Pakistan Daily Economy Update - 27 July

Transcription

1. Jul . 27, 2016 KCCI - eBulletin Murad Ali Shah named as next Sindh CM In a widely expected move, the Pakistan Peoples Party formally nominated senior Sindh minister Syed Murad Ali Shah as chief minister after outgoing provincial chief executive Syed Qaim Ali Shah handed in his resignation on Jul, 26. 16. Dawn. Early harvest projects under CPEC: ECC grants tax exemption The Economic Co-ordination Committee (ECC) has granted exemption from customs duties, levies and other relevant taxes on equipment import and construction material for the completion of two early harvest projects of Karakoram Highway (KKH) phase II and Karachi-Lahore Motorway under the China Pakistan Economic Corridor (CPEC). Pakistani and Chinese govt. are proactively promoting construction of the CPEC and entered into a Framework Agreement. The agreement envisages construction of four early harvest projects including Karakoram Highway (KKH) Phase-II, Karachi-Peshawar Motorway, Gwadar East-Bay Expressway and New Gwadar International Airport. BR. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 26-Jul PKR 104.84 -0.01% USD-Open MKT 26-Jul PKR 104.85 0.44% KSE-100 index FIPI 26-Jul 26-Jul Pts. $ Mn 39,147 1.40 0.33% NM** Crude (JU'16) 26-Jul $/bbl 42.65 -1.07% Gold (MY'16) 26-Jul $/oz 1,328.0 0.92% 26-Jul PKR 44,228 -0.10% 26-Jul $/oz 19.72 0.49% 26-Jul PKR 6,843 -2.30% 26-Jul % 5.97% -0.03% 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% Plan to complete PSM privatisation in six months Gold (10g) Local The govt. plans to complete the privatisation of Pakistan Steel Mills (PSM) in the next six months as the mill is not operational since Jun.’15 due Silver (MY'16) to suspension of gas supply. In this regard, the Cabinet Committee on Privatization (CCoP) had decided in mid-Jul.’16 to go ahead with the Cotton(KHI)-40 kg privatisation of the PSM after Sindh govt. showed no interest in acquiring the mill. The Nation. Kibor-6M Export of 0.6Mn tons of wheat: ECC approves extra rebate of $ 30/ton ECC has approved an additional rebate of $ 30/ton for export of 0.6Mn tons of wheat and wheat flour with 0.3Mn tons each by Punjab and Sindh govt., till Nov. 30, 2016. This rebate would be over and above the rebate already approved by ECC at $ 55/ton for Punjab and $ 45/ton for Forex Reserves Sindh respectively. In addition to this rebate, as in past, additional rebate of $ 35 and $ 45/ton would be provided by the govt. of Punjab and Sindh respectively. This addition will enhance the total rebate to $ 120/ton. BR. No trade talks with India till improvement in relations: Dastgir Commerce Minister Khurram Dastgir has said that trade talks between Pakistan and India could not resume till improvement in diplomatic relations of the two countries. The minister said that current trade between two countries has not been affected by the recent tension over Kashmir issue. He further said that the projects under CPEC have now become visible on the ground and in the years to come, the country will witness a rapid development in the country due to the $ 46Bn mega project. The Nation. WoW YoY May-16 Discount Rate % 5.75 Industry resents duty-free import of spare parts for Belarus tractor maker The local tractor industry has resented the Engineering Development Board’s (EDB) permission to Minsk Tractor Works Pakistan Ltd to Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* WoW= week on week; YoY=Year on Year assemble Belarus model MT 510 and import spare parts duty free. The local industry urged the federal government to review decision as ** Not Meaningful Major Currencies incentives to import tractor parts at zero rated custom duty has already generated uncertainty for future of local manufacturers . Dawn. Govt. asks ministries to submit development projects for approval The govt. has directed all the ministers to expedite submission of PC-1 for more than a hundred unapproved development projects in order to get them approved from the concerned departments. The ministry of planning, through a notice, asked all the relevant departments to prepare PC-1 for all 118 unapproved projects worth billions of rupees, included in the list of the public sector development program (PSDP) of 2016/17, and submit them till Sep. 30th, 2016. The News. 175 Govt. to import gas exclusively for power plants The govt. has decided to import gas exclusively for the power sector ahead of commissioning of three liquefied natural gas (LNG)-based plants of 3,600MW in Punjab next year. Three LNG-based power plants of 3,600MW will come online in Punjab by June 2017. For this purpose, various govt.-run institutions involved in importing and selling re-gasified LNG have resolved all their contentious issues and reached a tripartite agreement to supply 600Mn cubic feet of gas per day. Tribune. 125 GBP, 26-Jul-16, 137.5 145 135 EUR, 26-Jul-16, 115.2 115 105 95 USD, 26-Jul-16, 104.8 85 75 Jul-15 Oct-15 USD Bill Gates Chart of the Day Local Vs. International Gold Prices (Feb.'13 - Till Date) 1,700 55,000 53,000 1,600 51,000 1,500 49,000 1,400 47,000 1,300 43,000 45,000 41,000 1,200 39,000 1,100 37,000 11-Jun-16 11-Apr-16 11-Feb-16 11-Oct-15 11-Dec-15 11-Jun-15 11-Aug-15 11-Apr-15 11-Feb-15 11-Oct-14 Gold (GO1OZ $/oz) (L.H.S.) 11-Dec-14 11-Jun-14 11-Feb-14 11-Oct-13 11-Dec-13 11-Jun-13 35,000 11-Aug-13 1,000 11-Apr-13 Gold price in clash with global trend On Jul, 26. 16 local yellow metal rate reached PKR 51,850, up by PKR 250 from Jul, 25. 16 while per 10 gram rate went up by PKR 214 to PKR 44,442 based on international price of $ 1,321 per ounce. Surprisingly, the exchange rate, on which domestic bullion rates are also calculated, has not shown drastic fluctuations for the past few months. Bullion traders have kept the domestic rate up at a time when people are buying gold jewellery for the marriage season which peaks after Eid ul Fitr. Dawn. Jul-16 Source: KCCI Research ; Oanda.com "'It's fine to celebrate success but it is more important to heed the lessons of failure." 11-Feb-13 UNIDO unveils SEI project for industrial sector The United Nations Industrial Development Organization (UNIDO) launched a project "Sustainable Energy Initiative (SEI) for Industries in Pakistan" on Jul, 26. 16. which aimed at helping the industrial sector to explore alternate energy for industrial sector development. UN Resident Coordinator in Pakistan, Neil Buhne, spoke on the occasion and noted that the sustainable development goals (SDGs) are very important for Pakistan and "This project, in particular, is important as it will not only directly address SDG-9 that is industry, innovation and infrastructure which in fact falls under the domain of UNIDO, but it is going all the way taking care of other SDGs such as no poverty, food and hunger and even others." Dailytimes. Apr-16 EUR Quote of the Day Quick response system to help cotton farmers Federal Minister for Planning, Development and Reforms Ahsan Iqbal on Jul, 26. 16 directed authorities concerned to establish a quick response system to help farmers dealing with cotton crop-related diseases. The minister identified climate change and plummeting international commodity prices as major challenges to Pakistan’s agricultural sector and called for efforts to increase productivity and lower input costs. Dawn. Hungarian envoy for increasing trade volume with Pakistan Hungarian Ambassador to Pakistan Istvan Szabo said that the currently trade between Hungary and Pakistan is $ 39Mn, which - with the mutual efforts - would be enhanced in the near future. Istvan Szabo said that Pakistan and Hungary established diplomatic relations in 1965 and last year celebrated the golden jubilee of the ties between the two countries. He said that Pakistan had helped a lot of Hungarians, especially when the Soviet invasion of Hungary in 1956. Dailytimes. Jan-16 GBP 11-Aug-14 FBR asks sales taxpayers to submit trade details Tax authorities have asked registered sales tax persons to submit details of their trade by 10th Aug, 2016 in order to get an adjustment in their liabilities. According to the FBR, input adjustment would only be available against those supplies which were verified by the online system. The system has been launched to stop sales tax frauds and eliminate bogus companies. The News. 155 11-Apr-14 NTDC's plea against 9 IPPs rejected by LCIA The London Court of International Arbitration (LCIA) has rejected the plea of National Transmission and Despatch Company (NTDC) against nine Independent Power Producers (IPPs), ordering the state-owned company to withdraw application from a Lahore-based civil court and refrain from taking any further step which can disrupt arbitration. The IPPs had filed enforcement claims against NTDCL in light of the determination given by an expert under the Power Purchase Agreements (PPAs) with NTDCL. The decision was in favor of IPPs which NTDCL failed to challenge within the prescribed time limit. BR. 165 Gold (PKR/10gm) (R.H.S.) Source: KCCI Research, PMEX Corporate result: FFBL posts PKR 621Mn loss in 2QFY16 Disclaimer Fauji Fertilizer Bin Qasim (FFBL) has posted a consolidated loss of PKR 621Mn (LPS: PKR 0.67) in 2QFY16 compared with a profit of PKR 1.2Bn This report has been prepared by KCCI Research & Development Cell. The information (EPS: PKR 1.26) in 2QFY15. Tribune. 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 UBL profits rise 23% in 2QCY16 The United Bank Limited has reported 23% of increase in its 2QCY16 net profit, amid an increase in the net markup earned. The company has verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' reported a net profit of PKR 7.03Bn (EPS: PKR 5.68) as compared to PKR 5.71Bn (EPS: PKR 4.46) during the same period of the last year. The understanding of the news item. The R&D Dept. bears no responsibility for its correctness or company also announced interim cash dividend of PKR 3/share. Tribune. accuracy. Contact: res@kcci.com.pk