Pakistan Daily Economy Update - 27 March

Transcription

1. Mar . 26-27, 2017 KCCI - eBulletin Policy rate remains unchanged at 5.75% SBP’s Monetary Policy Committee has decided to keep the policy rate unchanged at 5.75% for the next two months (Apr. – May.’17). In the latest Monetary Policy Statement, the SBP has said that rising real incomes in a low interest rate environment are indicating pick up signs in domestic demand. Similarly, improving consumer confidence indicates further increase in consumer demand. Hence, barring any major cost shocks, domestic demand will define the underlying trend of headline inflation in FY18. BR – Sun. SBI chairwoman holds talks with Chinese investors Sindh Board of Investment (SBI) Chairwoman Naheed memon has held talks with Chinese investors pertaining to value addition in the agriculture sector, cold storage and investment opportunities. The 20-member delegation from the Chinese province of Hunan led by the Hunan Chamber of Commerce and Industry, Chairman Wo Shugan called on her. Miss Naheed said that the Sindh govt. with the cooperation of the investors would create more employment opportunities in the province. She said that the Sindh govt. is providing attractive incentives to investors in the packaging sector and also delivered a detailed presentation in this regard. Daily Times – Mon. No such phenomenon exists: shipping companies begin collecting congestion charge Shipping companies have started collecting ''Port Congestion Charge'' (PCC) from importers, despite the fact that no such issue exists at the terminals currently. In this regard, Karachi International Containers Terminal (KICT), in its letter to Custom Agents, has stated that all terminals faced temporary congestion however with bold measures taken by KICT, all vessels are now being dispatched timely. However shipping lines are collecting $ 150/20ft container and $ 300/40ft container from the consignee at destination before delivery order release. BR – Sun. Thar coal-fired projects: Ministry urges Nepra to lower levelised tariff Water and Power Ministry has urged Nepra to lower the levelised tariff of Thar coal-fired projects by 15-20% from existing upfront tariff for only super critical technology projects as the assumption has completely changed after the CPEC investment. In this regard, Nepra has fixed Mar. 28, 2017 for public hearing in Islamabad to seek proposals from stakeholders. In its letter, Water and Power Ministry has reminded Nepra that it has determined highly incentivized tariff for Thar coal power plants because of varying reasons. The tariff had been kept higher at the time when investors are not too many, interest is lacking due to security concerns and uncertainties dogged infrastructure linkages with the gigantic coal field in Thar deserts. BR - Mon, Tribune – Sun. CPEC trade prospects: government plans to assign management of Sust Dry Port to NLC The govt. is planning to assign management of Sust Dry Port to National Logistic Cell (NLC) through FBR in light of future prospects and anticipation of enhanced trade under CPEC. In a meeting on CPEC held for discussing infrastructure of the Sust Port, it has also been decided that revenue collected from management of Sust Border would be divided between the Gilgit-Baltistan govt. and Gilgit-Baltistan Council in the ratio of 80:20. BR – Sun. Sugar price rising after reopening of Pak-Afghan border Wholesale sugar prices have started crawling up after the reopening of the Pak-Afghan border coupled with a costly public campaign by millers for allowing exports of the 1Mn tons surplus commodity. Wholesale sugar price fell to PKR 55/kg in the first week of Mar.’17 from PKR 58-60/kg in Feb.’17 while in Jan.’17 it was for PKR 62/kg. The wholesale price is now tagged at PKR 57/kg. After a gap of seven months, sugar exports resumed from Feb.’17 with export of 15,885 tons fetching $ 8.7Mn foreign exchange. During 7MFY17, there were nil exports however in 7MFY16, sugar exports stood at 166,532 tons worth $ 75Mn. Dawn – Sun. Punjab receiving lion’s share of new gas schemes The govt. has approved 97 natural gas expansion schemes worth more than PKR 37Bn on the recommendations of members of parliament. The 97 schemes were all approved after the prime minister recently relaxed a moratorium on the expansion of gas supply schemes in Punjab. Of the total amount, schemes worth PKR 27.23Bn would be implemented through indirect funding, while those worth PKR 7.6Bn would be financed by direct funding through block allocations and PSDP. More gas connections worth PKR 2.3Bn are also being implemented under the Sustainable Development Goals (SDGs), which includes PKR 315Mn to be spent by Sui Southern Gas Company Limited (SSGCL) and PKR 2.01Bn by SNGPL. Dawn - Mon. Summer crops at risk in Sindh on water shortages Sindh growers are advised to delay the sowing of cotton and chilli crops, as an acute water shortage is likely to cause colossal losses to them this season. Owing to the same reason the cotton sowing area in Sindh is likely to remain under cultivated this year. This dearth of water will obviously damage the major crops and may continue to hurt the agriculture economy of the province. Many growers, who have already cultivated sugarcane, banana, and cotton in scattered areas, are very much likely to take a hit due to the scarcity of water. The News – Sun. Govt responsible for decline in textile exports Garment exporters have said that the govt. is responsible for the current decline in textile exports because of its delay in refunds to exporters. The govt. still has not released PKR 250Mn to exporters which has hurt the textile industry. According to the PBS, the textile exports have reduced by 2.53% in Feb’17 compared to the same month in the previous year. Tribune – Sun. Discos: FBR eyes higher ST collection FBR is strictly monitoring sales tax collection from power distribution companies (Discos) to check their input/output adjustment of sales tax and to maximize collection from power sector in the last quarter (Apr.-Jun.) FY17. In this regard, Regional Tax Offices (RTOs) have received instructions from the FBR on the monitoring of sales tax payments by Discos for Feb.’17 and onwards. BR – Mon. British firm to construct cement plant in KP British firm has agreed to construct cement plant in Khyber Pakhtunkhwa. In this regard, understanding to this effect has been reached between the KP govt. and British firm. The plant would be completed at a cost of $ 400Mn by the end of 2020. The Nation – Mon. OPEC, non-OPEC to look at extending oil-output cut by six months A joint committee of ministers from OPEC and non-OPEC oil producers have agreed to review whether a global pact to limit supplies should be extended by six months. In this regard, OPEC and rival oil-producing nations are meeting in Kuwait to review progress with their global pact to cut supplies. The OPEC and 11 other leading producers including Russia had agreed in Dec.’16 to cut their combined output by almost 1.8Mn barrels per day in the first half of 2017. The original deal was to last six months, with the possibility of a six-month extension. Russian Energy Minister Alexander Novak has said it is too early to say whether there would be an extension, although the agreement is working well and all countries are committed to 100% compliance. BR – Mon. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (MY'17) Gold (AP'17) Gold (10g) Local Silver (AP'17) Cotton(KHI)-40 kg Kibor-6M 24-Mar 24-Mar 24-Mar 24-Mar 24-Mar 24-Mar 24-Mar 24-Mar 24-Mar 24-Mar PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.86 106.90 48,971 0.71 48.13 1,244.9 43,628 17.73 7,433 6.13% Forex Reserves 17-Mar $ Bn 22.05 0.00% 0.05% -0.09% NM** 0.00% -0.26% 0.00% 1.28% 2.21% 0.01% WoW -1.01% YoY -2.52% -3.90% 15.99% -34.33% -120.51% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Feb 17 Remittances $ Bn 12.36 Jul-Feb 17 Exports* $ Bn 13.32 Jul-Feb 17 Imports* $ Bn 33.52 Jul-Feb 17 Trade Balance* $ Bn -20.20 Jul-Feb 17 Current Account $ Mn -5,473 % 3.85 Avg. CPI-FY17* Jul-Feb 17 Mar-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Mar-16 USD GBP, 25-Mar-17, 130.8 EUR, 25-Mar-17, 113.2 USD, 25-Mar-17, 104.9 Jun-16 Sep-16 GBP Dec-16 Mar-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "There is always space for improvement, no matter how long you've been in the business." Oscar De La Hoya Chart of the Day LSM Constituent Growth during 7MFY17 Iron & Steel Products Electronics Non Metallic Mineral Products Pharmaceuticals Automobiles Fertilizers Food, Beverages & Tobacco Paper & Board Rubber Products Textile Coke & Petroleum Products Chemicals Engineering Products Leather Products Wood Products -150% -95.82% -100% Value in % 17.46% 13.49% 7.78% 7.57% 6.91% 1.18% 4.79% 6.61% 0.38% 0.29% -0.67% -2.13% -0.54% -17.54% -50% 0% 50% Source: KCCI Research; 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. 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