Pakistan Daily Economy Update - 18 August

Transcription

1. August 17-18 , 2022 KCCI - eBulletin Govt. commits more taxes as IMF board meets on 29th The govt. has given an undertaking to IMF to raise the petroleum development levy to a maximum of PKR 50/liter on petrol and diesel by Jan & Apr’23. Pakistan has also made commitments to build forex reserves to cover at least 10 weeks of imports by end of FY23 not to use those reserves to support the exchange rate. Over the next couple of months, the Ministry of Finance would seek about PKR 150Bn worth of fresh revenue measures to make up for some reversals in taxation and untargeted increase in expenditures. Dawn-Thu. List of Indicators Date / Period USD-Interbank USD-Open MKT 17-Aug SBP allows ECs to export dollar on consignment basis SBP has allowed Exchange Companies to export USD on consignment basis. As per Para 9 (IV0) Of Chapter 5 of Exchange Companies Manual, Exchange Companies are allowed to export foreign currencies other than USD and bring in equivalent USD in their foreign currency accounts maintained with banks in Pakistan. BR-Wed. Prices of automotives decline Also local car assemblers have reduced their prices up to PKR 1.14Mn, taking a lead from other business sectors to pass on the benefit of the PKR’s impressive appreciation against the USD. Pak Suzuki Motor Company Limited (PSMCL) and Honda Atlas Cars announced that the prices of various models have been reduced. Dawn-Wed. BR-Wed. Non-textile exports contract 11% in July The exports of non-textile products contracted by 11% to $ 773Mn in Jul’22 from $ 868m in Jul’21 due to a falling demand, data compiled by PBS showed. The non-textile sector’s exports posted a growth of 25.85% in FY22. Data compiled by the PBS showed the food basket posted a growth of 6.57% in Jul’22 compare to Jul’21. Dawn-Thu. Pakistan included in new UK trading scheme UK has launched a “Developing Countries Trading Scheme” (DCTS), replacing the GSP, whose implementation in early 2023 will provide tariff reductions and simpler terms of trade to 65 countries, including Pakistan, for which 94% of goods will be eligible for duty-free access to the UK, saving the country £ 120Mn in tariffs. Dawn-Thu. Trend of rising remittances reverses in Jul’22 A decline of 7.8% was recorded in Jul’22 compared to the Jul’21, according to SBP. The country received $ 2.523Bn in Jul’22 compared to $ 2.736Bn in Jul’21 whereas, over $ 31Bn in remittances were received in FY21, a record high. Dawn-Wed. Cuba allows foreign investment for first time in 60 years The Cuban govt. has announced it will allow foreign investment in domestic wholesale and retail trade for the first time in 60 years, in a move aimed at addressing critical shortages of goods. The decision could also give a boost to local industry, all without relinquishing state control over foreign trade. BR-Thu. New seeds approved to increase rice yield In a bid to increase the yield from rice crops, 9 hybrid varieties, developed by the private sector and 1 long grain variety of rice, developed by the Punjab govt.’s Soil Salinity Research Institute, were approved for commercial cultivation during the next kharif season, aiming to offer 15-20% better yield according to the PARC. Dawn-Thu. Govt. to borrow PKR 6.8Tn from banks The govt. has planned to borrow PKR 6.78Tn from commercial banks over a period from Aug- Sept’22. Out of the new debt, it will utilize PKR 6.38Tn to repay the maturing old debt of financial institutions, according to SBP. Tribune-Thu. SSGC to opt for gas load management SSGC has announced that it has been facing curtailed gas supplies from a few gas fields, thus, being forced to implement gas load management plan by rationalizing the use of gas whereby it is giving priority to the domestic and commercial sectors. Tribune-Thu. All public-sector entities: PAC assigns AGP to hold performance audit A parliamentary panel has assigned the AGP to hold a performance audit of all public-sector entities especially, subsidiaries of the Petroleum Division to evaluate the performance of their Boards of Directors and MDs/CEOs who have been hired on lucrative packages. BR-Thu. Riyadh offers LNG, crude oil and revival of SFD pact Saudi Arabia has reportedly offered LNG to Pakistan on commercial basis in addition to activating an agreement on financing and providing supplies of crude oil and petroleum products signed between Saudi Fund and GoP. BR-Thu. Renewable energy: PM seeks policy on private investment PM Shehbaz Sharif has directed Finance Division and Power Division to frame policy to attract private sector investment in renewable energy including solar projects ensuring due payment to the investor/project sponsor not later than 60 days from submission of the payment invoice. BR-Thu. Offshore terminal, stake in PIA to be offered: Strategy for LNG devised ahead of PM’s Qatar visit Unit Value Change Daily 17-Aug PKR PKR 214.88 213.58 #DIV/0! 0.51% KSE-100 index FIPI 17-Aug 17-Aug Pts. $ Mn 43,677 0.43 0.55% NM** Crude Oil 17-Aug $/bbl 88.11 1.83% Gold 17-Aug $/oz 1,776.7 -0.73% Gold (10g) Local 17-Aug PKR 122,430 0.11% Silver 17-Aug $/oz 19.73 -1.76% Cotton(KHI)-40 kg 17-Aug PKR 21,970 10.81% Kibor-6M 17-Aug % 15.99 15.99% 5-Aug $ Bn 13.56 WoW -4.56% Jul-Jun 22 $ Bn 31.24 6.36% Exports* Jul-22 $ Bn 2.22 -4.76% Imports* Jul-22 $ Bn 4.86 -10.48% Jul-22 $ Bn -2.64 14.77% Jul-Jun 22 Jul-Jun 22 $ Bn $ Bn -17.41 1.87 -839.8% 1.13% Forex Reserves YoY Remittances Trade Balance* Current Account Foreign Direct Inv. Jul-May 22 LSM Growth* % 7.10 % 24.93 Jul-22 Avg. CPI Discount Rate % 15.00 Jul-22 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 305 295 285 275 265 255 245 235 225 215 205 195 185 175 165 155 145 Aug-21 GBP, 17-Aug-… EUR, 17-Aug-22, 214.0 USD, 17-Aug-22, 213.6 USD Nov-21 GBP Feb-22 EUR May-22 Aug-22 Source: KCCI Research Quote of the Day "Every day may not be good... but there is something good in every day.” \ Pakistan is to seek long-term and short-term LNG contracts with Qatar in addition to offering the latter the establishment of offshore LNG terminal and a stake in PIA. BR-Thu. RDA customers: SBP issues service standards on mobile apps SBP has issued service standards for enablement of minimum set of services on Mobile Applications for Roshan Digital Accounts (RDA) customers to provide an exceptional digital experience via their web portals, mobile apps and other digital channels. BR-Wed. FY22 LSMI output grows 11.7% YoY LSMI output has registered a growth of 11.7% during FY22 as compared to FY21, PBS said. The LSMI output increased by 11.5% for Jun’22 YoY when compared with Jun’21 and 0.2% on MoM basis when compared with May’22 with the base year, 2015-16. BR-Wed. Alice Morse Earl Per Capita Income from FY16 to FY22 (PKR Bn) 195.781 Registered developers, builders: FBR says annual renewal of registration not needed FBR has directed all registered developers and builders that there is no need for annual renewal of their registration each year with the FBR. However, all concerned development authorities/housing schemes or societies must verify their status of the registration through the FBR web portal. BR- Wed. 190.34 Bonded carriers: Suspended clearing agents can file appeals before DGTT: FBR FBR has allowed suspended clearing agents of the bonded carriers to file appeals before the Director General Transit Trade, Karachi within 60 days. The FBR has issued SRO1497(I)/2022, to amend the Customs Rules, 2001. BR- Wed. CPPA-G links support for Kapco PPA to NTDC analysis Central Power Purchasing Agency–Guaranteed (CPPA-G) has reportedly linked any support for extension in PPA of Kot Addu Power Company (Kapco) with comparative analysis of National Transmission and Despatch Company (NTDC)/ NPCC. BR-Wed. 180.034 170.924 182.84 179.318 173.785 5% tax on manufacturers likely The govt. may impose 1-5% special income tax on manufacturers having annual income of PKR 50Mn and more while exporting less than 10% of their production, for creating fiscal space providing a relief of billions to the traders, bankers, brokers and real estate players. Tribune-Thu. SECP issues Master Circular To facilitate the asset management industry in compliance with statutory/regulatory requirements in an efficient manner, SECP has issued a Master Circular containing all the applicable circulars, directions and clarifications of the Commission from 6thJan’09 up to 5thJul’22 for regulation of collective investment schemes (CIS) /mutual funds/ investment advisory services. BR-Wed. Shell Pakistan to stop aviation operations In a regulatory filing to the PSX, Shell Pakistan Ltd said it is going to discontinue its aviation operations across Pakistan. The company currently conducts its aviation-related operations at four locations: Karachi’s Jinnah Airport, Quetta International Airport, Sukkur’s Begum Nusrat Bhutto Airport and Nawabshah Airport. Dawn-Thu. ADB to promote transparency in borrowing practices ADB has approved technical assistance to help promote increased sustainability and transparency in Pakistan’s borrowing practices. The assistance on a grant basis will focus on the implementation of the Sustainable Development Finance Policy (SDFP), strengthening fiscal risk management practices, and public debt recording, management, and reporting. Dawn-Wed. FY16 FY17 FY18 FY19 FY20 FY21 FY22 Note If any member is facing any issues pertaining to PakistanAfghanistan investment and trade policies or has project proposals is requested to share the information at secretary@kcci.com.pk for forwarding to the Board of Investment.