Pakistan Daily Economy Update - 12 April

Transcription

1. Apr . 12, 2017 KCCI - eBulletin Jul-Mar: Trade deficit rises 38.8% to $ 23.38Bn Pakistan's trade deficit rose to $ 23.38Bn during 9MFY17, up by 38.80% from $ 16.84Bn in 9MFY16. The exports declined by 3.6% to $ 15.12Bn compared with $ 15.60Bn during 9MFY16. However, imports increased by 18.67% to $ 38.50Bn as against $ 32.45Bn year ago. In Mar.’17, trade deficit increased by 77.34% to $ 3.21Bn from $ 1.81Bn in Mar.’16 with exports increasing by 3.62% to $ 1.80Bn from $1.74Bn a year ago while imports increasing by 41.22% to $ 5.01Bn from $ 3.55Bn a year ago. BR. Wapda seeks 92% increase in hydel tariff Wapda has submitted a petition to Nepra for tariff revision where it has sought a 92% increase in hydel tariff from PKR 1.88/unit in FY16 to PKR 3.61/unit in FY18 for bulk power supply to hydel power stations. Wapda has to pay PKR 121.275Bn to KP, Punjab, AJ&K as Water Usage Charges (UWC) and regular hydel levies. BR. Pakistan to be the first country in South Asia to test 5G services Minister of State for Information Technology has said that Pakistan would be the first country in South Asia to test 5th generation cellular services for fast connectivity. She said that information technology is booming in the country and broadband penetration has increased from 3% to 27% in the last two years and the government is working on a project to provide at least one mobile tower per 100 users in every village by 2030. Dawn. ECNEC may approve evacuation of power from two plants today A meeting of the Executive Committee of the National Economic Council (ECNEC) to be presided over by the Finance Minister Ishaq Dar scheduled on Apr. 12, 2017 (today) is likely to approve power evacuation from two 660MW Thar coal based plants. The meeting is expected to take up around 16 projects for water, energy and transport sectors along with construction of twolane highway from Basima to Khuzdar (106-km), Green Line Bus Rapid Transit System Karachi, from KESC Power House Chowrangi (Abdullah Chowk), Surjani, to Central Business District, Karachi (revised) and dualisation of Indus Highway (N-55), Sarai Gambila to Kohat section. BR. Russia offers 85 cents per mmbtu tariff for RLNG pipeline project Russia has offered 85 cents per mmbtu gas transportation tariff for the 800Km RLNG pipeline to be laid down from Nawabshah to Lahore. Both Russia and Pakistan have completed negotiations on the govt-to-govt. framework agreement and to this effect the Ministry of Petroleum and Natural Resources (MoPNR) would soon send a summary to the cabinet seeking approval. This development surfaced in a recent interaction that took place in Islamabad between the authorities concerned of both the countries. The News. Warsak power station: WAPDA awards PKR 868Mn consultancy contract Wapda has awarded a contract for consultancy services worth PKR 868Mn in competitive bidding for the second rehabilitation phase of the Warsak hydroelectric power station. A joint venture of four companies, led by Dolsar of Turkey, won the contract. Rehabilitation works are planned to be carried out at an approved cost of PKR 22.25Bn with the objective of regaining the 50MW capacity loss with reliable annual energy generation of 1.14Bn units, upgrading and modernizing the old system and achieving another life cycle of 30 to 40 years. Tribune. UAE allows transportation of halal products through sea Punjab Halal Development Agency (PHDA) Chairman Justice Khalilur Reman Khan has said that the UAE authority has allowed transportation of halal products through sea that would bring down the cost of freight by one third. The Chairman further said that Pakistan Halal Authority has also been operational and first meeting of its Board of Directors is being held on Apr. 13, 2017. He also said that training programs are being organized for butchers to educate them of the Sharia requirements after which they would be given licenses. The Nation. Pakistan, Turkey: Local businesses feel neglected as FTA progresses As the federal govt. moves forward to sign a Free Trade Agreement (FTA) with Turkey, the local business community has claimed that it has not been considered as a stakeholder in finalizing the agreement. Industry experts say that the prevailing disharmony in policies would diminish the benefits of the agreement. They advised that the FTA would deliver better if designed in line with the input given by the local industry and investors. They also opined that the FTA with Turkey should be based on mutual benefits and should consider existing players who have invested and brought FDI in the country. Tribune. SBI opposes FTA with Turkey Sindh Board of Investment (SBI) has raised concern on the proposed FTA with Turkey, suggesting that it could be better utilized if designed in line with input given by local industry and investors. In its joint letter to the Sindh chief minister, Commerce & Industry Ministries, BoI and TDAP, it has stated that if FTA with Turkey reduces imports duties on goods that are produced locally then importers would be benefitted at the expense of local investors who set up plants and produced goods could be harmed. The Nation. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (AP'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 11-Apr 11-Apr 11-Apr 11-Apr 11-Apr 11-Apr 11-Apr 11-Apr 11-Apr 11-Apr PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.86 106.40 48,250 2.98 53.78 1,274 43,585 18.31 7,234 6.17% Forex Reserves 31-Mar $ Bn 21.55 0.01% -0.05% 0.64% NM** 0.56% 1.57% 0.20% 2.12% 0.00% 0.01% WoW -1.12% YoY -2.29% -3.06% 18.67% -38.80% -120.51% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Mar 17 Remittances $ Bn 14.06 Jul-Mar 17 Exports* $ Bn 15.12 Jul-Mar 17 Imports* $ Bn 38.50 Jul-Mar 17 Trade Balance* $ Bn -23.39 Jul-Feb 17 Current Account $ Mn -5,473 % 4.01 Avg. CPI-FY17* Jul-Mar 17 Mar-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 Apr-16 Jul-16 Oct-16 GBP Jan-17 Apr-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "We will try to create conditions where persons could come together in a spirit of teamwork, and exercise to their heart's desire their technological capacity." Akio Morita Chart of the Day Top Coffee Importers 7 6 5 Mass transit schemes to be completed on time: minister Sindh Minister for Transport, while talking to a delegation of foreign investors has said that all ongoing mass transit schemes in Karachi will be completed within the stipulated period. He said a coordinated approach had been adopted to help develop a comfortable transport scheme for local commuters where commuters will be issued rechargeable smart cards and fair mechanism of ticket collection would also be ensured in Green Line and Orange Line schemes. Dawn. 1 Projects worth PKR 74Bn approved CDWP has approved a number of development projects to the tune of PKR 74.48Bn while recommending approval of six megaprojects to the Ecnec in energy, transport communication and health sectors. CDWP also accorded concept clearance to two foreign-funded projects proposed by the Sindh government costing Rs27.55bn. Dawn. EUR, 11-Apr-17, 111.1 USD, 11-Apr-17, 104.8 USD Pakistan, Hungary ink accord for economic cooperation Pakistan and Hungary have signed an agreement to enhance economic cooperation and trade ties. In this regard, Finance Minister Ishaq Dar has said that the agreement would facilitate active promotion of economic linkages between the two countries, and realization of the true bilateral trade potential. The Minister also invited the Hungarian companies to explore business and trade opportunities in Pakistan. The Nation. Car sales up 1.7% in July-March Sales of passenger cars posted an increase of 1.7% in 9MFY17, trucks-buses sales increased 38.7% while tractor sales rose 74% during the period. A total of 139,570 cars were sold in 9MFY17, as against 137,206 cars sold in 9MFY16. The News. GBP, 11-Apr-17, 130.4 4 6.03 3.41 3 2.39 2 1.78 1.58 1.24 1.08 1.07 1.01 0.94 0 Value in Mn US$ in 2015 Source: KCCI Research, Trademap.org 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