Pakistan Daily Economy Update - 20 July

Transcription

1. Jul . 20, 2016 KCCI - eBulletin Industrialists decry water shortage in Site area Chairman, Businessmen Group (BMG) and former KCCI president, Siraj Kassim Teli, has said that more than 2,500 industries List of Indicators in Site Industrial Area is closed and more are; at the verge of closure due to non-availability of water. The Chairman said that Chief Minister Sindh ordered local govt. minister and the MD to provide sufficient water to the Site industry. However USD-Interbank not a single drop of water has been provided due to which entire SITE industry had gone out of production. BR. USD-Open MKT IP gas pipeline project: Pakistan, Iran agree to amend GSPA Pakistan and Iran have agreed to amend the Gas Sale and Purchase Agreement (GSPA) for extension in the timeframe to finalize workable implementation schedule for the iced Iran-Pakistan (IP) Gas Pipeline project. Giving the background, the sources said a meeting between Iranian Petroleum Minister and Minister P&NR was held on 27 March 2016 during the visit of the President of Iran to Pakistan on Mar. 26 – 27, 2016 wherein both the Ministers discussed actions to resume stalled negotiations on the IP Gas Pipeline project including extension of timeline of the project and price negotiation. BR. Date / Period Unit Value Change Daily 19-Jul PKR 104.85 0.00% 19-Jul PKR 104.86 0.06% KSE-100 index FIPI 19-Jul 19-Jul Pts. $ Mn 39,209 1.60 -0.11% NM** Crude (JU'16) 19-Jul $/bbl 45.46 -2.30% Gold (MY'16) 19-Jul $/oz 1,332.8 0.28% Gold (10g) Local 19-Jul PKR 45,178 2.35% Silver (MY'16) 19-Jul $/oz 20.00 -0.42% Cotton(KHI)-40 kg 19-Jul PKR 7,004 0.00% 19-Jul % 603.00% 596.97% 8-Jul $ Bn 23.06 -0.10% Jul-Jun 16 $ Bn 19.90 7.84% Exports* Jul-Jun 16 $ Bn 20.80 -12.11% Imports* Jul-Jun 16 $ Bn 44.76 -2.33% Trade Balance* Jul-Jun 16 $ Bn -23.96 -8.13% Current Account Avg. CPI-FY16* Jul-May 16 Jul-Jun 16 $ Mn % -2,486 2.86 -1.18% Kibor-6M Ambassador asked to encourage Dutch firms to invest in Pakistan President Mamnoon Hussain urged the Pakistan's ambassador-designate to Netherlands to encourage foreign investment in the country by informing the Dutch about the friendly and conducive business environment in Pakistan. The President, Forex Reserves while talking to Pakistan's Ambassador-designate to Netherlands Iffat Imran Gardezi at the Aiwan-e-Sadr, asked the ambassador to also highlight Pakistan's improved law and order situation after operation Zarb-e-Azb. Daily Times. Remittances Five sectors: zero-rating to make no contribution to growth: FBR FBR Chairman has categorically stated that reinstatement of zero-rating regime for five exports-oriented sectors would have no contribution to growth in exports and exporters would soon invent further excuses for the decline in exports. The exporters are terming the non-availability of zero status as one of the major reasons behind decline in exports, however the FBR added that there are several other reasons behind the decline in exports, including crunch in international market, low investment, shortage of skilled labor and availability of gas and electricity. BR. Commodity export: Centre, provinces disagree on sharing wheat subsidy The federal govt. and provinces have failed to arrive at a consensus on the formula for enhancing the subsidy on wheat export. The plan.ned increase from the current $ 100 per ton of wheat to $ 130 per ton is at the center of contention as the proportion to be shared between the center and provinces has yet to be determined. “The center and two provinces – Punjab and Sindh – failed in a recent meeting to reach a consensus on sharing the increase in wheat subsidy,” said an official who was part of the meeting. Tribune. Consumer protection essential for unleashing potential of e-commerce Commerce Minister Khurram Dastgir has said that consumer protection is essential for unleashing true potential of ecommerce, which is going to assume greater importance in international trade in future. Addressing a roundtable discussion on ‘E-Commerce for Development’ in a meeting of United Nations Conference on Trade and Development (UNCTAD), the Minister appreciated the ‘E-trade for All’ initiative of UNCTAD and said it would provide ample opportunities to the developing nations to catch up with those nations which are already reaping dividends from the widespread use of e-commerce. The size of e-commerce in Pakistan is expected to reach $ 1Bn by 2020, said Commerce Minister on July, 19. 2016. The Nation/Dawn. Import of used cars surge 67% to 53,600 in 2015/16 Pakistanis spent around PKR 75Bn on the import of used cars; importing around 53,600 cars during FY16 as against imports of 32,100 cars in FY15, showing increase of 67%. During FY16, the auto industry returned to a production level of 216,000 vehicles, a level which was last witnessed in FY07. Import of used cars is the biggest impediment to bringing new investments in auto sector, either by new entrants, assemblers or auto part vendors. The News. Banking deposits of retailers, wholesalers down 7% Bank deposits by retailers and wholesalers fell during FY16 as the withholding tax imposed on banking transactions by nonfilers of tax returns encouraged dealings through alternative channels. In this regard, SBP data shows that the banking deposits of the wholesalers dropped 7% to PKR 99.15Bn on Jun. 30, 2016 as compared to PKR 107.53Bn a year ago. Similarly, the retailers’ deposits declined 5% to PKR 168.07Bn in FY16 as against PKR 176.83Bn in the same period last year. The textile sector’s bank deposits decreased 13% during FY16; coming down to PKR 107.7Bn from the previous year’s level of PKR 123.61Bn while manufacturing sector’s bank deposit increased to PKR 692.14Bn on Jun. 30, 2016 compared with PKR 666.05Bn over the last year. Banking experts attributed the fall to shrinking exports. The News. Economic Indicators WoW YoY May-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 GBP, 19-Jul-16, 138.0 145 135 EUR, 19-Jul-16, 115.7 125 115 105 95 USD, 19-Jul-16, 104.7 85 75 Jul-15 Oct-15 USD Jan-16 GBP Apr-16 EUR Jul-16 Source: KCCI Research ; Oanda.com Quote of the Day "Yesterday is not ours to recover, but tomorrow is ours to win or lose." Lyndon B. Johnson Chart of the Day 50 45 SECP vows to ensure protection to investors The SECP, after noticing media report about brokerage houses surrendering their Trading Right Entitlement (TRE) certificates due to stringent regulatory framework of the commission, has said that the report is totally misleading. It says that in fact 12 TRE certificate holders out of 380 surrendered their TREs for being mostly inactive or dormant. Some of them wanted to exit the brokerage business post-demutualization as they had been issued shares of Pakistan Stock Exchange (PSX) against their memberships. The stock exchange under the Demutualization Act is allowed to issue 15 TRE certificates every year with effect from May 2016. The News. 40 Tax on Punjab civil works likely The Punjab Revenue Authority (PRA) is mulling to tap revenue from public civil works of both federal and provincial nature. In the current fiscal year, the Punjab government withdrew an earlier exclusion given to government civil works including those of the cantonment boards from the Punjab Sales Tax on Services Act 2012. The exclusion, which has been made under the Punjab Finance Act 2016 and is applicable from July, 1. 2016, has sparked a ‘debate’ among tax collectors that the government will collect sales tax with 16% ratio from its own civil projects as private contractors and builders hired for civil works will not pay it from their pockets. Dawn. 10 35 Cement Capacity Vs Despatches in Pakistan 44.64 44.64 32.51 33.43 2011-2012 2012-2013 44.64 45.62 34.28 45.62 35.4 38.87 30 25 20 15 5 0 2013-2014 Production Capacity (Mn. Tonnes) 2014-2015 2015-2016 Total Despatches (Mn. Tonnes) Source: KCCI Research, APCMA Disclaimer EDB hires 992 scientists to boost industrial innovation The Engineering Development Board (EDB) has recently engaged a team of as many as 992 scientists in 308 fields under the Industrial Research Programme, an initiative launched to address technical issues pertaining to product design and development. The team includes professors, scientists, technologists and researchers to conduct research in different fields related to engineering, applied physics and applied chemistry. Daily Times. 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