Stocks rally ahead of budget in anticipation of tax breaks

KARACHI: The Pakistan Stock Exchange rallied over 500 points to reach an intra-day high of 37360.88 points on Friday, hours before the PML-N government is scheduled to unveil its budget for the upcoming fiscal year
The index was up 441 points, or 1.2%, reaching 37,281 points an hour before closing.
Topline Securities CEO Muhammad Sohail, while talking to Dawn.com, said a major reason for the optimism in the market is the expectation that the upcoming budget will go easy on the stock market in terms of taxes.
“The general expectation is that unlike last year’s budget, this year the government is not going to levy additional taxes on the stock market.”
Sohail went on to say the surge was also a result of positive net foreign buying over the past couple of days.
“Data from the past three days shows Pakistani stocks were on foreign investors’ radar which is why the index is rising today,” he said.
The upcoming MSCI review on June 14, when discussion on upgrading Pakistan’s status to an emerging market will take place, has also been bolstering stock prices in the past few weeks.
Market players anticipate a positive outcome from the meeting, with an improved status expected to bring in fresh foreign investment and opportunities for Pakistan in the future, Sohail said.
MSCI, a US-based provider of stock market indexes and portfolio analytics, had hinted last year that Pakistan’s inclusion in the Emerging Markets category will be discussed in June 2016.

For Yasir Hussain, Saba Qamar was the best part about shooting Lahore Se Aagey


It's a wrap for the Karachi Se Lahore spin-off Lahore Se Aagey and we can expect to watch it in November 2016.
In a quick chat with Images, lead actor Yasir Hussain recalls the highs and lows of the film's shoot and how Saba Qamar proved to be the ideal co-star.
"It was a great experience working with Saba Qamar because she is such a thorough professional," Yasir begins. "There's so much I learned from her. She's undoubtedly a brilliant actress but she is miles ahead of everyone else in professionalism."
He said that Saba's quite the tough cookie:
"I'd get tired on a outdoors shoot (which was 80% of the time) or while travelling between Lahore and Swat and Lahore and Islamabad. It was quite grueling and hectic. We were injured many times, sometime we fell and suffered cuts. But that woman didn't budge."
He even picked up the tricks of the trade from Saba:
"I don't know about TV, but film requires a certain kind of professionalism - at every moment, at every position, you have to give the camera good expressions. I learned that from Saba Qamar."
Overall, the shoot was a great experience and he promises the spin-off's better than the hit original:
"Apart from that, I had a good experience last time with Wajahat and this experience was also amazing. This film is better than the first one, especially the script."
It looks like there's no time to rest for Yasir Hussain. The actor has a lot of work in the pipeline, including a film in India!
"Next year, I'm doing another film Senti Aur Mental with Yasra Rizvi and another in India that I can't talk about right now. The shooting will be in Mumbai and I'll be flying there next week. Plus, I'm writing a film for Anjum Shehzad'sBand Toh Ab Bajay Ga."
Whoa, looks like Yasir's a tough cookie too!

24 dead in clashes as sect evicted in India

NEW DELHI: Clashes between Indian police and followers of a revolutionary sect have left at least 24 people dead after an operation to evict thousands of people from parkland erupted into violence, officials said Friday.
Two police officers were among those killed in the overnight clashes during a move to expel around 3,000 sect followers who had illegally occupied public land in the state of Uttar Pradesh for the last two years.
Police and other officials said they came under fire from members of the sect who were armed with automatic weapons and also hurled crude explosive devices during the violence in the northern city of Mathura.
“They were firing at us from tree-tops. Others were hurling stones or assaulting us with sticks and other weapons. Two of our men were wounded and they died in hospital,” said Uttar Pradesh police chief Javeed Ahmad.
“Soon after the attack, we got reinforcements and launched a counter-attack on the camp and successfully cleared the area.”
Speaking to reporters in Mathura, Ahmad said some of the Swadhin Bharat Vidhik Satyagrah sect's followers had set fire to huts which were storing gas cylinders and explosives during the clearance operation.
“Twenty-two of their people have died, out of which 11 have died due to burn injuries. One of the dead is a woman,” he added.
Police have also recovered several dozen pistols and rifles along with live ammunition rounds.
The operation was launched after authorities won a court order to remove hundreds of tents and makeshift wooden structures from a 270-acre (109-hectare) patch of land the sect had been occupying since late 2014.

Huts set alight

Television images and pictures from the scene showed many of the huts where members of the sect had been living on fire, with smoke billowing across the area.
In postings on social media, Swadhin Bharat Vidhik Satyagrah's followers describe themselves as political and social revolutionaries. Their demands include the abolition of elections and cheaper fuel for everyone.
“Their ideology is similar to the Naxalites,” said divisional commissioner Pradeep Bhatnagar, who is the top civilian official for the area.
Naxalites are Maoist revolutionaries who have been waging a four-decade long insurgency in parts of eastern and central India.
Hundreds of people were detained over the violence, including 124 who have been formally charged with rioting and murder.
“We have identified four leaders of this illegal group. We are looking for them and will arrest them soon,” said Ahmad.
“We are trying to identify the bodies and it is possible some of them may be the wanted leaders.”
One of the police officers who was killed was a superintendent, the most senior officer in Mathura, which is around 150 kilometres east of the capital New Delhi.
The Swadhin Bharat Vidhik Satyagrah sect is led by a man called Ram Vraksha Yadav, whom police say was at the park when the violence broke out but has so far eluded arrest.
In several videos posted on YouTube, Yadav can be seen pledging allegiance to Indian independence hero Subhash Chandra Bose and the Azad Hind Fouj (Indian National Army), a rebel movement founded by Bose to combat British colonial rule.
The group describes itself as the legitimate government of India and is headquartered in the park that was cleared by police.
India is home to hundreds of semi-religious sects which are often led by charismatic self-styled “godmen”.
In 2014, hundreds of armed supporters from another sect clashed with police in the northern state of Haryana during a raid to arrest their leader who faced murder allegations. At least six people died in the violence.

Yasir Shah's dope test could come under the spotlight: Alam

LAHORE: The International Cricket Council is conducting dope test on Pakistan leg-spinner Yasir Shah.
Shah was provisionally banned last year after he tested positive for chlortalidone, a masking agent under the World Anti-Doping Agency (WADA) list of banned substances.
He was barred for three months after he pleaded guilty and told the ICC that he had inadvertently taken his wife's blood pressure medication.
His ban was lifted in late March, making him eligible for the England tour.
Pakistan's Team Manager Intikhab Alam said Shah's test could come under the spotlight.
“Besides Shah, Test captain Misbah-ul-Haq, one-day skipper Azhar Ali and fast bowler Junaid Khan were also tested but Shah's test could be targeted,” he told.
Shah is seen as Pakistan's main wicket-taker for the four-match Test series in England, which starts at Lord's from July 14. Pakistan will also play five one-days and a Twenty20 international on the tour.
The team can ill afford any positive results, which could have a significant impact on their upcoming tour in England, during which the results are expected to be confirmed.
The ICC, which has been a signatory of the WADA since 2006, routinely conducts such tests in and out of competition.

Spain prosecutors ask Messi be absolved in fraud trial

BARCELONA: Spanish prosecutors called on Friday for Lionel Messi and his father found guilty on the final day of the pair's high-profile tax fraud trial to be absolved.
The Argentina star and his father Jorge Horacio Messi have been accused of using companies in Belize and Uruguay to avoid paying taxes on 4.16 million euros ($4.6 million) of Messi's income earned from his image rights from 2007-09.
Barcelona forward's defence lawyers want both the five-time World Player of the Year and his father to be absolved.
But the state attorney — who in Spain intervenes in trials in parallel with prosecutors when the interests of a public organisation have been impacted, in this case the tax authorities — wants both sentenced.
“Lionel Andres Messi must be absolved,” Prosecutor Raquel Amado said in her closing argument, a day after the footballer took the stand and said he trusted his father with his finances and “knew nothing” about how his wealth was managed.
“There is no evidence that anyone explained anything to him.” But she maintained her accusation against his father, for whom she asked for a jail sentence of one-and-a-half years.
Any such sentence would likely be suspended as is common in Spain for first offences carrying a sentence of less than two years.
“It's because Jorge Messi accepted it that this happened,” she said.
The income related to Messi's image rights that was allegedly hidden includes endorsement deals with Banco Sabadell, Danone, Adidas, Pepsi-Cola, Procter & Gamble and the Kuwait Food Company. “These contracts are in English, most certainly bulky,” Amado argued.
“For a layperson, if they see so many lawyers signing it, they must believe that it's fine.” The companies in Uruguay -- which much of the probe centres on -- were created and managed by a Barcelona law firm with whom Messi's dad communicated.
“Mr. Jorge Messi cannot dodge his responsibility by accusing his advisors,” she said.
“Fraud takes place because there is a decision in that direction.” Messi and his father did not attend the fourth and final day of the trial, in which defence lawyers and the state attorney have yet to make their closing arguments.
The player had been due to jet off to the United States after his Thursday court appearance for the Copa America where Argentina take on defending champions Chile on Monday.
No date has been set for when the court will issue its ruling.

Serena struggles again but into French Open final

PARIS: Serena Williams kept alive her hopes of making Grand Slam history in Paris on Friday, but she was again well below her best in a 7-6 (9/7), 6-4 French Open semi-final win over Kiki Bertens.
For the second straight day, the 34-year-old American looked out-of-sorts and at times exasperated before finally clawing her way back to stay alive.
She will now play Garbine Muguruza in Saturday's final with the prize for her being a 22nd Grand Slam title, equalling the Open-era record set by Steffi Graf in Paris in 1999.
The fourth seeded Spaniard underlined her fine form with a 6-2, 6-4 win over Australia's Samantha Stosur.
“The first set was not simple, but she was playing so well,” Williams said.
“I need to keep my calm for the final and hope the fans will be with me.”
Williams already looked out-of-sorts in her quarter-final on Thursday against 60th ranked Yulia Putintseva, having to claw her way back from a set and a break down to get through.
And it was another ponderous start from the three-time former winner against her 58th-ranked, opponent, losing the first three points of the match and dropping her serve.
Bertens, who had never made it past the fourth round of a Grand Slam tournament prior to Paris, went 2-0 up before Williams opened her account.
The cold, damp conditions were similar to Thursday and the atmosphere was muted on a less-than-half full Philippe Chatrier centre court.
Williams was having trouble returning the Bertens serve and she had to save break points on her own to avoid falling further behind.
The Dutchwoman failed to convert a set point at 5-3 with Williams serving and then a pair of drop shots in the next game brought up a break-back point for the American which she converted with a big forehand drive.
Bertens appeared to be having trouble with an injury to her left calf muscle as Williams took the lead for the first time in the match, but she held firm to force a tie-break.
In that, Williams eased ahead 5-2 after losing the first point on her serve, but two botched volleys at the net saw her hand a set point back to Bertens before she found some form to take it 9/7.
The pair exchanged service breaks to get the second set underway and Bertens then failed to take two break points to get to 4-2.
She paid the price for that minutes later as Williams grabbed the break she needed to put the match away needing four match points in the end.
The final will be the fourth match in four days for Williams due to the bad weather that has dogged Roland Garros this week.

Growth target set at 5.7pc as Ishaq Dar unveils budget for FY2016-17

Finance Minister Ishaq Dar has made his way to Parliament along with his colleagues to present the country's budget for the upcoming fiscal year 2016-17 (FY16-17) on Friday. The budget is being announced through a televised speech which is traditionally the highest rated broadcast event of the year.
Turnout of government lawmakers in the budget session is low as Dar begins his fourth budget speech in the premier’s absence. In a joint meeting, the opposition earlier today decided not to obstruct the finance minister while he is delivering the budget.
All eyes are on the government’s proposals to rescue agriculture from its doldrums. With Dar conceding that the sector reported negative growth of -0.19 per cent dragging the economy down and promising action, there are expectations that today's budget will show some new thinking to spur growth in the sector.
Below are major targets for FY16-17:

KEY TARGETS

TOTAL EXPENDITURE

Announcing the budgeted expenditure for the next fiscal year at Rs 4.39 trillion, Dar pointed out that it translated into a rise of over 7% compared to last year.


GDP GROWTH

Finance Minister Ishaq Dar, while outlining the economy's performance in the past two years said "in the past two years progress went over 4pc and reached 4.7pc – the highest in 8 years."
"This would have been better if the cotton crop hadn't suffered a fall in growth of 28pc."
He announced that the government had targeted growth of 5.7pc for fiscal 2016-17, with an even more ambitious target of 7% growth for fiscal year 2017-18.


INFLATION



FISCAL DEFICIT

The finance minister said the government is targeting to restrict the fiscal deficit at 3.8% of the GDP next year, which he said will be further narrowed to 3.5% of the GDP by 2017-18.


TAX REVENUE

Talking about the budgeted tax revenue, Dar said: "Tax collection has increased 7pc which is historic. We will reach our target of Rs3.96tr and we want to push the tax-to-GDP ratio to over 10pc next year."
In the longer run, Dar said the government wants to push this ration up to 14pc.


DEVELOPMENT


The Pakistan Economic Survey on Thursday showed that the government had missed last year's budgeted GDP growth target by a wide margin, mostly owing to a dismal performance by the agricultural sector.
But this was compensated by the industrial sector as the construction and electricity sectors outperformed expectations.
The services sector grew at par with the set target, bolstered by an increase in salaries of government employees and defence servicing.

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