Pakistan Daily Economy Update - 18 March

Transcription

1. Mar . 18, 2017 KCCI - eBulletin LSM posts 3.48% growth in July-January Large scale manufacturing (LSM) industries have posted 3.48% production growth during 7MFY17 with an increased production of iron and steel. According to the PBS, Iron and steel products recorded the highest growth of 17.46% among all the key industries. While electronics sector was the second after iron and steel in terms of growth in 7 months with 13.49%, followed by non-metallic products (7.78%), pharmaceutical (7.57%), automobiles (6.91%), paper and paper board (6.61%), food, beverages and tobacco (4.79%) and rubber products (0.38%). The News. Minister denies special incentives for foreign companies under CPEC Federal Minister for planning, development and reforms Ahsan Iqbal has rejected the propaganda that only Chinese companies can invest in special economic zones (SEZs) under CPEC. The minister has said that no special incentives were given to foreign companies and organizations for operations in Pakistan to ensure the protection of domestic industries. He further said a working group has been established with regards to setting up of economic zones under CPEC. The News. India set to build 1,000MW Pakal Dul project on Chenab India is going to build on the Chenab River its first ever hydropower project namely Pakal Dul project with capacity to generate 1000 MW of electricity with water storage that will be filled every year during flood time from 21st Jun to 31st ‘Aug. This project will also be taken up for detailed discussion during the Pak-India crucial talks at Permanente comission of Indus waters (PCIW) that is going to take place on 20-21st Mar’17 in Lahore. The News. India wants to bypass WB in water talks India is insisting on discussing Pakistan’s objection to Khishanganga and Ratle hydropower projects at the platform of Permanent Indus Waters Commission, bypassing ongoing World Bank (WB)-driven dispute resolution mechanism. However, Pakistan while corresponding to India, did not include discussion on Kishenganga and Ratle Hydroelectric projects in the agenda and wanted to pursue its case lodged with the WB over constitution of Court of Arbitration. The News. TIP calls for revenue regulatory authority Transparency International Pakistan has called for setting up an independent Pakistan Revenue Regulatory Authority which reports directly to PM for making laws for revenue generation. In its proposals for FY18 budget sent to Prime Minister, TIP claimed that if its suggestions are followed, revenue collection would cross PKR 10,000Bn in FY18 against PKR 3,600Bn for FY17 budget. It was recommended that FBR should only be an implementing board under the finance ministry, and should be relieved from performing the role of a regulator. Dawn. Non-filers: FBR agrees to enhance rates of WHT FBR has agreed to a budget proposal of field formations to enhance rates of withholding tax on non-filers in the coming budget FY18. The FBR will also explore possibility to expanding the scope of higher rate of withholding tax for non-filers on other sectors. BR. Govt. urged to defer revision of property valuations The govt. has been urged to defer revision of property valuations for the tax purpose in budget 2017-18. In this regard, Pakistan's real estate sector has proposed that next revision should be made in the budget FY19. The sector further proposed that property purchaser should be allowed to register at higher values (compared to FBR values) and pay 3% up to those higher values to avail the amnesty scheme. They also proposed that the upper limit of FBR value for the purpose of tax under amnesty 236W should be removed. BR. Legal adviser condition for small firms goes SECP has notified new rules relaxing the mandatory requirement for appointment of a legal adviser for small companies. Now, Companies (Appointment of Legal Advisers) (Amendment) Act, 2017, has been promulgated and the threshold of the paid-up increased to over PKR 7.5Mn paid-up capital. Earlier the companies having a paid-up capital of PKR 0.5Mn and above were required to appoint a legal adviser to advise such companies in the performance of their functions and the discharge of its duties in accordance with the law. Dawn/ The News. SECP sets key condition for clearing houses SECP has made it mandatory for the clearing houses not to appoint or retain any person as senior management officer who was in service of a Trading Right Entitlement (TRE) Certificate holder or an associated company during the last three years. In this regard, SECP has issued an SRO 160(1)/2017 to amend Clearing Houses (Licensing and Operations) Regulations, 2016. A clearing house shall shortlist names of three suitable persons meeting fit and proper criteria provided in these regulations and shall submit one name with its recommendation for approval of the Commission. BR. Wapda to add 2,485MW hydropower by next year Wapda has said it will add around 2,485MW by 2018 after the completion of 3 hydropower projects. The projects include 969MWNeelum Jhelum hydropower plants, 1,410MW-Tarbela 4th extension and 106MW-Golen Gol hydropower plants. After completion, these projects will cumulatively contribute 9.43Bn units of low-cost and environment-friendly hydropower to the system every year. The News. Punjab govt. to form six working groups on CPEC The Punjab govt. is going to constitute six separate working groups in a bid to analyze and realize maximum opportunities from the 285km western route of CPEC. The route, which comprises the neglected districts of Attock, Chakwal and Mianwali, will provide with prospects for development in the region. The 6 groups consist of Infrastructure and Development, Social, Agriculture and Livestock, Minerals and Mines, Energy with the last one overseeing tourism and sports in the region. Tribune. Chinese firm keen on inter-city bus service A Chinese transport company wants to introduce an inter-city bus service in 5 cities of Sindh. The bus service would include Karachi, Hyderabad, Sukkur, Larkana and Khairpur. The News. Only 44% development funds utilized Amid slower than anticipated revenue collection, the government has provided only PKR 104Bn (44%) funds to its ministries for development schemes during 8MFY17 against an annual allocation of PKR 234Bn. On the other hand, the government disbursed about PKR 483Bn funds for the overall PSDP against the allocation for the entire PSDP for FY17 amounting to PKR 800Bn. Dawn. PPIB cancels ministry-IPPs meeting Water and Power Ministry has reportedly decided to snub Independent Power Producers (IPPs), prompting the Private Power& Infrastructure Board (PPIB) to cancel the second meeting scheduled on Mar. 15, 2017 to resolve overdue payments issue. PPIB's Managing Director, during the first meeting, had conveyed his inability to resolve matters by stating that he had no authority to commit to anything with the IPPs without the backing of Water and Power Ministry. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (MY'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 17-Mar 17-Mar 17-Mar 17-Mar 16-Mar 16-Mar 17-Mar 16-Mar 17-Mar 17-Mar PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 106.85 48,409 -4.98 49.55 1,219 43,285 17.30 7,379 6.12% Forex Reserves 10-Mar $ Bn 22.27 0.00% 0.23% 0.25% NM** 0.47% -0.71% 1.00% 0.00% 0.00% -0.01% WoW 0.56% YoY -2.52% -3.90% 15.99% -34.33% -90.24% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Feb 17 Remittances $ Bn 12.36 Jul-Feb 17 Exports* $ Bn 13.32 Jul-Feb 17 Imports* $ Bn 33.52 Jul-Feb 17 Trade Balance* $ Bn -20.20 Jul-Jan 17 Current Account $ Mn -4,716 % 3.85 Avg. CPI-FY17* Jul-Feb 17 Jan-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 Mar-16 GBP, 17-Mar-17, 129.3 EUR, 17-Mar-17, 112.5 USD, 17-Mar-17, 104.6 Jun-16 USD Sep-16 GBP Dec-16 Mar-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day “Persistence. Perfection. Patience. Power. Prioritize your passion. It keeps you sane.” Criss Jami Chart of the Day Top Ten Countries With Most Reliance On Nuclear Power 70 80% 76% 60 50 70% 57% 40 30 56% 38% 20 60% 53% 38% 34% 35% 34% 34% 50% Value 40% 10 30% 0 20% Nuclear Capacity '000' Mw As of 2015 Nuclear Share % Source: KCCI Research; IAEA 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