Pakistan Daily Economy Update - 23 September

Transcription

1. Sep . 23, 2017 KCCI - eBulletin CM assures beautification of city Speaking at an interactive meeting with the members of Karachi Chambers of Commerce and Industry (KCCI), Sindh Chief Minister Syed Murad Ali Shah has said that Sind govt. is doing its best for the beautification of the city. The Minister said that on-going projects will be completed up to Mar.’18. Chairman BMG Siraj Kassam Teli, KCCI President Shamim Ahmed Firpo, Muhammad Zubair Motiwala briefed the Chief Minister and the Ministers about the issues facing trade and industry. The Chief Minister assured that more schemes are in pipeline for the upgradation and beautification of the city. He was accompanied by his cabinet members including Mir Hazar Khan Bijarani, Manzoor Wasan, Syed Nasir Hussain Shah, Jam Khan Shoro and Mukesh Chawla. During the meeting, minister for local govt. Jam Khan Shoro and Industries’ Minister Manzoor Wasan highlighted the initiatives taken and future plans of their departments for the infrastructure development and industrial growth in the province especially in Karachi. BR. This is my city, no one can stop me from developing it’ The present delimitations in Karachi and other districts of the province are defective, unrealistic and were carved out on a purely political basis, said CM Murad Ali Shah. Therefore, in principle the next elections should be held on the basis of fresh delimitations but not at the cost of postponement of the general election. He said this while addressing a programme organised by KCCI. Dilating on infrastructure issues faced by Karachiites, Shah said Karachi is his city and nobody can stop him from developing it. Tribune. Delimitations carved out on political basis: Murad Addressing a program organized by Karachi Chamber of Commerce & Industry (KCCI), Sindh Chief Minister Syed Murad Ali Shah has said that during the last FY17, PKR 10Bn had been allocated for infrastructure development of Karachi however only PKR 7.5Bn had been spent and result is visible in the form of various roads, flyover and underpasses. He informed that Sindh govt. provided PKR 8Bn to Mayor Karachi for development but utilization of funds is not visible. The Minister further said that the present delimitations in Karachi and in other districts of the province are defective and unrealistic and were carved out purely on political basis. The Nation. Sindh govt to launch PKR 12Bn development schemes for Karachi Sindh CM has said that he is going to undertake development schemes in Karachi worth PKR 12Bn which would be completed within 6 months. Murad said that he is working hard to initiate the Karachi Circular Railway project as well. He said work on the CPEC related schemes of the province would start from 25th Dec’17. The News. Sindh accuses revenue body of ‘unlawfully’ reclaiming PKR 6.7Bn Sindh CM has accused FBR for unlawfully retrieving around PKR 7Bn from the provincial bank account in lieu of advance income tax on motor vehicle registration. Shah, during a meeting with the members of KCCI, said FBR reclaimed PKR 6.7Bn on the pretext that the provincial excise and taxation department had deposited low amount of tax collection to national kitty in contrast to the reported number of registered vehicles during the last fiscal 2016/17. The News. “Illegal” transfer of PKR 294Mn to FBR: Sindh government lodges FIR against bank The Sindh govt. has lodged an FIR against the National Bank of Pakistan over illegal transfer of PKR 294Mn from its kitty to the FBR. The Sindh Excise and Taxation Department filed a complaint against the divisional head operation of NBP, KPT branch, Karachi, claiming that "The Income Tax Department has been creating bogus demands unilaterally against the Excise Taxation and Narcotics Control Department on account of withholding tax. The FIR further says that after creating such demands without reconciliation with this department are making recovery via means of attachments of provincial government account in spite of the fact that this office does not recover withholding tax of FBR, they have recovered from the NBP Branch. BR. Pakistan-Thailand FTA in final stages: Thai CG Speaking at the opening ceremony of three-day Thailand Exhibition, Thai Consul General Karachi, Suwat Kaewsook, has said that FTA between Pakistan and Thailand is in final stages which, after implementation, is expected to double the bilateral trade between both the countries. The Consul General further said Pakistan has made substantial progress over the years and bilateral trade and diplomatic relations between both the countries have further strengthened. President KCCI Shamim Ahmed Firpo, who inaugurated the exhibition as chief guest, said that both countries are enjoying cordial relations and that FTA will increase the bilateral trade from current $ 1Bn to around $ 2.5Bn. Around 45 Thai companies are displaying new range of technology and products in the exhibition which reflects the confidence of Thai investors. The Nation. ‘Look Africa Plan’ envisions greater bilateral trade The Ministry of Commerce has approved ‘Look Africa Plan’ with stringent measures to boost bilateral trade between Pakistan and Africa. The plan has been approved by the ministry on 17th Aug. Pakistan’s share in total trade of African countries is 0.3%.Under the policy, top 10 countries out of the 54 African nations selected for trade promotion includes Nigeria, Kenya, South Africa, Morocco, Algeria, Egypt, Sudan, \ Tanzania, and Ethiopia. Pakistan will offer to negotiate a preferential trade agreement with three African trading blocs – Southern African Customs Union (SACU), East African Community (EAC), and Economic Community of West African States that constitute (ECOWAS). Dawn. Chinese firms eager to relocate to Pakistan, but there is an issue China is eager to relocate its manufacturing units to Pakistan, but there is a hindrance; the two countries are miles apart when it comes to infrastructure development. Pakistan needs to further improve its infrastructural facilities to motivate Chinese companies, said the vice director of China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT). Companies are eagerly looking to relocate their manufacturing facilities to low labor cost countries among which Pakistan is a strong contender. Tribune. FBR faces taxing problem as people reluctant to file returns Faced with serious challenges including weak capacity and retaining one-time return filers who contact the tax machinery just to avoid high tax rates, the FBR is now pushed to undertake a tough task of expanding extremely narrow tax base. Not impressed by the FBR’s performance and its emphasis on squeezing the existing taxpayers, PM Abbasi has asked the FBR to use WHT data, and data of international travellers, credit card holders and property buyers for broadening the tax base. Tribune. Govt plans regulatory body for upstream petroleum sector Amid strong opposition from three smaller provinces, the federal government is planning to establish an independent upstream petroleumsector regulator to regulate oil and gas exploration and production across the country. The move comes on the advice of the World Bank that believes a centralized upstream regulator for the countrywide standardized exploration and production principles and practices will help avoid duplicity and contradictory approaches. It will act as a specialized department of the federal government through the Directorate General of Petroleum Concessions (DGPC). It will be called Pakistan Petroleum Exploration and Production Regulatory Authority (PPEPRA). Dawn. Debt management office runs without permanent head Debt Policy Coordination Office (DPCO), a key credit management arm of the finance ministry, has been running without permanent head for the last several months, while debt-to-GDP ratio is about to breach the desirable 60% mark and keep on climbing on the higher side, sliding rapidly into a risk zone with every passing month. The News. Upgraded machines to offset impact of energy tariffs Energy and power costs are most critical to the industries around the world. Electricity tariffs in Pakistan stand at $0.11/kWh as opposed to $0.09 in Bangladesh, $0.09 in India and $0.08 in Vietnam. Industrial gas tariff is also 173%, 44% and 12% higher in Pakistan. Further, Pakistan’s competitors use efficient machines that consume less power and energy, while producing more and requiring much less manpower. Unfortunately, local industries are reluctant to upgrade technology. So, they are threatened in global markets as well as domestic market because of influx of imported competitive products. The News. 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 22-Sep 22-Sep 22-Sep 22-Sep 21-Sep 21-Sep 22-Sep 21-Sep 22-Sep 22-Sep PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.42 105.90 42,750 -1.02 50.72 1,290.2 44,700 16.94 6,537 6.17% Forex Reserves 15-Sep $ Bn 20.10 0.00% -0.09% -0.06% NM** 0.00% -0.67% 0.19% -1.02% 0.82% 0.00% WoW -2.36% 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-17 LSM Growth* % 12.98 % 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 155 GBP, 22-Sep-17, 142.5 145 135 125 EUR, 22-Sep-17, 125.8 115 105 95 Sep-16 USD Dec-16 GBP EUR Mar-17 Jun-17 USD, 22-Sep-17, 105.2 Sep-17 Source: KCCI Research ; Oanda.com Quote of the Day "A leader is one who knows the way, goes the way, and shows the way." John C. Maxwell Chart of the Day Loans Classified by Borrowers Construction, 136 , 3% Transport & Com., 211 , 5% Agr. & Forestry, 308 , 8% Commerce and Trade, 311 , 8% Others, 336 , 9% Manufacturing, 2,318 , 58% Elec.,Gas & Water, 375 , 9% Source: KCCI Research, SBP Value in PKR Bn as of Aug'17 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