Pakistan Daily Economy Update - 25 January

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1. Jan . 25, 2017 KCCI - eBulletin Prime Minister inaugurates PKR 28Bn Multan metro bus project During inauguration of 18km long Multan Metro bus project amounting to PKR 28Bn, Prime Minister Nawaz Sharif has said that the city would soon be linked to the modern motorway network of the country and that another six-lane Multan-Sukkur link would connect the city to Karachi soon. The Prime Minister also said that road networks are now connecting all remote areas of Balochistan and would make travel safe, easy and cheap and that all provinces would be connected through new road links. BR. Duty drawback of taxes allowed for exporters Textile Industry Ministry has allowed duty drawback of taxes collected from garments, home textiles, processed fabric, grey fabric and yarn manufacturing-cum-exporters units under the Prime Minister's incentives package for exporters. It shall be allowed for export goods declaration (GDs), filed on or after Jan. 16 - Jun. 30, 2017. Further, duty drawback of taxes under this order shall be allowed for export GSs, filed on or after Jul. 1, 2017 to Jun. 30, 2018, if the exporter would achieve an increase of 10% or more in exports over FY17 exports. BR. Sindh CM approves PKR 2.9Bn grant for industrial infrastructure Sindh Chief Minister Syed Murad Ali Shah has approved a grant of PKR 2.9Bn for the development and rehabilitation of infrastructure of the industrial areas of Karachi and adjoining areas. The chief minister has directed industries minister to hold Infrastructure Development Board meeting to identify schemes, approve them and start work on them. He further said that he would be releasing more funds if quality work is done before the end of FY17. Tribune. Barbed wire fence along KCR route ordered Sindh CM Syed Murad Ali Shah has ordered removal of encroachments along the route of the KCR and installation of barbed wire fence. He took the decision while presiding over a meeting on the KCR and related issues at CM House. There are 2,600 small installations and 4,500 houses built along the KCR route while construction of new illegal establishments was still going on. Dawn. Companies Bill 2016: Parliamentary panel agrees to major concessions A parliamentary panel has agreed to introduce sweeping changes in the Companies Bill including withdrawing the requirement for foreign companies to disclose their beneficial ownership in Pakistan and abroad. According to the 2016 repealed Ordinance, SECP was supposed to maintain a ‘Companies’ Global Register of Beneficial Ownership. The subcommittee has proposed to introduce 60 new sections, amended another 306 sections while kept 150 sections unchanged. Tribune. Govt. urged to share details of 4th part of CPEC All Pakistan Chambers Presidents’ Conference (APCPC) has urged the govt. to take traders community on board on the 4th part of CPEC, which is ‘Industrial Zones Development’. The two-day 9th APCPC, hosted by the Rawalpindi Chamber of Commerce and Industry (RCCI), adopted five points agenda including focus on CPEC, dropping the ratio of Sales Tax to single digit, reducing public debt, increasing tax net and tax base and poverty reduction. The Nation. Development spending slows down to 32% of allocation The federal government’s development programme appears slowing down this year as disbursements to all the federal ministries stood at just PKR 75Bn (32%) of annual allocations in almost 7 months against a target of about PKR 234.3bn (50%). This was even lower than PKR 97Bn released to federal ministries during same period last financial year when disbursement rate stood at about 44% of PKR 222.5Bn allocation. Dawn. Drive to recover property tax in former ‘no-go’ areas The Sindh government has launched a drive to recover property tax dues from residents of localities earlier classified as ‘nogo’ areas. The areas, which include Liaquatabad, New Karachi, North Karachi, Baldia Town, Banaras, and Qasba Colony. Excise and taxation department has said that property tax challans and notices have been served to residents of these areas to recover tax along with arrears accrued from penalties for non-payment for the last 5 years. Dawn. SECP raises the alarm about stock market surge As the stock market crossed 50,000-point level during the trading activity, Chairman SECP has urged the investors that they should always deal with licensed brokers that are registered with the SECP. The SECP has been maintaining a strict vigil against market manipulation and those who are misguiding the investors but there are certain key points that the investors too should follow. BR. MoC seeks to amend gold entrustment scheme Commerce Ministry is finding out a viable way to amend gold entrustment scheme aimed at easing gold/jewelry import and export on industrial demand. However, SBP is unwilling to alter prevalent criteria, saying that scheme is being misused through Hundi and Havala; demanding for rectification. Jewelry exporters want exemption on the condition of notarization, an agreement between the foreign gold supplier and Pakistan's jewelry exporter. BR. NIB acquisition: Scheme of Amalgamation approved by MCB shareholders The shareholders of MCB Bank Ltd. have unanimously approved and adopted the Scheme of Amalgamation of NIB Bank Ltd. with and into MCB through a share swap arrangement. In this regard, shareholders have also approved swap ratio of one new MCB ordinary share for every 140.043 shares of NIB. BR. SBP initiates annual foreign investment survey SBP has initiated annual foreign investment survey to collect data on foreign assets and liabilities of companies/enterprises operating in Pakistan. The survey is conducted as part of a global undertaking and is coordinated by the IMF and SECP to collect information for compiling Pakistan's Balance of Payments statistics and International Investment Position of the country. All resident units, operating in Pakistan and having foreign participation in the form of claims or obligations, are included in the survey. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank 24-Jan PKR 104.80 -0.05% USD-Open MKT 24-Jan PKR 107.40 2.58% KSE-100 index FIPI 24-Jan Pts. $ Mn 49,969 -4.71 0.19% NM** $/bbl 53.08 0.53% $/oz 1,208 -0.55% Crude (MA'17) 24-Jan 24-Jan Gold (FE'17) 24-Jan Gold (10g) Local 24-Jan PKR 43,457 0.00% Silver (FE'17) 24-Jan $/oz 17.07 -0.52% Cotton(KHI)-40 kg 24-Jan PKR 7,111 0.00% Kibor-6M 24-Jan % 6.11% 0.00% Forex Reserves 13-Jan $ Bn 23.19 WoW -0.04% Remittances Jul-Dec 16 $ Bn 9.46 -2.27% Exports* Jul-Dec 16 $ Bn 9.91 -3.82% Imports* Jul-Dec 16 $ Bn 24.40 10.10% Trade Balance* Jul-Dec 16 $ Bn -14.49 -22.20% Current Account Avg. CPI-FY17* Jul-Dec 16 $ Mn % -3,585 3.88 -92.23% YoY Jul-Dec 16 Nov-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, 24-Jan-17, 130.8 135 125 115 EUR, 24-Jan-17, 112.5 USD, 24-Jan-17, 104.6 105 95 85 75 Jan-16 Apr-16 USD GBP Jul-16 Oct-16 Jan-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Every experience in your life is being orchestrated to teach you something you need to know to move forward." Brian Tracy Chart of the Day 4 3.95 Cement Despatches of Pakistan 3.92 0.09 0.08 3.9 0.07 3.85 0.06 7.77% 3.8 0.05 3.75 0.04 3.7 3.64 3.65 0.03 3.6 0.02 3.55 0.01 3.5 Dec'16 Mn Tons 0 Dec'15 Percent Change Source: KCCI Research, Source: KCCI Research,APCMA Some CNG filling stations hike price by PKR 2 per kilo Disclaimer Some CNG filling station owners have pushed up the price of the fuel by PKR 2 per kg to PKR 73 per kg following an increase in This report has been prepared by KCCI Research & Development Cell. The information gas tariff by PKR 2.18 per kg in middle of Dec‘16. This is the second increase in price in less than a month. Dawn. 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. ICI profit surges 28% to PKR 1.48Bn ICI Pakistan Limited’s net consolidated profit surged 28% to PKR 1.48Bn (EPS: PKR 16.11) in 1HFY17. Profit stood at PKR 1.16Bn (EPS: PKR 12.61) in 1HFY16. The company also announced an interim cash dividend at PKR 8 per share. Tribune. 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