Pakistan Daily Economy Update - 18 May

Transcription

1. May 18 , 2016 KCCI - eBulletin PKR 4.418Tn‘pro-people’ budget on June 3 The Govt. would present budget for FY17, on 3rd June, 2016, with an expected outlay of PKR 4.418Tn and deficit target of 3.8% of the GDP as against 4.3% of the GDP of the outgoing fiscal year. Finance Minister Ishaq Dar has said that the budget for the FY17 would be pro-people and the govt. had constituted a committee, which would decide about increase in salaries and pensions in the upcoming budget. Tribune. Amnesty scheme quietly shelved The much-hyped Voluntary Tax Compliance Scheme (VTCS), aimed at documentation of informal retail businesses, has been rolled back due to the lukewarm response from the traders community. An FBR spokesperson has confirmed that the scheme has been discontinued from 1st May’16, and that no similar new scheme for traders is under consideration. Under the scheme, only 9,020 traders availed themselves of the scheme and contributed a meagre PKR 850Mn until 30th Apr’16. FBR had sought extension in the lower rate of 0.4 %withholding tax on banking transactions and extension of the tax scheme. However, the ECC has only extended the lower rate of withholding tax until 31st May’16. Dawn. First phase of western route of CPEC inaugurated Prime Minister Nawaz Sharif has inaugurated the first phase of the western route of the China Pakistan Economic Corridor Project (CPEC), Yarik DI Khan to Rehmani Khel (55 kilometers long expressway), that would expedite pace of development in the southern districts of Khyber Pakthunkhwa. The project would be completed with an estimated cost of PKR 2Bn in two years. This expressway would pass through Rehmankhel, Pindi Gaib and Burhan. The first phase of CEPC western route would be completed in five parts. BR. FBR plans to tax pension funds, non-profit organizations The FBR has proposed to slap tax on the income of various funds including service, pension and military regimental and on the business income of non-profit organizations and trusts in the new budget. In its budget proposals, the tax authorities have proposed to Finance Minister Ishaq Dar to withdraw the tax exemption facility and impose income tax on these institutions at half the standard tax rates. The proposals are aimed at generating over PKR 5Bn in additional revenues. For FY17, the govt. may set the FBR’s annual tax collection target at PKR 3,601Bn, which is PKR 134Bn less than the target approved by the federal cabinet while approving the Budget Strategy Paper. Tribune. China contributes more than half of total FDI in 10MFY16 Foreign Direct Investment (FDI) increased 5.4% in 10MFY16 on a year-on-year (YoY) basis, according to SBP. Pakistan received FDI of $ 1,016.3Mn in 10MFY16, which is $ 52.5Mn or 5.45% higher than the FDI received in 10MFY15. The largest increase in FDI in July-April was in the category of power, which attracted $ 518.1Mn, up 208% from a year ago. Other sectors that attracted substantial FDI in the first 10 months of FY16 were oil and gas exploration ($ 234.8Mn), telecommunications ($ 72.7Mn) and beverages ($ 61.9Mn). Tribune. Connecting regions: Pakistan, Tajikistan study fiber optic cable link The Central Asia-South Asia 1,000MW (Casa-1,000) power supply project is expected to pave the way for connecting the two regions digitally as they are deliberating on a proposal to lay a fiber optic cable along with the electricity transmission line. Casa-1,000 power project has cleared the way for us to connect the regions through a cable network called Digital Casa-I, which will link Tajikistan, Afghanistan and Pakistan. Under this project, a fiber cable will be laid along with the power transmission line between the two regions. Tribune. Dar pins hope on highest growth rate in FY 2015-16 Finance Minister Ishaq Dar has expressed hope that the GDP growth rate during the current year (2015-16) would be the highest in eight years. The finance minister said that all the economic indicators have been performing well, adding that inflation has decreased with high remittances while the foreign exchange reserves have also witnessed a considerable growth during the past three years. Dar said that the country has potential to grow at 7% by overcoming security challenges, and energy problems would help the country achieve this goal by 2018. Daily Times. Nandipur plant produced 1371Mn kWh since 2015 Minister for Water and Power has informed that Nandipur Power Plant has generated 1371.21Mn KWh since its start last year. The Nandipur project achieved Commercial Operation Date (COD) on July 2015 and generated 1371.21Mn KHW units till May 8th, 2016. According to the minister, the Nepra has determined per unit cost of electricity generated by Nandipur plant as PKR 11.6361 per kWh. Tribune. Shanghai Group seeks permit to make electricity from Thar coal The Shanghai Electric Group has approached Nepra seeking generation license for its 2x660MW mine-mouth coal-fired power plant in Thar Block-I. The $ 1.64Bn project is included in the prioritized list of CPEC, and is being developed by Thar Coal Block-I Power Generation Company (Pvt) Ltd, a 100% owned company of Shanghai Electric Investment (Dubai) Company Limited. The company plans to achieve commercial operation date by the 2HCY18. The electricity generated would be supplied to the national grid. The News. Industrial output grew 4.7% in nine months The country’s large-scale manufacturing (LSM) sector has grown by 4.7% during 9MFY16. The Quantum Index Numbers (QIM) of largescale manufacturing industries was recorded at 133.88 points during 9MFY16, as against 127.87 points during the same period last year, according to data released by PBS. On year-to-year basis, industrial growth increased by 6.75% during Mar’16 as compared to Mar’15. Major sectors that showed growth during the period include textile (0.6%), coke and petroleum products (2%), pharmaceuticals (7.2%), chemicals (10.01%), non-metallic mineral products (10.23%), automobiles (23.43%), fertilizers (15.92%), leather products (12.18%) and rubber products (11.68%). On the other hand, LSM industries that witnessed negative growth included iron and steel (7.48%), electronics (9.98%), paper and board (2.9%), engineering (17.64%) and wood products (58.03%). Dawn. Provident fund: SECP imposes limit for investment in shares, schemes The Securities and Exchange Commission of Pakistan (SECP) has imposed limit for investment out of the employees' provident fund in listed securities including shares of companies, bonds, redeemable capital, debt securities, equity securities and listed collective investment schemes. The SECP has issued Employees' Provident Fund (Investment in Listed Securities) Rules, 2016 to be applicable from Jul. 1, 2016. The Employees' Provident Fund (Investment in Listed Securities) Rules, 1996 along with S.R.O. 261(1)/2002 are hereby repealed after Jun. 30, 2016. BR. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 17-May PKR 104.74 0.00% USD-Open MKT 17-May PKR 105.00 0.10% KSE-100 index FIPI 17-May 17-May Pts. $ Mn 36,137 -3.30 0.03% NM** Crude (JU'16) 17-May $/bbl 49.17 1.17% Gold (MY'16) 17-May $/oz 1,280.1 0.24% Gold (10g) Local 17-May PKR 42,471 0.00% Silver (MY'16) 17-May $/oz 17.26 0.59% Cotton(KHI)-40 kg 17-May PKR 6,002 0.00% Kibor-6M 17-May % 6.40% -0.01% 6-May $ Bn 20.83 0.22% Remittances Jul-Apr 16 $ Bn 16.03 5.18% Exports* Jul-Apr 16 $ Bn 17.32 -12.99% Imports* Jul-Apr 16 $ Bn 36.34 -3.70% Trade Balance* Jul-Apr 16 $ Bn -19.02 -6.68% Current Account Avg. CPI-FY16* Jul-Mar 16 Jul-Apr 16 $ Mn % -1,606 2.79 18.52% WoW Forex Reserves YoY Apr-16 Discount Rate % 6.00 Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 GBP, 17-May-16, 151.5 155 145 EUR, 17-May-16, 118.6 135 125 115 105 95 USD, 17-May-16, 104.7 85 75 May-15 Aug-15 USD GBP Nov-15 EUR Feb-16 May-16 Source: KCCI Research ; Oanda.com Quote of the Day "Sometimes we need someone to turn the flashlight on for us. Other times we need to turn it on for others." Lizzie Velasquez Chart of the Day LSM constituent growth during Jul'15-Mar'16 (%) 30% 23.43% 15.92% 11.68% 10.01% 20% 12.18% 10.23% 7.21% 3.66% 2.40% 10% 0.62% 0% -10% -20% -30% -40% -50% -60% -70% -2.90% -7.48% -9.98% -17.64% -58.03% Major consumers: Gas Discos' receivables reach PKR 218Bn The outstanding dues of gas distribution companies' against different gas consumers have reached PKR 218Bn. In this regard, SSGCL’s outstanding dues against different consumers including K-Electric, Wapda, Pakistan Steel Mills, Independent Power Producers, Captive Power Plants, Compressed Natural Gas Stations and general industry stood at PKR 114.6Bn as on Mar.’16. The outstanding dues of SNGPL against various consumers stood at PKR 93.8Bn of which PKR 68Bn are on account of Gas Infrastructure Development Cess Disclaimer (GIDC) while PKR 35.8Bn are outstanding against other consumers including textile industry, CPPs, general industry and CNG outlets. BR. This report has been prepared by KCCI Research & Development Cell. The information contained herein have been compiled or arrived at based upon Auction for NGMS spectrum (3G) on Jun. 20, 2016: Dar information obtained from sources believed to be reliable and in good faith. Finance Minister Muhammad Ishaq Dar has announced that auction of Next Generation Mobile Services (NGMS) spectrum (3G) would Such information has not been independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is be held on Jun. 20, 2016. The Minister urged the investors to take benefit from this opportunity for their better interests. He assured stated to enrich the readers' understanding of the news item. The the telecom operators that the govt. is committed to resolve their problems. BR.