Pakistan Daily Economy Update - 10 November

Transcription

1. Nov . 10, 2016 KCCI - eBulletin Brazil envoy says Pakistan investment-friendly During his visit to the Karachi Chamber of Commerce and Industry (KCCI), Brazilian Ambassador Claudio Lins said that ‘misinformation and false information’ about the safety and security situation discourages Brazilian investors from visiting or investing in Pakistan, which can be addressed by exchanging more trade missions. He said that the Pakistani economy is stabilizing and with the completion of the CPEC, many opportunities will emerge for foreign investors from all around the world, including Brazil. KCCI President Shamim Firpo said that there is huge potential to enhance bilateral trade relations between Brazil and Pakistan as possibilities of joint ventures in various feasible sectors including Halal food, information technology and poultry exist in abundance for both the countries. Tribune. Withholding tax collection falls 8.5% to PKR 3.76Bn FBR has collected PKR 3.76Bn in withholding tax from non-filers during 4MFY17, down 8.5% over the PKR 4.12Bn collected in 4MFY16. The News. Overcharged in September: KE to refund PKR 0.84 per unit to consumers Karachi Electric (KE) is to refund PKR 0.84 per unit to consumers overcharged in Sept.’16 after approval from the Nepra under provisional monthly Fuel Charge Adjustment (FCA) formula. The fuel cost variation of KE generation was PKR 153.47Mn in Sept.’16 over Jun.’16 whereas fuel cost variation of external generation sources was PKR 165.855 Mn which implies the total variation was PKR 12.381 Mn. BR. Murad orders completion of uplift schemes on priority Reviewing progress of the PKR 10Bn Karachi package, Sindh Chief Minister has directed the authorities concerned to complete the ongoing schemes on top priority and finalise the required formalities on the schemes to be taken up this month. Under the package, work on 14 schemes of road rehabilitation and reconstruction had been initiated in August which would cost PKR 463Mn. Out of the these, six would be completed by Dec, 16 while the rest would be completed by Jan 17. Dawn. ADB worried over ‘problem projects’ ADB is worried over the high number of “problem projects” in Pakistan even though the situation has improved in the last year. It said that 20 (or 77%) of its 26 active loan projects were “on track” as of Dec 31st, 15 while 19% loan projects were rated as “potential problem” and 4% as “actual problem”. This performance was relatively better in 2014 where 14 out of 20 projects (70%) were rated as on track, 25% as potential problem and 5% as actual problem. Dawn. Chinese containers to reach Gwadar on 12th The first Chinese trade convoy, comprising 60 containers, will reach Gwadar on Nov 12th, 16 with goods for onward export to Middle East and African countries through ships from the port and 200 more containers are on their way from China. Balochistan Chief Minister termed the event an important progress towards implementation of the CPEC project. Dawn. Motorway to be pledged: govt. may borrow $ 500Mn Secretary Finance Dr Waqar Masood has said that the govt. is considering to borrow $ 500Mn from the international market through issuance of sukuk Bonds against Islamabad Lahore Motorway to finance the budget. The Secretary Finance further stated that if the things further improve, Sukuk Bonds will be taken to the tune of $ 1.5Bn. The govt. has raised $ 2Bn loans through sukuk Bonds from the international market against $ 2.5Bn asset of Islamabad-Lahore Motorway. BR. SECP unveils new affidavit for grant of licences to NPOs The SECP has issued a new affidavit/undertaking for grant of licences or licence renewals to Non-Profit Organizations (NPOs) under section 42 of the Companies Ordinance, 1984. According to the SECP, the commission has decided that requirements for filing of affidavit and undertaking with grant and renewal of licence application, as the case may be, has been modified. BR. Jan. - Sept.’16 NPLs soar by PKR 25Bn Non-Performing Loans (NPLs) have posted a phenomenal increase of over PKR 25Bn during 9MCY17. With the current surge, cumulative NPLs of banks and DFIs reached PKR 646.23Bn as on Sept. 30, 2016 compared to PKR 620.45Bn as on Dec. 31, 2015. NPLs of all banks reached PKR 631.35Bn at the end of 3QCY16 against PKR 605.44Bn in Dec.’15. During the period under review, NPLs of DFIs declined by PKR 100Mn to PKR 15.90Bn in Sept.’16 down from PKR 15Bn in Dec.’15. BR. Alternate methodology being examined: govt. cannot hold census before Mar.’17, SC told The federal govt. has decided to use alternate methodology to hold population census in phases by using electronic devices for census data collection in the country. The federal govt. has said that three months’ time would be required for mobilization and deployment of Armed Forces for the purpose, adding that Pakistan Bureau of Statistics (PBS) will use electronic devices for census data collection. BR. $ 8Bn main rail-link: ML-1 project to be kept outside PSDP The govt. has decided to complete the $ 8Bn project meant to upgrade Pakistan’s main rail link ML-I that connects the country’s north to the south by keeping it outside the PSDP, a move aimed at avoiding its impact on the country’s limited pool of development funds. The federal govt. would provide guarantees for the $ 8Bn loans that Pakistan will avail from China and the ADB. Tribune. Islamic Development Bank offers $ 500Mn for TAPI pipeline The Islamic Development Bank (IDB), has offered $ 500Mn in loans finance the Turkmenistan, Afghanistan, Pakistan and India (Tapi) gas pipeline project. Turkmenistan will contribute 85% of the pipeline cost estimated at $ 10Bn whereas Afghanistan, Pakistan and India will have a 5% share each in investments. This cost is in addition to the $ 15Bn capital injection required for developing a gas field from where Turkmenistan will supply gas to the three countries. Of the 85% cost, Turkmenistan will provide 51% of funds and the remaining 34% will be arranged by different financiers. Tribune. SBP sells MTBs worth PKR 292Bn The central bank has sold PKR 292Bn worth of short-term debt securities at an auction on 9th Nov, 2016, with yields rising on shorter tenors. The raised amount was higher than the auction target of PKR 250Bn. The cut-off yield 6-month T-bills was at 5.94%, up 425 basis points from the previous auctions. The cut-off yield for a 3-month market treasury bill increased 446 basis points to 5.94% against 5.90% in the last auction. The government rejected bids of a 12-month treasury bill. The News. Eurozone cuts 2017 growth outlook after Brexit The EU has edged up its Eurozone growth forecast for this year but trimmed it for 2017, warning that the economy faced new challenges due to Brexit and rising inequality. The Eurozone growth would slow to 1.5% next year. Growth in all 28 EU nations would hit 1.8% in 2016 with a drop to 1.6% next year. BR. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 9-Nov PKR 104.71 0.00% USD-Open MKT 9-Nov PKR 105.90 0.09% KSE-100 index FIPI 9-Nov 9-Nov Pts. $ Mn 42,204 -9.32 0.21% NM** Crude (DE'16) 9-Nov $/bbl 45.28 0.91% Gold (NO'16) 9-Nov $/oz 1,275 -0.13% Gold (10g) Local 9-Nov PKR 44,314 -2.31% Silver (NO'16) 9-Nov $/oz 18.38 0.22% Cotton(KHI)-40 kg 9-Nov PKR 6,522 0.00% Kibor-6M 9-Nov % 6.06% 0.00% Forex Reserves 28-Oct $ Bn 24.19 -0.58% Remittances Jul-Sep 16 $ Bn 4.70 -5.28% Exports* Jul-Sep 16 $ Bn 4.68 -8.98% Imports* Jul-Sep 16 $ Bn 11.75 10.70% Trade Balance* Jul-Sep 16 $ Bn -7.07 -29.21% Current Account Avg. CPI-FY17* Jul-Sep 16 Jul-Oct 16 $ Mn % -1,368 3.95 -136.27% WoW YoY Oct-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX (2 AM) , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 GBP, 9-Nov-16, 130.1 135 125 115 EUR, 9-Nov-16, 116.0 105 95 USD, 9-Nov-16, 104.9 85 75 Nov-15 Feb-16 USD May-16 GBP Aug-16 Nov-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Nations are born in the hearts of poets, they prosper and die in the hands of politicians." Allama Iqbal Chart of the Day Pakistan's Constituent Wise Ranking in Doing Business Index (2017) Trading across Borders 172 Getting Electricity 170 169 Registering Property 157 Enforcing Contracts 156 Paying Taxes 150 Dealing with Construction Permits 141 Starting a Business 85 Resolving Insolvency 82 Getting Credit 27 Protecting Minority Investors 0 50 100 150 200 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