Pakistan Daily Economy Update - 13 August

Transcription

1. August 13 , 2020 KCCI - eBulletin Change Daily USD-Interbank USD-Open MKT 12-Aug 12-Aug PKR PKR 168.08 168.70 -0.11% -0.12% KSE-100 index FIPI 12-Aug 12-Aug Pts. $ Mn 40,473 1.35 -0.21% NM** Crude (AP'19) 12-Aug $/bbl 42.58 2.18% Gold (MA'19) 12-Aug $/oz 1,918.9 0.25% Gold (10g) Local 12-Aug PKR 109,230 0.00% Silver (MA'19) 12-Aug $/oz 25.62 2.81% Cotton(KHI)-40 kg 12-Aug PKR 8,895 0.00% Kibor-6M 12-Aug % 7.23 0.02% Forex Reserves 30-Jul $ Bn 19.56 WoW 3.44% Remittances Jul-Jun 20 $ Bn 23.12 6.35% Exports* Jul-Jun 20 $ Bn 21.39 -6.84% Imports* Jul-Jun 20 $ Bn 44.57 -18.61% Trade Balance* Jul-Jun 20 $ Bn -23.18 27.11% Current Account Foreign Direct Inv. Jul-Jun 20 Jul-Jun 20 $ Bn $ Bn -2.97 2.56 77.92% 88.03% YoY Jul-Jun 20 LSM Growth* % -10.17 % 9.26 Jul-20 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 235 215 Interest rate on loans under Kamyab Jawan program slashed by 50% The govt. has announced to slash the interest rate by 50% on loans under Kamyab Jawan program and it has also increased the loan limit from PKR 5Mn to PKR 25Mn. The govt. has disbursed PKR 1Bn to 2,900 people so far and it has approved to provide loans to another 7,500 people. The Nation. 175 EUR, 12-Aug-20, 197.7 195 185 165 USD, 12-Aug-20, 168.0 155 145 Aug-19 Sunday Adelaja Country-Wise Car Sales 1HCY20 vs. 1HCY19 (values in 000s) 4,000 2,000 -34.5% -23.3% -38.6% -10% -48.5% -20% -30% 1,269 654 6,000 -20.1% 0% -46.0% 1,082 584 8,000 1,166 716 10,000 -23.1% 1,849 1,211 -22.3% 0 UK ITALY France Jan-Jun 2019 Jan-Jun 2020 LSMIs output down 10.17% YoY Source: KCCI Research; ACEA, U.S. Bureau of Economic Analysis, VDA Large-Scale Manufacturing Industries (LSMIs) output declined by 10.17% in FY20 compared to FY19, as almost all of the major manufacturing sectors posted negative growth. LSMI output declined by 7.74% in Jun’20, compared to Jun’19, and increased by 16.81%, Disclaimer when compared to May’20. Textile, top contributing sector, fell 10.37%, coke and petroleum products 20.10%, pharmaceuticals 2.69%, This report has been prepared by KCCI Research & Development Cell. The chemicals 7.76%, automobiles 43.78%, iron and steel products 17.36%, electronics 34.82%, leather products 9.09%, wood products information contained herein have been compiled or arrived at based upon 44.25%, and non-metallic mineral products 2.16. BR. information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified. * If you support the demand to outsource Karachi’s infrastructure development task to NDMA and FWO under army’s supervision, click the link to fill the short form: http://www.kcci.com.pk/research/khi-support/ -40% -50% -60% Germany Govt raises PKR 172Bn The govt. on 12th Aug’20 has raised PKR 113Bn from market treasury bills (MTBs) and PKR 59Bn from Pakistan Investment Bonds (PIBs) auctions. Of the MTBs, PKR 59.45Bn was raised from direct auction whereas PKR 53.7Bn was from non-competitive bids. The bid trend shows investors particularly banks have ample liquidity. The total bids were PKR 629Bn. Dawn. May-20 Source: KCCI Research ; Oanda.com EUR “You attract poverty when you lack value for time” Japan FBR says national tax authority needs political consensus FBR has said that all the federating units should agree on establishment of single tax authority to collect and manage taxes across the country as the taxpayers will be facilitated by allowing single return for both federal and provincial taxes. It said that the establishment of single tax authority is part of tax reforms program funded by the World Bank. Under the program the single tax authority would be empowered to collect all taxes including sales tax on services and disburse provinces. The News. Feb-20 GBP Quote of the Day Sugar reaches PKR 100 per kg mark in retail markets after a decade Sugar price reached PKR 100 per kg mark in retail markets registering an increase of PKR 10 per kg within two weeks. The price of sugar reached this level after one decade as it was the highest level in 2010 when it crossed PKR 100 mark and sold at PKR 110 to 115 per kg in Nov’10. The News. Alternative energy policy unveiled The govt. has formally announced the Alternative and Renewable Energy (ARE) Policy 2020 that offers generous tax facilities to investors and promises induction of power plants on open competitive bidding for lowest tariff and technology transfer. Minister for Energy Omar Ayub Khan has said that the policy targets increasing share of ARE in total power supply to 20% by 2025 and 30% by 2030 from about 5% at present. Dawn. Nov-19 USD 65 44 ADB allowed to launch PKR-linked bonds ECC has allowed ADB to launch offshore Pakistan Rupee (PKR)-linked bonds of up to $ 200Mn to non-residents based on conducive market conditions. The local currency proceeds of the bonds will be used for financing long-term infrastructure and energy projects in Pakistan. \ BR. 205 Pakistan NA passes five FATF-related bills with majority The National Assembly has passed the Anti-Terrorism (Amendment) Bill, 2020; the Limited Liability Partnership (Amendment) Bill, 2020; the Companies (Amendment) Bill, 2020; the Control of Narcotic Substances (Amendment) Bill, 2020; and the Islamabad Capital Territory Trust Bill, 2020. The FATF-related legislation has been carried out for the whitening of the economy and checking of terror financing. The News. GBP, 12-Aug-20, 219.0 225 Two-thirds of Covid-19 relief funds remain unutilized With poor utilization of PM’s Relief-cum-Economic Support Package to absorb Covid-related shock due to procedural conditions, the govt. has rolled over almost two-thirds of the allocated funds into FY21 through a major PKR 540Bn supplementary grant. A decision to this effect was taken at a meeting of the ECC. Dawn. 8,407 6,465 ECC approves debt settlement of PIA’s Roosevelt Hotel ECC of the cabinet has approved settlement of $ 105Mn worth of a loan on Roosevelt Hotel, owned by PIA in the U.S. The ECC approved payment of all liabilities and responsibilities resulting from a debt secured by the PIA-owned Roosevelt Hotel in Manhattan, New York. The News. Value USA PM forms body to facilitate small businesses PM Imran Khan has formed a National Coordination Committee (NCC) on Small & Medium Enterprises (SMEs) development to generate economic activities. The NCC will coordinate and facilitate overall development and promotion of SMEs in the country by recommending policy, legal and regulatory measures to generate and sustain economic activity, employment generation and poverty alleviation. Dawn. Unit 9,933 7,717 KE rejects allegations by Nepra KE has reportedly brushed aside allegations leveled by Nepra in its show cause notice and asked for quashing it in the interest of justice. On 24th Jul’20, Nepra had issued a show cause Notice to KE, for allegedly bad performance, breach of contract and non-cooperation with its investigation team. The regulator had threatened to cancel KE's licence. BR. Date / Period China CJP says Sindh has completely failed The Supreme Court of Pakistan has expressed anger over the dismal situation of cleanliness in Karachi, observing that the Sindh govt. had ‘completely failed’ in the province. Chief Justice Gulzar Ahmad said that the provincial govt. had “turned entire Karachi into a goth”. He said that Karachi was a metropolitan city and that no country in the world could tolerate destruction of its metropolitan city. Attorney General for Pakistan told the apex court that the federal govt. is deliberating on different legal and constitutional options to save Karachi as it has become an orphan city at the moment and Pakistan will be destroyed if Karachi is ruined. The Nation. Economic Indicators List of Indicators 2,286 1,826 NDMA, FWO should develop Karachi's infrastructure: Teli Chairman BMG, Siraj Kassam Teli, who is also a former president of KCCI, has said that keeping in view the hardships being faced by Karachiites, the gigantic task of developing Karachi's infrastructure should immediately be outsourced to NDMA and FWO under Pak Army's supervision for 5 years as we firmly believe that it is beyond the capability/capacity of all the concerned departments of the provincial setup and the local administration to deal with the worsening situation. While referring to the hearing at the Supreme Court's Karachi Registry, Siraj Teli thanked the Chief Justice of Pakistan for ordering that the task of cleaning of all the drains in Karachi be given to the NDMA. Siraj Teli said that it is a high time the shabby infrastructure of Karachi is developed on a priority basis under the army's supervision otherwise the situation would continue to deteriorate, making living and doing of business in Karachi impossible. In this regard, Siraj Teli stressed that those who supported his statement should visit KCCI website (http://www.kcci.com.pk/research/khi-support/ ) and get counted by extending their support. BR. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' understanding of the news item. The