Pakistan Daily Economy Update - 19 February

Transcription

1. Feb 19 , 2021 KCCI - eBulletin KCCI urges govt to focus on providing business friendly environment President KCCI M Shariq Vohra, during a meeting with Karachi Iron & Steel Merchants Association (KISMA), assured members of KISMA delegation that the Karachi Chamber, in KCCI’s Proposals for Federal Budget FY22, will certainly be highlighting the issues pertaining to higher Regulatory Duty, Customs Duty & Additional Customs Duty, Further Sales Tax, CNIC condition and other critical taxation issues being faced not only by the Iron & Steel sector but also by many other sectors of the economy so that the govt. could pay attention to these pressing issues and accordingly announce relief in the next budget. KISMA delegation proposed that Sales Tax returns should be made half yearly or quarterly while withholding requirements for registered persons should be removed and no audits of registered persons for sales tax, income tax or withholding taxes should be conducted with a view to reduce the hardships. BR. Govt to take loan in RMB, dollar for ML-I Pakistan has agreed to borrow $ 6Bn in both Chinese and US currencies for Mainline-I (ML-I) project of Pakistan Railways - the largest project of CPEC. Pakistan has indicated that it will accept a mix of Chinese renminbi (RMB) and the US dollar. Tribune. K-Electric submits TORs to govt To resolve the issues related to K-Electric’s payables and receivables through arbitration, KE has submitted its TORs to the federal govt. and dropped its early demand of “the principle of reciprocity” and has also accepted that arbitration may take place in Pakistan, rather than in London. The Nation. SBP asked to set up cell to boost inflows into RDA PM Imran Khan, while speaking at the ceremony organised to mark the achievement of $ 500Mn milestone inflows in the Roshan Digital Account (RDA), has asked SBP to set up a cell in the central bank to facilitate overseas Pakistanis in response to their suggestions to increase the inflows in the RDA. He also recounted that the huge current account deficit of $ 20Bn inherited by the present govt. whose impact on exchange rate was adverse and consequently stoke inflation in the country. BR. SBP issues directions for quality data reporting in eCIB SBP has issued new guidelines to ensure quality data reporting in the Credit Information Bureau (eCIB) so financial institutions could make informed credit decisions. The eCIB of the SBP collects borrowers’ credit information and makes it available to financial institutions for making informed credit decisions. The News. SHC upholds order of Customs Appellate Tribunal Sindh High Court (SHC) has upheld the order of the Customs Appellate Tribunal that the FBR has no authority either to enhance or restrict exemption as it is the prerogative of the Parliament only. BR. FBR revises functions, powers of Members FBR has revised the powers and functions of the FBR Members including additional powers to the FBR Member Inland Revenue (Policy) to exercise authority of the Directorate General of Immovable Property, powers to make rules and recommend rewards to whistleblowers for detection of concealment or evasion of income tax, fraud, and corruption. BR. RTO Karachi collects 56% above January target Regional Tax Office (RTO) –I Karachi has posted a phenomenal growth in revenue, as it collected PKR 13Bn or 56% above the assigned target of PKR 8.33Bn for the month of Jan’21. The News. Construction projects to fuel PKR 1.76Tn activities, PM told PM Imran Khan has been apprised in a meeting that Investment of PKR 353.43Bn in the construction sector projects in Punjab alone would generate economic activities worth PKR 1,767.15Bn and create 315,678 job opportunities. Sindh chief secretary told the meeting that a total of 22 construction projects had been approved in the province. Dawn. Low localization pushes up auto parts import bill Massive imports of parts and accessories by new entrants under duty and tax incentives has caused a whooping jump of 79% in arrival of completely and semi-knocked down (CKD/SKD) kits to $ 468Mn in 7MFY21. Imports CBU cars (new and used) swelled by 166% to $ 116Mn while bike imports (used and new) rose 198% to $ 1.8Mn in 7MFY21. Dawn. Pakistan’s debt, liabilities jump to PKR 44.98Tn st \ Pakistan’s total debt and liabilities surged almost 10% to a staggering PKR 44.98Tn in the year ended 31 Dec’20 due to an increase in expenditures during the Covid-19 pandemic as compared with PKR 40.95Tn at end 2019. Debt and liabilities as percentage of GDP increased to 98.7% as compared with 98.1% in 2019. This (98.7%) is, however, notably low compared to the 20-year high of 106.8% on 31st Jun’20. Tribune. Investment in premium prize bonds rises 29% to PKR 22.8Bn Total investment in registered or premium prize bonds have surged 29% to PKR 22.8Bn during the last year as investors were seen offloading investments from unregistered instruments amid their ban. The sale of premium prize bonds of both denominations of PKR 40,000 and PKR 25,000 stood at PKR 17.71Bn by the end of 2019. The News. Cotton stockpiling in factories falls 34% Cotton arrivals in the factories of Pakistan have dropped by 2.93Mn bales or 34% to 5.61Mn bales by 15th Feb’21, a report released by Pakistan Cotton Ginners revealed. Arrivals from Sindh were down by 38.51% to 2.13Mn bales against 3.47Mn bales stockpiled in the ginning factories by the same period last year. The News. List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 18-Feb 18-Feb PKR PKR 158.93 159.10 -0.20% -0.06% KSE-100 index FIPI 18-Feb 18-Feb Pts. $ Mn 46,143 3.57 -1.34% NM** Crude (AP'19) 18-Feb $/bbl 59.46 -1.46% Gold (MA'19) 18-Feb $/oz 1,767.1 -0.90% Gold (10g) Local 18-Feb PKR 93,306 0.11% Silver (MA'19) 18-Feb $/oz 26.74 -2.02% Cotton(KHI)-40 kg 18-Feb PKR 11,789 0.00% Kibor-6M 18-Feb % 0.00 -7.57% 4-Feb $ Bn 20.07 WoW -0.44% Remittances Jul-Jan 21 $ Bn 16.48 24.08% Exports* Jul-Jan 21 $ Bn 14.24 5.53% Imports* Jul-Jan 21 $ Bn 29.21 6.92% Trade Balance* Jul-Jan 21 $ Bn -14.96 -8.27% Current Account Foreign Direct Inv. Jul-Dec 20 Jul-Dec 20 $ Bn $ Bn 1.13 0.95 155.66% -29.82% Forex Reserves YoY Jul-Dec 20 LSM Growth* % 8.16 % 8.19 Jul-Jan 21 Avg. CPI Discount Rate % 7.00 Jul-20 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 235 GBP, 18-Feb-21, 221.9 225 215 205 195 EUR, 18-Feb-21, 192.3 185 175 165 155 145 USD Feb-20 USD, 18-Feb-21, GBP May-20 EUR Aug-20 159.4 Source: KCCI Research ; Oanda.com Nov-20 Feb-21 Quote of the Day “A goal is a dream with a deadline.” Napoleon Hill Sindh Government's Revenue Break-up during 1HFY21 (PKR Bn) Provincial Taxes, 102.952, 24% Provincial Non-Tax, 4.765, 1% Federal Loans and grants, 10.103, 2% July 2020-January 2021: Mobile phones worth $ 1.135Bn imported Pakistan has imported mobile phones worth $ 1.135Bn during 7MFY21 compared to $ 760.58Mn in 7MFY20, showing growth of 49.32%. The overall telecom imports into the country increased by 34.38% by going up from $ 1.028Bn to $ 1.382Bn. BR. GI tag for Basmati rice: IPO submits reply to EU against India's claim The Intellectual Property Organization (IPO) has submitted its reply to the European Union (EU) against India's claim of having Geographical Indications (GI) tag for Basmati rice. EU will now invite both India and Pakistan within a couple of months and make an effort to sort out the issue amicably. BR. Pakistan decides to register pink salt as GI Pakistan has decided to register pink salt from the Salt Range Mountains of the country as Geographical Indications (GI) after registering Basmati rice. The Nation. IMC launches portal Indus Motor Company has introduced the Toyota Smart Purchase portal that allows customers the experience of making an online purchase from the company’s diverse product line up, sans a dealership visit. The News. Transfers from Federal Govt. under NFC Award, 319.909, 73% Total Revenue: PKR 437.72Bn Source: KCCI Research, MoF Trade Opportunity Mauritius has discontinued the use of plastic in any form and SBP reserves fall $ 59Mn to $ 12.8Bn there is a growing demand for supply of disposable wooden On 12th Feb’21, forex reserves held by SBP were recorded at $ 12.88Bn, down $ 59Mn compared with $ 12.95Bn in the previous week due to spoons and other materials. Members dealing in manufacturing of external debt repayments. Reserves held by commercial banks amounted to $ 7.17Bn while overall reserves held by the country stood at $ disposable wooden spoons and etc. are requested to kindly 20.06Bn. Tribune. share their company profile along with the membership number at res@kcci.com.pk.