Pakistan Daily Economy Update - 2 August

Transcription

1. Aug . 2, 2017 KCCI - eBulletin Fighting tax evasion will be priority, says new PM Delivering speech in the House after becoming the prime minister-elect, Shahid Khaqan Abbasi has said that strengthening economy and agriculture sector, promotion of tax culture, bringing more investment and integrated security would be his top priorities during the interim period of 45 days. The Prime Minister-elect also announced that there would be no load-shedding after Nov.’17. However, load-shedding will continue in the areas where people are not paying electricity bills, adding that 10,000MW electricity will be added to the national grid by Dec.’17. BR. Headline inflation inches up by 2.91% The headline inflation inched up by 2.91% in Jul.’17 over Jul.’16 due to a considerable increase in health and education cost. The CPI inflation data released by PBS noted an increase of 0.34% during Jul.’17 over previous Jun.’17. The group-wise major commodities which contributed to the increase in inflation by 2.91 % in Jul.’17 over Jul.’16 were increase in food & non-alcoholic beverages cost by 0.71 %, non-perishable food items by 1.58 %, clothing & footwear by 3.89 %, and housing, water, electricity, gas and other fuels by 5.29 %. BR. PM’s ouster raises risk profile for investors: Moody’s Political strife in Pakistan is constraining Pakistan’s credit profile, Moody’s Investors Service said in an email to Bloomberg, adding the removal of Nawaz will detract from policymaking in economic and fiscal matters and reduce the effectiveness of government policy in general. However, it is not expected to dent ally China’s planned infrastructure investments in Pakistan. The News. Exporters urged to sign up for REX System In a seminar organized by TDAP, exporters have been asked to register themselves with the Registered Exporter System (REX) by the end of 2017 if they want to continue availing the European Union’s (EU) GSP+ facility. The new system allows exporters to issue their own statement of origin and they would not need the Certificate of Origin (COO) from TDAP. Under this system, there would be a onetime registration and thereafter TDAP will stop issuing certificate of origin as the spirit of this system is basically self-regulation. Dawn. ‘Online transfer of dividend mandatory after Oct 31’ SECP has granted all listed companies one-time relaxation from the requirement of paying cash dividend through electronic mode directly into the bank accounts of shareholders till Oct. 31, 2017. The Companies Act 2017, promulgated on May 30, 2017, requires that any dividend declared by a company must be paid to its registered shareholders or to their order within such period and in such manner as may be specified in terms of section 242 of the Act. Dawn. Services account posts $ 3.5Bn deficit The country's services trade posted $ 3.5Bn deficit during FY17 compared to $ 3.41Bn in FY16, depicting a slight increase of 5% or $ 167Mn, mainly due to higher imports. Although Pakistan received less inflow on account of Coalition Support Fund (CSF), the country's services exports increased by 1.75% to reach $ 5.56Bn in FY17 up from $ 5.46Bn in FY16 following the improved performance of telecommunication sector. Similarly, services sector imports surged by 3% to $ 263Mn to reach $ 9.13Bn in FY17 as against $ 8.87Bn in FY16. Month on Month basis, services trade deficit stood at $ 408Mn during Jun.’17 with $ 851Mn with imports and $ 443Mn exports. BR. At least three more LNG terminals at PQ under consideration Having imported over 6.1Mn tons of LNG in the last two years through country's first LNG terminal located at Port Qasim, Pakistan is preparing to build at least 3 more LNG terminals at Port Qasim. The work on second LNG terminal is also going on which is expected to become operational by early 2018. Pakistan has imported and regasified approximately 284.7Bn cubic feet of gas into gas distribution network. BR. Number of 3G, 4G users in Pakistan reaches 42.08Mn mark The number of 3G and 4G users in Pakistan have reached 42.08Mn by the end of Jun.’17. Total count of Jazz 3G users stood at 12.44Mn in Jun.’17 while Jazz 4G users jumped to 937,209 during period under review. Zong 3G subscribers decreased to 8.64Mn in Jun.’17; however, its 4G users jumped to 4,041,766. The number of 3G users on Telenor network came down to 10.45Mn in the aforementioned period; however, number of its 4G users jumped to 607013 in the same period. Ufone added 124,012 3G users on its network during Jun.’17 as they reached 4.96 Mn. BR. LTUs, RTOs & CRTOs: Chief Commissioners to submit comprehensive plan \ The Chief Commissioners of Large Taxpayer Units (LTUs), Regional Tax Offices (RTOs) and Corporate RTOs (CRTOs) would submit comprehensive plan with the FBR to achieve monthly and quarterly revenue collection targets for FY18. In this regard, FBR has decided to convene two days Chief Commissioners' conference on Aug. 4-5, 2017 at FBR (Headquarters), Islamabad. FBR has shown remarkable performance during the first month of FY18 while chief commissioners are expected to come up with a detailed strategy/ work plan for achieving targets in the remaining 11 months. BR. Coal-fired CPPs: Nepra approves upfront tariff of PKR 7.1129 kWh Nepra has approved upfront tariff of PKR 7.1129 kWh for coal-fired Captive Power Plants (CPP), which will remain applicable till Dec. 31, 2018. The tariff will comprise of reference fuel cost component of PKR 5.7310 kWh and fuel cost component of PKR 1.3819 kWh. The fuel cost component for imported coal will be subject to adjustment for variation in the delivered coal price and calorific value from time to time in accordance with the coal price adjustment mechanism approved by the Authority dated Sep. 23, 2016. The fuel cost component for local coal will be subject to adjustment for variation in the delivered coal price and calorific value from time to time in accordance with the prescribed adjustment mechanism. BR. ‘Online transfer of dividend mandatory after Oct 31’ SECP has granted all listed companies one-time relaxation from the requirement of paying cash dividend through electronic mode directly into the bank accounts of shareholders till Oct. 31, 2017. The Companies Act 2017, promulgated on May 30, 2017, requires that any dividend declared by a company must be paid to its registered shareholders or to their order within such period and in such manner as may be specified in terms of section 242 of the Act. Dawn. Exhibitions considered vital for growth, development Inaugurating the 8th edition of the Industrial Electronic and Electrical Engineering Exhibition of Pakistan (IEEEP Fair 2017) at the Karachi Expo Centre, KCCI President Shamim Ahmed Firpo termed industrial exhibitions in Karachi vital for economic growth and industrial development in the city and the country at large. Against this backdrop, frequent organization of such fairs will augment prosperity of other sectors of the economy, he said. Tribune. CPEC forum held to explore beauty business opportunities in Pakistan The first China-Pakistan Economic Corridor (CPEC) Forum for Beauty Business was held at China National Convention Center (CNCC) in Beijing to explore business and trade opportunities in the cosmetics industries of Pakistan. Addressing the audience, speakers said that Chinese businessmen and companies associated with cosmetic and beauty industries were keen to set up cosmetics production units in Pakistan, as evident from the overwhelmingly large attendance of representatives of beauty and cosmetics industry of China at the forum. Pakistani people would be able to learn about the Chinese experience in the beauty industry and get good job opportunities, they said. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank 1-Aug PKR 105.40 0.00% USD-Open MKT 1-Aug PKR 107.40 0.00% KSE-100 index FIPI Pts. $ Mn 46,533 -6.61 1.14% NM** Crude (AU'17) 1-Aug 1-Aug 1-Aug $/bbl 48.78 -2.79% Gold (JY'17) 1-Aug $/oz 1,270.7 -0.02% Gold (10g) Local 1-Aug PKR 43,628 -0.59% Silver (JY'17) 1-Aug $/oz 16.70 -0.69% Cotton(KHI)-40 kg 1-Aug PKR 6,805 0.00% Kibor-6M 1-Aug % 6.15% 0.00% Forex Reserves 21-Jul $ Bn 20.40 WoW -2.06% Remittances Jul-Jun 17 $ Bn 19.30 -3.08% Exports* Jul-Jun 17 $ Bn 20.45 -1.63% Imports* Jul-Jun 17 $ Bn 53.03 18.67% Trade Balance* Jul-Jun 17 YoY -36.32% $ Bn -32.58 Jul-Jun 17 $ Mn -12,098 $ Bn 2.41 Jul-Jun 17 Jul-May 17 LSM Growth* % 5.69 % #N/A Jul-17 Avg. CPI-FY17* Discount Rate % 5.75 Jul-17 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -148.57% 4.58% Current Account Foreign Direct Inv. Major Currencies 145 GBP, 1-Aug-17, 138.7 135 125 EUR, 1-Aug-17, 124.0 115 105 USD, 1-Aug-17, 105.0 95 Aug-16 USD Nov-16 GBP EUR Feb-17 May-17 Aug-17 Source: KCCI Research ; Oanda.com Quote of the Day "Bring your desires down to your present means. Increase them only when your increased means permit." Aristotle Chart of the Day N ET F OREIGN DIRECT IN VESTMENT R ECEIPTS FROM TOP TEN S ECTORS (FY17) 795 Power 493 Food 468 Construction 158 Oil & Gas Explorations 143 Electronics 64 Financial Business Transport 53 Tobacco & Cigarettes 51 Automobiles 41 Trade 32 0 200 400 600 800 Source: KCCI Research, SBP Value in $ Mn 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