Pakistan Daily Economy Update - 12 September

Transcription

1. Sep . 12, 2017 KCCI - eBulletin Trade deficit up $ 6.29Bn in two months Pakistan's trade deficit has increased 33.52% to $ 6.29Bn during 2MFY18 over $ 4.71Bn during 2MFY17 where exports increased by 11.80% to $ 3.50Bn compared with $ 3.13Bn and imports surged to $ 9.79Bn from $ 7.84Bn. During Aug.’17 alone, trade deficit has been recorded at $ 3.42Bn, higher by 29.17% over $ 2.65Bn in Aug.’16 where exports increased to $ 2.07Bn as opposed to $ 1.65Bn while imports soared to $ 5.49Bn from $ 4.30Bn in Aug.’16. Month-on-Month basis, trade deficit rose 6.84% over Jul.’17. An increase of 26.85% has been noted in exports during Aug.’17 over Jul.’17 while there is an increase of 13.59% in imports over Jul.’17. BR. Pakistan seeks multi-billion dollar loans from AIIB for uplift projects Pakistan has tabled lists of development projects for seeking multi-billion dollars loans from Asian Infrastructure Investment Bank (AIIB) including for infrastructure and hydropower development and installation of smart meters in Pakistan, amongst other projects. A three member delegation of Asian Infrastructure Investment Bank (AIIB) led by Vice President DJ Pandian called on Finance Minister Mr. Dar in this regard. The News. Impact on trade: Rupee overvalued by 10%, says Tarin Pakistan’s currency stands overvalued by 10%, and authorities are not allowing it to depreciate and rebalance itself against the $ (in order to avoid inflating the external debt), former finance minister Shaukat Tarin said at a meeting. Nations across the world including France, Germany, China and India have let their currencies depreciate against the strengthened dollar; however, Pakistan is not allowing the rupee to adjust itself. The controlled rupee is hurting exports of the country and supporting unnecessary imports; the artificially strong rupee is hurting the manufacturing sector of the national economy and has converted the country into a trading market, he opined. Tribune. Burden: Eight areas that helped the govt. earn a mammoth PKR 1.1Tn Consumption of just eight products contributed a mammoth PKR1.1Tn (more than half the total collection of indirect taxes) in FY17, underscoring the shallowness of Pakistan’s tax system while also putting a question mark over the need of having a large tax collection workforce. Out of PKR1.1Tn, a sum of PKR 498.9Bn came from petroleum sales alone, while automobiles, iron & steel, mechanical appliances, cigarettes, electrical machinery, cement and beverages – contributed 18% in total tax collection of PKR3.361Tn in the last fiscal year. Tribune. KCCI slams FPCCI’s comments on CPEC report KCCI has criticized the FPCCI body regarding the recent comments of its executive member Mian Zafar Iqbal about CPEC, saying that FPCCI is filching KCCI’s research work. KCCI president Shamim Ahmed Firpo said that the recent comments attributed to an executive member of FPCCI about CPEC are actually taken out from the KCCI’s research report titled “CPEC – Is Pakistan Ready to Surf the Tide”, released in Feb’17 and widely published in leading newspapers. The KCCI president said that Karachi Chamber will not mind at all if FPCCI or any other institution quotes KCCI’s research work, but only after due credit / reference is given to KCCI’s R&D department. The News. Eight MoUs signed A total of eight MoUs were signed by Chinese companies during the three-day ‘First China Electrical and Mechanical Machinery Exhibition’, which concluded on 11th Sep’17. The Chinese companies including Shandong Yingxing Glass, Yityong Food Machinery Limited and Dehan Electronic Shandong Automobile Tools Ltd signed the MoUs with their Pakistani counterparts. Dawn. 600 modern buses to hit city roads soon, says minister Sindh Transport Minister has said that the city will have a new bus service called City Transport Service with a fleet of 600 Daewoo buses within the next two months. In response to a question, the minister said that all paperwork has been completed as they have been working on this transport project for the last six months and within the next three days its advertisements would appear in the press for finalizing it under the Modaraba scheme. Dawn. Strict audit requirements: thousands of ST de-registration applications pending with FBR Thousands of sales tax de-registration applications are pending with the FBR due to strict audit requirements for leaving the sales tax registration system. Many dormant companies or those which have closed their businesses are reluctant to opt for deregistration. Those who have applied for de-registration are also unable to get out of the system due to complicated audit process. The tax department had compulsorily registered many units with it but later these units stopped or closed their businesses. However they are still appearing in numbers but actually have no contribution in revenue collection as they are either filing ''nil'' sales tax return or not filing returns at all. BR. Assets of Islamic banking industry cross PKR 2Tn mark The asset base of Islamic Banking Industry (IBI) continues to post healthy growth and with an increase of some 8%, total assets of IBI have crossed PKR 2Tn mark by the end of 2QCY17. Overall, assets of IBI reached PKR 2.04Tn at the end of Jun.’17 compared to PKR 1.89Tn in \ Mar.’17. Year-on-year basis, total assets of IBI posted a growth of 16.6% as total assets stood at PKR 1.75Tn in Jun.’16. The deposits of IBI rose by PKR 156Bn during 2QCY17 to reach PKR 1.72Tn compared to PKR 1.56Tn in the previous quarter. BR. Export of sugar approved by inter-ministerial body An inter-ministerial committee of Commerce Ministry has approved export of 1.5Mn tons of sugar in three phases with a subsidy of PKR 10.70/kg. However, volume of subsidy will be linked with the international trend and it would be withdrawn when international prices reach $ 500 per ton. Sugar millers would be bound to clear all payments of growers. Provincial Cane Commissioner will give a certificate that mills have cleared growers' payments. BR. Private consultant to determine monthly coal-based power tariff Nepra will induct a private consultant to determine coal-based electricity tariff for consumers on a monthly basis as new coal power projects start coming into production. Consultants are required because no regulatory mechanism for coal pricing and import verification process unlike oil, gas and LNG prices and at least three coal projects each of 1,320MW based on imported coal were currently under construction to achieve commercial operation within two years. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (NO'17) Gold (OC'17) Gold (10g) Local Silver (OC'17) Cotton(KHI)-40 kg Kibor-6M 11-Sep 11-Sep 11-Sep 11-Sep 11-Sep 11-Sep 11-Sep 11-Sep 11-Sep 11-Sep PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.40 105.80 41,127 -2.34 48.64 1,327.6 45,257 17.80 6,591 6.15% Forex Reserves 31-Aug $ Bn 20.39 -0.01% 0.00 -0.66% NM** 1.06% -1.49% -0.94% -0.93% 0.83% -0.01% WoW 1.93% YoY 16.04% 11.80% 24.85% -33.52% -210.12% 162.81% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-17 Remittances $ Bn 1.54 Jul-Aug 17 Exports* $ Bn 3.50 Jul-Aug 17 Imports* $ Bn 9.79 Jul-Aug 17 Trade Balance* $ Bn -6.29 Jul-17 Current Account $ Mn -2,053 Foreign Direct Inv. Jul-17 $ Bn 0.22 Jul-Jun 17 LSM Growth* % 5.60 % 3.41 Jul-Aug 17 Avg. CPI-FY18* 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-Sep-17, 139.2 135 EUR, 11-Sep-17, 126.6 125 115 105 USD, 11-Sep-17, 105.6 95 Sep-16 USD Dec-16 GBP EUR Mar-17 Jun-17 Sep-17 Source: KCCI Research ; Oanda.com Quote of the Day "Survival was my only hope, success my only revenge." Patricia Cornwell Chart of the Day KMC Budget Expenditure for FY18 Medical & Health, 4.042966, 18% Engineering, 3.762418, 16% Municipal Ser., 3.079549, 13% Commerce minister lauds IPO-Pakistan’s performance Federal minister for commerce has lauded the role of Intellectual Property Organization (IPO-Pakistan) in protecting the intellectual property rights and adopting pro-active approach. He appreciated IPO Pakistan’s role for putting Pakistan on the intellectual property map of the world as a compliant and responsible country. The minister expressed these views during his maiden visit to the IPO-Pakistan headquarters. The News. Distributors slam third LPG price hike in 10 days LPG distributors have expressed concerns over increase in the LPG price for the third time in last 10 days by marketing companies and has urged Ogra to intervene into the matter and stop those planning to further increase the price before start of winter. The marketing companies on 11th Sep’17 have increased the fuel’s price by PKR 5/Kg to PKR 50 and PKR 200/domestic & commercial cylinders respectively all across the country. Dawn. Sindh suffers 31% crop loss annually due to waterlogging, salinity While waterlogging and salinity are serious issues across Pakistan, the situation in Sindh is critical with 53% of the total irrigated area experiencing their debilitating effects. An effective solution, however, is available in the shape of tile drainage technology that has many success stories in the country. These points were highlighted during a workshop held at the regional office of Pakistan Council of Research in Water Resources (PCRWR). The event’s aim was to acquaint and take feedback from researchers and scientists on a project titled integrated approach for control of waterlogging and salinity in low-lying areas of Sindh. Dawn. Provincial and District ADP & VGF, 7.024602,… Debt Servicing , 4.9961, 22% Value in PKR Bn Source: KCCI Research, KMC 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