Pakistan Daily Economy Update - 28 November

Transcription

1. Nov . 28, 2017 KCCI - eBulletin How the exports fell to create foreign exchange crisis In a report published by Karachi Chamber of Commerce and Industry (KCCI), it has stressed that there is a need to shift from monopoly to competition in the energy sector. The report says that when international crude oil (OPEC basket) prices nose-dived by 71.35%, the decline in electricity tariffs was only by 28% from the first quarter of 2013 till the end of 2015. As the cost of production did not come down in line with the global trend, the local industrial production became uncompetitive in the world market which led to the decline in exports of Pakistan. KCCI in its research report was especially critical of KE’s performance. It compared KE’s performance with that of UAE since KE is being managed by UAE based Abraaj Group. Pakistan Today. Violation of voltage & frequency limits: PKR 5Mn fine for failure to follow rules Nepra has imposed a fine of PKR 5Mn on NTDCL for non-compliance of Performance Standards Transmission Rules particularly with respect to voltage and frequency fluctuations. The NTDC, being a transmission licensee, is required to submit Annual Performance Report to Nepra as per the Performance Standards and terms and conditions of its licence. Based on the findings of the comprehensive analysis report prepared by Nepra, the Authority decided to initiate legal proceedings against NTDC. Recently, the NTDC's system again had failed due to heavy smog in Punjab which resulted in collapse of the entire power sector inter-connection including power plants. BR. Pakistan to get 9% of Gwadar income, 15% of FEZ: China China has said that Pakistan would be getting 9% share out of total income of Gwadar Port and 15% of Free Economic Zone exactly on the pattern of agreement signed with Port of Singapore Authority (PSA) which was later on struck down by Islamabad authorities. China has not agreed to include construction of Diamer-Basha dam as part of CPEC at the moment not because of territorial dispute with India but its civil work was more expansive than biggest Three Gorges Dam in China having five time more capacity of generating electricity than Basha dam of 4500 MW. The News. ‘Uninformed views’ about Gwadar port pact refuted Gwadar Port Authority (GPA) chairman has refuted generalizations and uninformed views expressed in the media about the port concession agreement. In a statement, he said such remarks may only damage the pace of work initiated by the China Oversees Ports Holding (COPHC) and GPA inside the port area as well as CPEC projects in the country. He clarified that the port and its free zone could not be developed by the PSAI as per the agreement on Build-Operate-Transfer (BOT) basis till 2013. Therefore, he said, the terms and conditions were defined long before the CPEC existed. Dawn. Proposed FTA skewed in favor of Turkey Senate’s Commerce Standing Committee has termed the proposed Free Trade Agreement (FTA) with Turkey as disastrous for Pakistan, observing that national interests are not protected under the pact. The Commerce Ministry has said that Consul General in Istanbul Dr Yousaf Junaid has communicated to the govt. that unless the issue pertaining to FTA with Turkey is taken at the highest level, the matters are not going to resolve. The senior joint secretary commerce admitted that Turkey's lobby, especially the textile lobby, is very strong. BR. Japanese firms keen to invest in infrastructure Kimihide Ando, vice chairman of Pakistan-Japan Business Forum has said that Pakistan’s investment climate is improving and Japanese companies are keen to invest in infrastructure development and energy and water treatment sectors in Pakistan. The News. Over three years’ holding: no advance tax on property deals: FBR FBR has said that no advance income tax will be collected on immovable property transactions under Section 236C of the Income Tax Ordinance if the property is held for a period exceeding three years. National Assembly (NA) has been empowered to impose taxes on income excluding agriculture income. Accordingly, the NA has levied taxes on different \ streams of income arising from real estate sector by various provisions of the Income Tax Ordinance, 2001. Income earned as gain from disposal of the property is subject to tax under section 37 of the Income Tax Ordinance, 2001 under the head income from capital gain. Also, there is no tax on income from capital gain under the aforesaid section, if the holding period of immovable property is more than three years. BR. Date / Period Unit Value Change Daily 27-Nov 27-Nov 27-Nov 27-Nov 27-Nov 27-Nov 27-Nov 27-Nov 27-Nov 27-Nov PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.52 107.50 40,032 -7.42 57.95 1,294.1 46,800 17.02 7,073 6.18% 0.00% -0.23% -0.54% NM** -1.56% 0.50% 0.18% 0.09% 1.54% -0.01% WoW 0.08% YoY 2.27% 10.04% 22.55% -31.24% -121.91% 74.44% Crude (JA'18) Gold (DE'17) Gold (10g) Local Silver (DE'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves $ Bn 19.71 17-Nov FY18 Jul-Oct 17 Remittances $ Bn 6.44 Jul-Oct 17 Exports* $ Bn 7.06 Jul-Oct 17 Imports* $ Bn 19.19 Jul-Oct 17 Trade Balance* $ Bn -12.13 Jul-Oct 17 Current Account $ Mn -5,013 Foreign Direct Inv. $ Bn 0.94 Jul-Oct 17 Jul-Sep 17 LSM Growth* % 8.36 % 3.50 Jul-Oct 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 27-Nov-17, 140.1 145 135 125 EUR, 27-Nov-17, 125.2 115 105 95 Nov-16 USD Feb-17 GBP EUR May-17 Aug-17 USD, 27-Nov-17, 105.1 Source: KCCI Research ; Oanda.com Quote of the Day "Success is simply a matter of luck. Ask any failure." Earl Wilson Chart of the Day Service exports World-wide (BoP, Tn US$) 4.91 4.93 4.88 4.47 3.64 3.92 3.63 2.69 2.00 1.69 1.81 2.0 2.43 3.0 3.04 4.0 4.55 5.0 5.19 6.0 1.69 Punjab textile industry will not get gas from Dec. 1, 2017 SNGPL has reportedly expressed its inability to supply 150 MMCFD system gas to Punjab-based textile industry for at least two and half months starting from Dec. 1, 2017. Sharply reacting to the SNGPL decision, textile millers have stated that this decision will further add to the exorbitant cost of doing business in Punjab by forcing its export industry to more expensive RLNG. The price of RLNG for Nov.’17 has already reached over $ 9.5557/ MMBTU (equivalent PKR 1,006.45 per MMTBU). System gas is available in other provinces at PKR 600 per MMTBU for 365 days a year. The textile millers have further said that SNGPL’s decision, if implemented, would unfortunately reverse the export growth of approximately 8% achieved in 4MFY18. BR. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 4.08 UAE receives first shipment of meat from Pakistan First shipment of Pakistani fresh meat has successfully reached UAE. The shipment has been sent as per import agreement signed between Pakistan’s Foodex and UAE-based Company Al-Tayeb International General Trading. Earlier, UAE and Pakistani businessmen had signed deals worth nearly $ 200Mn during the Expo Pakistan 2017 held in Karachi on Nov. 9-12, 2017. Commenting on meat imports to UAE, Pakistan’s Commercial Secretary at Abu Dhabi has said that a majority of the fresh meat shipments are airlifted from Pakistan due to delays in sea shipments which raises the cost rendering Pakistani products less competitive in terms of price. The Nation. Economic Indicators 1.0 Power generation surges 16.2% in October Source: KCCI Research, WB The country’s power generation witnessed an increase of 16.2% to 9,866GWh during Oct’17 as compared to 8,494GWh Disclaimer last year. Contributors towards generation remained hydel, furnace oil (FO), gas and re-gasified liquid natural gas (RLNG) with 24.7%, 25.8%, 17.1% and 15.1%, respectively. Although, generation based on hydel, FO and gas displayed a 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 negative growth; coal, RLNG and nuclear-based generation displayed a massive surge. The News. 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