Pakistan Daily Economy Update - 14 March

Transcription

1. Mar . 14, 2018 KCCI - eBulletin Sindh CM launches $ 98Mn World Bank-assisted project to make Karachi 'livable' CM Sindh Murad Ali Shah, while addressing the launching ceremony of Educational and Cultural Zone – Saddar under the World Bank-assisted Karachi neighborhood improvement project (KNIP), said that the objective of the Karachi Transformation Strategy (KTS) is to improve the city’s physical and socio-economic infrastructure and services delivery in water supply and sanitation, transportation, urban spaces, and institutional strengthening and transformation. The cost of the project is $ 98Mn, in which the World Bank’s share is $ 86Mn, while the provincial govt. will provide $12 Mn. The project involves the improvement of public spaces and mobility in three select neighborhoods comprising the revitalization of the Saddar downtown area, Malir and Korangi. Tribune. Many international firms eyeing Pakistan as major investment destination: Bruno Pakistan is becoming attractive investment destination on the radar of almost all international companies due to prevailing huge potential which is not being fully harnessed due to political uncertainty and negative perception. Bruno Olierhoek, President of Overseas Investors said that Pakistan is operating at its 20-25% potential despite huge prevailing potential. Foreign investors want consistency and continuation of policies, and transparency and implementation of policies are main concerns of foreign investors. Daily Times. Ant Financial to invest $ 184.5Mn for 45% stake in TMB Telenor Group has reached a strategic partnership agreement with Ant Financial Services Group,an affiliate of Chinese e-commerce giant Alibaba, in Pakistan. Ant Financial Services Group will invest $ 184.5Mn for 45% stake in Telenor Microfinance Bank (TMB), a subsidiary of Telenor Group, to further develop mobile payment and digital financial services. An agreement has been signed to bring mobile payment and inclusive financial services to individuals as well as small and micro-businesses in Pakistan through Telenor Microfinance Bank Limited. BR. SRB to cancel 4,200 sales tax registrations on non-compliance Sindh Revenue Board (SRB) has decided to cancel sales tax registration of more than 4,200 taxpayers who were unable to file their returns. The SRB also suspended sales tax registration of 4,338 taxpayers for non-filing of monthly returns and failure to discharge their liabilities on 25th Jul’17. Of these, around 100 taxpayers had responded to the notices and got their registration restored while most of them failed to fulfill the requirements despite repeated notices. The News. SBP develops new method of measuring core inflation State Bank of Pakistan (SBP) has developed a new method “Relatively Stable Component of CPI (RSC-CPI)” for measurement of core inflation by permanently excluding relatively volatile commodities from Consumer Price Index (CPI) basket. Commodities that were trimmed out more than 13 times during Jul.’08 to Feb.’13 have been permanently excluded from the CPI basket. The In this new method, SBP’s RSC-CPI include fifty commodities with a weight of 67.69. BR. Power surcharges run into challenges With the circular debt stock rising beyond PKR 1Tn, private stakeholders have challenged the govt. move to impose PKR 1.55/unit surcharge on electricity tariff for covering PKR 110Bn losses allegedly caused by inefficiencies of power companies. One of a textile miller has challenged the financing cost surcharge on the premise that Nepra itself had disallowed putting additional burden of accumulated circular debt on honest and paying consumers for inefficiencies of the govt. and its companies. Dawn. \ Iran repeats offer to meet energy needs Economic Indicators List of Indicators Date / Period Unit Value Change Daily 13-Mar 110.58 111.55 0.16% -0.53% Crude (MY'18) 13-Mar 13-Mar 13-Mar 13-Mar PKR PKR Pts. $ Mn $/bbl 43,618 1.40 60.94 0.48% NM** -0.65% Gold (AP'18) Gold (10g) Local 13-Mar 13-Mar $/oz PKR 1,326.6 48,385 0.23% -0.09% Silver (AP'18) Cotton(KHI)-40 kg 13-Mar 13-Mar $/oz PKR 16.56 7,931 0.34% 0.00% Kibor-6M 13-Mar % 6.46 $ Bn 18.33 0.00% WoW -0.46% Remittances 2-Mar FY18 Jul-Feb 18 $ Bn 12.83 YoY 3.41% Exports* Imports* Jul-Feb 18 Jul-Feb 18 $ Bn $ Bn 14.85 39.13 11.66% 17.19% Jul-Feb 18 Trade Balance* $ Bn -24.28 Jul-Jan 18 Current Account $ Mn -9,156 Foreign Direct Inv. $ Bn 1.49 Jul-Jan 18 Jul-Dec 17 LSM Growth* % 5.55 % 3.84 Jul-Feb 18 Avg. CPI Discount Rate % 6.00 Jan-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -20.85% -48.11% -2.94% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Major Currencies 165 GBP, 12-Mar-18, 153.5 155 145 135 EUR, 12-Mar-18, 136.3 125 115 105 Domestic debts rise 6% to PKR 15.8Tn The central govt’s domestic debt increased by PKR 947Bn in 7MFY18, State Bank of Pakistan reported on Tuesday. It rose to PKR 15.79Tn in Jan.’18, up 6.3%, from PKR 14.85Tn in Jun.’17. Permanent debt has declined by PKR 490Bn to reach PKR 5.04Tn during the period under review, whereas all other kinds of debts showed a rise. A major decline under the head of permanent debt has been recorded in Pakistan Investment Bonds (PIBs) which fell to PKR 3.85Tn in Jan.’17 from PKR 4.39Tn in Jun.’17. Dawn. No security clearance yet for Chinese firm working on Gwadar port A parliamentary panel has ordered the launch of a probe to determine the real origin of a Chinese company that is developing the ‘pearl’ of CPEC, after the govt. admitted that the company did not have the security clearance to work in Pakistan. The Ministry of Interior has not yet issued a security clearance certificate to China Overseas Ports Holding Private Limited Company (COPHC-Pakistan) that is building and operating Gwadar deep-sea port, said the SECP Executive Director. He was speaking before the National Assembly Standing Committee on Finance that met to discuss the registration of COPHC-Pakistan. Tribune. Jun-17 GBP EUR Sep-17 Dec-17 Source: KCCI Research ; Oanda.com Quote of the Day "There are three ingredients in the good life: learning, earning and yearning." Christopher Morley Iranian Foreign Minister Dr Javad Zarif has reiterated his offer for meeting Pakistan’s electricity demand calling his country a “reliable source” for its neighbor to get energy resources. The Iranian foreign minister held meetings with prominent businessmen of Pakistan and highlighted the economic potential of Iran and the opportunities for joint ventures with other countries. He said that businessmen from both countries could strike deals in sectors like energy, science and technology, infrastructure, chemicals and human resources development. Dawn. Joint manufacturing: Chinese delegation hunts for local partners A delegation of Chinese companies from Lanzhou, China has expressed keen interest in finding local partners for joint manufacturing of engineering goods and energy-efficient vehicles in Pakistan. During a meeting with businessmen, the delegation members highlighted escalators and elevators as the possible products that could be manufactured. Tribune. USD, 12-Mar-18, 110.6 95 Mar-17 USD Chart of the Day FBR Tax Collection (1HFY09 - 1HFY18) 1,730 1,800 1,600 1,371 1,400 1,172 1,200 1,031 1,000 800 600 1,472 841 554 582 889 662 400 200 0 Source: KCCI Research, SBP Values in PKR Bn 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