Pakistan Daily Economy Update - 8 February

Transcription

1. February 08 , 2022 KCCI - eBulletin ‘China commits $ 10-$ 15Bn investments’ Pakistan has received commitments from China for getting investments of $ 10-15Bn for various sectors, including for establishing industrial units at 2,200 acres of Gwadar Free Zone, exploring the possibility to establish oil refinery at Pasni and relocation of industries into seven important sectors, including textile, footwear and pharmaceuticals into upcoming the Special Economic Zones. The News. Services exports up 20% Export of services posted a growth of over 20.24% in 1HFY22 to $ 3.41Bn from $ 2.84Bn in 1HFY21. On a monthly basis, exports of services grew by 7.51% to $ 674.05Mn in Dec’21 against $ 626.99Mn in Nov’21. Dawn. Crude (AP'19) 7-Feb $/bbl 91.32 -0.58% Gold (MA'19) 7-Feb $/oz 1,821.8 0.59% Gold (10g) Local 7-Feb PKR 107,170 -1.57% Silver (MA'19) 7-Feb $/oz 23.12 2.33% Cotton(KHI)-40 kg 7-Feb PKR 21,327 1.02% Kibor-6M 7-Feb % 10.74 0.01% Forex Reserves 28-Jan $ Bn 22.08 WoW -1.77% Remittances Jul-Dec 21 $ Bn 15.81 11.29% Exports* Jul-Jan 22 $ Bn 17.67 23.96% Imports* Jul-Jan 22 $ Bn 46.47 58.84% Trade Balance* Jul-Jan 22 $ Bn -28.80 -91.97% Current Account Foreign Direct Inv. Jul-Dec 21 Jul-Dec 21 $ Bn $ Bn -9.09 1.06 -829.11% 20.11% YoY Jul-Nov 21 LSM Growth* % 3.26 % 10.26 Jul-Jan 22 Avg. CPI Discount Rate % 9.75 Jan-22 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 255 245 235 225 215 205 195 185 175 165 155 145 Feb-21 GBP, 7-Feb-22, 238.8 EUR, 7-Feb-22, 200.0 USD, 7-Feb-22, 176.0 USD May-21 GBP Aug-21 EUR Nov-21 Feb-22 Source: KCCI Research Quote of the Day "People of mediocre ability sometimes achieve outstanding success because they don't know when to quit. Most men succeed because they are determined to." George Allen Monthly Urban Food Inflation 5% 2.7% 3% 2% 3.9% 3.6% 4% 1.3% 1% 1.5% 1.1% 1.7% 1.5% 0.5% 0% -0.8% -1% -2% -1.9% -2.1% -2.3% -3% Jan-22 Textile, Apparel Policy: MoC prepares revised draft Ministry of Commerce has prepared a revised draft of Textile and Apparel Policy 2020-25 that would be considered by the Economic Coordination Committee (ECC) tomorrow (9th Feb’22). BR. -0.15% NM** Dec-21 Roshan Digital Account inflows jump 38% in January Inflows under Roshan Digital Accounts (RDAs) — a banking facility reserved for non-resident Pakistanis — amounted to $ 222Mn in January, down 9% from the preceding month. From Sep’20 when the RDAs were introduced to end-Jan’22, total funds received through these accounts amounted to $ 3.38Bn. Dawn. 45,841 0.92 Nov-21 MSCI likely to add Pakistan to FM 100 index The Morgan Stanley Capital International (MSCI) will announce the results of its consultation with global investors for potentially making Pakistan a part of its Frontier Market (FM) 100 index and FM 15% Country Capped index, developing an outlook for foreign investment flows into the country. The result of the consultation along with MSCI Quarterly Index Review is scheduled to be announced tomorrow (9th Feb’22). The decision would come into effect from May’22. Tribune. Pts. $ Mn Oct-21 Demonetized old-design currency notes: SBP extends exchangeability deadline Following the federal govt. directives, SBP has announced extension in the last date of exchange of old design banknotes by one year. Demonetization of old design banknotes of PKR. 10, 50, 100 and 1,000, was initiated in Jun’15 with cessation of legal tender status of these banknotes with effect from 1st Dec’16. Thereafter, these old design banknotes were exchangeable only from the offices of the SBP Banking Services Corporation offices up till 31st Dec’21. However, now these can be exchanged up till 31st Dec’22. BR. 7-Feb 7-Feb Sep-21 \ 72% distraught over inability to meet expenses: survey The Pulse Consultants Survey conducted a survey of 2,000 people from January 13th – 21st Jan’22 to determine the impact of inflation on different segments of the population and measures taken to cope with the trend. There is a substantial increase by as much as 72% from 59% just months ago, in the number of people wary of the rising cost of living, with the middle class taking the worst battering. The News. KSE-100 index FIPI Aug-21 Cotton body established to ensure better yields Principally approving the formation of the Pakistan Cotton Authority (PCA), PM Imran Khan has called for effective legislation to protect farmers’ rights. PCA’s formation was principally approved to ensure the provision of quality seed, monitoring and enhancing the yield. Dawn. -0.01% -0.14% Jul-21 Pakistan, Japan to execute water supply scheme Ambassador of Japan Mitsuhiro Wada has said that Japan is the second largest donor to Pakistan and since 1954 Tokyo has provided ¥ 1.35Tn for Pakistan through concessionary loans, grants and technical assistance for vocational training, energy sector, road and transport. Japan is now providing grant-in-aid for the improvement of water and sewerage system in Multan. Tribune. 174.47 175.95 Jun-21 Petroleum products’ sale up by 19% in January The sale of petroleum products in Pakistan recorded an increase of 19% in Jan’22 on year on year (YoY) basis as compared to same month of last year. On average, the sale witnessed an increase of 15% during 7MFY22 as sale rose from 11.27Mn tons in 7MFY21 to 12.9Mn tons in 7MFY22. Nation. Change Daily PKR PKR Apr-21 IMF brings climate change under spotlight A little noticed sub-section of the recent IMF country report is about the effects of climate change on Pakistan. The country is among the top ten worst impacted countries (in terms of damage) over the last two decades. However, Pakistan’ contribution to the global greenhouse gas (GHG) emissions is mere 1%. Since 2000, 120 recorded events had an estimated damage of $ 22Bn in material and killed 11,000 people in Pakistan. These events have affected 55Mn people in the country. The sea level is rising and that may bring Karachi in a tight spot. BR. Value 7-Feb May-21 Delay could hamper external financing and investment: IMF IMF has warned Pakistan that the delays on structural reforms, especially related to governance and the Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) action plan with the Financial Action Task Force (FATF), could hamper external financing and investment and thus limit economic recovery. The IMF has stated that enhancing the effectiveness of the AML/CFT framework remains an urgent priority to progress in completing Pakistan’s 2018 and 2021 action plans with the FATF. BR. Unit 7-Feb Mar-21 Anti-dumping duties slapped on flat steel The National Tariff Commission (NTC) has imposed anti-dumping duties ranging from 6.2% to 17.3% on flat steel products (such as sheets and plates) for five years. The products — including iron or non-alloy steel, rolled coils or sheets — were being imported and dumped from Taipei, the European Union, South Korea and Vietnam. Dawn. Date / Period USD-Interbank USD-Open MKT Feb-21 Chinese investors exempted from project approvals In a major shift from the investment regime, Pakistan has decided to exempt Chinese investors from about 37 approvals for investment projects, besides completing prior actions like payments of dues to power producers and creating a revolving fund for future interest payments to the existing investors to perk up investments in phase-II of the multi-billion-dollar CPEC. This was the crux of the meeting between PM Imran Khan with Chinese political and business leadership. It was highlighted that the two most important and outstanding issues concerning the Chinese side were outstanding payments to Independent Power Producers (IPPS) and revolving fund for automatic payments to financial institutions on account of debt and interest payment. Dawn. List of Indicators Jan-21 KCCI says it’s concerned at ‘rise’ in street crimes President KCCI Muhammad Idrees, while expressing deep concerns over rising streets crimes in the megacity, stated that the worsening situation poses a big question mark on the performance of Law Enforcing Agencies (LEAs). He said that the LEAs have failed to control the street crime, adding nowadays the agonies of public have intensified further as a new trend has emerged in the city where people/ commuters were being fearlessly intercepted and beaten by the armed gunmen/ security guards either escorting or guarding vehicles bearing govt. number plates, fancy number plates or no number plates. He stressed that in order to effectively curb the rising street crimes and provide a safe and secure environment to Karachiites, the LEAs have to revisit their strategies. Police and Rangers must intensify patrolling and snap checking at some of the most sensitive localities of Karachi from where the street crimes are widely being reported. He stressed that the law & order situation of this city has to be given special attention and an effective strategy has to be devised on war footings. BR. Source: KCCI Research; PBS Note The United States Agency for International Development (USAID) Small and Medium Enterprise Activity (SMEA) wants to assess the extent to which the coronavirus pandemic has affected business activity. A survey has been designed in this regard and you are requested to participate using the link: http://bit.ly/3rO4Wwu