Pakistan Daily Economy Update - 13 April

Transcription

1. April 13 , 2021 KCCI - eBulletin FBR official assures traders of resolving issues List of FBR Corporate Regional Tax Office (CRTO) Karachi Chief Commissioner Aftab Imam has assured the business community Indicators of analyzing the issue of high turnover tax on yarn traders as compared to profit margins and looking into the possibility USD-Interbank of restoring it back to 0.1% from 1.5% in the next budget. During his visit to KCCI, the chief commissioner said that FBR USD-Open MKT was seriously working on creating ease for the business community as the economy would only flourish when businesses KSE-100 index flourished, which would automatically improve tax revenue for the country. He said that most of the issues being faced FIPI would be resolved in the next one and a half year. KCCI President Shariq Vohra pointed out that many members of the Crude (AP'19) business community have been receiving bulk audit notices in which huge number of documents for six years old cases Gold (MA'19) of 2014 were being demanded. The Chief Commissioner said that most of these were system generated notices, hence, Gold (10g) Local the business community should not worry. Only the missing documents should be provided with a cover letter in which Silver (MA'19) it should be clearly mentioned that “the following relevant documents have already been provided while the missing Cotton(KHI)-40 kg documents are being sent”. He sought business community’s assistance in identifying thoseMns of individuals who had Kibor-6M been doing businesses of up toBns of PKRbut remained out of the tax net. Tribune. Date / Period Unit Value Change Daily 12-Apr PKR PKR 152.75 152.95 -0.13% -0.05% 12-Apr 12-Apr Pts. $ Mn 44,978 -0.12 -0.46% NM** 12-Apr $/bbl 59.70 0.64% 12-Apr $/oz 1,731.2 -0.75% 12-Apr PKR 89,340 4.49% 12-Apr $/oz 24.87 -1.52% 12-Apr PKR 11,574 0.00% 12-Apr % 7.85 0.01% 2-Apr $ Bn 20.68 WoW -0.75% Remittances Jul-Mar 21 $ Bn 21.47 26.22% Exports* Jul-Mar 21 $ Bn 18.69 7.12% Imports* Jul-Mar 21 $ Bn 39.51 13.57% Trade Balance* Jul-Mar 21 $ Bn -20.83 -20.05% Remittances top $ 2Bn for 10th month Remittances from Pakistani workers employed abroad increased to $ 2.7Bn in Mar’21, a 43% rise year-on-year and up 20% compared to the previous month. Remittances rose 26.2% to $ 21.5Bn in 9MFY21, compared with $ 17.0Bn in 9MFY20. Proactive policy measures by the govt. and SBP to encourage more inflows through formal channels, limited cross border travel in the face of the Covid-19, medical expenses and altruistic transfers to Pakistan amidst the pandemic, and orderly foreign exchange market conditions are continuing to contribute to this sustained rise in workers’ remittances. The News. Current Account Foreign Direct Inv. Jul-Feb 21 Jul-Feb 21 $ Bn $ Bn 0.88 1.30 132.14% -29.88% PM Imran introduces landmark reforms to enhance import, export system PM Imran Khan said that that the govt. has introduced ‘Pakistan Single Window Act 2021’ which is a landmark reform aimed to ease imports and exports systems in Pakistan. He said that Pakistan Single Window will bring $ 500Mn annual savings and reduce cargo clearance time from days to hours by integrating 75 regulatory departments, including customs, banks, port authorities, shipping companies and brokers. Moreover, the Pakistan Single Window will be managed by a separate committee of the govt., whose task will ensure the enhancement of trade and transit of the country. The Nation. 235 PM disapproves abrupt subsidy withdrawal PM Imran Khan has not approved the plan to immediately withdraw subsidies, but directed to take a gradual approach aimed at protecting the people, particularly the middle-income group, who are now more exposed to spike in food and energy prices. He was chairing a meeting to review the status of the govt. subsidies on wheat, sugar, electricity and gas. Another key issue was whether to increase electricity prices by further 36%, as committed with the IMF. The Power Division will take the issue with a new roadmap for approval next week. Tribune. 165 12-Apr Forex Reserves SBP governor expects Pakistan to achieve 3% growth in FY21 SBP Governor Reza Baqir has said that Pakistan will achieve GDP growth of at least 3% in FY21 and above 4% in FY22 as the policy measures employed by central bank and govt. turned the trajectory upward. He cited the robust growth in large scale manufacturing, higher remittances, and record sales of cement and automobiles for his projection. The News. Pakistan poised for mammoth wheat production Latest reports from fields suggest an upsurge in wheat production, which may turn out to be a blessing for the country and make it self-sufficient in the grain. Wheat production this year may surpass previous records with a big margin, \ crossing 28.75Mn tons, 2Mn tons more than the previous high of 26.67Mn tons in FY17. If this feat is achieved, Pakistan may not require further imports at least in considerable quantities. The News. Bank deposits reach 14-year high in March quarter Banking sector deposits grew 18% to PKR 17.9Tn during the 3QFY21, having reached to the 14-year high level due to robust inflows of remittances and muted cash-based activities. Investments grew by 35% year-on-year to PKR 12.6Tn in 1Q2021. The excess liquidity is being placed in investments (primarily treasury bills) due to subdued growth in advances. The News. Flour price significantly higher in Sindh as compared to other provinces: NPMC National Price Monitoring Committee (NPMC) has noted that flour price is significantly higher in the Sindh province as compared to the other provinces and federal capital. NPMC observed that prices of 20kg wheat flour bags were significantly higher in Sindh (Karachi PKR 1,200 compared to prices in other provinces (Peshawar PKR 964, Quetta PKR 960, Islamabad PKR 864 and Lahore PKR 860). The Nation. Sugarcane growers get bio-agent control cards under NAEP The govt. had produced over 76,600 bio-agent cards to reduce use of chemical spray and pesticides on different crops for promoting echo-friendly agriculture in the country. Ministry of National Food Security said that the bio-agents cards were distributed among the sugarcane farmers for biological control of insects for producing chemical free agriculture produces by reducing the reliance on the use of chemicals. The Nation. UNDP offers collaboration with Sindh govt for Karachi’s development United Nations Development Program has offered to become a partner with the Sindh govt. to improve the master plan of Karachi and help resettle the people displaced due to the ongoing drive to revamp storm water drains in the city. The offer to this effect was made as a delegation of the UNDP met Sindh Local Govt. Secretary Najam Ahmed Shah at his office. The News. Bank holiday SBP will remain closed for public dealing on the first of Ramazan-ul-Mubarak, 1442 AH, which would be observed as a “Bank holiday” for the deduction of Zakat. The News. YoY Jul-Jan 21 LSM Growth* % 7.85 % 8.34 Jul-Mar 21 Avg. CPI Discount Rate % 7.00 Jul-20 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 225 GBP, 10-Apr-21, 210.3 215 205 195 185 EUR, 10-Apr-21, 181.5 175 155 145 USD Apr-20 GBP Jul-20 EUR Oct-20 10-Apr-21, Source: KCCI Research ;USD, Oanda.com 153.2 Apr-21 Jan-21 Quote of the Day “You never know what you can do until you try.” William Cobbett IMF Growth Projections (%) 8 6.7 6 6 5.1 4.4 5.0 3.6 4 2 0 -2 -4 -6 -2.2 -3.3 -4.7 Global Economy Advanced Economies 2020 2021 2022 Emerging Markets & Developing Economies Source: KCCI Research, IMF Note 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.