The Pakistan Stock Exchange is witnessing another upward trend, with the index crossing the 86,000-point mark again today during intra-day trading.
On the third business day of the week, PSX showed positive momentum. Investor interest led to a 609-point increase, pushing the KSE-100 index past the 86,000-point level once more.
The 100 index has now reached 86,449 points.
On the other side, the 23rd Shanghai Cooperation Organisation (SCO) summit has commenced in Islamabad, with Prime Minister Shehbaz Sharif delivering the keynote address at the Jinnah Convention Centre.
The summit, held under tight security, welcomed leaders and representatives from across the region.
Key attendees include Chinese Premier Li Qiang, Russian Prime Minister Mikhail Mishustin, and leaders from Tajikistan, Kyrgyzstan, Belarus, Kazakhstan, Uzbekistan, and Iran.
India is represented by External Affairs Minister S. Jaishankar, while Mongolia’s Prime Minister participates as an observer.
The summit focuses on strengthening regional cooperation and trade among SCO member states, with discussions covering key regional issues. After the leaders' speeches, official documents will be signed, followed by concluding remarks from Prime Minister Sharif.
The event will end with a media briefing by Deputy Prime Minister Ishaq Dar and the SCO Secretary General, and a formal luncheon for the visiting delegates.
Earlier, A tax advisory firm, Tola Associates, estimated that banks may need to pay Rs197 billion in extra taxes in 2025, based on their advance-to-deposit ratio (ADR).
The additional tax was introduced in 2022 to encourage banks to lend to industries rather than the government.
However, many banks are lobbying for exemptions, as the current tax rates for government lending range between 49% and 55% depending on their ADR.
In 2024, banks paid Rs612 billion in taxes, benefiting from some exemptions. The extra Rs197 billion liability arises if banks do not meet the ADR threshold, but they can reduce this by increasing private sector lending before the end of the year.
Banks have been accused of "round-tripping" to manipulate their lending figures, a practice criticized by former state minister Ashfaq Tola.
Despite their efforts to gain tax relief, the government, under an IMF loan deal, is unable to offer such exemptions.
The lobbying by banks, including major commercial institutions, continues, and failure to meet the ADR requirements could significantly impact Pakistan's revenue collection.
Some banks could see significant relief if the tax is exempted, but the overall concern is that preferential treatment could exacerbate fiscal challenges.
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