Pakistan Daily Economy Update - 24 August

Transcription

1. Aug . 23, 2016 KCCI - eBulletin Li Ka-Shing’s Pakistan Terminal to Start After 5-Year Delay Billionaire Li Ka-shing’s Hutchison Port Holdings Ltd. is set to start its second Pakistan terminal after a five-year delay, giving mega vessels access to the coastal city of Karachi for the first time. Hutchison’s terminal operations in South Asia’s second-largest economy will commence before the end of this year, as agreed with the Karachi Port Trust. Bloomberg. FBR yet to notify beneficiaries of sales tax concessions FBR has yet to announce the name of the taxpayers who can avail the sales tax concession on the purchase of fuel. The govt., in the budget for FY17, revised the sales tax regime for the export sector and re-introduced zerorated or ‘no-payment no-refund’ scheme. The govt. has also allowed zero-rate sales tax facility on the purchase of fuel, such as oil, diesel and lubricants, but the relaxation is subject to Sales Tax General Order (STGO) to be notified by the FBR. The re-introduction of zero-rated scheme was notified on 30th Jun, 2016 but so far the FBR has been unable to issue the names of eligible persons who can avail this facility. The News. PM starts work on Lahore-Sialkot motorway just hours after approval Prime Minister Nawaz Sharif has performed the ground-breaking of ‘financially unviable’ Lahore-Sialkot motorway project at a cost of PKR 45.4Bn, just a couple of hours after the Executive Committee of National Economic Council (Ecnec) approved it. The highest project approval authority has approved the scheme including a subsidy of PKR 18Bn to make the project ‘financially viable’, according to the Ministry of Finance. Tribune. Asian Bank offers $ 1Mn for railway investment project The Central Asia Regional Economic Cooperation (CAREC) Railway Connectivity Investment Programme has kicked off with the Asian Development Bank (ADB) approving $ 1Mn as technical assistance for the project.The technical assistance will develop a multi-tranche financing facility (MFF) and tranche projects bankable by the ADB loan, and conduct due diligence for technical, economic, financing, social and environmental viability of the first tranche project and prepare required due diligence documents. Dawn. Wheat import: Food ministry waits for input on duty increase proposal The Ministry of Commerce and Ministry of Finance have yet to give their response to the proposal of enhancing the regulatory duty on wheat import from the current 40% to 60% floated by the Ministry of National Food Security and Research. The food security ministry is concerned about the surplus wheat stock in the country due to high prices and fears that import of the commodity, particularly from the Central Asian countries, will further aggravate matters. Earlier this year, the regulatory duty on wheat import was increased from 25% to 40%. Tribune. Punjab FM raises concerns with Dar Punjab has urged the federal govt. to take corrective measures in the wake of the center’s fiscal policies that have started hurting provincial finances. Punjab Finance Minister has demanded from Finance Minister Ishaq Dar to increase her province’s share on account of profit from hydel power generation, in line with the treatment that the federal govt. gave to Khyber-Pakhtunkhwa (K-P). Punjab FM also raised concerns over the recent increase in property valuation rates, which Punjab says are counterproductive for provincial finances. Tribune. Textile exports down 4% in July Pakistan’s exports of textile and clothing fell nearly four per cent year-on-year to $ 982.6Mn in Jul 2016. The proceeds stood at $ 1.02Bn in the same month of the last year. Exports of readymade garments dropped 0.03% while exports of knitwear fell 5% during the last month. Last year, exports of readymade garments witnessed a nominal growth despite fall in proceeds from all other products. Dawn. Ecnec approves PKR 201Bn projects The Executive Committee of the National Economic Council (Ecnec) has approved 7 projects worth PKR 201Bn pertaining to construction of roads, tunnels, water supply and procurement of 75 diesel electric locomotives. Finance Minister Ishaq Dar has approved Balochistan Integrated Water Resource Management and Development Project (BIWRMDP) with an updated cost of PKR 22.16Bn. The World Bank’s International Development Association (IDA) will contribute $ 200Mn to the project and will be completed in 6 years. The News. Non-listed companies: SECP approves principles of corporate governance SECP has said that it had approved “Principles of Corporate Governance for Non-listed Companies” to make business environment trustworthy, transparent and accountable. The principles will change the governance paradigm for the non-listed companies by enabling the corporate sector to adopt best international practices. These are voluntary guidelines that will set out the corporate governance landscape for over 60,000 non-listed companies operating in Pakistan by providing a toolkit to improve their internal and external governance structures. Tribune. TCP sends 15,000 tons of rice to Cuba as gift The Trading Corporation of Pakistan (TCP), on behalf of Pakistan govt. has dispatched some 15,000 tons of rice to Cuba as gift, procured from domestic exporters/traders. This is the second rice export consignment by the TCP during this year as earlier in Jan.’16, it exported same quantity including Long Grain White Rice (IRRI-6) and Super Basmati rice for Nige. The commodity was procured from two domestic exporters/traders worth PKR 800Mn (approximately) for the gift purposes. BR. Economic Indicators Date / Period Unit Value USD-Interbank List of Indicators 22-Aug PKR 104.83 Change Daily 0.11% USD-Open MKT 22-Aug PKR 106.20 -0.09% KSE-100 index FIPI 22-Aug 22-Aug Pts. $ Mn 39,458 1.85 -0.10% NM** Crude (JU'16) 22-Aug $/bbl 47.39 -3.54% Gold (MY'16) 22-Aug $/oz 1,337.1 -0.12% Gold (10g) Local 22-Aug PKR 45,085 -0.38% Silver (MY'16) 22-Aug $/oz 18.93 -1.76% Cotton(KHI)-40 kg 22-Aug PKR 7,165 0.76% Kibor-6M 22-Aug % 6.03% 0.00% Forex Reserves 12-Aug $ Bn 22.62 0.12% Remittances Jul-16 $ Bn 13.28 -20.14% Exports* Jul-16 $ Bn 1.48 -7.45% Imports* Jul-16 $ Bn 3.56 5.52% Trade Balance* Jul-16 $ Bn -2.08 -17.20% Current Account Avg. CPI-FY17* Jul-Jun 16 Jul-16 $ Mn % -2,525 4.12 6.79% WoW YoY Jul-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 GBP, 22-Aug-16, 137.2 EUR, 22-Aug-16, 118.5 145 135 125 115 105 95 USD, 22-Aug-16, 104.8 85 75 Aug-15 Nov-15 USD Feb-16 GBP May-16 Aug-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day “The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively” Bob Marley Chart of the Day Remittances Received by Top 10 countries in Pakistan Saudi Arabia 378.69 UAE 293.72 USA 169.68 U.K. 143.61 Kuwait 58.85 Oman 57.48 Bahrain 26.94 Qatar 26.34 Australia 13.62 Canada 13.09 0 100 200 Value in $ Mn 300 400 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