Pakistan Daily Economy Update - 21 April

Transcription

1. Apr . 21, 2016 KCCI - eBulletin Current account deficit shrinks 18.5% According to the SBP, Pakistan’s current account deficit amounted to over $ 1.6Bn in 9MFY16, shrank by 18.5% or $ 365Mn, as compared to $ 1.97Bn in 9MFY15. Pakistan’s total imports of goods were valued at $ 29.5Bn in 9MFY16 as opposed to $ 31.2Bn in 9MFY15, which shows an annual decrease of 5.2%. Similarly, Pakistan exported goods worth almost $ 16.4Bn in 9MFY16 as opposed to the exports of goods valuing over $ 18Bn in 9MFY15, reflecting an annual decline of 9%. However, the current account balance for 1QFY16 clocked up at -$ 223Mn. Tribune. Mauritius president invites textile exporters Mauritius has invited Pakistani textile exporters to explore business opportunities in addition to arranging a fashion show of Pakistani brands in the country. The invitation was extended by Mauritius President Ameenah Firdaus during a meeting with the Pakistan Textile Millers. She said Pakistani entrepreneurs could also take advantage of Mauritius to penetrate the United States (US) and European markets. Mauritius is recognized among the first 6 places in the African region, recommended to people who wish to relocate which is one of the leading areas in the region in terms of ‘ease of doing business and good governance’ as per the World Bank Ease of Doing Business report 2016. Tribune. Russia boosting ties with Pakistan: Putin Russia’s President Vladimir Putin has said that Russia was actively developing multifaceted relations with Pakistan, particularly in the fields of trade and counter-terrorism. He further expressed satisfaction at the level of cooperation between the two countries in the United Nations, which was based on a shared commitment to international law and convergence of positions on many key global and regional issues. Tribune. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 20-Apr PKR 104.75 -0.04% USD-Open MKT 20-Apr PKR 105.30 0.00% KSE-100 index FIPI 20-Apr 20-Apr Pts. $ Mn 33,620 -9.64 -0.33% NM** Crude (MY'16) 20-Apr $/bbl 43.90 1.27% Gold (MY'16) 20-Apr $/oz 1,244.5 -0.50% Gold (10g) Local 20-Apr PKR 42,171 0.20% Silver (MY'16) 20-Apr $/oz 17.01 0.33% Cotton(KHI)-40 kg 20-Apr PKR 5,841 0.00% Kibor-6M 20-Apr % 6.35% -0.01% 8-Apr $ Bn 20.83 -0.24% Remittances Jul-Mar 16 $ Bn 14.16 4.14% Exports* Jul-Mar 16 $ Bn 15.61 -12.92% Imports* Jul-Mar 16 $ Bn 32.52 -4.22% Trade Balance* Jul-Mar 16 $ Bn -16.91 -5.50% Current Account Avg. CPI-FY16* Jul-Mar 16 Jul-Mar 16 $ Mn % -1,606 2.64 18.52% Apr-16 % 6.00 WoW Forex Reserves YoY Discount Rate Fearing dollar flight, govt. looks for Chinese financing Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* The federal govt. has asked coal-based power producers to arrange financing from China instead of domestic ** Not Meaningful WoW= week on week; YoY=Year on Year institutions and markets in an attempt to prevent the outflow of dollars for the purchase of equipment. However, Major Currencies it is feared that govt. move will delay the completion of power projects by 12 to 18 months. China is the only 175 country that could extend loans for the coal-power projects and reports suggest that it also wants to shift some abandoned old coal plants to Pakistan. However, the Ministry of Finance has asked new coal-based power 165 155 producers, who have so far been unable to raise funds for their projects, to scout for Chinese financing. This way 145 the govt. will be able to stave off pressure on the country’s dollar reserves. Tribune. 135 Satellite to be launched for monitoring CPEC projects Pakistan and China will use space technology to carry out planning and execution of development projects under the China-Pakistan Economic Corridor, and in this regard a satellite will be launched in Jun’18. The Pakistan Space and Upper Atmosphere Research Commission (SUPARCO) and the China Great Wall Industry Cooperation (CGWIC) signed an agreement for the development and launch of the ‘Pakistan Remote Sensing Satellite (PRSS-1) System’. Minister for Planning, Development and Reform, Ahsan Iqbal and CGWIC President, Yin Limping signed the agreement. The minister said that the agreement would also transfer space technology to Pakistan. Mr Iqbal said that the new project would also help Pakistan in national security arena by strengthening border security and surveillance apparatus. Dawn. Wapda demands funds for Bhasha Dam WAPDA has demanded allocation of funds for building 4500MW Diamir Bhasha Dam as the land acquisition for project has been completed. WAPDA chairman said that the govt. needs to take high level decision for the funds allocation for the construction of reservoir on Diamir Bhasha Dam, in a meeting on hydel power projects. The planning ministry has told WAPDA that currently work on only Dasu Dam is in progress while Diamir Bhasha Dam and 800 MW Munda Dam is dormant. Chairman WAPDA said that Land acquisition has been completed and now funds are required for the initiation of work on the reservoir. According an estimate, about $ 4Bn are required for the reservoir which will help in flood mitigation and will control the water shortage. The Nation. Broadband subscriptions near 31Mn Broadband subscriptions increased close to 6% (1.67Mn) to reach 30.99Mn in Mar’16. This still translates into just a 15% broadband penetration, below Asia Pacific’s average of 37% and even below Africa’s 21%. Tribune. Tax those who are out of the net: Business Council The govt. focus should be on undertaking meaningful reforms to increase revenue and increased tax collections should be made from those who have, so far, kept themselves out of the tax net. The govt. needs to widen the tax net and ensure that all sectors of the economy are taxed appropriately. These suggestions were part of the budget proposals the American Business Council (ABC) had submitted to the FBR for the upcoming FY16-17. The detailed document prepared by the ABC Finance and Taxation subcommittee included proposals for the elimination of 8% minimum tax on services and calls for the applicability of a standard income tax across all businesses. Tribune. TIBL agrees to return PKR 699Mn to Privatization Commission The Trust Investment Bank Limited (TIBL) has agreed to return PKR 698.9Mn to Privatization Commission (PC) as a result of a plea bargain with the National Accountability Bureau (NAB). It said that an amount of PKR 294.4Mn had already been recovered from the TIBL in Jul’13 and chairman of TIBL has now agreed to voluntarily return the remaining PKR 404.5Mn. Tribune. Saudi Arabia close to securing $ 10Bn bank loan Saudi Arabia is close to securing a $ 10Bn, five-year bank loan, the government's first significant foreign borrowing for over a decade, as the world's top oil exporter seeks to fill a record budget gap caused by low crude prices. The kingdom had initially aimed to raise between $ 6Bn and $ 8Bn, but the Ministry of Finance increased the amount after drawing substantial demand. The loan is expected to be signed before the end of Apr’16 with lenders including US, European and Japanese banks. The pricing is around 120 basis points above LIBOR.BR. 125 GBP, 20-Apr-16, 150.4 EUR, 20-Apr-16, 118.7 115 105 95 USD, 20-Apr-16, 104.6 85 75 Apr-15 Jul-15 USD Oct-15 GBP Jan-16 EUR Apr-16 Source: KCCI Research ; Oanda.com Quote of the Day To waken interest and kindle enthusiasm is the sure way to teach easily and successfully Tryon Edwards Chart of the Day 40% LSM constituent growth during Jul'15-Feb'16 (%) 30% 20% 11% 10% 1% 0% -10% -8% -20% -7% 1% 4% 7% 9% 12% 12% 28% 16% -5% -17% -30% -40% -50% -60% -54% Source: KCCI Research, PBS 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