Pakistan Daily Economy Update - 1 June

Transcription

1. June 01 , 2022 KCCI - eBulletin KCCI team, Senate chief discuss economy, federal budget A high-level delegation of KCCI led by BMG Chairman Zubair Motiwala held a meeting with Chairman Senate of Pakistan Sadiq Sanjrani in Islamabad to discuss the overall economic situation of the country and also KCCI’s proposals for the FY23 Federal Budget. KCCI delegation also comprised of BMG vice Chairmen Haroon Farooki, Anjum Nisar, Jawed Bilwani, BMG general secretary AQ Khalil and KCCI President Muhammad Idrees. They particularly highlighted that the industrial community of Karachi was suffering badly due to poor infrastructure along with severe gas, water and electricity shortages, which were having a negative impact on the exports and the ongoing crises may push the country to the point of no return. Chairman Senate Sadiq Sanjrani, while appreciating the efforts being made by KCCI for creating a pro-business and pro-economy environment, assured that the govt. will extend full support and cooperation to the business community of Karachi. Chairman BMG Zubair Motiwala demanded that SSGC must apologize to exporters for using shameful remarks. He demanded that instead of prioritizing gas to domestic sector, uninterrupted gas supply at adequate pressure to industries must be given top priority. Senator Abdul Qadir, in his remarks, stated that the local industries have to be incentivized. Minister of State for Petroleum Musadik Malik assured to resolve the gas crises being faced by the industries of Karachi on top priority. Later, KCCI delegation, during a meeting with Secretary Commerce Muhammad Sualeh Farooqui, expressed deep concerns over the dilapidated state of Karachi Expo Centre. In addition to discussing the situation emerging after the issuance of SRO 598, they also requested to provide funds from Export Development Fund (EDF) for setting up NUTECH University in Karachi. BR. Import ban doesn’t apply to industrial inputs: ministry The Ministry of Commerce has clarified that the ban on the imported items under SRO598(1) 2022 shall not apply to raw material, intermediate goods and industrial equipment/machinery required by manufacturing/industrial concerns and foreign grant-in-aid projects. In this connection, the Commerce Ministry has issued an office memorandum regarding SRO598(1) 2022 dated 19th May’22. The clarification has been issued in view of the concerns raised by different trade organizations and domestic industry regarding import of raw materials, intermediate goods and industrial equipment falling under different PCT codes of the list of the said SRO. BR. POL products’ prices remain unchanged Finance Division, with a view to provide maximum relief to the consumers, has directed that the current prices of petroleum products as notified on 27th May’22 shall remain unchanged, despite revenue losses due to rising petroleum prices globally. BR. Relief to masses against POL price hike: Govt to utilize allocation for Rashan Riayat subsidy The govt. has decided to utilize the allocation of Rashan Riayat targeted commodity subsidy for providing relief under the PM’s Relief Package to low-income households against an increase in petroleum prices. ECC meeting on 28th May’22 allowed a transfer of PKR 24Bn from the Benazir Income Support Program (BISP). BR. FBR collects PKR 5.4Tn in taxes FBR collected PKR 5.35Tn in taxes in 11MFY22, leaving it with the task of collecting another PKR 750Bn in Jun’22 to achieve the revised target that had been set after imposing the mini-budget. FBR collection was 28.4% higher over the collection made during 11MFY21. Tribune. FY23: FBR considering SECP’s proposals FBR is seriously considering the budget proposals of SECP to grant tax credit to private funds, restoration of tax credit on enlistment, nonapplicability of capital gains tax (CGT) on foreigners, align rates of CGT on disposal of securities with other regional exchanges and documentation of real estate sector through the real estate investment trusts (REITs). BR. FY23: Minister says $ 5Bn IT export target set Federal Minister for IT and Telecommunication Syed Aminul Haque has said that the govt. will target $ 5Bn in exports of the information technology (IT) sector for FY23, which would be subject to the resolution of outstanding issues with FBR and SBP. BR. Minister calls for granting rewards to IT firms Federal Minister for IT Syed Aminul Haque has given directives for expediting the process of giving cash rewards to the information technology companies and setting a timeline in this regard. The minister gave the directives while chairing board of directors meeting of the Pakistan Software Export Board (PSEB). Tribune. STZA building a world-class technology ecosystem: chairman Special Technology Zones Authority (STZA) is building a world-class technology ecosystem in Pakistan to enable the small, medium and large scale tech organizations to become part of the global innovation and connected marketplace. This was stated by Chairman STZA Amer Hashmi while addressing the Freelance Fest 2022. BR. \ List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 31-May 31-May PKR PKR 198.46 198.65 -0.30% -0.30% KSE-100 index FIPI 31-May 31-May Pts. $ Mn 43,078 2.52 0.09% NM** Crude Oil 31-May $/bbl 114.67 -2.50% Gold 31-May $/oz 1,848.4 -0.38% Gold (10g) Local 31-May PKR 121,740 0.00% Silver 31-May $/oz 21.69 -1.09% Cotton(KHI)-40 kg 31-May PKR 24,113 0.00% Kibor-6M 31-May % 14.70 -0.01% Forex Reserves 20-May $ Bn 16.15 WoW -0.07% Remittances Jul-Apr 22 $ Bn 26.08 7.63% Exports* Jul-Apr 22 $ Bn 26.23 25.46% Imports* Jul-Apr 22 $ Bn 65.49 46.41% Trade Balance* Jul-Apr 22 $ Bn -39.26 -64.79% Current Account Foreign Direct Inv. Jul-Apr 22 Jul-Apr 22 $ Bn $ Bn -13.78 1.46 -2437.6% -6.27% YoY Jul-Mar 22 LSM Growth* % 9.40 % 11.04 Jul-Apr 22 Avg. CPI Discount Rate % 13.75 May-22 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 265 255 245 235 225 215 205 195 185 175 165 155 145 May-21 GBP, 31-May-22, 248.3 EUR, 31-May-22, 211.3 USD, 31-May-22, 198.7 Aug-21 GBP USD Nov-21 EUR Feb-22 Quote of the Day "It always seems impossible until it's done." 202% jump in private sector borrowing The private sector borrowing from banks has gone up by over 200% from Jul’22 to 20th May’22, reflecting that the higher economic activities remained intact despite the change of govt. According to data released by SBP, the private sector borrowed PKR 1,414Bn from Jul’21 to 20th May’22, up from PKR 468Bn in the same period last year. Dawn. Open to buy Russian oil if no sanctions incurred: Miftah A day after European Union leaders agreed an embargo on Russian crude oil imports, Finance Minister Miftah Ismail has said that Pakistan would be open to buy Russian oil at cheaper rates if the opportunity arises, provided that no sanctions are imposed because of the deal. Tribune. PM sees $ 5Bn trade potential with Turkey On the first day of his official visit to Turkey, PM Shehbaz Sharif noted that the closeness in Pakistan and Turkey’s relationship was not reflected in trade relations between the two countries, and expressed the desire that the volume of trade between the two should go up to $ 5Bn per year. Dawn. Islamic banking is the future, says SBP chief The Acting Governor of SBP Dr. Murtaza Syed, said that Islamic banking has a key role in the growth of the economy while it has been growing at a fast speed, particularly in Pakistan. Dr. Syed was addressing the World Islamic Finance Forum (WIFF) held in Karachi and said that Islamic banking has an asset of $ 49Bn in the OIC countries. Dawn. Oil industry warns of supply chain breakdown A major oil industry lobby has warned of impending breakdown in the energy supply chain as companies are facing financial crisis following refusal of international banks to accept Letters of Credit (LCs) opened by Pakistani banks. In an SOS call, OCAC Chairman Waqar Irshad Siddiqui revealed that the oil industry had come under financial strain. Tribune. Textile industry seeks zero-rated status The textile industry sought restoration of zero rating status, duty free import of cotton, continuation of regional competitive energy tariff (RCET), extension of Long Term Financing Facility (LTFF) scheme for the entire value chain in FY23. The News. Govt shocks consumers with PKR 213 per litre hike in cooking oil prices The govt. has shocked consumers by pushing up ghee and cooking oil rates by an unprecedented PKR 208 and PKR 213 to an all-time high of PKR 555 per kg and PKR 605 per litre, respectively, even though these rates still do not exist in the retail markets. Dawn. LPG price slashed by PKR 13 per kg Ogra has slashed the price of LPG by PKR 13 to PKR 218.76 per kg. Now, the domestic cylinder will be sold for PKR 2,581.35 and the commercial cylinder will be available at PKR 9,931.65. Tribune. May-22 Source: KCCI Research Nelson Mandela Top 10 Remittances Sources for Pakistan in 10M-FY22 ($ Bn) Saudi Arabia UAE U.K. USA Oman Qatar Kuwait Italy Australia Canada 6.52 4.90 3.67 2.56 0.95 0.86 0.78 0.71 0.64 0.59 0 2 4 6 8 Source: KCCI Research; SBP Note If any member is facing any issues pertaining to PakistanAfghanistan investment and trade policies or has project proposals is requested to share the information at secretary@kcci.com.pk for forwarding to the Board of Investment.