Pakistan Daily Economy Update - 11 February

Transcription

1. Feb . 11, 2017 KCCI - eBulletin Govt. announces drawback package for exporters The govt. has notified long-awaited duty drawback package for exporters to reverse the declining trend of exports. Commerce minister has said that the required notifications for both the textile and non-textile sectors based upon the announcement made by the Prime Minister to give duty drawback package to exporters has now been issued and the required circular is expected any day. Under the package, sales tax, Customs duty on import of textile machinery and cotton have been abolished. The exporters will be liable to increase exports by 5% from Jan to Jun’17 and then by further 10% in FY18. The minister said that this package would generate employment opportunities and revive closed factories of the country. The News. ECOTA tariff would make trade free in region: Dastagir In a meeting with Secretary General, Economic Cooperation Organisation (ECO), Commerce Minister Khurram Dastgir has said that Pakistan attach high importance to the ECO Trade Agreement (ECOTA) and that expeditious implementation of the ECOTA tariff concessions would be a major step towards minimizing barriers to trade and ultimately establishing a free trade area in the ECO region. The ECOTA was signed by five out of ten ECO member states, including Pakistan, Afghanistan, Iran, Tajikistan and Turkey. BR. FBR postpones non-filers audit for 30 days FBR has postponed auditing of non-filers of income tax returns for a month. The latest 30-day relaxation is only in the cases selected by the tax departments and the audit proceeding will continue in those cases selected through computerized balloting by the FBR. The News. OGDCL’s circular debt increases by PKR 8.6Bn in 1HFY17 Circular debt of Oil and Gas Development Company (OGDCL) has been increased by PKR 8.6Bn during 1HFY17 and rose to PKR 119.8Bn by Dec. 31, 2016 against PKR 111.2Bn in Jun. 30, 2016. In this regard, SSGCL and SNGPL are the main contributors towards trade debt. During 1HFY17, total amount due from SSGCL stood at PKR 67.16Bn and from SNGPL at PKR 14.66Bn. BR. FBR anticipating PKR 120Bn revenue shortfall in Q3 During a performance review meeting headed by Revenue Advisor Haroon Akhtar, LTU-I, Karachi has informed that the revenue impact of reduction in oil prices is expected to be around PKR 120Bn in 3QFY17 which is mainly due to reduction of sales tax on petroleum products. The LTU- I Karachi was directed to depict 17% growth in Feb.’17 and Mar.’17 while during the same period, 30% growth target has been fixed for LTU -II Karachi. BR. Cost of Nandipur Power Plant increases The cost of Nandipur Power Plant hiked by PKR 3.6Bn to PKR 61.6Bn from PKR 58Bn on account of the inclusion of the cost of PKR 4.7Bn of 88KM gas pipeline and this fact will be unfolded in the tariff petition that the govt. is going to submit with Nepra. Now the ministry has paid the whole cost of gas pipeline and therefore PKR 4.7Bn is being included in the revised PC-1 of the project which will escalate the cost of the project to PKR 61.6Bn from PKR 58Bn. The News. Consensus eludes talks on Nepra law changes A meeting presided over by Water and Power Minister and attended by the chief ministers of KPK and Balochistan and representatives from Punjab and Sindh, could not achieve a consensus on amendments to NEPRA Act. In this regard, both federal and provincial governments have agreed to move towards a competitive electricity market regime where consensus has been developed on de-licensing generation while at the same time making provision for licensing in areas of trading and retail of electric power. They also agreed to have a national water policy after completing the consultative process but continued resisting such amendments which they believe can hurt investment in power sector or create undue hurdles. BR/Dawn. Data center to tackle money laundering, terror financing SBP has inaugurated a high-tech data center which will help the Financial Monitoring Unit (FMU) in tracking down money laundering and terrorism financing. The FMU is the financial intelligence unit of the finance ministry tasked with fighting money laundering and terror financing. Established with the financial assistance of the UK Department for International Development, the data center will host a specialist analytical suite of software (goAML) developed by the United Nations Office on Drugs and Crime (UNODC). Dawn. Senate committee dissatisfied over CPEC Senate Standing Committee on Communications has expressed dissatisfaction over the government’s attitude regarding the CPEC project. The committee’s chairman has said that it was strange that trade convoys had started passing without the completion of the western route of the corridor. The chief secretary of Balochistan confessed before the members that a committee formed on the orders of the prime minister to acquire land in Balochistan and Khyber Pakhtunkhwa had not held any meeting, hence no area had been acquired. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 10-Feb 10-Feb 10-Feb 10-Feb 9-Feb 9-Feb 10-Feb 9-Feb 10-Feb 10-Feb PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.79 107.30 49,925 4.30 53.06 1,231 43,114 17.67 7,218 6.14% 3-Feb $ Bn 22.03 -0.01% 0.00% 0.03% NM** 1.12% -0.74% -0.59% -0.57% 0.00% 0.01% WoW -1.80% YoY -2.27% -3.21% 19.32% -20.29% -92.23% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (FE'17) Gold (JA'16) Gold (10g) Local Silver (JA'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-Dec 16 Remittances $ Bn 9.46 Jul-Jan 17 Exports* $ Bn 11.69 Jul-Jan 17 Imports* $ Bn 29.11 Jul-Jan 17 Trade Balance* $ Bn -17.43 Jul-Dec 16 Current Account $ Mn -3,585 % 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 GBP, 10-Feb-17, 131.0 EUR, 10-Feb-17, 111.7 USD, 10-Feb-17, 104.9 May-16 USD Aug-16 GBP Nov-16 Feb-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day “Don't be satisfied with stories, how things have gone with others. Unfold your own myth.” Jalaluddin Rumi Chart of the Day Pakistan Corruption Index 34 32 32 30 28 26 27 24 Service exports up 10% in December Service exports rose nearly 10% YoY to $ 482.14Mn in Dec’16. Exports of services recorded a negative growth of 12.43% to $2.53Bn in the July-Dec period of this fiscal year. Imports of services registered a growth of 1.78% to $4.24Bn in 1HFY17. However, the increase was 11.98% at $ 803.96Mn in Dec‘16. The imports recorded a decline of 10.96% to $ 7.87Bn in FY16 against $8.84Bn in the preceding year. Dawn. 24 Charter of economy needed for policy consistency: Special Assistant to PM Special assistant to PM has said that the country needs a charter of economy to ensure policy consistency and build upon the macroeconomic stabilization. Politicizing economic matters and media bashing scared foreign investors away depriving the country of much-needed foreign direct investment”, he warned. He hoped there would be no load shedding by the next year because of the government’s focus on energy. He said no water reservoirs or dams were built after 1970, however, the current government was working on a number of projects in this regard. Dawn. Points out of 100 25 24 28 29 30 25 23 22 20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: KCCI Research, Trading Economics 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