Pakistan Daily Economy Update - 18 October

Transcription

1. Oct . 18, 2017 KCCI - eBulletin Regulatory duties on 356 items enhanced In a bid to contain the ballooning bill of imported goods, federal govt. has enhanced the regulatory duties by up to 350% on 356 essential and luxury items. The govt. has issued a notification, carrying a list of 731 items. Of the 356 tariff lines, 136 have been targeted for the first time while rates on 220 items, which were already subject to high regulatory duties, have been further jacked up. These regulatory duties are in addition to up to 20% custom duties rates that the federal govt. charges on their imports. There is no change in the regulatory duty rates of 375 items but due to merger of eight different notifications into one, the total number of tariff lines stands at 731. Tribune. RD imposed on 97 new items FBR has increased regulatory duty (RD), ranging between 5 to 80%, on the import of 713 items, including imposition on 97 new items, from Oct. 17, 2017. All RDs related SROs have been clubbed into a single SRO 1035(I)/2017 for increasing/imposing duties on the import of 713 items from the said date. List of RD as per SRO 1035(I)/2017 revealed that out of 713 items, regulatory duty has been imposed at the rate of 5% on imported items. BR. Government step to yield PKR 30Bn revenue Sources in the Finance Ministry has revealed that revenue and expenditure imbalance of around PKR 17Bn, that export incentive and import disincentive packages would create, would be met by diverting funds from ''elsewhere'' in order to ensure that it does not have any impact on the budget deficit of FY18. The govt. has estimated PKR 30Bn enhanced revenue collection through imposing a regulatory duty on 295 items. And the financial impact of export incentives is an estimated PKR 47Bn - a package upgraded to what it was till Jun.’17. BR. EU expands list of Pakistan’s products eligible for tax concessions European Union (EU) conferred a couple of more Pakistani products with a duty-free access under the GSP Plus status after the government took measures to improve its compliance with human rights standards. The GSP Plus facility has enhanced eligibility of Pakistani products for duty free access on additional 66% EU’s tariff lines and provided levelplaying field to our goods vis-à-vis similar products from competitors who have very liberal arrangements with the EU. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 17-Oct 17-Oct 17-Oct 17-Oct 17-Oct 17-Oct 17-Oct 17-Oct 17-Oct 17-Oct PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.41 107.30 40,725 -6.45 52.23 1,285.6 45,342 17.02 6,537 6.18% 0.01% 0.66% -0.16% NM** 0.13% -0.76% -0.57% -1.19% 0.00% 0.01% WoW -0.46% YoY 1.05% 10.84% 22.19% -29.75% -102.10% 154.74% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (DE'17) Gold (NO'17) Gold (10g) Local Silver (NO'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves $ Bn 19.67 6-Oct FY18 Jul-Sep 17 Remittances $ Bn 4.79 Jul-Sep 17 Exports* $ Bn 5.17 Jul-Sep 17 Imports* $ Bn 14.26 Jul-Sep 17 Trade Balance* $ Bn -9.09 Jul-Aug 17 Current Account $ Mn -2,601 Foreign Direct Inv. $ Bn 0.46 Jul-Aug 17 Jul-17 LSM Growth* % 12.98 % 3.39 Jul-Sep 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 Minister makes yet another promise of new buses Sindh Transport Minister has once again promised to introduce 600 new buses in the metropolis in the next three months. Talking to various delegations, he said the government had decided to seek proposals from transporters and transport companies during the current month so that after evaluating them the buses could be brought on city roads. This is the third time during the last seven months that the minister has made the same promise. Dawn. 105 Wheat loan outstanding soars to PKR 600Bn in FY17 With a bumper crop and rising stocks, the outstanding loan against wheat procurement soared to PKR 600Bn in FY17 from PKR 100Bn a decade earlier as the domestic production is increasing supported by improved procurement price. The subsidy has been successful in protecting growers from the impact of low international prices of their produce, however this policy would be challenging in the long run. BR. Disputed penalty on LNG terminal goes to arbitration The Ministry of Law and Justice has appointed arbitrators to resolve the issue of $ 30Mn penalty imposed on the Pakistan GasPort Consortium Limited (PGPC) by Pakistan LNG Terminal Limited (PLTL) for allegedly delaying completion of the country’s second LNG terminal at Port Qasim. The law ministry appointed the two arbitrators, one each from PLTL and PGPC after both the parties invoked the relevant clause of dispute resolution in the contract. Dawn. EUR, 17-Oct-17, 123.9 115 95 Oct-16 USD Jan-17 GBP EUR Apr-17 USD, 17-Oct-17, 105.3 Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "Whatever drives us, we all derive happiness from finding purpose." Robert Smith Chart of the Day 1.97 (FY09- 1.54 1.41 1.21 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 - 1.86 Provincial Share in Federal Revenues FY17) 1.09 RD on import of telecom equipment increased The govt. has increased RD on the import of wide range of telecom items/equipment including cellular set which would increase its prices. According to the SRO 1035 (I)/2017 issued by FBR, RD has been imposed on cellular mobile phone at PKR 250 per set. Further, 5% RD has been imposed on line telephone sets with cordless handsets, 20% on telephone cables, 20% on optical fibre cables, 40% on LCD & LED, 50% on video game consoles and machines, articles for funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment and 30% on articles and equipment for general physical exercise, gymnastics or athletics. BR. 125 1.00 Ministry directed to expedite financial laws’ drafting Finance minister Mr. Dar has said that the legislative reforms are part of the government’s agenda and their timely completion must be ensured. Finance ministry should be in close liaison with the ministry of parliamentary affairs and secretariats of the upper and lower houses. Ministry is assisting National Assembly and Senate secretariats in the processing of these legislative proposals and also working to make formulation/amendments in different rules compatible with present day requirements. The News. 135 0.63 Borrowing for budgetary support goes up 27% Borrowing by the government for budgetary support increased 27% YoY in the first 98 days of FY18, the SBP has reported. Borrowing during 1st Jul and 6th Oct amounted to PKR 479Bn compared to PKR 376Bn in the same period a year ago. Dawn. GBP, 17-Oct-17, 139.2 145 0.53 \ PM reviews impact of GSP Plus regime on trade Prime Minister Shahid Khaqan Abbasi has chaired a meeting to review the impact of GSP Plus regime on Pakistan's trade. The meeting while reviewing the overall impact of GSP Plus regime expressed satisfaction over the upward trajectory in trade volume which recorded an increase of 38.55% since 2013. The meeting was informed that the GSP Plus facility has enhanced eligibility of Pakistani products for duty free access on additional 66% EU's tariff lines and provided level playing field to our goods vis-à-vis similar products from competitors who have very liberal arrangements with the EU. BR. Values in PKR Tn Source: KCCI Research, MoF 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