Pakistan Daily Economy Update - 30 November

Transcription

1. Nov . 30, 2017 KCCI - eBulletin Country now has surplus electricity: PM While addressing the inauguration ceremony of the first unit of 1,320MW coal-fired power project at Port Qasim, PM Shahid Khaqan Abbasi said that Pakistan has not only met its energy needs but also has surplus power. The $ 2Bn coalfired power project, initiated under CPEC and jointly developed by Power China Resources Ltd. and Al Mirqab Capital of Qatar, will produce the cheapest power that will be environment-friendly. The first unit has been completed in the time of 30 months ahead of the schedule and will produce 660MW of electricity. The second unit of 660MW would also be completed ahead of the schedule and will be inaugurated in Feb.’18. The Nation. Power distribution system a $ 4Bn market: Awais Leghari Power Division Minister Sardar Awais Ahmed Khan Leghari has invited Japanese companies and investors to invest and explore Pakistan’s $ 4Bn market in the power distribution system, for service delivery to consumers including the modern technological solutions. The minister extended the invitation to the Japanese investors in a meeting with Ambassador of Japan to Pakistan Takshir Kurai. The minister, while highlighting the importance of service delivery within the electricity distribution network, said that since the government had been able to bridge the demand and supply gap with its induction of multiple fuel power generation projects, the emphasis was fast shifting towards providing the electricity to end consumers with service delivery of international standards. Daily Times. Pakistan in talks with China, Iran for cross-listing of commodities Pakistan Mercantile Exchange (PMEX) has initiated dialogue with China and Iran for cross-listing of commodities in a bid to expand scope of the exchange, a top official disclosed. Under the arrangement, Chinese and Iranian commodities will be bought and sold through PMEX while Pakistan’s commodities could be traded at Chinese and Iranian exchanges. The new global trading platform is expected to start running in the next one year. Initially, Pakistan’s rice and cotton may be listed in China and Iran and later other agricultural products will be added. Tribune. Government allows cotton import from India, but sets tougher rules Government has allowed cotton imports from India to meet the growing appetite of key textile industry, though it slapped tough set of rules for consignments from the neighboring country. Pakistan is likely to start issuing permit for import of cotton from India through land route in a next few days under new tough conditions that may not fully ease already imposed restrictions on trade. The News. Govt. paid PKR 445.4Bn in interest on loans in 1QFY18 The govt. has paid PKR 445.4Bn on interest payment during 1QFY18 due to the massive borrowing made by the country in last few years. Interest payment exceeded the expenditures on country’s defense and development. The federal govt. has paid PKR 417.6Bn as servicing on domestic debt and PKR 27.8Bn on foreign loans during 1QFY18. Pakistan’s total debt and liabilities stood at PKR 25.1Tn by the end of Jun.’17, which were equal to 78.1% of the GDP. Pakistan’s budget deficit had reached PKR 440.8Bn (1.2% of the GDP) during 1QFY18. The country’s expenditures have been recorded at PKR 1.47Tn as compared to revenues of PKR 1.03Tn, taking the deficit to PKR 440.8Bn. The Nation. FBR told to dispose of appeals timely The Lahore High Court has directed the chairman of FBR to strictly ensure timely disposal of appeals against recovery of income and sales tax notices. The court was hearing of a set of petitions moved by different industries challenging notices issued to them by the revenue body for the recovery of taxes despite exemption under the law. FBR chairman said rules are being made in light of the court’s directions but there are some difficulties in the process, which would be overcome soon. Dawn. Ogra recommends up to 28.9% hike in petroleum prices \ Ogra has recommended the govt. to increase price of petrol by PKR 1.48/liter for Dec.’17 and the ex-refinery price of High Speed Diesel (HSD) by PKR 1.2/liter. According to a working paper moved to the Energy and Finance Ministry, OGRA has recommended an increase of up to 28.9% in the prices of different petroleum products. The Ogra also proposed an increase of PKR 15.35/liter in price of superior kerosene oil and PKR 13.15/liter increase in Light Diesel Oil (LDO) rate. The Nation. NEPRA grants licenses to 5 IPPs, including 3 wind power projects NEPRA has granted power generation licenses to five IPPs which will add 195MW of electricity to the national grid. The IPPs that were granted licenses are: NORINCO International Thatta Power (Pvt) Limited (NITPPL), Master Green Energy Limited (MGEL), Lakeside Energy (Private) Limited (LEPL), Ghotki Power (Private) Limited (GPPL), and Mehar Hydropower (Private) Limited (MHPPL).The three of the five IPPs are wind power-based and located in Sindh while one is bagasse-based and one hydel power-based. Daily Times. Govt. to resume privatisation of PIA, PSM The govt. has reiterated to restart privatisation of PIA and Pakistan Steel Mills (PSM), as accumulated debt and losses of these two entities has swelled to the unprecedented level despite extending bailout packages. Privatisation Minister Daniyal Aziz has said that govt. would resume the privatisation of loss-making Public Sector Entities (PSEs). He further said that accumulated debt and losses of Pakistan Steel Mills have swelled to PKR 276Bn by the end of Jun.’17 in spite of the bailout packages amounting to PKR 76Bn. The govt. could save PKR 600Bn annually by privatizing the lossmaking State Owned Entities (SOEs). The Nation. SECP opens public consultation on three Shariah standards SECP has opened public consultation on three Shariah Standards Shariah Standards of Accounting and Auditing Organisation for different types of Islamic financial institutions. The three namely: standard No:17 for investment sukuk, No:18 on possession (qabd) and Shariah Standard No:23 – agency and the act of an un-commissioned agent (fodooli). Daily Times. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 29-Nov 29-Nov 29-Nov 29-Nov 29-Nov 29-Nov 29-Nov 29-Nov 29-Nov 29-Nov PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.48 107.50 39,673 -12.59 57.38 1,285.1 46,714 16.52 7,073 6.19% -0.02% 0.00% -0.90% NM** -0.88% -0.70% 0.00% -1.91% 0.00% -0.01% WoW 0.08% YoY 2.27% 10.04% 22.55% -31.24% -121.91% 74.44% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (JA'18) Gold (JA'18) Gold (10g) Local Silver (JA'18) Cotton(KHI)-40 kg Kibor-6M Forex Reserves $ Bn 19.71 17-Nov FY18 Jul-Oct 17 Remittances $ Bn 6.44 Jul-Oct 17 Exports* $ Bn 7.06 Jul-Oct 17 Imports* $ Bn 19.19 Jul-Oct 17 Trade Balance* $ Bn -12.13 Jul-Oct 17 Current Account $ Mn -5,013 Foreign Direct Inv. $ Bn 0.94 Jul-Oct 17 Jul-Sep 17 LSM Growth* % 8.36 % 3.50 Jul-Oct 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, 29-Nov-17, 141.1 145 135 125 EUR, 29-Nov-17, 124.8 115 105 95 Nov-16 USD Feb-17 GBP EUR May-17 Aug-17 USD, 29-Nov-17, 105.3 Source: KCCI Research ; Oanda.com Quote of the Day "If you don't know where you are going, every road will get you nowhere." Henry Kissinger Chart of the Day Top Cotton Producing Countries 2017 India 5.876 China 4.953 US 3.738 Pakistan 1.676 Brazil 1.524 Australia 0.914 Uzbekistan 0.811 Turkey 0.697 Turkmenistan 0.288 Burkina 0.283 0 1 2 3 4 5 6 7 Source: KCCI Research, Statista Mn metric Tons 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