Pakistan Daily Economy Update - 19

Transcription

1. Jul . 19, 2017 KCCI - eBulletin GSP Plus withdrawal looming large Pakistan is reportedly facing a potential threat of withdrawal of GSP Plus incentives extended by the European Union (EU) due to human rights violations, killing of those accused of blasphemy and executions by military courts. The role of Human Rights Ministry is being criticized for not taking appropriate steps to implement UN Conventions with respect to human rights. For this purpose, a Treaty Implementation Cell (TIC) has been established under the chairmanship of Attorney General of Pakistan. The govt. has planned to invite Member European Parliaments (MEPs) to visit Pakistan in Sept.’17 to hold talks and seminars on Pakistan EU strategic relationship. They will also be taken to areas where steps have been taken on the ground to improve the HR conditions. BR. Boost in exports: govt. considering withdrawing condition The govt. is considering withdrawing the condition of a 10% increase in exports for availing incentives announced in PKR 180Bn PM Package for Exporters, as it admitted the package has failed to boost exports. Commerce Ministry advocated the decision which has been backed by the Textile Industry Ministry. Commerce Minister Khurram Dastagir has said that out of PKR 180Bn package, 140Bn would be given to exporters in cash over time while PKR 40Bn would be given in the shape of tax exemptions during FY18. However, Finance Ministry has further revealed that PKR 15.5Bn have been earmarked for the implementation of the Prime Minister's package in the budget FY18 and more money would be released if exporters' claim exceed this amount. BR. Parliamentary panel concerned over steep decline in exports A parliamentary panel has expressed serious concerns over country’s export decline due to non-provision of sales tax refunds and non-availability of basic facilities, rendering the textile sector uncompetitive, besides causing an increase in trade deficit. In this regard, National Assembly Standing Committee on Textile Industry has strongly recommended that gas and power tariffs should be brought down at par with regional competitors to make textile sector competitive in the international market. Textile exporters say that the industry lost 15% exports due to technological disadvantage over competitors. The textile industry is also at disadvantage by 25% as compared to 12% subsidies given to their competitors and 7% taxes imposed in Pakistan, besides other surcharges. Despite shortage of cotton by 3.8Mn bales, 4% customs duty and 5% sales tax are reimposed. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 18-Jul 18-Jul 18-Jul 18-Jul 18-Jul 18-Jul 18-Jul 18-Jul 18-Jul 18-Jul PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.40 107.10 45,636 -1.25 46.46 1,241.4 43,628 16.21 6,645 6.15% 7-Jul $ Bn 21.45 0.01% 0.09% 2.50% NM** 0.58% 0.65% 0.29% -1.81% 0.00% 0.00% WoW 0.37% YoY -3.08% -1.63% 18.67% -36.32% -132.03% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-Jun 17 Remittances $ Bn 19.30 Jul-Jun 17 Exports* $ Bn 20.45 Jul-Jun 17 Imports* $ Bn 53.03 Jul-Jun 17 Trade Balance* $ Bn -32.58 Jul-May 17 Current Account $ Mn -10,641 % 4.16 Avg. CPI-FY17* Jul-Jun 17 May-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 After petrol, govt plans to introduce higher grade of diesel The government has decided to introduce better quality of High Speed Diesel (HSD) under the deregulated regime of oil marketing companies (OMCs) and dealer margins, which will improve efficiency of vehicles’ engines. The Ministry of Petroleum has drafted a summary to be tabled before the ECC for approval. At present, low quality HSD is being used in Pakistan, whereas other countries have moved on to Euro3, 4, and 5. Earlier, the government introduced Research Octane Number (RON) 92 for petrol, replacing the earlier RON 87. Tribune. Country to have competitive electricity market by 2020 Pakistan has planned to reform its electricity market in line with international practices by introducing a strategy, which will help improve energy efficiency and open opportunities for more foreign and local investors. Central Power Purchasing Agency (CPPA) has finalized a Competitive Trading Bilateral Contract Market (CTBCM) plan, which if approved, will transition the country’s current single-buyer electricity market into a competitive one. The plan would be presented before National Electric Power Regulatory Authority (NEPRA) for approval this month. The News. Turkish firm to develop two solar plants in Pakistan Turkey's Zorlu Energy Electricity Generation Company has announced that they have received approval for building two solar power plants in Pakistan. Each power plant will have a 100MWs capacity and will be developed through the subsidiaries of Zorlu Energy, Zorlu Sun Power Limited and Zorlu Renewable Pakistan Limited. In Jan.’18, Zorlu and Pakistan agreed to a 100MWs Quaid-e-Azam solar project. The latest 200MW project will mount up the Turkish firms’ solar capacity in Pakistan to 300MWs. BR. \ Work on PKR 8Bn Blue Line project to begin in Nov’17 Sindh CM Mr. Murad has directed the transport department to prepare a detailed design of the Bus Rapid Transit System’s Blue Line project by Sept‘17 so that work on the project could begin in Nov‘17. The transport minister said that the Blue Line project would start from Gurumandir to Al Asif Square in Sohrab Goth. This would an important project for the city and would cost around PKR 8Bn. Length of the project is 11.80 km, of which 6.6km would be elevated. Around 357,000 people would commute on a daily basis upon completion of the project. Dawn. Chinese interested in Sindh’s transport sector The China Harbour Engineering Company, based in Pakistan, has shown its interest in investing in Sindh’s transport sector. A delegation of the company called on Sindh Minister for Transport Syed Nasir Hussain Shah, and discussed Bus Rapid Transport and Circular Railway Revitalisation Project among other matters. Tribune. Customs procedures being upgraded Pakistan is taking measures to improve and upgrade customs procedures in line with international standards. Finance Minister Mr. Dar informed World Customs Organisation (WCO) Secretary-General Kunio Mikuriya that steps were also being taken to facilitate and promote border trade. Referring to ‘CASA-1000’, TAPI and the Integrated Transit and Trade Management System (ITTMS) projects, Mr. Dar said these initiatives would further integrate the Pakistan economy with the region. Dawn. E-Banking transactions reach PKR 9.3Tn: SBP All channels of eBanking processed 162Mn transactions as it reached PKR 9.3Tn by the end of Mar.’17 showing a growth of 7.3% by volume and 1.1% by value, respectively from previous quarter. The volume and value of large value transactions processed through PRISM system stood at 253,795 and PKR 69.8Tn, respectively. These transactions showed 4% decline in volume and an increase of 20% in value as compared to the previous quarter. In the composition of these transactions, the Inter Bank Fund Transfers contributed 74% in volume and 58% in value, while govt. securities trade transactions contributed 9% in volume and 24% in value. The Retail Cheques Clearing Batches stood at 16% in volume and 18% in value of these transactions, respectively. BR. 175 165 155 145 135 125 115 105 95 85 75 Jul-16 GBP, 18-Jul-17, 137.3 EUR, 18-Jul-17, 121.5 USD, 18-Jul-17, 105.2 Oct-16 USD GBP Jan-17 EUR Apr-17 Jul-17 Source: KCCI Research ; Oanda.com Quote of the Day "It is not only for what we do that we are held responsible, but also for what we do not do." Moliere Chart of the Day FOREIGN DIRECT INVESTMENT IN PAKISTAN ( FY02-FY17) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Source: KCCI Research, SBP Value in $ Bn 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 ECC allows export of 0.3Mn tons sugar sources believed to be reliable and in good faith. Such information has not been Economic Coordination Committee has given approval to export 0.3Mn tons of sugar, in addition to the export quantity independently verified. already approved. The export quota would be approved and monitored by the SBP on first come first serve basis. The Nation. 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