Pakistan Daily Economy Update - 2 December

Transcription

1. Dec 02 , 2020 KCCI - eBulletin NEPRA approves reduced power tariffs for industry NEPRA has approved the Support Package for Additional Consumption and abolishment of time of use tariff scheme for industrial consumers of XWDISCO and KE which will help in reduction of power tariff by up to 50% for various categories of industrial consumers. The decision will help in reducing Peak tariff from PKR 21.67 per unit to PKR 15.92 per unit, all incremental SME industrial consumption will get electricity at PKR 8 per unit for FY21, with around PKR 8 per unit reduction for FY21, and PKR 12.96 per tariff for FY22 & FY23. The Nation. FBR says it paid PKR 80Bn refunds in Jul-Nov FBR has paid refunds of PKR 80Bn during 5MFY21 against PKR 41Bn in 5MFY20, reflecting an increase of PKR 39Bn. The refunds issued during Nov’20 are over PKR 17Bn which were PKR 4Bn in Nov’19. BR. Exports again surpass $ 2Bn mark in November Adviser on Commerce Razak Dawood has said that exports have increased 7.2% year-on-year and have surpassed the $ 2Bn mark for the second consecutive month in Nov’20, as the govt. refrained from abrupt shutdown after resurgence in coronavirus infection. The News. FBR disposes of cases without audit After its inability to settle about 310,000 tax audit cases through proper scrutiny, FBR has started disposing of the cases that has remained pending for up to six years in haste, which could cause losses to the exchequer. About 310,000 audit cases had remained pending for the last 3-6 years due to lack of human resources capacity. FBR decided to close all the cases on the basis of certain parameters instead of conducting a comprehensive audit. The FBR has decided not to close about 17,500 cases where it has some information about the taxpayers. Tribune. FBR tax collection rises 3.8% to PKR 1,688Bn in July-Nov FBR tax collection has went up 3.8% to PKR 1,688Bn in the 5MFY21, compared to PKR 1,623Bn collected in 5MFY20. It now requires around 20% growth in order to materialize its desired tax collection target by 30th Jun’21 of PKR 4,963Bn. To increase collection, FBR has launched a system Maloomat-TaxRay wherein taxpayers’ can access all information available with the FBR by logging through a secure mechanism. For further facilitation, this feature has been launched in the mobile app, Tax Assan, so that taxpayers’ can easily access all such information. The News. ECC may approve removal of 5% RD on cotton yarn ECC may give approval to removal of 5% Regulatory Duty (RD) on the import of cotton yarn till 30th Jun’21, and a procedure for registration under concessionary regime of electricity, the RLNG and gas under export-oriented sectors (erstwhile zero-rated sectors). BR. Projects under Karachi Transformation Plan: Planning ministry for utilization of Bahria settlement amount Ministry of Planning has proposed that Ministry of Law and Justice should file a reference in the Supreme Court for utilization of the Bahria Town settlement amount for the projects under Karachi Transformation Plan. Govt. of Pakistan (GoP) through NDMA/Ministry of Water Resources, Sindh Infrastructure Development Company Ltd (SIDCL) and Pakistan Railways, intends to undertake projects worth around PKR 739Bn over the next three years through PSDP, Public Private Partnership (PPP), Supreme Court Fund and foreign funding (if required) for Karachi infrastructure improvement in the identified areas. BR. Inflation eases to 8.3% in November Inflation eased to 8.3% in Nov’20, from 8.9% in Oct’20 on the back of a slight decline in the price of perishable products, showed data by PBS. The average CPI eased from 10.8% in 4MFY20 to 8.76% in 4MFY21. Dawn. State Bank revises Ijara Sukuk transaction structure SBP has revised the transaction structure of the govt. of Pakistan domestic Ijara Sukuk. Jinnah International Airport Karachi together with identified and undisputed land of Civil Aviation Authority surrounding the JIAP have been identified as the proposed Assets to facilitate issuance of GoP Ijarah Sukuk. The News. Fuel loading starts for nuclear power plant testing Pakistan has started loading fuel to the 1,100MW nuclear power plant in Karachi for testing in run-up to its commercial operations in Apr’21. K-2 is one of the two 1,100MW nuclear power plants being constructed at Karachi. The other plant, K-3, is expected to become operational by end-2021. Dawn. Hubco power plant offers govt buyout for PKR 65Bn \ Hubco Power Plant in Balochistan that operates only on 1% of its capacity in the entire year and the govt. owes it PKR 260Bn as capacity payments for next seven years, has offered the federal govt. to buy it out for PKR 65Bn. The plant was built in 1997 with Power Purchase Agreement of 30 years and supplies 1,200 MW (net) electricity to the national grid. The News. World economy back to pre-pandemic level in 2021: OECD OECD has said that the global economy may get back to pre-pandemic levels by the end of next year as vaccines help propel recovery, but growth is likely to be uneven. OECD said that it sees world output dropping by 4.2% this year due to the months-long lockdowns that slowed the spread of the coronavirus but threw a wrench into the global economy. But it forecasts the world economy to snap back with 4.2% growth in 2021. The News. Economic Indicators List of Indicators Change Daily 1-Dec PKR PKR 159.82 160.30 0.25% 0.06% KSE-100 index FIPI 1-Dec 1-Dec Pts. $ Mn 41,665 -5.48 1.45% NM** Crude (AP'19) 1-Dec $/bbl 44.55 -1.48% Gold (MA'19) 1-Dec $/oz 1,818.9 2.10% Gold (10g) Local 1-Dec PKR 91,140 -1.38% Silver (MA'19) 1-Dec $/oz 24.09 5.89% Cotton(KHI)-40 kg 1-Dec PKR 10,128 0.00% Kibor-6M 1-Dec % 7.34 -0.01% 20-Nov $ Bn 20.55 WoW 2.32% Remittances Jul-Oct 20 $ Bn 9.43 26.10% Exports* Jul-Oct 20 $ Bn 7.55 0.33% Imports* Jul-Oct 20 $ Bn 15.13 -0.79% Trade Balance* Jul-Oct 20 $ Bn -7.58 1.88% Current Account Foreign Direct Inv. Jul-Oct 20 Jul-Oct 20 $ Bn $ Bn 1.16 0.73 181.75% 9.09% Forex Reserves YoY Jul-Sep 20 LSM Growth* % 4.81 % 8.76 Jul-Nov 20 Avg. CPI Discount Rate % 7.00 Jul-20 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 235 225 GBP, 1-Dec-20, 213.5 215 205 195 EUR, 1-Dec-20, 191.5 185 175 165 155 USD, 1-Dec-20, 145 USD Dec-19 GBP Mar-20 159.6 Source: KCCI Research ; Oanda.com EUR Jun-20 Sep-20 Quote of the Day “You should learn from your competitor, but never copy. Copy and you die.” Jack Ma Comparative View of CPI Inflation (%) 12 Public-private partnership: Sindh govt. decides to identify, develop tourist sites Sindh govt. has decided to conduct feasibility study of 10 tourist sites and identifying more sites for promoting tourism in the province through Public-Private Partnership. The tourism sites, where the feasibility study would be carried out, include Gorakh Hill Station in Dadu district among others. BR. 4 Govt moves to make CCP financially sound The Ministry of Finance has issued an SRO for the implementation of decisions taken by the federal govt. 12 years ago to make the Competition Commission of Pakistan financially strong and independent. The SRO has directed five other regulatory bodies including SECP, Nepra, Ogra, Pakistan Telecommunication Authority and Pemra to pay 3% of their surplus amount to the CCP. Dawn. Value 1-Dec 10 Govt to get vaccine in first quarter of 2021 Special Assistant on Health Dr. Faisal Sultan has said that the govt. expects the first phase of coronavirus vaccine procurement in the first quarter of next year, as the federal cabinet approved $ 150Mn for it. Dawn. Unit USD-Interbank USD-Open MKT Afghanistan working on new visa regime for Pakistan: Daudzai Special envoy of the Afghanistan President for Pakistan, Omer Daudzai has said that a new visa regime for Pakistanis is underway and would be announced soon. He said that the newly Afghanistan-Pakistan Transit Trade Agreement (APTTA) and Preferential Trade Agreement (PTA) signed in consultations with Pakistan Afghanistan Joint Chamber of Commerce and Industry would bring better results for the business community of both neighboring countries. BR. Delayed connections pile up as Discos seek 86-paisa tariff hike About 750,000 applications for new connections involving 1,500-1,600MW of electricity are pending with various distribution companies (Discos) of ex-Wapda as the consumers face about 86-paisa per unit increase in tariff on account of PKR 85Bn capacity charges during AprilJune 2020. Dawn. Date / Period 8 6 10.8 10.77 10.84 10.86 8.76 6.37 6.07 7.38 5.65 2 0 CPI (National) CPI (Urban) 5MFY19 5MFY20 CPI (Rural) 5MFY21 Source: KCCI Research, PBS TRADE INQUIRIES Members interested in exporting fuel barrels (various specifications), Stationary, Books, Office Equipment and Carpets to Jorden are requested to send their company profiles with KCCI membership number at res@kcci.com.pk.