to three client categories, including mass affluent clients with assets between Rs1m and Rs20m, high-net-worth individuals with assets from Rs20m to Rs250m and ultra-high-net-worth individuals with assets exceeding Rs250m. The management has recruited professionals with 15 to 20 years of experience in banking and non-banking sectors, aiming to leverage their client base and diverse product offerings to explore new demographics. Shriram Wealth managing director and CEO Vikas Satija said: 'Currently, only about 15% of financial assets in India are professionally managed, compared to 75% in mature global markets.' Last month, Sanlam formed a partnership with Shriram Asset Management Company (Shriram AMC), a division of the Shriram Group. Shriram AMC offers a range of financial services, including commercial vehicles, consumer finance, life and general insurance, stock broking, chit funds, and financial product distribution. "Shriram Group, Sanlam establish wealth management venture in India" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
