Pakistan Daily Economy Update - 18 January

Transcription

1. Jan . 18, 2018 KCCI - eBulletin PM to announce package for industrial refunds soon State Finance Minister Rana Muhammad Afzal has said that PM Shahid Abbasi will announce a comprehensive package in two or three weeks for industrial refunds as the govt. is committed to taking cogent steps for revival of sick industrial units. The State Minister further said that a uniform industrial policy has been adopted and there is no discrimination or special treatment with any area of the country. BR. Govt. to announce tax amnesty scheme PM Shahid Khaqan Abbasi has said that govt. would announce one - time tax amnesty scheme, while special measures would be taken to enhance tax collection and widen tax base. Addressing Pakistan Economic Forum, premier Abbasi said that govt. has planned to lower the tax slabs for the individual taxpayers while minimum threshold of taxable income will also be increased. He added that govt. has given an incentives package to the exporters but more needs to be done to make local industries competitive and that Pakistan needs to achieve exports above $ 50-60Bn. The Nation. Sindh, Balochistan Industries will soon be provided with RLNG SSGC Chairman Lt. Gen. (Rtd) Javed Zia, at a meeting organized by the Karachi Chamber of Commerce and Industry (KCCI), said that industries of Sindh and Balochistan would soon be provided with RNLG. This was SSGC Chairman’s first visit to any trade association since his appointment on the Company’s Board of Directors in Nov.’17. On the occasion, President KCCI, Muffasar Atta Malik, assured the Chairman and his team that KCCI will leave no stone unturned in discouraging the industrial units engaged in gas theft and will support SSGC wholeheartedly in this regard. The SSGC Chairman seconded the proposal presented by the KCCI office bearers that there should be KCCI representation on SSGC’s Board. BR. KWSB decides to hold 2nd board meeting after 7 years for streamlining affairs In light of strict directions by Supreme Court (SC) to Karachi Water and Sewerage Board (KWSB), the entity has finally decided to hold a 2nd Board meeting in 7 years for streamlining its affairs. After worst working and progress besides lethargic attitude of the KWSB, issues of vital public importance have been put on the meeting agenda. SC has directed the entity for ensuring supply of safe drinking water to Karachi, ensure safe environment, treatment of sewage water, abolishment of illegal hydrants and completion of related development projects of public welfare. Daily Times. Despite shortage, cabinet approves 235 new gas supply schemes The federal cabinet has approved 235 new gas supply schemes of billions of rupees for the constituencies of parliamentarians, mainly from Punjab, at a time when existing consumers are facing gas shortage, particularly during the winter. These schemes were recommended by a ministerial committee in a series of meetings held in 2017 to please voters and get their support in the upcoming polls. Tribune. Spinners to suffer $ 500Mn in losses The textile industry is braving the loss of $ 500Mn due to the delay in the issuance of the revised permit to import cotton from India. Currently, Pakistan does not produce organic cotton and this is why the industry needs to import organic cotton to compete globally and improve exports. The News. Govt. urged to allow provinces collect indirect taxes Kaiser Bengali, Baluchistan NFC Representative, has urged the govt. to delegate provinces with power to collect indirect taxes. To increase the base of federal divisible pool, the collection of entire direct taxes, including agriculture income tax should be entrusted with the federal government and other indirect taxes, including sales tax and excise should be collected by provinces, he said. The News. \ Economic Indicators List of Indicators Date / Period Unit Value Change Daily 17-Jan 110.30 111.95 -0.22% -0.09% Crude (MA'18) 17-Jan 17-Jan 17-Jan 17-Jan PKR PKR Pts. $ Mn $/bbl 43,359 7.47 63.90 0.98% NM** 0.17% Gold (FE'18) Gold (10g) Local 17-Jan 17-Jan $/oz PKR 1,328.4 49,028 -0.85% -1.04% Silver (FE'18) Cotton(KHI)-40 kg 17-Jan 17-Jan $/oz PKR 16.97 8,038 -1.26% -1.31% Kibor-6M 17-Jan % 6.20% $ Bn 20.02 0.00% WoW -0.66% Remittances 5-Jan FY18 Jul-Dec 17 $ Bn 9.74 YoY 2.51% Exports* Imports* Jul-Dec 17 Jul-Dec 17 $ Bn $ Bn 11.01 28.97 11.27% 19.11% Jul-Dec 17 Trade Balance* $ Bn -17.96 Jul-Nov 17 Current Account $ Mn -6,430 Foreign Direct Inv. $ Bn 1.38 Jul-Dec 17 Jul-Oct 17 LSM Growth* % 9.64 % 3.75 Jul-Dec 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -24.48% -90.74% -2.81% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Major Currencies 165 GBP, 17-Jan-18, 152.7 155 145 135 EUR, 17-Jan-18, 135.3 125 115 105 95 Jan-17 USD, 17-Jan-18, 110.5 USD Apr-17 GBP EUR Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day Govt. mulls imposing penalties on Thar-based IPPs The govt. is likely to impose liquidated damages on slow-moving coal-based power projects and re-adjust completion timelines of others to minimize expected capacity payments to Chinese contractors of the $ 2.1Bn Matiari-Lahore Transmission Line. Dawn. “Economic growth is the engine of the escape from poverty and material deprivation.” PPIB authorizes agreement for supply of RLNG to 4 gas-based IPPs The PPIB Board has authorized interim agreement for supply of RLNG to four indigenous gas based IPPs namely Halmore, Saif, Orient and Saphire. These projects are operating on costly HSD due to non-availability of gas. The replacement of HSD with RLNG will cut the fuel price to almost half, thus reducing the tariff considerably. The Nation. Chart of the Day New law in the offing for effective resolution of trade disputes The draft law of Trade Dispute Settlement Act envisages the formation of a Trade Dispute Resolution Commission (TDRC) that would work under the administrative control of the Ministry of Commerce, with identical powers as vested in a civil court, for swift and effective resolution of disputes relating to export and import of goods and services including e-commerce. Speaking at a meeting, Executive DG Trade Dispute Resolution Organization (TDRO) said that the purpose of drafting a law on trade dispute settlement was to provide for the establishment of a comprehensive regime in Pakistan for the swift and effective resolution of trade disputes. Daily Times. Saudi investment sought for gas pipeline Pakistan and Saudi Arabia have agreed to establish a working group for the export of halal food from Pakistan to the kingdom, Saudi investment in the construction of the north-south gas pipeline, accelerated negotiations on a bilateral investment treaty and the exchange of parliamentary delegations. The two sides reached this understanding at the conclusion of the 11th session of the Pakistan-Saudi Arabia Joint Ministerial Commission (JMC). Dawn. Matco’s IPO book building from 23rd Jan’18 Matco Foods Limited, the country’s leading rice exporter and processor, will hold book building for its IPO on 23rd Jan’18. The entire issue will be offered through book building at a floor price of PKR 26/share. Initially, 75% of the issue size or 21.857Mn shares will be allotted to successful bidders and 25% of the issue or 7.286Mn shares will be offered to retail investors at the strike price during the two-day general subscription. The News. SBP launches systemic risk survey SBP has launched Systemic Risk Survey (SRS) to gauge the views of market participants and experts about various existing and emerging risks. The survey aims at evaluating the respondents' confidence in the stability of the financial system as a whole and banking system in particular. It will be conducted twice a year and the findings will be used to strengthen its risk assessment and take appropriate mitigating measures. BR. Angus Deaton Car Sales in Pakistan 11,000 9,888 9,000 7,467 7,000 5,000 3,000 1,000 4,140 3,807 2,416 2,464 Honda Suzuki Dec'16 Dec'17 Toyota Source: KCCI, PAMA 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