Pakistan Daily Economy Update - 29 August

Transcription

1. Aug . 29, 2017 KCCI - eBulletin PM rules out rupee devaluation, but will cut 'unnecessary' imports Prime Minister Shahid Khaqan Abbasi has scotched speculation of devaluation of the rupee, saying his government is instead looking to curb unnecessary imports through tariffs and help boost local production. Devaluation is an option theoretically and even though it should incentivize exports but in reality it does not, he said. Further, the govt. won't seek another IMF bailout package and is poised to introduce "radical" tax reforms. The nation's reserves have plummeted by a quarter to $ 14.3Bn since reaching a peak in Oct’16, while the rupee has remained stable. Nation. Fetch more revenue, PM tells FBR PM Abbasi has directed FBR to adopt all legal ways and means available under the law to ensure collection of taxes and filing of returns by all those earning taxable income but not paying their due share to the national exchequer. PM gave these directions to FBR Chairman Tariq Pasha and his team of tax managers at a briefing on the broadening of tax base. BR. Govt to maintain petroleum products prices The government has decided to maintain the rates of petroleum products in the forthcoming month of Sep’17. As per its mandate, OGRA would definitely send its summary but govt. would keep the rates unchanged even though petroleum prices have decreased in international market. Nation. 20% of Pakistanis live in 10 cities, census reveals According to provisional census figures released by PBS, the population in the country’s 10 largest cities has grown by 71% over the past 19 years, and currently stands at 41Mn, as compared to 24Mn who lived there in 1998. The population of these cities accounts for 20% of the country’s population. With 14.9Mn people, Karachi retains the title of the most populated city, registering an increase of over 57% from the 9.4Mn people that lived there in 1998. Dawn. SBP gears up efforts to introduce flexible inflation targets SBP has said that it aims to introduce a flexible inflation targeting (FIT) framework to reduce inflation to the low levels and balance price stability with economic growth. A comprehensive, multipronged research study has been initiated on the steps required to adopt flexible inflation targeting by 2020. The News. FBR asked to extend return filing date FBR has been urged to extend the 31st Aug’17 deadline for filing of tax returns for the year 2017. Karachi Tax Bar Association (KBA) President has said that return of income tax and statement of final taxation was notified on 17th Aug’17 and the same was uploaded on the Integrated Risk Information System (IRIS) for the purpose of e-filing on 21st Aug17. He further said that return of income tax and statement of final taxation for those taxpayers who are not required to e-file also has not been prescribed nor notified. Dawn. HBL to close New York branch as regulator speaks of $ 630Mn fine Shares of HBL hit their lower lock as news of a possible fine of up to $ 630Mn broke. The bank informed its shareholders about the development through a letter to PSX. It also announced the closure of its New York branch after receiving notice from the New York Department of Financial Services (DFS) for non-compliance with certain regulation. HBL was the target of an enforcement action by its main US supervisor and regulator, the DFS, back in 2015. Dawn. SBP not expecting any risks to HBL or banking industry SBP is not expecting imminent risks to HBL operations and banking industry of Pakistan. While, reacting to the New York State Department of Financial Services'' notice of a penalty to HBL’s New York Branch, SBP has said that it is cognizant of these developments and is closely monitoring the situation. Dawn. Electrification schemes: Parliamentarians will now get less funds PM Abbasi has decided to slash funds for development of electrification schemes to parliamentarians from PKR 0.5Mn to PKR 0.1Mn under the two-year special development programme titled "Wazeer-e-Azam Qaumi Taraqiati Program, 2016-18 for achievement of Global Sustainable Development Goals". BR. Chinese pioneers sensing opportunity in Pakistan Businessmen from Chongqing in southwest China are searching online forums for fellow entrepreneurs willing to join him on a scouting mission to Pakistan. Numbering in the thousands, this second wave of Chinese arrivals are following in the wake of workers on CPEC \ projects. Some are opening restaurants and language schools, while others are working out what products they could sell to a market of 208 Mn Pakistani people, or what goods they could make cheaply in Pakistan to sell around the world. A lot of industries are already saturated in China and businessmen are exploring the potential for setting up factories or importing Chinese goods. About 71,000 Chinese nationals reportedly visited Pakistan in 2016 while 27,596 visa extensions were granted to Chinese that year, suggesting more are staying in the country for longer. Tribune. BankIslami ‘unduly favoured’ in KASB deal: AGP The central bank unduly favoured BankIslami in the KASB Bank merger deal at the cost of public funds, said a report of the Auditor General of Pakistan to the parliament, which also affirms the findings of an earlier inquiry of an anti-corruption watchdog. The issue of the KASB merger into BankIslami has now landed in parliament after two years of the deal, allowing legislators to look into the matter that has so far remained off their limits. The report also points out that the central bank sustained PKR 435 Mn losses due to grant of a PKR 15Bn concessionary loan to BankIslami while a loss of PKR 3Bn loss has been sustained by giving PKR 5Bn loan at exceptionally low rate of 0.01% per annum for ten years. The AGP has also noted that the process of selection of bank for giving loan was also not transparent. Tribune. ‘25% of hides and skins are wasted every year’ A lack of awareness, hot weather and power outages damage around 25% of hides and skins of sacrificial animals every year on the occasion of Eidul Azha, inflicting an estimated loss of about PKR 1.5Bn on the tanneries and dealers. As per experts, the country might suffer an additional loss of over $ 400 Mn if an extensive awareness drive is not launched for the preservation of hides and skins. Pakistan is one of the biggest markets of raw hides and skins in Asia and about 30-40% of the total produce is generated only on the occasion of Eid. Tribune. Transfer of Saindak project to be approved today The Federal Cabinet, ECC of the Cabinet and ECNEC which are scheduled to meet on 29th Aug’17 (Today) are likely to approve transfer of Saindak Copper Gold Project to Government of Balochistan, revision in margins of OMCs and financing of 1.2Bn BCFD capacity RLNG-III pipeline project (Karachi to Lahore) respectively. BR. Sapphire to set up 150MW wind power project Sapphire Wind Power Company will set up the country’s biggest wind power project with a production capacity of 150MW in Sindh. General Electric (GE) signed an agreement with Tricon Boston Consulting Private Limited, a special purpose vehicle set up by Sapphire Textile Mills Limited, for the provision and installation of wind turbines for the project to be set up in the Gharo- Jhimpir wind corridor around 80Km from Karachi. The News. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M 28-Aug 28-Aug 28-Aug 28-Aug 28-Aug 28-Aug 28-Aug 28-Aug 28-Aug 28-Aug PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.40 106.45 41,974 -6.20 46.78 1,310.3 43,842 17.44 6,377 6.15% Forex Reserves 18-Aug $ Bn 20.05 0.01% 0.00 -1.57% NM** -2.13% 1.48% 0.29% 2.43% -0.82% 0.00% WoW 0.53% YoY 16.04% 10.58% 36.74% -55.46% -210.12% 162.81% 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 "Success or failure in business is caused more by the mental attitude even than by mental capacities." Walter Scott Chart of the Day 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - PAKISTAN'S TOP TEN CITY's POPULATION (CENSUS 2017) 14.91 11.12 3.20 2.09 2.02 1.97 1.87 1.73 1.01 1.00 Source: KCCI Research, PBS Population 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