Pakistan Daily Economy Update - 14 March

Transcription

1. Mar . 14, 2017 KCCI - eBulletin Jul-Feb 17 Remittances $ Bn 12.36 Jul-Feb 17 Exports* $ Bn 13.32 Jul-Feb 17 Imports* $ Bn 33.52 Jul-Feb 17 Trade Balance* $ Bn -20.20 Jul-Jan 17 Current Account $ Mn -4,716 % 3.85 Avg. CPI-FY17* Jul-Feb 17 Jan-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 Mar-16 GBP, 13-Mar-17, 126.4 EUR, 13-Mar-17, 110.6 USD, 13-Mar-17, 103.6 Jun-16 USD Sep-16 GBP Dec-16 Mar-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "As we look ahead into the next century, leaders will be those who empower others." Bill Gates Services exports rise 14% Pakistan’s exports of services witnessed growth of nearly 14% YoY to $ 37.71Mn in Jan‘17. In the 7MFY17, exports of services fell 10.30% to $ 2.89Bn. However the import of services increased 2.48% to $ 4.88Bn in 7MFY17. The trade deficit in services increased 29.36% to $1.98Bn during 7MFY17 compared to last year. Dawn. 15.1 13.3 25.6 PAKISTAN'S TRADE SNAPSHOT (8MFY11 8MFY17) 33.5 Chart of the Day 15.3 ADB agrees to finance Red Line BRT project ADB has agreed to finance and support the Red Line Bus Rapid Transit (BRT) project starting from Manghopir to Numaish areas. A committee has been constituted to shape up the financial and technical support in this regard. Sindh Chief Minister has met an ADB delegation led by its Country Director and discussed enhancement of public-private partnership on different projects. Dawn. 22.15 Forex Reserves 28.9 Sindh Assembly passes transparency, right to information bill The provincial assembly has passed The Sindh Transparency and Right to Information Bill, 2016 providing transparency and access to information to every citizen in matters of public importance. After the commencement of the act, the government would establish a Sindh Information Commission within 100 days. The assembly also constituted a body to monitor the performance of K-Electric and question its management about ‘fleecing’ people by not installing ‘Time of Usage’ (ToU) meters for billing and similar other complaints. Dawn. $ Bn Crude (MY'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 13.9 SBP downplays rising trade deficit SBP Governor has expressed little concern about Pakistan’s soaring trade deficit. The Governor said that the import included $ 6Bn of capital goods. These machines will help increase exports and reduce the deficit. Dawn. 3-Mar 0.05% 0.14% -1.09% NM** 0.00% 0.17% 0.00% -0.21% -0.22% 0.00% WoW 1.50% YoY -2.52% -3.90% 15.99% -34.33% -90.24% 30.5 Directive to submit foreign travel policy: SBP asks banks to do more to combat money laundering State Bank of Pakistan (SBP) has asked all the commercial banks to submit their foreign travel policy in 90 days. Furthermore, SBP in its meeting with heads of banks, has also directed them to put more specific guidance, policies and procedures in place to address the overall risks of trade-based money laundering. BR. Change Daily 104.85 106.50 48,656 3.38 48.97 1,205 42,857 16.96 7,272 6.13% 16.0 Thar-coal projects: Nepra decides to re-determine tariff Nepra has decided to re-determine tariff for upcoming Thar-coal power projects as the duration for upfront tariff has expired. In this regard, the authority has initiated sou moto proceedings for the development of new tariff for Thar Coal Based Power Projects. There are unconfirmed reports that Nepra is considering reducing Return on Equity (RoE) to 13% for upcoming Thar coal power projects but officials claim that the Authority has no such plan. BR. Value PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 29.4 PPIB-IPPs meeting remains inconclusive A scheduled meeting between the IPPs and Private Power Infrastructure Board (PPIB) has remained inconclusive as the govt. has not committed to pay more to the IPPs, after private sector power generation plants served sovereign guarantee notices in accordance with Power Purchase Agreements (PPAs). Water and Power Ministry has already paid PKR 30Bn to IPPs raised from the commercial banks in the name of Central Power Purchasing Agency Guaranteed (CPPA-G) against their demand of PKR 52Bn. However, IPPs claim that their legitimate verified claims have touched PKR 254Bn as on Feb. 15, 2017. BR. Unit 13-Mar 13-Mar 13-Mar 13-Mar 13-Mar 13-Mar 13-Mar 13-Mar 13-Mar 13-Mar 16.9 Murad briefed on K-IV and Lyari Expressway work In a meeting to review progress on the K-IV and Lyari Expressway, Chief Minister Murad Ali Shah has directed the Frontier Work Organization (FWO) and K-IV bulk water supply officials to expedite their work so that the Karachi's consumers could receive greater water supply in 2018. In this regard, Chief Minister was informed that out of 32.61km embankment of the project, 29km have been completed. Furthermore, elevated structure 1 from Sindhi Hotel to Teen Hatti has been completed 85% while work elevated structure from Manghopir to Mewashah has been done by 65%. BR. Date / Period 29.1 Punjab taking steps to benefit from CPEC’s western route The Punjab govt. has started positioning the province to benefit from the western route of CPEC by devising a strategy to leverage the four-lane highway for development of backward areas in its vicinity and proximity. On the other hand, the other provincial govt. are looking towards the federal administration to formulate similar policies. Punjab CM has constituted an elaborate interministerial committee to firm up a way forward by deliberating upon a working paper to draw maximum benefits from the western corridor. It will present its report to him by 30th Apr’17. The News. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 15.9 Census faces credibility issue Population census exercise which is scheduled to begin on Mar. 15, 2017 (tomorrow), is facing a serious credibility issue prompting the federal govt. and the armed forces to promise verified and credible data. The population accounts for 94% of the National Finance Commission (NFC) award and any change in the share of any province in total population would have ramifications on distribution of resources. BR. Economic Indicators 29.8 Revenue generation: Taxation of e-commerce to be considered in budget The taxation of e-commerce would be considered in the budget (2017-18) as a revenue generation measure of the FBR. In this regard, FBR has submitted instructions to the chief commissioners for compilation of budget proposals including taxation of ecommerce in coming budget. The idea of Tax Policy Conference is a new concept in the FBR during budget preparation exercise. BR. Value 8MFY11 8MFY12 8MFY13 8MFY14 8MFY15 8MFY16 -20.2 -15.0 -14.5 -12.5 -13.2 -14.7 Sindh sets wheat procurement target at 1.2MT The Sindh Food Department has been set the wheat procurement target at 1.2Mn tons in the province, and purchasing would start from 15th Mar’17. The procurement price of PKR 1,300 per 40Kg has been set, while 468 procurement centers would be opened in the province. The News. -10.3 Customs to revive examination-free import of vehicles up to 1800cc Pakistan Customs has agreed to revive the status of examination free import of vehicles up to 1800cc. The examination of vehicles was causing unnecessary hardship for clearing agents; as such vehicles were being cleared on the clearing agents’ profile. The News. 8MFY17 Govt urged to implement uniform tax system Exports ($ Bn) Imports ($ Bn) Trade Balance ($ Bn) Speakers at a pre-budget seminar have said that the government should ensure uniformity across federal and provincial tax laws Source: KCCI Research, PBS and also introduce common registration number along with single tax return form. The speakers viewed the current the current taxation system as “self-defeating” as they believed it lacked all the necessary ingredients which could help promote tax culture. Disclaimer Dawn. 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 Lucky Cement inaugurates fifth WHR plant sources believed to be reliable and in good faith. Such information has not been Lucky Cement Limited inaugurated its fifth Waste Heat Recovery (WHR) plant on Monday in Pezu, KP which will generate power up independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' to 10MW. The project, which utilized two cement production lines with a daily output of 2,400 tons, has been set up in understanding of the news item. The R&D Dept. bears no responsibility for its correctness or collaboration with China’s Sinoma Energy Conservation Limited. Tribune. accuracy. Contact: res@kcci.com.pk