Pakistan Daily Economy Update - 7 February

Transcription

1. Feb . 7, 2017 KCCI - eBulletin Fitch affirms B credit rating for Pakistan Fitch Ratings has affirmed Pakistan's Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) at 'B' with stable outlook as the country's foreign reserves have strengthened, fiscal deficit reduced and significant progress has been made on structural reforms. The country's economic outlook has brightened and looks promising in the current FY17. However, it noted that Pakistan's public debt/GDP ratio of 64.8% at end-FY16 was higher than the 'B' median of 56.7%, but Fitch expects the ratio to gradually fall in the medium-term if the country can sustain its progress with fiscal consolidation. The Nation. CPEC pie eyed: Bahrain to push GCC for strategic dialogue: FM Showing keen interest in CEPC, Bahrain has pledged to push the Gulf Co-operation Council to initiate strategic dialogue with Pakistan. Bahrain Foreign Minister while co-chairing the first Pak-Bahrain Joint Ministerial Commission with Foreign Affairs Adviser Sartaj Aziz, said that Bahraini delegations will visit Pakistan next month to hold talks and explore opportunities along the CPEC and special economic zones. He further said that FTA between Pakistan and the GCC is in the pipeline. BR. Business schools form consortium to analyse CPEC A consortium of top Pakistani business schools has been formed to engage academic sector for applied research on various industrial and business opportunities related to CPEC. The decision was taken in a meeting chaired by Planning Minister Ahsan Iqbal where it was proposed that Chinese language should be included as a compulsory subject in all undergraduate programs in Pakistan. It was also decided that monthly meeting of the consortium should be held at each respective university so as to get better understanding of Chinese economies, joint venture of Chinese industries, alignment of universities program according to CPEC projects requirements and recommendation for policies on SEZs to attract Chinese investors. The Nation. Pakistan, Bahrain agree on cooperation in defense, energy, other sectors Pakistan and Bahrain have agreed on cooperation in trade, energy, investment, defence and other fields and also signed MoUs on cooperation in fields of agriculture and diplomatic services. In a meeting with Prime Minister Nawaz Sharif, Foreign Minister of Bahrain Shaikh Khalid has said that the relations between both countries have been upgraded due to joint ministerial commission in which both countries will have comprehensive discussions to expand diplomatic, economic, trade, strategic and cultural ties. The News. National Assembly passes Companies Bill National Assembly has unanimously passed 'The Companies Bill, 2016,' besides two other bills, to provide relief and incentives to corporate sectors, especially small and medium-sized companies, and curb fraud, money laundering and terror financing. The other two bills are 'The Criminal Laws (amendment) Bill, 2016' and The Pakistan Air Force (amendment) Bill, 2016. BR. China Mobile to invest $ 200Mn in Pakistan In its annual business conference, China Mobile Pakistan (Zong) has announced another $ 200Mn investment in Pakistan, aiming to expand its network by adding 3G/4G sites which are poised to reach the highest mark of 10,500 by the end of 2017. With additional investment and network expansion, Zong intends to expand its 4G coverage to not only urban but also rural areas of the country. The company has already invested over $ 2Bn in Pakistan in the recent years. Zong’s 4G subscribers have reached a record 2Mn, while it has expanded its 4G coverage to over 300 cities across Pakistan. The Nation. FBR may face PKR 300Bn shortfall in revenue collection FBR is now facing the prospects of an embarrassing PKR 300Bn shortfall in collection by the close of the year. A shortfall of PKR 150Bn has already been recorded in the given period with a mere PKR 1680Bn collection which is only 8% more than PKR 1581Bn collected in the corresponding period of 2016. In Jan’17, PKR 226Bn have been collected with a growth of 8% last. The amount was PKR 209Bn in Jan’16. The News. Russian minister due to hold talks with Pak officials on gas pipeline project Russian Deputy Minister for Energy is scheduled to hold a meeting with Pakistani officials on 9TH Feb’17 to review progress on the North-South gas pipeline project as part of the fast-track preparations to pave way for the visit of Russian President Vladimir Putin to Pakistan in May’17 for inauguration of this multi-billion project. Pakistan intends to receive Russian President Vladimir Putin for inauguration of 1,100 km long North-South gas pipeline project in which Russia plans to invest $ 2Bn to connect Karachi's liquefied natural gas (LNG) terminals with those in Lahore. The news. President opens 118MW power plant at Bin Qasim President Mamnoon Hussain has inaugurated the Fauji Fertilizer Power Plant with a generation capacity of 118MW. He said the coal powered plant at Bin Qasim is an important addition to the public-private initiative against energy deficit in the country. He said Pakistan is steadily improving its power generation capacities and the recent addition through Fauji Foundation plant will be equally beneficial for Karachi. The News. Chinese firm gets Nandipur plant’s operation contract The government has announced that it had entered into a 10-year contract with a Chinese firm for operation and maintenance of the controversial Nandipur power project at a price shrouded in mystery. The contract price was not disclosed. Dawn. Only 8 to 9% Sui gas reserves left, Senate body told A parliamentary committee has been informed that Sui gas field is depleting fast and only 8% to 9% of the reserves are left in the country. The committee was further informed that around PKR 20Mn natural gas is being stolen daily in Karak, district of KPK. Furthermore, factory owners, who came from outside, are also getting illegal connections. The Nation. Mayor urges businessmen to join hands for Karachi’s uplift City Mayor Waseem Akhtar has urged the business community to join his fight for Karachi’s rights which could be won only if all the segments of society joined hands. He asked the business community to raise their voice not for the mayor, but for their own city, which, as a result of ‘total negligence, has been devastated and its citizens are facing hardships in leading their routine life. Dawn. Cement sale up, export down in January Cement sale marginally increased 0.78% to 2.72Mn tons in Jan’17 as compared to the same month a year earlier, while exports decreased 2.71% to 0.37Mn tons. Total cement dispatches (sales plus exports) stood at 3.08Mn tons in Jan’17, up 0.34% YoY. The News. UK Company to build cement plant in KP UK Company, Asian Precious Minerals (APML), will build a new cement plant in Pakistan with an investment of US $400Mn. The plant will be built in Khyber-Pakhtunkhwa. Chief Minister Khattak has said that this British investment will help create local jobs and stimulate the local economy. Tribune. Corporate results: PSO’s profit soars 49% in 1HFY17 Pakistan State Oil’s (PSO) profit has soared 49% to PKR 10.01Bn (EPS: PKR 36.86) in 1HFY17 on the back of increased sales volume and value. The company booked a profit at PKR 6.72Bn (EPS: PKR 24.76) in 1HFY16. Tribune. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (FE'17) Gold (JA'16) Gold (10g) Local Silver (JA'17) Cotton(KHI)-40 kg Kibor-6M 6-Feb 6-Feb 6-Feb 6-Feb 6-Feb 6-Feb 6-Feb 6-Feb 6-Feb 6-Feb PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.81 107.70 49,630 -1.35 53.10 1,236 43,028 17.75 7,218 6.14% Forex Reserves 27-Jan $ Bn 22.44 0.02% -0.09% 0.15% NM** 0.57% 2.02% 0.00% 1.63% 0.00% 0.01% WoW -3.49% YoY -2.27% -3.82% 10.10% -22.20% -92.23% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Dec 16 Remittances $ Bn 9.46 Jul-Dec 16 Exports* $ Bn 9.91 Jul-Dec 16 Imports* $ Bn 24.40 Jul-Dec 16 Trade Balance* $ Bn -14.49 Jul-Dec 16 Current Account $ Mn -3,585 % 3.85 Avg. CPI-FY17* Jul-Jan 17 Jan-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Feb-16 GBP, 6-Feb-17, 130.3 EUR, 6-Feb-17, 112.4 USD, 6-Feb-17, 104.5 May-16 USD GBP Aug-16 Nov-16 Feb-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day “There is always space for improvement, no matter how long you've been in the business.” Oscar De La Hoya Chart of the Day PAKISTAN'S DOMESTIC DEBT & LIABILITIES (1HFY12-1HFY17) 1HFY17 348.86 1HFY16 310.32 1HFY15 259.08 1HFY14 178.02 1HFY13 175.09 1HFY12 184.4 0 Domestic Debt (PKR Bn) 14,193 12,880 11,509 10,227 8,328 6,866 5,000 10,000 Domestic Liabilities (PKR Bn) 15,000 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