MH Insights

Sustainability is one of the most talked about buzz word in business. Still there are no hard laws for reporting sustainable business practices in Pakistan due to which it has become only a greenwashing exercise. Greenwashing is a process under which companies create a false impression about their contribution towards environment and sustainability. This is in itself is an unsustainable way for people, profit and planet. Securities and Exchange Commission of Pakistan ("SECP"), being the sole regulator of corporate sector in Pakistan, issued Corporate and Social Responsibility General Order through SRO No. 983(I)/2009 on 16 November 2009. This Order requires to disclose sustainability activities taken by a Company in its directors' report in descriptive and monetary terms. All the 545 Public Interest Companies, currently listed on the Pakistan Stock Exchange, report CSR activities in their directors' report in accordance with the provisions of above mentioned General ...

On 22 July 2020, State Bank of Pakistan ("SBP") communicated through its IH&SMEFD circular letter No. 23 of 2020 some amendments in its earlier instructions regarding its Green Banking Initiative under which it provides refinancing facilities to Banks and Financial Institutions for Renewable Energy ("RE") projects at subsidize rates. In 2019, SBP implemented a financing scheme for RE projects after the expiry of an earlier scheme that was initiated in 2016. The scheme has classified RE projects in three categories: Category I: Projects of 1 to 50 MW for prospective sponsors;    Category II: Projects of  up to 1 MW for prospective sponsors; Category III: Projects of 1 MW for suppliers / vendors of RE equipment; On Wednesday, SBP announced amendments for category III of the scheme after receiving the positive response. In the original scheme, Banks and Financial Institutions could provide financing only to vendors / suppliers certified by Alternative Energy Board...

State Bank of Pakistan (SBP) in its circular Export Policy Order (EPD) No. 16 of 2020 has extended the date for filing the claim of refund of Duty Drawback of Taxes (DDT). SBP has done this on the advice of  Ministry of Commerce . The deadline of submission date has been extended from 31 May 2020 to 31 August 2020 and 15 October 2020 for normal and additional DDT claims respectively both for textile and non-textile products. Pakistan had been facing persistent current account deficit and balance of payment crisis. Therefore, Government of Pakistan announces to provide cash subsidiary, as incentive, to export oriented sectors in order to enhance the exports of the country. SBP issued two separate EPD for textile and non-textile sectors in 2018.  SBP through circular EPD No. 21 of 2018 dated 26 November 2018 issued DDT Order 2018-21 for textile sector. It allows DDT on predefined rates on the export shipments made from 01 July 2018 to 30 June 2021 of specific products mentione...

The first human, who is known for his writing in history books, was not a poet, story-teller, warlord or king. He was an accountant in ancient Mesopotamia – present day Iraq, Kuwait, Syria and Turkey – who wrote on a clay tablet to record the crop harvest. The history of accounting profession dates back to over 4,000 years ago in Mesopotamia when accountants used clay tablets and papyruses to keep the record for agriculture produce and tribute paid to the temples by people. The accounting record on these clay tablets was used to calculate profit and impose taxes. However, when the accountants and workers colluded, they kept the crop produce or temple tribute with themselves and changed the record on clay tablets. Those who embezzled, if caught, were subject to sever punishment which could range from a fine of 5 times the amount of embezzlement to death penalty. Accountants in those times were as keen to exercise professional skepticism and devotions as we are today. So, they establi...

Securities and Exchange Commission of Pakistan (“SECP”) through SRO 346(I)/2020 dated 29 April 2020 has withdrawn it earlier directive issued under SRO 924 (I)/2015 on 9 September 2015. SECP, in SRO 924 (I)/2015 , instructed all the companies listed on Pakistan Stock exchange to include a message on “JamaPunji" in annual accounts and balance sheet. Now, listed companies don’t have to publish this message in annual report.  JamaPunji Ad JamaPunji is an initiative of SECP to provide fundamental knowledge and understanding of financial markets to general public and enhance financial literacy in the country.