Pakistan Daily Economy Update - 17 March

Transcription

1. Mar . 17, 2017 KCCI - eBulletin Prime Minister unveils Gwadar’s uplift package Prime Minister Muhammad Nawaz Sharif has unveiled development package for Gwadar including a university, 300-bed hospital and desalination plant. The prime minister vowed to make Gwadar the 'Tiger of Pakistan' and said all roads to prosperity would lead from this city. He said it was his mission to improve the living standard of the people of Gwadar. The Prime Minister has also announced PKR 1Bn for infrastructure improvement of the city including sewerage system and link roads. BR. NA body for probe into export slide National Assembly's Standing Committee on Finance has termed the $ 20Bn trade deficit as well as balance of payment position (BoP) for 8MFY17 as "scary" for the economy, calling for a commission to establish the reasons of continuous decline. A meeting of the committee was held to discuss the budgetary proposals for upcoming FY18 in consultation with chambers of commerce for presenting to the govt. BR. Dar tells FBR to meet revenue target Finance Minister Ishaq Dar has directed FBR to undertake all necessary efforts to meet the tax revenue target for the ongoing FY17. In a meeting on tax related matters, the Minister encouraged FBR to ensure that all stakeholders are actively engaged and consulted in the preparation process of the budget. The tax collection shortfall has reached PKR 180Bn during 8MFY17 while PKR 2.05Tn have been collected so far, which is 7% higher. The Nation. Cell set up at CM House to address complaints about census Sindh CM has set up a ‘Census Complaint Cell’ at CM House after receiving reports that high-rise buildings, comprising a number of apartments, are being counted as a single house. He said that if the report are true then it is against the assurances given by the Census Commissioner and Federal Minister Ishaq Dar that censure would be transparent. Census Complaint Cell at CM House is linked with two landline phones and two fax numbers receiving public complaints daily from 8am to 10pm on 021-99207350, 99202180; Fax 02199202007, 99202000. Dawn. Jul-Feb. FDI up 6% YoY Pakistan has fetched Foreign Direct Investment (FDI) of $ 1.3Bn, up 6%, during 8MFY17 compared to $ 1.21Bn in 8MFY16. During the period under review, foreign public investment surged by 120% to $ 1.003Bn while portfolio investment witnessed a downward trend falling by 1.6%, stood negative at $ 353.2Mn. Hence, foreign investment comprising FDI, portfolio investment and foreign public investment stood at $ 1.94Bn after a surge of 46%. On Month-on-month basis, FDI declined by 20% to $ 123Mn in Feb.’17 compared with $ 155Mn in Feb.’16. BR. India fast-tracks hydro projects in IHK India has fast-tracked hydropower projects of worth $ 15Bn in held Kashmir in recent months, ignoring warnings from Islamabad that power stations will disrupt water supplies to Pakistan. It has opposed some of these projects before, saying they violate a World Bankmediated treaty on the sharing of the Indus River and its tributaries upon which 80% of its irrigated agriculture depends. Together these projects on the Chenab River would triple hydropower generation in Jammu and Kashmir from the current level of 3,000MW. BR. FBR issues notices to 25,000 non-filers FBR has issued notices to around 25,000 tax dodgers, who were identified through monitoring of withholding tax on fees paid to educational institutions. Such individuals paid PKR 200,000 and above as education fees in a year, but they were not on the tax roll. The notices were issued countrywide to individuals, asking them to get registered with the tax authorities otherwise the tax dept. would slap fine and penalties on them. The FBR, through Finance Act, 2013, introduced 5% advance tax on annual education fees of PKR 200,000 and above. The News. SECP seeks international help to curb market abuse SECP has decided to approach the Financial Conduct Authority (FCA) of the UK regarding the misappropriation of funds and illegal deposittaking by owner of M.R. Securities. The move by the SECP is likely to curb further misconduct and market abuse by the brokers of the PSX. SECP Chairman Zafar Hijazi has also approved to utilize the services of International Organisation of Securities Commissions (IOSCO), which is the international cooperation forum for the regulation of securities laws, to confront bad players in the market. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (MY'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 16-Mar 16-Mar 16-Mar 16-Mar 16-Mar 16-Mar 16-Mar 16-Mar 16-Mar 16-Mar PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 106.60 48,290 4.68 49.32 1,228 42,857 17.30 7,379 6.13% Forex Reserves 10-Mar $ Bn 22.27 0.01% 0.09% -0.03% NM** -0.46% 0.71% 0.00% 0.00% -0.73% 0.01% WoW 0.56% YoY -2.52% -3.90% 15.99% -34.33% -90.24% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Feb 17 Remittances $ Bn 12.36 Jul-Feb 17 Exports* $ Bn 13.32 Jul-Feb 17 Imports* $ Bn 33.52 Jul-Feb 17 Trade Balance* $ Bn -20.20 Jul-Jan 17 Current Account $ Mn -4,716 % 3.85 Avg. CPI-FY17* Jul-Feb 17 Jan-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Mar-16 GBP, 16-Mar-17, 128.3 EUR, 16-Mar-17, 111.9 USD, 16-Mar-17, 104.3 Jun-16 USD GBP Sep-16 Dec-16 Mar-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day SECP accelerates action against defaulting brokers SECP has accelerated its efforts to curb the misconduct, market abuse and financial crimes of defaulting brokers of the Pakistan Stock Exchange. According to a statement, SECP has also provided details of some potential defaulting brokers to the interior ministry for placement of their names on the exit control list. The News. “Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.” PKR 6Bn approved for PSO to avoid default The MoF has approved payment of PKR 6Bn to the country’s largest fuel supplier as an urgent case to avoid an international default next week. Simultaneously, the Ministry of Petroleum and Natural Resources and the oil industry have decided to put on hold future fuel oil import orders until the Ministry of Water and Power submits a firm plan for payment and draw down of record stocks built over the past few weeks. Dawn. Chart of the Day Govt urged to slash PKR250 SIM tax The Global System Mobile Association (GSMA) has urged the government to reduce sales tax/FED on mobile from 19.5% to 17%, abolish PKR 250Mn SIM tax and reduce withholding tax on mobile to 12% to enable more consumers to access mobile services. They emphasized in a report that high consumer taxes mean the poorest Pakistanis are unable to afford mobile broadband. Dawn. World Bank approves $ 450Mn for banking, financial access The World Bank has approved a package worth $ 450Mn aimed at expanding banking services and financial access in Pakistan. The ‘Finance for Growth Development Policy’ (FGDP) is a policy credit of $ 300Mn to support the government’s efforts in promoting a more inclusive and transparent financial sector. The programme aims to raise financial access throughout Pakistan to 50% of adults, including 25% of women by 2020. Dawn. Forex reserves increase to $ 22.2Bn Pakistan’s foreign exchange reserves rose to $ 22.27Bn during the week ended on 10th Mar’17 from $ 21.82Bn a week ago. The reserves, held by SBP, rose $ 99Mn to $ 17.23Bn. The country received $ 200Mn under CSF. While, the central bank made payments of $ 97Mn on account of external debt servicing and other official payments. The News. Pakistan Belarus moves towards open banking channels In a bid to enhance the trade volume between Pakistan and Belarus up to $ 1Bn, central banks of both countries have already inked a MoU and now steps are being taken to open bank branches. Belarus Ambassador Andrei Ermolovich has said that the banking system is a prerequisite to undertaking major bargains and in this connection a mutually acceptable banking system is being evolved. Tribune. China, Saudi Arabia eye $ 65Bn deals Saudi Arabia’s King Salman oversaw the signing of deals worth potentially $ 65Bn on the first day of a visit to Beijing, as the world’s largest oil exporter looks to cement ties with the world’s second-largest economy. Salman said that Saudi Arabia is willing to work hard with China to promote global and regional peace, security and prosperity. Besides the MOUs agreed between the two govts, Saudi and Chinese companies signed 21 deals, ranging from exploring investments in oil and petrochemical plants to ecommerce and co-operating in renewable energy markets. The News. Sun Tzu Pakistan's Foreign Direct & Portfolio Invesment (8MFY11-8MFY17) 650.15 8MFY17 1284.45 108.24 8MFY16 1211.91 8MFY15 1147.84 716.18 242.63 8MFY14 514.22 -100.26 8MFY12 Value 671.04 169.92 8MFY13 558.47 311.74 8MFY11 -500.00 0.00 500.00 PortfoIio Investment 1046.07 1000.00 1500.00 Foreign Direct Investment Value in $ Mn Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained 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. 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