Pakistan Daily Economy Update - 27 February

Transcription

1. Feb . 27, 2018 KCCI - eBulletin Govt. to ”devise strategy” to stay off grey list: Afzal Pakistan will develop a strategy to avoid being put on a global terror financing watch list, after China and Saudi Arabia deserted Islamabad over the issue at a recent meeting in Paris. Members of the Financial Action Task Force (FATF), have given Pakistan three months to make enough changes to avoid being listed on the list of nations which are not doing enough to combat terror financing. Pakistan govt. will start discussion after 1st Mar’18 to see what it can do and what strategy it can devise, finance minister Rana Afzal Khan said. BR. List of Indicators Crude (AP'18) Gold (MA'18) Gold (10g) Local Silver (MA'18) Cotton(KHI)-40 kg Kibor-6M Pakistan yet to decide participation in WTO moot in India India has invited Pakistan to attend an important ministerial conference scheduled in Mar’18 in New Delhi to iron out differences on fisheries subsidies and duties on ecommerce, but Pakistan is yet to decide the participation given the frequent border skirmishes and the former’s attempt to fail the Islamabad-hosted regional moot two years back. The News. Forex Reserves Multinational companies: Pakistan aligns rules with OECD to curb tax evasion Pakistan has aligned its legal framework with the Organization for Economic Cooperation and Development (OECD) in order to curb tax avoidance by multinational companies (MNCs) through shifting profits to tax-havens and claiming higher expenditures. The FBR has recently made new amendments to the Income Tax Rules 2002, making them compatible with requirements of the OECD. Tribune. Revised cotton production target missed Pakistan has missed the revised its cotton production target by around 8% as the production has been recorded at 11.5Mn bales against the revised target of 12.6Mn bales for FY18. However, this year’s production has surpassed the cotton production of 10.6 Mn bales recorded in FY17.Pakistan also missed cotton production target by around 30% in FY16 and by 25% in FY17. BR. Sugarcane growers: CCI decides to resolve payment issue The Council of Common Interests (CCI) has decided to resolve the issue of payment to the sugarcane growers at the announced rate. Showing concern over non-payment to the growers by the provincial authorities and sugar mill owners, the PM directed the Ministry of National Food Security to work with provinces for early resolution of the payment to the growers. The meeting also discussed allocation of additional water supply for Karachi City (K4 Project) and decided to take up the matter following a detailed presentation on the availability and distribution of water under Indus River System Authority (IRSA) accord. BR. Auto policy drew $800m investments: Ahsan The Auto Development Policy (ADP) 2016-21 has attracted significant investments of over $800 Mn, said Minister for Planning Ahsan Iqbal. He was addressing the unveiling ceremony of locally-assembled Daehan Shehzore pickup. Yousuf Dewan Companies (DFML) has entered into a joint venture with the Kolao Group of South Korea, resuming production at its automobile assembly plant in Sujawal, Sindh. DFML received Brownfield status in Jan’18 resulting in the revival of DFML automobile assembly plant which was not operational since 2010. Dawn. Tarbela hydropower project starts power generation Pakistan has achieved another landmark towards energy security of the country, as Tarbela 4th Extension hydropower project has started electricity generation and has started providing electricity to the national grid. The PM will formally inaugurate the project in the 2nd week of Mar’18. Under the 1,410MW project, three electric power generating units – each of them having capacity of 470MW – have been installed at Tunnel 4 of Tarbela Dam. The News. Special CPEC body thinking out loud The Special Committee on CPEC has proposed to explore possibility of linking CPEC corridors of Balochistan with Iran and Afghanistan to enhance trade and bring development and prosperity in the area. The committee, during a meeting, discussed western route of the Corridor and dilated on the visit of the committee to Gwadar and its reports. BR. Trial run of Orange Line Metro Train held A trial run of the Lahore Orange Line Metro Train (OLMT) was conducted wherein the train was run near its depot. 4 more train-sets of the OLMT have reached Lahore, taking the total number of train-sets to 15 while the a 12km long elevated portion of the track, from Dera Gujran to Lakshmi Chowk, would most likely be completed within the next 10 days. The News. PM to inaugurate Islamabad’s new airport in April PM Abbasi will be inaugurating the New Islamabad International Airport, the biggest project ever undertaken in the history of Pakistan Civil Aviation Authority, between 15th and 20th Apr’18. The News. Date / Period Unit Value Change Daily 26-Feb 26-Feb 26-Feb 23-Feb 26-Feb 26-Feb 26-Feb 26-Feb 26-Feb 26-Feb PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 110.40 112.15 42,911 0.95 63.99 1,334.8 48,942 16.62 7,395 6.45 -0.16% 0.00% -0.82% NM** 0.68% 0.42% 1.06% 0.71% 0.00% 0.00% WoW -0.74% YoY 3.55% 11.11% 18.92% -24.18% -48.11% -2.94% USD-Interbank USD-Open MKT KSE-100 index FIPI Sindh, Khyber Pakhtunkhwa game for power production, transmission The federal govt. has offered the provinces to take over full responsibility of electricity and gas production, transmission and generation. The offer was made by PM Abbasi while presiding over a meeting of the Council of Common Interests (CCI). CMs of Sindh and KP said that they are ready to take over the full chain of generation, transmission and distribution of power and gas supply at the earliest. However, Punjab has reservations over the proposal, particularly on account of gas due to its scarcity and large consumer base. Dawn. July-January period: repatriation of profit and dividend up 26% Repatriation of profit and dividend by foreign investors posted a hefty growth of 26% during 7MFY18. Improved financial results of the corporate sector have scaled up the repatriation of profit and dividend. The SBP revealed that foreign investors cumulatively repatriated $ 1.34Bn against $ 1.07Bn in 7MFY17. Major outflow of $ 321Mn was witnessed on account of FDI. However, repatriation on account of foreign portfolio investment (FPI) witnessed a declining trend, falling by 26%. BR. \ Economic Indicators $ Bn 18.83 16-Feb FY18 Remittances Jul-Jan 18 $ Bn 11.38 Exports* Jul-Jan 18 $ Bn 12.97 Imports* Jul-Jan 18 $ Bn 34.51 Trade Balance* Jul-Jan 18 $ Bn -21.55 Current Account Jul-Jan 18 $ Mn -9,156 Foreign Direct Inv. $ Bn 1.49 Jul-Jan 18 LSM Growth* Jul-Dec 17 % 5.55 % 3.85 Avg. CPI Jul-Jan 18 Discount Rate % 6.00 Jan-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 165 GBP, 26-Feb-18, 154.8 155 145 135 EUR, 26-Feb-18, 136.3 125 115 105 95 Feb-17 USD, 26-Feb-18, 110.6 USD May-17 GBP EUR Aug-17 Nov-17 Source: KCCI Research ; Oanda.com Quote of the Day "One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather Chart of the Day KSE-100 Index 53,000 51,000 49,000 47,000 45,000 43,000 41,000 39,000 37,000 Source: KCCI Research, SCS Trade Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified. 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 accuracy. Contact: res@kcci.com.pk