Pakistan Daily Economy Update - 18 September

Transcription

1. Sep . 17-18, 2017 KCCI - eBulletin Proposals on how to improve package for exporters deferred ECC of the Cabinet has deferred proposals to improve/broaden Prime Minister's incentive package for exporters primarily because its financial impact has not been estimated. The PM has directed the Commerce & Finance Ministries and FBR to undertake a detailed analysis of the implementation of the package and to determine whether it would be financially feasible in the upcoming budget of FY19 including the condition that only a 10% increase in exports would merit the release of the incentives. BR – Sun. Lead managers for $ 1Bn sukuk issue to be hired by 15th Oct’17 The Ministry of Finance is seeking to appoint financial advisers or lead managers by 15th Oct’17 for the issuance of up to $ 1Bn sovereign Sukuk Islamic bonds on the international capital markets for 5 to 7 years. Finance ministry sought information from reputed international banks on the Sukuk format, structure and timing of issuance. The interested banks have to submit their proposals within next one month. Dawn-Sun. Investments in offshore companies: FBR indecisive about audit of taxpayers FBR appears vacillated to carry out audit against the taxpayers having investments in offshore companies, despite the lapse of over 10 months. For the purpose, FBR issued around 400 notices to the registered persons including businessmen, politicians, etc only in Karachi and initiated audit exercise under section 177 of Income Tax Ordinance, 2001 to produce complete details about the investments in offshore companies. However FBR officials have said that although the board had now become signatory to exchange information with 63 countries, the development of the system for the purpose was in initial stage therefore the exchange of information was presently a formidable task. BR – Mon. Deregulation policy framework: violators to face Nepra action The marketing of petroleum products in Pakistan are being deregulated in a gradual manner since the last 15 years. The govt., in this regard, is said to be committed to taking action against Oil Marketing Companies (OMCs) and dealers through OGRA in case deregulation policy framework is violated on marketing of diesel oil conforming to Euro-IV and Euro-V specifications. The govt. has stated that Pakistan needs to improve both quality and standards of the petroleum products being produced/imported by OMCs. BR – Mon. \ 18,000 bikers fined over PKR 2Mn in three days Value Change Daily Crude (NO'17) Gold (OC'17) Gold (10g) Local Silver (OC'17) Cotton(KHI)-40 kg Kibor-6M PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.41 105.80 42,787 14.25 50.44 1,320.4 45,000 17.59 6,377 6.16% Forex Reserves 31-Aug $ Bn 20.39 0.00% 0.36% 0.24% NM** 3.68% -0.17% 0.19% -0.93% 0.00% 0.00% WoW 1.93% YoY 13.18% 11.80% 24.85% -33.52% -210.12% 162.81% Jul-Aug 17 Remittances $ Bn 3.50 Jul-Aug 17 Exports* $ Bn 3.50 Jul-Aug 17 Imports* $ Bn 9.79 Jul-Aug 17 Trade Balance* $ Bn -6.29 Jul-17 Current Account $ Mn -2,053 Foreign Direct Inv. $ Bn 0.22 Jul-17 Jul-Jun 17 LSM Growth* % 5.60 % 3.41 Jul-Aug 17 Avg. CPI-FY18* Discount Rate % 5.75 Jul-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 12-Sep-17, 143.2 145 135 125 EUR, 12-Sep-17, 125.9 115 105 95 Sep-16 USD Dec-16 GBP Sep-17 Source: KCCI Research ; Oanda.com "Repetition doesn’t create memories. New experiences do." Brian Chesky Chart of the Day Pakistan lags behind in human capital development: WEF The ‘Human Capital Report 2017’ released by the Davos-based World Economic Forum (WEF) has revealed that Pakistan is among the world’s 38% countries which are facing a talent crises. The world has developed only 62% of its human capital as measured by this index. Across the index, there are only 25 nations that have tapped 70% of their people’s human capital or more. Dawn-Mon. 1,154 1200.00 1,150 Fiscal Operations of Provincial Governments (FY17) 693 1000.00 600.00 Banks, DFIs recover PKR 48Bn NPLs in H1 With a healthy growth of 56%, the banking sector's cash recovery against Non-Performing Loans (NPLs) rose to PKR 48Bn during 1HCY17 supported by improved economic activity. Recovery of NPLs was PKR 31.27Bn in 1HCY16, depicting a significant increase of 56% or PKR 17.42Bn. BR – Sun. 0.00 362 800.00 Water talks marred by disagreements Pakistan and India failed to reach any agreement on the Kishenganga and Ratle hydroelectric power plants issues prompting the World Bank to state that it will continue to work with both countries to resolve the issues in an amicable manner and in line with the Indus Water Treaty provisions. BR – Sun. China provides $ 10Bn credit line to Iran A Chinese state-owned investment firm has provided a $ 10Bn credit line for Iranian banks. The contract was signed in Beijing between China's CITIC investment group and a delegation of Iranian banks led by central bank president Valiollah Seif. The funds would finance water, energy and transport projects. Iran is vital to China's trade ambitions as it develops its trillion-dollar "One Belt, One Road" strategy aimed at dramatically boosting its ties to Europe and Africa. BR – Sun. USD, 12-Sep-17, 105.4 Jun-17 Quote of the Day Over a period of 3 days, the city’s traffic police impounded over 3,000 motorbikes and issued over 18,000 challans worth an accumulative total exceeding PKR 2Mn for violations of the law regarding use of safety helmets by motorcyclists. The News-Mon. Untamed finance is a continuing source of instability, inequality United Nations report ‘Trade and Development Report 2017’ has revealed that unregulated finance remains at the heart of today’s hyper globalized world, and the failure to tame it and address the deep-seated inequalities it has generated threatens efforts to build inclusive economies. Dawn-Mon. EUR Mar-17 400.00 246 Govt keen to strike more joint ventures with China: Pervaiz Federal Minister for Commerce and Textile while inaugurating the three-day 18th Textile Asia International Exhibition has said that the government is keen on having more joint ventures with China as well as becoming a business hub for the Middle East, Central and South Asia. The organisers claim that this is the largest textile and garment machinery show of Pakistan with as many as 600 foreign delegates under one roof. Dawn-Sun. Unit 15-Sep 15-Sep 15-Sep 15-Sep 15-Sep 15-Sep 15-Sep 15-Sep 15-Sep 15-Sep 224 To lure EU members, CPEC conference planned in Portugal In order to promote foreign investment in CPEC, an International Investment Conference is scheduled to be held in Porto, Portugal, between 12-15 Oct’17, aimed at promoting and bringing foreign investment especially from European Union (EU) countries. The conference titled “Bridging Trade and Investment Conference 2017” is being organised in collaboration with the Business Association of Portugal and other global partners including Board of Investment (BOI). The 2nd phase of the promotion campaign will then consist of a series of conferences in different EU countries. Tribune-Sun. Date / Period 437 Pakistan saves $ 4bn in loan repayments on yen strength Pakistan has managed to save at least $ 3Bn in loan repayments to Japan during the past four years as rise in Japanese yen value against dollar turned out to be a blessing in disguise. Yen’s value reached to one and half year high of 111 to 1 dollar and edged up nearly 9% on foreign exchange markets last year, the highest among 10 industrial nations. The News-Sun. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 754 Rupee depreciation report submitted The inquiry report about the rupee’s sudden depreciation against the dollar on 5th Jul’17 has been submitted to MoF. However, banking sources said the report did not hold anyone responsible for the depreciation of 3.1% in a single day. The sudden drop in the rupee’s value had taken government by surprise. Dawn-Sun. Economic Indicators 200.00 -200.00 Punjab Sindh Revenue Expenditure Values in PKR Bn KP Balochistan Budget Deficit 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