Pakistan Daily Economy Update - 17 April

Transcription

1. Apr . 16-17, 2017 KCCI - eBulletin 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 "Perfection is not attainable, but if we chase perfection we can catch excellence." Vince Lomba Chart of the Day Travel & Tourism Competitiveness Index of Top Ten Countries (2017) 8 SBP to vet parties interested in acquiring SME Bank The Privatization Commission (PC) has decided to rely on the central bank’s expertise to vet almost half a dozen parties including two foreign institutions that have come forward to acquire the govt.-owned SME Bank. The Commission has sent the documents of these parties that include a consortium comprising a real estate giant and Punjab-based Education Group to the SBP to judge the credibility of the sponsors. Tribune – Sun. 0 6 4 2 1 2 Rank 3 4 Score 5 6 7 9 8 4.94 10 10 4.97 12 Cable, wire manufacturers say tax breaks under CPEC hurting industry Cable and wire manufacturers have demanded tax exemptions similar to ones offered to Chinese and other importers. They said that the current exemptions from customs duty and sales tax on the import of wire and cable for CPEC projects promoted imports from China at the cost of local industry. In 1QFY17, 88 % (or $ 21Mn) of wire and cable imports were originated from China. In the latest budget the government exempted imports and supply of materials and equipment, including electrical wire and cable, for the development of Gwadar port and free economic zones. But these exemptions were not extended on goods produced locally. DawnSun. Hong Kong firm to move R&D department to Pakistan Hong Kong-based financial technology company “Octo3” has announced to move its entire Research and Development (R&D) wing to Pakistan. The company, which specializes in development and provision of modern payment and other transactional solutions, further announced that it will invest in the Pakistani market in order to transform its ICT landscape. The announcements were made based on the robust developments in Pakistan’s I.T sector and a rising need of digital payment solutions due to the growing ecommerce segment in the country. Tribune – Mon. 21.74 Forex Reserves CM holds consultations with colleagues, officials on uplift projects Sindh CM Mr. Shah has started consultation process with elected representatives of different districts to review development projects being carried out in their areas and complete them within stipulated time frame so that people’s problems could be resolved at the earliest. He said that sanitation and water were serious issues of the Hyderabad. The meeting was informed that PKR 6.3Bn worth 98 ADP schemes of 19 departments were in progress in the district for which over PKR 4Bn had been released. Dawn-Mon. Karachi’s 13Mn people live on 23% of residential land, moot told Participants in a meeting on urban narrative “Karachi calling” have informed that Karachi was among the three cities of South Asian with Mumbai and Dhaka regarded as the dense cities of the world where 62% (about 13Mn) of its citizens lived in informal settlements on 23% of the city’s residential land. It was also revealed that 71.32% people lived on less than 100 square yard plots; 24.27% on 100-120 sq yds; 3% on 120-240 sq yds, and 1.47% lived above 240 square yard plots. Dawn-Mon. $ Bn Crude (JU'17) Gold (MY'17) Gold (10g) Local Silver (MY'17) Cotton(KHI)-40 kg Kibor-6M 4.99 Gwadar Port brings 20,000 jobs to locals Gwadar, the third deep-water port in Pakistan, now operates three multifunctional piers with an annual throughput capacity of between 50,000 and 70,000 20-foot equivalent units, as well as bringing 20,000 jobs to locals. The port will also serve as a trade gateway for East and Central Asian countries to other parts of the world. 60% of first-phase construction of Gwadar's free zone has been completed. The Nation – Mon. 7-Apr 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% 5.1 FBR urged to stop squeezing taxpayers for more money Tax payers have urged the FBR chairman to refrain his team from exerting undue pressure on the taxpayers to meet the annual revenue target and suggested immediate remedies for taxpayers. The tax department needs to be pulled out of the mad rush of tax collection, solely focusing on existing taxpayers, which has created blindfolded and deaf tax assessments, creating undue tax demands. The tax professionals have said that multiplicity of tax proceedings is also creating serious unrest among the tax filers. The News – Sun. Change Daily 104.87 106.10 47,577 -0.64 53.28 1,286 43,885 18.47 7,234 6.16% 5.12 Large scale manufacturing expands 8.04% in Feb According to the PBS, Large scale manufacturing (LSM) sector has posted a staggering 8.04% YoY growth for Feb’17 and 1.01% as compared to Jan’17. Automobile sector recorded the highest 34.1% growth in Feb’17 over the same month a year ago. Followed by engineering products (23.81%), food, beverages and tobacco (15.5%), pharmaceutical (12.23%), iron and steel products (8.88%), coke and petroleum products (4.56%), non-metallic mineral products (2.05%) and textile sector (1.91%). LSM accounts for 10.9% of GDP and 80% of all the manufacturing activities. The News – Sun. Value PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 5.2 Sindh collects PKR 5.3Bn in stamp duty The Sindh BoR has raised over PKR 5.3Bn in stamp duty during 9MFY17 compared to PKR 4.7Bn collection it made in the corresponding period last year. The July-March collection is 56% of the PKR 9.5Bn target set for FY17. The stamp duty collection dipped during July and August due to double valuation charts introduced by the FBR to charge withholding tax on registration of property sale deeds creating a widespread confusion. Dawn-Sun. Unit 14-Apr 14-Apr 14-Apr 14-Apr 12-Apr 12-Apr 14-Apr 12-Apr 14-Apr 14-Apr 5.26 Finance minister reviews budget preparations According to the Finance Minister, the govt. will give the top most priority to improve the well-being of public and address their needs in the next budget of FY18. He said this during a meeting to review the budget preparations ahead of his forthcoming visit to Washington DC for participation in the spring meetings of the International Monetary Fund and the World Bank. The News – Sun. Date / Period 5.28 PSO demands budget allocation for gas, oil imports Pakistan State Oil (PSO) has pleaded to the govt. to earmark adequate funds in the upcoming budget for timely payments for gas and furnace oil imports. In a letter sent to the ministries concerned as well as to Prime Minister Nawaz Sharif, PSO authorities insisted that adequate matching subsidy allocated in next year’s budget would ensure continued support to the power producers in terms of furnace oil and re-gasified liquefied natural gas (RLNG) supply. Tribune – Sun. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 5.32 Budget to be announced on May 26 The government has decided to announce the budget for FY18 on May 26. Finance Minister Mr. Dar has said the announcement of the budget had been pulled earlier because Ramazan was expected to begin on 28th May, adding that preparations were being made accordingly. Dawn-Mon. Economic Indicators 5.43 Electricity shortfall soars to 5,000MW The shortfall of electricity in the country surged to 5,000MW after the total demand soared to 18,000MW against a production of 13,000MW. The large gap between supply and demand, which has been persisting for the last several days, forced the power distribution companies to allow unscheduled outages of two to four hours in addition to the announced load shedding of four hours in the urban and six hours in the rural areas across the country. The National Power Control Centre has also confirmed that the gap between demand and supply increased to 5,000MW. Dawn-Sun. 5.5 5.4 5.3 5.2 5.1 5 4.9 4.8 4.7 4.6 Source: KCCI Research, World Ecnomic Forum 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