SECP extends applicability of Cost Accounting Records Order, 2012

islamabad (Staff Reporter):  The SECP) has extended the applicability in respect of compliance of Synthetic and Rayon Companies (Cost Accounting Records) Order 2012.  The decision has been taken by the SECP owing to practical difficulties faced by the companies engaged in the business of synthetic and rayon, including polyester fibre, polyester filament yarn, polyester chips, production and manufacture of rayon and viscose tyre yarn/cord. The SECP’s attention was also drawn to the conditions of domestic polyester staple fibre industry that was facing the worst business cycles thereby resulting in difficult market conditions and domestic over supply.

Unchecked dumping from China had eroded industry margins and domestic producers suffered continued losses.

The Commission acknowledges that fact that compliance of aforesaid cost order entailed exhaustive preparatory work for segregation of costs, additional manpower and resources. The existing requirements of financial reporting were already exhaustive and introduction of cost audit regime through the aforesaid order for polyester staple fibre industry may further add to the costs of doing business due to system upgrade and risks faced for any inadvertent breach of data confidentiality.

The SECP strive to strengthen regulatory environment in Pakistan for the development of a modern corporate sector while keeping in view the practical hindrances faced by industry. In pursuance thereof, the SECP has extended the applicability of Synthetic and Rayon Companies (Cost Accounting Records) Order, 2012 until further order.

Pakistan, Philippines agree to boost co-op

islamabad (Staff Reporter):  Pakistan and the Philippines Thursday reiterated the commitment to further intensify bilateral cooperation in different sectors, including trade, education, science and technology. According to Foreign Office, the commitment was made at the fourth round of policy consultation talks between the two countries held in Manila on Thursday. Foreign Secretary Aizaz Ahmad Chaudhry led the Pakistan side while Under Secretary for Policy of the Department of Foreign Affairs Evan P. Garcia led the Philippines side. The two sides reviewed the entire gamut of bilateral relations and expressed satisfaction at the continued growth of mutually beneficial cooperation in diverse fields.

Both the sides also discussed regional issues and matters pertaining to cooperation at multilateral fora, including inter-faith dialogue.

Pakistan reaffirmed its desire for an enhanced partnership with ASEAN states. The Philippines’ side gave an overview of the regional issues in South East Asia. The Pakistan side was also briefed on the situation in South Asia and Pakistan’s efforts to ensure peace in the region.

SBP-held reserves down by $34 million

KARACHI (Staff Reporter): Total liquid foreign reserves of the country stand at dollars 15.01908b, said State Bank of Pakistan’s (SBP) weekly statement issued here on Thursday. The statement said that the foreign reserves held by State Bank on January 16 amounted to dollars 10.33005b and the net foreign reserves held by other banks stood at dollars 4.68903b. During the week ending on January 16, SBP’s liquid foreign exchange reserves decreased by 34m dollars to $ 10.331b compared to $ 10.365b of the previous week. Over the period, SBP made payments of $ 57 billion on account of external debt servicing and other official payments.

No major inflow was recorded during the week under consideration.

Flour millers for reducing wheat price in KP

PESHAWAR (APP): Chairman All Pakistan Flour Mills Association Khyber Pakhtunkhwa Naeem Butt Monday called for reducing the rate of wheat to the level of wheat price in Punjab province. Addressing executive body meeting of APFMA KP here, he said the people of KP are getting flour on high rates as compared to Punjab and Sindh provinces because the flour mills were getting 40kg wheat on Rs. 1300 while in Punjab and Sindh the rates are Rs 1280 and Rs. 1250 per 40 kg respectively. He urged Chief Minister KP Pervaiz Khattak and provincial minister for food to resolve the issue of wheat rate and bring it down as much as it is in either in Punjab or Sindh and ensure availability of flour on cheap rates to masses.

He mentioned that the purchase of flour has increased in Punjab due to reduction in wheat price while the KP Flour Mills industries are facing losses due to high prices of wheat. He warned that if the government would not revise the rate on per 40 kg of wheat, the KP flour mills industries could close down its business in the province which would result in unemployment and unrest in KP.

SECP recommends establishing exclusive insurance tribunals

Islamabad (Staff Reporter):  The Securities and Exchange Commission of Pakistan (SECP) has written to the Law and Justice Division, recommending it to establish a specialised and independent insurance tribunal in Islamabad in accordance with the provisions of the 2000 Insurance Ordinance to clear up the backlog of pending cases.  The SECP has pointed out to the law ministry that in 2006 with the approval of the chief justices of relevant High Courts, the federal government had conferred the powers of the insurance tribunal on district and sessions judges in Karachi, Lahore and Peshawar. Yet due to heavy workload in sessions courts the SECP’s complaints have been pending for the last five years.

 “The desired results could not be achieved as no relief was provided to the aggrieved policyholders.”

Thus, in order to provide speedy justice to the aggrieved policyholders, the SECP is in favor of establishing independent and exclusive insurance tribunals as envisaged under sections 121, 122 and 123 of the Insurance Ordinance.   The SECP has offered to provide office space to specialized tribunals at its offices in Islamabad, Lahore, Peshawar, Faisalabad, Multan, Quetta and Karachi.

The SECP has also pointed out that it has no objection to the Law and Justice Division’s proposal to confer the powers of the insurance tribunal on the district and sessions judge as an interim arrangement.

Meanwhile, the SECP has started formulating regulations for the small dispute resolution committees. These committees will arbitrate between insurance companies and the policyholders.