Pakistan Daily Economy Update - 26 August

Transcription

1. Aug . 26, 2017 KCCI - eBulletin Punjab shows slowest growth rate; Baluchistan’s highest population soars to 208Mn The Council of Common Interests (CCI) has been presented provisional results of recently conducted population census. There is an annual growth rate of 2.40% in population as well as a considerable increase in migration from rural to urban areas. The population in Punjab stood at 110.01Mn with an annual growth rate of 2.13%, followed by Sindh (47.89Mn) with annual growth rate of 2.41%, KP (30.52Mn) with annual growth rate of 2.89% and Baluchistan’s population was ascertained at 12.34Mn with a 3.37% annual growth rate. The share of urban population has increased from 32.52% in 1998 to 36.38% in 2017. In Punjab, urban population has increased to 36.71% in 2017 from 31.27% in 1998 while Sindh’s urban population has increased to 52.02% in 2017 from 48.75% in 1998. BR. Pakistan population soars to 208Mn Pakistan’s population has reached 207.8Mn with an increase of 57% (75.4Mn) since 1998, including Afghans and other aliens. The female population comprises 48.8% of the total population where male population makes up 51.2%. In the last 36 years, the population grew by 146.6%. The majority of Pakistanis, 63.6% (132.19Mn) live in rural areas of the country down from 65% in 1998. The smaller provinces - (KP, Balochistan) and FATA saw increase in population growth while a declining trend was observed in the growth rate of the two bigger provinces - Punjab and Sindh. The Nation. Non-production of record by FBR a serious violation of law: AGP The Auditor General of Pakistan (AGP) has said that non-production of record by the FBR is a serious violation of law, which created hindrance in discharging constitutional role of the Auditor General's Department. According to the AGP report of Inland Revenue and Customs for audit year FY17, the AGP has highlighted audit could not verify accuracy of revenue collection or amount of expenditure incurred due to non-production of auditable record. BR. Sindh to protest against PKR 6Bn tax deduction by FBR At source deduction of over PKR 6Bn by the FBR is unconstitutional and illegal, said Sindh Chief Minister Murad Ali Shah, adding he would take up the issue in a meeting of the Council of Common Interests (CCI). Presiding over a preparatory meeting for the CCI, the CM said the deduction of the withholding tax imposed on vehicles for FY16 went against the spirit of an agreement between the Sindh government and the State Bank. Talking about the allocation of 1,200 cusecs of additional water for Karachi’s K-IV project, the CM said he would make all-out efforts to get the request approved. On the post-devolution status of the Employees Old-age Benefits Institution (EOBI) and Workers Welfare Fund (WWF), the CM was requested to urge the CCI to stop the collection of WWF from Sindh because the FBR is still collecting it. Tribune. New minister optimistic about export prospects Commerce Ministry is to approach Prime Minister Shahid Khaqan and request him to approve policy reforms to reverse declining trend in exports including implementation of the export incentives package in letter and spirit. The Commerce Ministry, in a meeting with Finance Ministry on the external account position, gave its own point of view whereas Finance Division presented its own logic. The meeting was briefed on various financing measures to meet the current account deficit in the short term including increased inflows of FDI as well as investments under the CPEC. Other options such as tapping capital markets and trade finance facilities were also discussed in the meeting. BR. Govt. likely to import LNG, POL products from Maldives The govt. is likely to import LNG and POL products from Maldives after an Inter-Governmental Agreement (IGA) is inked between the two countries. The federal cabinet has been informed that a delegation of State Trading Organization (STO), a state owned organization of Maldives, visited Pakistan in Jun.’16 and met with the Managing Director, Pakistan State Oil Company Limited (PSOCL) to discuss bilateral co-operation in the field of energy. Prime Minister Office had approved a proposal of Petroleum Division to start negotiations with 23 companies of different countries for import of LNG, POL products and setting up of an LNG terminal on Government-to-Government basis. BR. SBP launches credit guarantee scheme for businesswomen SBP has launched refinance and credit guarantee scheme for women borrowers operating in the underserved areas of the country. The SBP has launched a scheme with 0% refinance rate and 60% risk coverage for small businesses operated by \ women entrepreneurs. Under the refinance cum credit guarantee scheme, financing up to PKR 1.5Mn will be provided to women entrepreneurs for a period of up to 5 years, including maximum grace period of up to six months at a markup rate of up to 5% per annum to meet the credit needs of their businesses. BR. PSX mulls new counter for trading of less liquid stocks Pakistan Stock Exchange (PSX) is mulling a separate counter for trading of less liquid stocks in a bid to ramp up free-float in the bourse and curb price manipulation. An equity stock will be classified as less liquid stock if it is below any of the thresholds relating to free-float, number of days traded and average daily traded value and volume as prescribed by the exchange. Higher float on PSX will lead to increased trading, better price discovery and reduced chances of manipulation. The News. Governor, mayor to ask Centre to fund uplift of city’s rural areas In a meeting held at the Governor House, the Sindh governor and the city mayor decided on writing to the federal government for financial support to develop and improve Karachi’s rural areas. The meeting was called with respect to complaints by the District Council Karachi (DCK), the committee entrusted with development of the city’s suburban areas. These areas has not being considered for funds in the PKR 25Bn Karachi development package recently announced by the federal government. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M 25-Aug 25-Aug 25-Aug 25-Aug 24-Aug 24-Aug 25-Aug 24-Aug 25-Aug 25-Aug PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.39 106.85 42,642 2.35 47.59 1,285.5 43,714 16.59 6,430 6.15% Forex Reserves 18-Aug $ Bn 20.05 0.00% 0.28% 0.88% NM** -1.59% -0.36% 0.00% -2.87% -0.83% 0.00% WoW 0.53% YoY 16.04% 10.58% 36.74% -55.46% -210.12% 162.81% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-17 Remittances $ Bn 1.54 Jul-17 Exports* $ Bn 1.63 Jul-17 Imports* $ Bn 4.84 Jul-17 Trade Balance* $ Bn -3.20 Jul-17 Current Account $ Mn -2,053 Foreign Direct Inv. $ Bn 0.22 Jul-17 Jul-May 17 LSM Growth* % 5.69 % 2.91 Jul-17 Avg. CPI-FY17* Discount Rate % 5.75 Jul-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 145 GBP, 25-Aug-17, 135.3 135 125 EUR, 25-Aug-17, 124.7 115 105 95 Aug-16 USD USD, 25-Aug-17, 105.3 Nov-16 GBP EUR Feb-17 MCB profit up 24% MCB Bank posted a consolidated profit of PKR 13.6Bn (EPS of PKR 12.18) for 1HCY18, up 23.6% from a year ago. Net interest income (NII) in the first half of 2017 declined 15%. NII in the second quarter also witnessed a 15% drop on an annual basis. Dawn. Aug-17 "A leader is one who knows the way, goes the way, and shows the way." John C. Maxwell Chart of the Day Pakistan's 6th Population Census ( Province-wise 2017) Sindh, 47.89 , 23% Balochistan, 12.34 , 6% Punjab, 110.01 , 53% ICT, 2.01 , 1% Reverse remittances rise to $ 142Mn Profits and dividends on FDI repatriated in Jul’17 amounted to $ 142Mn compared to $ 125Mn in Jul’16, according to the data released by SBP. In contrast FDI in Jul’17 remained $ 222.6Mn compared to $ 84.7Mn. Dawn. Banking sector’s spread shrinks to 4.97% in July Banking sector’s spread has fell 9 basis points (bps) to 4.97% YoY in Jul’17 as competition increased in the wake of soft interest rates. Spread also registered a decline of 5 basis points MoM basis. The spread continued to narrow due to soft monetary policy by the central bank where key policy rate stands at 42-decade low of 5.75%. Dawn. May-17 Source: KCCI Research ; Oanda.com Quote of the Day KPK, 30.52 , 15% FATA, 5.00 , 2% Values $ Mn Value inin Mn Source: KCCI Research, SBP Source: KCCI Reseach, PBS 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