Pakistan Daily Economy Update - 14 April

Transcription

1. Apr . 14, 2017 KCCI - eBulletin CM threatens to cease gas supplies, take over SSGC Sindh Chief Minister Murad Ali Shah has threatened the federal govt. of ceasing gas supplies to rest of the country if SSGC did not restore gas supply to Sindh's Nooriabad power plant within a week. Speaking at the Sindh Assembly, CM said that Hesco despite an agreement with the Sindh govt. refused to purchase 100MWs electricity from Nooriabad plant. He said Hesco justified its refusal by saying that it already has surplus electricity to effectively deal with demand. He further that Sindh govt. has been compelled to sign a deal with K-Electric. BR. Budget in third week of May: FBR Member FBR’s Member IT has disclosed that the federal budget for FY18 would be announced in the third week of May.’17 and a legislation would be proposed in Finance Bill 2017 to exempt mobile phone subscribers (below taxable limit) from payment of withholding tax in cases where they are not liable to file returns. The Senate’s IT Standing Committee observed that it is a serious issue whereby billions of rupees are being collected on account of WHT even from those who do not fall under the tax network and unfortunately. BR. Sell-off of 20% PSX shares through IPO discussed In a meeting of Pakistan Stock Exchange Divestment Committee, matter of sale of remaining 20% shares of PSX to general public through Initial Public Offer (IPO) and procedure to determine share price for this transaction have also been discussed. The PSX Divestment Committee is optimistic that the sale would be completed before Jun.’17. BR. Textile Millers invite Chinese investors for JVs in textile industry Pakistan’s textile millers have invited Chinese investment for joint ventures (JVs) in textile industry. While giving presentation to a Chinese delegation of textile groups, millers explained that Pakistan’s PM has recently announced export led growth package encompassing provision of DLTL at 4% on yarn and greige fabric, 5% on processed fabric, 6% on textile made ups, 7% on textile garments against realization of exports. He said Pakistan's foreign investment policy offers 0% duty on imports of capital goods, 10 years corporate income tax holiday, 50 acres minimum land required for SEZ, and permission of 100% private ownership. The Nation. Textile industry mulls moving court on refund issue The value-added textile industry is considering moving court against the FBR for not releasing refunds, which has crossed PKR 300Bn in various heads. The industrialists had gathered to protest against the ongoing FBR action against tax evaders and nonfilers. They said the action should be restricted to defaulters, but the tax departments are harassing the genuine taxpayers as well. They also criticized the recent action of the FBR to rollback electronically generated refund payment orders (ERPOs) and said due to this move, the exporters’ liquidity issue would further deepen. The News. PSO fear oil supply disruption, seeks swift PSO has warned the govt. of disruption in oil supply in the near future, citing scarce financial resources for the company in the face of runaway circular debt in the energy chain. PSO’s receivables from different clients have swelled to PKR 281Bn. It has sent a letter to the ministries concerned as well as the prime minister, seeking immediate action. It is demanding prompt release of PKR 107Bn to avoid default on payments to oil suppliers. Tribune. Ogra, oil companies at loggerheads over ban on retail network expansion Ogra is at loggerheads with a group of 13 leading OMCs over massive storage capacity shortfalls and the expansion of retail networks. The debate re-emerged last week when oil tankers went on strike over taxation issues. Retail outlets started drying up within 36 hours. Regulator claims that it did not ban the expansion of retail networks suddenly. It has been warning OMCs for more than two years to develop storage infrastructure before expanding retail outlets. Dawn. $ 2.56Bn foreign loans obtained by Jan. 31, 2017: Senate informed Law and Justice Minister has informed Senate that $ 2.56Bn worth of foreign loans have been obtained from international organizations during Jun.’16 till Jan. 31, 2017. Giving details, he said that out of the said amount $ 1.2Bn have been obtained from China Development Bank, China ICBC and Noor Bank while $ 1.26Bn have been obtained from multilateral institutions like Asian Development Bank (ADB), AIIB, IBRD, IDA, IDB, IDB (ST) and IFAD. During the period under review, Pakistan had received $ 102.1Mn from IMF. BR. Exports to India grow despite border tensions Despite mounting tension between two countries, report by SBP has revealed that Pakistan grew its exports to India during 8MFY17 while curtailing imports by 23%. The trade balance, however, remains in favor of India. After growing by 14%, exports from Pakistan to India amounted to $ 286Mn in whereas imports from India amounted to $ 958.3Mn from $ 1,244Mn recorded a year ago. Dawn. Service exports rose 90% in February Pakistan’s exports of services has witnessed growth of 90% YoY to $ 668.33Mn in February. In 8MFY17, exports of services fell 2.9% to $ 3.52Bn. The import of services went up 1.35% to $ 5.5Bn during the 9 months. On a monthly basis, the increase was 15.45% in February when services imports amounted to $ 650.9Mn. The trade deficit in services increased 10.09% to $ 1.98Bn during the 8 months. Dawn. Forex reserves up $ 194Mn The country's total liquid foreign exchange reserves rose by $ 194Mn to $ 21.74Bn on Apr. 7, 2017 compared to $ 21.55Bn as on Mar. 31, 2017. During the period under review, the SBP's reserves increased by $ 222Mn to $ 16.69Bn up from $ 16.47Bn. Similarly, reserves held by banks fell slightly by $ 28.5Mn to $ 5.07Bn at the end of last week. BR. 92% work on project completed The 969MW Neelum-Jhelum hydroelectric power project is heading towards completion in line with the stipulated work plan as overall progress now stands at 92%, according to WAPDA. The waterway system would enter the final phase, which would be completed in 7 months. Tribune. Engro foods profit declines 70% amounts to PKR 330.81Mn Engro Foods Limited’s net profit plunged 70% to PKR 330.81Mn (EPS: 0.43) in 3QFY17, mainly due to notable decline in sales. The firm had booked a profit of PKR 1.10Bn (EPS: PKR 1.45) in 3QFY16. Tribune. Australia pledges $ 1Mn for ‘food fortification’ In alliance with the UN’s World Food Programme (WFP), the Australian government has announced an additional support of $ 1Mn to Pakistan to improve nutrition, eliminate hunger and attain food security by fortifying food. The strategy aims to lay out key steps for overcoming the micronutrient deficiencies in the country, known as “hidden hunger”. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 13-Apr 13-Apr 13-Apr 13-Apr 12-Apr 12-Apr 13-Apr 12-Apr 13-Apr 13-Apr PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.86 106.55 47,951 -3.05 53.28 1,286 43,885 18.47 7,234 6.17% 7-Apr $ Bn 21.74 0.00% 0.05% -1.05% NM** -0.93% 0.97% 0.39% 0.90% 0.75% 0.00% WoW 0.88% YoY -2.29% -3.06% 18.67% -38.80% -120.51% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (JU'17) Gold (MY'17) Gold (10g) Local Silver (MY'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-Mar 17 Remittances $ Bn 14.06 Jul-Mar 17 Exports* $ Bn 15.12 Jul-Mar 17 Imports* $ Bn 38.50 Jul-Mar 17 Trade Balance* $ Bn -23.39 Jul-Feb 17 Current Account $ Mn -5,473 % 4.01 Avg. CPI-FY17* Jul-Mar 17 Mar-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Apr-16 GBP, 13-Apr-17, 131.0 EUR, 13-Apr-17, 111.2 USD, 13-Apr-17, 104.5 Jul-16 USD Oct-16 GBP Jan-17 Apr-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Success… seems to be connected with action. Successful people keep moving. They make mistakes, but they don’t quit." Conrad Hilton Chart of the Day Pakistan's Trade Snapshot (9MFY11-9MFY17) 40 30 20 29.016 33.285 17.727 33.414 33.038 33.998 19.082 17.19 18.017 -16.095 -15.397 38.504 32.49 17.931 15.606 15.119 10 0 -10 -20 -30 -11.289 -13.956 -16.067 -16.884 -23.385 9MFY11 9MFY12 9MFY13 Imports 9MFY14 Exports Value in $ Bn 9MFY15 9MFY16 9MFY17 Trade Balance Source: KCCI Research, PBS 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