Pakistan Daily Economy Update - 22 December

Transcription

1. Dec . 22, 2016 KCCI - eBulletin Petrol prices may be increased up to PKR 3.50 per liter The prices of petroleum products are likely to increase up to PKR 3.50 per liter from Jan. 1, 2017. In this regard, petrol price is expected to go up by PKR 1.50 per litre, Light Diesel Oil (LDO) by PKR 1.30, High Speed Diesel (HSD) by PKR 1.40, High Octane Blending Component (HOBC) by PKR 3.50 and Kerosene Oil (KO) price may go up by PKR 1.60 per litre. OGRA will forward its final summary to the Finance and Petroleum Ministries on Dec. 29, 2016. BR. FBR proposes reward for whistleblowers in Benami Transaction Prohibition Bill The federal govt. has introduced the concept of whistleblower in the Benami Transaction Prohibition Bill but has turned down objection of SBP that the proposed law is unconstitutional. The govt. has also rejected the central bank’s recommendation to seek prior permission of a special court before calling suspected people for information, entering premises, seizing documents and conducting probe into Benami assets. According to the proposal in the bill, the FBR may sanction reward for the whistleblower in case of credible information leading to detection of Benami property or transaction. However, the claim for reward by the whistleblower will be rejected if the information provided is of no value. Tribune. Govt. voice commands Nepra to do the needful As Nepra’s administrative control has been handed over to the Water and Power Ministry, Economic Co-ordination Committee (ECC) has directed the regulator to allow 17% Internal Rate of Return (IRR) of withholding tax on dividend as a pass-through item to a Chinese company in the transmission tariff as per actual payment. Under the Co-operation Agreement, China Electric Power Equipment & Technology Co Ltd (CET) is to develop the transmission line projects on BOOT model (the project). Disallowing withholding tax on dividends to CET would be a policy deviation and discriminatory treatment for this project as other CPEC projects have been allowed withholding tax on dividends. BR. Murad asks prime minister to restore regulatory bodies’ independence Sindh CM Mr. Murad has said that the transfer of regulatory authorities to the federal ministries concerned is a case of conflict of interest and the decision is bound to undermine the independence of the regulatory bodies. CM said that the Council of Common Interests is the competent forum to supervise, control and formulate policy for such institutions and federal government’s unilateral decision to transfer the control of such regulatory authorities from the cabinet division to the ministries concerned without the approval of the CCI is transgression into the domain of the CCI and as such it is unconstitutional. Dawn. Regulators still autonomous, insists Dar Finance Minister Muhammad Ishaq Dar has clarified that ministries have been delegated powers to look after the administrative matters of respective regulatory bodies and no law has been changed in this regard. The Minister has categorically said that regulatory bodies are autonomous and independent, and they regulate their subjects. For instance, OGRA had been established to regulate petroleum subjects and the NEPRA had been established to regulate power subjects. BR. With higher PSDP allocation and CPEC, outlook for cement positive With higher allocation for PSDP and CPEC, the outlook for cement and construction-related industries is positive. The govt. has allocated PKR 1.68Bn for PSDP in FY17, which is 20% higher than last year. Major cement producers have announced expansion plans for 9.7Mn tons, which would enhance total capacity to 55.3Mn tons per annum compared to present capacity of some 44Mn tons per annum. BR. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 21-Dec PKR 104.85 0.00% USD-Open MKT 21-Dec PKR 108.10 0.09% KSE-100 index FIPI 21-Dec 21-Dec Pts. $ Mn 46,993 -11.84 -0.46% NM** Crude (FE'17) 21-Dec $/bbl 52.54 -1.50% Gold (JA'16) 21-Dec $/oz 1,131 -0.05% Gold (10g) Local 21-Dec PKR 42,471 -0.10% Silver (JA'17) 21-Dec $/oz 15.95 -0.70% Cotton(KHI)-40 kg 21-Dec PKR 6,843 0.00% Kibor-6M 21-Dec % 6.15% 0.01% 9-Dec $ Bn 23.30 -0.19% Remittances Jul-Nov 16 $ Bn 7.87 -2.50% Exports* Jul-Nov 16 $ Bn 8.19 -3.93% Imports* Jul-Nov 16 $ Bn 19.96 8.83% Trade Balance* Jul-Nov 16 $ Bn -11.78 -19.90% Current Account Avg. CPI-FY17* Jul-Nov 16 Jul-Nov 16 $ Mn % -2,601 3.92 -90.97% WoW Forex Reserves YoY Nov-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 175 165 155 145 GBP, 21-Dec-16, 129.5 135 125 115 EUR, 21-Dec-16, 109.0 USD, 21-Dec-16, 104.7 105 95 85 75 Dec-15 USD Mar-16 Jun-16 GBP Sep-16 Dec-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day Discos, except KE, seek tariff cut by PKR 3.6/unit for Nov‘16 The electricity tariff for all distribution companies, except K-Electric, is expected to come down by PKR 3.60/unit for a month due to higher than justified billing to consumers in Nov‘16 despite cheaper generation cost. According to a petition filed by the CPPA before Nepra, the distribution companies had overcharged consumers to the extent of 49% in November under a presumptive reference tariff. Dawn. “Shift yourself away from the slippery ground of bad attitudes and you’ll not drift off!” Israelmore Ayivor Food, oil imports rise to $ 6.4Bn Pakistan’s food and oil import bill rose 5.5% YoY to $ 6.41Bn in 5MFY17. The share of import of these products stood at 33% of Pakistan’s total import bill, putting more pressure on the country’s balance of payments. Dawn. WB to help govt. improve debt management World Bank will assist the MoF in formulating and implementing a debt management strategy, which will contribute to fiscal sustainability while minimizing funding costs and keeping the debt exposure under control through a grant which is expected to be approved next month. The grant is designed to improve debt management practices by assisting the authorities in strengthening two key functions relating to the formulation of a debt management strategy and risk management in the DPCO. Dawn. Pakistan envoy invites UK businessmen to explore trade potential Pakistan High Commissioner to the UK, Syed Ibne Abbas had a luncheon meeting with a group of British business leaders and City Council representatives in Bradford. The high commissioner said that Pakistan hopes to develop even stronger business and trade ties with UK in the wake of Brexit; when Britain would be seeking new markets outside the EU. He also invited British businesses to take advantage of the trade and economic opportunities available in the country. Tribune. Collaboration: Chinese delegation expresses interest in textile Chinese investors visiting from the Shenzhen province have shown deep interest in Pakistan’s textile sector including the desire to enter into deals with businessmen for the sale of goods and purchase of textile raw material. Pakistan’s textile sector has a great opportunity to capture a good share in the international market, the Chinese said. Pakistani counterparts have invited them to join them for value addition in the textile sector in Karachi. Tribune. Chart of the Day LSM Constituent Growth during 4MFY17 Iron & Steel Products Electronics Non Metallic Mineral Products Pharmaceuticals Automobiles Fertilizers Paper & Board Rubber Products Textile Food, Beverages & Tobacco Coke & Petroleum Products Chemicals Engineering Products Leather Products Wood Products Source: KCCI Research, SBP 12.93% 12.91% 10.62% 6.70% 4.44% 4.24% 3.11% 0.86% -0.03% -1.24% -2.98% -4.04% -12.91% -19.19% -97.46% -120% -100% -80% Disclaimer -60% -40% -20% 0% 20% Bilateral ties: Envoy asks Pakistan to adopt latest US agro-technology This report has been prepared by KCCI Research & Development Cell. The information contained US Ambassador David Hale has said that Pakistan is an important ally in the war on terror and America wants to further step herein have been compiled or arrived at based upon information obtained from sources believed up bilateral trade as it will be beneficial for both the countries. Speaking at a meeting, he said that Pakistan could increase its to be reliable and in good faith. Such information has not been independently verified. agricultural productivity manifold by adopting latest agro-technology and machinery being produced by the US. The envoy icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' stressed that better security conditions would attract more investors from the US and other countries to Pakistan and help understanding of the news item. The R&D Dept. bears no responsibility for its correctness or trade and industrial activities to flourish. Tribune. accuracy. Contact: res@kcci.com.pk