Pakistan Daily Economy Update - 19 December

Transcription

1. December .19, 2018 KCCI - eBulletin British Airways to resume flights after 10 years British Airways has announced that it will be resuming flights to Pakistan from Jun’ 19 after a 10-year break, operating 3 flights a week between Islamabad and London’s Heathrow airport. The 1st flight from Heathrow will reach Islamabad on 2nd Jun’ 19. The airline has started ticket sales with return fares from £ 499. Dawn. Industrial policy soon: Dawood Amid focus on austerity measures to achieve revenue and fiscal deficit targets, the govt. has announced that a comprehensive industrial policy is on the cards to create an enabling environment for broad-based industrialization and encourage innovation in a wide range of sectors. The broad contours of the draft will be shared by end-Dec’ 18 or early-Jan’ 19 while the policy will be announced by Jun’ 19, Adviser Commerce Abdul Razak Dawood said. Pakistan has already started export of tractors to Mozambique and Zambia while its next target is motorcycles and electronic appliances exports from the country, said Dawood. Dawn. Team arrives in Beijing to attend CPEC's JCC meeting Federal Minister for Planning Makhdoom Khusro Bakhtiar along with a high-level delegation has arrived in Beijing to participate in the 8th meeting of CPEC's JCC, scheduled to be held on 20th Dec’ 18. The apex body of CPEC will review progress on ongoing projects and identify new initiatives in socio-economic development, industrial cooperation and development of Gwadar. BR. Sugar export condition waived The govt. has allowed sugar mills to export the commodity without starting cane crushing at full capacity by 15th Nov’ 18. The Ministry of Commerce (MoC), through a Memo No.7(2)/2012-Exp-III dated 10th Dec’ 18, has also enhanced the sugar export quota for sugar mills for FY19 by 100,000 metric tons from 1Mn tons to 1.1Mn metric tons. The condition has been waived to facilitate the sugar mills. BR. PKR 200Mn needed for removal of debris produced by anti-encroachment drive Amid serious criticism from the business community, coupled with serious concerns raised by political parties, the antiencroachment drive in Karachi continues but the city authorities are finding removal of debris beyond its financial capacity. They have sought a PKR 200Mn grant from the provincial govt. to remove the debris gathered after razing thousands of structures in the city. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 18-Dec PKR PKR 138.93 139.65 0.00% -0.18% KSE-100 index FIPI Pts. $ Mn 38,116 -1.83 -0.50% NM** Crude (JA'18) 18-Dec 18-Dec 18-Dec $/bbl 46.54 -8.78% Gold (DE'18) 18-Dec $/oz 1,252.9 0.89% Gold (10g) Local 18-Dec PKR 56,128 -1.33% Silver (DE'18) 18-Dec $/oz 14.60 0.39% Cotton(KHI)-40 kg 18-Dec PKR 9,431 0.00% Kibor-6M 18-Dec % 10.68 0.01% 7-Dec FY19 $ Bn 13.75 WoW -1.73% Remittances Jul-Nov 18 $ Bn 8.02 24.46% Exports* Jul-Nov 18 $ Bn 9.12 29.18% Imports* Jul-Nov 18 $ Bn 23.63 23.16% Trade Balance* Jul-Nov 18 $ Bn -14.51 -19.66% -4.84 0.88 -28.69% -35.21% 18-Dec Forex Reserves YoY Jul-Oct 18 $ Bn $ Bn Jul-Nov 18 Jul-Oct 18 LSM Growth* % % Jul-Nov 18 Avg. CPI Discount Rate % Nov-18 WoW= week, NCCPL, KSE, Sources: KCCI Research, PMEX ** Not Meaningful on week; Current Account Foreign Direct Inv. FBR allows POS registration up to 21st FBR has allowed retailers of textile and leather sectors to register their point of sales (POS) by 21st Dec’18 to link with FBR online system for real-time checking of sales and purchases, and avail sales tax rate at 6% instead of 9%. The FBR, in a notification, said the 185 registration of POS was closed by 27th Nov’18. However, registered persons are approaching the FBR for extension of time period for 175 getting their POS registered. The FBR has offered retailers to register their outlets and The News. -0.65 6.02 10.00 SBP, PBS* Major Currencies GBP, 18-Dec-18, 175.7 165 EUR, 18-Dec-18, 158.0 155 High input cost, water shortage hit cotton production Cotton production in the country has fallen 6.77% to 9.96Mn bales up to 15th Dec’ 18 due to water shortages and rise in input costs. 145 This year’s shortfall would mark the 4th consecutive year of production declines. Production in Punjab suffered a 9.64% decline, 135 falling to 5.92Mn bales while Sindh also fell short of targets, producing 4.04Mn, down 2.22%. Dawn. USD, 18-Dec-18, 139.0 125 115 Delayed payments irritate Chinese companies working under CPEC Almost eight or nine months have elapsed, but the govt. has failed to ensure timely payments to four Chinese power projects 105 installed under CPEC. The inordinate delay has irritated the Chinese companies. Finance Ministry had earlier indicated to arrange 95 PKR 22Bn for setting up a revolving fund, but under latest scenario, it has refused saying that Central Power Purchase Agency (CPPA) Dec-17 should arrange the required amount. The News. USD Two RLNG power plants: PC approves transaction on fast track basis The Privatization Commission’s Board has approved the transaction of 2 RLNG power plants (1,233MW Balloki and 1,230MW Haveli Bahadur Shah) on fast track basis and advertisement for financial advisor (FA) will be given in the next week. NEPRA granted RLNG tariff at PKR 6.428/unit for Balloki and PKR 6.420/unit for Haveli Bahadur Shah. The approved tariff for HSD-based generation is PKR 10.093/unit for Balloki and PKR 10.083/unit for Haveli Bahadur Shah. BR. \ Imported urea price: Ministry withdraws proposal The Ministry of Industries has reportedly withdrawn its proposal of fixing imported urea selling price at PKR 50/bag less than the domestic urea on pressure of local fertilizer industry. The decision was taken at a meeting between the local fertilizer industry and Ministry of Industries team headed by PM's Advisor on Commerce Abdul Razzak Dawood. The meeting agreed to fix the price of imported urea at PKR 1,712/bag. The meeting, warned the domestic fertilizer industry to release its stocks to the market so that farmers can get urea at fixed price. BR. Top auditor points out PKR 5.8Tn irregular spending The Auditor General of Pakistan (AGP) has pointed out mismanagement, irregularities and weak financial control of PKR 5.8Tn worth of public money by 44 federal ministries during audit year FY18. The objections over accounts are 87% higher than those of 36 ministries involving an amount of PKR 3.12Tn in FY17. Dawn. Govt. approves terror financing risk assessment The govt. has approved the terrorist financing risk assessment framework in a major move to comply with FATF requirements. The high-powered National Executive Committee (NEC) approved the assessment prepared jointly by National Counter Terrorism Authority (Nacta) and FIA in consultation with a number of relevant authorities. The country has till Oct’19 to come out of the list or be black-listed if the measures it would take could not satisfy the FATF’s team. The News. EIU forecasts annual growth to average 2.9% in five years UK-based advisory service Economist Intelligence Unit (EIU) has forecast Pakistan’s annual growth at nine-year low of an average 2.9% over the next five years, saying the new govt.’s monetary and fiscal measures would stifle demand. The EIU said IMF program, expected in mid-next year, will prompt the govt. to significantly cut planned development and social spending. The News. Area under wheat lags by 0.822Mn hectares: official Water deficit coupled with sugar mills operational drag has cut down the area under wheat by 0.82Mn as the crop has been sown over 8.01Mn hectares across the country against the target of 8.8Mn hectares for this season. The News. Mar-18 GBP Jun-18 EUR Sep-18 Dec-18 Source: KCCI Research ; Oanda.com " "Don’t be fooled by the calendar. There are only as many days in the year as you make use of. One man gets only a week’s value out of a year while another man gets a full year’s value out of a week." Charles Richards Chart of the Day Snapshot of Foreign Investment in Pakistan 43.719889103 3.5 3 2.5 2 2.746752334 2.5269 2.4502 2.305308234 2.115161005 2.150835914 1.634767525 1.698626946 1.5 0.820637606 1 0.5 0 -0.5 -1 0.987886401 0.927059396 0.8807 0.262092411 -0.05281072 -0.02013 -0.54409 -0.65242 Foreign Direct Investment( $ Bn) -0.008821507 -0.3306 Foreign Portfolio Investment($ Bn) Source: KCCI Research, SBP Disclaimer SECP amends intermediaries rules This report has been prepared by KCCI Research & Development Cell. The The SECP has amended the Intermediaries (Registration) Regulations, 2017 in the light of recommendations made by the Financial information contained herein have been compiled or arrived at based upon Action Task Force (FATF). So far, 193 intermediaries have been registered with the SECP under the Companies Act, 201. information obtained from sources believed to be reliable and in good faith. Intermediaries would ensure that their clients are not involved in any illegal or suspicious activities, implying money laundering or Such information has not been independently verified. terrorist financing. The News. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' understanding of the news item. The