Pakistan Daily Economy Update - 25 October

Transcription

1. Oct . 25, 2016 KCCI - eBulletin KCCI decision to start shutting shops from 9pm endorsed Representatives of different market associations and small traders of Karachi have unanimously supported Karachi Chamber’s decision pertaining to extending shops/ markets closing timings by two hours up to 9:00pm with an additional leniency period of 1 more hour for shopkeepers to completely shut down their business premises by 10:00pm. The small traders and market associations have also completely rejected the allegations against Karachi Chamber of Commerce and Industry (KCCI) and termed that all the allegations as ‘totally baseless’; saying that they were, they are and they will remain fully united under the umbrella of Karachi Chamber. The Nation. Pakistan out of economic crisis but needs to widen tax net, says IMF's Lagarde IMF Managing Director (MD) Christine Lagarde in a meeting with Prime Minister Nawaz Sharif in Islamabad on 24th Oct, 2016 maintained Pakistan is now "certainly out of economic crisis". The IMF officially endorses Pakistan’s economic recovery but has urged the country to continue key structural reforms if it wants to consolidate these gains. Dawn. Lagarde spells out priority areas for reforms The IMF Managing Director Christine Lagarde has urged Pakistani authorities to focus on three priority areas for economic reforms: reinforce economic resilience, raise the growth rate and make growth more inclusive. The director further said that another way to boost growth is by improving the business climate-by strengthening governance and enabling the private sector to thrive. BR. Growth government's main objective: Dar Finance Minister Ishaq Dar has said that after achieving economic stability, the govt.'s focus is now on growth and acknowledged that the downside risk to the economy is associated with the external balance of payment position. Addressing the event on "Emerging markets in the world economy, he maintained that Pakistan Microfinance Investment Company would be established by the end of current year as Pakistan Poverty Alleviation Fund (PPAF) may not cater to the needs of everyone, adding that the govt. is facilitating the private sector. BR. Minister stresses market access for SMEs, e-commerce Commerce Minister Khurram Dastgir Khan has called for enhancing market access for developing countries and special facilitation for SMEs and E-Commerce at WTO (World Trade Organisation). He made these remarks in a meeting of selected group of trade ministers in Norway, in which 25 out of 164 members were invited to deliberate on the trade and economic challenges faced by the global community. The minister raised the problems faced by Pakistani farmers and agriculture community especially cotton growers in the meeting and demanded a level playing field for cotton farmers. The Nation. Textile industry’s revival: Bailout package worth PKR 175Bn prepared Prime Minister Nawaz Sharif will soon take a decision on a huge bailout package of over PKR 175Bn for the textile industry aimed at supporting the exporters of textile products which accounts for more than 60% of the country’s total exports. Most of the package was related to concessions in taxes, duties and tariffs in addition to offering duty drawback to the exporters. Tribune. SBP notifies enactment of three acts SBP has notified enactment of three Acts that are Corporate Restructuring Companies Act, 2016, the Depositors Protection Corporation Act, 2016 and the Financial Institutions (Recovery of Finances) (Amendment) Act, 2016. Under the Depositors Protection Corporation Act, a Depositors Protection Corporation (DPC) as a subsidiary of the SBP will be set up for protection of small depositors in order to ensure financial stability and maintain public trust on the financial system. The main objective of the DPC is to compensate depositors for losses incurred by them to the extent of protected deposits in the event of failure of a member institution. BR. Establishment of corporate restructuring firms allowed SBP has issued a circular allowing the establishment of corporate restructuring companies with the power to acquire, manage, restructure and resolve non-performing loans. The SBP circular said that no corporate restructuring company will be incorporated without the prior approval of the commission. No corporate restructuring company will carry on business unless it is established as a public-limited company and holds a license issued by the SECP. Dawn. Industry leaders question use of Workers’ Profit Participation Fund Representatives of the business community have asked the government to give details about millions of rupees being collected each year on account of Workers’ Profit Participation Fund (WPPF). The fund is aimed at developing welfare projects like schools, housing colonies and health centers for business and industrial workers. Drawing attention towards the plight of workers, industry leaders urged the governments to investigate into unaccounted funds of the WPPF which could have improved the lives of workers if used properly. Dawn. Economic Indicators Date / Period Unit Value USD-Interbank List of Indicators 24-Oct PKR 104.84 Change Daily 0.03% USD-Open MKT 24-Oct PKR 104.20 -1.33% KSE-100 index FIPI 24-Oct 24-Oct Pts. $ Mn 40,852 -0.05 -1.06% NM** Crude (DE'16) 24-Oct $/bbl 50.46 -2.10% Gold (DE'16) 24-Oct $/oz 1,263 -0.22% Gold (10g) Local 24-Oct PKR 44,228 -0.19% Silver (DE'16) 24-Oct $/oz 17.57 0.34% Cotton(KHI)-40 kg 24-Oct PKR 6,575 -0.81% Kibor-6M 24-Oct % 6.06% 0.01% Forex Reserves 14-Oct $ Bn 24.46 4.12% Remittances Jul-Sep 16 $ Bn 4.70 -5.28% Exports* Jul-Sep 16 $ Bn 4.68 -8.98% Imports* Jul-Sep 16 $ Bn 11.75 10.70% Trade Balance* Jul-Sep 16 $ Bn -7.07 -29.21% Current Account Avg. CPI-FY17* Jul-Sep 16 Jul-Sep 16 $ Mn % -1,368 3.88 -136.27% WoW YoY Sep-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX (2pm) , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 GBP, 24-Oct-16, EUR, 126.3 24-Oct-16, 112.4 135 125 115 105 95 USD, 24-Oct-16, 103.4 85 75 Oct-15 Jan-16 USD Apr-16 GBP Jul-16 Oct-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day "The worst part of success is to try to find someone who is happy for you." Bette Midler Chart of the Day Quarterly Current Account Balance of Pakistan 1QFY17 -1,368 1QFY16 Govt. likely to allow export of 0.8Mn tons of urea The govt. is expected to permit export of 800,000 tons of urea in line with a proposal of the Ministry of Industries because of surplus production in the country. The Economic Coordination Committee (ECC) of the cabinet may take up the export proposal in the current week. According to the ministry’s estimates, 1.4Mn tons of surplus urea will be available by the end of ongoing Rabi crop-sowing season at the end of Mar’17. Tribune. 1QFY15 Pakistan’s LNG imports set to surge to 3bcfd by 2018 Pakistan, largely dependent on imported fuels for its energy needs, will be importing a cumulative of 3.0Bn cubic feet (bcf) per day of LNG by 2018 to bridge the demand supply gap, which has already crossed 4.0 bcfd mark, According to the govt. minister, one LNG terminal is already operational, while another would be ready by Jan’17and third by Jul’17, while two private sector terminals would be operational by 2018. The News. 1QFY12 -579 -1,651 1QFY14 -1,315 1QFY13 439 -1,367 1QFY11 -542 1QFY10 -981 -2000 -1500 -1000 -500 0 500 1000 SECP consults stakeholders on reforms in insurance regulatory framework Source: KCCI Research, SBP Value in $ Mn The Securities and Exchange Commission of Pakistan has held a roundtable at the Institute of Chartered Accountants of Disclaimer Pakistan, Karachi, on the proposed reforms in the insurance regulatory framework. The SECP Insurance Division executive director said the amendments are expected to improve the financial soundness of insurance companies and help develop a 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 robust and financially stable insurance sector where policyholders' interests are better protected. Daily Times. to be reliable and in good faith. Such information has not been independently verified. PSO profits surge 35% in 1QFY17 Pakistan State Oil’s (PSO) profit increased by 35% to PKR 4.37Bn (EPS: PKR 16.11) in 1QFY17, amid an increase in sales. The company had earned a profit of PKR 3.25Bn (EPS: PKR 11.97) in the same quarter last year. 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