Pakistan Daily Economy Update - 12 April

Transcription

1. Apr . 12, 2018 KCCI - eBulletin Industrial sector: ECC to consider discontinuation of subsidy on power today ECC of the Cabinet, which is scheduled to meet on Apr. 12, 2018 (today), will consider discontinuation of PKR 3/unit subsidy on electricity available to the industrial sector. The committee also decided that a mechanism will be worked out for the subsidy beyond claims of Jun.’17. Power Division has requested that payment of Industrial Support Package (ISP) claims after cross subsidizing against negative fuel price adjustments may be made till Dec.’17 and the support package may be discontinued after Dec.’17 till improvement in the financial health of the power sector. BR. SBP allows BOC to open Yuan accounts of local banks SBP has allowed Bank of China (BOC) to establish a local Chinese Yuan (CNY) settlement and clearing setup in Pakistan. With this arrangement, BOC can open CNY accounts of banks operating in Pakistan, to facilitate settlement of CNY-based transactions such as remittance to/from China. BOC can also provide CNY liquidity to the interbank market for the settlement of CNY-based transactions. The settlement and clearing mechanism is expected to reduce costs and increase efficiency for the local banking system for transacting in CNY, enhance market liquidity and facilitate settlement of growing trade and investment transactions between China and Pakistan in CNY. BR. Pakistan’s economy to maintain strong growth in FY18: ADB Pakistan’s economy is projected to maintain a strong growth in FY18 as power supply in the country improves, manufacturing and crop harvests strengthen, and consumption expenditure and investments rise, according to the latest ADB flagship report titled Asian Development Outlook (ADO) 2018. It projects GDP growth for Pakistan at 5.6% in FY2018 and 5.1% in FY2019 as fiscal challenges and wider current account deficits take effect. Pakistan’s economic prospects in the coming years remain positive if budget and current account deficits are reduced and exports are rejuvenated by improving the country’s competitiveness, it said. Daily Times. PM’s aide going to attend IMF meetings just days before budget PM Abbasi has decided to send Dr. Miftah Ismail, his Adviser on Finance to attend spring meetings of the IMF in a bid to assess the mood in Washington before Pakistan makes a decision on whether to seek another bailout. The decision to send Dr. Miftah hardly 10 days before the announcement of budget signifies the importance of the move and has raised speculation that the country will have to seek another IMF bailout package between Jun and Sep’18. Ismail would go to Washington on 18th Apr on a 3-day visit. Tribune. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 11-Apr 115.61 116.35 0.00% -0.09% Crude (JU'18) 11-Apr 11-Apr 11-Apr 11-Apr PKR PKR Pts. $ Mn $/bbl 46,486 1.35 66.69 0.02% NM** 1.86% Gold (MY'18) Gold (10g) Local 11-Apr 11-Apr $/oz PKR 1,353.7 50,657 0.98% 0.26% Silver (MY'18) Cotton(KHI)-40 kg 11-Apr 11-Apr $/oz PKR 16.67 8,038 0.63% 0.00% Kibor-6M 11-Apr % 6.50 $ Bn 17.80 0.01% WoW -0.85% Remittances 30-Mar FY18 Jul-Mar 18 $ Bn 14.61 YoY 3.55% Exports* Imports* Jul-Mar 18 Jul-Mar 18 $ Bn $ Bn 17.08 44.38 13.08% 15.57% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Jul-Mar 18 Trade Balance* $ Bn -27.30 Jul-Feb 18 Current Account $ Mn -10,826 Foreign Direct Inv. $ Bn 1.94 Jul-Feb 18 Jul-Feb 18 LSM Growth* % 6.24 % 3.20 Jul-Mar 18 Avg. CPI Discount Rate % 6.00 Mar-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies FBR to probe offshore assets without time bar The FBR has been authorised to probe into the source of offshore assets held by Pakistanis regardless of the ownership period, under latest amendments into a tax law to nail tax evaders. Previously the FBR could ask Pakistanis of sources of foreign assets of which they got ownership during the past 6 years. But now it is now empowered to question source about foreign assets or investment of Pakistanis, especially listed in Panama, Paradise and Bahamas paper leaks, with the removal of time limitation for examining cases. The time limit provision was expunged from the previous law week through the recently promulgated Income Tax (Amendment) Ordinance 2018, however, restriction of time limitation for examination remains intact in case of domestic income or assets. The News. 175 Amnesty scheme fully compliant with OECD confidentiality clauses PM’s Revenue Advisor Haroon Akhtar has said that the recently announced amnesty scheme is fully compliant with confidentiality clauses of OECD has reminded that predicate offences like corruption money as well as drug and terror financing have been excluded from this scheme, which would help in satisfying the Financial Action Task Force (FATF). He further said that under the amnesty scheme, no one would be able to buy property without coming into tax net after becoming filer. BR. 105 Amnesty, tax relief package: ordinances laid before lower house The Govt. has laid three ordinances related to tax amnesty scheme before the National Assembly; Foreign Assets (Declaration and Repatriation) Ordinance, 2018, Voluntary Declaration of Domestic Assets Ordinance, 2018 and Income Tax (Amendment) Ordinance, 2018. The amnesty scheme is aimed at broadening the tax base and is expected to help attract more investment \ and spur industrial activity in the country. BR. GBP, 11-Apr-18, 164.0 165 155 145 EUR, 11-Apr-18, 143.0 135 125 115 95 Apr-17 Automakers push govt. to standardize manganese content in petrol Ogra has asked the govt. to move quickly on setting specifications and standards for petroleum products in the market as more automotive manufacturers from Japan and Pakistan have raised concerns about domestic fuel’s quality. The regulator has noted that high manganese content in fuel emanated from a chemical to boost octane number. From a technical standpoint, manganese compromises engine performance in the long run, chokes catalytic convertor of the vehicle and aggravates pollution level by not converting unsafe substances of the exhaust. Dawn. USD, 11-Apr-18, 115.6 USD Jul-17 GBP EUR Oct-17 Jan-18 Source: KCCI Research ; Oanda.com Quote of the Day "Success is not final; failure is not fatal: It is the courage to continue that counts." Winston S. Churchill Pakistan, Kuwait Fund sign loan accord Pakistan and the Kuwait Fund for Arab Economic Development (KFAED) have signed Supplementary Loan Agreement of $ 1.5Bn for Golen Gol Hydropower Project. The State of Kuwait has already been co-financing this project with an amount of $ 3.7Bn. The Economic Affairs Division secretary said that completion of the project will meet electricity demand in KP and Chitral which will also boost tourism and economic activities. The Nation. PSX elects seven directors without contest The Pakistan Stock Exchange (PSX) put to an end a months-long tussle with the SECP by electing unopposed seven directors on its board. The directors were elected on behalf of the PSX shareholders for a period of three years. The seven elected directors are Zhiping Rong, QUE Bo, Yu Huali, Shahnawaz Mahmood, Ahmed Chinoy, Abid Ali Habib and Mohammad Ashraf Bawany. Earlier on 28th Feb’18, the PSX had dumped SECP’s ruling to hold fresh elections for the BoD, taking the view that next elections should be held in Feb‘19. The SECP, however, was of the view that fresh elections were due since the PSX completed its demutualisation process in Jun’17 and the outgoing board lacked general public representation on the board. PSX would soon nominate another 14 candidates, of which the SECP would select 7 as its nominated independent directors on the board. Tribune. -17.18% -50.03% 15.64% Chart of the Day PAKISTAN'S POL REFINERY PRODUCTION (FY04 - 8MFY18) 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Figures in Mn Tons Source: KCCI Research, OCAC Disclaimer Solar power project to be built in Sindh with $ 100Mn WB loan The World Bank will finance the Sindh Solar Energy Project by providing $ 100Mn loan for generation of clean energy in the This report has been prepared by KCCI Research & Development Cell. The information contained province. The project will finance 20MW of distributed solar photovoltaic panels on rooftops and other available space on and herein have been compiled or arrived at based upon information obtained from sources believed to around public sector buildings in Sindh. The Sindh energy department, has prepared an initial list of buildings in Karachi and be reliable and in good faith. Such information has not been independently verified. Hyderabad. Further, solar parks in the 50MW to 200MW range would be developed to facilitate a total of 400MW of solar icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' power capacity. The Bank is likely to approve the loan in May.’18. Dawn. understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. Contact: res@kcci.com.pk