Pakistan Daily Economy Update - 23 January

Transcription

1. Jan . 23, 2018 KCCI - eBulletin Govt. prepares to take aim at tax evaders The government has drafted a new plan to broaden the tax net in phases as part of a revenue drive. The real estate sector is in the spotlight since it is a leading destination for tax-evaded money. The FBR has detected almost 20,000 people with millions of rupees in real estate investments but no tax returns. The list was compiled from withholding taxes collected from transactions on real estate. The plan will soon be submitted to PM Abbasi for approval after getting further feedback in the last meeting on broadening of the tax base. Dawn. New engagement plan being finalized to further strengthen Pak-EU ties In a meeting with Pakistan’s textile exporters, EU Ambassador Jean Francois has said that Pakistan has showcased a number of good stories in respect of trade enhancement after the grant of GSP plus status incentives, however there is still a lot of potential to increase the trade volume. The Ambassador further said that EU had adopted a 5-year Engagement Plan in 2012, which had broadened and deepened the relationship between the EU and Pakistan. Now EU is in process to finalize new engagement plan to further strengthen the relations. BR. Sindh looks at reforms to climb Ease of Doing Business Index Sindh Board of Investment (SBI) Chairperson Naheed Memon has said that the provincial govt. plans to automate business registration via a portal that will link all databases and authorities, a move that comes as Pakistan looks to ease regulations and reduce time in setting up a company. The facility will be launched in a pilot form in key govt. departments and will also be placed in the Karachi Chamber of Commerce & Industry (KCCI) office. She was speaking at a briefing hosted by the SBI in collaboration with the World Bank on the ‘Ease of Doing Business’ reform program being executed in Sindh. Tribune. Sindh moves on Special Economic Zone status The Sindh government has approved SEZ status for nine new business enterprises which will be set up in Sindh’s three SEZs at Korangi, Bin Qasim and Khairpur. These units will have to get further approvals from the BOI and FBR to get tax exemptions and other incentives that come with the SEZ status. The total new investment in these businesses is expected to be more than PKR 30Bn, said Sindh Board of Investment (SBI) Chairperson Ms. Naheed Memon. Among approved nine companies, Young’s Foods, which started its operations in 1988 as a small food processing establishment in Karachi, is setting up an expansion plant for food products within KCIP with total project investment of PKR 300Mn. Dawn. Imports before Jan. 9, 2018: MoC to allow 8,000 cars sans foreign bank account details Commerce Ministry has reportedly agreed to clear around 8,000 new and used vehicles, imported before Jan. 9, 2018 without foreign bank account details of importers and other family members. FBR had discussed this issue as these vehicles were stuck at ports after the latter's instructions. Ministry, in consultation with the SBP, has prescribed duty and tax payment mechanism on the vehicles’ import under personal baggage, transfer of residence and gift scheme. BR. Imported cars: RD against essence of Automotive Policy: SBP SBP has termed the recent regulatory duty imposition on imported cars against the essence of the Automotive Development Policy 2016-21. Govt. has imposed RD on consumer durables as a result, car imports would also face higher tariffs in the range of 15% to 80%. In addition, the price differential between imported and local cars has also increased further. BR. Imported cotton: lobby creating hurdles in implementation of ECC decision A strong lobby, reportedly backed by a cabinet member, is creating hurdles in the implementation of ECC’s decision on the sales tax and customs duty withdrawal on imported cotton. The ECC approved proposal on Jan. 5, 2018 to become effective from Jan. 8, 2018. However, FBR has yet to notify the withdrawal. Commerce and Textile Minister has said that FBR should have notified it soon after the ECC decision and that if a cabinet member had some issues, he should raise the matter in the ECC meeting. BR. \ Global growth outlook to stay robust: IMF The IMF has predicted that the global economy will continue to register a healthy growth in 2018 and 2019 but progress in the region that includes Pakistan will remain subdued. IMF has forecasted 3.9% global growth in both 2018 and 2019. This is 0.2% higher than the Oct’17 forecast, and its current estimate of last year’s global growth. Dawn. Pakistan ranks 47th on WEF’s index World Economic Forum (WEF) has ranked Pakistan at 47th as against 52nd last year among 74 developing economies on an Inclusive Development Index. The index takes into account living standards, environmental sustainability and protection of future generations from further indebtedness. WEF has urged the economies to urgently move to a new model of inclusive growth and development, saying reliance on GDP as a measure of economic achievement is fueling short-termism and inequality. The 2018 index has been divided into two parts where first part covers 29 advanced economies and the second 74 emerging economies. The Nation. Half of Pakistan’s urban consumers prone to save money: McKinsey Over half of urban Pakistan’s consumers are now more prone to save money as Pakistan’s thriving consumer economy is experiencing a surge in thrifty brand loyalists. 54% of consumers in Pakistan changed their consumer buying habits to save while 29% of consumers look to buy their preferred brands at stores with lower prices. McKinsey 2018 Global Sentiment Survey, spreading over Sep’15 to Sep’17, gleaned information from 4,007 respondents in Saudi Arab, UAE, Egypt and Pakistan. The News. Private sector credit falls 26% in 6MFY18 Private sector credit sharply fell 26% to PKR 201Bn in 6MFY18 as there was a muted corporate demand for loans despite availability of low-cost funds. The SBP data showed that conventional banking branches disbursed PKR 129.8Bn to various private businesses in 6MFY2018. On the other hand, Islamic banking branches of conventional banks disbursed PKR 56.48Bn. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 22-Jan 110.45 112.05 0.05% 0.00% Crude (MA'18) 22-Jan 22-Jan 22-Jan 22-Jan PKR PKR Pts. $ Mn $/bbl 44,898 -3.62 63.71 1.63% NM** -0.05% Gold (FE'18) Gold (10g) Local 22-Jan 22-Jan $/oz PKR 1,333.6 48,857 0.58% 0.00% Silver (FE'18) Cotton(KHI)-40 kg 22-Jan 22-Jan $/oz PKR 16.97 8,038 0.47% 0.00% Kibor-6M 22-Jan % 6.21 $ Bn 19.77 0.01% WoW -1.24% Remittances 12-Jan FY18 Jul-Dec 17 $ Bn 9.74 YoY 2.51% Exports* Imports* Jul-Dec 17 Jul-Dec 17 $ Bn $ Bn 11.01 28.97 11.27% 19.11% Jul-Dec 17 Trade Balance* $ Bn -17.96 Jul-Dec 17 Current Account $ Mn -7,413 Foreign Direct Inv. $ Bn 1.38 Jul-Dec 17 Jul-Nov 17 LSM Growth* % 7.19 % 3.75 Jul-Dec 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -24.48% -59.08% -2.81% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Major Currencies 165 GBP, 22-Jan-18, 154.2 155 145 135 EUR, 22-Jan-18, 135.6 125 115 105 95 Jan-17 USD, 22-Jan-18, 110.8 USD Apr-17 GBP EUR Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "Winning companies put people first. If you focus on recruiting, cultivating and retaining good people, you’ll see better results." Scott Scherr Chart of the Day CEMENT SALES (Local vs Exports) 25 20 22.243069 19.806128 15 10 5 2.911379 2.406609 0 Local Figures are in Mn tons Exports 1HFY'17 1HFY18 Source: KCCI Research, APCMA Govt likely to allow PSO, Shell to recover old duty claims Disclaimer The govt. is likely to allow two major oil marketing companies –PSO and Shell Pakistan – to recover two-year-old claims of PKR This report has been prepared by KCCI Research & Development Cell. The information contained 482Mn on account of regulatory duty on petrol and high-speed diesel. The impact of these old claims will reflect in the herein have been compiled or arrived at based upon information obtained from sources believed to monthly revision in petroleum product prices for the consumers, who will bear this additional burden. The FBR has reportedly be reliable and in good faith. Such information has not been independently verified. supported the recovery plan, but has suggested that other OMCs should not be given the go-ahead if they come up with any icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' such claim. Tribune. understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. Contact: res@kcci.com.pk