Pakistan Daily Economy Update - 12 November

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1. November 12 , 2022 KCCI - eBulletin Nepra approves paisa 51/kWh raise in KE’s tariff NEPRA has approved an increase of PKR 0.51/kWh in KE’s tariff under QTA mechanism and negative adjustment of PKR 5.1261/kWh in FCA for Sept’22. Under the notification, KE is now required to refund about PKR 8.6Bn to consumers through adjustment in Nov’22 bills. The revised rate would apply to all the consumer categories except lifeline domestic consumers Source: consuming up to 300 units, agriculture consumers and electric vehicle charging station (EVCS) consumers of KE. The negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level. BR. List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 11-Nov 11-Nov PKR PKR 221.64 226.63 0.10% 0.50% KSE-100 index FIPI 11-Nov 11-Nov Pts. $ Mn 43,093 0.77 0.45% NM** Crude Oil 11-Nov $/bbl 88.87 2.92% Deficit to fall below $ 10Bn: SBP chief SBP Governor has said that CAD is expected to remain well below $ 10Bn in FY23, a statement that suggests that the devastating floods will not adversely impact the external financing requirement. The projected deficit of $ 10Bn (less than 2.3% of GDP) is nearly half of the latest forecast of 4.3% deficit by the World Bank. The SBP Governor also said that the country would annually save $500Mn due to fresh restrictions on the use of credit and debit cards. Tribune. Gold 11-Nov $/oz 1,773.2 1.00% Gold (10g) Local 11-Nov PKR 133,660 0.71% Silver 11-Nov $/oz 21.78 0.39% Cotton(KHI)-40 kg 10-Nov PKR 17,897 0.00% Kibor-6M 11-Nov % 15.84 0.01% Stuck-up consignments, new LCs discussed FBR and the SBP have discussed ways for the release of stuck-up consignments and the opening of new LCs. SBP governor said the central bank will try to resolve the issues faced by businesses and trade due to the changed regulatory framework of foreign exchange. Mr Asim reiterated the full cooperation of FBR including the exchange of information with SBP. He also informed the SBP governor about the implementation of newly issued foreign currency limitations for passengers travelling abroad. Dawn. Forex Reserves 4-Nov $ Bn 13.72 WoW -6.53% Remittances Jul-Oct 22 $ Bn 9.90 -6.18% Exports* Jul-Oct 22 $ Bn 9.55 1.11% Imports* Jul-Oct 22 $ Bn 21.02 -16.14% Jul-Oct 22 $ Bn -11.47 26.57% Jul-Sep 22 Jul-Sep 22 $ Bn $ Bn -2.21 0.25 35.09% -42.29% YoY Trade Balance* Remittances drop as ‘unofficial channels’ thrive amid widening exchange rate gap Current Account Overseas Pakistanis sent home $ 2.2Bn in Oct’22, down 9.1% from Sept’22. Data released by SBP showed the YoY decline in Foreign Direct Inv. remittances in Oct’22 clocked in at 15.7%. Dawn. LSM Growth* CDWP clears six development projects worth Rs139bn The Central Development Working Party (CDWP) has cleared 6 development projects at the cost of PKR 139Bn. The projects include Emergency Flood Assistance Project (EFAP) in Baluchistan - OFWM component with the cost of PKR 3.83Bn, Sindh Flood Emergency Reconstruction Project at the cost of PKR 48Bn, Reconstruction Rehabilitation of Irrigation, Drainage System and Flood Protection works in KP at the cost of PKR 15billion, Improving Workforce Readiness in Punjab Project (IWRPP) at the cost of PKR 24Bn. BR. Draft amendments in Customs Rules, 2001 issued: FBR imposes new terms on global carriage of goods by road FBR has notified the SRO 2039 (I)/2022 to issue draft amendments in the Customs Rules, 2001, and has imposed new conditions on the international carriage of goods by roads including responsibilities of the sender and carrier of such goods from one country to another. Under the new Contract for the International Carriage of Goods by Road (CMR) Rules, the rules have prescribed the procedure for standardizing the conditions for the international carriage of goods by road, particularly with respect to the documents used for such carriage and to the carrier’s liability as envisaged under CMR Convention. BR. There’s ‘sufficient’ power generation, NA told The govt. informed NA that power generation capacity is sufficient – as electricity production of the NTDC system stands at 11,580 MW – to meet the system load demand. In a written reply, the Minister for Power, Khurram Dastgir Khan, said that the govt. prioritize dutilization of local fuel-based plants to reduce power shortfall. Similarly, bottlenecks for imported fuel-based plants are also being removed to maintain a smooth supply chain. BR. OGRA opens LNG imports, sales to private sector Ogra has granted an RLNG sale license to the Pakistan GasPort Consortium Limited (PGPCL), marking the first steps towards allowing the private sector a piece of the LNG imports and sales pie. Tribune. \ Jul-Aug 22 % -0.40 % 25.49 Jul-Oct 22 Avg. CPI Discount Rate % 15.00 Oct-22 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* **Not Meaningful; WoW= week on week; YoY=Year on Year; Major Currencies 305 295 285 275 265 255 245 235 225 215 205 195 185 175 165 155 145 Nov-21 GBP, 11-Nov-… EUR, 11-Nov-22, 240.2 USD, 11-Nov-… Feb-22 GBP USD May-22 EUR Regulator cuts RLNG prices by 2.4% Ogra has notified about 2.4% cut in the price of regasified liquefied natural gas (RLNG) for Nov’22 as the international spot market remained out of reach for Pakistan and an average cost of cargoes under long-term contract slightly came down with world oil price. The basket RLNG price was based on a total of 10 cargoes, 9 under the two LNG contracts with Qatar and another from a private supplier and was worked out at $ 11.29/mmBtu. Dawn. Forum to report illegal forex activities unveiled SBP has introduced a dedicated email address to promote an environment of accountability and integrity. Using the dedicated email address — WhistleBlowing.FX@sbp.org.pk — the public at large can report to the SBP any unauthorized forex activity by an exchange company or where an exchange company is not providing a system-generated receipt of the currency exchange transaction. Dawn. Car sales shrink to half in Jul-Oct’22 Amid a MoM improvement in Oct’22, the overall car sales registered a drop of 47% to 39,700 units in 4MFY23 from 74,952 units due to rising prices, curbs on auto financing and parts imports and high-interest rates. However, Oct’22 car sales rose to 11,129 units from 9,213 units in Sept’22 but it is far lower than 17,413 units sold in Oct’21. Dawn. World food import bill may go up to $ 1.94Tn this year: FAO World food import bill is estimated to rise to $ 1.94Tn in 2022, higher than previously expected, according to the Food Outlook Report released by the Food and Agriculture Organization of the UN (FAO). The forecast presented in the FAO’s biennial Food Outlook would mark an all-time high and a 10% increase over the record level of 2021, although the pace of the increase is expected to slow down in response to higher world food prices and depreciating currencies against the US$. Both weigh on the purchasing power of importing countries and, subsequently, on the volumes of imported food, the FAO report says. Dawn. Nov-22 Source: KCCI Research Quote of the Day “You are never too old to set another goal or to dream a new dream.” Customs officials’ infighting leaves Pak-China trade in limbo The wrangling between high-ranking customs officials has been hampering operations at the Sost dry port — the country’s main land trade post with China — effectively halting goods transportation from China to Pakistan through the Khunjerab Pass. Dawn. 2,361 companies enrolled in October SECP has registered 2,361 new companies in Oct’22, shoeing an increase of 17% as compared to Oct’21. The total number of registered companies now stands at 180,996. Foreign investment has been reported in 77 new companies. Total paid-up capital for newly incorporated companies for Oct’22 stood at PKR 3Bn, where about 60% companies were registered as private limited companies, while 37% as single member companies. Dawn. Aug-22 Les Brown B R E A K - U P O F PA K I S TA N ' S M A J O R TEXTILE EXPORTS IN 1QFY23 ($ MN) Cotton, 20.19% (964.52) Others, 1.67% (79.78) Other Made-up Textile Articles, 28.98% (1,384.02) TOTAL Man-Made Staple Fibers, 2.23% $ 4.776 Bn Knitted Apparel & Clothing , 27.39% (1,308.04) Not Knitted Apparel/Clothing , 19.55% (933.57) Source: KCCI Research, SBP Note **Green-colored change in indicators depicts Improvement, whereas Red demonstrates Deterioration **If any member is facing any issues pertaining to PakistanAfghanistan investment and trade policies or has project proposals is requested to share the information at secretary@kcci.com.pk for forwarding to the Board of Investment.