Pakistan Daily Economy Update - 15 February

Transcription

1. Feb 14-15 , 2021 KCCI - eBulletin Governor hands over 50 fire tenders, two water bowsers to KMC Governor Sindh Imran Ismail has gifted 50 fire tenders, two water bowsers to KMC. In the ceremony, 24 fire tenders had been handed over to KMC and 2 boswers, Two to Korangi Association of Trade and Industry, two to North Karachi Association of Trade and Industry, two to Federal B Area Association of Trade and Industry, two Site association of Industry, two Landhi Association of Trade and Industry, two Export Processing Zone Authority, two Bin Qasim Industry Park, two Seelani Welfare Trust and two Pakistan Rangers fire tenders. While, one was given to Korangi Creek Industrial park and one to Karachi Chamber of Commerce and Industry (KCCI). BR-Mon. FBR to expedite steps against trade of counterfeit, smuggled cigarettes The Chairman FBR has issued directives to expedite the administrative and enforcement measures against the trade of counterfeit, non-duty paid and smuggled cigarettes. Resultantly, 7MFY21, the IREN network conducted 65 raids across the country to curb the trade of counterfeit/non duty paid cigarettes. In aforesaid raids, 44.827Mn counterfeit cigarettes sticks were confiscated which were worth amounting to PKR. 97.507Mn. Revenue amounting to PKR. 95.678/- was involved in aforesaid confiscated counterfeit cigarettes out of which PKR. 2.2Mn are recovered and for remaining, mandatory legal proceedings are underway. BR-Mon. Penalty imposed on sugar mills FBR has imposed a penalty of PKR 1Mn each on those sugar mills, which failed to install high-tech video cameras on their production lines by 31st Jan’21. In this connection, the FBR has started issuing penalty orders to the sugar mills. BR-Mon. Afghan transit goods: MoC directs FBR to allow unhindered facilitation Ministry of Commerce (MoC) has reportedly issued instructions to FBR for unhindered facilitation of Afghanistan destined consignments under Afghanistan Pakistan Transit Trade Agreement (APTTA) as the Federal Cabinet has approved a three-month extension in the pact. The formal transit pact between Pakistan and Afghanistan expired on 11th Feb’21 but both sides have not yet agreed on the new draft of the agreement, due to some "unreasonable" demands by the other side. BR-Mon. 20 items contribute 33% to PKR 1.136Tn revenue collection: FBR Twenty products, including POL (petrol, diesel and lubricants), natural gas, palm oil, bituminous coal and polypropylene contributed PKR 365Bn (33%) to total revenue proceeds during 7MFY21. Collection of duty and taxes at import stage posted a 6% growth to PKR 1.14Tn during 7MFY21 against PKR 1.08Tn over 7MFY20. Customs collection from the 20 products increased 8.4% to PKR 116.72Bn against PKR 116.72Bn over 7MFY20. Dawn-Sun. FBR told to act against non-compliant withholding agents Federal Tax Ombudsman Mushtaq Ahmad Sukhera has directed FBR to initiate and finalize proceedings against non-compliant withholding agents under the Income. Total number of withholding agents is 11,723 and 6,406 of them are not on the tax roll. DawnMon. PTA asks FBR to stop import of GSM amplifiers, boosters Pakistan Telecommunication Authority (PTA) has asked FBR to stop the import of GSM amplifiers and boosters by all licensees or nonlicensees entities as its import and use is only confined to licensed Cellular Mobile Operators (CMOs) Industry. The use of substandard GSM boosters, amplifiers and repeaters is strictly prohibited and there are a number of complaints with PTA that these instruments have been installed by mobile users themselves, which resulted in interference in CMOs frequency bands and disturbing the mobile phone services. BR-Mon. Tax Laws Amendment Ord 2021 promulgated The govt. has promulgated Tax Laws Amendment Ordinance 2021 to introduce measures to facilitate non-resident Pakistanis to open non-resident Pakistani Rupee Value Accounts (NRVAs); extended 4% super tax on banks indefinitely beyond the TY21; imposed withholding tax (PKR 50,000-PKR 200,000) on persons who sell locally manufactured vehicles within 90 days of delivery of such vehicles and offered tax exemptions for the electric vehicles. BR-Mon. OGRA recommends PKR 16 per litre hike in POL prices \ Ogra has recommended the govt. to increase the price of petrol by up to PKR 16 / litre from 16th Feb’21 in view of the global rise in Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 12-Feb 12-Feb PKR PKR 158.82 158.95 -0.16% -0.41% KSE-100 index FIPI 12-Feb 12-Feb Pts. $ Mn 45,808 1.59 -0.54% NM** Crude (AP'19) 12-Feb $/bbl 59.47 2.11% Gold (MA'19) 12-Feb $/oz 1,823.2 -0.20% Gold (10g) Local 12-Feb PKR 93,020 0.00% Silver (MA'19) 12-Feb $/oz 27.33 1.04% Cotton(KHI)-40 kg 12-Feb PKR 11,789 0.92% Kibor-6M 12-Feb % 7.57 0.00% 4-Feb $ Bn 20.07 WoW -0.44% Remittances Jul-Dec 20 $ Bn 14.20 24.89% Exports* Jul-Jan 21 $ Bn 14.24 5.53% Imports* Jul-Jan 21 $ Bn 29.21 6.92% Trade Balance* Jul-Jan 21 $ Bn -14.96 -8.27% Current Account Foreign Direct Inv. Jul-Dec 20 Jul-Dec 20 $ Bn $ Bn 1.13 0.95 155.66% -29.82% Forex Reserves YoY Jul-Dec 20 LSM Growth* % 8.16 % 8.19 Jul-Jan 21 Avg. CPI Discount Rate % 7.00 Jul-20 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 235 GBP, 14-Feb-21, 220.1 225 215 205 195 EUR, 14-Feb-21, 192.6 185 175 165 155 USD, 14-Feb-21, 145 USD Feb-20 GBP May-20 EUR Aug-20 158.9 Source: KCCI Research ; Oanda.com Nov-20 “Success is not how high you have climbed, but how you make a positive difference to the world.” Roy T. Bennett the prices of petroleum products. Industry officials claim that that the increase would not be over PKR 3/litre. Tribune-Sun. Services trade deficit shrinks 42.41% The country’s services trade deficit has contracted by 42.41% to $ 977.24Mn during 1HFY21 as compared to $ 1,696.80Mn 1HFY20. Services exports were recorded at $ 2,844.12Mn while the imports were recorded at $ 3,821.36Mn. The Nation-Sun. Customs slashes yarn valuation to encourage imports Customs authority has lowered the valuation of metallic yarn and the Directorate General of Customs Valuation issued the revised valuation ruling earlier this week for determination of duty and taxes at the time of consignment clearance. Previously, the custom value was fixed at $ 7/kg. As per the latest revision, the values have been reduced to $ 5.45/kg, $ 6/kg and $ 5.05/kg on import from UAE, Japan and other regions, respectively. However, the directorate maintained the customs value of the commodity on import from China at $ 4/kg. However, customs value on import from India has been deleted due to imposition of import ban. The News-Sun. Construction sector borrows PKR 88Bn in Jul-Dec Construction sector has borrowed PKR 88Bn from banking institutions during 1HFY21, showing 44% growth over 1HFY20, as the tax incentives and lower interest rate encouraged participation in real estate. A regulatory change by the SBP wherein banks are required to lend 5% of their advances to construction sector will also result in higher borrowing by the construction sector. The News-Sun. IT exports surge by 40% The country’s IT sector exports have registered a 40% increase during 1HFY21, said the performance report of Pakistan Software Export Board. ICT export remittances, including export of telecommunication, computer and information services, have surged to $ 958Mn at a growth rate of 40%, in comparison to $ 684Mn during 1HFY20. The Nation-Sun. Import of new cars surges three times in 1HFY21 There was a 196% hike in imports of completely built-up (CBU) cars to $ 94Mn during 1HFY21. Under the new vehicle category, 2,532 units of cars up to 1,000cc were imported, followed by 1,520 units under 1,301-1,500cc, 132 units in 1,601-1,800cc and 42 jeeps (4x4), taking total imports to 4,236 units. Dawn-Sun. Feb-21 Quote of the Day Cellular Subscribers in Pakistan (Mn) 180 160 133.24 140 120 139.76 150.24 161.02 167.27 114.66 100 80 60 40 20 0 FY15 FY16 FY17 FY18 FY19 FY20 Source: KCCI Research; PTA Trade Opportunity Mauritius has discontinued the use of plastic in any form and there is a growing demand for supply of disposable wooden FATF Action Plan: Progress made on all 27 benchmarks Pakistan has made progress on all the 27 benchmarks laid down in FATF Action Plan and sent its compliance report to FATF near end spoons and other materials. Members dealing in manufacturing of disposable wooden spoons and etc. are requested to kindly Jan’21. FATF would review Pakistan’s progress on the Action Plan in its three-day plenary meeting being held on 22nd – 25th Feb’21. share their company profile along with the membership number at BR-Mon. res@kcci.com.pk.