Pakistan Daily Economy Update - 13 February

Transcription

1. Feb . 13, 2018 KCCI - eBulletin Improvement in “textile sector confidence” attributed to export incentive package The textile industry stakeholders have asserted that the export incentive package and allowing rupee depreciation have improved textile sector confidence through. Exporters linked the increase in exports with flow of cash under the PM's incentives package, payment of sales tax refunds as well as depreciation of local currency, which improved their liquidity situation. Textile exports rose by 10% to $ 1.13Bn in Dec.’17 from $1.03Bn in Dec.’16. During 1HFY18, textile sector exports went up by 8.07% to $ 6.64Bn from $ 6.15Bn in 1HFY17. BR. 7MFY18: workers’ remittances cross $ 11Bn mark Workers' remittance sent by overseas Pakistani crossed $ 11.38Bn mark in 7MFY18 compared with $ 10.99Bn received during 7MFY17, depicting a growth of 3.55%. The slow growth in home remittance is attributed to decline in inflows from Saudi Arabia, which is the largest contributor. During Jan.’18, inflows of $ 1.64Bn are some 10% higher than Jan.’17 year-on-year basis and are 5% lower than Dec.’17 month-on-month basis. BR. Budget deficit touches 2.3% of GDP Pakistan’s budget deficit has touched 2.3% of the GDP during 1HFY18, equivalent to PKR 830Bn. This is attributed to healthy tax collection by FBR and 5% rupee deprecation against US dollar. Finance Ministry is optimistic to restrict the deficit below 5% during FY18. The govt. had set budget deficit target at PKR 1.48Tn (4.1% of the GDP) for the ongoing FY18. However, the IMF had estimated it around 5% of the GDP. The Nation. Fiscal year 2017: 71% rise in domestic debt, 29% in external debt The govt. has revealed in its Debt Policy Statement 2017-18 laid before the National Assembly that Pakistan witnessed 71% increase in domestic debt and 29% in external debt during FY17 respectively. According to the policy statement, public debt was PKR 21.41Tn while total govt. debt stood at PKR 19.63Tn at the end of Jun.’17. During 1QFY18, the govt. issued fresh/rollover guarantees aggregating to PKR 60Bn while outstanding stock of govt. guarantees at end Sept.’17 amounted to PKR 999Bn. BR. In run-up to polls, govt lifts ban on laying gas distribution networks With the approval of over hundred gas supply schemes before the upcoming general elections, the govt. has lifted the ban on laying gas distribution networks in order to implement the schemes being launched in the constituencies of parliamentarians, mainly from Punjab, in an apparent bid to win votes. This is despite the fact that existing gas consumers are facing shortage of gas as well as load-shedding. Earlier, the government had approved 157 gas supply schemes worth over PKR 30Bn, but when the Ministry of Finance refused to extend direct financing from the budget, the govt. decided to push ahead with 100 schemes where govt. funding was not required. Tribune. \ Economic Indicators List of Indicators Date / Period Unit Value Change Daily 12-Feb 110.40 111.45 -0.14% 0.09% Crude (MA'18) 12-Feb 12-Feb 12-Feb 12-Feb PKR PKR Pts. $ Mn $/bbl 43,515 -8.97 59.12 -0.67% NM** 0.41% Gold (MA'18) Gold (10g) Local 12-Feb 12-Feb $/oz PKR 1,323.1 47,914 0.71% -0.53% Silver (MA'18) Cotton(KHI)-40 kg 12-Feb 12-Feb $/oz PKR 16.50 7,502 1.48% -2.02% Kibor-6M 12-Feb % 6.36 $ Bn 19.18 -0.07% WoW -0.89% Remittances 2-Feb FY18 Jul-Jan 18 $ Bn 11.38 YoY 3.55% Exports* Imports* Jul-Jan 18 Jul-Jan 18 $ Bn $ Bn 12.97 34.51 11.11% 18.92% Jul-Jan 18 Trade Balance* $ Bn -21.55 Jul-Dec 17 Current Account $ Mn -7,413 Foreign Direct Inv. $ Bn 1.38 Jul-Dec 17 Jul-Nov 17 LSM Growth* % 7.19 % 3.85 Jul-Jan 18 Avg. CPI Discount Rate % 6.00 Jan-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -24.18% -59.08% -2.81% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Major Currencies 165 GBP, 12-Feb-18, 153.1 155 Auto sales race on to new record Local car assemblers (including LCVs, Vans and Jeeps) sold 23,700 units in Jan’18, up 13% year-on-year. This is the highest monthly unit sale recorded for month of January. Cumulatively, industry sales during 7MFY18 posted 29% growth to 147,838 units. The change in import procedure, demand from online ride-hailing services as well as availability of auto finance at lower rates contributed to strong demand in Jan’18. Dawn. 145 PPIB nods to 700MW coal-fired power plant in Thar Private Power and Infrastructure Board (PPIB) has given the go-ahead to UK-based Oracle Power for the development of a 700MW coal-fired power plant in Thar Block-VI. The inclusion of the project in CPEC, will assist fast-tracking of the project to financial close. Oracle Power has partnered with Sichuan Provincial Investment Group (SCIG) and Power China International Group for this project. The News. 105 135 EUR, 12-Feb-18, 135.8 125 115 95 Feb-17 USD, 12-Feb-18, 110.6 May-17 GBP USD EUR Aug-17 Nov-17 Source: KCCI Research ; Oanda.com Quote of the Day 24 development projects worth PKR 184.8Bn approved The Central Development Working Party (CDWP) has cleared a total of 24 development projects at an estimated cost of around PKR 200Bn.All the projects, 10 larger projects worth PKR 169Bn were referred to the Executive Committee of the National Economic Council (Ecnec) for formal approval. Up gradation of railway stations and improvement of airport security for Karachi was also included in the approved projects. Dawn. "Price is what you pay. Value is what you get." Iran affirms all-out support for trade initiatives from Pakistan Iranian consulate is more than ready to back any trade and investment initiative taken by business community in Pakistan, especially Sindh, said Consul General of Iran while speaking at an event. He also said that over the last 9 months, as a result of the facilities provided by the Iranian side the volume of Pakistani rice export to Iran had already jumped up by 42%. The News. Chart of the Day Turkish FMCG set to start operations in Pakistan Hayat Group – a Turkish conglomerate with $ 3Bn turnover – has launched its operations in Pakistan with the marketing of various hygiene products. The company, world’s 5th largest branded baby diaper manufacturer, as well as the largest tissue manufacturer of Middle East, Eastern Europe and Africa, will be launching its products in Feb’18, and will invest $ 150Mn in the near future. Daily Times. Italy to cooperate with Pakistan in stone sector The Marble Association of Italy has agreed to help Pakistan in the development of marble and granite sectors, in addition to establishing a technical and scientific international trade centre in the country. A Memorandum of Intent was signed between Pakistan Stone Development Company (Pasdec) and the Marble Association of Italy which has already been approved by the federal cabinet. Both companies will contribute an equal amount of 0.4Mn Euros each. The project is expected to be completed within two years. Dawn. More air cargo routes needed to up seafood, fruits exports to China More international air cargo routes between Pakistan and China’s inland cities are needed to enhance seafood and fruits exports from Pakistan to China. In 2017, exports to Pakistan from China stood at $ 18.3Bn, while China’s imports from Pakistan totaled $ 1.8Bn. Although the CPEC is designed to connect the Gwadar Port in southwest Pakistan with Kashgar, most of the seafood sold in Xinjiang is transferred from the southeast coast of China, which is thousands of kilometers away. The Nation. Warren Buffet Savings Mobilized by National Saving Schemes in Pakistan 450 400 350 300 250 200 150 100 50 0 386 337 233 206 207 92 FY13 Figures in PKR Billion FY14 FY15 FY16 FY17 1HFY18 Source: KCCI Research, SBP Disclaimer EDF Board refuses to give additional subsidy to DEPO The Export Development Fund (EDF) Board headed by the Commerce Minister has reportedly refused to give additional subsidy This report has been prepared by KCCI Research & Development Cell. The information contained of PKR 311Mn to the Defense Export Promotion Organization (DEPO). DEPO had requested that outstanding balance on account herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified. of subsidy for IDEAS 2012, 2014 and 2016 be settled at priority. EDF Board has shown serious concern over the recommendations forwarded by DEPO in their current proposal about conditional approval of PKR 70Mn for IDEAS-2016. BR. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. Contact: res@kcci.com.pk