Pakistan Daily Economy Update - 25 July

Transcription

1. Jul . 24-25, 2016 KCCI - eBulletin Power project under CPEC runs aground An electricity transmission project under the CPEC is said to have become unviable reportedly owing to the government’s decision to give priority to power projects in Punjab. The $ 2.1Bn, 878Km long Matiari-Lahore Transmission Line was planned to supply List of Indicators 4,000MW of electricity produced from coal in Sindh to cities in Punjab. This scheme was among the priority projects that China and USD-Interbank Pakistan wanted to complete by Dec 2018 in 1st phase of the CPEC construction. Tribune – Mon. US oil, gas services firm to wind up Pakistan operations A leading international oil and gas services firm is reportedly winding up its operations in Pakistan, causing a setback to exploration and development companies operating in the country and rendering more than 60 professionals jobless. Based in Houston, US, and operating in more than 90 countries, Baker Hughes is one of the largest oil field services companies in the world providing the oil and gas industry products and services for drilling, formation evaluation, completion and production and reservoir consultations. Dawn - Mon. Date / Period Unit Value Change Daily 22-Jul PKR 104.84 0.00% USD-Open MKT 22-Jul PKR 105.50 0.00% KSE-100 index FIPI 22-Jul 22-Jul Pts. $ Mn 39,152 -16.80 -0.39% NM** Crude (JU'16) 22-Jul $/bbl 44.21 -0.79% Gold (MY'16) 22-Jul $/oz 1,322.2 -0.87% Gold (10g) Local 22-Jul PKR 44,228 -2.32% Silver (MY'16) 22-Jul $/oz 19.67 -0.96% 22-Jul PKR 7,111 -2.21% 22-Jul % 6.00% 0.00% 8-Jul $ Bn 23.06 -0.10% Remittances Jul-Jun 16 $ Bn 19.90 7.84% Exports* Jul-Jun 16 $ Bn 20.80 -12.11% Imports* Jul-Jun 16 $ Bn 44.76 -2.33% Trade Balance* Jul-Jun 16 $ Bn -23.96 -8.13% Current Account Avg. CPI-FY16* Jul-May 16 Jul-Jun 16 $ Mn % -2,486 2.86 -1.18% Cotton(KHI)-40 kg Cotton sowing target missed by wide margin of 21% Pakistan has missed the cotton sowing target by a wide margin of 21% in the current crop season. As a result, the country would Kibor-6M miss the production target of 14.1Mn bales by over 25%. Furthermore, due to uncertainty of cotton prices, increased sugarcane cultivation in the cotton areas, and shortage of certified seed decline in cotton sowing has also been registered. The govt. has Forex Reserves downward revised cotton production target as well as area and fixed at 14.1Mn bales from 7.4Mn acres for the season FY17 against 15.49Mn bales from 7.7Mn acres estimated for the just concluded season FY16. BR - Sun. FBR asks officials to ensure collection on revised rates FBR has directed the tax officials to ensure the collection of revised sales tax and federal excise duty from the effective dates to avert the revenue losses. The FBR, through a circular to the chief commissioners of Inland Revenue and the chief collectors of the Pakistan Customs, said FED on cigarettes has been increased effective from Jun 6th ,2016 while revised rates of FED on cement and aerated waters and sales tax on sugar, tractors, pesticides, urea fertilizer and mobile phones were effective from Jun 25th 2016. Tribune– Sun. Economic Indicators WoW YoY May-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* WoW= week on week; YoY=Year on Year FBR plans evolving new system to facilitate taxpayers ** Not Meaningful FBR Chairman has said that the concerns of taxpayers and tax law partitions would be resolved by keeping in view the difficulties of filers as well as practitioners. The FBR chairman said that new taxation system would be evolved to improve the efficiency of FBR as well as to facilitate taxpayers. He also disclosed that research and marketing analyses cells would be established in FBR to resolve 175 the issues in a proficient manner and streamlining the working procedure. He further narrated that the necessary groundwork had 165 been completed and capable professionals would be hired from the market to improve the system. He also assured for elimination 155 of SRO culture, which would be replaced with more appropriate methods to give concessions. Daily Times - Mon. Major Currencies GBP, 24-Jul-16, 137.4 145 12th IMF Review: Dar to hold meeting with SBP officials tomorrow Finance Minister Ishaq Dar will hold a meeting in the context of 12th International Monetary Fund (IMF) Review at the State Bank of Pakistan (SBP). The minister chaired a meeting at the State Bank to review the macroeconomic situation with special reference to the monetary side for the year ending Jun. 30, 2016. In the context of upcoming 12th IMF Review, the meeting noted that the performance on the monetary side during the quarter ended Jun.’16 remained satisfactory. The forex reserves reached highest-ever level of $ 23Bn. BR – Sun. SBP issues Exchange Companies Manual 2016 SBP has issued Exchange Companies Manual 2016 in order to update/compile related regulations for the convenience of exchange companies. Some of the existing instructions contained in SBP Circulars/Circular Letters have been slightly amended in order to make more clarity. Further, prescribed reporting forms have been made a part of the Exchange Companies Manual. Contents of Manual and all instructions, directions, orders etc., issued under the Act are without prejudice to the provisions of any other law of Pakistan or any rules, orders, directions or regulations made there under. BR - Mon. Nepra likely to approve PKR 2.35/unit refund Nepra is likely to approve a refund of PKR 2.35/unit to consumers under a monthly fuel adjustment mechanism overcharged by the power Distribution Companies (Discos) in Jun.’16. The regulator has fixed Jul. 28, 2016 for a public hearing on a tariff petition filed by the Central Power Purchasing Agency -Guaranteed (CPPA-G). The domestic consumers who use up to 300 units monthly and agriculture consumers are not eligible for the reduction in tariff under monthly fuel adjustment mechanism. BR - Sun. Pakistan, Afghanistan to discuss border management on Jul. 26, 2016 The first meeting of Afghanistan-Pakistan joint technical working group under the high level consultation mechanism for coordination on border management and related security issues will be held in Kabul on Jul. 26, 2016. BR - Sun. Banks waived off PKR 280Bn loans Different commercial banks have waived off loans of worth PKR 280Bn during 2013-15. In this regard, Finance Ministry has submitted that PKR 430.98Bn were written off from 1990 to 2015. The beneficiaries who got their loans written-off included public and private firms, commercial and govt. banks, private companies and mills and industrialists. According to the Finance Ministry, a detailed report revealed that private companies managed to get over PKR 50Bn in bank loans waived off from 1990 to 2015. BR Sun. Import of generators in Pakistan surges 38% to PKR 192Bn According to the PBS, the import of power generating machinery soared 38% to PKR 192Bn during FY16. In terms of dollars, it rose 34% to $ 1.83Bn. However, Minister of State for Water and Power has reiterated that the govt. would put an end to load-shedding in 2018. Tribune – Sun. Profits of life insurance companies rise 28.5% Life insurance companies operating in the private sector earned a net profit of PKR 798.6Mn in 1QFY16, which is up 28.5% from the comparable period of 2015. According to the latest data released by the Insurance Association of Pakistan (IAP), the penetration of life insurance is only 0.51% of GDP in Pakistan. The savings-to-GDP ratio decreased from 14.7% in FY15 to 14.5% in FY16. Tribune – Sun. Initiative on GHG emissions launch on July, 26. 2016 The Sustainable Energy Initiative for Industrial sector would be launched on Jul 26th, 2016 in order to avoid greenhouse gas (GHG) emissions by the developing world in addition to promoting a market environment, The Initiative will also help stimulate investments in renewable energy and energy efficiency projects in the industry, which in turn will support industrial development in the energy-scarce country. The United Nations Industrial Development Organization (UNIDO) is implementing a Global Environment Facility (GEF) funded project entitled; "Sustainable Energy Initiative for Industries in Pakistan". Daily Times - Mon. 135 EUR, 24-Jul-16, 115.0 125 115 105 95 USD, 24-Jul-16, 104.8 85 75 Jul-15 Oct-15 USD Jan-16 GBP Apr-16 EUR Jul-16 Source: KCCI Research ; Oanda.com Quote of the Day "It always seems impossible until its done." Nelson Mandela Chart of the Day Pakistan's Exports in Services (FY16) 2,153 Govt. goods and services 1,006 Transport 965 Other business services 780 Telecommunications, Computer,… 322 Travel 89 Financial services Insurance and Pension services 52 Construction 42 Personal, cultural, and recreational… 29 Charges for the use of intellectual… 20 2 Maintenance and repair services 0 500 1000 1500 2000 2500 Source: KCCI Research, SBP Value in $ Mn 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