Pakistan Daily Economy Update - 23 November

Transcription

1. Nov . 23, 2016 KCCI - eBulletin Steel makers jack up prices after Gadani fire incident The price of steel bars has gone up by PKR 8,000 to PKR 10,000 per tonne after the fire incident at the Gadani shipbreaking yard last month. Traders said that the price of regular-quality steel bar, which was available at PKR 56,000 to PKR 57,000 prior to the Gadani incident, has now surged to PKR 68,000 per tonne. They said the price of steel of a better quality is now PKR 74,000 per tonne compared to the earlier rate of PKR 68,000 per tonne. The government has ordered a halt in activities at the Gadani ship-breaking yard by imposing Section 144 instead of ensuring safety measures for the industry that is the main source of raw material for steel manufacturers. Dawn. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 22-Nov PKR 104.85 0.01% USD-Open MKT 22-Nov PKR 106.80 1.87% KSE-100 index FIPI 22-Nov 22-Nov Pts. $ Mn 42,632 -18.21 0.45% NM** Crude (JA'17) 22-Nov $/bbl 48.05 -0.68% Ukrainian envoy shares priority to enhance trade During his visit to Karachi Chamber of Commerce and Industry (KCCI), Ukraine’s Ambassador Volodymyr Lakomov has said that Ukrainian Embassy considers enhancing B2B interaction between the entities as one of the most promising and priority directions in bilateral relations. He said that Ukraine, being one of the biggest grain producers, can transfer its agro-science knowledge to Pakistan for increasing crop yields besides participating in Public-Private Partnership projects particularly in Sindh for construction of grain silos. KCCI President Shamim Ahmed Firpo stated that both countries have been cooperating with each other in the education sector and cultural exchanges. Tribune. Gold (DE'16) 22-Nov $/oz 1,212 -0.03% Gold (10g) Local 22-Nov PKR 43,371 0.00% Silver (DE'16) 22-Nov $/oz 16.64 0.45% Cotton(KHI)-40 kg 22-Nov PKR 6,736 0.00% Kibor-6M 22-Nov % 6.11% 0.01% Forex Reserves 11-Nov $ Bn 24.09 -0.26% Remittances Jul-Oct 16 $ Bn 6.26 -3.82% Belgian envoy emphasises easing visa curbs Belgian Ambassador Frederic Verheyden has said in a meeting that the visa policy for businessmen of Pakistan and Belgium should be liberalized so that business trips can be made with ease. He said Belgian companies had expressed keen interest in Pakistani market and urged Pakistani businessmen to start joint ventures with their Belgian counterparts. Tribune. Exports* Jul-Oct 16 $ Bn 6.43 -6.60% Imports* Jul-Oct 16 $ Bn 15.75 8.01% Trade Balance* Jul-Oct 16 $ Bn -9.32 -21.07% Current Account Avg. CPI-FY17* Jul-Oct 16 Jul-Oct 16 $ Mn % -1,762 3.95 -63.45% Govt. implementing ‘ease of doing business’ strategy The govt. is implementing a nationwide ‘ease of doing business’ reform strategy to improve business climate and foster private investments, according to finance minister Ishaq Dar. He directed the finance ministry to work in close collaboration with other concerned federal and provincial govt. agencies including Bol, FBR and SECP in making every effort to facilitate the foreign as well as domestic investors and businessmen. The News. Chinese industrialists keen to invest in alternative energy projects More than hundred Chinese companies are keen to invest in Pakistan and in this regard representatives from six industrial units will visit the country at the end of Nov’16. According to a statement issued by Ministry of Industries, the minister has invited Chinese companies to invest in food processing, car manufacturing and steel mills. CPEC council also announced to invest more in Pakistani refinery, mining cement and real estate sectors. The Nation. NA body proposes low interest rate on agri loans National Assembly Standing Committee on Finance has recommended for reducing interest rate on agricultural loans to 7% for the relief of farmers and for development of the sector. Members of the committee said that the current interest rate on agricultural loans was 14% which was too high and the poor farmers were not able to afford such a high rate, at a time when traders and industrialists are getting loans at the rate of 6%. The News. WoW YoY Oct-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-Nov-16, 130.0 135 125 115 EUR, 21-Nov-16, 111.4 USD, 21-Nov-16, 104.9 105 95 85 75 Nov-15 Feb-16 USD GBP May-16 EUR Aug-16 Nov-16 Source: KCCI Research ; Oanda.com Quote of the Day Expensive RLNG hurting Punjab industry Textile millers have said that RLNG being supplied to Punjab’s textile industry is 45% more expensive as compared to other provinces due to hefty surcharges for lines losses and theft. They pointed that electricity generation cost for Pepco is PKR 4.75/kWh for Oct‘16 while it was being provided to the industry at PKR 11/kWh. Furthermore, textile industry cannot pass on these charges to its international buyers therefore energy cost should specifically be made regionally competitive – electricity at PKR 7/KWh – and system gas/RLNG at PKR 600/mmBtu should also be included in the textile package. Dawn. "Life is 10% what happens to you and 90% how you react to it." Exports to France rise to € 768.37Mn Pakistan’s exports to France witnessed an increase of 10.7% in the year 2015 from a year ago under the European Union GSP+ scheme. Commerce Minister has said that France was the seventh major export destination to which the increase in exports is a consequence of aggressive export marketing strategy of government. He said the Trade Development Authority of Pakistan has participated in four exhibitions in France as part of increasing exports. Dawn. COUNTRY-WISE FLOW OF FDI (4MFY17) PC backs reduction in SME Bank’s capital requirement The Privatization Commission (PC) board has put off approval of a transaction structure for the sale of SME Bank after observing that the minimum capital requirement of PKR 6Bn set by SBP for the prospective buyers is at the higher end. The board endorsed a recommendation of the financial advisers, which sought at least one-third reduction in the minimum capital requirement to PKR 4Bn aimed at making the bank attractive for the buyers. Tribune. Loan repayments by private borrowers touch PKR 22Bn Banks reported an increase in loan payments in 4MFY17 and more inflows are likely in months ahead despite interest rates touching historic lows. According to the SBP, companies paid off PKR 22Bn debts to banks in Jul’16 to 11th Nov’16. The SBP policy rate witnessed two separate cuts of 50 and 25 basis points (bps) during FY16 on top of a cumulative reduction of 300 bps in FY15. Moreover, the weighted average lending rate on fresh loans saw a decline of 237 bps in FY16 on average to reach 7.8% for the year. The SBP’s separate data on advances classified by private sector borrowers issued on the same day revealed that loans outstanding at banks inched up to PKR 3.25Bn as of 31 Oct’16 from PKR 3.19Bn in previous month. The cumulative flows of private sector loans expanded by PKR 461Bn during FY16 against PKR 225Bn in FY15. The News. Charles R. Swindoll Chart of the Day Hongkong, 7% Egypt, 8% United Kingdom, 9% China, 45% U.A.E, 10% Others, 15% 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