External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Thematic (Sector/Industry)

Pakistan Textiles, apparel and luxury goods / Thematic (Sector/Industry)

<ul><li>The government has revised the tax regime for the export-based industry, transitioning from a full and final tax of 1% of turnover/sales to a normal corporate tax. This change in tax policy will have material impact on the earnings of exporters, particularly those in the textile sector as textile exports constitutes 54% of country’s total exports of US$15.2bn in 11MFY24.</li><li>Exporters income will now be taxed at corporate tax rate of 29%, plus super tax of 1-10% with income over Rs150mn. In most of the cases super tax will be 10% as majority of the listed textile companies have profits of over Rs500mn.</li><li>For our analysis, in textile sector we have selected companies that have free float market cap of more than Rs2 billion and an average daily traded value of more than Rs1 million.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

The government has revised the tax regime for the export-based industry, transitioning from a full and final tax of 1% of turnover/sales to a normal corporate tax. This change in tax policy will have material impact on the earnings of exporters, particularly those in the textile sector as textile exports constitutes 54% of country’s total exports of US$15.2bn in 11MFY24.Exporters income will now be taxed at corporate tax rate of 29%, plus super tax of 1-10% with income over Rs150mn. In most of the cases super tax will be 10% as majority of the listed textile companies have profits of over Rs500mn.For our analysis, in textile sector we have selected companies that have free float market cap of more than Rs2 billion and an average daily traded value of more than Rs1 million.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Market: Change in tax regime for exporters; Textile earnings will be impacted