Pakistan Daily Economy Update - 23 December

Transcription

1. Dec . 23, 2017 KCCI - eBulletin M-wallets: PM launches scheme to boost remittances Addressing the launching ceremony of 'Promotion of Home Remittances through M-wallet Accounts’, PM Khaqan Abbasi has said that the scheme will help channelize home remittances through Branchless Banking (BB) channels. The scheme will also help in increasing financial inclusion and making transfer of home remittances faster and at low cost, thus competing with informal channels of delivery. The BB providers and individuals receiving home remittances are eligible for this scheme. New category of BB Level 1 (L1) account 'Home Remittances Account (L1-HRA)' is required for receiving remittances through this scheme. There is no initial deposit and minimum balance requirement. For each USD received, HRA holder will earn air time of PKR 1 in the registered SIM against the account. The incentive is being provided through public-private partnership shared equally between GoP and BB provider. BR. Abbasi launches SME financing scheme PM Abbasi has launched the financing policy for the promotion of SMEz. The PM said that the nine pillars identified under the SME policy address specific issues faced by companies belonging to that sector. He said the policy is expected to help curtail the level of reluctance of financial institutions to provide SMEs with financing. Dawn. ECC revises RD on dozens of items Keeping in view the recommendations made by the Inter-Ministerial committee (comprising representatives from FBR, Commerce and Finance Ministry) to rectify tariff anomalies, ECC has revised the Regulatory Duty (RD) on dozens of imported items. Of this, RD is imposed on 11 items (58 tariff lines), scrapped on 8 items (59 tariff lines), increased on 5 items (43 tariff lines) and reduced on 6 items (22 tariff lines) on the proposal of different sectors. BR. Import duties cut on raw materials PM Abbasi has approved reduction in regulatory duties on raw materials in a bid to reduce cost of production of local manufacturing. The regulatory duty imposed on 16th Oct’17 was reduced to zero per cent on 14 items falling under 81 tariff lines. The duty was raised on existing products as well as new products were subject to regulatory duties to curtail rising trade deficit of the country. FBR has submitted summary for reduction of regulatory duty on raw materials, raising duty on existing products and imposing regulatory duty on fresh finished products to curtail imports in the country. Dawn. External risks rise: Fitch Fitch Ratings has stated that decline in Pakistan's foreign exchange reserves and widening of the current account deficit has raised medium term risks. However, it is unlikely to face external financing difficulties in the short term. The govt.’s international bond issuance in Nov’17 and the authorities' decision of rupee fluctuation could be a step towards stemming the deterioration in the external position. The firm has affirmed Pakistan's rating at ''B'' with Stable Outlook in Feb.’18, with project growth of 5.5% in 2018 and 6.0% in 2019. BR. ADB lauds Pakistan's efforts in overcoming energy deficit Country Director for Pakistan, Xiaohong Yang, while calling on PM Abbasi to discuss issues pertaining to energy and economy, has appreciated the progress that Pakistan has made towards overcoming energy-deficit by producing surplus. Marked improvement in power sector has not only brought relief to domestic consumers but is also leading to growth in large scale manufacturing. he also noted robust economic growth which is projected to reach 5.8% in FY18 and how it managed to enhance revenue generation and structural reforms. Tribune. Pakistan can enter global value chains via SEZs: ADB Special economic zones (SEZs) can help a country become a productive part of international trade activities and Pakistan is wellpositioned to emulate the successful experiences of China and Malaysia. SEZs provide the opportunity to place Pakistan in the global value chains to boost economic development, said Yang Xiaohong, country director Asian Development Bank (ADB), at a workshop on organised by CAREC Institute and Board of Investment (BoI). The News. FBR collects PKR 4.26Bn in WHT on banking transactions The collection of withholding tax from non-cash banking transactions has declined 9% to PKR 4.26Bn during 5MFY18 as compared with PKR 4.69Bn in 5MFY17, owing to rising numbers of active taxpayers. The News. \ Economic Indicators List of Indicators Date / Period Unit Value Change Daily 22-Dec 22-Dec 22-Dec 22-Dec 21-Dec 21-Dec 22-Dec 21-Dec 22-Dec 22-Dec PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 110.41 110.45 39,471 -7.39 58.27 1,269.9 47,014 16.12 7,502 6.21% -0.08% -0.09% 1.95% NM** 0.33% 0.24% 0.55% -0.22% 0.00% 0.00% WoW -1.46% 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 20.38 15-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, 22-Dec-17, 147.9 145 135 EUR, 22-Dec-17, 131.1 125 115 105 USD, 22-Dec-17, 110.6 95 Dec-16 USD Mar-17 GBP Power tariff to come down by PKR 1.47/unit The power tariff for all distribution companies, except K-Electric, is estimated to come down by PKR 1.47/unit for a month due to lower than assumed fuel costs in Nov’17. The Central Power Purchasing Agency-Guarantee (CPPA-G) has filed a petition before Nepra for a tariff cut on behalf of distribution companies of ex-Wapda. The regulator is likely to hold a public hearing on the matter on 28th Dec’17. Dawn. Foreigners can now trade in PSX stock SECP has lifted the ban on foreign investors to trade in the PSX stock. The regulator also approved the addition of 28 securities in the Margin Trading System (MTS) and Deliverable Future under category ‘B’. Exercising its powers, the regulator made amendments to the Stock Exchange (Corporatisation, Demutualisation and Integration) Regulations 2012 by virtue of which “foreign persons, other than foreign anchor investor, shall not collectively whether directly or indirectly acquire or hold more than 10% of the total issued share capital of the exchange”. Dawn. Egyptian billionaire ventures into Pakistan's real estate with $ 2Bn project Pakistan is set to see a new real estate venture in Islamabad as demand for housing keeps motivating projects across different parts of the country. The $ 2Bn project, named Eighteen Islamabad is a partnership between Egypt-based Ora Developers and a local conglomerate. The project brings Egyptian billionaire Naguib Sawiris back to Pakistan after Orascom Telecom Media and Technology Holding, in which he has a majority stake and is also the chairman, had acquired Mobilink before the company sold its stake to VimpelCom. Tribune. Jun-17 Sep-17 Source: KCCI Research ; Oanda.com "Forgive many things in others; nothing in yourself." Ausonius Provinces allowed to export wheat, wheat products In a meeting, presided over by PM Khaqan Abbasi, ECC of the Cabinet has approved export of wheat (1.5Mn tons by Punjab and 0.5Mn tons by Sindh), procurement of sugar by the TCP and raising PKR 80.15Bn by Wapda from commercial banks for payment of NHP to Punjab and KP govts. BR. PM approves appointment of Rana Afzal as finance minister PM Khaqan Abbasi has approved the appointment of Rana Afzal as state minister for finance. MNA Rana Afzal is from Faisalabad and currently the parliamentary secretary for finance. He has been appointed a month after former finance minister Ishaq Dar requested the Prime Minister for leave, after which place was vacant in the Ministry of Finance. The Nation. EUR Quote of the Day Chart of the Day Outstanding Loans to Private Sector , 44.40 , (Nov'17) Other private business 1% Construction, 138.31 , 3% Real estate, 146.22 , 4% Others, 165.00 , 4% Transport, 215.84 , 5% Agriculture, 304.17 , 7% Manufacturing, 2,442.36 , 59% Commerce & Trade, 329.95 , 8% Energy, 383.17 , 9% Source KCCI Research, SBP Value in PKR Bn 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