Pakistan Daily Economy Update - 16 October

Transcription

1. Oct . 15 - 16, 2017 KCCI - eBulletin Jul-Sep 17 Remittances $ Bn 4.79 Jul-Sep 17 Exports* $ Bn 5.17 Jul-Sep 17 Imports* $ Bn 14.26 Jul-Sep 17 Trade Balance* $ Bn -9.09 Jul-Aug 17 Current Account $ Mn -2,601 Foreign Direct Inv. $ Bn 0.46 Jul-Aug 17 Jul-17 LSM Growth* % 12.98 % 3.39 Jul-Sep 17 Avg. CPI-FY18* Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 15-Oct-17, 140.0 145 135 125 EUR, 15-Oct-17, 124.5 115 105 95 Oct-16 USD Jul-17 USD, 15-Oct-17, 105.4 Oct-17 Source: KCCI Research ; Oanda.com "My hope was never to build a company. I was driven by a sense of purpose to connect people and bring us closer together." Mark Zuckerberg Chart of the Day Summary of Pakistan's Debt & Liabilities (FY15-FY17) 30.00 Constitutional requirement being flouted by delaying NFC Award, says Murad Sindh CM Shah has said that the federal government is flouting a constitutional requirement by delaying the overdue NFC Award. The CM noted that the new NFC Award was to be announced in 2015 but fulfilment of the constitution requirement had already been delayed by two years. Dawn-Mon. 15.00 Brokers demand PKR 20Bn fund to revive stock market A market support fund of PKR 20Bn should be set up under the management of NIT to revive the stock market, brokers have demanded. Directors of PSX, senior brokers and representatives of mutual funds held a meeting with the PM to discuss the prevalent issues confronting the equity market. PM Abbasi directed the authorities concerned to set up a committee, under the chairmanship of Sindh Governor, which should forward the demands of market participants to the prime minister for review. Dawn-Sun. 0.00 US-world divide spills out at IMF-WB meetings The growing split between the US and the rest of the world has spilled into the annual meetings of the IMF and World Bank in Washington this week. The US administration showed a diminished view of the two Bretton Woods institutions that shaped a US-led order after World War II, rejecting efforts to expand their activities, and defending its attack on free trade pacts as part of “America First” agenda. During the meetings, the US further continued to stymie China’s ambitions to elevate its global role via an expanded stake in both the IMF and World Bank. The Nation - Mon. EUR Apr-17 Quote of the Day Uniform cost of gas connections within 5km of new well-heads proposed The federal government has decided to apply uniform costing criteria for natural gas consumers living within a 5km radius of gas fields in the four provinces without putting additional burden on provincial governments. The federal government is likely to meet the additional cost most probably from funds allocated for commitments made regarding the Sustainable Development Goals, Energy for All and Gas Infrastructure Development Cess initiatives under PSDP. Dawn-Mon. Green banking gets ready to take off in Pakistan SBP has introduced Green Banking Guidelines (GBGs) and has given banks and development finance institutions a year to implement them. GBGs also require all banks and DFIs to make their infrastructure and operations environment-friendly. Dawn-Mon. Jan-17 GBP 25.00 20.00 21.4 World Bank asked to rectify error about loan payable by Pakistan Insisting that its external repayment obligations stand at $ 18Bn for FY18, Pakistan has asked the World Bank (WB) to rectify its ‘error’ that put external obligations at $ 31Bn. A meeting of finance ministry reviewed first quarter performance of the national economy — including revenue collection, imports, exports, remittances etc and noted that external inflows are expected to be sufficient to meet repayment obligations. Dawn-Mon. 19.67 Forex Reserves 19.6 SBP stresses for policy reform to reduce imports SBP has stressed the need to revisit industrial policies and bring uniformity in them to ease reliance of industries on superfluous imports. SBP, in a report, said currently the industrial policies are semi-liberalised, non-uniform, and (based on) escalating tariff structure. This has not only \ diverted export orientation of the industrial sector but also made it import dependent by hindering the formation of strong backward linkages in the economy. The News-Sun. $ Bn Crude (DE'17) Gold (NO'17) Gold (10g) Local Silver (NO'17) Cotton(KHI)-40 kg Kibor-6M 25.1 SBP recommends higher water rates for households, agriculture In a bid to overcome water challenges, the SBP has suggested the government to increase water rates and install metering devices to regulate the quantity consumed. Within the pricing structure, focus needed to be on raising ‘abiana’ rates within agriculture and tariffs within domestic and industrial sector to bring them at par with the cost required to operate and maintain the water supply system. Besides, it would help in encouraging a more rational use of water, the bank said in a report. Pakistan is still awaiting its first national water policy despite the fact its draft was formulated in 2003. Daily Times-Sun. 6-Oct -0.04% -0.09% -0.97% NM** 0.56% 0.93% 0.00% 1.31% 0.00% 0.00% WoW -0.46% YoY 1.05% 10.84% 22.19% -29.75% -102.10% 154.74% 17.8 Dar not being replaced A new Finance Minister (FM) is unlikely despite growing pressure from political parties and call from independent economists as former Prime Minister Nawaz Sharif wants Ishaq Dar to stay in the Ministry. In this regard, Finance Ministry has disclosed that prior to Finance Minister (FM) Ishaq Dar's return from London, Miftah Ismail was being seriously considered as a replacement. However after FM’s return, he is no longer being considered for the position and Ahsan Iqbal has visibly become more active in matters relating to finance. BR – Sun. Change Daily 105.35 107.10 39,847 18.24 51.67 1,304.1 45,342 17.39 6,591 6.17% 19.7 BoI working on its own template for BIT The Board of Investment (BoI) is working on its own template for a Bilateral Investment Treaty (BIT), which will replace the existing treaties with different countries, where all future ones will be negotiated on the new template. Alternative dispute resolution (ADR) mediation would be made compulsory, while foreign arbitrators would be decided in advance through consensus. In the recent past, Pakistan has been challenged on a broad range of govt. measures, including changes in investment incentives, alleged breaches of contracts, direct or de facto expropriation, and revocation of licences. Under the new template, Pakistan govt. would not be made liable for private investor disputes. Pakistan has currently lost two cases at international arbitration fora: Reko Diq Project of Tethyan Copper Company - a Canadian and Australian consortium (2012), and Karkey Karadeniz Elektrik Uretim of Turkey (2013). BR – Sun. Value PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 22.6 PM calls for timely completion of Centre-funded projects in Karachi PM Abbasi has asked concerned departments to expedite work on federal govt.’s funded development projects in Karachi. Chairing a meeting on the development of critical infrastructure projects in Karachi (freight movement from the ports to upcountry to support local, national and transnational trade and easing of passengers' movement), PM Abbasi directed the concerned authorities to address all development related issues on fast track basis. BR – Sun. Unit 13-Oct 13-Oct 13-Oct 13-Oct 13-Oct 13-Oct 13-Oct 13-Oct 13-Oct 13-Oct 16.0 Cost of doing business: ministry seeks recommendations from export sectors Commerce and Textile Ministry has sought recommendations from five major export sectors to reduce the cost of doing business and make them competitive in the international market. For this purpose, PM Shahid Khaqan has assigned the task to Commerce and Textile Minister to come up with a long-term plan in 30 days in consultation with exporters targeted to reduce the cost of doing business, encourage investments and make export sectors competitive in the international market. In this respect, letters have been written to textile associations seeking their recommendations covering: (i) cost of doing business; (ii) skilled development; (iii) investment; (iv) quality; (v) compliance. BR – Sun. Date / Period 17.4 Karachi traffic system to be improved with WB’s help: Murad Addressing the "20 Years Celebrations" of Businessmen Group (BMG), organized by Karachi Chamber of Commerce and Industry (KCCI), CM Sindh Murad Ali Shah has said that traffic management system in Karachi would be improved with the support of World Bank, adding that uplift initiatives would be seen within the next four months. While praising the BMG for its efforts towards for Karachi city, the chief minister said that the group has served the business community tirelessly without discrimination. He attributed BMG's success to the transparent policies introduced by its Chairman Siraj Kassam Teli that resulted in transforming the KCCI from a bankrupt chamber in 1998 to a selfsustainable and financially strong chamber in 2017. He further said that the time has come to start all the schemes he has announced from time to time and four out of them will simultaneously start in Oct.’17 where few more will begin by Nov. 15, 2017. BR – Sun. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 19.8 Want to see city prosper? Be ready for tailbacks: CM Sindh CM Murad Ali Shah has warned that traffic woes of the city are likely to worsen in days ahead due to uplift work, particularly construction of roads, starting Oct’17. Speaking at an event organised to mark 20 years of the public service to the business and industrial community by BMG from KCCI’s platform, Murad paid glowing tribute to BMG chairman Siraj Kassam Teli for his meritorious services to the business and industrial community of Karachi. The successful journey of the BMG truly deserves to be widely acknowledged by the Sindh government, business and industrial community and all the citizens of this city, he said. Daily Times-Sun. Economic Indicators 10.00 5.00 2014-15 Total debt and liabilities 2015-16 Total Gross public debt 2016-17 Debt of Pakistan Govt. Source: KCCI Research, SBP Values in PKR Tn 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