Pakistan Daily Economy Update - 21 September

Transcription

1. Sep . 21, 2016 KCCI - eBulletin Supply of FO, diesel oil and coal: FBR to withdraw ST zero-rating facility FBR will withdraw sales tax zero-rating facility on supply of furnace oil, diesel oil and coal to registered manufacturers of five leading export-oriented sectors under S.R.O. 1125(1)/2011 where taxpayer is inactive or outstanding recoverable demand is not paid despite recovery notices. The zero-rating facility shall also be withdrawn in cases; among others; where registered person becomes ineligible due to the business closure, business or premises has been sold out, lease of the generators premises has expired, registered person has left premises or has shifted to some other location, registered person is a non-filer and not an active taxpayer, registered person is making supplies to and from blacklisted unit or his supplies and corresponding input tax credit are not verified, inadmissible input tax credits have been claimed, outstanding recoverable demand is not paid despite recovery notices, electricity generated through such generators/boilers is being shared with another person. BR. E-transfer of GST refunds from October In a major move to facilitate sales tax refund claimants, FBR has decided to implement a new system of electronic transfer of sales tax refunds into the taxpayer's bank accounts from Oct.’17. In this regard, FBR, SBP and Pakistan Revenue Automation Limited (PRAL) are interacting on the issue of electronic transfer of refunds for speedy implementation of the project. The govt. is finalizing arrangements to ensure that system shall be put in place by end of Sept.’16, so that transfers of refunds, intended to be made in Oct.’16, would be ensured through new system. BR. K-Electric shows interest in acquiring govt’s KAPCO stake K-Electric has shown interest in acquiring the government’s remaining 40.25% stake in Kot Adu Power Company (Kapco). K-Electric and two other companies have submitted Expression of Interests (EOIs) in response to an advertisement the govt. gave for selling its remaining stake in Kapco to a strategic investor. The last date for submitting the EOIs and Statement of Qualification by the prospective bidder was 20 Sep, 2016 but this week the govt. extended the deadline by one month to allow international investors to participate in the process. Tribune. Pakistani containers stuck after Korean firm’s bankruptcy Around 300 Pakistani containers carrying goods worth billions of rupees have been stuck at various ports of the world, following Korea’s largest shipping company’s bankruptcy. Following the bankruptcy, about 2,000 containers of different countries loaded on the ships of the company were denied access to various ports. Chairman, SubCommittee on Ports and Shipping of KCCI has said that around 300 containers of Pakistani traders, carrying goods for both import and export are also stuck at various ports. The quantum of value of the goods is uncertain but it is in billions of rupees. The News. IMF chief may visit Pakistan next month International Monetary Fund (IMF) chief Christine Lagarde is likely to visit Pakistan in Oct.’16. She will attend the upcoming Central Asian Regional Economic Conference. IMF Chief Christine Lagarde will become the first IMF chief to tour Pakistan in last 10 years. She will meet Pakistani leadership and discuss Pakistan's economic strategies during the visit on the sidelines of the conference. BR. Jul.-Aug FDI down over 53% The State Bank of Pakistan (SBP) has reported that FDI posted a decline of over 53 % during 2MFY17. Pakistan fetched FDI amounting to $ 112.6Mn in Jul-Aug.’16 compared to $ 240.8Mn in the corresponding period of last fiscal year, depicting a decline of $ 128Mn. During the period under review, FDI inflows stood at $ 177Mn against outflow of $ 65Mn. Month-on-month basis, FDI fell by 57% during Aug.’16 compared to Aug.’15. With $ 84Mn inflows and $ 36Mn outflows, FDI in Aug.’16 stood at $ 48.3Mn against $ 113.7Mn in Aug.’15, showing a decline of $ 65.4Mn. Previously, FDI declined by 15% to $ 64.3Mn in Jul.’16. BR. Disputes between SECP, insurance companies: revision of pecuniary limit for SDRCs proposed SECP has proposed revision of the pecuniary limit for Small Dispute Resolution Committees (SDRCs) to arbitrate disputes between SECP and insurance companies pertaining to individual life contracts, domestic insurance policies and private motor insurance policies. In this regard, the SECP has proposed amendment to the SDRC (Constitution and Procedure) Rules, 2015 through an S.R.O. 844(1)/2016. According to the proposal, committee shall have the authority to arbitrate a dispute having specified pecuniary limit: In case of an individual life contract, the limit has been proposed to be set at PKR 2.5Mn. Presently, maximum limit for individual life insurance policy was PKR 1Mn. BR. Debts, liabilities of Wapda soar to PKR 55.8Bn The debts and liabilities of Wapda have reached PKR 55.8Bn in Jun.’16 due to borrowing of 55Bn for payment of Net Hydel Profit (NHP) to KPK and PKR 30Bn for Neelum Jehlum Hydropower project. According to the SBP, debts and liabilities of Wapda were PKR 18.9Bn in Jun.’15, which rose to PKR 16Bn in 1QFY16, PKR 14.4Bn in 2QFY16, PKR 13.6Bn in 3QFY16 and reached PKR 55.8Bn in 4QFY16. BR. LPG air-mix: Gas tariff could go up to PKR 4,000 per unit The Oil and Gas Regulatory Authority (Ogra) has said that each existing gas consumer will have to pay PKR 4,000 per unit to bear the cost of subsidizing users of liquefied petroleum gas (LPG) air-mix, for the plants which are planned to be installed in far-off areas. Owing to this reason, Ogra has fiercely opposed the plan of the Ministry of Petroleum and Natural Resources that wants to include the cost of LPG air-mix plants in the weighted average cost of natural gas supplies. Tribune. Cotton shortfall of 3Mn bales to force traders increase imports A shortfall of around 3.3Mn cotton bales to 9.9Mn bales during the crop season 2016-17 will force leading users and importers to strike deals with USA, India and Brazil and other major cotton producing countries. Pakistan is facing a shortfall against a target of around 12.10Mn cotton bales in the current crop season. Pakistan has so far exported around 2,500 cotton bales by the end August 2016 to Bangladesh, Thailand and other regional countries. In Aug’16, the country has matured imports of about 35,000 bales while import of more than 50,000 bales was in the pipeline. Daily Times. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 20-Sep PKR 104.64 0.04% USD-Open MKT 20-Sep PKR 105.22 0.02% KSE-100 index FIPI 20-Sep 20-Sep Pts. $ Mn 40,340 -4.93 -0.18% NM** Crude (JU'16) 20-Sep $/bbl 44.52 1.62% Gold (MY'16) 20-Sep $/oz 1,313.9 0.09% Gold (10g) Local 20-Sep PKR 44,866 2.43% Silver (MY'16) 20-Sep $/oz 19.20 0.10% Cotton(KHI)-40 kg 20-Sep PKR 6,575 0.81% Kibor-6M 20-Sep % 6.05% -0.01% 9-Sep $ Bn 22.86 -0.54% Remittances Jul-Aug 16 $ Bn 3.09 -3.17% Exports* Jul-Aug 16 $ Bn 3.14 -8.19% Imports* Jul-Aug 16 $ Bn 7.88 10.21% Trade Balance* Jul-Aug 16 $ Bn -4.74 -27.06% Current Account Avg. CPI-FY17* Jul-16 Jul-Aug 16 $ Mn % -591 3.84 -152.56% WoW Forex Reserves YoY Jul-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, 20-Sep-16, 135.9 EUR, 20-Sep-16, 116.8 145 135 125 115 105 95 USD, 20-Sep-16, 104.5 85 75 Sep-15 Dec-15 USD Mar-16 GBP Jun-16 Sep-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day "When you welcome opportunity, it tends to lead to new, better and exciting things that result in even more opportunities." Amanda Greenberg Chart of the Day FDI Received from Top 10 Countries (2MFY17) China 25.7 United States 25.1 U.A.E 24.2 Norway 20.0 United Kingdom 12.4 Italy 5.2 Singapore 4.1 Switzerland 3.9 Austria 3.6 Japan 3.5 - 5.0 10.0 15.0 Value in $ Mn 20.0 25.0 30.0 Source: KCCI Research, SBP 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