Pakistan Daily Economy Update - 12 August

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1. Aug . 12, 2017 KCCI - eBulletin Number of return filers grew 50% in 4 years: Dar Finance Minister Mr. Dar has said that the number of taxpayers filing returns has gone up by almost 50% over the last 4 years. Mr Dar said this while launching the tax directory for 2015-16, which features details of 1.21Mn taxpayers, including companies, associations of persons and individuals. The number of taxpayers has been increased to 1,216,614 for TY16 as compared to 1,074,418 for TY15, reflecting an increase of 142,196 taxpayers. The directory has been tabulated from returns filed manually and electronically till Aug. 10, 2017. Only 30,000 companies filed their returns in 2015-16, less than half the number of firms registered with SECP. This reflects the low level of tax compliance even within the corporate sector. BR/Dawn. FBR working on new unit to boost tax base FBR is set to launch a new unit that aims to increase tax base in the country, part of government’s efforts to boost revenue collection. The dedicated unit, which will identify new taxpayers and monitor withholding tax collection, is likely to establish by the month end. The new “broadening the tax base office” will identify potential taxpayers on the basis of monitoring of withholding taxes and third party sources. The News. Dar removed as head of all key economic committees In a significant move, PM Abbasi has removed Finance Minister Ishaq Dar as head of all key economic committees, apparently consolidating powers of PM Office under his direct control. The move has brought back the direct and powerful central position of the PM Office over federal ministries and divisions it enjoyed when Shaukat Aziz was prime minister during Gen Pervez Musharraf’s rule. Dawn. Sugar prices keep mounting as millers push govt for subsidy With sugar stocks at their lowest in the main wholesale market after an unprecedented increase of PKR 14/kg in about 13 days, the ex-mill price of sugar has jumped to PKR 60-61/kg. The price showed no improvement as powerful mill owners continued squeezing supplies in an attempt to keep the price of the commodity hiked. After failing to strike a deal with government over export subsidy, the sugar mill owners have started sharply increasing ex-mill price, leading to slow lifting of commodity by the dealers. The News. National Bank to open two branches in China next year NBP will open at least two branches to launch its banking operations in China in a bid to not only expand its footprint in the Asian giant’s market, but also finance projects related to CPEC. To be operational by the mid of next year, one branch will be set up in Beijing, while the other will be established in Shanghai. The branches will extend project financing and provide foreign trade facilities to the Chinese and Pakistani clients. The News. NBP to disburse Sharia-compliant youth loans NBP will re-launch the business loan scheme under the PM’s Youth Programme next month under the Islamic mode of financing. NBP President has said the pace of loan disbursement under the scheme has slowed down, adding that the interest-based nature of loans is also a hurdle. Dawn. PM orders timely completion of hydroelectric power projects PM Shahid Khaqan Abbasi has directed the recently created Ministry of Water Resources to focus on ongoing development projects and ensure their timely completion. Chairing a meeting on Wapda affairs, he said the new ministry has been constituted to resolve issues related to water storage and supply more efficiently. The prime minister also noted that water security has been neglected in the past with hydroelectric power generation gaining the entire focus. The PM directed the officials to constantly monitor the progress of planned projects to ensure timely completion. Tribune. Chinese firm to invest $ 1.5Bn in developing wind farms in Punjab A Chinese company, Sany Group, has announced plans to invest $ 1.5Bn in the development of wind energy in Punjab. The group is the 5th largest construction machinery producer in the world and number one in China. It is a global manufacturer of construction and mining equipment, port and oil drilling machinery and renewable wind energy systems. The company has already selected two sites for wind mast installation and has submitted a land application with geographical coordinators of the selected sites. Tribune. ”Digital Pakistan Policy” half-baked work \ IT Ministry has finalized the first-ever "Digital Pakistan Policy 2017" sans any exports target, implementation cost as well as revival plan for the sick Telephone Industry of Pakistan (TIP). The draft of the Digital Pakistan Policy 2017 has been earlier shared with all stakeholders for their input. The draft policy has been finalized and would be presented before ECC of the Cabinet for its final approval soon. The policy states that all measures including legislative, policy, administrative and international marketing measures will be pursued to augment software exports, create jobs and contribute towards the govt.'s efforts to increase overall IT exports and remittances. BR. Chinese Vice Prime Minister due on Aug. 13, 2017 Chinese Vice Prime Minister Wang Yang will pay a two-day visit to Pakistan on Aug. 13, 2017 to participate in Pakistan's 70th Independence Day celebrations. Chinese Vice Prime Minister would hold bilateral talks with Prime Minister Abbasi during which the two sides are expected to sign several memoranda of understandings (MoUs) and agreements aimed at strengthening bilateral cooperation between the countries. BR. Shareholding in foreign firm: SECP extends time period for reporting by companies SECP has extended the time period up to Sept. 30, 2017 for reporting by the companies having shareholding or any other interest in a foreign company. In this regard, a circular has been issued regarding extension in time period for compliance with the requirements of Section 452(4) of the Companies Act, 2017 which provides that every company incorporated under the company law is required to report to the registrar the information relating to every substantial shareholder or officer of the company who have shareholding or any other interest in a foreign company on the specified form. BR. Pak-China TVTI to be set up at Gwadar Ports and Shipping Ministry will establish a Pak-China Technical and Vocational Technical Institute (TVTI) at Gwadar under CPEC project to produce skilled manpower for the deep sea port. The institute will help fulfil technical and skilled manpower requirements of the port after expansion, industries including Gwadar Port Free Zone, Export Processing Zone and other industrial and port related fields. In this regard, IPPR, a Chinese company, has already reviewed design and feasibility of Pak-China TVTI. The Nation. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 11-Aug 11-Aug 11-Aug 11-Aug 10-Aug 10-Aug 11-Aug 10-Aug 11-Aug 11-Aug PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.40 106.90 45,288 -2.24 48.52 1,287.4 43,671 17.11 6,859 6.16% 4-Aug $ Bn 20.00 0.00% 0.09% -0.76% NM** -2.22% 0.73% 0.10% 1.21% -0.77% 0.01% WoW -1.38% YoY 16.04% 10.58% 36.74% -55.46% -148.57% 4.58% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-17 Remittances $ Bn 1.54 Jul-17 Exports* $ Bn 1.63 Jul-17 Imports* $ Bn 4.84 Jul-17 Trade Balance* $ Bn -3.20 Jul-Jun 17 Current Account $ Mn -12,098 Foreign Direct Inv. $ Bn 2.41 Jul-Jun 17 Jul-May 17 LSM Growth* % 5.69 % 2.91 Jul-17 Avg. CPI-FY17* Discount Rate % 5.75 Jul-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 145 GBP, 11-Aug-17, 136.5 135 125 EUR, 11-Aug-17, 123.9 115 105 USD, 11-Aug-17, 105.1 95 Aug-16 USD Nov-16 GBP EUR Feb-17 May-17 Aug-17 Source: KCCI Research ; Oanda.com Quote of the Day "We are not permitted to choose the frame of our destiny. But what we put into it is ours." Dag Hammarskjold Chart of the Day Pakistan- Banks' Soundness Rankings 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 20 40 60 80 68 66 71 71 85 88 93 100 71 85 99 101 120 *Higher the figure lower the rankings **Rankings of Global Competitiveness Index Source: KCCI Research, WEF Disclaimer This report has been prepared by KCCI Research & Development Cell. The information HBL reports 1.8% dip in profit contained herein have been compiled or arrived at based upon information obtained from HBL has declared a consolidated profit of PKR 15.7Bn (EPS 10.56) for 1HCY17, down 1.8% from PKR 16Bn 1HCY16. The bank also sources believed to be reliable and in good faith. Such information has not been independently verified. declared a dividend of PKR 3.50/share, bringing the total dividend for 2017 to PKR 7/share. Dawn. 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