Pakistan Daily Economy Update - 25 June

Transcription

1. Jun . 25, 2016 KCCI - eBulletin Finance Act signed by Rabbani The acting president Raza Rabbani has signed Finance Act, 2016, implementing sales tax/Federal Excise Duty (FED) relief measures and regulatory duty (RD) on imported goods, a reduction in customs duties, concessionary/reduced rates of import duties, special concessions at imports and all customs tariff changes of First Schedule and Fifth Schedule of Customs Act, 1969 from Jun. 25, 2016. The certain provisions including 8% sales tax on sugar, exemption from sales tax on pesticides and their active ingredients, reduction in sales tax on agriculture tractors to 5%, sales tax of 5% applicable on urea fertilizer, increase in the sales tax rate on Category "B" and Category "C" mobile phones from PKR 500 and PKR 1000 to PKR 1000 and PKR 1500 respectively, increase in FED rate to 11.5% on aerated waters & beverages, FED at PKR 1/kg now chargeable on cement will be implemented from Jun.25, 2016 (today). BR. Sales tax deductions to be automated from July 1 FBR has said that sales tax deductions will be made through an automated system from July 1. In this regard, the FBR has developed software for the automated verification of Sales Tax Registration Number (STRN) and deduction of applicable rates of sales tax from vendors’ claims submitted at accounting offices. Ahead of the software’s implementation on July 1, the FBR has started contacting government departments and ministries to instruct concerned staff to ensure purchases are made from registered vendors. Dawn. FTA with Britain: Consultations to begin after Eid Pakistan govt. will start inter-ministerial consultations after Eid-ul-Fitr on signing a Free Trade Agreement (FTA) with Britain as GSP plus benefits may be threatened in the event that the country decides not to accord the same preferences. Pakistan's exports to United Kingdom increased by 32.6% from $ 1.27Bn in 2012 to $ 1.65Bn in 2014. The overall trade figures may not vary dramatically based only on Brexit. However, future trade prospects will depend on whether the UK remains part of the Customs Union. In textiles, Pakistan would have to see whether the UK gives the same access which it gives to competitors particularly Bangladesh, India, Turkey, China and Vietnam. BR. GSP Plus: Civil society inducted to meet conditions In order to improve trade with the European Union under the Generalised Scheme of Preferences (GSP) Plus status, the federal government has restructured the Treaty Implementation Cell (TIC) by inducting civil society representatives to meet the obligations. Tribune. Large-scale manufacturing grows by 4% Large-scale manufacturing (LSM) grew by 3.92% in the first 10 months of the outgoing fiscal year from a year ago period reflecting a partial revival in the industrial output. On a year-on-year basis, the LSM grew by 3.15pc in April 2016 over the corresponding month of last year as per Pakistan Bureau of Statistics. Industry-specific data shows that automobiles recorded highest growth of 20.39%, fertilizers 15.47%, non-metallic mineral products 10.39%, chemicals 9.42%, rubber products 8.13%, leather products 7.66%, pharmaceuticals 6.29%, food, beverages and tobacco 1.83%, coke and petroleum products 0.10% and textile 0.56%. Dawn. Last three years: parameters record marked improvement: Dar Finance Minister Ishaq Dar has said that economic parameters have recorded significant improvement over the last three years and it is time to accelerate the growth momentum of economy. The Minister highlighted that foreign exchange reserves position has improved significantly over last three years and that it will improve further by the end of the FY16; touching $ 23Bn mark. BR. Section 41B inserted in SECP Act: NAB, FIA restrained from acting against brokers Federal and provincial investigation agencies, particularly National Accountability Court (NAB) and Federal Investigation Agency (FIA) are no more allowed to move against any person regulated by the SECP without a reference from the apex regulator. Also, no agency, bureau, authority or institution would be able to deal with any proceeding which is under consideration by the SECP. The federal govt. has legislated upon on May 11, 2016 through amending SECP Act, 1997 (XLII of 1997). BR. Pakistan, Afghanistan agree to constitute high-level mechanism Pakistan and Afghanistan have agreed to constitute a high level bilateral mechanism for consultation and co-ordination on various important issues relating to bilateral relations including security and border management, movement of people and vehicles between the two countries and other relevant issues. The main purpose of this mechanism would be not only to address and resolve issues of concern to both sides through amicable means but also to prevent the recurrence of violent incidents like the ones witnessed recently in Torkham. BR. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 24-Jun PKR 104.84 0.06% USD-Open MKT 24-Jun PKR 105.20 0.40% KSE-100 index FIPI 24-Jun 24-Jun Pts. $ Mn 37,389 -4.82 -2.22% NM** Crude (JU'16) 24-Jun $/bbl 50.16 0.00% Gold (MY'16) 24-Jun $/oz 1,258.6 0.12% Gold (10g) Local 24-Jun PKR 42,590 1.82% Silver (MY'16) 24-Jun $/oz 17.32 0.00% Cotton(KHI)-40 kg 24-Jun PKR 6,147 0.00% Kibor-6M 24-Jun % 6.09% -0.01% Forex Reserves 17-Jun $ Bn 21.77 1.63% Remittances Jul-May 16 $ Bn 17.84 5.58% Exports* Jul-May 16 $ Bn 19.15 -12.39% Imports* Jul-May 16 $ Bn 40.32 -2.74% Trade Balance* Jul-May 16 $ Bn -21.17 -7.28% Current Account Avg. CPI-FY16* Jul-Apr 16 Jul-May 16 $ Mn % -1,519 2.82 17.71% WoW YoY May-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX (At 4:00PM), NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 GBP, 24-Jun-16, 146.0 155 145 135 EUR, 24-Jun-16, 117.0 125 115 105 95 USD, 24-Jun-16, 105.0 85 75 Jun-15 Sep-15 USD Dec-15 GBP EUR Work on 1,410MW Tarbella 4th extension project, Mangla section stopped Work on the important 1,410MW Tarbella 4th extension project has been stopped due to increase in the water level in the reservoir. Besides Tarbella 4th extension, work on Khaliq Abad section of Mangla Dam has also come to a standstill. In this regard, the contractor stopped working on the intake component of the Tarbella 4th extension project, evacuated the staff and erected gates for the protection of the already-completed work. The Nation. Brexit vote batters global markets Sterling crashed 10% to a 31-year low at one point and the euro also plummeted against the dollar, as traders had banked in the run-up to the vote on Britain opting to remain in the EU based on polls and bookmakers’ predictions. London’s benchmark FTSE 100 index plummeted 7.5% at the open, but began to recover after British Prime Minister David Cameron said he would step down and pledges by central banks to provide sufficient liquidity to volatile markets. Dawn. Jun-16 Quote of the Day "Get back in touch with self-mastery because it’s the one thing that never goes away. You’re the one person you’re stuck with forever." Mark Lack Chart of the Day Pakistan Credit Loan Position (Outstanding) 14 11.67 12 9.372 10 FBR allows deregistration to clearing agents FBR has finally allowed deregistration to customs clearing agents from its tax system. According to a notice issued by the board, the clearing agents, who are not doing business in the territory of federal capital, are not required to continue their registration with the FBR. And if they do not discontinue their registration the tax returns have to be submitted on regular basis else legal action will be taken as per the law. BR. Mar-16 Source: KCCI Research ; Oanda.com 10.24 7.836 8 6 12.33 5.165 5.737 6.503 4 2 0 FY-09 Amount in PKR Tn FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 10M FY 16(Apr) 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