Pakistan Daily Economy Update - 21 September

Transcription

1. Sep . 21, 2017 KCCI - eBulletin Islamic financing: supply of goods not chargeable to GST: FBR The goods supplied under Islamic mode of financing including Musawamah, Bai Muajjal, Bai Salam, Istisna, Tijarah and Istijrar by banks or financial institutions will not be chargeable to sales tax. In the FBR's budget instructions (2017-18) issued to the field formations, exemption has been granted from sales tax to goods supplied under Islamic mode of financing. BR. FBR will collect ST, FED on all imported goods FBR will collect sales tax and FED on all imported goods irrespective of their final destination, including non-tariff areas, in Pakistan. Exception of course is available to those goods which are specifically exempt/zero-rated under the provisions of the Acts or SROs issued thereunder. Moreover, further tax shall not be applicable to goods and supplies covered under Fifth Schedule, as provided by amendment in SRO 648(1)/2013 vide SRO 585(1)2/107, dated 01.07.2017. BR. Qatar to grant free, prompt entry visas to Pakistanis Qatari Authorities have decided to grant visa entry to the citizens of Pakistan on their arrival in the State of Qatar. In this regard, Pakistani citizens must possess passport valid for at least 6 months, the passenger must have a confirmed return ticket; the traveler has cash money equivalent to 5,000 Riyal, or a valid credit card. The visa would granted for 30 days free of charges and extendable for a similar period after confirming the return ticket; and persons coming directly from Pakistan should have a certificate of vaccination against polio according to the procedures currently in place. BR. Long term plans to be finalized in 50th CPEC review meeting The long term Pakistan-China cooperation plan (2015-2030) will be finalized in the 50th CPEC 'review meeting' scheduled to be held on 21st Sep’17 (Today) under the chair of Ahsan Iqbal, federal minister for planning and interior. The meeting will finalize the long term plan in consultation with federal ministries and provincial governments, while ministry of railways will brief the meeting about the upcoming financing plan for the up-gradation of Mainline-1 (ML-1) from Peshawar to Karachi. The News. Next round of refund payments ‘soon’ Responding to complaints by members of the Senate Standing Committee on Finance, FBR Chairman Tariq Pasha said that the board has already made all preparations for next round of payment of sales tax refund and he is waiting for the go-ahead from the finance minister. Dawn. Nepra slashes FY16 tariff relief Nepra has slashed relief given to consumers in tariff for FY16 by increasing average tariff from PKR 10.90 per unit to PKR 11.38 per unit after re-determination of tariffs of eight power Discos on persistent pressure from the Water and Power Ministry which used different forums for this purpose. The regulator has granted relief of PKR 34Bn on losses and write-offs on provisional basis against Ministry's demand of PKR 250Bn on different accounts. BR. 6.3% UfG volume approved by Ogra Ogra has allowed UfG (Un-accounted for Gas) volume at 6.3% in the estimated revenue requirements (ERR) of the gas utilities SSGC and SNGPL, that is to be included in the gas tariff in FY18. The gas companies had requested Ogra for an increase of UfG at 9.21% in the petition. However, Ogra worked out 5% UfG benchmark and 1.3% local conditions allowance. BR. Alibaba in talks to buy big stake in Telenor Bank Consumers in Pakistan may be able to make online payments globally through Alibaba Group’s Alipay as the Chinese third-party mobile and online payment platform is in advanced talks with Telenor Microfinance Bank Limited for acquiring a significant stake (40% - 49%) in the company. The SBP has received a due diligence request from Telenor Microfinance Bank in this respect. Tribune. \ Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (NO'17) Gold (OC'17) Gold (10g) Local Silver (OC'17) Cotton(KHI)-40 kg Kibor-6M 20-Sep 20-Sep 20-Sep 20-Sep 20-Sep 20-Sep 20-Sep 20-Sep 20-Sep 20-Sep PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.41 106.00 43,347 1.02 50.72 1,298.9 45,085 17.11 7,127 6.17% Forex Reserves 31-Aug $ Bn 20.39 -0.01% 0.09% 0.22% NM** 0.94% -0.85% 0.67% -0.93% 10.84% 0.00% WoW 1.93% YoY 13.18% 11.80% 24.85% -33.52% -102.10% 154.74% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Aug 17 Remittances $ Bn 3.50 Jul-Aug 17 Exports* $ Bn 3.50 Jul-Aug 17 Imports* $ Bn 9.79 Jul-Aug 17 Trade Balance* $ Bn -6.29 Jul-Aug 17 Current Account $ Mn -2,601 Foreign Direct Inv. $ Bn 0.46 Jul-Aug 17 Jul-Jun 17 LSM Growth* % 5.60 % 3.41 Jul-Aug 17 Avg. CPI-FY18* Discount Rate % 5.75 Jul-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies GBP, 12-Sep-17, 139.8 145 135 EUR, 12-Sep-17, 126.2 125 115 105 USD, 12-Sep-17, 105.5 95 Sep-16 USD Dec-16 GBP EUR Mar-17 Jun-17 Sep-17 Source: KCCI Research ; Oanda.com Quote of the Day Sindh govt to discuss disputed census figures with statistics bureau Sindh government will hold a meeting with PBS regarding the recent census on which the provincial government has expressed serious concerns. A meeting of the law ministry was held at the Sindh Assembly building in which the provincial technical committee discussed various issues relating to the Sindh government’s stance on the figures of the recent census which, it said, reflected a population much less than earlier projections. Dawn. "Experience is the teacher of all things." Sindh CM orders recovery of PKR 6Bn deducted by FBR Sindh CM Syed Murad Ali Shah has expressed displeasure over direct deduction of around PKR 6Bn recently from the Sindh government’s account. Presiding over a joint meeting of the Excise and Taxation Department and Sindh Revenue Board, he said that the deduction is unacceptable and serious steps must be taken to recover the amount. Tribune. Chart of the Day Subsidy brings down GST rates on fertilizers FBR has fixed sales tax on certain fertilizers (PKR 100 - PKR 341 per 50-kg bag) and reduced sales tax on phosphoric acid to 5%, while rate of supply of natural gas to fertilizer plants has also been reduced to 10% under Finance Act 2017. BR. IATA asked to transfer BSP proceeds to national kitty FBR has asked the International Air Transport Association (IATA) to transfer all present and future proceeds under the Billing and Settlement Plan (BSP) into national kitty till the recovery of PKR 7Bn FED from PIA. The national flag carrier has itself admitted that the FED was collected but not deposited in the national exchequer as required under the provisions of the Federal Excise Act, 2005. FED collection was directly linked with the passenger load but PIAC on an average collected PKR 800Mn FED every month. BR. Chinese firm agrees to work without subsidy on Saindak project Metallurgical Corporation of China (MCC) has withdrawn its demand for subsidy in the form of reduced royalty payment and waiving project rent for the Saindak Copper and Gold Project over the next five years. Earlier, the MCC had sought subsidy in order to continue operations, as metal prices stood at a lower level so to make its business feasible. Tribune. Textile exports rise to $2.2Bn in July-August Textile exports increased 5.9% to $ 2.18Bn in 2MFY18 as the sector geared up efforts to meet government's exports increment target to qualify for incentives. Textile sector accounted for more than 60% of exports revenue of $ 3.49Bn earned during the period under review. Total exports were up 11.8% over the same period a year earlier. The highest revenue spinner in the group was knitwear that earned the country $ 439.26Mn in July-Aug’17, up 7.6% over 2MFY17. The News. Julius Caesar Trucks Sale in Pakistan 700 600 500 604 597 503 368 400 259 300 168 200 100 149 18 0 Hino No of Units Nissan 2MFY16 Master 2MFY17 Isuzu Source: KCCI Research,Pama 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 KMC begins vehicle verification to stop fuel misuse sources believed to be reliable and in good faith. Such information has not been independently To stop misuse of fuel, KMC has launched a programme to physically verify whether its vehicles actually exist and are in good verified. condition. The physical verification of the vehicles has been launched after complaints that fuel worth millions of rupees was 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 being released for the vehicles which were either not in order or did not exist. Dawn. accuracy. Contact: res@kcci.com.pk