Pakistan Daily Economy Update - 15 March

Transcription

1. Mar . 15, 2018 KCCI - eBulletin Chambers, trade associations unite to raise voice for resolution of issues Representatives from almost all chambers of commerce and industry and trade associations of the country gathered at Karachi Chamber of Commerce and Industry (KCCI) for presenting joint budget proposals to the govt. The participating business leaders called for withdrawal of various amendments through the finance bills since 2013 regarding powers of FBR officials. Vice Chairman, BMG in KCCI and former president KCCI Haroon Farooki, urged that tax audits be conducted under well-defined audit parameters which should be promulgated in consultation with all stakeholders and must have cover of law. He further said that every individual trader has been assigned the task of withholding tax collecting agent, which is further adding to the problems of the business community. After deliberating on various issues and govt. policies relating to trade and industry, they reached a consensus to collectively raise their voice for the relief of the businessmen. They unanimously urged the govt. to move separate bills for bringing about changes in the tax laws instead of making all the proposals a part of the upcoming finance bill, and that finance bill should be confined to budgetary and fiscal measures only They argued that it is imperative for the business community to unite and raise collective and forceful voice for resolution of their grievances. BR/ The News. We will not present a political budget: Miftah The govt. will present a “technocratic” and growth-oriented budget on Apr. 27, 2018 for the upcoming FY19 instead of a politically populist budget. The Advisor has said that the govt. has decided to take on board all major political parties for the upcoming budget. He further said that govt. will make sure to conclude ongoing FY18 within 5% fiscal deficit limit and reduce it down to 4.5% next year. Dawn. Budget philosophy: Govt willing to adjust high tax rates Special Assistant to the PM on Revenue, Haroon Akhtar Khan, has said that the govt. is willing to review and adjust high tax rates in case they are found to be stymieing growth of any sector or industry. Speaking to foreign businessmen, he said that the govt. is not in favor of counter-productive taxes as its prime objective is to promote growth and help businesses flourish and contribute more revenue to the national exchequer. Tribune. Offshore tax amnesty gets political backing Proposals of a Supreme Court constituted committee – to place restrictions on inward free movement of foreign currency and to withdraw secrecy available to foreign currency account holders – are reportedly not backed by the political leadership. A meeting was held in the PM Office where there was unanimity of the views of both the political leadership and the bureaucracy on the need of offering the offshore tax amnesty scheme to all Pakistanis, asking them to get their hidden foreign assets legalised at low tax rates. But the bureaucracy and the political leadership remain divided over its contours. The PM is not in favour of imposing restrictions on tax-free inflows of remittances and withdrawal of secrecy from foreign currency accounts. Tribune. Anti-money laundering: Asian Pacific Group to visit Pakistan in April As Islamabad decides to cooperate with the global bodies, the Asian Pacific Group (APG) on Money Laundering will visit Pakistan in April’18 to help the country develop an action plan to exit from the grey list of countries that are accused of financially aiding terrorism. Pakistan will be required to develop the action plan in consultation with the APG and stakeholders. Tribune. FTA-II with China: sensitive list of items to be finalized today Commerce and Textile Ministry has convened a meeting of all key chambers and associations on Mar. 15, 2018 (today) to finalize sensitive list of items to be placed before Chinese officials during 10th round of FTA-II, to be held in Islamabad in the last week of Mar.’18. The business community has been requested to share their input on the following points: (i) products on which market access in Chinese market is required and (ii) products which need to be protected in the FTA. During the 9th round, one of the major demands of Pakistan, i.e., zero duty on 68 items of its interest remained inconclusive in phase- II. BR. IMF representative praises govt Newly appointed resident representative of the IMF to Pakistan, Maria Teresa Daban Sanchez called on State Finance Minister. \ She lauded govt.’s efforts for improving security situation in the country which has given boost to economic activities and enhanced confidence of the business community. She also appreciated govt.'s endeavors to increase exports that would help bring down trade deficit. During the meeting, the IMF representative also discussed matters related to the upcoming spring meetings of the IMF and World Bank scheduled in Apr.’18. BR. US dollar slips to one-month low below PKR 112 The US dollar slipped to a one-month low, standing below the important level of PKR 112 in the open market on Wed (14th Mar) as it kept losing ground against world’s other major currencies, thereby indirectly supporting the rupee. The change took place after the USD lost 2% against world’s major currencies like the euro and British pound. The greenback is expected to trade in the range of PKR 111-112 in the short term and may touch even PKR 111. Tribune. Govt to present electricity policy to CCI next month Participants of an energy conference have underlined the need for cashing in on the opportunities arising in Pakistan’s growing off-grid solar power industry in order to address critical energy shortages. The International Finance Corporation (IFC), joined forces with Pakistan Microfinance Investment Company (PMIC) and the Alternative Energy Development Board (AEDB) to host the conference and highlight the opportunities in the off-grid solar industry to bridge the energy deficit. Minister for Power Division Sardar Awais Ahmed Khan Leghari said the govt. is working on the national electricity policy that would be tabled before the Council of Common Interests (CCI) in Apr’18 for approval. Tribune. Financial close deadlines extended for CPEC power projects Private Power and Infrastructure Board (PPIB) has allowed extension in financial close deadlines of two 660MW Thar coal based power projects and 660 kV HVDC Matiari-Lahore Transmission Line being processed under CPEC. The board also allowed extension in financial close deadlines of Thar coal based power projects being processed under CPEC which include 330MW Project by Thar Energy Ltd. and 330MW Project by Thal NovaThar Pvt Ltd. The Nation. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 14-Mar 110.58 111.55 0.00% 0.00% Crude (MY'18) 14-Mar 14-Mar 14-Mar 14-Mar PKR PKR Pts. $ Mn $/bbl 43,408 -3.34 60.98 -0.48% NM** 0.07% Gold (AP'18) Gold (10g) Local 14-Mar 14-Mar $/oz PKR 1,325.4 48,557 -0.09% 0.36% Silver (AP'18) Cotton(KHI)-40 kg 14-Mar 14-Mar $/oz PKR 16.51 8,145 -0.27% 2.70% Kibor-6M 14-Mar % 6.47 $ Bn 18.33 0.01% 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, 14-Mar-18, 154.4 155 145 EUR, 14-Mar-18, 136.9 135 125 115 105 USD, 14-Mar-18, 110.6 95 Mar-17 USD Jun-17 GBP EUR Sep-17 Dec-17 Source: KCCI Research ; Oanda.com Quote of the Day "A bank is a place that will lend you money if you can prove that you don’t need it." Bob Hope Chart of the Day FBR's Direct & Indirect Tax Collection (1HFY14-1HFY18) 1200 1056.33 1000 800 600 830.13 649.43 381.98 880.84 713.01 458.93 540.78 591.50 673.75 400 200 0 1HFY14 1HFY15 1HFY16 Indirect Taxes (PKR Bn) 1HFY17 1HFY18 Direct Taxes (PKR Bn) Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained Pakistan expected to harvest bumper wheat crop of 26Mn tons this season The country is expected to harvest a bumper wheat crop of around 26 Mn tons during the current season –the highest ever – herein have been compiled or arrived at based upon information obtained from sources believed to as increased fertiliser offtakes offset the low acreage impact, water shortage and late sowing associated with marketing-related be reliable and in good faith. Such information has not been independently verified. issues of sugarcane and cotton crops. Nonetheless, the output may fall short of the targeted 26.46Mn tons. The News. 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