Pakistan Daily Economy Update - 3 November

Transcription

1. Nov . 3, 2016 KCCI - eBulletin K-Electric divestment deal: Ministry still in the dark Water and Power Ministry is still in the dark on the agreement signed between the Abraaj Group and Shanghai Electric Power (SEP) of China to acquire 66.4% stake in K-Electric for $ 1.77Bn. The new buyers will have to pay the outstanding amounts to federal govt. entities including NTDC and SSGCL which is around PKR 115Bn prior to signing the new Power Purchase Agreement (PPA). The govt., has, however, assured the new buyers that supply of 650 MW from the national grid will continue until the company becomes self-sufficient in generation. BR. Economic Indicators Date / Period Unit Value USD-Interbank 2-Nov PKR 104.82 0.01% USD-Open MKT 2-Nov PKR 105.90 -0.09% KSE-100 index FIPI 2-Nov 2-Nov Pts. $ Mn 41,743 11.81 1.07% NM** Crude (DE'16) 2-Nov $/bbl 45.46 -2.19% Gold (NO'16) 2-Nov $/oz 1,298 0.67% Gold (10g) Local 2-Nov PKR 44,680 1.01% Silver (NO'16) 2-Nov $/oz 18.49 0.63% First bulk dirty cargo terminal to be operational by January-end The country's first dedicated bulk dirty cargo terminal would be commercially operational by the end of Jan.’17. Pakistan International Bulk Terminal Limited (PIBTL) has completed 95% of civil works and three cranes have already arrived at the terminal site. It is expected that 100% civil work will be completed by Dec.’16 end. The govt. plans to build 4.5km long conveyor belt to transport coal from the terminal to railway yard which would transport the coal to its destination. BR. Cotton(KHI)-40 kg 2-Nov PKR 6,468 1.43% Kibor-6M 2-Nov % 6.06% 0.00% Forex Reserves 21-Oct $ Bn 24.33 -0.53% ECC approves utilization of CPPs' capacity sans payment The Economic Coordination Committee has approved short-term utilization of available capacity of Captive Power Plants (CPPs) without any capacity payment. The capacity of 3MWs or above based on gas, furnace oil, coal, bagasse or any other fuel will be offered for purchase under the new policy. Water and Power Ministry have informed the ECC that in view of growing power demand in the country, the govt. had adopted a coherent approach for energy security. BR. Remittances Jul-Sep 16 $ Bn 4.70 -5.28% Exports* Jul-Sep 16 $ Bn 4.68 -8.98% Imports* Jul-Sep 16 $ Bn 11.75 10.70% Trade Balance* Jul-Sep 16 $ Bn -7.07 -29.21% Current Account Avg. CPI-FY17* Jul-Sep 16 Jul-Sep 16 $ Mn % -1,368 3.88 -136.27% Pakistan enjoys cheapest mobile services despite high taxation Pakistan secured top position regarding the affordability of mobile services despite being included in the group of top 50 high tax rate countries, leaving behind many highly developed economies. World Economic Forum's Global Information Technology Report (GITR) 2016 said that the advanced economies are preceded in this regard by the group of Eurasian countries, and Pakistan is the market with the lowest price points. Daily Times. Only 97 out of 10,000 acres acquired so far The construction work of 4,320MW Dasu Hydropower project is unlikely to start this year as WAPDA has acquired only 97 acres of land so far, out of total 9917 acre, due to unavailability of land record and disagreement on the land prices. The residence of the dam area are asking high prices than the govt. prescribed rates, which is creating hurdles in the land acquisition. The Nation. Offshore companies: only 133 individuals responded to FBR notices, Supreme Court told FBR has issued notices for tax collection; to as many as 336 Pakistani individuals under Section 176 of ITO 2001, allegedly holding investments in offshore entities of Panama Leaks. In this regard, 133 individuals have so far responded to the notices. The details of names, addresses in majority of cases (only 181 addresses have been published) were incomplete whereas vital information as passport, CNIC numbers, dates of birth of the purported investment holders, were not available. BR. Pakistan producing more than 1,000MW of clean energy Pakistan has become a member of the exclusive club of nations that are producing over 1,000MW of electricity through renewable energy sources as it has been consistently exploiting wind, power and biomass resources for producing clean power. According to the Alternative Energy Development Board, Pakistan would be producing 3,000MW from renewable energy sources by the beginning of 2019. So far, electricity production from these resources has reached 1,135MW. This will be increased to 1,185MW by Dec’16 when wind mills for the first clean energy project under CPEC will be installed at Gharo, Sindh. Tribune. List of Indicators Change Daily WoW YoY Sep-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX (2 AM) , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 GBP, 2-Nov-16, EUR,128.5 2-Nov-16, 116.1 135 125 115 105 95 USD, 2-Nov-16, 104.8 85 Securities exchanges: PKR 1Bn initial paid-up capital and net-worth mandatory: SECP The SECP has specified that an applicant seeking licence as a securities exchange shall have an initial paid-up capital and networth of not less than PKR 1Bn. The SECP has issued Securities Exchanges (licensing and Operations) Regulations, 2016 through a recently issued SRO 1007(1)/2016. The existing securities exchange would also have to comply with the said regulations. The obligations and requirements of the Securities Exchanges (Licensing and Operations) Regulations, 2016 has to be complied by the existing exchange. BR. 75 Nov-15 Plan developed to enhance exports to Azerbaijan to $ 500Mn The Ministry of Commerce and Ministry of Defence Production have developed a joint action plan to enhance Pakistan’s exports to Azerbaijan up to $ 500Mn in the next 5 years. They have decided to take all possible steps to expand and diversify goods and services exported to the Central Asian country in the coming years, where a significant potential exists to ship Pakistani commodities. Tribune. "Take care of all your memories. For you cannot relive them." Govt to raise PKR 1.6Tn via treasury, bonds auctions in Nov-Jan The govt. has planned to raise PKR 1.6Tn in treasury and long-term bonds' sales during Nov’16-Jan’17. An auction calendar for the said period, issued by the SBP, shows the govt. will raise PKR 1.45Tn through the sale of 3-, 6-, and 12-month market treasury bills, while PKR 150Bn will be raised by offering long-term 3-, 5-, and 10-year Pakistan Investment Bonds. The News. SECP approves rice futures trading SECP has approved the trading of super basmati paddy rice future contracts at the Pakistan Mercantile Exchange (PMEX). Benefits of using the platform include quality tested product, swift payment within 24-48 hours, price transparency and guaranteed delivery and settlement through the exchange mechanism. The SECP has incorporated the concept of agriculture promotion companies in the Draft Companies Bill 2016, which includes producer and collateral management companies. The framework will be put forth for public consultation next week. The News. Dar briefed on anti-money laundering regime Finance Minister Ishaq Dar chaired a meeting of the Financial Management Unit (FMU) on the anti-money laundering/combating financing of terrorism (AML/CFT) regime and its implementation in Pakistan. Recent developments regarding the establishment of a new integrated data center at the FMU were discussed, it will be capable of handling online reports of suspicious transactions and cash transactions. Dawn. Nov 30 last date to exchange old banknotes The SBP has reminded the general public that the old design banknotes of PKR 10, 50, 100 and 1,000 denominations is on Nov 30th, 2016 after which they will cease to be legal tender from Dec 1st, 2016 . Dawn. $ 32Tn stashed offshore, says UN report A United Nations report has estimated that as much as $ 32Tn is stashed offshore in secrecy jurisdictions, resulting in a loss of $ 3Tn every year to governments around the globe due to tax evasion and tax avoidance schemes and with most perpetrators enjoying immunity. The report has asked the International Monetary Fund, the World Bank and central banks to refuse loans to countries that harbor tax havens. No project should be subsidized if the enterprises have been found to use secrecy jurisdictions. Dawn. Feb-16 USD May-16 GBP EUR Aug-16 Nov-16 Source: KCCI Research ; Oanda.com Quote of the Day Bob Dylan Chart of the Day Pakistan's Commodity Wise Export Receipts 3063.86 3292.87 Textile Group 890.55 1014.96 Other Manufacture 635.43 762.63 Food Group 103.53 120.73 Petroleum Group 0 Value in $ Mn 1QFY17 1000 2000 3000 4000 1QFY16 Source: KCCI Research, SBP 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