Pakistan Daily Economy Update - 15 April

Transcription

1. Apr . 15, 2017 KCCI - eBulletin Constitution empowers me to cease gas supplies to other provinces: CM Sindh CM Murad Ali Shah has said that constitution of Pakistan has empowered him to provide natural gas to the people of the province first and then share it with other provinces, if it is in surplus. Terming the SSGC’s statement about provision of bank guarantee as an absurd demand, CM said that these guarantees are submitted once agreement is signed. BR. Chinese textile units interested in relocating to Pakistan Tianjin Peoples Association for Friendship with Foreign Countries Vice President Chen Weiming has said that high cost of doing business and environmental challenges in China have made Pakistan an ideal destination for the relocation of Chinese textile industry. The aim is multidisciplinary, multiple-format, diversified development of modern textile enterprises in the future. Tribune. K-Electric asked not to send excess bills to consumers without power theft proof The Standing Committee of Senate on Water and Power has asked the KE utility of the city that in future it should not send electricity bills to any consumer having surplus amount as a case of penalty, without attaching with it concrete proof of power theft by the supposed guilty consumer. The senators also protested that federal authorities were meting out step motherly treatment to Sindh as far as electricity issues of the province were concerned as, people of the province had to endure power load shedding of up to 20 hours a day. The News. PM’s package for exporters: scope of DLTL expanded Economic Co-ordination Committee (ECC) has expanded scope of Drawback of Local Taxes and Levies (DLTL) extended under exporters’ incentive package. The deadline for submission of export shipment claims has been extended from 90 days to 120 days after every shipment. Furthermore, inclusion of certain finished leather projects has also been approved in the DLTL order. In pursuance to the ECC decision, Commerce Ministry has issued DLTL (Non-Textile) Order, allowing drawback on shipments made from Jan. 16, 2017 to Jun. 30, 2017. BR. Govt. to amend tax laws to net foreign franchises The Govt. is mulling a change in the taxation laws to bring foreign brands, operating through franchise/liaison office in the country, into the tax net. At present a number of famous foreign brands are available in the country through a marketing and distribution network of local dealer or agent. Liaison or auxiliary offices of foreign entities are excluded from the present definition of permanent establishment (PE) and are not bound to get registered with the tax authorities. The News. SBP signs pact with Iranian bank In a major move to establish banking channel for trade, SBP has signed an agreement with Bank Markazi Jomhouri Islami Iran for Banking and Payment Arrangement (BPA). The objective of the BPA is to provide a trade settlement mechanism to promote trade between Pakistan and Iran. This mechanism will be used for payment of trade conducted via letter of credit (LC) and in accordance with international laws and regulations. In the next step, both the central banks will invite banks in their respective jurisdictions to act as authorized banks for undertaking trade transactions under the BPA. BR. LSM sector shows 4.51% growth in Jul.’16-Feb.’17 The country's Large Scale Manufacturing (LSM) sector has shown 4.51% growth during 8MFY17 as compared to same period last year. BR. For Dasu: WAPDA to raise $ 350Mn from global capital market Wapda is poised to enter the international capital market for the first time in a bid to raise $ 350Mn to finance the construction of 4,320MW Dasu hydroelectric power project. Wapda is engaged in negotiations with different financiers to secure critical funds. In order to reassure potential investors, Wapda requires guarantees of the govt. of Pakistan. The World Bank is to give a partial credit guarantee of $ 210Mn and Pakistan govt. would offer a counter-guarantee to the Bank. Tribune. Wind power projects: Sindh approaches Nepra for upfront tariff Sindh govt. has approached Nepra for determination of upfront tariff and review of benchmark tariff for wind power projects. The Department has requested the Authority that the competitive bidding process be limited to solicited project proposals only and an upfront tariff may be determined for unsolicited projects, in line with the Renewable Energy Power Generation Policy 2006. Out of the thirty-five wind power projects initiated by Sindh govt. only two solicited sites are eligible to be considered for competitive bidding pursuant to the new tariff after confirmation of grid interconnection. BR. Ghandhara Nissan signs agreement with Chinese automaker Ghandhara Nissan Limited (GHNL) has signed a joint venture agreement with Chinese JAC Motors for the import, assembly, and distribution of X200 light trucks in Pakistan. GHNL’s stock price hit the upper limit after the announcement; the stock opened at PKR 262.10 and ended the day at PKR 274.59. Tribune. Pakistan, Ukraine to join hands in curbing corruption: envoy Pakistan and Ukraine have principally agreed to join hands to ensure good governance, transparency, and to curb corrupt practices in the govt. system. Ukrainian Ambassador to Pakistan, Volodymyr Lakomov has said the NAB and National Anti-Corruption Bureau of Ukraine (NABU) would soon sign an MoU to check corruption by employing modern digital technology. Both countries would take benefit from eachother’s experiences and techniques, as the Ukrainian govt. employees are accountable to the public. The News. Pakistan, Ukraine to join hands in curbing corruption: envoy Pakistan and Ukraine have principally agreed to join hands to ensure good governance, transparency, and to curb corrupt practices in the govt. system. Ukrainian Ambassador to Pakistan, Volodymyr Lakomov has said the NAB and National Anti-Corruption Bureau of Ukraine (NABU) would soon sign an MoU to check corruption by employing modern digital technology. Both countries would take benefit from eachother’s experiences and techniques, as the Ukrainian govt. employees are accountable to the public. The News. PKR 9Bn credit for Sialkot-Lahore motorway approved In a meeting presided over by Finance Minister Ishaq Dar, ECC has approved issuance of PKR 9Bn standby credit for the SialkotLahore motorway on build-operate-transfer basis at an estimated cost of PKR 45.4Bn. Under the agreement signed by the National Highway Authority (NHA) with a project company wholly owned by the Frontier Works Organization (FWO), the govt. of Pakistan is required to arrange PKR 18Bn, FWO is required to arrange about PKR 21Bn, while NHA has to provide PKR 1.6Bn as overhead expenses and PKR 5Bn as loan. Dawn. PQ power plant to start in June 2018 Port Qasim Electric Power Company’s 1320 MW (2x660) coal-fired electricity generation plant will start its commercial operation in June 2018 with an estimated cost of $ 1.98Bn. About 65% percent work on the project has been completed. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 14-Apr 14-Apr 14-Apr 14-Apr 12-Apr 12-Apr 14-Apr 12-Apr 14-Apr 14-Apr PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.87 106.10 47,577 -0.64 53.28 1,286 43,885 18.47 7,234 6.16% 7-Apr $ Bn 21.74 0.00% -0.42% -0.78% NM** -0.93% 0.97% 0.00% 0.90% 0.00% -0.01% 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, 14-Apr-17, 131.4 EUR, 14-Apr-17, 111.4 USD, 14-Apr-17, 105.0 Jul-16 USD Oct-16 GBP Jan-17 Apr-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day “There are two ways of exerting one’s strength: one is pushing down, the other is pulling up.” Booker T. Washington Chart of the Day 600 550 500 450 400 350 300 250 200 150 Biggest Companies in the World 482 330 299 294 272 246 * Ranking in terms of revenue; Amount in Bn for 2016 237 237 234 226 Source: KCCI Research; Forbes 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