Pakistan Daily Economy Update - 14 December

Transcription

1. Dec . 14, 2016 KCCI - eBulletin Prime Minister to open western corridor today Prime Minister Nawaz Sharif will inaugurate western corridor of CPEC Sorab, Hoshab (449km) on Dec. 14, 2016 (today) which has been completed with the cost of PKR 22Bn. The western route is passing through less developed areas of KPK and Balochistan and with the completion of this route, people living in these areas would have more employment opportunities. BR. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank 13-Dec PKR 104.84 0.02% Aziz explains structuring of CPEC loans Foreign affairs’ advisor Sartaj Aziz, while inaugurating the 32nd Annual General Meeting and Conference of the Pakistan Society of Development Economists (PSDE) on CPEC, has said that CPEC loans for infrastructure are at the rate of 2% mark-up and the payback time is 20 to 25 years. He further said that many of the multidimensional power projects under the CPEC are under the implementation phase, which will add about 17,000MWs of electricity to the national grid. About 6,000 to 7,000MWs would come to the system in the next two years. BR. USD-Open MKT 13-Dec PKR 107.30 2.78% KSE-100 index FIPI 13-Dec 13-Dec Pts. $ Mn 45,858 -22.54 1.04% NM** Crude (FE'17) 13-Dec $/bbl 53.82 0.99% Gold (JA'16) 13-Dec $/oz 1,159 -0.26% Trade deficit widened 20% in July-Nov The trade deficit in merchandise rose nearly 20% on-year to $ 11.77Bn in 5MFY17, the gap during the comparative period of last year was $ 9.8Bn. According to the PBS, the deficit stood at $ 2.49Bn in Nov’16, a rise of 14.3% compared to $2.18Bn in Nov’15. In 5MFY17, the overall import bill rose 8.8% YoY to $ 19.96Bn. In Nov’16, it increased 10.8% to $ 4.25Bn. While, export proceeds fell 3.93% to $ 8.18Bn in 5MFY17. However, in Nov’16, export proceeds grew 6.21%. Tribune. Gold (10g) Local 13-Dec PKR 42,685 -0.40% Silver (JA'17) 13-Dec $/oz 16.94 -0.98% Cotton(KHI)-40 kg 13-Dec PKR 6,843 1.35% Kibor-6M 13-Dec % 6.13% -0.01% ADB maintains FY17 growth forecast at 5.2% The Asian Development Bank (ADB) has maintained its growth forecast for Pakistan’s economy at 5.2% for FY17. According to the Asian Development Outlook (ADO) 2016 Update report, in Pakistan, GDP growth is expected to be on track in FY2017, driven mainly by the services sector, improved energy supply and security, a rising investment in CPEC. The News. Forex Reserves 2-Dec $ Bn 23.34 -1.10% Remittances Jul-Nov 16 $ Bn 7.87 -2.50% External debt servicing reaches $ 1.5Bn in 1QFY17 The country's external debt servicing has reached $ 1.5Bn at the end of 1QFY17 as against the debt servicing of $ 1.34Bn in the corresponding period of FY16, depicting an increase of $ 210Mn. During the period under review, total external debt servicing includes $ 660Mn of principal amount, $ 289Mn interest payment and $ 597Mn of short-term debt serving. Category-wise analysis showed that an amount of $ 1.32Bn has been spent on debt servicing (including principal and interest) of public debt during 1QFY17 compared to $ 1.13Bn in 1QFY16. Debt servicing under the private sector fell to $ 107Mn at the end of first quarter of this fiscal year compared to $123 Mn in the same period of last fiscal year declined by 13%. BR. Exports* Jul-Nov 16 $ Bn 8.19 -3.93% Imports* Jul-Nov 16 $ Bn 19.96 8.83% Trade Balance* Jul-Nov 16 $ Bn -11.78 -19.90% Current Account Avg. CPI-FY17* Jul-Oct 16 Jul-Nov 16 $ Mn % -1,762 3.92 -63.45% ECC meeting: Govt. keeps wheat support price at last year’s level The Economic Coordination Committee (ECC) of the Cabinet has decided to keep the wheat support price at last year’s level of PKR 1,300 per 40Kg, which is almost double than the price in the international market. The contracts in international market were signed at around PKR 714 per 40 kg on 13th Dec’16. However, it will keep the overall inflation rate under check as a 10% increase in wheat prices causes 3% increase in overall inflation rate. The ECC also approved an extension in the date of wheat export from 30th Nov to 31st Dec’16. Tribune. PPIB gives go-ahead for Hubco’s 330MW project The Private Power and Infrastructure Board (PPIB) has given a green signal to Hub Power Company Limited (Hubco) to go ahead with its plan to set up a 330MW coal-fired power plant in Thar, Sindh. Hubco would take supply of coal from Sindh Engro Coal Mining Company (SECMC), as the power company has stakes in the mining project. The Hub Power Company has injected $ 20Mn equity in the SECMC mining project. In addition to this, the power company is also setting up two 660MW imported coal-based power plants worth $ 1.8Bn in Hub, Balochistan. Tribune. Corporate results: From loss-making to profitable, SNGPL turns things around The Sui Northern Gas Pipeline Limited (SNGPL) has reported a profit of PKR 124Mn (EPS: PKR 0.20) in FY16 against a loss of PKR 2.4Bn (EPS: PKR 3.93) in FY15. Tribune. Investors seek licenses to set up 200MW solar plants Four investors have applied with the power regulator for licences to set up 200MW solar electricity generational plants in Sindh. The projects are to invite an estimated $ 310Mn in investment. Oursons Pakistan Limited, Helios Power Pvt Ltd, Meridian Energy Pvt Ltd and HNDS Energy Pvt Ltd – all local investors – are in the process of developing solar power generation facilities of 50MW each in different districts of the province. The News. 60% Khairpur SEZ plots sold to Chinese Provincial Minister for Industries and Commerce has disclosed that 60% of industrial plots at the Khairpur Special Economic Zone (SEZ), now said to be a part of the CPEC, have been sold to Chinese investors. The minister said the special industrial zones in Larkana and Mohanjedaro are expected to be inaugurated in Jan‘17. Similarly, Dhabejee, Karachi Circular Railways, Zulfikarabad Industrial Estate and Marble City have become part of the CPEC. Dawn. Car sales drop 5% Car sales dropped 5% year-on-year to 71,877 units in the Jul-Nov‘16 period, though they posted an increase in Nov‘16 alone, according to auto makers. Toyota Corolla’s sales, hit by the introduction of Honda Civic’s new model, fell 7.5% YoY to 21,628 units in July-Nov. By contrast, combined sales of Honda Civic and City jumped 48% to 14,155 units. Suzuki Swift sales were almost steady at 1,789 compared to 1,728 units sold in the five-month period of last year. In the 1,000cc category, sales of Suzuki Cultus fell 7.5% to 5,805 units while sales of Suzuki WagonR skyrocketed 84% to 6,183. Dawn. List of Indicators WoW YoY Nov-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 125 115 95 85 75 Dec-15 Mar-16 USD Jun-16 GBP Sep-16 Dec-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day “Never give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine" Jack Ma Chart of the Day World Oil Demand Forecast 35 30 25 Pakistan-India water dispute: World Bank pauses arbitration The World Bank Group has announced a pause in the separate processes initiated by India and Pakistan under the Indus Waters Treaty to allow the two countries to consider alternative ways to resolve their disagreements. The announcement temporarily halts the appointment of a Neutral Expert, as requested by India, and the Chairman of the Court of Arbitration, as requested by Pakistan. Both processes initiated by the respective countries were advancing at the same time, creating a risk of contradictory outcomes that could potentially endanger the Treaty. BR. 10 Pakistan ranks below most regional countries in property rights index Pakistan ranks 121 out of 128 countries in the International Property Rights Index (IPRI) 2016 Report. Among the regional countries it ranks below China, India, Iran, Sri Lanka, and Nepal. Only Myanmar and Bangladesh are ranked below. The report states that a strong property rights regime commands the confidence of people in its effectiveness to protect private property rights. It also provides for unified transactions related to registering property and allows access to credit necessary to convert property into capital. The News. EUR, 13-Dec-16, 111.2 USD, 13-Dec-16, 104.6 105 PSM to be privatized in three months: National Assembly panel told Chief Executive Officer (CEO) Pakistan Steel Mills Corporation (PSM) has informed the senate standing committee that PSM would be privatized within three months. He further informed that the corporation has been turned into a profitable entity, which earned a profit of PKR 3Mn in 1QFY17. The committee reviewed the audit reports of the ministry of industries and production for year 2009-10 and directed to recover the receivables from the National Industrial Park. BR. Islamabad decides to enter into new lease GPA with PPL The federal govt. has decided to enter into a new Gas Pricing Agreement (GPA) with PPL from Jun. 1, 2015 for extension in mining lease. Both the federal and provincial govts have agreed to indexation of Sui wellhead gas price at 55% from existing 50% of 2012 policy price with lease extension bonus at 10% of the wellhead value. The estimated financial impact on consumer pricing would be PKR 14.4Bn for FY16 whereas for FY17; financial impact would be PKR 10.9Bn (approx. 4.2% across the board increase). BR. GBP, 13-Dec-16, 132.7 135 20 24.8 24.6 5.00% 12.55 7.97 4.00% 8.02 13.87 13.73 15 7.99 12.04 11.23 4.66 6.47 4.1 6.56 8.03 10.95 3.99 5 0.7 4.62 0.67 0 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% Mn Barrel/Day 2015 2016(F) % Change Source: KCCI Research, OPEC 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