Pakistan Daily Economy Update - 18 October

Transcription

1. Oct . 18, 2016 KCCI - eBulletin Govt. extends tax holiday for shipping industry up to 2030 Ports and Shipping Minister Mir Hasil Khan Bizenjo has said during a meeting with the office bearers of the Karachi Chamber of Commerce and Industry (KCCI), that govt. has decided to extend the tax holiday for shipping companies up to 2030 in an attempt to encourage private investment in the industry. Minister has further said the deep water container port will be launched in Nov’16 and the port can accommodate vessels carrying 13,000 to 14,000 twenty feet equivalent units. Moreover, shipping minister has said the govt. will issue operating licenses for the national and international destinations under a new policy, he asked local investors to avail this opportunity. The News. Economic Indicators Date / Period Unit Value USD-Interbank 17-Oct PKR 104.77 0.03% USD-Open MKT 17-Oct PKR 104.20 -1.10% KSE-100 index FIPI 17-Oct 17-Oct Pts. $ Mn 41,283 1.71 -0.44% NM** No energy project on western route: Senate panel told Planning, Development and Reforms Standing Committee has been informed that federal govt. has not launched even a single energy project out of 15 CPEC-energy priority projects of 10,350 MW on the western route. It was discussed that China has 80% project of Gwadar, 19% of Punjab and only 1% of Balochistan. Furthermore, there is no railway project under CPEC for Balochistan. BR. Crude (DE'16) 17-Oct $/bbl 50.49 0.34% Gold (DE'16) 17-Oct $/oz 1,254 0.25% Gold (10g) Local 17-Oct PKR 43,057 -1.31% Silver (DE'16) 17-Oct $/oz 17.45 0.32% Subsistence farmers: Prime Minister asks ministry to devise plan for credit line Prime Minister Nawaz Sharif has directed National Food Security Ministry to come up with Integrated Rural Development Plan for building affordable credit line for subsistence farmers through formal financial institutions. In this regard, Prime Minister appreciated the ministry's broad policy framework and diversification plan, proposing reduction in reliance on staple food grains and increased focus on high value products through holistically addressing technological, climate change and water resource issues. BR. Cotton(KHI)-40 kg 17-Oct PKR 6,629 1.24% Kibor-6M 17-Oct % 6.04% -0.02% 7-Oct $ Bn 23.49 -0.50% Remittances Jul-Sep 16 $ Bn 4.70 -5.28% Exports* Jul-Sep 16 $ Bn 4.68 -8.98% Imports* Jul-Sep 16 $ Bn 11.75 10.70% Traders threaten strike against early shops closure in Sindh The business community has called a countrywide traders convention in Karachi on Oct. 28, 2016 to condemn the Sindh government’s decision of markets’ forced closure at 7pm. In this regard, they have said that the move had never been successful in the past, terming the Singh govt. plan impracticable and threatened to take recourse to all possible ways of protest against it. The Nation. Pakistan moving towards self-reliance in crude production Pakistan is moving fast towards achieving self-reliance in crude oil production after the govt. accelerated exploration of indigenous hydrocarbon resources over the last three years. Pakistan's total crude oil production is 85,000 bpd and OGDCL’s share is more than 57%. Currently, 70% of the current oil demand is met through import and the government has planned to set up more oil refineries in the coming days. The Minister has said that crude oil production of the Oil and Gas Development Company (OGDCL) had recently touched the highest level of 48,767 barrels/day (bpd). The News. List of Indicators WoW Forex Reserves YoY Trade Balance* Jul-Sep 16 $ Bn -7.07 -29.21% Current Account Avg. CPI-FY17* Jul-Aug 16 Jul-Sep 16 $ Mn % -1,316 3.88 -1107.34% Sep-16 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 Indians stop selling cotton to Pakistan The textile industry is in a dilemma as cotton trade between Pakistan and India has been hit by a rise in border tension. Pakistani spinners are the biggest buyers of Indian fibre. For Pakistan’s industry, buying the raw material from other sources may prove costly owing to long distance freight. In fact, the situation is in a wait-and see mode. Cotton trade between the two countries is worth $ 822Mn a year. Dawn. 165 FDI posts 38% decline in 1QFY17 Pakistan fetched FDI amounting to $ 249Mn during 1QFY17 compared to $ 403Mn in the 1QFY16, depicting a decrease $ 154Mn or 38%. The portfolio investment, has posted a surge of 130%. With the current decline, total foreign investment in Pakistan comprising FDI, portfolio and foreign public investment stood at $ 368Mn compared to $ 793.2Mn in 1QFY16, depicting a decrease of $ 425Mn or 54% during 1QFY17. BR. 115 Exports of services down 31% Exports of services witnessed a year-on-year decline of over 31% in the first two months of FY17,as per the data released by PBS. In absolute terms, exports of services fell to $ 712.75Mn in Jul-Aug from $ 1,040.21Mn recorded in the same months of FY16. Exports of services decreased 7.14% to $ 5.4Bn in FY16 on an annual basis. However, exports of services grew 10.09% year-on-year to $ 390.80Mn in August alone. The services sector has emerged as the main driver of economic growth, as its share increased from 56% of GDP in FY06 to 57.7% in FY15. Dawn. No gas outages plan so far: SNGPL Sui Northern Gas Pipelines Limited says it has so far no plan to start gas loadshedding in domestic or industrial sectors in Punjab and Khyber Pakhtunkhwa. “We have so far no plan of gas loadshedding in domestic or industrial sectors since there is no gap between demand and supply,” SNGPL Managing Director. Dawn. Gas shortages set to rise despite LNG imports, NA body told Domestic consumers in Punjab will face severe gas shortages during the upcoming winter due to the curtailment of supply from 10pm to 5am daily, the National Assembly’s Standing Committee on Petroleum was informed. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi told a meeting of the committee that the worst year of gas shortages for consumers in Punjab had started. Dawn. Kinnow exports to start on 25th Nov, 2016 Pakistan will start exporting kinnow in the last week of Nov’16 while exporters expect the fruit to fetch a little above $ 220Mn. Pakistan Fruit and Vegetable exporters have said that this year kinnow is of high quality and the crop is expected to get mature by the last week of Nov16. Whereas, during the last season, the country had exported 340,000 tons of Kinnow, fetching around $ 200Mn. The News. PIA plans to acquire eight new aircraft on lease The Pakistan International Airlines (PIA) has said that it aims at leasing up to 8 new aircraft in a move to upgrade its ageing fleet, as the govt. seeks to turnaround the loss-making flag carrier, long a drag on the federal budget. The govt. now plans to convert PIA into a limited company and list a 49% stake on the local stock exchange, meaning it will retain control of the business for at least 2 years. The News. Pakistan's new air carrier to start flying by year-end Serene Air has been granted a license by the air travel authority to establish a private airline in Pakistan. The airline would begin operations on domestic routes by Nov ‘16 or Dec’16, as per its plan submitted to the Civil Aviation Authority (CAA). However, the company has not yet been granted the Air Operator Certificate that will allow it to fly. Tribune. Change Daily 155 145 GBP, 17-Oct-16, EUR, 127.7 17-Oct-16, 115.3 135 125 105 95 USD, 17-Oct-16, 104.9 85 75 Oct-15 Jan-16 USD Apr-16 GBP Jul-16 Oct-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Change and growth take place when a person has risked himself and dares to become involved with experimenting with his own life." Herbert A. Otto Chart of the Day Sector Wise Break-Up of FDI Received in Pakistan (1QFY17) Power Oil & Gas Explorations Personal Services Tobacco & Cigarettes Communications Financial Business Pharmaceuticals & OTC Products Transport Equipment Trade Chemicals Beverages Textiles Transport Cement Construction 0.00 61.68 37.80 35.11 27.33 24.21 13.53 9.12 8.83 8.53 8.44 7.96 6.31 3.17 2.45 1.82 20.00 Values in $ Mn 40.00 60.00 80.00 Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained UBL wins Innovation Award in Hungary herein have been compiled or arrived at based upon information obtained from sources believed United Bank Limited (UBL) has won the Innovation Award at the Mastercard Innovation Forum held in Budapest, Hungary. This award to be reliable and in good faith. Such information has not been independently verified. recognizes the bank’s “global first” achievement of launching UBL MasterPass QR digital payment service. The forum explores how innovation changes lives and assesses the impact this transformation will have on the future. Tribune. 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