Pakistan Daily Economy Update - 25 February

Transcription

1. Feb . 25, 2017 KCCI - eBulletin Pakistan improves on World Bank’s logistics index According to the latest report of World Bank (WB), Pakistan had successfully managed to strengthen its position in the Logistics Performance Index (LPI) for 2016. It put Pakistan at 68th position out of 160 economies. Pakistan managed to advance four places from the 72nd rank in 2014 to 68th place in 2016, by securing a score of 2.92. While, neighboring India stood at 35th position whereas China was at number 27th in the LPI and Germany remained the top performer for the second consecutive time. Singapore, which was at the top slot in the 2012 survey, dropped to fifth place in 2016. Tribune. SBP takes big step to narrow trade deficit SBP has imposed a 100% cash margin requirement on the import of some 404 items including motor vehicles, mobiles, cigarettes, jewelry, cosmetics, electrical and home appliances, arms and ammunitions, etc with immediate effect. With imposition on LC margin, importers are now required to make full payment at the time of LC opening which would possibly compel importers to reduce their imports due to liquidity constraints. SBP is expecting that this regulatory measure would help accommodate incremental import of growth-inducing capital goods. BR. Food, oil imports jump 14% Import bill of food and oil have rose 14.38% YoY to $ 9.25Bn in 7MFY17. The share of these products stood at around 32% of Pakistan’s total import bill during the the period, putting more pressure on the country’s balance of payments. Official figures released by the PBS show that petroleum imports increased 16% to $ 5.81Bn in July-Jan. The 2nd biggest component in the import bill was food commodities, whose exports rose 11.7% YoY to $ 3.4Bn. This increase has been attributed to massive imports of ‘other’ food items worth $ 1.25Bn, followed by $ 1.01Bn of palm oil and $ 491Mn of pulses. Dawn. Importers exempted from audit FBR has agreed to exempt commercial importers from the auditing, industry sources. It was agreed that a chief commissioner of Inland Revenue instead of a commissioner should be authorized to approve any raid, which would only be conducted on the basis of sufficient evidences. The meeting agreed that if a raid was conducted on the basis of false information, the chief commissioner would be held responsible. The News. Chinese firm collecting garbage 8.5 times more costly for Sindh govt The collection of garbage in District South by a Chinese firm is going to be 8.5 times more costly for the Sindh govt. as compared to what it the District Municipal Corporation (DMC) South was paying for the service. Local Govt. Minister has announced that the Sindh govt. will pay $ 26 per tonne to Changyi Kangjie Sanitation Engineering Company to lift garbage in the district. Earlier, according to DMC South Municipal Commissioner, they were spending PKR 320 per tonne for garbage collection. Tribune. Hajj arrangements: SBP allows 30% advance remittances SBP has allowed Authorized Dealers (ADs) to make advance remittances on behalf of Hajj Group Organizers (HGOs) up to 30% of the Hajj package for arrangements of Maktab, housing, catering, transportation, guides, etc in Saudi Arabia. According to SBP, the remittances will be made on submission of required information/documents by the respective HGOs. However, in case final invoices are not available with the HGOs at the time of remittance, the ADs will ensure receipt of related invoices subsequently. BR. Export of securities-seeks more details for registration of non-resident investors SBP has sought more documents and information regarding the export of securities to non-resident investors for their registration with the SBP. As per instructions contained in Para 7(vi) Chapter 20 of the Foreign Exchange Manual-2016, resident entities are required to intimate ADs regarding export of securities (issued/transferred) to non-residents, for registration with SBP. BR. New mango irradiation plants in US may help Pakistani exporters The US government has recently set up three irradiation facilities for mangoes in the states of Mississippi, Texas and Iowa amid rising demand for the fruit, a step that could help Pakistani mango exporters increase sales. The plants have been designed by adopting specific phytosanitary and safeguarding procedure to prevent the introduction of harmful pests. Pakistan is world’s sixth-largest mango exporter. Punjab has mango orchards spanning 271,700 acres with an average annual production of 1.28Mn tonnes. Dawn. Fighting terrorism: Japan extends grant assistance of PKR 453Mn to Pakistan In a bid to help Pakistan take foolproof security measures against a fresh wave of terrorism, Japan has agreed to extend a grant aid of PKR 453Mn ($ 4.43Mn) to the govt. of Pakistan under its “Economic and Social Development Programme. According to the Japanese Embassy, the grant will be utilized to install face recognition systems – a computer application capable of identifying or verifying an individual from a digital image of human face images captured by CCTVs – at major international airports in Pakistan. Tribune. LIRBP work cost soars to PKR 17Bn, Ecnec told The cost of Lower Indus Right Bank Irrigation and Drainage Project (LIRBP) has increased primarily due to inordinate delay in its completion. In this regard, last meeting of the Executive Committee of National Economic Council (Ecnec) has been informed that project is part of master plan of Right Bank Outfall Drainage System and original project was approved by Ecnec in Sept.’94 at the cost of PKR 4.40Bn which has now escalated to PKR 17.5Bn. The project was scheduled to be completed within 4 years after its approval however only 78% of the project has been completed in the last 23 years. BR. Ogra sets LPG price at PKR 910 per cylinder Ogra has determined LPG prices at PKR 910 per cylinder for Feb.’17 as against Petroleum Ministry’s recommendation of PKR 1,100 per 11.8k. The consumer LPG price is conveyed as per section 18(2) of LPG Rules 2001 for strict compliances. The ministry has made its calculation by following one month LPG prices of the Saudi Aramco, while the Ogra has taken into consideration the three month prices of Aramco. The Nation. IMC earnings rise 3.3% The profit after tax of Indus Motor Company rose 3.3% YoY to PKR 6.1Bn in the six-month period ending on 31 Dec‘16 due to improved production, procurement, distribution and administrative processes. The company’s board of directors declared an interim dividend of PKR 25/share for the half year in addition to the first interim dividend of PKR 25/share. Dawn. 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 24-Feb 24-Feb 24-Feb 24-Feb 23-Feb 23-Feb 24-Feb 23-Feb 24-Feb 24-Feb PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 107.37 49,008 1.85 54.36 1,250 43,047 18.25 7,272 6.12% Forex Reserves 17-Feb $ Bn 21.93 0.00% 0.07% -0.11% NM** 1.49% 0.96% 0.64% 1.38% 0.00% -0.01% WoW 0.48% YoY -1.86% -3.21% 13.65% -28.68% -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, 24-Feb-17, 131.2 EUR, 24-Feb-17, 110.8 USD, 24-Feb-17, 104.8 May-16 USD GBP Aug-16 Nov-16 Feb-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "We should remember that just as a positive outlook on life can promote good health, so can everyday acts of kindness." Hillary Clinton Chart of the Day 8M FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY07 FY06 FY05 Pakistan's Foreign Exchange Reserves 17.03 18.14 13.53 5.17 9.10 5.04 6.01 5.01 10.80 4.49 14.78 3.46 12.96 3.79 9.12 3.31 8.58 2.82 13.35 2.30 10.77 2.36 9.80 2.79 4.90 4.96 0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.512.013.515.016.518.019.521.022.524.0 SBP Reserves ($ Bn) Banks Reserves ($ Bn) 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