News Update Times

Lahore (Muhammad Yasir) BankIslami has reported its highest-ever profitability during financial year 2020. Profit after tax closed at Rs. 1.70 billion, up by 56% comparing with profitability of Rs. 1.09 billion during the financial year 2019. Despite downward adjustment in policy rate, net spreads of the Bank increased by 16% on account of 21% growth in earning assets and improvement in CASA deposit mix to 64% from 60% in Dec’19. Total deposits and current account deposit of the Bank rose by 23% and 33% respectively despite all challenges due to spread of COVID-19 pandemic. To remain resilient against ensuing credit risk from economic slowdown and to counter potential delinquencies, the Bank also booked additional provisioning on prudent basis during the outgoing year.

During the year 2020, the Bank was also successful in completing the IPO of Pakistan’s First Shariah Compliant and Listed Additional Tier-1 Sukuk, carrying the brand of ‘Ehad Sukuk’. Total size of the Ehad Sukuk is Rs. 2 billion. The issuance of this capital instrument has paved the way for BankIslami to enhance its financing portfolio and deposit base.

Timely support measures taken by the Government of Pakistan (GoP) and State Bank of Pakistan (SBP) effectively addressed the pressures emanating from pandemic on various businesses and households.  Considering gradual improvement in market appetite on the back of endeavours being made by Government and SBP to enhance private sector financing, the Bank is working on efficiently increasing its exposure towards rated Corporate clients, Government-backed avenues, Auto Finance, Low Cost Housing Schemes, Agri Finance and FI placements. Furthermore, the Bank will continue with its current strategy to capture low-cost CASA deposits which will in turn provide stable returns during the prevailing low benchmark rate regime.

FRANKFURT: The United Arab Emirates, a magnet for the globe’s ultra-rich, has also emerged as one of the fastest-growing corporate tax havens, according to a study released on Tuesday that highlighted $200 billion-plus flowing into the country.

The index by the Tax Justice Network, which documents countries that attract companies to shrink their tax bills, added the United Arab Emirates to its top-10 ranking, which includes Switzerland and Bermuda.

Britain’s offshore territories the British Virgin Islands (BVI), the Cayman Islands and Bermuda were named as the most significant jurisdictions used by companies to minimise their tax, followed by the Netherlands.

The United Arab Emirates joined the top ranking at number 10 after multi-nationals rerouted over $218 billion of foreign direct investment via the Netherlands to the UAE to save taxes, the study said, bolstering financial activity by almost 180%.

A Dutch finance ministry spokeswoman said it had introduced a withholding tax to target flows of money to low-tax countries, including the United Arab Emirates and Bermuda, and to prevent the Netherlands being used as a conduit. It estimates, however, that the money flows are lower.

The UAE did not respond to a request for comment.

The Tax Justice Network, a group funded by donations and campaigning for transparency, said its study measured multinational activity, as well as tax rates and loopholes. While companies are not forbidden from using loopholes, the practice is viewed critically.

“You don’t need to be a tax expert to see why a global tax system programmed by a club of rich tax havens is haemorrhaging over $245 billion in lost corporate tax a year,” said Alex Cobham, Tax Justice Network’s chief executive.

Dubai, a party capital in the United Arab Emirates and a magnet for social media influencers, was hit hard by the pandemic as lockdowns hurt tourism and shopping while lower oil prices weighed on the Gulf state’s revenues.

To counter the decline in local population and revive a struggling property market, after job cuts prompted many expatriates, who make up the majority of the population, to leave, it redoubled efforts to boost the economy.

The government loosened rules to encourage international companies to establish a local foothold and bolstered schemes offering visas to rich foreigners.

The country has been criticised by the Financial Action Task Force, the global dirty-money watchdog. UAE recently approved the creation of a new government office to tackle money laundering and terrorist financing.

CALIFORNIA: Futures tracking the Nasdaq 100 index rebounded about 2% on Tuesday, a day after a steep selloff, as US bond yields retreated and investors scooped up beaten-down technology stocks.

Tesla Inc advanced about 4%, while Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp jumped about 2% each in early trading.

US 10-year Treasury bond yields eased to 1.54%, 6 basis points lower than its highest level this year. Longer-dated yields have jumped over the last month as investors price in faster-than-expected economic rebound and higher inflation.

Signs that a $1.9 trillion coronavirus relief packaged was closing in on final approval sparked a spike in yields on Monday, pushing the tech-heavy Nasdaq to close more than 10% below its Feb. 12 closing high that confirmed a correction.

Higher yields can weigh even more on tech and growth stocks with lofty valuations, as they threaten to erode the value of their longer-term cash flows.

“The firesale in many big tech names has been driven by fears of how higher yields will damage the attractiveness of these high flyers,” said Chris Beauchamp, chief market analyst at IG in London.

“But with many now much cheaper (compared to where they were) some will be eyeing up the sector, even if only for a quick rebound.”

The Dow on the other hand hit an intraday record high in the previous session as investors favored stocks primed to benefit from an economic reopening.

The global economic outlook has brightened as vaccine rollouts gain speed and the United States launches a vast new stimulus package, the Organisation for Economic Cooperation and Development said, hiking the policy forum’s forecasts.

Video game retailer Gamestop was set to gain for the fifth consecutive session, up 16.4% at $226.47 premarket, building on Monday’s 41.2% gain after the company said it had tapped shareholder Ryan Cohen to lead a shift towards e-commerce.

At 6:25 a.m. ET, Dow E-minis were up 191 points, or 0.6%, S&P 500 E-minis were up 42.5 points, or 1.11% and Nasdaq 100 E-minis were up 291.75 points, or 2.37%.

Lahore (Muhammad Yasir) Faysal Bank Limited and Akhuwat have come together in a strategic partnership to promote Shariah compliant affordable housing, under the Government of Pakistan’s low-cost housing finance facility for low-income individuals. The memorandum of understanding (MoU) was signed by Faysal Bank’s Head of Corporate & Investment Banking, Mr. Ali Waqar, and Dr. Amjad Saqib, CEO of Akhuwat.

Akhuwat is the world’s largest interest-free microfinance organization that constantly works to alleviate poverty and empower socially and economically marginalized communities. As part of the partnership, Akhuwat will assist Faysal Bank in the identification of eligible individuals who desire to obtain the affordable housing facility.

In turn, Faysal Bank the fastest growing Islamic and Best Emerging Bank of the country will proceed with the disbursement of affordable housing finance facility to the applicants as recommended by Akhuwat. Faysal Bank is among the earliest banks to have joined hands with Akhuwat, harnessing access to a greater network of potential clients from across the country who can benefit from the low-cost housing facility within the Shariah principles.

Expressing his views on this partnership, Mr. Yousaf Hussain, President and CEO of Faysal Bank said, “We are delighted to move forward in our mission to promote financial inclusivity. Through this partnership with Akhuwat, we look forward to uplifting the living standards of underprivileged communities, ensuring the provision of sustainable low-cost housing units to deserving people with low income, while also promoting the overall social and economic growth of the country.”

Dr. Amjad Saqib, CEO Akhuwat, also added, “This partnership with Faysal Bank has strengthened our efforts to assist deserving families in the country. Insha’Allah with Akhuwat and Faysal Bank’s collective efforts, we will make affordable housing a reality for everyone”.

Lahore (Muhammad Yasir)  Santex Products Private Limited, a leading name in the personal hygiene care industry in Pakistan, has signed an MoU with Sindh Prisons and Correctional Services Department (Government of Sindh) and Committee for the Welfare of Prisoners- Legal Aid Society (CWP-LAO), to improve the access of menstrual products to female prisoners in Karachi, Hyderabad, Sukkur & Larkana.

Adequate access to safe sanitary products has always been a struggle due to the shame and stigma that surrounds periods. The situation is even more unsettling for the incarcerated women whose menstrual needs largely go unmet due to lack of resources.

Santex Products through its Butterfly Outreach program has been donating monthly supplies of sanitary napkins to the prisons to ensure accessibility of necessary menstrual hygiene products for inmates. Awareness sessions are also being conducted on Menstrual Hygiene Management (MHM) to educate female prisoners about the importance of safe feminine hygiene practices. The MoU with the Sindh Prisons and Correctional Services Department and CWP-LAO is a further extension of these efforts on a formal ground.

Speaking about the importance of this partnership, Ms. Rodrigues, Marketing Lead Santex Products, said, “We believe every woman from any walk of life, should be able to go through her monthly cycle with dignity. Access to menstrual products is a challenge for most and we are happy to see our joint efforts with CWP-LAO and Sindh Prisons Departments will result in better access and personal hygiene awareness for the female inmates”

Inspector General of Prisons (IGP) Sindh, Mr.  Kazi Nazeer Ahmed shared that this partnership initiative is an avenue to promote healthy recreational activities for inmates, also resulting in their improved mental health. It will support to secure improved rights for menstruating populations in prisons through ensuring improvement in the knowledge, attitude and practice parameters related to menstrual health of prisoners and prison staff.

Speaking on this signing ceremony, Justice (R) Nasir Aslam Zahid, Chairperson, CWP-LAO stated that “incarcerated women are less likely than males to have outside financial support and they do not earn enough from in-prison jobs to pay for necessities quantities are often limited and not always available when needed. it will be easier to ensure more visibility of the excellent work carried out through this partnership by Santex Products and the Sindh Prison Department, thus to improve confidence and self-esteem among the women inmates and the initiative will also help reduce anxiety amongst them.

Santex Products’s Butterfly Outreach Program aims to transform cultural attitudes, as well as break down barriers for women in the most practical ways, by helping them achieve their basic rights.