Pakistan Daily Economy Update - 23 February

Transcription

1. Feb . 23, 2017 KCCI - eBulletin Ports to face congestion on slowdown in cargo clearance at Pak-Afghan border The country’s main ports are likely to experience cargo congestions as delay in clearance of consignments at the Afghanistan-Pakistan border has already started piling up cargoes, slowing down unloading at the docks. According to the custom officials, the slowdown may result in piling up of cargoes at the ports in Karachi. 40% of total import clearance at the ports is related to the Afghan transit trade. The News. Pakistan attracts investor interest at Aspire World summit Investors at the Aspire World Investments summit in Dubai have expressed a keen interest in investing in various sectors in Pakistan. Aspire World Investments has already announced its plans to develop 56 specialized economic zones in Pakistan as part of its CPEC initiative. They announced a highly ambitious five-stage investment propulsion plan to develop the 56 specialized economic zones inside Pakistan and welcomed the global community to benefit from the highly lucrative investment climate in the country. Tribune. Matiari-Lahore transmission line: ECC exempts Chinese firm from 12.5% tax on dividend The govt. has waived 12.5% tax on the income of a Chinese company laying a power transmission line by overruling the tax authorities that are already reeling from the impact of massive tax exemptions offered under CPEC programme. In this regard, Economic Coordination Committee has allowed the exemption from withholding tax on dividends under the Transmission Line Policy 2015 from the $ 1.76Bn Matiari-Lahore transmission line project. BR/Tribune. Businessmen urged to diversify exports to Kenya During the visit to the Karachi Chamber of Commerce and Industry (KCCI), High Commissioner of Kenya Julius K Bitok has urged the business and industrial community of Karachi to focus on diversifying their exports to Kenya in order to improve the meagre trade volume between the two countries. He said that Kenya, being the member of Common Market for Eastern & Southern Africa (COMESA), can be used by Pakistani business community to access more than 400Mn people inhabiting in the COMESA region, which comprises of 20-member states. He underscored the need to promote tourism opportunities between the two countries and enhance linkages between Nairobi Chamber and KCCI, which would bring the business communities closer. He also invited KCCI to participate in the forthcoming 3rd Africa Tea Convention & Exhibition scheduled to be organized on May 11 and 12, 2017 in Nairobi. Tribune. SECP, SBP in joint move to tackle illicit lending A high-powered body of two apex financial and banking regulators SECP and SBP has decided to seek cooperation of law enforcement agencies in curbing unregulated lending operations, particularly at the country’s stock exchange where certain brokers are said to use investors’ money in illegal badla financing. Decisions pertaining to the unregulated lending operations at the meeting of the coordination committee of the SECP and SBP were taken against the backdrop of the Lahore brokerage firm episode. Dawn. Subsidy package for farmers in next budget Secretary Finance has said that the government is considering a subsidy package for farmers in the upcoming budget while briefing the National Assembly Standing Committee on Finance. A suitable reduction in markup rates on farm loans was also discussed amid consensus that it should be equal to mark up rate for industrial loans. State Bank governor Ashraf Mahmood Wathra informed the committee that only 22% of lending to the agriculture sector was made by The Zarai Taraqiati Bank Limited while 78% was being done by commercial banks. Dawn. Gwadar projects: govt. gives timelines to public departments The govt. has given timelines to public departments and private companies to complete Gwadar Port’s development projects under CPEC. In this regard, Planning Ministry has asked Water and Power Ministry to hold stakeholders meeting within 15 days for resolving issues of 300MW power plant along with abridging procedural delays for evacuation of power supply among CPPA, NTDC, and PPIB etc. EoI would be expedited for new 5 MGD desalination plants and necessary approval from the Balochistan govt. to be sought in 1 month for revitalization of old 2 MGD desalination plants at Karwat. Similarly, Chinese Fourth Harbour Design Institute has been nominated for Gwadar Smart City Plan while East-Bay Expressway process would be completed to ensure early start on the project. BR. Govt. to accommodate investors possessing wind power LoIs Govt. is likely to amend wind power policy for accommodating investors as their Letters of Intent (LoIs) become irrelevant after the new tariff mechanism for wind project by Nepra. Nepra announced benchmark levelised tariff of 6.7467 cents per unit KWh for wind power projects on 100% foreign financing discounted at 10% per annum and 7.7342 cents per unit on 100% local financing. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (AP'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 22-Feb 22-Feb 22-Feb 22-Feb 22-Feb 22-Feb 22-Feb 22-Feb 22-Feb 22-Feb PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 107.30 48,982 -1.18 53.56 1,238 43,371 18.00 7,272 6.12% Forex Reserves 10-Feb $ Bn 21.82 0.00% 0.09% -0.07% NM** -1.56% 0.15% -0.20% -0.06% 0.00% -0.02% WoW -0.94% YoY -1.86% -3.21% 19.32% -20.29% -90.24% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Jan 17 Remittances $ Bn 10.95 Jul-Jan 17 Exports* $ Bn 11.69 Jul-Jan 17 Imports* $ Bn 29.11 Jul-Jan 17 Trade Balance* $ Bn -17.43 Jul-Jan 17 Current Account $ Mn -4,716 % 3.85 Avg. CPI-FY17* Jul-Jan 17 Jan-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Feb-16 GBP, 22-Feb-17, 130.7 EUR, 22-Feb-17, 110.4 USD, 22-Feb-17, 104.8 May-16 USD GBP Bestway signs non-binding MoU to acquire Dewan cement plant Bestway Cement Limited has signed a non-binding MoU with Dewan Cement Limited for the proposed acquisition of the north plant. The proposed acquisition includes production facility, mining leases/ licenses and inventories, stores and spares located in Hattar. The News. Govt raises PKR 60Bn in PIB auction The government has raised PKR 59.7Bn through PIBs against banks’ bids of PKR 115.2Bn. The auction was not encouraging for banks as the government continued to raise small amount of money. The highest amount of PKR 93Bn was offered by banks for three-year PIBs, but the government raised PKR 59.6Bn at a not-so-attractive cut-off yield of 6.4%. Dawn. Intellectual property association launched The draft bill for protection of intellectual property rights and the much awaited Geographical Indication Protection law have been finalized and submitted to the government by the Intellectual Property Organisation of Pakistan (IPO). This was disclosed by Chairman IPO Shahid Rashid at the launching ceremony of Intellectual Property Association of Pakistan (IPAP). He explained that GI Protection law will help safeguard popular Pakistani products such as Basmati rice, Wazirabad cutlery and Sialkot sports goods in the world market. Dawn. National Bank’s full-year profit up 15% NBP has reported a net profit of PKR 23.08Bn (EPS: PKR 10.83) in 2016, showing a 15% growth as compared to PKR 20.07Bn (EPS: PKR 9.42) earned in 2015. The bank also announced a final cash dividend of PKR 7.5/share. The News. Nov-16 Feb-17 Source: KCCI Research ; Oanda.com Quote of the Day "If you want to achieve excellence, you can get there today. As of this second, quit doing less-than-excellent work." Petroleum ministry resists ban on LNG power plants The Ministry of Petroleum and Natural Resources has opposed a proposed ban on setting up new LNG based power plants, which is being considered as part of a plan of capping consumption of different fuel sources for power generation. However, a power ministry official argued that Pakistan would have surplus electricity in 2022 and that was why the ministry was seeking to place curbs on the consumption of imported fuels in electricity generation. Tribune. Properties abroad: SBP chief makes things clear to NA body In a meeting with Finance Standing Committee, SBP Governor Ashraf Wathra has said that SBP has never allowed any individual to purchase property abroad and therefore does not have the role and the function of inspection. In this regard, a committee’s member said that it is difficult to seek such information in Pakistan citing that he was unable to get anything from the government institutions about a staggering amount of $ 6.6Bn taken abroad to buy property. BR. Aug-16 EUR Thomas J. Watson Chart of the Day Pakistan's Commodity Wise Import Payments Petroleum Group 3622.93 4033.63 Machinery Group 4047.59 3999.10 Agri. & Other Chemical 2610.95 2986.12 Food Group 1900.05 1889.94 Metal Group 1782.02 1761.61 Textile Group 1007.71 1435.70 Transport Group 556.22 656.17 Miscellanous Group 0 Value in US $ Mn 5367.37 5984.19 1,000 2,000 3,000 4,000 5,000 6,000 7,000 7MFY16 7MFY17 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