Pakistan Daily Economy Update - 10 June

Transcription

1. Jun . 10, 2016 KCCI - eBulletin Finance Bill 2016: amendments made to get OECD membership: Dar Finance Minister Ishaq Dar has said that govt. has incorporated amendments in the Finance Bill 2016 to qualify for the List of Indicators membership of the Organization for Economic Cooperation and Development (OECD) and subsequent sharing of USD-Interbank information from member countries about banking accounts of Pakistanis. BR. Withdrawal of ST, customs duty: Senate body finalizes recommendations on stationery inputs Finance Standing Committee has finalized recommendations on sales tax and customs duty withdrawal on stationery inputs through the Finance Bill 2016. The zero rated regime existing for stationery sector has now been abolished by imposing a 17% GST on it. Furthermore, some components are also imported; on which customs duty has been proposed at a rate ranging from 11% to 20%. In this regard, stationery sector has demanded zero-rated regime for GST and putting customs duty into fifth schedule. BR. Economic Indicators Date / Period Unit Value Change Daily 9-Jun PKR 104.40 -0.16% USD-Open MKT 9-Jun PKR 104.90 0.33% KSE-100 index FIPI 9-Jun 9-Jun Pts. $ Mn 37,414 -4.65 -0.03% NM** Crude (JU'16) 9-Jun $/bbl 50.47 -2.08% Gold (MY'16) 9-Jun $/oz 1,270.8 0.58% Gold (10g) Local 9-Jun PKR 41,271.00 0.52% Silver (MY'16) 9-Jun $/oz 17.29 1.66% Cotton(KHI)-40 kg 9-Jun PKR 6,039 -0.89% 9-Jun % 6.13% 0.00% 3-Jun $ Bn 21.26 -1.57% Remittances Jul-Apr 16 $ Bn 16.03 5.18% Exports* Jul-Apr 16 $ Bn 17.32 -12.99% Imports* Jul-Apr 16 $ Bn 36.34 -3.70% Trade Balance* Jul-Apr 16 $ Bn -19.02 -6.68% Current Account Avg. CPI-FY16* Jul-Apr 16 Jul-May 16 $ Mn % -1,519 2.82 17.71% Energy, infrastructure projects: Govt. expects $ 76Bn investment in 6 years Kibor-6M Pakistan has embarked upon an ambitious plan to invest a whopping $ 76Bn over the next 6 years to address energy supply bottlenecks and build quality infrastructure, as the country gears up to become a regional hub under CPEC. Tribune. WoW Forex Reserves Forex reserves fall to $ 21.2Bn Foreign exchange reserves of the country fell $ 335Mn to $ 21.26Bn in the week ended on 3rd June, 2016 as compared to $ 21.601Bn in the preceding week. During the week, the reserves held by the central bank decreased by $ 344Mn to $16.46Bn as compared to $ 16.80Bn in the previous week. The reserves held by banks increased $ 10Mn to $ 4.804Bn from $ 4.794Bn. The News. YoY Govt. urged to take measures to increase exports Textile value-added sector has urged the govt. to bring down the cost of all the essential utilities at par with the regional Discount Rate May-16 % 5.75 competitors to increase the country’s exports to $ 35Bn by 2018. According to the textile sector, the country needs to Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* increase exports with approximately 30% growth every year until June 30, 2018 and with 30% growth every year the ** Not Meaningful WoW= week on week; YoY=Year on Year exports will reach to $ 27Bn in 2016/17 and $ 35Bn in 2017/18. The News. Major Currencies Non-textile exports drop 20% Pakistan’s exports of non-textile products dropped by nearly 20% to $6.93Bn in the first 10 months (July-April) of the current fiscal year from $8.64Bn a year earlier, mainly due to a fall in commodity prices on the international market. Export proceeds of almost all sectors fell during the period under review, both in value and quantity terms, according to data compiled by the Pakistan Bureau of Statistics. Dawn. Petroleum ministry approves four new rigs Ministry of Petroleum and Natural Resources has approved a proposal to acquire 4 new drilling rigs to step up oil and gas exploration activities in the country and achieve self-reliance in the energy sector. Under the proposal, PKR 415.80Mn have been earmarked to acquire 4 drilling rigs and their accessories for the Geological Survey of Pakistan. The News. Wheeling of electricity: Nepra approves regulations Nepra has approved regulations for wheeling of electricity aimed at improving and opening up power sector and promote competition. According to Nepra's Wheeling of Electric Power Regulation 2016, a generation company can sell its electricity to Bulk Power Consumer (BPC) at any location in the country. The consumers will be required to pay the cost of transporting of electricity (wheeling) for using NTDC/DISCO system, in addition to the cost of generation, to be mutually agreed between the generator and BPCs. BR. Load shedding will end by 2018: Asif Water and Power Minister Khawaja Asif has said that by 2018 load shedding will be completely eliminated from the country where 10,400 MWs of electricity will be added to the system by 2018, adding that PKR 10Bn have been saved by controlling line losses. The technical and line losses have been reduced by 24%. The Minister further said that load shedding for domestic consumers has declined from seven to six hours, which will further come down in Dec.’16. BR. Posts steady growth YoY: banking sector earns PKR 52.9Bn in 1Q Performance of the banking sector of Pakistan remained steady during 1QCY16 with profit after tax improving by 2% YoY reaching PKR 52.9Bn. The SBP’s Quarterly Performance Review of the Banking Sector for the quarter ended Mar. 31, 2016 highlighted that banks' continuing investment in govt. papers led to 1% growth in the asset base of the banking system. BR. SECP seeks comments on insurance rules SECP has sought comments on its new draft rules prepared to ensure protection of insurance policyholders. The SECP issued Draft Credit and Suretyship (Conduct of Business) Rules, 2016 to consult stakeholders and seek their comments. The draft rules are aimed at formulating a comprehensive framework to regulate the guarantee business, thereby ensuring maximum protection of the interests of the insurance policyholders and at gaining confidence of the public. The News. Investment Finance Services license issued to PRSP The Securities and Exchange Commission of Pakistan (SECP) has issued the first ever Investment Finance Services license to Punjab Rural Support Programme (PRSP), for carrying out micro financing as a Non-Bank Microfinance Company. Under the new regulatory regime, the micro-financing has become a regulated activity and all the entities other than microfinance banks, undertaking microfinance activities, are required to obtain a license from SECP, a statement of the Commission issued here on 9th June 2016. Daily Times. Tobacco production likely to exceed demand Both the national and multinational tobacco companies have reduced their purchase quota by 18Mn kilogrammes for the current year, as the harvest of white patta (WP) tobacco and curing of Virginia tobacco has marked the beginning of the crop season here. However, the farmers are likely to produce much more tobacco than the companies’ demand. Last year, the total demand of the companies was about 69Mn kilogrammes and the requirement for the current year is set at about 51Mn kgs, said farmers. Dawn. 175 165 GBP, 9-Jun-16, 149.7 155 145 135 EUR, 9-Jun-16, 117.4 125 115 105 95 USD, 9-Jun-16, 103.3 85 75 Jun-15 Sep-15 USD GBP Dec-15 Mar-16 EUR Jun-16 Source: KCCI Research ; Oanda.com Quote of the Day “Beware of bribe! It is nothing but disbelief. The one who is involved in bribe will not even smell the fragrance of Paradise." Safinat’ul-Bihār Chart of the Day Budget Deficit of Pakistan 2000 1,834 1800 1600 1,370 1,389 1,194 1400 1,457 1200 1,009 1000 800 600 400 200 0 FY11 Value in PKR Bn FY12 FY13 FY14 FY15 9MFY16 Source: KCCI Research, MoF 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