Govt waives taxes on foreign loans
Cabinet writes-off income tax on over $3b worth loans lent during past one year
In the past two months, the federal cabinet has exempted taxes on $5.5b worth of foreign borrowings, including $2.5b Euro-bonds. PHOTO: FILE
ISLAMABAD:
The federal cabinet has waived income tax on profits that foreign commercial banks are earning on over $3 billion worth of loans that they lent to Pakistan during the past one year.
The government has obtained these loans to retain foreign exchange reserves in double digits that could have slid below $10 billion after repayments of foreign debt, including to Saudi Arabia.
Abu Dhabi stocks rallied for a fifth day, following market advances elsewhere with investors betting that the US $2 trillion infrastructure investment plan is going to have a positive knock-on impact.
But the gains were capped by a number of stocks trading ex-dividend. Abu Dhabi Securities Exchange put on 0.7 per cent to 5,953 points after trading in the red for a few minutes after the opening. But soon, advances for Etisalat and International Holding overpowered the weakness in ex-dividend trading stocks.
The telco gained 1.4 per cent, extending its gains for a fourth day. It has traded lower in just five sessions in the last month and has shot up around 30 per cent for the year-to-date. It continues to attract investor attention on the back of robust 2020 earnings, special dividends and the 49 per cent foreign ownership limit hike.
Dubai: Dubai Financial Market closed higher for a third straight session led all the way by its banking and property stocks as Dubai s landmark urban development plan revived investor hopes about the real estate sector getting back to rising trends.
Dubai s main index jumped 1 per cent to close at 2,600 points bolstered by Dubai Islamic Bank which climbed 2.3 per cent providing the biggest single boost to the index. Other financial stocks to rise were Amlak Finance and Ajman Bank.
Property stocks were not left behind with the emirate s top developer Emaar Properties and its subsidiaries Emaar Malls and Emaar Development all gaining on the prospect that the real estate sector stands to benefit the most from Dubai s 2040 urban development plan designed to more than double its tourism and hotel capacity.
Dubai: Saudi Arabian stocks closed higher on Wednesday with nearly all banking stocks advancing taking their cue from the $1.9 trillion US stimulus signing into law and as prospects brightened for sooner reopening of economic activities around the world.
Saudi Arabia s benchmark index notched up 0.8 per cent to 9,665 points. Riyad Bank, Alinma Bank, Samba Financial Group and Albilad all moved upward with Saudi British Bank shooting up 2.2 per cent after announcing the completion of Alawaal Bank merger and its full integration.
Dividend factor
Abdullah Al Othaim Markets rose 2.2 per cent after its board of directors recommended SR3 per share as half-year dividends. It had earlier reported a 16.3 per cent jump in fourth-quarter profits. Saudi Company for Hardware also ended the day higher by 1 per cent as its full-year profit soared 39 per cent and its board decided to hand out SR0.75 riyal per share dividend to shareholders.
Pakistan has incurred a foreign debt of $6.661 billion from multiple financing sources in the first seven months (July-January) of 2020-21. This makes up