Sign in to continue reading...

Pakistan Daily Economy Update - 25 April

IM Insights
By IM Insights
6 years ago
Pakistan Daily Economy Update - 25 April


Create FREE account or Login to add your comment
Comments (0)


  1. Apr . 25, 2018 KCCI - eBulletin Tax amnesty scheme approved by Senate body The Senate Standing Committee on Finance has approved the recently unveiled tax amnesty scheme with several amendments. An amendment was made in the rate of tax on liquid assets not repatriated, as it was increased to 10% while the tax rate on immovable properties was also increased. Senators also showed reservations over amendments in the Protection of Economic Reforms Act (PERA) 1992 (prohibiting depositing cash in foreign currency accounts by a nonfiler). Dilating on the rationale for the amendment in PERA 1992, they asked whether there is any law to check a nonresident Pakistani buying dollars from open market, depositing the cash in his foreign currency account and withdrawing it abroad; SBP officials replied in the negative. BR. PML-N targets 6.7% growth rate in 12th Five Year Plan Headed by the PM, the National Economic Council (NEC) has approved the draft of the 12th Five Year Plan, which envisages achieving an average economic growth rate of 6.7% and bringing down public debt to below 60% of the GDP by 2023. The 2018-2023 Five Year Plan also targets to double Pakistan’s exports to $ 48Bn and increase foreign direct investment to $ 7.6Bn. However, in order to achieve the growth rate, the next govt. would have to increase the investment-to-GDP ratio to almost 20% from the current 16.4%, according to the Planning Commission. Tribune. NEC meeting: smaller provinces stage walkout A meeting of the National Economic Council (NEC) convened to approve development outlay as well as growth and other macroeconomic targets for FY19 year was marred by walkout of chief ministers of Sindh, KP and Balochistan, who accused the federal govt. of not incorporating their projects in the federal PSDP for FY19. Speaking at a joint press conference, the 3 CMs stated that as per Articles 156 and 126 of the Constitution, the NEC does not have the mandate to approve the development budget when the quorum is incomplete. Sindh CM Murad Ali Shah said that his province will approve only supplementary budget for FY19 and will allocate spending for only one quarter for ongoing projects. No new scheme will be included in the budget FY19. He said the federal govt. can only allocate expenditure for one quarter alone and not for the entire fiscal year because its tenure will expire on May 31, 2018. BR. Pakistan, China expected to sign revised FTA this year Pakistan and China are expected to sign the revised bilateral FTA anytime during 2018 as the two sides are currently deliberating on the subject, Minister for Commerce Pervez Malik said. Speaking at an event of the Intellectual Property Organization (IPO) Pakistan, Malik stated that innovation and creativity have not only become major drivers of socioeconomic growth but also are considered essential tools for development of any society. The minister highlighted the importance of women’s intelligence and aesthetics and the need to engage them in different fields of everyday activities. The News. SBI chief for better economic ties with Russia Sindh Board of Investment (SBI) Chairperson Naheed Memon, has emphasised the need for increasing economic and regional cooperation between Pakistan and Russia. While speaking to a business delegation from Saint Petersburg, she stressed that the time is just right time for Pakistan and Russia to increase mutual trade, investment, economic and regional cooperation. The Russian delegates represented 15 companies dealing in power, oil and gas, pharmaceutical, chemical, spare parts, metallurgical, textile especially polyester and yarn, engineering, and aviation. The News. CCP decides to regulate real estate sector The Competition Commission of Pakistan (CCP) has decided to regulate real estate sector, estimated to have value of around PKR 7Tn, and covering private housing schemes and societies which are operating without any strict monitoring and regulations. According to the CCP, Pakistan is facing a shortage of around 9Mn housing units thus offering great potential for investment in the real estate sector. Seeing this potential, big investors are buying mostly agricultural land \ by paying nominal amount to the owners and announcing housing schemes. However, due to an ineffective regulatory oversight, there is no check on the authenticity of these housing schemes. Small investors get lured by marketing campaigns, invest their lifelong savings with the hope to get a piece of land to build own home, but mostly end up getting nothing in return. BR. Nepra cuts rate by PKR 1.86/unit The National Electric Power Regulatory Authority (Nepra) has turned down a petition of the Central Power Purchasing Agency (CPPA) to increase power tariff by PKR 0.44 and instead decreased tariff by PKR 1.86 per unit on account of fuel adjustment for Mar’18. Following reduction, consumers will enjoy a relief of PKR 15Bn in the bills for May’18. This adjustment/relief will be available to domestic consumers in entire Pakistan except for K-Electric and lifeline consumers. The Nation. Neelum Jhelum’s 2nd unit starts generation on trial basis In yet another development, the 2nd unit of Neelum Jhelum Hydropower Project, which went into trial generation two days ago, achieved full generation capacity of 242MW, having been tested with 100% load rejection. The project will provide about 5Bn units of electricity annually to the national grid. The benefits of the project have been estimated at PKR 55Bn per annum. The Nation. Pakistan’s first milk vending machine launching next month Pakistan’s first automated milk vending machine is going to be launched in May’18 under the aegis of Punjab govt. The basic idea behind introducing this automated milk dispenser unit, built locally at a cost of around 0.6Mn, is to encourage dairy farmers to sell milk through the vending machine. The current milk situation in the country is raising many questions, demanding public sector’s interventions to introduce new dairy businesses as pilot. The purity of milk would be ensured with sealed packing. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 24-Apr 115.62 118.25 0.00% 0.08% Crude (JU'18) 24-Apr 24-Apr 24-Apr 24-Apr PKR PKR Pts. $ Mn $/bbl 45,877 0.53 67.73 1.11% NM** -1.73% Gold (MY'18) Gold (10g) Local 24-Apr 24-Apr $/oz PKR 1,332.8 51,171 0.79% -0.02% Silver (MY'18) Cotton(KHI)-40 kg 24-Apr 24-Apr $/oz PKR 16.74 8,038 0.84% 0.00% Kibor-6M 24-Apr % 6.52 $ Bn 17.55 0.00% WoW -0.53% Remittances 13-Apr FY18 Jul-Mar 18 $ Bn 14.61 YoY 3.55% Exports* Imports* Jul-Mar 18 Jul-Mar 18 $ Bn $ Bn 17.08 44.38 13.08% 15.57% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Jul-Mar 18 Trade Balance* $ Bn -27.30 Jul-Mar 18 Current Account $ Mn -12,029 Foreign Direct Inv. $ Bn 2.09 Jul-Mar 18 Jul-Feb 18 LSM Growth* % 6.24 % 3.20 Jul-Mar 18 Avg. CPI Discount Rate % 6.00 Mar-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -17.18% -50.55% 4.44% Major Currencies 175 GBP, 23-Apr-18, 162.0 165 155 145 EUR, 23-Apr-18, 141.7 135 125 115 USD, 23-Apr-18, 115.8 105 95 Apr-17 Jul-17 GBP USD EUR Oct-17 Jan-18 Source: KCCI Research ; Oanda.com Quote of the Day "All progress takes place outside the comfort zone." Michael John Bobak Chart of the Day PAKISTAN'S EXPORTS IN MAR'18 ($ MN) Food, 589 , 14% Others, 2,229 , 53% Textiles, 1,203 , 29% Chemicals, 97 , 2% Petroleum Group, 33 , 1% Leather Manufactures, 39 , 1% Engineering goods, 17 , 0% Source: KCCI Research, PBS Disclaimer SECP registers Al Hilal as first Shariah advisory company The SECP has registered Al Hilal Shariah Advisors (Pvt) Limited as the first Shariah advisory company in Pakistan under the Shariah Advisory Regulations 2017, providing Shariah advisory services to various Islamic financial institutions, including asset management companies and Modarabas. Al Hilal is also active in the field of halal food certification. The News. 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