Pakistan Daily Economy Update - 28 August

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1. Aug . 27- 28, 2017 KCCI - eBulletin PM describes LNG as ‘only solution’ Prime Minister Shahid Khaqan Abbasi has inaugurated another LNG terminal established by the Engro Terminal Limited at Port Qasim within record 330 days and with a capacity to re-gasify up to 600 mmscfd. With this capacity, Engro terminal has emerged as the single largest gas source in Pakistan. The terminal has so far handled 100 LNG cargo ships with 6.1Mn tons of LNG. The Prime Minister further said that the govt. is eyeing complete replacement of furnace-based energy plants in 2019. BR – Mon. List of Indicators Date / Period Unit Value Change Daily PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.39 106.85 42,642 2.35 47.80 1,291.2 43,714 17.03 6,430 6.15% $ Bn 20.05 0.00% 0.28% 0.88% NM** -1.16% 0.09% 0.00% -0.32% -0.83% 0.00% WoW 0.53% YoY 16.04% 10.58% 36.74% -55.46% -210.12% 162.81% Sindh rejects census results, will take up issue with CCI Sindh Information Minister has announced that the provincial government would raise its objections to the results of the population census in the Council of Common Interests. Addressing a press conference the minister said that Sindh government at the time of starting the population census had demanded for provision of a copy of lists of the population forms which were filled in the provinces so that the province could tally the results of population census; it is right of every province to have details of their population census but the demand was overlooked. Dawn-Mon. 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 25-Aug 25-Aug 25-Aug 25-Aug 25-Aug 25-Aug Packaged drinks: laws require companies to give disclosure about contents: CCP An inquiry report of the Competition Commission of Pakistan (CCP) against fruit juice manufacturers revealed that various laws and regulations require companies to give complete disclosure and information about the contents of the packaged drinks. CCP has caught six companies misleading consumers by marketing and selling their artificial juices as original, without additives and 100% pure, and started legal proceedings against these popular brands for prima facie contravention of Section 10 of the Competition Act, 2010. BR - Sun. Forex Reserves 18-Aug Census 2017: FD seeks details of expenditures, unutilized amount Finance Division (FD) has sought details of financial cost of 6th Population and Housing Census 2017 from PBS with the directives to surrender unutilized amount at earliest. The PBS would be able to provide details of expenditure in the next few weeks after collecting them from various departments involved in the process. The expenditure is expected to remain below the allocated budget of PKR 18.5Bn for the exercise and some saving is likely. The census expenditure included security costs, expenditure on provision of transport for field staff, and remuneration charges to enumerators. BR – Sun. Banks asked to address imbalances: PKR 1Tn agricultural credit target set for FY18 Setting a strategic target of PKR 1Tn for agricultural credit disbursement for ongoing FY18, SBP has advised financial institutions to treat agriculture financing as a strategic part of their overall credit growth policy. In this regard, SBP Governor Tariq Bajwa has urged banks to address geographical and sectoral imbalances and further stressed achieving agri credit target for FY18. The Governor further stressed that in particular, financial institutions need to come up with new ideas and products for spreading their outreach to remote and underserved areas such as Balochistan. BR – Sun. Banks asked to dedicate one-fifth of branches to agri-lending The Agricultural Credit Advisory Committee (ACAC) has proposed that banks should dedicate at least 20% of total branches to agri-lending. SBP Governor Tariq Bajwa on the occasion has stressed upon four key areas that require special attention of all stakeholders. These include strategizing the achievement of the PKR 1Tn disbursement target, increasing financial inclusion of smallholder farmers to address their credit needs, particularly for production loans, rationalizing the markup rates on agricultural financing to pass on the benefit of historically low discount rate, and increasing the banks’ footprint in underserved regions and provinces for reducing regional disparities. DawnSun. \ Economic Indicators Iris system has no mechanism to judge size of company: FBR FBR has said that the ''Iris'' system, used for calculation of tax liability, has no mechanism to judge on its own whether the company is actually a small company or not, and is totally dependent on the information given in the company's profile. An issue has been reported to the IT Wing FBR, concerning the miscalculation of tax liability in the case of a company, where ''Iris'' calculates the liability @25% whereas the subject company is not a small company. The reporting of this issue reveals a lack of understanding or the processes and the system and it is essential to clarify the situation so that such misunderstanding does not arise in any other LTU or RTO. BR – Sun. PCSIR plans textile research centre to facilitate SMEs Pakistan Council of Scientific and Industrial Research (PCSIR) will set up a multipurpose Textile Testing Research Centre in Faisalabad at an estimated cost of PKR 429 Mn, disclosed the PCSIR Chairman. The govt. has given the goahead for the project, which would particularly help SMEs achieve a quantum jump in textile exports. He pointed out that though world’s best quality fruits were produced in Skardu, a huge quantity was wasted because of the dearth of technology to preserve the produce. Tribune-Sun. Leather, fabric importers entitled to concessionary value-addition tax Import of finished goods related to five-export oriented sectors will continue to bear a concessional 2% valueaddition tax in addition to 17% sales tax. Pakistan Customs believes that since an amendment was made in a concessionary regime applicable from 1st Jul’17, concessions or value addition tax of 2% instead of normal 3% should not be available on the import of finished articles of leather and artificial leather, textile and textile made-ups. The News- Sun. Selective audit of ministries reveals PKR 3Tn irregularities The Auditor General of Pakistan (AGP) has raised objections over mismanagement, irregularities and weak financial control over PKR 3.12Tn of public money by 36 federal ministries during the audit year FY17. Submitted to the president of Pakistan and laid before the parliament in accordance with the requirements of Article 171 of the Constitution, the AGP has put on record that its findings were based on the scrutiny of public funds released to 36 out of 60 federal ministries and divisions. Dawn - Sun. 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, 27-Aug-17, 136.0 135 125 EUR, 27-Aug-17, 125.9 115 105 95 Aug-16 USD USD, 27-Aug-17, 105.4 Nov-16 GBP EUR Feb-17 May-17 Aug-17 Source: KCCI Research ; Oanda.com Quote of the Day "The only source of knowledge is experience." Albert Einstein Chart of the Day Pakistan's 6th Population Census (No. of Household) Balochistan , 1.78, 5.51% Khyber Pakhtunkhwa, 3.85, 11.94% ICT, 0.34, 1.04% FATA, 0.56, 1.73% Sindh, 8.59, 26.66% Punjab, 17.10, 53.11% Source: KCCI Research, PBS Values in Mn 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