Pakistan Daily Economy Update - 11 July

Transcription

1. Jul . 10-11, 2016 KCCI - eBulletin Govt. offers tax incentives to new industrialists The govt. will provide attractive incentives to industrialists establishing new industries and creating employment opportunities. The govt. has given tax relief on a large scale through the Finance Tax Bill 2016, the 2001 Ordinance, for establishing industries. In this regard, instead of one, 2% tax relief will be given to those who create 50 new employment opportunities through Section 64-B, while 40% exemption in tax will be given to an industrialist. This exemption will be applied from June 30, 2016 to June 30, 2019. The News – Mon. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank 4-Jul PKR 104.87 0.26% USD-Open MKT 4-Jul PKR 105.10 0.00% KSE-100 index FIPI 4-Jul 4-Jul Pts. $ Mn 37,967 2.42 0.48% NM** Budget 2016-17: Dar reiterates stance to shore up agriculture industry A strong foundation for achieving overall inclusive growth has been laid in the budget for 2016-17 through strong incentives for all sectors of the economy including agriculture and industry, said Finance Minister Ishaq Dar. He said that the prices of fertilizer were brought down by PKR 250 a bag during the last few months and have now been further reduced by PKR 400 a bag. Prices of DAP have also been reduced by PKR 300 a bag with effect from Jul’16. Tribune – Sun. Crude (JU'16) 8-Jul $/bbl 47.21 4.35% Gold (MY'16) 8-Jul $/oz 1,365.9 0.25% Gold (10g) Local 8-Jul PKR 46,272 0.27% Silver (MY'16) 8-Jul $/oz 20.41 3.50% Cotton(KHI)-40 kg 7-Jul PKR 6,522 0.00% Kibor-6M 7-Jul % 6.06% 0.00% Gwadar: Chinese media says 'another Dubai' emerging on world map Chinese media has reported that Gwadar, another Dubai is emerging on World's map that will change the economic scenario of not only Pakistan but whole of the region. A water dam, a hospital and a school will be put into use in Aug.’16, while the construction of the Gwadar International Airport, a seaside expressway, a training center and a pipeline will begin in the meantime. COPHC, a Chinese company, managing the Gwadar port, will start developing the Gwadar Free Trade Zone (FTZ) this month with an initial investment of $ 150Mn. BR – Mon. Forex Reserves 24-Jun $ Bn 21.76 -0.05% Remittances Jul-May 16 $ Bn 17.84 5.58% Exports* Jul-May 16 $ Bn 19.15 -12.39% Imports* Jul-May 16 $ Bn 40.32 -2.74% Trade Balance* Jul-May 16 $ Bn -21.17 -7.28% Current Account Avg. CPI-FY16* Jul-Apr 16 Jul-Jun 16 $ Mn % -1,519 2.86 17.71% Gas supply accord: amendment approved by ECC The Economic Co-ordination Committee (ECC) has approved an amendment to the agreement between Central Power Purchase Agency (CPPA) and MS Rousch, Fauji Kabirwala Power Company Limited (FKPCL) and Davis to remove mismatch in payment terms of energy under the Power Purchase Agreement and the Gas payments. Out of the RLNG to be supplied to the SNGPL under the LNG Supply Agreement, the GOP has allocated 85 MMCFD to Rousch Power and 30 MMCFD to Fauji Kabirwala Power Company on as and when available basis. BR – Mon. List of Indicators WoW YoY May-16 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 Notifying Discos tariff to attract investors: IMF In its Eleventh Review report of Pakistan’s Extended Arrangement programme released recently, the IMF said that the multi-year tariffs for Faisalabad Electric Supply Company (Fesco), Islamabad Electric Supply Company (Iesco) and Lahore Electric Supply Company (Lesco), expected to be notified by July 15, would reduce uncertainty for investors and prepare the distribution companies (Discos) for private sector investment. Dawn - Mon 165 No delay on part of Dar cited: final report of refund body makes certain recommendations: FTO Federal Tax Ombudsman (FTO) has said that final report of the FTO's refund committee has made certain recommendations for clearance of backlog of pending refunds and did not allege any delay on the part of Finance Minister Ishaq Dar. The allegation of delay on part of Finance Minister was raised by the nominee of the Karachi Chamber of Commerce & Industry, in the presence of FBR members who neither raised any objection during the meeting nor sent any note of dissent afterwards. However, FTO office considers it an individual's personal opinion that should have been contested by the FBR members. BR – Mon. 105 155 GBP, 10-Jul-16, 135.6 EUR, 10-Jul-16, 115.7 145 135 125 115 95 USD, 10-Jul-16, 104.7 85 75 Jul-15 Oct-15 USD Jan-16 GBP Apr-16 EUR Jul-16 Source: KCCI Research ; Oanda.com Quote of the Day Nai Gaj Dam project: delay and cost overruns The long-delayed Nai Gaj Dam project in Sindh has been badly hit by cost overruns owing to inadequate federal funding. The dam was slated to be completed in April-May 2015. Recent reports suggest that 47% of the Dam’s physical work stands completed, and the federal government is said to have allocated PKR 3Bn for Nai Gaj dam in the FY16-17 budget that would mostly be diverted towards payment of liabilities of contractors. As a result, the actual project’s cost would remain uncovered and prone to escalation. Dawn - Mon. “Those who believed in changing the world were either hungry by circumstance or practiced deprivation by choice.” Drugs scanning equipment: millions of rupees tax exemptions granted to donation ECC has granted millions of rupees tax exemptions to drugs scanning equipment donated by Saudi Arabia. The Narcotics Control Division revealed that Pakistan and Kingdom of Saudi Arabia were co-operating in the fight against Illicit trafficking in Narcotics Drugs, Psychotropic Substances and Precursor Chemicals. The Kingdom of Saudi Arabia has donated three sets of body scanners to ANF in order to enhance the operational capabilities of AntiNarcotics Force. BR – Sun. Chart of the Day Customs values on import of light fittings/fixtures revised The Directorate General of Customs Valuation Karachi has revised customs values on the import of light fittings/fixtures. The values of various types of light fittings/fixtures have considerably increased in the international market as compared to the determined Customs values of light fittings/fixtures of different origins vide Valuation Ruling No 638/2014, dated 17-02-2014. The impugned Valuation Ruling is considerably old and requires revision in line with the prevailing prices in the international market. BR – Sun. Stay orders pull agriculture tax collection down in Punjab Punjab’s agriculture income tax (AIT) collection fell short by 33%, or PKR 750Mn, in the outgoing fiscal year, apparently because of increasing number of court stay orders against the levy. The Punjab Board of Revenue (BoR) collected PKR 1.55Bn against the target of PKR 2.3Bn during FY15-16. The target for FY16-17 has again been set at PKR 2.3Bn. However, the collection was 51% higher than PKR 1.028Bn collected in FY14-15. Dawn -Mon Outreach of Islamic banking sector Islamic banking now has a 13% share in our overall banking industry. But its ability to serve agriculture, small and medium enterprises, poor households and low-cost housing sectors remains low for want of a more diversified range of Shariah complaint products. Dawn - Mon. Abdul Sattar Edhi Commodity Wise Exports in Pakistan 14000 12362.63 12000 11663.47 10000 8000 6000 4081.84 4021.46 3393.35 4000 836.03 2000 0 FOOD GROUP Value in $ Mn TEXTILE GROUP 11MFY15 414.99 PETROLEUM GROUP 11MFY16 3443.31 OTHER MANUFACTURE 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