Pakistan Daily Economy Update - 1 March

Transcription

1. Mar . 1, 2017 KCCI - eBulletin Price of petrol raised to PKR 73, diesel to PKR 82 per liter: Ishaq Finance Minister Ishaq Dar has announced increase in petrol prices by PKR 1.71, from PKR 71.29 to PKR 73/liter and High Speed Diesel (HSD) price by PKR 1.52 from PKR 80.48 to PKR 82/liter. The rates for kerosene oil has been rounded off from PKR 43.25 to PKR 44 and of Light Diesel Oil (LDO) from PKR 43.34 to PKR 44. The govt. will bear burden of PKR 3Bn as subsidy for not passing on the increase in international prices which are rising for the last seven months. BR. ECO summit 1st Mar‘17 today with pledge to expand trade. Leaders of different countries are expected join hands in Economic Cooperation Organisation as they gather in Islamabad to participate in the ECO’s 13th summit where they will pledge for expansion of trade and economic relations and connectivity in the region. Prime Minister Nawaz Sharif will inaugurate the summit, which is being participated by heads of government/state of eight of the 10 countries. Dawn. Jul.’16-Jan.’17 services trade deficit up 30% According to the State Bank of Pakistan, country's services trade deficit rose sharply by 30% during 7MFY17 to $ 1.97Bn compared with $ 1.54Bn in the same period of last year. The services’ export stood at $ 2.90Bn against $ 3.23Bn in the corresponding period, down $ 332Mn while services’ import surged by 2.5% to reach $ 4.88Bn compared to $ 4.76Bn in 7MFY16. Pakistan had received some $ 713Mn during 7MFY16 and with the arrival of these inflows, the service trade to post a lower deficit last year. BR. Tax exemption for companies investing in SEZs BoI Chairman has said that the local and foreign companies who wish to make investments and set up industries in the Special Economic Zones (SEZs) would be exempted from taxes. He said the BoI has recently conveyed to the federal government that provinces must not charge two taxes from investors. In the upcoming budget, the government will consider reducing number of taxes and investors who want to set up textile units before June 2020 would be given special concession in taxes. Dawn. Consumer confidence reaches all-time high Nielsen Global Survey of Consumer Confidence and Spending Intentions has revealed that the consumer confidence index in Pakistan went up by five points, reaching an all-time high of 106 in the fourth quarter compared to 101 in the previous one. Despite the fact that the consumer confidence index took a three-point dip during the third quarter, the year ended with the index reaching its highest level since 2008, it added. Dawn. Nepra approves PKR 3.23 per unit cut in tariff Nepra has approved PKR 3.23/unit reduction in power tariff, for the Ex-Wapda Distribution Companies, for January under monthly fuel adjustment formula. The Central Power Purchase Agency (CPPA) in its petition had proposed PKR 1.62 per unit reduction in fuel based power tariff for January over the reference fuel charges of PKR 9.867 per unit. The Nation. FBR vows undeterred action against defaulters, non-filers The FBR will continue to conduct raids against defaulted taxpayers on tangible evidences. A day earlier all chambers of commerce and association of the country had adopted a joint strategy to force the FBR to stop raids on business premises and avoid freezing bank accounts. According to the FBR, compliant taxpayers should not be worried about an action, the board has directed the tax departments to take strict action against defaulters, especially the non-filers. The Section 114 of Income Tax Ordinance, 2001 made it mandatory for a person to file his annual return in case he is registered with a chamber of commerce and industry, trade association, market committee or professional body. Tribune. SECP unveils policy: issuance of shares at discount SECP has issued a new policy for issuance of shares at a discount by any company to whom the Companies (Issue of Capital) Rules, 1996 apply. In this regard, SECP has said that issuers desirous of issuing shares at a discount shall accordingly submit adequate information/documents requisite for an early decision by the commission whether to grant or not to grant the sanction applied for under sub-section (2) of section 84 of the Companies Ordinance 1984. BR. China seeks to hold 20% PSX’s sale proceeds to meet default claims The Chinese-led consortium that acquired controlling stake of PSX wants to hold 20% of the sale proceeds for a year to meet any claim related to defaulting brokerages. The Chinese consortium won the bid for 40% stakes in PSX at a transaction value of $ 85Mn. The News. $ 1.09Bn repatriated in July-Jan Repatriation of profits and dividends on foreign investments increased further in the 7MFY17 to $1.09Bn against $ 1.058Bn in corresponding period last year. The inflow of foreign direct investment (FDI) also improved during the period to $ 1.161Bn. Dawn. Industries threaten shutdown over Sepa actions The seven industrial estates of the city have decided to hand over the keys of their industrial units to Sindh Chief Minister if the provincial government fails to stop Sepa from taking ‘illegal’ actions against industries. They warned that if they were not heard by the chief minister they would be left with no choice but to approach the court of law. Dawn. IPPs’ pending payments mount to PKR 439Bn again The pending payments to Independent Power Producers (IPPs) have reached PKR 439Bn as on Feb.’15, 2017 as govt. failed to retire the outstanding dues to 57 power companies. According to details, Kot Addu Power Company Limited is yet to receive PKR 68.18Bn, Hub Power Company Limited is to get PKR 64.19Bn, and Central Power Generation Co Ltd is to receive PKR 62.80Bn. These are just few big receivables while many other companies are also awaiting their dues to be cleared. The Nation. China to build automobile city in Gwadar Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of CPEC. Chinese authorities have already initiated paperwork on said projects. Analysts have advised owners of local automobile industry to start joint ventures with Chinese as this would help in transfer of technology as well as boost the local industry. Tribune. Pakistan’s monthly power outages among highest in Asia: ADB Pakistan needs massive investment in energy infrastructure as the country endures one of the region’s highest numbers of power outages, causing heavy losses to industry, according to the Asian Development Bank (ADB) report of “Meeting Asia’s Infrastructure Needs” has said that Pakistan faces 31 power outages in a typical month – a little better as compared to 51 in Nepal and 65 in Bangladesh. The Bank said developing Asia, consisting of 45 developing member countries, will need to invest $ 26Tn over the 15-year from 2016 to 2030, or $ 1.7Tn a year on transport, power, telecommunications and water supply and sanitation. The News. Asia must spend $ 26Tn on infrastructure by 2030: ADB In its report on "Meeting Asia's infrastructure needs", the Asian Development Bank (ADB) has said Asian nations must spend $ 26Tn by 2030 on infrastructure to battle poverty, boost economic growth and fight climate change. The report says that governments in some of the poorest countries in the world should invest in everything from transport, telecommunications, power and water and sanitation. It added that despite dramatic infrastructure growth in recent decades, more than 400Mn people have no access to electricity, 300Mn lack safe drinking water and around 1.5Bn are without basic sanitation. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (AP'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.84 107.30 48,534 -9.20 53.98 1,250 44,057 18.31 7,272 6.12% Forex Reserves 17-Feb $ Bn 21.93 -0.01% 0.05% 0.03% NM** -0.11% -0.19% 0.00% 0.34% 0.00% 0.00% WoW 0.48% YoY -1.86% -3.21% 13.65% -28.68% -90.24% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Jan 17 Remittances $ Bn 10.95 Jul-Jan 17 Exports* $ Bn 11.69 Jul-Jan 17 Imports* $ Bn 29.11 Jul-Jan 17 Trade Balance* $ Bn -17.43 Jul-Jan 17 Current Account $ Mn -4,716 % 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 USD GBP, 28-Feb-17, 130.3 EUR, 28-Feb-17, 111.1 USD, 28-Feb-17, 104.8 May-16 GBP Aug-16 Nov-16 Feb-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "The biggest risk is not taking any risk ... In a world that's changing really quickly, the only strategy that is guaranteed to fail is not taking risks." Mark Zuckerberg Chart of the Day Trade in Services (7M-FY17) 2,500 2,000 1,500 1,000 500 0 -500 -1,000 -1,500 -2,000 Value in (Million US $) Balance Export ImportSource: KCCI Source: KCCIResearch, 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