Pakistan Daily Economy Update - 21 October

Transcription

1. Oct . 21, 2017 KCCI - eBulletin 1QFY18 current account deficit soars to $ 3.6Bn YoY The country's current account deficit rose to $ 3.6Bn during 1QFY18 as compared to $ 1.6Bn recorded in 1QFY17, standing at 4.2% of GDP as compared to 2.2% in the same period last year. The trade deficit increased to $ 8.45Bn compared to $ 6.42Bn in 1QFY17. During Sept.’17, CA deficit stood at $ 956Mn against $ 550Mn in Aug.’17. Month-on-month basis, trade deficit remained flat at $ 2.2Bn during Sept.’17. The overall balance of payment, which includes financial account and capital account, remained in red standing at $ 761Mn in Sept.’17. BR. SBP acts to check Dollar hike The State Bank of Pakistan (SBP) called an emergency meeting of officials of Exchange Companies. The Executive Director Banking Policy, SBP, expressed concern over the increasing rates of US dollar and stated that there is no justification for such an increase. There is no shortage of USD and the supplies of cash USD are available in any quantity with SBP, banks and Exchange Companies. He also advised to refrain from speculations/rumors. BR. Pakistan among top 5 PPI investment recipients A World Bank Group’s report has noted that Pakistan has entered the list of the top five recipients of Private Participation in Infrastructure (PPI) investment after receiving $ 3.9Bn. According to the report, "PPI half year (Jan-June) update", Indonesia was the destination for highest investment by value ($ 7.8Bn), while Pakistan ($ 3.9Bn) and Jordan ($ 2.2Bn) are new entrants in the club joining Indonesia, Brazil, and China. The top five countries with the highest amount of investments in 1H2017, in order of investment level, were Indonesia with 6 projects, Brazil with 21 projects, Pakistan with three projects, China with 36 projects, and Jordan with two. Onethird of the 1H2017 global investment was accounted for by only five projects in these three countries. BR. Govt takes non-tariff steps to curb imports The government has stepped up its efforts to discourage imports by linking clearances of goods with compliance to stringent regulations. The new regulations will also apply to imports under FTAs and Preferential Trade Agreements (PTAs) as well. Under the regulations, some imported products would be subjects to valid special import permit, valid phytosanitary certificate and Plant Protection Release Order by Department of Plant Protection, Ministry of Food Security and Research. Dawn. Govt considers action against banks to gain access to data As pressure mounts to broaden the tax base, authorities are reviewing the possibility of taking serious action against commercial banks for their continuous refusal to provide information about their accountholders. The Tax Reforms Implementation Committee (TRIC), held a detailed discussion on the forensic audit of commercial banks and their refusal to give the Federal Board of Revenue (FBR) online access to their accountholders. The FBR chairman would soon be holding a final meeting with the SBP and Pakistan Banking Association before taking any steps. Tribune. Govt takes $ 450Mn loan to prop up sliding forex reserves Pakistan has obtained a $ 450Mn short-term foreign commercial loan from a Credit Suisse-led consortium of banks aimed at arresting the slide in official foreign currency reserves that have depleted $ 4.4Bn in just one year. The consortium consists of Credit Suisse AG, United Bank Limited and Allied Bank Limited. It is the third loan agreement that Pakistan has signed with Credit Suisse in the past five months, indicating its growing dependence on an unusual source of foreign financing. Tribune. Debt servicing shrinks The Ministry of Finance has said that the country’s debt servicing dropped by 10% to $ 5.8Bn from last year’s $ 6.44Bn. Ministry in a statement said that commercial financing is a normal activity and part of overall financing plan for the current fiscal year. Commercial financing has been planned in terms of budgetary outlay for 2017-18 to bridge resource gap and supplement external buffers. Dawn. TIR Convention rules notified After a delay of 27 months, FBR has notified rules to implement the Convention on the International Transport of Goods for traffic-intransit of goods across the border. Pakistan signed the convention in Aug’15 which entails no payment of customs duties and taxes. Dawn. SBP lauds improved security's impact on economy SBP Deputy Governor, has attributed the revival of economic activities in the country to the impact of improved security conditions. A marked turnaround in retail sales has been observed in metropolises, with positive readings in investor and consumer confidence \ surveys, he dilated at a meeting. Tribune. SECP directs listed companies to e-file statements According to the circular number 24 of 2017, SECP has directed listed companies to electronically file annual and quarterly financial statements. The pursuant to the provisions of section 223(7) of Companies Act, 2017 (the "Act"), a listed company shall, besides filing hard copies of its annual audited financial statements, auditor's report, director's report and chairman's review report, send electronically a copy of the annual financial statements together with the aforesaid reports to the Commission. In terms of section 237(2) of the Act, every listed company shall electronically transmit its quarterly financial statements to the Commission. BR. Unit Value Change Daily 20-Oct 20-Oct 20-Oct 20-Oct 19-Oct 19-Oct 20-Oct 19-Oct 20-Oct 20-Oct PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.43 107.20 42,088 -5.30 51.59 1,289.1 45,428 17.25 6,591 6.16% 0.01% -0.09% 1.27% NM** -1.32% 0.66% 0.00% 1.55% 0.00% -0.01% WoW 1.93% YoY 1.05% 10.84% 22.19% -29.75% -117.29% 56.33% Forex Reserves $ Bn 20.05 13-Oct FY18 Jul-Sep 17 Remittances $ Bn 4.79 Jul-Sep 17 Exports* $ Bn 5.17 Jul-Sep 17 Imports* $ Bn 14.26 Jul-Sep 17 Trade Balance* $ Bn -9.09 Jul-Sep 17 Current Account $ Mn -3,557 Foreign Direct Inv. $ Bn 0.66 Jul-Sep 17 Jul-17 LSM Growth* % 12.98 % 3.39 Jul-Sep 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 20-Oct-17, 138.4 145 135 125 EUR, 20-Oct-17, 124.1 115 105 95 Oct-16 USD Jan-17 GBP EUR Apr-17 USD, 20-Oct-17, 105.1 Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "Without deep reflection one knows from daily life that one exists for other people." Albert Einstein Chart of the Day Pakistan's Monthly Trade Data 7 3.91 4.27 4.72 4.62 4.10 4.30 1.74 2.10 1.83 1.89 1.96 1.78 2.08 1.79 1.81 4.10 4.33 1.89 1.83 2 1.86 3 3.46 4 4.24 5 5.08 6 3.95 HBL’s profit reduces to PKR 1.6Bn with NY settlement payment HBL's consolidated profit after tax for 9MCY17 ended Sept. 30, 2017 has reduced to PKR 1.6Bn as a result of $ 225Mn settlement payment made to the New York State Department of Financial Services. Consolidated profit before tax for this period stood at PKR 18.8Bn (EPS: PKR 0.87). As a result of the settlement payment, the consolidated Tier 1 CAR as at Sept. 30, 2017 has reduced to 10.6%, with the total CAR at 13.6%. Excluding the impact of the settlement payment, HBL's consolidated profit after tax for 9MFY17 is PKR 25.3Bn, and pre-tax profit for 9MFY17 is PKR 42.5Bn, both 2% lower than 9MCY16. BR. Date / Period Crude (DE'17) Gold (NO'17) Gold (10g) Local Silver (NO'17) Cotton(KHI)-40 kg Kibor-6M 1.69 500,000 Chinese professionals expected in Gwadar by 2023 A leading Chinese investment company has announced to invest $ 500Mn in Gwadar in first phase of project aimed at building homes for around 500,000 Chinese professionals expected to relocate to Gwadar by 2023. China Pak Investment Corporation (CPIC) has announced partnership with Top International Engineering Corporation (TIEC), a Chinese state owned company with over $ 100Bn worth of projects delivered since 1950, to develop China Pak Hills the first Chinese built master-community in Gwadar. The News. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 3.28 Traders demand freight subsidy on Kinnow exports to Russia Pakistani exporters have demanded freight subsidy of at least $ 2,500/container on the export of Kinnow to Russia in order to compete with Turkey, Morocco, and Egypt. These three countries are granting subsidies on the export of the citrus fruit on top of supporting their horticulture sectors in various ways, claimed the exporters. In the wake of 35 to 125% devaluation in the currencies of the aforementioned states in the last two years, Pakistani Kinnow has become costlier in the Russian market, dealing the local exporters losses of around $ 45Mn in the last season. The News. Economic Indicators 1 Exports * Figs in Bn USD Imports Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The information USAID funding not properly used in Pakistan: report contained herein have been compiled or arrived at based upon information obtained from Office of Inspector General (OIG) for USAID has found in its audit report that Washington reduced its committed amount from $ 75Mn sources believed to be reliable and in good faith. Such information has not been independently to $ 45Mn for Strengthening Citizen Voice and Public Accountability Programme in Pakistan but it was not implemented properly for verified. achieving the desired objective. According to the audit report prepared by OIG, the USAID mission shortened and reduced funding for 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 the programme without adjusting its expected results. The News. accuracy. Contact: res@kcci.com.pk