Pakistan Daily Economy Update - 17 June

Transcription

1. June 17 , 2022 KCCI - eBulletin Pakistan-Bangladesh trade volume to soon touch $ 1Bn: envoy High Commissioner of Bangladesh to Pakistan, Rahul Alam Siddique has said that bilateral trade between Pakistan and Bangladesh has been increasing sharply and would likely touch $ 1Bn soon, which would be a major milestone. Exchanging views at a meeting during his visit to KCCI, he said that during the last 50 years, Bangladesh achieved many goals under its Vision 2021 program and now total exports of the country have crossed $ 50Bn. General Secretary BMG AQ Khalil appreciated the efforts being made by the Bangladeshi govt. towards improving trade and investment ties with Pakistan. BR. Miftah refuses to clear dues of fertiliser sector Minister for Finance Miftah Ismail has declined to clear pending dues of PKR 80Bn of the fertilizer sector but assured that their issues would be resolved as the govt. has almost streamlined the petroleum industry. Given the current fiscal challenges, the finance minister informed the fertilizer sector that there was no way forward in clearing the outstanding subsidy and sales tax. Dawn. FATF talks focus on money laundering, terrorist financing FATF completed day three of its plenary session on Thursday (16th Jun’22) with a discussion focusing on the fight against money laundering and terrorist financing. The delegates also discussed a report on how to help the real estate sector tackle illicit finance. Dawn. Documentation for foreign travel being simplified The govt. has taken a significant step to provide relief to overseas Pakistanis and those intend to go abroad for employment, education and other purposes as the lengthy procedure of authentication of documents required outside the country is being made swift and easy. Under the new mechanism, special centers and notaries are being established in all major cities of the country for quick authentication of documents. Dawn. ‘Reliance on LNG exacerbating energy insecurity’ Pakistan’s shift to imported Liquefied Natural Gas (LNG) is undermining the country’s energy security and financial stability, according to a research report released by the Institute for Energy Economics and Financial Analysis (IEEFA). LNG imports can rise to more than $ 32Bn by FY30, up from nearly $ 2.6Bn in FY21. LNG sourced from global markets has become five to 10 times more expensive than domestically produced gas. Dawn. IT export tax to hamper youth’s potential Professionals and experts from the information technology sector have voiced fear that the proposed tax on IT exports in the budget for FY23 will largely hamper the earning potential of the youth. Tribune. Annual turnaround: Gas supply to SSGC from Gambat field suspended for 15 days Under the load management plan, the gas supply to bulk consumers will be curtailed for 15 days as Gambat Gas Field will undergo an annual turnaround during the period. Supply to SSGC will be reduced by 40 to 50mmcfd. The News. Issuance of PIBs, Sukuks: MoF asks PD to coordinate with its Debt Wing The Finance Ministry has asked the Power Division to coordinate with its Debt Wing for issuance of PIBs and Sukuks against second tranche under 2002 power policy as per approved mechanism for settlement with IPPs. The govt. has to pay second tranche of 60% of total amount of PKR 95Bn to 11 IPPs as per the agreements before 6th Jul’22 of which 1/3rd is payable in cash, 1/3rd in Sukuk and 1/3rd in PIB bonds. BR. Cabinet okays 10% duty on petrol The cabinet has approved the imposition of 10% regulatory duty on the import of petrol from China and exempted the shipments that have already been booked for import. Earlier, there was zero duty on the import of oil under the China-Pakistan Free Trade Agreement (CPFTA). Oil companies brought petrol from China under the FTA and got the benefit of over PKR 22Bn in terms of tax exemption. Tribune. Govt in talks with IMF on daily basis: Aisha Minister of State for Finance and Revenue Dr. Aisha Ghaus Pasha has said that the govt. would very soon resolve all issues with the IMF including personal income tax reforms agreed upon by the previous PIT regime. Once the tax-base is broadened and the number of filers increases, the govt. would be able to effectively deal with the withholding tax regime. BR. \ List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 16-Jun 16-Jun PKR PKR 207.67 207.50 0.59% 0.24% KSE-100 index FIPI 16-Jun 16-Jun Pts. $ Mn 41,730 -0.90 0.70% NM** Crude Oil 16-Jun $/bbl 117.59 1.98% Gold 16-Jun $/oz 1,849.9 1.67% Gold (10g) Local 16-Jun PKR 119,860 0.00% Silver 16-Jun $/oz 21.89 2.17% Cotton(KHI)-40 kg 16-Jun PKR 22,291 0.00% Kibor-6M 16-Jun % 15.43 -0.21% Forex Reserves 10-Jun $ Bn 14.94 WoW -1.54% Remittances Jul-May 22 $ Bn 28.41 6.26% Exports* Jul-May 22 $ Bn 28.85 27.78% Imports* Jul-May 22 $ Bn 72.18 44.28% Trade Balance* Jul-May 22 $ Bn -43.33 -57.85% Current Account Foreign Direct Inv. Jul-Apr 22 Jul-Apr 22 $ Bn $ Bn -13.78 1.46 -2437.6% -6.27% YoY Jul-Mar 22 LSM Growth* % 9.40 % 11.29 Jul-May 22 Avg. CPI Discount Rate % 13.75 May-22 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 265 255 245 235 225 215 205 195 185 175 165 155 145 Jun-21 GBP, 16-Jun-22, 252.3 EUR, 16-Jun-22, 217.0 USD, 16-Jun-22, 207.5 USD Sep-21 GBP Dec-21 EUR Mar-22 Jun-22 Source: KCCI Research Quote of the Day IMF says didn’t ask Pakistan to renegotiate CPEC IPP deals In a statement, Esther Perez Ruiz, IMF’s Resident Representative for Pakistan has stated that IMF did not ask Pakistan to renegotiate CPEC IPP contracts. Rather, IMF supports the govt’s. multi-pronged strategy to restore energy sector viability which shares the burden of restoring viability across all stakeholders. BR. ""Things work out best for those who make the best of how things work out." Oil, food imports swell to $ 28.14Bn Pakistan’s oil and eatable import bill surged by 61.44% to $ 28.14Bn in 10M-FY22 compared to $ 17.43Bn in 10M-FY21 owing to higher international prices and massive depreciation of the rupee. Dawn. John Wooden Exports up 27.89%: Jul-May imports soar 44.51% to $ 72.297Bn YoY The country’s imports during 11M-FY22 totaled $ 72.297Bn against $ 50.028Bn during 11M-FY21, an increase of 44.51%. Overall exports during 11M-FY22 totaled $ 28.873Bn against $ 22.576Bn during 11M-FY21, an increase of 27.89%. BR. Pakistan takes another shot at LNG import Pakistan has taken yet another shot at importing LNG amid surging energy cost as last week’s tender was bound to be cancelled due to least interest shown by potential bidders. With a view to ease domestic shortage and meet demand of power sector, Pakistan LNG Ltd (PLL) floated a tender for the supply of four cargoes for the month of Jul’22, with each cargo having a volumetric quantity of 140,000m3. The News. Pakistan invites D-8 countries to make alliance food secure Pakistan has invited D-8 nations to work together with Islamabad to ensure food security of the developing nations’ alliance. Pakistan’s agriculture sector posted a growth of 4.4% in FY22 owing to a 6.6% growth in crops and 3.3% increase in livestock production. D-8 is a global arrangement (Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey) established with the objective of economic cooperation to improve member states’ position in the global economy along with other objectives. The News. Interest rates rise around the world, as war and high inflation grind on Nearly four dozen countries have raised interest rates in the last six months, as central banks in the United States, England, India, Pakistan and other nations push borrowing costs higher in a bid to contain the most rapid inflation in decades. So far in 2022, at least 45 countries have lifted rates. The News. Large-Scale Manufacturing output shrinks 13.3% in April LSM shrank month-on-month by 13.3% in Apr’22. In 10M-FY22 LSM grew 10.7% on a year-on-year basis as per the new base year (FY16). However, the growth is calculated at 6.7% in 10M-FY22 on the basis of the old base (FY06). Dawn. Sindh to cultivate oil palm trees on 1,000 acres The Sindh govt. has decided to launch the second project of oil palm cultivation on 1,000 acres in the province in Thatta district. A sum of PKR 356Mn would be spent and 60,000 oil palm trees would be planted during the ongoing year. The News. SBP’s forex reserves fall $ 241Mn to $ 8.99Bn On 10th Jun’22, foreign currency reserves held by the SBP were recorded at $ 8.99Bn, down $ 241Mn compared with $ 9.23Bn on 3rd Jun’22. Net reserves held by commercial banks amounted to $ 5.96Bn. Overall liquid foreign currency reserves held by the country stood at $ 14.94Bn. Tribune. Inflow of Remittance in Pakistan - $ Bn 30 29.45 25 20 23.13 26.74 28.41 20.66 15 10 5 0 FY20 FY21 11M FY20 11M FY21 11M FY22 Source: KCCI Research; SBP Note If any member is facing any issues pertaining to PakistanAfghanistan investment and trade policies or has project proposals is requested to share the information at secretary@kcci.com.pk for forwarding to the Board of Investment.