Pakistan Daily Economy Update - 19 June

Transcription

1. June 19 , 2021 KCCI - eBulletin 0.21% -0.19% KSE-100 index FIPI 18-Jun 18-Jun Pts. $ Mn 48,239 -4.09 0.17% NM** Crude (AP'19) 18-Jun $/bbl 71.64 0.84% Gold (MA'19) 18-Jun $/oz 1,769.0 -0.33% Gold (10g) Local 18-Jun PKR 95,850 0.00% Silver (MA'19) 18-Jun $/oz 25.97 0.44% Cotton(KHI)-40 kg 18-Jun PKR 13,182 0.00% Kibor-6M 18-Jun % 7.70 0.01% Forex Reserves 11-Jun $ Bn 23.59 WoW 0.03% Remittances Jul-Apr 21 $ Bn 24.25 29.01% Exports* Jul-May 21 $ Bn 22.56 13.96% Imports* Jul-May 21 $ Bn 50.05 22.50% Trade Balance* Jul-May 21 $ Bn -27.49 -30.53% Trade Balance* Foreign Direct Inv. Jul-Apr 21 Jul-May 21 $ Bn $ Bn 0.77 1.75 116.60% -27.70% YoY Jul-Apr 21 LSM Growth* % 12.84 % 8.83 Jul-May 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 235 215 205 195 175 PABC eyes PKR 3.3Bn in public debut on PSX Pakistan Aluminium Beverage Cans (PABC) is planning to raise PKR 3.3Bn through an IPO on the Pakistan Stock Exchange by the end of this month, the company said. Book building will take place on 22nd -23rd Jun’21, followed by public subscription on 29th -30th Jun’21. The News. CM Murad Ali Shah seeks World Bank’s help to install oxygen plant, procure ventilators for Covid patients Sindh CM Murad Ali Shah has asked the World Bank to allow the provincial govt. to utilise $ 11Mn saved from various WB-assisted projects for the installation of an oxygen plant and procurement of other Covid-related equipment in the province. He said there were only 668 ventilators in the govt. hospitals of Sindh and due to the Covid emergency, the provincial govt. had planned to procure at least 500 more ventilators. The News. FDI plunges 28% year-on-year in 11MFY21 Foreign Direct Investment (FDI) fell sharply by 27.7% by $ 671Mn to stand at $ 1.75Bn during 11MFY21, compared to $ 2.42Bn in 11MFY20. FDI inflows amounted to $ 2.768Bn as against an outflow of $ 1.017Bn. BR. USD, 17-Jun-21, 157.3 165 155 145 USD Jun-20 GBP Sep-20 EUR Dec-20 Source: KCCI Research ; Oanda.com Mar-21 Jun-21 Quote of the Day “Everyone wants to live on top of the mountain, but all the happiness and growth occurs while you’re climbing it.” Andy Rooney Budgeted Development Expenditure in Sindh Budget - PKR Bn 150 100 50 0 Annual Development Program Federal PSDP Accounts FY20 Budget FY21 Revised Budget FY21 Budget FY22 71.2 200 Total Accounts FY20: PKR 103.26Bn Revised Budget FY21: PKR 160.3Bn Budget FY22: PKR 329Bn 54.6 250 38.3 300 12.4 Pakistan, UN chief seek debt suspension for mid-income nations Pakistan has strongly supported UN Secretary General António Guterres’ suggestion that middle-income countries should have their debts suspended to cope with the social and economic impact of the coronavirus. The UN chief, while explaining his proposal to “suspend mid-income nations’ debts into 2022,” pointed out that many among them were already dealing with mounting debt before the pandemic. Dawn. EUR, 17-Jun-21, 189.1 185 Tarin backs launch of new auto policy Finance Minister Shaukat Tarin has assured his full backing to the final launch of the new auto policy. The Minister for Industries briefed that the purpose of the new policy is to provide affordable small cars (850cc-1000cc) as well as to promote localisation in domestically assembled cars and produce exportable surplus of auto-parts of 2-3 wheelers. The govt. is also considering providing additional custom duty (ACD) relief up to 1000cc to attract new entrants in the industry. BR. PM says cheap electricity is key to prosperity Lauding the efforts of Pakistani and Chinese engineers and workers for the construction of 4,320 megawatt Dasu hydropower project, PM Imran Khan has said this dam is vital for the development of Pakistan, as it will meet the country’s electricity need at a very reasonable tariff. He said that inexpensive power generation from dams brings prices of daily use commodities down. Dasu hydropower project includes construction of a 4,320MW plant on the Indus River near Dasu town in KP’s Upper Kohistan district. Dawn. GBP, 17-Jun-21, 220.1 225 9.0 SESSI’s benefits to be paid through mobile banking, internet banking, ATM machine Sindh Labour Minister Saeed Ghani has said that we were crossing another milestone in the Department of Labour since the 18th amendment where dozens of new laws have been enacted to strengthen transparency and workers’ rights, as well as to strengthen the relationship between employers and workers. He expressed these views while addressing a ceremony held to sign the ecooperation agreement between CCA and 1-Link at the Sindh Employees Social Security Institution (SESSI) headquarters. BMG Chairman Zubair Motiwala and other members of SESSI’s governing body were also present on the occasion. He also said that the Sindh govt. has raised the minimum wage to PKR 25,000 and if the industrialists object to it, issues can be resolved by sitting down. The Nation-BR. \ 157.07 156.95 5.4 PSX’s new future derivatives to improve market depth New futures eligibility criteria and the 90-day maturity deliverable futures contracts are expected to increase volumes and liquidity in the Pakistan Stock Exchange (PSX), its managing director said. 90-day DFC shall open each month such that the market shall have three different maturities (current month expiry, next month expiry and last month expiry) at the start of each contract month. The News. PKR PKR 8.3 SECP issues guidelines for green bonds issuance in Pakistan SECP has unveiled guidelines for corporate sector to raise funds from capital market to finance or refinance projects that contribute positively to the environment. All issuers who are eligible to issue debt securities, including sukuk either by way of public offer or private placement are eligible to issue green bonds while ensuring compliance with applicable regulatory framework. Proceeds of green bonds will be utilised to finance or refinance projects related to renewable and sustainable energy, energy efficiency, pollution prevention and control, biodiversity conservation, water management, and green buildings. The News. Change Daily 18-Jun 2.5 Online fund transfers: SBP deputy governor says banks now under price control SBP’s Deputy Governor Sima Kamil has said that the country's banks have now been brought into a regulated structure of charging customers for online fund transfer services, calling it a "price-control" mechanism as situation around Covid-19 had eased in the country. BR. Value 18-Jun 252.5 Misuse of RRT by export-oriented sectors: FBR to conduct taxpayers’ physical verification FBR has decided to conduct taxpayers’ physical verification, falling in the five export-oriented sectors to examine the utilization of utilities connections in the products manufacturing process after the misuse of Reduced Rate Tariff (RRT) by manufacturers. BR. Unit USD-Interbank USD-Open MKT 170.0 Govt mulls tax relief to make cars up to 1,000cc affordable Tax relief for the auto sector is expected to be enhanced for cars up to 1,000cc in the Finance Bill 2021, with the aim of promoting affordable cars and localization in the country. The Finance Bill proposed tax measures for vehicles up to 850cc including exemption of Additional Customs Duty (ACD) and Regulatory Duties (RD). In a meeting chaired by Federal Minister for Finance Shaukat Tarin on Friday, Federal Minister for Industries Makhdum Khusro Bakhtyar gave a detailed briefing on the new auto policy. Dawn. Date / Period 113.0 Concealment of income tax: IR officers’ powers to arrest any person withdrawn The govt. has taken the final decision to delete all income tax provisions from the Finance Bill, 2021, relating to the powers of the Inland Revenue officers to arrest any person under the proposed Section 203A (power to arrest and prosecute) of the Income Tax Ordinance, 2001. It is reliably learnt that the decision has been taken at the top level and all relevant sections would be deleted from the Finance Bill. Following section would be withdrawn from the Finance Bill 2021: Section 203A (power to arrest and prosecute); Section 203B (procedure to be followed on arrest of a person); Section 203C (special judges); Section 203D (cognizance of offences by special judges), and Section 203E (special judge, etc to have exclusive jurisdiction). BR. List of Indicators 88.3 FBR forms anomaly committee to allay businessmen’s concerns FBR has constituted an anomaly committee to identify and remove anomalies in the finance bill FY22, in a move to allay concerns of trade and industry that anticipates negative impact of budgetary measures on the economic recovery. The anomaly committeetechnical will be chaired by Naeem Akhtar Sheikh, UHY Hassan Naeem & Co whereas the co-chairmen of the anomaly committeetechnical will be Muhammad Tarique, Member (IR-Policy) and Hamid Ali, Member (Customs-Policy), FBR. The other members of the committee are include Shariq Vohra President KCCI among others. Technical and business anomalies can be submitted on or before close of office hours on 22nd Jun’21 to the co-chairmen, anomaly committees. The News. Foreign Projects Assistance Source: KCCI Research; GoS Note Pakistan Post is being tipped as a key player by the federal govt. in providing quality service to the sellers for shipping their products to Amazon warehouse abroad. Registered sellers are requested to kindly share their company profile and contact details at res@kcci.com.pk.