No change in KSE-100 level

KARACHI (November 28 2008): Uncertainty over the removal of floor kept the market participants at the sidelines and the benchmark KSE-100 index remained unchanged at 9,187.10 points level. Trading in some second tier stocks supported the ready market volume to increase to 82,500 shares as compared to 47,100 shares traded a day earlier. No trading was recorded at the futures counter.

Out of the total nine active scrips, one closed in positive and four in negative while the value of four scrips remained unchanged. National Assets was the overall volume leader with 51,500 shares, however, it lost Re. 0.02 to close at Re. 0.45. Dar-es-Salaam remained unchanged at Rs 4.50 with 10,000 shares.

While Al-Asif Sugar gained Re. 0.11 to close at Rs 4.25 with 6,000 shares, Paramount Modaraba remained unchanged at Rs 9.25 with 5,000 shares and Standard Chartered Modaraba closed at Rs 8.60, down by Re. 0.01 with 5,000 shares.

Habib-ADM Limited lost Re. 0.02 to close at Rs 9.37 with 2,000 shares, Taxila Engg declined by Re. 0.31 to close at Rs 4.46 with 1,500 shares and Millat Tractors remained unchanged at Rs 163.92 with 1,000 shares. Southern Electric closed at Rs 3.60 without any change with 500 shares.

Al-Asif Sugar was the highest gainer with Rs 0.11 gain to close at Rs 4.25, while Taxila Engg was the worst loser and lost Rs 0.31 to close at Rs 4.46. The lack of investors' interest was witnessed as trading took place in only nine stocks, analysts said.

On the other hand, off-market trading continued, as the market participants were not finding exit from the main market due to price floor. The absence of buyers even at the off-market counter forced the small investors to sell their holdings with an average 30 percent discount, they added.

Rs six billion decline in market capitalisation

KARACHI (November 27 2008): The KSE-100 index remained unchanged at 9,187.10 points as investors remained cautious due to uncertainty over removal of 'floor' issue and availability of market stabilisation fund. Trading volume at ready market slightly improved to 47,100 shares as compared to 44,600 shares traded a day earlier. No trading activity was witnessed at the futures counter.

Market capitalisation declined by Rs 6 billion to Rs 2.820 trillion. Trading took place in only seven scrips, out of which no scrip closed in positive. Three scrips closed in negative, while the value of four scrips remained unchanged.

Flying Cement was the volume leader with 22,000 shares. However, its price remained unchanged at Rs 4.32. Standard Chartered Modaraba lost Re. 0.09 to close at Rs 8.61 with 10,000 shares. Habib-ADM Limited declined by Re. 0.51 to close at Rs 9.39 with 8,000 shares.

TRG Pakistan remained unchanged at Rs 3.82 with 3,500 shares. UDL Modaraba closed at Rs 3.06 without any change with 2,000 shares. Gharibwal Cement lost Re. 0.36 to close at Rs 17.63 with 1,500 shares. Gatron Industries remained unchanged at Rs 44.10 with 100 shares.

Ahsan Mehanti at Shehzad Chamdia Securities said that depressed activity continued as investors remained concerned over fate of stock market bailout funds after IMF and advisor to PM on finance Shaukat Tarin hinted that government funds would not be used to bail out markets. Investors remained uncertain over the unfreezing of 'floor' as participants of bailout fund, namely NBP, NIT, State Life, EOBI failed to submit pledge over their perspective investments in the capital market.

Turnover declines on KSE

KARACHI (November 26 2008): The Karachi share market witnessed another dull session on Tuesday with very thin trading activity, and KSE-100 index stayed unchanged at 9,187.10 points. The ready market volume amounted to 44,600 shares as compared to 146,700 shares traded a day earlier. No trading was witnessed at the futures counter.

Out of 14 active scrips, three closed in positive and two in negative while the value of nine scrips remained unchanged. Pak Com Leasing was volume leader with 23,000 shares. However, it remained unchanged at Re. 0.55. National Assets gained Re. 0.06 to close at Re. 0.47 with 9,000 shares trading. Escorts Bank remained unchanged at Rs 8.40 with 3,000 shares. Millat Tractors closed at Rs 163.92 without any change with 3,000 shares.

Thatta Cement remained unchanged at Rs 16.00 with 2,000 shares. UDL Modaraba closed at Rs 3.06, down by Re. 0.01 with 1,000 shares. Dewan Auto Engg closed at Rs 1.45 without any change with 1,000 shares. Askari Bank remained unchanged at Rs 27.98 with 500 shares.

JS Bank closed at Rs 10.00 without any change with 500 shares. Gharibwal Cement gained Re. 0.62 to close at Rs 17.99 with 500 shares. Pak Datacom and Gharibwal Cement were the highest gainers and gained Rs 2.20 and Re. 0.62 to close at Rs 47.20 and Rs 17.99 respectively while Southern Electric and UDL Modaraba were the lowest losers and lost Re. 0.03 and Re. 0.01 to close at Rs 3.60 and Rs 3.06 respectively.

Ahsan Mehanti at Shehzad Chamdia Securities said that depressed activity persisted at the share market. Investors remained cautious as uncertainty remained over foreign selling in capital markets after IMF assistance to rescue Pakistan approved. SBP tight monetary policy stance and liquidity crunch in capital markets remained a concern for long term investors.

KSE index remains unchanged

KSE index remains unchanged
RECORDER REPORT

KARACHI (November 25 2008): The benchmark KSE-100 index once again remained unchanged at 9,187.10 points level as the investors opted to remain at the sidelines over the uncertainty on removal of floor. Some activity however was witnessed in the second tier stocks, that supported the volume to slightly increase to 146,700 shares as compared to 81,100 shares traded on Friday.

The overall market capitalisation declined by Rs 90 million to stand at Rs 2,826.123 billion. Out of the total 14 active scrips, two closed in positive and nine in negative while the value of three scrips remained unchanged.

Gharibwal Cement was the overall volume leader of the day with 41,000 shares, however, it declined by Re. 0.22 to close at Rs 17.37. National Assets lost Re. 0.03 to close at Re. 0.41 with 38,500 shares. Pak. Com. Leasing decreased by Re. 0.05 to close at Re. 0.55 with 15,500 shares. UDL Modaraba closed at Rs 3.07, up by Re. 0.01 with 13,500 shares. Haydery Const lost Re. 0.02 to close at Rs 1.03 with 12,500 shares.

Habib-ADM Limited gained Re. 0.22 to close at Rs 9.90 with 7,500 shares. Saritow Sp. lost Re. 0.69 to close at Rs 1.44 with 5,500 shares. Mukhtar Textile declined by Re. 0.05 to close at Re. 0.55 with 5,500 shares. Standard Chartered Modaraba decreased by Re. 0.30 to close at Rs 8.70 with 5,000 shares. Sitara Energy closed at Rs 18.65, down by Re. 0.85 with 1,000 shares.

Habib-ADM Limited and UDL Modaraba were the highest gainers and gained Re. 0.22 and Re. 0.01 to close at Rs 9.90 and Rs 3.07 respectively while Sitara Energy and Pak Datacom were the worst losers and lost Re. 0.85 and Re. 0.75 to close at Rs 18.65 and Rs 45.00 respectively.

Ahsan Mehanti at Shehzad Chamdia Securities said that depressed activity continued as uncertainty over funds to bail out capital markets persisted despite series of meetings between SECP and KSE. Investors remained concerned over falling market sentiment, off market transactions at 25 percent to 50 percent discount, foreign holders withdrawal and lack of liquidity to bail out capital market from its current crisis.

A dull week on KSE

KARACHI (November 24 2008): Uncertainty over the removal of floor mechanism on share prices kept the investors totally at the sidelines throughout the week and the Karachi share market witnessed lowest ever trading volume during the period.

Some select buying on the last trading session supported the benchmark KSE-100 index to inch up by 3.01 points to close at 9,187.10 points level.

The market witnessed the lowest ever trading volume of only 19,660 shares on Tuesday. However average daily volume slightly increased to 95,972 shares as compared to previous week's average of 69,244 shares. The overall market capitalisation declined by Rs 1.520 billion to stand at Rs 2,826.213 billion.

The foreign investors remained net sellers and withdrew $4.409 million from the country's equity market during the week. The index remained unchanged in the first four trading sessions of the week, however, a slight increase of 3.01 points was witnessed on the last session on the back of investors expectations regarding availability of Rs 20 billion market stabilisation fund.

"The share market witnessed lowest ever volume of only 19,600 on November 18, 2008, breaking the record of 24,500 made a few days back", Romessa Mirza, an analyst at Invest Capital & Securities said.

The listlessness in the market is exemplified by the fact that a mere 32 scrips were traded throughout the week. On the regulatory front, the formula for determination of the closing price of scrips has been changed, and now the average price of the last 30 minutes of a trading day will be considered as the closing price, as opposed to the last tick, thus curbing price manipulation. It has been over six weeks that futures' volume has been nil. Investors are not optimistic about any significant improvement in the near future, due to which they are completely abstaining from taking fresh positions, Romessa added.

Atif Zafar, an analyst at JS Global Capital said that the outgoing week was one of the most dismal in the history of the KSE as daily record low volumes were registered at the cash counter amid uncertainty about the removal of price floor. However, he said, that the off-market average daily volumes witnessed a significant increase of 106 percent with average discount in off-market increasing to 31 percent.

Suspension of trading in the shares of Adil Polypropylene Products Limited

Index witnesses positive change

KARACHI (November 22 2008): Some selective buying supported the benchmark KSE-100 index to move up to close at 9,187.10 points level with a net gain of 3.01 points. "After remaining unchanged for many days, the index witnessed a positive change mainly due to some buying in select stocks", analyst said.

However, trading activities remained dull as the volume at the ready counter declined to 81,100 shares as compared to 109,900 shares traded a day earlier. No trading was witnessed at the futures counter. The overall market capitalisation declined by Rs 261 million to stand at Rs 2,826.213 billion. Out of the total ten active scrips, two closed in positive and four in negative while the value of four scrips remained unchanged.

National Assets was the overall volume leader with 26,000 shares, however, it lost Re. 0.03 to close at Re. 0.44. TRG Pakistan remained unchanged at Rs 3.82 with 23,500 shares. Standard Chartered Modaraba closed at Rs 9.00 without any change with 14,000 shares. Habib-ADM Limited lost Re. 0.02 to close at Rs 9.68 with 12,500 shares. Millat Tractors remained unchanged at Rs 163.92 with 2,000 shares.

Southern Electric gained Re. 0.03 to close at Rs 3.63 with 1,500 shares. Telecard remained unchanged at Rs 3.70 with 500 shares. Mukhtar Textile lost Re. 0.04 to close at Re. 0.60 with 500 shares. Mirza Sugar declined by Re. 0.04 to close at Rs 1.81 with 500 shares. Pak Services surged by Rs 25.17 to close at Rs 528.67 with 100 shares.

Ahsan Mehanti at Shehzad Chamdia Securities said that the index witnessed an increase of three points mainly due to fresh buying in Pak Services. The depressed activity continued as global equity markets rattled on recession expectation looming over US and Japan. Fear of foreign selling, depleting foreign exchange reserves, uncertainty over capital market bail out plan, economic uncertainty and prevailing law and order situation in the country remained a concern for investors.

Karachi Stocks Exchange 18 Nov

Top 10 Traded Companies

Company		Rate						Turnover*
		Open	Close	Diff	High	Low	Avg.
Southern Electric Power Co Ltd [1,366,758,000]		3.61	3.65	0.04	3.65	3.60	3.63	9,000
Gharibwal Cement Ltd [2,318,764,000]		16.66	16.30	-0.36	16.55	16.30	16.42	6,000
Habib ADM Ltd [200,000,000]		9.99	9.89	-0.10	9.89	9.65	9.77	3,000
Mohammad Farooq Textile Mills Ltd [188,892,000]		2.01	2.00	-0.01	2.00	2.00	2.00	500
Haydari Construction Co Ltd [32,000,000]		1.03	1.05	0.02	1.05	1.05	1.05	500
NIB Bank Ltd. [28,437,271,000]		8.45	8.45	--	8.45	8.45	8.45	500
Unilever Pakistan Ltd [664,694,000]		2,340.00	2,340.00	--	2,340.00	2,340.00	2,340.00	160

Top 10 Gainers

Company		Rate						Turnover*
		Open	Close	Diff	High	Low	Avg.
Southern Electric Power Co Ltd [1,366,758,000]		3.61	3.65	0.04	3.65	3.60	3.63	9,000
Haydari Construction Co Ltd [32,000,000]		1.03	1.05	0.02	1.05	1.05	1.05	500

Top 10 Losers

Company		Rate						Turnover*
		Open	Close	Diff	High	Low	Avg.
Gharibwal Cement Ltd [2,318,764,000]		16.66	16.30	-0.36	16.55	16.30	16.42	6,000
Habib ADM Ltd [200,000,000]		9.99	9.89	-0.10	9.89	9.65	9.77	3,000
Mohammad Farooq Textile Mills Ltd [188,892,000]		2.01	2.00	-0.01	2.00	2.00	2.00	50

Participants on the sidelines

KARACHI (November 18 2008): Uncertainty over the 'floor; mechanism kept the market participants on the sidelines and KSE-100 index remained unchanged at 9,184.09 points. Some activity in second-tier companies, however, supported the all share index increased slightly by 0.23 points to close at 6,639.36 points.

The ready market volume amounted to 87,200 shares as compared to previous 57,920 million shares. No trading took place on futures counter. Market capitalisation declined by Rs 411 million to Rs 2,827.322 billion. Out of the 14 active scrips, four closed in positive and three in negative while the value of seven scrips remained unchanged. National Assets was market leader with 40,000 shares. However, it lost Re 0.06 to close at Re 0.44.

Gharibwal Cement gained Re. 0.46 to close at Rs 16.66 with 13,000 shares. Habib-ADM Limited lost Re. 0.21 to close at Rs 9.99 with 6,500 shares. UDL Modaraba increased by Re. 0.20 to close at Rs 3.25 with 6,000 shares. Southern Electric closed at Rs 3.61, up by Re. 0.01 with 5,500 shares.

Nimir Resins remained unchanged at Rs 5.05 with 5,000 shares. Nimir Ind Chemical closed at Rs 2.13 without any change with 5,000 shares. NIB Bank remained unchanged at Rs 8.45 with 2,000 shares. Pak Datacom closed at Rs 46.00 without any change with 1,000 shares. Mukhtar Textile closed at Re. 0.55, up by Re. 0.01 with 1,000 shares.

Gharibwal Cement and UDL Modaraba were the highest gainers and gained Re. 0.46 and Re. 0.20 to close at Rs 16.66 and Rs 3.25 respectively while Sitara Energy and Habib-ADM Limited were the worst losers and lost Rs 19.50 and Rs 9.99 respectively.

Hasnain Asghar Ali at Aziz Fidahusein Securities said that the long awaited decision of going to IMF has been taken. With deal with IMF almost done, outcome from friends of Pakistan is likely to be positive. Developments will certainly refuel the economic engine. Further delay in unfreezing the market, therefore, might raise some questions.

The local bourses may adjust accordingly. The fear that an absolute adjustment might give birth to various internal issues is supposed to be the major hurdle in timely opening. Rumours suggest that there are high chances that decision regarding opening may be taken in the meeting of the board of directors of Karachi Stock Exchange for November 18, 2008.

Competition Commission rejoinder

ISLAMABAD (November 16 2008): This is with reference to a news item which has appeared in Friday's edition of Business Recorder under the headlines "CCP free to proceed in case against KSE". The news item is in relation to certain proceedings which were pending in the Supreme Court of Pakistan.

At the instigation of the Islamabad Stock Exchange, the Competition Commission launched proceedings against the Karachi Stock Exchange for an alleged abuse of dominant position. In fact, ISE had earlier made a business proposal to KSE seeking trading rights for its members on the latter's exchange without their having to become members of the KSE and had stated that in return they were willing to pay Rs 100 crores to KSE.

When KSE did not agree, ISE tried to obtain those trading rights free of cost through the CCP, which held an enquiry in which although comments were called from KSE, they were not given any hearing.

It was on this basis and in this manner that the show cause notice was issued to KSE. The latter, being aggrieved by the mala fide and hostile manner in which the CCP was acting, filed a petition before the Sindh High Court.

The KSE challenged the constitutionality of the Competition Commission and raised several legal issues, including the fact that stock exchanges were regulated and governed by the SECP under their own special law, the Securities and Exchange Ordinance, 1969. It was therefore a clear case of usurpation of jurisdiction by the CCP.

The SHC was pleased to stay the proceedings launched by the CCP. On the subsequent date of hearing, this order was modified by the SHC to the extent that CCP was permitted to hear the legal issues first but was restrained from passing any final order.

Thereafter, ISE (which did not chose to become a party to the SHC petition), filed two petitions before the Supreme Court, claiming to be aggrieved by the orders of the SHC. The CCP itself never appealed against the orders of the SHC. It was these petitions that were heard by the Supreme Court.

The hearing lasted over two days, and detailed arguments were presented by counsel for both sides. It was, inter alia, pointed out that the CCP had developed the deliberate strategy of imposing huge and disproportionate fines in respect of proceedings launched by it, thereby hoping to recover crores of rupees in fines, which would go in large part to finance the hugely inflated salaries of the Commissioners.

This had been done in the case of the banks also, where penalties totalling around Rs 20 crores were imposed arbitrarily, and against which proceedings are pending in the SHC, and where the CCP itself has given an undertaking that it would not recover the penalties imposed.

It was during the course of the second day of the proceedings that counsel for ISE, and the CCP (represented by the Member, Legal), made an offer that the CCP was willing to give an undertaking to the effect that if the SHC stay were lifted, and an adverse order was made by the CCP against the KSE, then that order would not be enforced till the final decision of any appeal against the CCP decision to the Supreme Court.

Furthermore, no recovery of penalties would be made until the Supreme Court finally decided the matter on the merits. It was on this undertaking, expressly given in writing by the CCP to the Supreme Court, that the Court was pleased to direct that the SHC petition be listed in the High Court on 17.11.08.

Barrister Khalid Anwer, the counsel for KSE, submitted that since the stay order given by SHC had become unnecessary because of the undertaking given by the CCP, he would request the SHC to withdraw the same.

However, the petition itself would remain pending, enabling the SHC to adjudicate on the constitutionality of the Competition Ordinance and resolve the many legal questions raised therein, including, not least, the matter of resolving the jurisdictional issues between the two regulators, CCP and SECP. It was in this manner that the Supreme Court disposed off the proceedings before it.

$4.222 million withdrawn from equity market

KARACHI (November 16 2008): A massive outflow of $4.222 million from portfolio investment was witnessed from the country's equity market during the week ended on November 15, 2008. "The prevailing uncertainty over the 'floor' on share prices and weakening economic indicators forced the foreign investors to offload their holdings on available prices", analysts said.

Most of the selling was done through off-market trading as the investors were not able to get exit through the normal trading due to dull trading activity at the share market, Ahmed Nabeel, Chief Operating Officer (COO) of Javed Omer Vohra & Company, said.

The off-market trading is being done at 22 percent to 23 percent discounts, he said, and added that the government did not take any supportive measures for the stock exchange. The government has not taken any step to materialise the announced Rs 50 billion market bailout plan, he added.

According to National Clearing Company of Pakistan data, the cumulative outflow of portfolio investment increased to $4.257 million in the first half of the current month. The cumulative figure of this mode of investment was recorded at negative $344.123 million in the period from January 1, 2008 to November 14, 2008.

The week started on a negative note and an outflow of $2,917,838 was witnessed on the first day of the week. The situation slightly improved and an inflow of $16,325 was recorded on Tuesday. The foreign investors once again opted to offload their holdings and an outflow of $459,384 was witnessed on Wednesday. As much as $40,546 came in the country's equity market in this account on Thursday while the foreign investors withdrew $902,563 on Friday.

All shares index report

ALL SHARES INDEX REPORT (Sector-wise)
============================================================================================================================
SECTOR Mkt Capitalisation Turnover Trading Previous Current Net Percent Percent
in Rs Value Index Index Change M-CPT T-Cpt
============================================================================================================================
Closed-end-mutual Funds 20,904,423,573 - - 4113.46 4113.46 0.00 0.74 0.00
Modarabas 5,337,402,323 1,000 2,200 711.62 708.42 -3.20 0.19 0.38
Leasing Companies 5,579,087,638 14,500 6,425 1820.72 1820.97 0.25 0.20 1.11
Investment Banks/cos./securities 146,560,630,505 - - 14479.1 14479.1 0.00 5.18 0.00
Commercial Banks 740,516,536,985 1,500 26,172 9862.81 9862.81 0.00 26.19 4.53
Insurance 112,371,219,860 1,500 14,350 15884.9 15884.9 0.00 3.97 2.48
Textile Spinning 20,888,758,760 11,500 9,940 1006.34 1006.35 0.01 0.74 1.72
Textile Weaving 1,485,348,844 - - 1487.97 1487.97 0.00 0.05 0.00
Textile Composite 51,788,842,670 500 500 6800.20 6800.21 0.01 1.83 0.09
Woolen 518,034,028 - - 5785.84 5785.84 0.00 0.02 0.00
Synthetic and Rayon 19,841,234,638 - - 2038.17 2038.17 0.00 0.70 0.00
Jute 4,067,362,493 - - 20283.3 20283.3 0.00 0.14 0.00
Sugar and Allied Industries 21,932,231,919 2,500 16,635 2976.35 2982.16 5.81 0.78 2.88
Cement 85,262,970,567 4,000 64,800 5666.20 5659.74 -6.46 3.02 11.21
Tobacco 50,292,332,101 - - 14039.4 14039.4 0.00 1.78 0.00
Refinery 30,558,971,552 - - 12147.7 12147.7 0.00 1.08 0.00
Power Generation and Distribution 77,587,238,171 3,500 14,795 3282.72 3282.22 -0.50 2.74 2.56
Oil and Gas Marketing Companies 110,575,857,109 1,000 267,490 17907.8 17907.8 0.00 3.91 46.29
Oil and Gas Exploration Companies 616,626,530,642 - - 9109.09 9109.09 0.00 21.81 0.00
Engineering 19,797,295,027 - - 12560.1 12560.1 0.00 0.70 0.00
Automobile Assembler 52,387,797,315 - - 3529.48 3529.48 0.00 1.85 0.00
Automobile Parts and Accessories 4,710,744,217 - - 16332.9 16332.9 0.00 0.17 0.00
Cable and Electrical Goods 16,686,123,558 - - 6655.00 6655.00 0.00 0.59 0.00
Transport 21,348,766,756 - - 2027.53 2027.53 0.00 0.75 0.00
Technology and Communication 134,105,140,921 400 18,564 2410.03 2409.75 -0.28 4.74 3.21
Fertilizer 134,391,903,120 - - 6691.10 6691.10 0.00 4.75 0.00
Pharmaceuticals 42,384,541,439 - - 13903.4 13903.4 0.00 1.50 0.00
Chemicals 65,895,046,227 10,000 50,500 1968.96 1968.96 0.00 2.33 8.74
Paper and Board 17,860,244,955 - - 3101.91 4433.34 1331.43 0.63 0.00
Vanaspati and Allied Industries 331,026,570 - - 785.19 785.19 0.00 0.01 0.00
Leather and Tanneries 6,707,486,560 - - 7307.90 7307.90 0.00 0.24 0.00
Food and Personal Care-products 139,508,863,564 520 79,860 9349.50 9349.50 0.00 4.93 13.82
Glass and Ceramics 10,845,946,722 - - 6215.07 6215.07 0.00 0.38 0.00
Miscellaneous 38,077,911,647 5,500 5,665 8524.36 8524.33 -0.03 1.35 0.98
Total 2,827,733,852,977 57,920 577,896 0.00 0.00 0.00 99.99 100.00

BRIndex30 continues flat

KARACHI (November 15 2008): On Friday, BRIndex30 continued its yesterday's trend and remained unchanged, closing at 8,995.65. Volume was 1,000 as against volumes of 57,920 and 2,520 for KSE All Share and KSE-100 Indices respectively. BR Cement Index closed at 889.93 with a net negative change of -2.77 or -0.31 percent registering volume of 4,000. BR Power Generation and Distribution Index closed at 1,071.87 with a net negative change of -0.26 or -0.02 percent.

It recorded volume of 3,500. BR Commercial Banks Index closed at 3,073.87 recording no change and volume of 1,500. BR Oil and Gas Index closed at 1,728.31 recording no change. It recorded volume of 1,000 BR Technology and Communication Index closed at 977.91 with a net negative change of -0.2.or -0.02 percent. The volume was 400.

Unbroken spell of ennui on KSE

KARACHI (November 15 2008): The Karachi share market witnessed another dull session on Friday and the benchmark KSE-100 index remained unchanged at 9,184.09 points level due to investors concerns over the increasing discount rate and issue of floor mechanism. Trading activity further shrank as the ready market volume declined to 57,920 shares as compared to 66,600 shares traded a day earlier.

No trading activity was witnessed at the futures counter. Trading took place in 24 scrips, out of which five closed in positive and five in negative while the value of 14 scrips remained unchanged. National Assets was the overall market volume leader with 14,500 shares and gained Re. 0.08 to close at Re. 0.50. Mukhtar Textile closed at Re. 0.54, up by Re. 0.01 with 11,000 shares. Nimir Resins remained unchanged at Rs 5.05 with 10,000 shares. Haydery Const lost Re. 0.02 to close at Rs 1.03 with 5,500 shares.

Gharibwal Cement declined by Re. 0.42 to close at Rs 16.20 with 4000 shares. Tri-Star Power remained unchanged at Rs 1.64 with 3,000 shares. PSO closed at Rs 267.49 without any change with 1,000 shares. NIB Bank remained unchanged at Rs 8.45 with 1,000 shares. Habib-ADM Limited gained Re. 0.52 to close at Rs 10.20 with 1,000 shares. East West Life Insurance closed at Rs 7.00 without any change with 1,000 shares.

Crescent Sugar and Habib-ADM Limited were the highest gainers and gained Re. 1.00 and Re. 0.52 to close at Rs 9.55 and Rs 10.20 respectively while Pak Datacom and Sitara Energy were the worst losers and lost Rs 2.00 and Re. 0.61 to close at Rs 46.00 and Rs 19.75 respectively.

Ahsan Mehanti at Shehzad Chamdia Securities said that selling activity continued as discount rates raised and investors uncertain over market floor unfreeze and government bail out of capital market by injecting Rs 50 billion. Investors awaited outcome of board of directors meeting with SECP to discuss market floor. Foreign selling continues as a result of downgrading of Pakistan foreign currency rating by a foreign credit rating agency.

Shares buy-back schedule RECORDER REPORT KARACHI (November 14 2008): Shares buy-back schedule of listed companies on Thursday (November 13, 2008).

=======================================================================================
Company Re-Purchase From To Member appointed
Price (Rs) by the Company
=======================================================================================
United Sugar 333.33 31.07.2009 - Invest & Finace Securities
Member KSE
Kakakhel Pakistan 22.50 - 11.08.2009 Refi Securities
Member-KSE
Amim Fabries 8.91 - 04.09.2009 Cassim Investment (Pvt)
Ltd Member KSE
Pak House International 45.00 - 14.10.2009 A.I. Secuities Member KSE

Membership card of KSE defaulter member sold for Rs 55 million

KARACHI (November 14 2008): Karachi Stock Exchange (KSE) on Thursday sold out a membership card of one of the defaulter members through accepting the highest bid of Rs 55 million. Sources said that in all six bids were received to buy the cards. The highest bid was given by a local firm M M Commodities, which was accepted.

The two members of the exchange namely Ismail Abdul Shakoor and Sikandar Bagasra were declared defaulters as they failed to pay their dues. About the sale of the second card, sources said that KSE wants to sell it at the same amount. For this, the exchange will ask the second highest bidder to increase his bid to Rs 55 million, otherwise, the KSE board will take some other decision in this regard.

The selling of the KSE card at Rs 55 million shows the gravity of the situation at the local bourses, which has also started affecting the value of its membership, market participants said adding that the said card was sold out at much lower price. The value of this card was much higher just a few months back as on card was sold out at Rs 140 million some five months ago, they added. The KSE members are facing hard times as the market has declined by over 42 percent from its all-time high level recorded in April this year.

CCP free to proceed in case against KSE: Supreme Court vacates SHC stay

ISLAMABAD (November 14 2008): In a landmark judgement, the Supreme Court of Pakistan has vacated a stay order of Sindh High Court (SHC), enabling the Competition Commission of Pakistan (CCP) to resume hearing of case against the Karachi Stock Exchange (KSE) for alleged abuse of dominating market position.

The SHC had restrained the CCP from issuing final order against the KSE. Now, the CCP is free to initiate adjudication proceedings and pass the final order against the KSE, after giving hearing opportunity to the exchange. The CCP has already heard the case, but suspended the proceedings following a stay order of the SHC.

On completion of hearing, the CCP would pass the final order under section 31 of the Competition Commission Ordinance 2007. Details revealed that the CCP had initiated an inquiry against the KSE on the alleged abuse of dominant market position, placing the small investors of the Islamabad Stock Exchange (ISE) at a disadvantageous position in buying and selling of shares.

The inquiry was initiated on a complaint lodged by the ISE and Lahore Stock Exchange (LSE) under section 30 of the Competition Commission Ordinance 2007 for contravention of provisions of section 3 of the Ordinance. The commission had sought comments of all the exchanges keeping in view the seriousness of the allegations made by the ISE.

Following completion of all legal formalities, the CCP has issued show cause notice to the KSE, providing the exchange an opportunity to explain its position. However, the KSE had filed a petition in the SHC to challenge the Competition Commission law. The SHC had given the stay order against the CCP, restraining the commission from issuance of final order against the KSE.

Against the stay order of SHC, the CCP approached the Supreme Court for vacation of the stay. The Supreme Court has vacated the stay order of the SHC, which has enabled the CCP to proceed against the KSE under the relevant provisions of law.

According to the ISE, most of the companies listed on ISE are also listed on the other exchanges and constitute 90 percent of the total trading volume of listed securities in Pakistan. Of this 90 percent, 87 percent of the trading market belongs to KSE, whereas ISE and LSE collectively account for only a meagre 13 percent of such trading and therefore unquestionably there exist a "dominant position" of KSE in the relevant market.

The ISE said that the KSE and its members, in practice, ensure that access to the "best price" for a particular security, which is mostly available at KSE only, is not available to other exchanges, including ISE, thus depriving investors of such exchanges of an equal opportunity of having a fair and non-discriminatory access to quotation displayed at KSE and thus depriving them to match offer quoted at KSE.

The bids and offers of investors who entered into trading systems of one exchange cannot be matched with those entered at another exchange, even if the security being traded is listed at both exchanges and for that reason, ISE members has to route many orders of their clients (investors) through the members of KSE, resulting in large scale trading without being regulated by either of the exchanges. Moreover, investors at ISE have to pay higher out of pocket brokerage fees.

The ISE has alleged that the KSE abuses its dominant position in the relevant market, inter alia, due to the practices carried out by KSE and its members, which has the effect of preventing and distorting competition in the relevant securities market of Pakistan. The KSE and its members have maintained the said practices which prevent, restrict and distort competition in the relevant market and thus constitute "abuse of dominant position" in terms of Section 3 of the Ordinance.

The abuse of the dominant position of KSE and its members can be curtailed by requiring KSE, along with LSE and ISE, to enter into centralisation of all buying and selling interests so that each investor would have the opportunity for the best possible execution of his order, regardless of where in the system it originates, ISE added.

LSE remains listless

LAHORE (November 14 2008): The depressed sentiments continued on the Lahore Stock Exchange on Thursday while the index remained unchanged at 2825.36 amid marginally improved trading turnover. The market opened on a negative note and stayed in red zone throughout the day. Out of a total of 79 active issues, PTCL closed in minus column with a loss of 60 paisa while 78 companies remained unchanged at their previous levels.

The transaction volume increased to 1,500 shares as compared to Wednesday total trading of 900 shares. PTCL and PIAC registered trading of 1,000 and 500 shares respectively.

KSE 100 Index gets a nudge

KARACHI (November 14 2008): Buying in some select stocks supported the benchmark KSE-100 index to close in positive at 9,184.09 points level, slightly up by 0.95 points. Trading activity however remained dull with the ready market volume declining to 66,600 shares as compared to already low turnover of 73,500 shares traded a day earlier. No trading was witnessed at the futures counter.

The overall market capitalisation declined by Rs 2 billion to stand at Rs 2.827 trillion. Out of the total 18 active scrips, only two closed in positive and five in negative while the value of 11 scrips remained unchanged.

Gharibwal Cement was the overall volume leader of the day with 14,500 shares, however, it lost Re. 0.75 to close at Rs 16.62. National Assets closed at Re. 0.42, up by Re. 0.02 with 10,500 shares. Southern Electric lost Re. 0.10 to close at Rs 3.60 with 9,500 shares. Sui Southern Gas remained unchanged at Rs 27.91 with 7,600 shares.

Al Qaim Textile lost Re. 0.25 to close at Re. 1.00 with 5,000 shares. United Bank closed at Rs 68.25 without any change with 4,100 shares. Habib-ADM Limited lost Re. 0.56 to close at Rs 9.68 with 3,000 shares. Nimir Resins remained unchanged at Rs 5.05 with 2,500 shares. KESC closed at Rs 3.80 without any change with 2,000 shares. NBP remained unchanged at Rs 93.02 with 2,000 shares.

Siemens Pak and National Assets were the highest gainers and gained Rs 31.43 and Re. 0.02 to close at Rs 1250.00 and Re. 0.42 respectively while Gharibwal Cement and Habib-ADM Limited were the worst losers and lost Re. 0.75 and Re. 0.56 to close at Rs 16.62 and Rs 9.68 respectively.

Hasnain Asghar Ali at Aziz Fidahusein Securities said that Siemens Engineering made a difference, trade in the company broke the spell, and the index inched up. The news of a meeting between SECP and KSE board gripped the local bourses throughout the session, the intention of the likely proposal being deliberated is to reduce selling pressure, yet unfreeze the local bourses to avoid unmanageable circumstances. The recent surge in interest rate will, on the contrary, increase selling pressure as the locals are likely to join the band wagon, as, besides reduction in corporate profitability, the increase has whetted the thirst for the desired rate of return thus forcing the valuations to undergo a downward adjustment. Adding to the misery is the unabated decline in the international equity markets.

He said that the proposal, most probably under study, links to changing the range of the circuit breakers with focus on lower lock, besides this the criteria and eligibility of the stocks and sellers will also be discussed. Although the list of the privileged stocks likely to be supported by the government financed support fund, carrying the government run/owned companies have been made public, however to give the essence of 'support' it is the whisper that proposal to lift entire CFS holding is also being made.

Country to miss growth target by 1.5 percent in fiscal year 2009

KARACHI (November 14 2008): The State Bank of Pakistan on Thursday projected that the country will miss its Gross Domestic Products (GDP) target by 1.5 percent in FY09 and expected that the growth would be some 4 percent, the lowest in last six years. The country is witnessing over 6.5 percent GDP growth rate since FY03 and during FY08, the country's economy registered a growth of 5.8 percent.

The central bank in its detailed monetary policy statement presented the outlook of economy on Wednesday and said that poor law and order situation, besides structural weaknesses such as power shortages, etc, are responsible for slow economic growth during the current fiscal year.

"Although, growth during 2009 would be lower than the target of 5.5 percent and actual estimated growth of 5.8 percent in FY08, however economic growth would be maintained or even sacrificed depending on the evaluation of the trade-off between inflation and growth," the SBP said.

The SBP said that tight monetary policy is the only ingredient of the macroeconomic stabilisation programme and several changes in the fiscal, external, and financial sectors are required immediately in the medium term to put the economy back on track.

The central bank also projected that inflation is likely to decelerate during second half of FY09 following the positive impact of global commodity prices, which are declining. The SBP estimated some 14 percent YoY headline inflation from 25 percent in October 2008, while on average basis, inflation will be close to 21 percent for FY09; well above the 11 percent target for the year.

Import growth for FY09 is also expected to be around 2.0 percent and may even turn negative due to the declining oil prices in world market and slowdown in domestic demand due to a depreciated rupee.

However, the SBP has said that growth slowdown and recession in Pakistan's major trading partner countries, particularly US, EU, and Japan, is likely to have an adverse effect on our exports, which expected growth would be around 10 percent during FY09.

"As per projected imports and exports and assuming a continuation of existing trend in workers' remittances, the external current account deficit is estimated to stand between 6.2 to 6.8 percent of GDP," SBP said.

The SBP said that fiscal deficit will have to be cut considerably, even lower than the projected 4.7 percent of GDP target for FY09 with the government's commitment to eliminate reliance on borrowing from the SBP to finance fiscal deficit and the lower availability of external financing. The expected developments in the external and fiscal sectors will be reflected in a monetary growth of around 12 to 13 percent.

Pakistan seeks $9bn IMF bailout to avert crisis

ISLAMABAD (updated on: November 14, 2008, 20:13 PST): Pakistan has asked the International Monetary Fund for a $9 billion bailout along with help from other lenders to avert a balance of payments crisis, a finance ministry official said on Friday.

Credit ratings agency Standard & Poor's cited Pakistan's tardiness in securing foreign assistance for a decision on Friday to lower its rating on the nation's sovereign debt deeper into junk bond territory.

"We are asking $9 billion from the IMF, they are talking about $7.4 billion. IMF can give us up to $7.6 billion," a finance ministry official told Reuters on condition of anonymity.

Shaukat Tarin, Pakistan's top economic adviser, told Reuters on Thursday that the government would soon deliver a letter of intent to the IMF, paving the way for the world's lender of last resort to release funds rapidly.

Government is banking on goodwill towards a country undergoing a transition to democracy after more than 8 years of military rule.

The international community is concerned that an economic meltdown in Pakistan could play into the hands of al Qaeda and allied militant groups seeking to destabilise the Muslim nation of 170 million.

Another official told Reuters on Friday that the letter of intent would probably be sent before Monday, when potential donors are due to gather in Abu Dhabi for a "Friends of Pakistan" conference.

The conference of officials is not expected to result in loans being pledged, but it could pave the way for a ministerial meeting later.

Tarin told the Pakistan Senate on Thursday that the country was likely to receive $5-6 billion from the World Bank and other international financial institutions by December, according to the Associated Press of Pakistan.

He told Reuters a loan of $500 million from China could arrive within weeks.

Markets were disappointed when President Asif Ali Zardari and Tarin returned with little to show from a trip to Beijing last month to garner support from one of Pakistan's most steadfast allies.

China, like other potential lenders, is believed to have encouraged Pakistan to seek IMF assistance in order to introduce some discipline to economic management, analysts say.

Pakistani officials have been coy about saying whether a loan was being sought from the IMF due to domestic political considerations, but Tarin told the Senate that the Fund "has agreed to provide (a) facility on our own terms and conditions".

One condition would be that the government stops borrowing from the central bank, he added.

Finance Bill 2008

Thursday, June 12, 2008 - ISLAMABAD: Finance Minister Naveed Qamar on Wednesday presented the Finance Bill to give effect to the financial proposals of the federal government for the year beginning on the first day of July, 2008, and to amend certain laws. Following is the text of the bill.

WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2008, and to amend certain laws for the purposes hereinafter appearing;

It is hereby enacted as follows:-

1. Short title, extent and commencement.- (1) This Act may be called the Finance Act, 2008.

(2) It extends to the whole of Pakistan.

(3) It shall, unless otherwise provided, come into force on the first day of July, 2008.

2. Amendment of Act XLV of 1860. In the Pakistan Penal Code, 1860 (Act XLV of 1860), after section 489F, the following new section shall be inserted, namely:

“489G. Counterfeiting or using documents resembling national prize bonds or unauthorized sale thereof. Whosoever counterfeits or causes to counterfeit, or performs any act to use for any purpose whatsoever or delivers to any person, any document purporting to be, or in any manner resembling to the national prize bonds or the serial number of national prize bonds, or promotes the sale of national prize bonds or serial number of national prize bonds, in contravention of the rules made for that purpose, shall be punishable with the imprisonment for a term which may extend to five years, or with fine not exceeding one hundred thousand rupees, or with both.”.

3. Amendment of Schedule II, Act V of 1898. In the Code of Criminal Procedure, 1898 (Act V of 1898), in Schedule II, after the entries relating to section 489F, the following new entries shall be inserted, namely:-

“489G Counterfeiting or using documents resembling national prize bonds or unauthorized sale thereof would (attract) imprisonment of either description for five years or fine of 100,000 rupees or both (through) Court of Sessions or Magistrate of the first class”

4. Amendment of Act VII of 1947. In the Foreign Exchange Regulation Act, 1947 (VII of 1947), after section 23J the following new section shall be inserted, namely:-

“23 K Powers to impose penalty, etc.-

(1) Without prejudice to provisions of sections 3AA, 23 or 23B if any person, in the opinion of State Bank, contravenes any provision of this Act, or any order, rule, regulation or direction issued there under the State Bank may, impose penalty which may extend to one million rupees for each contravention and where the contravention is a continuous one with a further penalty which may extend to twenty thousand rupees for each day during which such contravention continues.

(2) Where the person guilty of such contravention is a company or other body corporate, every director, manager, secretary or other officer or agent thereof shall also be deemed guilty of such contravention if the contravention was committed with his knowledge or consent or if he did not exercise due diligence to prevent the commission of the offence.

(3) If any person, fails to pay any penalty imposed on him or it, within the time stipulated in the order imposing the penalty, the State Bank may, without any notice to such person, recover the amount of such penalty from any account, or assets, monetary or otherwise, of the defaulter held with State Bank or any bank or a financial institution.

(4) If any bank or financial institution to which notice has been sent under sub-section (3) fails to debit the amount of penalty under the said sub-section, it shall itself be liable to pay such amount to the State Bank, as if it had itself committed the contravention under sub-section (1)”.

5. Amendment of Ordinance XXV of 1961.- In the Petroleum Products (Development Surcharge) Ordinance, 1961 (XXV of 1961), the following further amendments shall be made, namely:-

(1) in section 2, -

(a) after sub-section (4B), the following new sub-section shall be inserted, namely:-

“(4C) “licensee” means the licensee defined under the Compressed Natural Gas (CNG) (Production and Marketing) Rules, 1992, or the Liquefied Petroleum Gas (Production and Distribution) Rules, 2001, as the case may be, and as specified by rules made under section 6;”; and

(b) in sub-section (5), after the words “First Schedule”, the words “and includes Compressed Natural Gas and Liquefied Petroleum Gas” shall be inserted; and

(2) in section 3, after sub-section (1), the following new sub-section shall be added, namely:-

“(1A) Every licensee shall pay to the Federal Government a development surcharge that may be prescribed by the rules made under section 6.”.

6. Amendment of Ordinance X of 1965.- In the Provincial Employees’ Social Security Ordinance, 1965 (W.P. Ordinance No. X of 1965), the following further amendments shall be made, namely. -

(1) In section 2, -

(a) in clause (8), in sub-clause (f), for the word “five”, occurring twice, the word “ten” shall be substituted; and

(b) in clause (25a), for the words “two hundred ten”, the words “three hundred and sixty” shall be substituted;

(2) in section 20, -

(a) in sub-section (1), after the word “rate” the words “not more than six per cent” shall be inserted; and

(b) in the proviso, for the word “two”, the word “four” and for the word “five”, the word “ten” shall respectively be substituted; and

(3) in section 20A, in sub-section (1), for the words “two hundred ten”, the words “three hundred and sixty” shall be substituted.

7. Amendment of Ordinance VI of 1968.- In the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (W.P. Ordinance No. VI of 1968), the following further amendments shall be made, namely: -

(1) in section 1, in sub-section (1), the words “West Pakistan” shall be omitted; and

(2) in the Schedule, in standing order 15, in paragraph (5), the words, full stop and comma “subsistence allowance of not less than fifty percentum of wages. If the workman is found not guilty, he shall be deemed to have been on duty during the period of suspension and shall be entitled” shall be omitted.

8. Amendments of Act IV of 1969. - In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-

(1) after section 3D, the following new section shall be inserted, namely;

“3DD. Directorate General of Post Clearance Audit (PCA). - The Directorate General of Post Clearance Audit (PCA) shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.”;

(2) in section 21, clause (ab) shall be omitted;

(3) in section 155F, in sub-section (1), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-

“Provided that the Collector of Customs may, in exceptional circumstances, after recording reasons in writing, suspend the use of unique user identifier of any person forthwith on receipt of any complaint or information about violation of the Customs Act, 1969 (IV of 1969).”;

(4) in section 156, in sub-section (1), in the Table, in column (1), against serial number 43, in column (3), after the word “owner” occurring for the first time, the words “or any other such person having custody of the aforesaid goods” shall be inserted;

(5) in section 179, in sub-section (3), for the word “ninety”, occurring for the first time, the words “one hundred and twenty” shall be substituted;

(6) in section 194-C, in sub-section (4), in clause (c), for the word “five” the word “ten” shall be substituted;6

(7) in section 195-C, after sub-section (4), following new sub-section (4A) shall be inserted, namely;-

“(4A) Notwithstanding anything contained in sub-section (4), the Chairman may, on the application of an aggrieved person for reasons to be recorded in writing and on being satisfied that there is an error in the order or decision, pass such order as he deems just and equitable.”; and

(8) the amendments set out in the Schedule to this Act shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969).

9. Amendment of Ordinance XVII of 1969.- The following further amendments shall be made in the Securities and Exchange Ordinance, 1969 (XVII of 1969), namely:-

(1) in section 2, in sub-section (1), in clause (cd), after the word “delivery” occurring for the first time, the words “or settlement” shall be inserted;

(2) for sections 15A and 15B, the following shall be substituted, namely:-

“15A. Prohibition of insider trading.-

(1) No person shall indulge in insider trading.

(2) Insider trading shall include, -

(a) an insider person transacting any deal, directly or indirectly, using inside information involving listed securities to which the inside information pertains, or using others to transact such deals;

(b) any other person to whom inside information has been passed or disclosed by an insider person transacting any deal, directly or indirectly, using inside information involving listed securities to which the inside information pertains, or using others to transact such deals;

(c) transaction by any person as specified in clauses (a) and (b), or any other person who knows, or ought to have known under normal and reasonable circumstances, that the information possessed and used for transacting any deal is inside information;

(d) an insider person suggesting or recommending to another person to engage in dealing in any listed securities to which the inside information possessed by the insider person pertains, without the inside information being disclosed to the person who has dealt in such securities.

(3) The following shall not be deemed as insider trading, -

(a) any transaction performed under an agreement that was concluded before the time of gaining access to inside information; or

(b) the disclosure of inside information by an insider person as required under law.

(4) No contract shall be void or unenforceable by reason only of an offence under this section.

15B. Inside information.-

1) “Inside information” means,

(a) information which has not been made public, relating, directly or indirectly to listed securities or one or more issuers and which, if it were made public, would be likely to have an effect on the prices of those listed securities or on the price of related securities;

(b) in relation to derivatives on commodities, information which has not been made public, relating, directly or indirectly, to one or more such derivatives and which are traded in accordance with accepted market practices on those markets; or

(c) in relation to persons responsible for the execution of orders concerning listed securities, information which is conveyed by a client to such person and related to the client’s pending orders.

15C. Insiders.-

(1) Insiders shall include, -

(a) sponsors, executive officers and directors of an issuer;

(b) sponsors, executive officers, directors and partners of a legal person or unincorporated business association, in which the issuer holds shares or voting rights, directly or indirectly, of twenty per cent or more;

(c) sponsors, executive officers, directors and partners of a legal person or unincorporated business association who holds, directly or indirectly, shares or voting rights of ten per cent or more in an issuer;

(d) sponsors, executive officers and directors of an organization, that has been engaged in the placement of listed securities or the public offer of securities or the issuing and marketing of such securities, who has had access to insider information during his employment till a period of one year after leaving employment;

(e) any natural person holding, directly or indirectly, ten per cent or more shares of an issuer;

(f) sponsors, executive officers and directors of credit institutions in which the issuer has an account;

(g) any person obtaining inside information as part of his employment or when discharging his usual duties in an official capacity, or in any other way relating to work performed under contract of employment or otherwise;

(h) any person obtaining inside information through unlawful means; and

(i) a spouse, lineal ascendant or descendant, partner or nominee of a person referred to in clauses (a) to (h).

15D. Listed companies responsibilities to disclose inside information.-

(1) Listed companies shall inform the public, in the manner specified by the Commission, as soon as possible of inside information which directly concerns the listed securities.

(2) Listed companies may delay the public disclosure of inside information, as referred to in sub-section (1) in order not to prejudice their legitimate interests, provided that such delay will not mislead the public and provided that the company is able to ensure the confidentiality of the information. The company shall inform the Commission of the decision to delay the public disclosure of inside information forthwith.

(3) Whenever a listed company or a person acting on its behalf, discloses any inside information to any third party in the normal exercise of employment, profession or duties, complete and effective public disclosure of that information must be made simultaneously in the manner specified by the Commission:

Provided that the provisions shall not apply if the person receiving the information owes a duty of confidentiality, regardless of whether such duty is based on a law, regulations, articles of association or contract.

(4) Listed companies or persons acting on its behalf, must maintain and regularly update a list of persons employed, under contract or otherwise in the manner specified by the Commission, who have access to inside information, and provide such list to the Commission whenever the Commission requests it.

(5) Persons discharging managerial responsibilities within a listed company and, where applicable, persons closely associated with them, shall notify the Commission of transactions conducted on their own account relating to the securities of such listed company in the manner specified by the Commission.

(6) The Exchanges shall adopt structural provisions, operating procedures and surveillance techniques to detect and prevent insider trading and market abuse practices, within such time as may be specified by the Commission and according to the regulations made hereunder.

15E. Liability for contravention.-

(1) Any person who contravenes the provisions of sub-section (1) of section 15A shall be liable to fine, to be imposed by the Commission, of rupees ten million or three times the amount of gain made or loss avoided by such person, or loss suffered by another person, whichever amount is higher.

(2) In addition to the fine imposed under sub-section (1), such person,-

(a) may be directed by the Commission, -

(i) to surrender to the Commission, an amount equivalent to the gain made or loss avoided by him; or

(ii) to pay any other person who has suffered a loss, an amount equivalent to the loss so suffered by such person; and

(b) may, where such person is an executive officer, director, auditor, advisor, consultant of a listed company, be removed from such office by an order of the Commission and debarred from auditing any listed company for a period of upto three years; or

(c) may, where such person is registered as a broker or agent, be liable to cancellation of registration.

(3) Where an insider person discloses inside information to any other person who is not required to possess such information for any reason, the insider person shall be liable to fine, to be imposed by the Commission, which may extend to rupees thirty million.

15F. Power to make Regulations.- The Commission may make regulations to regulate persons who produce or disseminate research concerning listed securities or issuers of listed securities and persons who produce or disseminate other information recommending or suggesting investment strategy, intended for distribution channels or for the general public.” ;

(3) in section 21, -

(a) in sub-section (1), in clause (b), after the word “any” occurring for the second time, the words “person or” shall be inserted;

(b) in sub-section (2), -

(i) after the word “Exchange”, occurring for the first time, the words “or any other person” shall be inserted; and

(ii) after the word “such”, occurring for the first time, the words “person or” shall be inserted;

(4) in section 32E, after sub-section (1), the following new sub-section (1A) shall be inserted, namely:-

“(1A) Without prejudice to the generality of the foregoing power and sub-section (2) of section 33, the rules made in pursuance of this section may inter alia provide for-

(a) the matters to be included in any scheme of demutualization and corporatization and the manner of its approval by the members of the stock exchange;

(b) the power of the Commission to approve any scheme of demutualization and corporatization including the power to impose any conditions;

(c) the process and procedure to be followed for purposes of demutualization and corporatization;

(d) matters regarding appointment of directors and chairman of the board of a stock exchange after demutualization, including but not limited to restrictions, if any, on such appointments;

(e) restriction of rights, if any, attached to the shares issued pursuant to corporatization;

(f) matters including restrictions, if any, on disinvestment, further issue and sale and purchase of shares of a stock exchange after demutualization;

(g) matters regarding limits or restriction on holding of shares by different categories of shareholders of a stock exchange, and the requirement for divestment of shares by shareholders in particular circumstances; and

(h) matters regarding trading rights on a stock exchange and restrictions if any in this regard.”.

10. Amendment of Ordinance, XX of 1969. - In the Minimum Wages for Unskilled Workers Ordinance, 1969 (W.P. Ordinance No. XX of 1969), in the Schedule, in column (2), for the figure “4600”, occurring thrice, the figure “6000” shall be substituted.

11. Amendments of Ordinance No. XXXVI of 1971. - In the Workers Welfare Fund Ordinance, 1971 (XXXVI of 1971), the following further amendments shall be made, namely: -

(1) in section 2, in clause (f) after sub-clause (iv), the following new sub-clause shall be added, namely.-

“(iva) any establishment, to which the West Pakistan Shops and Establishment Ordinance, 1969 (W.P. Ordinance No.VIII of 1969), for the time being applies;”;

(2) in section 4,

(a) in sub-section (1), the words “of so much” and “as is assessable under the Ordinance” shall be omitted;

(b) in sub-section (4) the words and comma “At the time of making an assessment under the Ordinance, or as soon thereafter as may be the” and “on the basis of the income so assessed” shall be omitted; and

(c) in sub-section (5) for the word “assessed” the word “total” shall be substituted and the words “subsequent to the assessment made under the Ordinance” shall be omitted; and

(3) in section 11-B, in sub-section (3) after the word “sanction” at the end the words “with the previous approval of the Governing Body” shall be added.

12. Amendments of Act XIV of 1976. - In the Employees’ Old-age Benefits Act, 1976 (XIV of 1976), the following further amendments shall be made, namely: -

(1) in section 1, in sub-section (4), -

(a) in clause (i), -

(i) for the word “ten”, occurring twice, the word “five” shall be substituted; and

(ii) for the colon at the end, a full stop shall be substituted and thereafter the proviso shall be omitted; and

(b) in clause (ia) for the word “twenty”, the word “five” shall be substituted;

(2) in section 9, in sub-section (1), for the word “six” the word “five” shall be substituted;

(3) in section 22, in sub-section (2), in clause (ii), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely: -

“Provided that nothing in this section shall apply to an employee insured under the provisions of this Act on or after 1st day of July, 2008.”;

(4) in section 47, clause (e) shall be omitted; and

(5) In the Schedule, -

(a) for paragraph (2), the following shall be substituted, namely: -

“(2) The monthly wages of an insured person, referred to in paragraph (1), shall be calculated on the basis of wages on which contributions were paid in respect of the twelve calendar months immediately preceding the date on which insured person fulfils the conditions for entitlement to any benefits under this Act:

Provided that the old-age pension or invalidity pension payable to an insured person and survivor’s pension payable to the survivors of the deceased insured person shall not be less than two thousand rupees per month for pension commencing on or after 1st day of July, 2008.”; and

(b) in paragraph (3) for the figure “2007” the figure “2008” shall be substituted.

13. Amendment of Ordinance XXXI of 1980.- In the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (XXXI of 1980), the following further amendments shall be made, namely: -

(1) after section 18, the following new section shall be inserted, namely: -

“18A. Power to issue directions.-(1) Notwithstanding anything contained in any other provision of this Ordinance, where the Registrar is satisfied that it is necessary and expedient so to do, -

(a) in the public interest; or

(b) to prevent the affairs of any modaraba from being conducted in a manner detrimental to the interest of holders of Modaraba Certificates; or

(c) to secure the proper management of any modaraba generally, he may issue such directions to a modaraba company or the modaraba companies generally, as he may deem fit, and the modaraba company and its management shall be bound to comply with such directions.

(2) The Registrar may, on a representation made to him or on his own motion, modify or withdraw any direction issued under sub-section (1) and in so modifying or cancelling any direction may impose such conditions as he thinks fit.”;

(2) after section 41, the following new sections shall be inserted, namely: -

“41A. Power to make regulations.- (1) The Commission may, by notification in official Gazette, make such regulations as are necessary to carry out the purposes of this Ordinance:

Provided that the power to make regulations conferred by this section shall be subject to the condition of previous publication and before making any regulations the draft thereof shall be published in the manner considered most appropriate by the Commission for eliciting public opinion thereon within a period of not less than fourteen days from the date of publication.

(2) Any regulation made under sub-section (1) may provide that a contravention thereof shall be punishable with a fine which may extend to one hundred thousand rupees and where the contravention is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which such contravention continues.

41B. Power to issue directives, circulars, codes, guidelines, etc.- The Commission may issue such directives, circulars, codes, guidelines or notifications as are necessary to carry out the purposes of this Ordinance and the rules and regulations made under this Ordinance.”

14. Amendment of Ordinance XLVII of 1984. The following further amendments shall be made in the Companies Ordinance, 1984 (XLVII of 1984), namely:-

(1) in section 158,

(a) in sub-section (1), for the word “three” the word “four” shall be substituted; and

(b) in sub-section (4),

(i) in clause (a), for the word “twenty”, the word “fifty” shall be substituted, and for the word “fifty” the words “five hundred” shall be substituted; and

(ii) in clause (b), for the word “ten”, the words “one hundred” shall be substituted;

(2) in section 187,

(a) in clause (h), in sub-clause (iv), after the semicolon the word “and” shall be omitted;

(b) in clause (j), the words “member of a Stock Exchange” shall be omitted and for the words “member”, occurring for the second time the words and comma “person or is a sponsor, director or officer of a corporate brokerage house” shall be inserted; and

(c) after the proviso, the following new proviso shall be added, namely:-

“Provided further that the prohibition contained in clause (j) shall not apply where the company is a stock exchange.”;

(3) in section 206, in sub-section (2),

(a) in clause (b), the word “and”, at the end, shall be omitted; and

(b) in clause (c) for the full stop, at the end, a semicolon shall be substituted and thereafter the following new clauses shall be inserted, namely:-

“(d) an agreement or contract with an NBFC licensed to undertake asset management services in relation to an investment company registered with the Commission; and

(e) an agreement or contract with an NBFC licensed as a venture capital company in relation to a fund registered with the Commission.”;

(4) in section 208, in sub-section (2A), in clause (b), after the word “to” the words “such class of” shall be omitted;

(5) in section 233,

(a) in sub-section (1),for the word “three” the word “four” shall be substituted;

(b) in sub-section (4),

(i) after the word “shall”, occurring for the first time, the words “in the form and manner specified by the Commission” shall be inserted; and

(ii) the words “the registered address of” shall be omitted;

(6) in section 251, in sub-section (1), for the words “forty-five days of the declaration in the case of a listed company and within thirty days in the case of any other company”, the words “such time as specified by the Commission” shall be substituted;

(7) in section 282G, in sub-section (2), after the word “rules”, wherever occurring, the words “or regulations” shall be inserted;

(8) in section 282J, in sub-section (2), after the word “rules” the words “or regulations” shall be inserted;

(9) in section 282K, in sub-section (1), after the word “rules” the words “or regulations” shall be inserted; and

(10) in section 282M, in sub-section (1), after the word “rules” the words “or regulations” shall be inserted.

15. Amendments of Finance Act 1989 (V of 1989). The following further amendment shall be made in Finance Act 1989 (V of 1989), namely:

(1) In section 7,

(a) in sub-section (1), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-

“Provided that in case of a bank, the capital value tax shall be paid when general power of attorney is used to enforce the mortgage of property offered as collateral for obtaining loan.”;

(b) for clause (e) the following shall be substituted, namely:

“(e) urban area” means area falling within the limits of

(i) the Islamabad Capital Territory;

(ii) a Cantonment Board;

(iii) the rating areas as defined under the Urban Immovable Property Act, 1958 (W.P V of 1958) as in force in Punjab, NWFP, Sindh and Balochistan except where the rate under section 117 of the respective Provincial Local Government Ordinance, 2001 is zero;

(iv) in addition to (iii) up to forty kilometres from the outer limits of the Cantonment Boards in Karachi and up to forty kilometres from the notified rated areas of Karachi City District;

(v) in addition to (iii) up to thirty kilometres from the outer limits of the Cantonment Boards in Lahore and Faisalabad and up to thirty kilometres from the notified rated areas of Lahore and Faisalabad City District;

(vi) in addition to (iii) in all cases other than Karachi, Lahore and Faisalabad up to ten kilometres from the outer limits of the Cantonment Boards and up to ten kilometres from the notified rated areas; and

(vii) such areas the Federal Board of Revenue may, from time to time, by notification in the official Gazette, specify.”

16. Amendments of the Sales Tax Act, 1990. In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-

(1) in section 2,

(i) for sub-section (2A), the following shall be substituted, namely:-

“(2A) “arrears”, in relation to a person, means, on any day, the sales tax due and payable by the person under this Act before that day but which has not yet been paid,”; and

(ii) for clause (3), the following shall be substituted, namely:

“(3) associates (associated persons)” means,

(i) subject to sub-clause (ii), where two persons associate and the relationship between the two is such that one may reasonably be expected to act in accordance with the intentions of the other, or both persons may reasonably be expected to act in accordance with the intentions of a third person;

(ii) two persons shall not be associates solely by reason of the fact that one person is an employee of the other or both persons are employees of a third person;

(iii) without limiting the generality of sub-clause (i) and subject to sub-clause (iv), the following shall be treated as associates, namely:

(a) an individual and a relative of the individual;

(b) members of an association of persons;

(c) a member of an association of persons and the association, where the member, either alone or together with an associate or associates under another application of this section, controls fifty per cent or more of the rights to income or capital of the association;

(d) a trust and any person who benefits or may benefit under the trust;

(e) a shareholder in a company and the company, where the shareholder, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons

(i) fifty per cent or more of the voting power in the company;

(ii) fifty per cent or more of the rights to dividends; or

(iii) fifty per cent or more of the rights to capital; and

(f) two companies, where a person, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons

(i) fifty per cent or more of the voting power in both companies;

(ii) fifty per cent or more of the rights to dividends in both companies; or

(iii) fifty per cent or more of the rights to capital in both companies.

(iv) two persons shall not be associates under clause (a) or (b) of sub-clause (iii) where the Collector is satisfied that neither person may reasonably be expected to act in accordance with the intentions of the other.

(v) In this clause, “relative” in relation to an individual, means

(a) an ancestor, a descendant of any of the grandparents, or an adopted child, of the individual, or of a spouse of the individual; or

(b) a spouse of the individual or of any person specified in clause (a).”;

(iii) clause (3A) shall be renumbered as clause (3AA) and before clause (3AA), renumbered as aforesaid, the following shall be inserted, namely:-

“(3A) “association of persons” includes a firm, a Hindu undivided family, any artificial juridical person and any body of persons formed under a foreign law, but does not include a company;”;

(iv) for clause (4), the following shall be substituted, namely:

“(4) “Board” means the Federal Board of Revenue established under section 3 of the Federal Board of Revenue Act, 2007;”;

(v) clause (5AA) shall be renumbered as (5AAA) and before clause (5AAA), renumbered as aforesaid, the following shall be inserted, namely:-

“(5AA) “company” means-

(a) a company as defined in the Companies Ordinance, 1984 (XL VII of 1984);

(b) a body corporate formed by or under any law in force in Pakistan;

(c) a modaraba;

(d) a body incorporated by or under the law of a country outside Pakistan relating to incorporation of companies;

(e) a trust, a co-operative society or a finance society or any other society established or constituted by or under any law for the time being in force; or

(f) a foreign association, whether incorporated or not, which the Board has, by general or special order, declared to be a company for the purposes of the Income Tax Ordinance 2001 (XLIX of 2001);

(vi) for clause (6B), the following shall be substituted, namely:-

“(6B) “default surcharge” means the default surcharge levied under section 34;”;

(vii) in clause (9), for the words, “Federal Government”, the word “Board”, shall be substituted;

(viii) after clause (11), the following new clause shall be inserted, namely:-

“(11A) “firm” means the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all;”;

(ix) in clause (13) the word “lawfully” shall be omitted;

(x) for clause (14), the following shall be substituted, namely:

“(14) “input tax”, in relation to a registered person, means-

(a) tax levied under this Act on supply of goods to the person;

(b) tax levied under this Act on the import of goods by the person;

(c) in relation to goods or services acquired by the person, tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services; and

(d) Provincial sales tax levied on services rendered or provided to the person;

(xi) for clause (20), the following shall be substituted, namely:

“(20) “output tax”, in relation to a registered person, means-

(a) tax levied under this Act on a supply of goods, made by the person;

(b) tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services, by the person;

(c) Provincial sales tax levied on services rendered or provided by the person;”

(xii) for clause (21), the following shall be substituted, namely:

“(21) “person” means,

(a) an individual;

(b) a company or association of persons incorporated, formed, organized or established in Pakistan or elsewhere;

(c) the Federal Government;

(d) a Provincial Government;

(e) a local authority in Pakistan; or

(f) a foreign government, a political subdivision of a foreign government, or public international organization;”;

(xiii) after clause (22), the following new clause shall be added, namely:-

“(22A) “Provincial sales tax” means tax levied under.-

(a) the Balochistan Sales Tax Ordinance, 2000 (I of 2000);

(b) Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001);

(c) the Punjab Sales Tax Ordinance, 2000 (Pb. Ord. II of 2000);

(d) the North West Frontier Province Sales Tax Ordinance, 2000 (III of 2000); and

(e) the Sindh Sales Tax Ordinance, 2000 (VIII of 2000);”;

(xiv) clause (28A) shall be omitted;

(xv) clause (29A) shall be renumbered as (29AA) and before clause (29AA), renumbered as aforesaid, the following shall be inserted, namely:-

“(29A) “sales tax” means-

(a) the tax, additional tax, or default surcharge levied under this Act;

(b) a fine, penalty or fee imposed or charged under this Act; and

(c) any other sum payable under the provisions of this Act or the rules made there under;”;

(xvi) in clause (31), for the word “resemble”, the word “resembles” shall be substituted;

(xvii) for clause (33), the following shall be substituted, namely:

“(33) “supply,” means a sale or other transfer of the right to dispose of goods as owner, including such sale or transfer under a hire purchase agreement: Provided that the Federal Government, may by notification in the official Gazette, specify such other transactions which shall or shall not constitute supply:”;

(xviii) for clause (34), the following shall be substituted, namely:

“(34) “tax”, unless the context requires otherwise, means sales tax;”;

(xix) for clause (35), the following shall be substituted, namely:

“(35) “taxable activity”, means any economic activity carried on by a person whether or not for profit, and includes-

(a) an activity carried on in the form of a business, trade or manufacture;

(b) an activity that involves the supply of goods, the rendering or providing of services or both to another person;

(c) a one-off adventure or concern in the nature of a trade; and

(d) anything done or undertaken during the commencement or termination of the economic activity, but does not include-

(a) the activities of an employee providing services in that capacity to an employer;

(b) an activity carried on by an individual as a private recreational pursuit or hobby; and

(c) an activity carried on by a person other than an individual which, if carried on by an individual, would fall within clause (b).”;

(xx) in clause (43), for semi colon, occurring first time, a comma shall be substituted;

(xxi) for clause (44), the following shall be substituted, namely:

“(44) “time of supply,” in relation to,

(a) a supply of goods, other than under hire purchase agreement, means the time at which the goods are delivered or made available to the recipient of the supply;

(b) a supply of goods under a hire purchase agreement, means the time at which the agreement is entered into; and

(c) services, means the time at which the services are rendered or provided;”;

“(44A) “trust”, means an obligation annexed to the ownership of property and arising out of the confidence reposed in and accepted by the owner, or declared and accepted by the owner for the benefit of another, or of another and the owner, and includes a unit trust;

“(44AA) “unit trust”, means any trust under which beneficial interests are divided into units such that the entitlements of the beneficiaries to income or capital are determined by the number of units held”; and

(xxii) in clause (47), the comma and the words”, and a person who in addition to making retail supplies is engaged in wholesale business” shall be omitted.

(2) in section 3,-

(a) for the word “fifteen”, wherever occurring, the word “sixteen” shall be substituted; and

(b) sub-section (4) shall be omitted;

(3) section 3AA shall be omitted;

(4) in section 7, in sub-section (1), for the proviso, the following shall be substituted, namely:-

“Provided that where a registered person did not deduct input tax within the relevant period, he may claim such tax in the return for any of the six succeeding tax periods.”;

(5) in section 8, in sub-section (1), in clauses (a), (b) and (ca) after the word “goods” the words “or services” shall be inserted;

(6) in section 8B, in sub-section (1), in the first proviso, the words “after the start of production of a new unit”, shall be omitted;

(7) in section 10, in sub-section (1), for the first proviso, the following shall be substituted, namely:-

“Provided that in case of excess input tax against supplies other than zero-rated or exports, such excess input tax may be carried forward to the next tax period and shall be treated as input tax for that period and the Board may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, prescribe the procedure for refund of such excess input tax;”;

(8) in section 11, in sub-section (4),

(a) after the word “given”, the words “within five years” shall be inserted; and

(b) in the proviso, for the word “ninety”, occurring twice, the words, “one hundred and twenty”, shall be substituted;

(9) in section 13, in sub-section (2), in clause (a), after the word “or” occurring for the first time, the words “import or supply of” shall be inserted;

(10) in section 25, in sub-section (2), in the proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be inserted, namely:-

“Provided further that nothing in this sub-section shall bar the sales tax officer from conducting audit of the records of the registered person if the same were earlier audited by the office of the Auditor-General of Pakistan”;

(11) in section 26, in sub-section (3), for the word “ninety”, the words “one hundred and twenty”, shall be substituted;

(12) section 26AA shall be omitted;

(13) in section 30, after clause (f), the following new clause shall be inserted, namely:-

“(ff) a Senior Auditor of Sales Tax;”;

(14) section 32AA shall be omitted;

(15) in section 33,

(a) the brackets and figure “(1)”, appearing for the first time, shall be omitted; and

(b) in the TABLE, in column (1), serial number 20 and the entries relating thereto in columns (2) and (3) shall be omitted;

(16) in section 34, in sub-section (1),

(a) in clause (a),

(i) the words and comma “for the first six months of default,” shall be omitted; and

(ii) after the word “one”, the words “and half” shall be inserted;

(c) after semi colon at the end, the word “and” shall be added; and

(ii) clause (b) shall be omitted;

(17) in section 36, in sub-section (3), in the proviso, for the word “ninety”, occurring twice, the words, “one hundred and twenty”, shall be substituted;

(18) in section 45A, in sub-section (2), for the words, brackets and figure “sub-section (1)”, the words “this section”, shall be substituted;

(19) in section 45-B, in sub-section (2), in the first and second provisos, for the word, “ninety”, occurring twice, the words, “one hundred and twenty”, shall be substituted;

(20) in section 46,

(a) for sub-section (1), the following shall be substituted, namely:-

“(1) Any person including an officer of Sales Tax not below the rank of an Additional Collector, aggrieved by any order passed by

(a) the Collector of Sales Tax (Appeals) under section 45B,

(b) the Collector of Sales Tax through adjudication or under any of the provisions of this Act or rules made there under,

(c) the Board under section 45A, may, within sixty days of the receipt of such decision or order, prefer appeal to the Appellate Tribunal.”;

(b) in sub-section (7), for the words, “six”, the word, “eight”, shall be substituted;

(c) in sub-section (9),

(i) in clause (a), for the words “fifteen hundred thousand”, the words “ten million” shall be substituted; and

(ii) in clause (b), for the words “fifteen hundred thousand”, the words “ten million” shall be substituted;

(21) in section 47A, after sub-section (4), the following new sub-section shall be inserted, namely:

“(4A) Notwithstanding anything contained in sub-section (4), the Chairman may on the application of an aggrieved person, for reasons to be recorded in writing, and on being satisfied that there is an error in order or decision may pass such order as he deems just and equitable.”;

(22) section 50 shall be numbered as sub-section (1) of that section and after sub-section (1), renumbered as aforesaid, the following new sub-section shall be added, namely:-

“(2) All rules made under sub-section (1) or any other provisions of this Act, shall be collected, arranged and published along with general orders and departmental instructions and rulings, etc, if any, at appropriat e intervals and sold to the public at reasonable price”;

(23) after section 58, the following shall be inserted, namely:-

“58A. Representatives. (1) For the purpose of this Act and subject to sub-sections (2) and (3), “representative” in respect of a registered person, means

(a) where the person is an individual under a legal disability, the guardian or manager who receives or is entitled to receive income on behalf, or for the benefit of the individual;

(b) where the person is a company (other than a trust, a Provincial Government, or local authority in Pakistan), a director or a manager or secretary or agent or accountant or any similar officer of the company;

(c) where the person is a trust declared by a duly executed instrument in writing whether testamentary or otherwise, any trustee of the trust;

(d) where the person is a Provincial Government, or local authority in Pakistan, any individual responsible for accounting for the receipt and payment of money or funds on behalf of the Provincial Government or local authority;

(e) where the person is an association of persons, a director or a manager or secretary or agent or accountant or any similar officer of the association or, in the case of a firm, any partner in the firm;

(f) where the person is the Federal Government, any individual responsible for accounting for the receipt and payment of moneys or funds on behalf of the Federal Government; or

(g) where the person is a public international organization, or a foreign government or political sub-division of a foreign government, any individual responsible for accounting for the receipt and payment of moneys or funds in Pakistan on behalf of the organization, government, or political sub-division of the government.

(2) Where the Court of Wards, the Administrator General, the Official Trustee, or any receiver or manager appointed by, or under, any order of a Court receives or is entitled to receive income on behalf, or for the benefit of any person, such Court of Wards, Administrator General, Official Trustee, receiver, or manager shall be the representative of the person for the purposes of this Act.

(3) Subject to sub-section (4), where a person is a non-resident person, the representative of the persons for the purpose of this Act for a tax year shall be any person in Pakistan:

(a) who is employed by, or on behalf of, the non-resident person;

(b) who has any business connection with the non-resident person;

(c) from or through whom the non-resident person is in receipt of any income, whether directly or indirectly;

(d) who holds, or controls the receipt or disposal of any money belonging to the non-resident person;

(e) who is the trustee of the non-resident person; or

(f) who is declared by the Collector by an order in writing to be the representative of the non-resident person.

(4) No person shall be declared as the representative of a non-resident person unless the person has been given an opportunity by the Collector of being heard.

58B. Liability and obligations of representatives. (1) Every representative of a person shall be responsible for performing any duties or obligations imposed by or under this Act on the person, including the payment of tax.

(2) Subject to section 58 and sub-section (5) of this section, any tax that, by virtue of sub-section (1), is payable by a representative of a registered person shall be recoverable from the representative only to the extent of any assets of the registered person that are in the possession or under the control of the representative.

(3) Every representative of a registered person who pays any tax owing by the registered person shall be entitled to recover the amount so paid from the registered person or to retain the amount so paid out of any moneys of the registered person that are in the representative’s possession or under the representative’s control.

(4) Any representative, or any person who apprehends that he may be assessed as a representative, may retain out of any money payable by him to the person on whose behalf he is liable to pay tax (hereinafter in this section referred to as the “principal”), a sum equal to his estimated liability under this Act, and in the event of disagreement between the principal and such a representative or a person as to the amount to be so retained, such representative or person may obtain from the Collector a certificate stating the amount to be so retained pending final determination of the tax liability, and the certificate so obtained shall be his authority for retaining that amount.

(5) Every representative shall be personally liable for the payment of any tax due by the representative in a representative capacity if, while the amount remains unpaid, the representative

(a) alienates, charges or disposes of any moneys received or accrued in respect of which the tax is payable; or

(b) disposes of or parts with any moneys or funds belonging to the registered person that is in the possession of the representative or which comes to the representative after the tax is payable, if such tax could legally have been paid from or out of such moneys or funds.

(6) Nothing in this section shall relieve any person from performing any duties imposed by or under this Act on the person which the representative of the person has failed to perform.