Pakistan Daily Economy Update - 19 September

Transcription

1. September 18-19 , 2022 KCCI - eBulletin Cell phones worth $ 102Mn imported in July, Aug Pakistan imported mobile phones worth $ 101.864Mn during Jul-Aug of FY23, and registered a negative growth of 64.38% when compared to $ 285.947Mn during Jul-Aug of FY22. PBS’s data shows that on a MoM basis mobile phone imports registered 62.51% growth and remained $ 63.060Mn in Aug’22 when compared to $ 38.804Mn in Jul’22. Mobile phone imports registered 62.16% negative growth on a YoY basis in Aug’22 when compared to $ 166.710Mn during Aug’21. The overall telecom imports into the country remained $ 169.438Mn during Jul-Aug of FY23 and registered 53.84% negative growth when compared to $ 367.051Mn during Jul-Aug of FY22. The local manufacturing plants have manufactured/assembled 14.94Mn phone handsets during the 7MCY22 compared to 1.16Mn imported commercially, says the PTA. BR-Sun. Unit Value Change Daily 16-Sep PKR PKR 236.84 240.70 0.40% 0.08% KSE-100 index FIPI 16-Sep 16-Sep Pts. $ Mn 41,679 3.48 -0.22% NM** Non-textile exports post paltry growth on demand slowdown Exports of non-textile products slightly rose 1.81% to $ 1.68Bn in 2MFY23 against $ 1.65Bn in 2MFY22 data compiled by the PBS showed. In the valueadded leather sector, exports of leather garments entered a negative growth of 6.85%. Contrary to this, the exports of raw leather increased by over 8.52% during the Jul-Aug’22. The export of surgical instruments posted a negative growth of 2.32% in Jul-Aug’22 over Jul-Aug’21. However, the exports of pharmaceutical products posted a growth of 14.72% during Aug’22. Dawn-Sun. Crude Oil 18-Sep $/bbl 85.28 0.20% Gold 18-Sep $/oz 1,686.6 0.18% Gold (10g) Local 16-Sep PKR 132,800 -0.58% Silver 18-Sep $/oz 19.65 1.36% Cotton(KHI)-40 kg 17-Sep PKR 24,113 2.27% No dollars for food imports from Iran, Afghanistan The food importers, especially vegetables, from Afghanistan and Iran have been relying on the grey market to make payments since they are not allowed to buy dollars from banks or exchange companies. The country has been facing an acute shortage of food products forcing the govt. to immediately allow imports from neighboring countries to bridge the supply and demand gap but it has not arranged for the provision of greenbacks to make payments against these imports. Dawn-Sun. Kibor-6M 16-Sep % 16.10 -0.01% Forex Reserves 12-Aug $ Bn 13.61 WoW 0.38% Jul-Aug 22 $ Bn 5.25 -2.18% Karachi parched as illegal hydrants make money Karachi has been in throes of a water crisis that is being exasperated by the pilferage of water from the main supply pipelines by illegal hydrants allegedly in connivance with authorities, according to sources. Thousands of gallons are being stolen every day, which is adversely affecting water supplies to various areas of Defense, Clifton, Korangi, Sadar, Gulshan-e-Iqbal, Gulistan-e-Jauhar, North Karachi, New Karachi, and Malir. Tribune-Sun. Exports* Jul-22 $ Bn 2.22 -4.76% Imports* Jul-22 $ Bn 4.86 -10.48% Trade Balance* Jul-22 $ Bn -2.64 14.77% Empowered by law, police ask businesses to install CCTV cameras In the wake of recent upsurge in street crimes, the city police, through written notices, have asked shopkeepers and business owners to install their own CCTVs to ensure security, while warning them of legal actions in case of non-compliance with the directives. Dawn-Sun. Jul-22 Jul-Jun 22 $ Bn $ Bn -0.85 1.87 -10.1% 1.13% Jul-Jun 22 LSM Growth* % 11.70 % 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 ‘25% of crop washed away’: PTEA wants ban on import of Indian cotton lifted soon PTEA’s Chairman urged the govt. for immediate lifting of ban on import of cotton from India. He stressed that the govt. has to act promptly in this regard to avert a cotton crisis as according to estimates, 25% of cotton crop has been completely swept away during floods. BR-Sun. ADB’s ongoing sovereign portfolio in Pakistan includes 48 loans worth $8.42bn The ongoing sovereign portfolio of the ADB in Pakistan includes 48 loans and 3 grants worth of $ 8.42Bn. According to the member fact-sheet released by ADB, in 2021, ADB’s loan and grant disbursements to Pakistan amounted to $ 1.31Bn, comprising $ 0.3Bn in program lending and $ 1.01Bn from project lending and $ 3Mn from grants. To date, ADB has committed 723 public sector loans, grants, and technical assistance totaling $ 37Bn to Pakistan. Cumulative loan and grant disbursements to Pakistan amount to $ 28.27Bn. BR-Sun. Profit rate by CDNS: Retrospective downward revision declared as ‘misrule’ President Dr Arif Alvi has directed CDNS to pay profit on the Special Saving Certificates (SSCs) as per the profit rate prevailing at the time of purchasing the certificates. BR-Mon. Discos’ consumers to get relief: CPPA-G seeks 22 paisa/unit positive adjustment in Aug FCA The consumers of Discos would have relief in their bills as the CPPA-G has sought PKR 0.22/unit positive adjustment in FCA for Aug’22. However, the overall increase in bills of Aug’22 is estimated to be about PKR 4/unit, which includes pending increase of PKR 3.50/unit in base tariff and a positive adjustment in QTA of 4QFY22. BR-Sun. DISCOs oppose solar power plan The govt.’s plan to inject 10,000 MW of electricity through solar power projects is under threat following opposition from DISCOS interested in maintaining their monopoly, who are placing hurdles in implementing the net metering system for domestic consumers who have installed solar power systems. Tribune-Sun. Woes of the cargo industry As per the WB’s latest statistics for 160 countries, Pakistan comes at 122nd place in terms of Logistics Performance Indicators (LPI), with Germany at the first rank and India at 44th. Dawn-Mon. \ List of Indicators Date / Period USD-Interbank USD-Open MKT 16-Sep YoY Remittances Current Account Foreign Direct Inv. Major Currencies 305 295 285 275 265 255 245 235 225 215 205 195 185 175 165 155 145 Sep-21 GBP, 18-Sep-… EUR, 18-Sep-22, 240.2 USD, 18-Sep-… USD Dec-21 GBP Mar-22 EUR Jun-22 Quote of the Day “I never dreamed about success. I worked for it.” Telecom companies denied cheaper industrial power tariff Nepra has rejected a request of the telecom and cellular ‘industry’ to change its power tariff from commercial to a cheaper industrial electricity tariff, after the ministries of energy and finance opposed telecom industry’s petitions due to an expected loss of over PKR 20Bn in annual revenue. Dawn-Mon. IMF to work with international community IMF has announced to work with others in the international community to support the authorities’ relief and reconstruction efforts, and their ongoing endeavor to assist those affected by floods while ensuring sustainable policies and macroeconomic stability. BR-Mon. Complaints against corrupt taxmen: FBR issues SOP FBR had issued the SOP through the Circular No 10 of 2021, exclusively designed for the taxpayers to lodge complaints of corruption, rent-seeking and unethical conduct against any FBR functionary without any fear of reaction or revenge. BR-Sun. Survey teams determine scale of devastation caused by rains Survey teams are working in the flood-affected districts of all provinces to quantify scale of losses by the unprecedented rains in the country. In this regards, joint survey would be started in Sindh most probably from 25th Sept’22. BR-Sun. Murad pledges financial aid to farmers for Rabi crop CM Sindh has said that dewatering and restoration of irrigation network were important tasks of govt. and the farmers would be provided financial assistance in the shape of fertilizer, seed or fuel, for their Rabi crops. Dawn-Sun. Pakistan gets breather on $ 3Bn Saudi loan Saudi Arabia has rolled over a $ 3Bn debt for 1-year on the existing tough terms and IMF announced support for Pakistan’s flood-relief efforts but without giving any additional loan. Rather, the IMF, after the WB, also emphasized upon Pakistan to follow “sustainable policies and macroeconomic stability”. Tribune-Sun. Govt. denies shortage as millers seek wheat import As the price of wheat surged by up to 10-20% on the outlook for a possible delay in sowing of the staple crop in Oct’22 and doubling of the grain support price to PKR 4,000/40kg by the Sindh govt. for next cultivation season, the mill owners sought permission for the import of the commodity. Meanwhile, a special session of the National Flood Response Coordination Centre (NFRCC) was told that sufficient stock of wheat was being maintained in the country and that there was no shortage of the commodity. Tribune-Sun. Biden urged to give more aid A US senator has described the $ 53Mn USAID for flood-hit Pakistan as “a drop in the bucket”; urging President Joe Biden to increase the amount in order to provide much-needed relief to a roughly estimated 30Mn displaced people. Tribune-Sun. FIA tasked to look into PKR devaluation In order to stop the continuous devaluation of PKR, the govt. has tasked FIA to look into matter of USD flight that is almost unstoppable despite the fact that the country has received the much-needed financial boost in the shape of IMF tranche. BR-Mon. Sep-22 Source: KCCI Research Estée Lauder Top 10 Counteries for Remittances in Aug'22 ($ Mn) SAUDI ARABIA 691.8 DUBAI 405.8 369.7 UK 294.4 USA 118.8 ABU DHABI OMAN QATAR KUWAIT ITALY AUSTRALIA 92.1 88.6 77.3 76.00 60.9 Source: KCCI Research, SBP 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.