Pakistan Daily Economy Update - 28 January

Transcription

1. Jan . 28, 2017 KCCI - eBulletin Pakistan’s exports to EU increase 37% in past three years: commerce minister Commerce Minister Khurram Dastgir has said in the European Parliament, in Brussels, Belgium, Pakistan’s exports to the European Union (EU) soared 37% during the last 3 years on the back of generalized scheme of preferences (GSP) plus status. He said that the export of machinery, chemicals and dyes from Europe, needed to meet the rising demand of Pakistani products particularly textiles and garments in the European markets, has also increased by 14%. He further said that GSP Plus offers huge potential for enhancing mutual trade between Pakistan and the European Union. The News. Pakistan unaware of African market’s potential Honorary Consul General of Rwanda, Farooq Aazam Khawaja in a meeting with Karachi Chamber of Commerce and Industry (KCCI), has expressed deep concern over the lack of awareness about trade potential and lucrative investment opportunities in the African market and urged the business and industrial community of Karachi to effectively penetrate into the African market by exploring this untapped and huge market with a massive population of more than 1.25Bn in 55 countries. He suggested that the business community could enhance trade and invest in different sectors of the African economy including pharmaceutical, infrastructure, textile and many others. Rwanda has been recording a strong growth of 7-8% for the past many years and every year around 900,000 visitors come to the country. Tribune. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank 27-Jan PKR 104.86 0.01% USD-Open MKT 27-Jan PKR 107.55 0.00% KSE-100 index FIPI 27-Jan Pts. $ Mn 49,964 1.85 -0.46% NM** $/bbl 53.84 1.80% $/oz 1,191 -0.72% Crude (MA'17) 27-Jan 26-Jan Gold (FE'17) 26-Jan Gold (10g) Local 27-Jan PKR 42,600 -1.68% Silver (FE'17) 26-Jan $/oz 16.82 -0.88% Cotton(KHI)-40 kg 27-Jan PKR 7,218 1.50% Kibor-6M 27-Jan % 6.12% 0.00% Forex Reserves 20-Jan $ Bn 23.25 WoW 0.24% Remittances Jul-Dec 16 $ Bn 9.46 -2.27% K-Electric contests ‘windfall profits’ claim The K-Electric has denied it is making “windfall profits” because of “excessive tariff setting” made by the NEPRA. Company’s claim that consumers had been charged in accordance with a multi-year tariff (MYT) formula designed by international consultants. It was approved and notified by the Ministry of Water and Power in 2002. The KE disputed the contents of a report headlined “NEPRA assailed over ‘windfall profits’ of KE”, which was published in Dawn. Dawn. Exports* Jul-Dec 16 $ Bn 9.91 -3.82% Imports* Jul-Dec 16 $ Bn 24.40 10.10% Trade Balance* Jul-Dec 16 $ Bn -14.49 -22.20% Current Account Avg. CPI-FY17* Jul-Dec 16 $ Mn % -3,585 3.88 -92.23% NTDC connects 1,320MW Sahiwal coal-fired plant with national grid National Transmission and Dispatch Company Ltd (NTDC) has announced to connect 1,320MW Sahiwal Coal-Fired Power Plant with national grid through a 500 kV transmission line under CPEC framework. Construction work of the 5km long transmission line was completed in Nov.’16 ahead of its deadline. First unit of Sahiwal Coal-Fired Power Plant is expected to start 660MW power generation in May 2017 whereas power plant will be fully operational with 1,320MW in Jun.’17. The Nation. Nov-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Pakistan to help Kyrgyzstan enter EU market Pakistan has agreed to share its experience and provide technical assistance for Kyrgyzstan that is keen to make inroads into the European Union market under the Generalized Scheme of Preferences (GSP) Plus. Kyrgyzstan, a Central Asian nation, expressed interest in learning from Pakistan’s experience in making exports to the 28-nation EU market. Tribune. YoY Major Currencies Nepra does away with upfront tariffs for new wind projects Doing away with expensive upfront tariffs, the NEPRA has announced around 20% lower benchmark tariff for competitive bidding for all future wind power projects to take advantage of the declining international technology prices. Based on various cost factors, the fresh benchmark levelised tariff for 100% foreign-financed wind projects was set at about 6.747 cents per unit and locally financed projects at 7.734 cents per unit. Once signed by an investor after the bidding, the tariff will be applicable for the 20-year life of the power project. Dawn. 175 FBR refuses to share audit parameters FBR has refused to share risk-based parameters used for selection of audit cases for (Tax Year 2015) under a new audit policy and stated that parameters are declared confidential through an amendment in the Finance Bill 2013. In this regard, Finance Standing Committee has observed that the committee would undo this amendment in Finance Bill for the next fiscal year when it would come to it for discussion after presentation of the budget. BR. 115 Census: CoAS Okays deployment of 200,000 troops Chief of Army Staff (CoAS) General Bajwa has approved the deployment of up to 200,000 troops for forthcoming sixth national population census. The much-delayed national population census will provide statistics about internal migration, urbanization, as well as rural and urban population across the country. BR. Statutory returns must be authenticated by authorized officer: SECP SECP has made it mandatory for all companies to ensure from Mar. 1, 2017 that the statutory returns filed with the Commission and Company Registration Offices (CROs) shall be authenticated by an officer who shall also be duly authorized through a resolution of the board of directors. It has been observed in many instances that such returns are authenticated by different directors/officers which has led to discrepancies, disputes and litigation. BR. 165 155 145 GBP, 26-Jan-17, 132.0 135 125 EUR, 26-Jan-17, 112.3 USD, 26-Jan-17, 104.7 105 95 85 75 Jan-16 Apr-16 USD Warren Buffett Branches of Banks in Pakistan 2,000 1,150 1,500 1,213 1,000 85 170 192 237 280 307 423 471 500 500 551 Attock Cement posts PKR 1.37Bn profits Attock Cement Limited has announced a net profit of PKR 1.37Bn (EPS: PKR 12.03) in 6MFY17 which is 19% higher than the profits of PKR 1.15Bn (EPS: PKR 10.07) during 6MFY16. The News. Chart of the Day 1,312 Attock Refinery’s profits rise 166% Attock Petroleum Limited’s (APL) net profit doubled to PKR 3.15Bn (EPS: PKR 38.06) in 6MFY17 which is 166% higher than the profit at PKR 1.64Bn (EPS: PKR 19.78) in 6MFY16. The News. Jan-17 “If you’re in the luckiest one per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.” 1,442 Pakistan-Russia-China: Iran hints at joining tri-nation alliance Alaeddin Boroujerdi, the head of Iran Parliament’s committee on national security and foreign policy, has said that Pakistan, Russia, China and Iran should cooperate with each other for regional peace and stability. The world, particularly Asia, has been undergoing a great transformation in recent years with the emergence of new alliances. Last month, Pakistan, Russia and China’s unprecedented trilateral meeting in Moscow on Afghanistan made headlines. Now, Iran has expressed its willingness to join hands with Pakistan. Tribune. Oct-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day 1,663 NPLs of housing finance down 12% in Jul.-Sept.’16 Non-Performing Loans (NPLs) of housing finance shrank by 12% during 3MFY17. The total number of borrowers classified as NPLs also declined to 35,105, out of total 65,830 borrowers. According to SBP, NPLs of housing finance portfolio decreased to PKR 11.28Bn as on Sept. 30, 2016 compared to PKR 12.75Bn on Jun. 30, 2016, depicting a decline of 11.54% or PKR 1.47Bn. During the period under review, NPLs of House Building Finance Company Limited (HBFCL) remained unchanged at PKR 4.1Bn over the quarter. BR. Jul-16 GBP Transactions of PSM, OGDCL deferred The much-awaited decision on the fate of PSM has been deferred indefinitely by the Cabinet Committee on Privatization which simultaneously put on hold the 5% divestment of the government residual shareholding in the OGDCL. The privatization board had decided that the entire land of PSM would remain with the government while its plant and machinery would be handed over to the new company for a maximum of 30 years. The board decided that no asset of the country’s largest industrial complex would be sold. Dawn. Rail-based mass transit projects: applicability of WHT on equipment import spelt out The withholding tax under the provision of section 148 of Income Tax Ordinance, 2001 shall not apply on equipment import for railbased mass transit projects in Lahore, Karachi, Peshawar and Quetta under CPEC. According to the SRO 44 (1)/2017 issued, pursuant to the approval of the Economic Co-ordination Committee of the Cabinet vide case No ECC-2/1/2017, dated the 6th January, 2017, the federal govt. has amended Second Schedule of the Income Tax Ordinance. BR. Jul-Dec 16 0 Values in (%) Source: KCCI Research, PBS Source:KCCI Research, Bank's Financials(2015) 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