Pakistan Daily Economy Update - 10 November

Transcription

1. Nov 10 , 2020 KCCI - eBulletin Small traders warn another lockdown to prove destructive Shopkeepers fearing another lockdown, met with KCCI’s office bearers, and asked KCCI to play the lead role in convincing the govt. to refrain from imposing another lockdown. KCCI President Shariq Vohra said that shopkeepers must ensure compliance of SOPs and also the business timings, besides devising effective strategies for social distancing. He also took notice of complaint pertaining to harassment by customs officials. KCCI president also advised small traders to become members of the KCCI, which is the most vibrant platform for resolving all types of issues. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 9-Nov 9-Nov PKR PKR 158.91 158.50 -0.11% -1.00% KSE-100 index FIPI 9-Nov 9-Nov Pts. $ Mn 40,784 -2.85 0.13% NM** Crude (AP'19) 9-Nov $/bbl 39.66 3.07% Gold (MA'19) 9-Nov $/oz 1,883.8 -4.02% Gold (10g) Local 9-Nov PKR 98,251 -1.29% Silver (MA'19) 9-Nov $/oz 24.25 -6.12% Sindh CM Murad Ali Shah approves compensation for over 2.2Mn rain-affected people Sindh CM Murad Ali Shah, in principle, has approved disbursement of compensation to the rain-affected people in 20 districts of the province, already declared as calamity-hit areas, but the amount of this compensation would be decided by the provincial cabinet later on. CM worked out the total losses of PKR 8Bn and claimed his govt. would give compensation to the poor affected people all over Sindh to rehabilitate them. The News. Cotton(KHI)-40 kg 9-Nov PKR 10,074 -3.09% Kibor-6M 9-Nov % 7.50 0.20% Forex Reserves 29-Oct $ Bn 19.35 WoW 0.30% Global markets soar on vaccine breakthrough Global markets have roared higher in a rally led by companies hit hardest by the pandemic after Pfizer and BioNTech revealed a breakthrough in the race to find a vaccine for Covid-19. The drug makers’ announcement that a vaccine had been found to be more than 90% effective in a latestage trial ricocheted through asset markets. The News. Remittances Jul-Sep 20 $ Bn 7.15 31.08% Exports* Jul-Oct 20 $ Bn 7.55 0.33% Imports* Jul-Oct 20 $ Bn 15.13 -0.79% Trade Balance* Jul-Oct 20 $ Bn -7.58 1.88% Current Account Foreign Direct Inv. Jul-Sep 20 Jul-Sep 20 $ Bn $ Bn 0.79 0.42 153.08% -23.79% Rupee ranks Asia’s top 3 after hitting six-and-a-half months high Rupee reached six and a half months high of 158.9 against the US dollar in the interbank trade, clinching the top-3 rank in the list of Asia’s best performing currencies. Rupee appreciated by 3.1 % against the US dollar compared with 4.5% Indonesian rupiah and South Korean won 3.6%. The News. RLNG-based CNG outlets: Ogra starts issuing licences Ogra has started issuing licences for new CNG outlets based on RLNG after careful scrutiny of all the formalities. The govt. has also lifted the ban on import of CNG kits. Import duty as well as sales tax have been slashed to encourage its imports. The CNG Association argued that those measures would help the masses to get fuel that is 40% cheaper. BR. Govt significantly raises licence fee for on-site electricity generation The govt. has fixed a flat fee of PKR 1,000 per kilowatt for distributed, also known as on-site, generation licence, an exorbitant increase for private producers of any capacity and a move that is seen as counterproductive to the goal of increasing renewable energy share. Earlier, there was no license fee for distributed generation setup of up to 20 kilowatts, nominal PKR 500 for 20 to 50 kilowatts, PKR 1,000 for 50 to 100 kilowatts and PKR 5,000 for generation facility of 100 to 1,000 kilowatts. The News. Reforms approved to usher in competitive power markets In a long outstanding major development, Nepra has approved an 18-month roadmap to the electricity stock exchange — Competitive Trading Bilateral Contract Market (CTBCM) — to convert the existing captive (single buyer) electricity market into a liberal multi-buyer environment. Conceptually, this would mean the power generators and purchasers will have freedom to sell and purchase electricity bilaterally on take and pay basis through a market operator (MO) and special purpose trader (SPT) — Central Power Purchasing Agency. Dawn. LTO Karachi posts 10% growth in revenue collection in July-October LTO Karachi saw revenue collection increase 10% to PKR 444Bn during 4MFY21 as compared with PKR 402Bn in 4MFY20, as economic activities rebounded after coronavirus lockdown. The News. Pakistan may not get $ 2Bn rollover from Saudi Arabia Saudi Arabia has indicated that it might refuse a rollover of $ 2Bn to Pakistan. Islamabad has already started exploring options to manage the amount from other avenues to avert the dwindling foreign currency reserves. The News. TDAP to be notified as registrant body for GIs The federal govt. has decided to notify TDAP as registrant body for Geographical Indications (GIs) registration. The role of "registrant" body is to prepare "Book of Specification" for the relevant GI, approving "authorized users" for further registrations and coordination with the relevant Division for cooperation agreement with organizations to enable pre-registration processes of geographical indication and facilitate in arranging consultations with producers and operators in drafting book of specification. BR. \ Pakistani jewellery shining at 3rd China International Import Expo The 3rd China International Import Expo grandly opened in Shanghai. As many as 13 Pakistani enterprises specialized in jeweler design and manufacturing, cross-border trade, freight transportation, furniture, artistic handicrafts, etc. attended this year’s event. Among all the exhibits, stunning gems and jewellery from Pakistan become a big hit with the Chinese buyers. The gems are of the same quality, and price is usually 20% to 30% less than the Chinese one, as CPFTA Phase II has made the price more competitive. The Nation. First infrastructure finance guarantee facility The Country’s first financing guarantee facility specifically for infrastructure projects has been launched under the name of InfraZamin. It is a for-profit credit enhancement facility launched by InfraCo Asia, via its subsidiary Indus Guarantees Pvt Ltd, and Karandaaz. The facility aims to provide credit enhancement guarantees to sponsors of infrastructure projects to get long-term financing from financial institutions with a tenor of 10-15 years at rates lower than what they would get without the backing of a guarantee. The average ticket size of the guarantee extended to ongoing projects would be roughly around PKR 5Bn initially but projects could get guarantees ranging from PKR 3.3Bn to PKR 6Bn. Dawn. ECC forms two committees to ensure wheat availability With wheat subsidy estimates going beyond PKR 130Bn this year, the govt. is likely to arrange importing Russian commodity through land route via Kazakhstan and Afghanistan and increase minimum support price (MSP) close to PKR 1,800 /40kg. The ECC has constituted two subcommittees to deal with wheat demand and supply and logistics. The Ministry of National Food Security has informed that PKR 90Bn subsidy is required this year to bridge a 25% gap between imported and local commodity. Dawn. Sugar price moves up despite ‘fine’ imports As the govt. trumpets decline of PKR 15-20 /kg in the price of sugar in coming days, the wholesale rates of the sweetener has further swelled to PKR 99-100 /kg from PKR 98 /kg. Wholesale sugar price has already witnessed a jump of PKR 5 /kg ahead of Rabi ul Awal to PKR 98 /kg despite frequent imports by the govt. and private sector. Dawn. ADB to lend $ 300Mn to Pakistan ADB will lend $ 300Mn to support Pakistan’s fragile forex reserves after Islamabad has met almost all the conditions related mainly to lowering barriers to imports. The $ 300Mn worth of second tranche of the Trade and Competitiveness Program is part of the $ 800Mn budgetary support program. Tribune. 600 distributing components: Oracle to help KE improve management K-Electric has selected Oracle Fusion Cloud Supply Chain & Manufacturing (Oracle Cloud SCM) to automate its demand management and supply process for over 600 components of power distribution equipment. This deployment will contribute to K-Electric's mission to deliver uninterrupted, safe, and affordable power to Karachiites, as the new cloud offering can provide accurate forecasts to improve efficiency, reduce operational costs, and help enable K-Electric to respond quickly to increased power demand. BR. YoY Jul-Aug 20 LSM Growth* % 3.66 % 8.86 Jul-Oct 20 Avg. CPI Discount Rate % 7.00 Jul-20 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 235 225 GBP, 9-Nov-20, 209.3 215 205 195 EUR, 9-Nov-20, 188.6 185 175 165 155 145 Nov-19 Feb-20 USD GBP May-20 USD, 9-Nov-20, 159.0 Aug-20 Nov-20 Source: KCCI Research ; Oanda.com EUR Quote of the Day “One of the first conditions of happiness is that the link between man and nature shall not be broken.” Leo Tolstoy Air Quality Index of World Most Polluted Cities 1,119 Delhi (1st) 424 Lahore (2nd) 186 Karachi (3rd) 173 Chengdu (4th) Kabul (5th) 170 Nur-Sultan (6th) 162 Mumbai (7th) 154 Jakarta (8th) 153 Chongqing (9th) 149 Wroclaw (10th) 148 - 200 400 600 *Total Cities 95 800 1,000 1,200 Source: KCCI Research, IQAir Trade Inquiries Those members interested in exporting to Nigeria are requested to share their company profiles along with KCCI membership number at res@kcci.com.pk. Items include: Sports Goods, Garments & Textile/Leather, Lighting/Fixing, Industrial/Domestic Sewing Machine, Saw Mill Machinery & Equipment, Computer/Laptops, Eye-wears, Photo/X-ray Films, Cameras, Automobile Service Parts, Electronics & Electrical Appliances, Construction & Allied Material, Diesel/Gasoline, Kitchen ware, Agricultural Equipment, and Hospital/Surgical/Dental Equipment.