Pakistan Daily Economy Update - 23 April

Transcription

1. Apr . 22-23, 2018 KCCI - eBulletin Customs duties could see hike as FBR tackles income tax relief In a bid to partially offset the impact of income tax relief to be announced in the forthcoming budget, tax authorities are seeking an increase in rates of customs duties on about 4,000 tariff lines. The FBR is bewildered with the question of how to maintain its current tax collection base in the aftermath of the govt.’s decision to appease various lobbies ahead of the elections. One option the FBR has almost finalised is to increase customs duty on raw materials, semi-finished and finished goods by 1%, resulting in rates increase of three custom tariff slabs of 3%, 11% and 16%. Tribune. No further devaluation of rupee in near future: Miftah Adviser to the PM on Finance Miftah Ismail has said that Pakistan does not see any further devaluation of rupee in near future. In an interview with Bloomberg, he said that since exports were up 24% in Mar’18, things are improving and there is no need of further devaluation. The Adviser is on a visit to attend the World Bank and IMF annual spring meetings. BR-Sun. Dollar hits all-time high of PKR 118.20 Devaluation of local currency against the US dollar is continuing in the open market, with the greenback hitting an all-time high of PKR 118.20 on Sat (21st Apr). The dollar is reportedly not easily available since demand is very high, particularly after the government barred property deals without accompanying disclosure on source of income. Dawn-Sun. FBR mulls increase in penalty on non-filers The FBR is mulling an increase in penalty on non-filers of returns to 0.2% of the payable tax from FY19, as against the existing 0.1%. The increase in penalty is under consideration in the wake of tax exemption for salaried and business individuals, which is likely to have an adverse impact on returns filing as an estimated 0.5Mn returns may be lost. The increase in penalty may encourage filing of returns. It has been proposed that if the penalty is less than PKR 200,000 or no tax is payable for the tax year, an individual should pay PKR 200,000 in penalty. However, if an individual files a return within the stipulated time, the amount of penalty payable should be reduced to half. At present, the penalty for noncompliance of wealth statement is PKR 25,000 for each day of default, subject to a minimum penalty of PKR 10,000. The News-Sun. New tariff policy seeks to boost exports The Commerce Division has come up with the National Tariff Policy, seeking reduction on more than 450 tariff linescomprising raw materials and machinery for export-oriented industries, in order to enhance export competitiveness and productivity of the domestic industries. The division has evolved the policy recommendations in collaboration with National Tariff Commission (NTC), which will be made part of Strategic Trade Policy Framework (STPF) 2018-23 to provide strategic direction for the export sector for the next five years. The policy seeks to take powers of imposing regulatory duties and customs duties from FBR and vesting the power in the federal cabinet; the cabinet will act on the advice of the minister-in-charge of commerce. The NTC and FBR will be consulted by the Commerce Division before proposing any tariff changes so any change in tariff lines will be made after due consultations. Dawn-Sun. K-Electric, KWSB behind power crisis in Karachi, says ministry Instead of finding a solution to the deepening power crisis in Karachi, the blame game has intensified as the federal govt. has held Sindh administration and K-Electric responsible, and has asked the province to address the issue. Minister for Power Division Awais Ahmad Khan Leghari, in a letter sent to Sindh CM, has blamed K-Electric and KW&SB, which had defaulted on energy payments of PKR 32Bn, for triggering the electricity crisis, terming it a result of mismanagement, system inefficiencies and commercial mishandling by K-Electric. Tribune-Sun. Murad urges Centre to delink disputed claims In a reply to the letter of Federal Energy Minister Awais Leghari, Sindh CM Murad Ali Shah has said that the KW&SB has a claim of about PKR 18Bn against various federal govt. entities operating in Karachi. He expressed remorse over non\ payment of dues by the federal govt. entities despite several notices, and stated that the govt. of Pakistan has to take the responsibility for the failures of KE. He urged, that issue of disputed claims amongst different entities should be de-linked from the additional gas supply to KE. BR-Sun. Electricity, water crises: Traders decide to stage sit-in protest in next week Industrialist in Karachi have announced to launch a protest movement against power outages and water crises in industrial areas. In a meeting, they have agreed to assemble outside Karachi Press Club next week to hold protest demonstrations as well as publishing advertisements in the national press, inscribed with appeals to redress their water and power woes. Severe water crisis and prolonged water shortages have been causing immense losses to industries, but no remedial measures have been taken. BR-Sun. Prime Minister to finalise fiscal year 2019 budget contours today PM Shahid Khaqan Abbasi is likely to discuss various aspects of budget FY19, including the size of federal development outlay and taxation measures today (23rd Apr). There are differences between ministries of Planning, and Finance over the size of development outlay, with Ministry of Planning proposing it to be PKR 1.2Tn while Ministry of Finance suggesting it to be PKR 750Bn. BR-Mon. 15th My Karachi, Oasis of Harmony Exhibition ends The 15th edition of 'My Karachi, Oasis of Harmony International Exhibition' concluded on Sun (22nd Apr) with thousands of visitors, including mostly women and children, thronging the venue. Some 300 local and international companies had setup stalls to showcase their products during the 3-day event. The exhibition also featured stalls by Pakistan armed forces, including, navy and the air force. Organized by KCCI, the exhibition offered not only a platform for cultivating trade relations with other countries but also enabled foreigners to become familiar with the Pakistani culture, its people and products. BR-Mon. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 20-Apr 115.62 117.55 0.00% 0.00% Crude (JU'18) 20-Apr 20-Apr 20-Apr 20-Apr PKR PKR Pts. $ Mn $/bbl 45,259 -3.15 1,338.20 -0.28% NM** 1862.46% Gold (MY'18) Gold (10g) Local 20-Apr 20-Apr $/oz PKR 1,334.7 51,342 -0.79% -0.58% Silver (MY'18) Cotton(KHI)-40 kg 20-Apr 20-Apr $/oz PKR 17.13 8,145 -0.78% 0.00% Kibor-6M 20-Apr % 6.52 $ Bn 17.55 0.01% WoW -0.53% Remittances 13-Apr FY18 Jul-Mar 18 $ Bn 14.61 YoY 3.55% Exports* Imports* Jul-Mar 18 Jul-Mar 18 $ Bn $ Bn 17.08 44.38 13.08% 15.57% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Jul-Mar 18 Trade Balance* $ Bn -27.30 Jul-Mar 18 Current Account $ Mn -12,029 Foreign Direct Inv. $ Bn 2.09 Jul-Mar 18 Jul-Feb 18 LSM Growth* % 6.24 % 3.20 Jul-Mar 18 Avg. CPI Discount Rate % 6.00 Mar-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -17.18% -50.55% 4.44% Major Currencies 175 GBP, 22-Apr-18, 162.0 165 155 145 EUR, 22-Apr-18, 142.1 135 125 115 USD, 22-Apr-18, 115.7 105 95 Apr-17 Jul-17 GBP USD EUR Oct-17 Jan-18 Source: KCCI Research ; Oanda.com Quote of the Day "Success is walking from failure to failure with no loss of enthusiasm." Winston Churchill Chart of the Day PAKISTAN's REFINERY PRODUCTION 5 4 3 2 1 0 FY12 FY13 FURNACE OIL FY14 FY15 FY16 HIGH SPEED DIESEL FY17 8MFY18 MOTOR SPIRIT Source: KCCI Research, OCAC Figures are in Mn tons Disclaimer Miftah draws WB’s attention to India’s non-adherence to IWT This report has been prepared by KCCI Research & Development Cell. The information contained Adviser to the PM on Finance, Miftah Ismail, has conveyed Pakistan’s concerns to the World Bank (WB) over India's non- herein have been compiled or arrived at based upon information obtained from sources believed to adherence to the Indus Waters Treaty (IWT). Miftah met MD World Bank in Washington, and drew her attention to be reliable and in good faith. Such information has not been independently verified. disputes between Pakistan and India over the construction of hydropower projects, requesting the WB to play its role icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' under the IWT. Miftah also discussed WB’s portfolio with in Pakistan as well as the future pipeline. The News-Sun. understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. Contact: res@kcci.com.pk