Pakistan Daily Economy Update - 21 December

Transcription

1. Dec . 21, 2017 KCCI - eBulletin CA deficit soars to $6.43 billion in July-November Pakistan’s current account deficit sharply increased by 91% during 5MFY18 as it stood at $ 6.43Bn compared to $ 3.371Bn in 5MFY17. The cumulative deficit of goods, service and income surged by 26% and reached $ 16.17Bn mark in 5MFY18 as compared to $ 12.78Bn in 5MFY17. Month-on-month, current account deficit stood at $ 1.44Bn in Nov.’17, as against $ 1.30Bn in Oct.’17. BR. SBP clarifies financing gap requirements SBP has clarified the statement of Governor Tariq Bajwa who spoke to media after a briefing to the National Assembly’s Standing Committee on Finance about the estimate of financing gap in FY18. The central bank’s estimates suggest that the financing gap is likely to be around $ 2.5Bn during FY18 and not $ 12Bn. It appears that the numbers have been confused with the gross external financing requirements of the country, the SBP observed. The financing gap is the difference between country’s estimated gross financing need and available financing. Dawn. Industrialization gaining momentum: PM PM Abbasi has said that industrialization is gaining momentum as the government has overcome the problem of energy shortages. Underlining the importance of industrialization, he said the private sector must play its role for the establishment of new industrial units as the government ensures continuous supply of gas and electricity. Dawn. Water pipelines in Karachi to be replaced CM Sindh has questioned why politicians, industrialists and other influential persons living in the city were getting water through illegal connections for commercial and other purposes. Expressing his annoyance over the theft of water in Karachi, Shah warned the KWSB officials that action would be taken against them if they did not give up appeasing influential and rich people by allowing them illegal water connections. Referring to the dilapidated water infrastructure, the CM pointed out that the water pipelines were rusted, defective and old due to which water could not be effectively distributed in the city. Local Government Minister Jam Khan Shoro informed the meeting that his department had planned to replace the entire 1,200km water supply network in Karachi at an estimated cost of PKR 200Bn. Tribune. K-E plans to invest PKR 335Bn by 2023: CEO CEO of K-Electric, while briefing the Public Accounts Committee, has informed that K-Electric would invest PKR 335Bn by 2023 in power production and distribution sectors of Karachi. He further said that govt. has not provided security clearance to Shanghai Electric as yet, which wants to invest $ 9Bn. K-Electric's line losses are 21% which are 5% greater that countrywide power lines losses. K-E is facing around 8 to 9% technical losses and while power theft losses in the range of 12 to 14%. BR. Pakistan eager to start FTA talks with Pacific countries Pakistan wants to initiate negotiations with the Pacific and Southeast Asian countries for free trade agreements (FTAs) in an effort to enhance trade and export competitiveness. These countries include Japan, Indonesia, Vietnam and the Philippines from the Pacific region. Pakistan and Indonesia had already agreed on concessions for 20 different items during bilateral negotiations under PTA and both have agreed to move towards a Free Trade Agreement. Tribune. $ 6.5Bn bonds in four years Govt. has issued $ 6.5Bn Sukuk and Eurobonds in the international market in the last four years for balance of payment and budgetary supports. The govt. launched $ 3Bn international Sukuk with $ 1Bn in Dec.’14 at 6.75% for 5 years followed by $ 1Bn in Oct.’16 at 5.5% for 5 years and $ 1Bn in Nov.’17 at 5.625% return for same period. On international Eurobond side, govt. issued $ 3.5Bn with $ 1Bn in Aug.’14 for 5 years tenor at 7.25% and $ 1Bn at 8.25% for 10 years tenor. Another $ 500Mn Eurobond were issued for 10 years in Sept.’15 at 8.25% and $ 1.5Bn for 10 years in Nov.’17 at 6.875%. BR. World Bank approves $ 825Mn loan The World Bank has approved a $ 825Mn package to improve the national power transmission system in Pakistan, and \ enhance health and education service delivery by strengthening financing management and procurement systems. From this allocation, $ 425Mn National Transmission Modernization Project-I will modernize the national transmission system to enable new power generation to reach consumers by upgrading, expanding and rehabilitating selected 500kV and 220kV substations and transmission lines. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 20-Dec 20-Dec 20-Dec 20-Dec 20-Dec 20-Dec 20-Dec 20-Dec 20-Dec 20-Dec PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 110.51 110.25 38,208 -2.46 58.08 1,266.9 46,714 16.16 7,502 6.21% 0.64% 0.00% 0.76% NM** 0.90% 0.28% 0.09% 0.35% 0.00% 0.00% WoW 10.36% YoY 1.29% 10.49% 21.12% -28.56% -90.74% 57.12% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (FE'18) Gold (JA'18) Gold (10g) Local Silver (JA'18) Cotton(KHI)-40 kg Kibor-6M Forex Reserves $ Bn 20.69 8-Dec FY18 Jul-Nov 17 Remittances $ Bn 8.02 Jul-Nov 17 Exports* $ Bn 9.03 Jul-Nov 17 Imports* $ Bn 24.06 Jul-Nov 17 Trade Balance* $ Bn -15.03 Jul-Nov 17 Current Account $ Mn -6,430 Foreign Direct Inv. $ Bn 1.15 Jul-Nov 17 Jul-Sep 17 LSM Growth* % 8.36 % 3.59 Jul-Nov 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 19-Dec-17, 147.3 145 135 EUR, 19-Dec-17, 136.1 125 115 105 95 Dec-16 USD USD, 19-Dec-17, 110.1 Mar-17 GBP Jun-17 Sep-17 Source: KCCI Research ; Oanda.com "We grow small trying to be great." E. Stanley Jones Chart of the Day Pakistan's Balance of Payments Position Committee to devise electricity policy After capping the upfront tariff-based renewable energy projects, the government has constituted an inter-provincial committee to formulate an overall National Electricity Policy and National Electricity Plan envisaging the roadmap for future development of electricity generation, transmission and distribution capacity and its market structure. The Committee would first formulate a national electricity policy for approval by Council of Common Interests. Dawn. (5MFY18 Vs. 5MFY17) Current Account Balance Lowest price offer for Pakistani rice in Iraq tender The lowest price offer in the tender from Iraq’s state grains buyer to purchase at least 30,000 tons of rice which was closed at $ 448 a ton c&f free out for rice to be sourced from Pakistan. No decision about a purchase was believed to have been made in the tender. Offers have to remain valid up to 25th Dec. Lowest offer for rice from Thailand was $ 451.40 a tone c&f free out. Dawn. Auction for MTBs draws thin participation SBP has conducted the auction for the sale of 3-, 6-, and 12-month MTBs and received bids amounting to PKR 195.5Bn with a realized value of PKR 192.82Bn only for 3-months MTBs. Out of the received bids, govt. borrowed PKR 93.75Bn with a realized value of PKR 92.47Bn through the sale of 3-months T-bills at a cut-off yield of 5.9910%. BR. EUR Quote of the Day Financial Account Capital Account -8,000 -6,000 -4,000 -2,000 0 2,000 5MFY17 5MFY18 Agreements worth $ 250Mn signed at Build Asia Exhibition Value in PKR Mn Source: KCCI Research, SBP The three-day 13th Build Asia Exhibition successfully concluded in Karachi, facilitated the signing of agreements worth $ 250Mn. The event, held at the Karachi Expo Center from Dec. 18 to 20, 2017, is the largest exhibition of construction, realDisclaimer estate and housing industry, held annually by Ecommerce Gateway Pakistan. More than 350 local enterprises and 550 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 foreign companies had set up more than 600 stalls to display their latest technological advancements. The Nation. 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