Pakistan Daily Economy Update - 29 August

Transcription

1. August 29 , 2022 KCCI - eBulletin New SBP governor Jameel Ahmed assumes office Jameel Ahmad has assumed the charge of Governor SBP, after his appointment by the President of Pakistan for a period of five years in pursuance of Section 11 A (1) of SBP Act 1956, on 26th Aug’22. BR-Sun. Unit Value Change Daily 26-Aug PKR PKR 220.66 229.00 0.57% 1.55% KSE-100 index FIPI 26-Aug 26-Aug Pts. $ Mn 42,592 0.84 -1.02% NM** Crude Oil 28-Aug $/bbl 92.94 -0.13% Gold 28-Aug $/oz 1,746.2 -0.21% Gold (10g) Local 26-Aug PKR 123,460 1.20% Irreparable damage to cotton crop Due to global warming-induced rainfalls and flooding, the price of quality cotton is PKR 24,000/maund and the price of high-quality Phutti cotton is PKR 11,000-13,000/40kg and the spot rate of Karachi Cotton Association (KCA) is PKR 23,000/maund. Due to the high price of cotton and significant disparity of by-products, many small mills have been forced into partial operability or closure. Tribune-Sun. Silver 28-Aug $/oz 18.58 -0.87% Cotton(KHI)-40 kg 27-Aug PKR 24,649 9.55% Kibor-6M 26-Aug % 16.00 0.00% Flood inflicts $ 10Bn loss on Pakistan economy: Miftah Ismail According the Finance Minister, the flash floods have inflicted a loss of at least $ 10Bn on different sectors of the country’s struggling economy, which might escalate after conducting surveys on the ground. The News-Mon. Forex Reserves 12-Aug $ Bn 13.61 WoW 0.38% Remittances Jul-22 $ Bn 2.52 -6.77% Exports* Jul-22 $ Bn 2.22 -4.76% Imports* Jul-22 $ Bn 4.86 -10.48% Trade Balance* Jul-22 $ Bn -2.64 14.77% Jul-22 Jul-Jun 22 $ Bn $ Bn -0.85 1.87 -10.1% 1.13% EUR, 28-Aug-22, 226.3 USD, 28-Aug-22, 229.0 Islamabad assures LNG bidders of timely payments Pakistan has assured international LNG suppliers of timely payments for their spot cargoes over the next six years through standby letters of credit (SBLCs) to top-ranking international banks. The state-run Pakistan LNG Limited (PLL) has given the assurance to international bidders, seeking 72 cargoes over the next six years (2023-28) at the rate of one cargo/month. Dawn-Mon. NHA compensation case: President overrules verdict of federal ombudsman President Dr Arif Alvi has overruled a verdict by Wafaqi Mohtasib in a two and a half decades old case, and directed NHA to award compensation to the aggrieved party in a land dispute facing delay for the last so many years. BR-Mon. PSO scraps HSFO delivery tenders PSO has scrapped tenders for delivery of High Sulphur Furnace Oil (HSFO) cargoes for 1-15th Sept’22 due to low up-liftment by the power plants continues since Jun-Jul’22 against the demand placed by Power Division. BR-Mon. FKPCL wants uninterrupted, firm supply of gas Describing the Tripartite Agreement (TPA), an interim arrangement for the supply of RLNG, as a breach of directives of federal govt., FKPCL has sought an uninterrupted and firm supply of gas under the Implementation Agreement (IA). BR-Sun. Time to revise Naya Pakistan Certificate rates Increasing the rupee NPC profit rates to 14% and dollar NPC rates to 9% can easily fetch Pakistan another source of $ 2-3Bn/year. An 8% upward revision in PKR-denominated debts and 2.75% in dollar-denominated debts is yet to be reflected in the profit rates of NPCs. Tribune-Mon. Feb-22 EUR May-22 Source: KCCI Research Quote of the Day "The road to success and the road to failure are almost exactly the same.” Colin R. Davis Liquid Foreign Exchange Reserves ($ Bn) 6.62 FY18 15.54 9.82 9.77 16.38 Germany extends aid package Germany economy ministry said it was extending the deadline of € 5Bn ($ 4.98Bn) aid package for energy-intensive companies and was refining details of the program intended to help firms cope with soaring power costs. Companies can apply until the end of Sept’22 for subsidies of up to € 50Mn for their increased natural gas and electricity cost, the ministry said. Tribune-Sun. Pakistan poised to evade short-term default: report The executive committee’s meeting of IMF is scheduled to be held on 29thAug’22, cash-strapped Pakistan is confident to evade a near-term default. Pakistan also made a request to the Fund’s Board to augment the Extended Fund Facility (EFF) from $ 6 to 7Bn and jack up the timeframe from Sept’22 to Jun’23. The News-Mon. Nov-21 GBP USD FY19 FY20 Net Reserves with SBP FY21 5.72 Food crisis feared in Sindh The deadly floods in Sindh have triggered fears of economic losses and food security issues in the coming days. The govt. has yet to assess the losses, but a representative of the farmers’ community told that “80% of the cotton crop” was ravaged, while “60-70% of rice, 80% onion, tomatoes and chilies, and 80% dates” were washed away. Tribune-Sun. GBP, 28-Aug-… 24.40 ADB to help govt. attract investment in infrastructure ADB will provide technical assistance to Pakistan on a grant basis to support an enabling environment for infrastructure financing and publicprivate partnership at the federal level. An ADB document revealed that additional grant financing will also be explored from Asia Pacific Project \ Preparation Facility (APPF) to support development for priority sectors as well as capacity building. Dawn-Sun. 305 295 285 275 265 255 245 235 225 215 205 195 185 175 165 155 145 Aug-21 17.30 Automakers fear major dent in rural sales ‘due to floods’ After depressed sales in Jul’22, auto assemblers paint a gloomy demand scenario in the coming months due to flash floods. Overall two- and three-wheeler sales plunged to 96,162 units in Jul’22 versus 145,197 in Jul’21. Honda, Suzuki, and Yamaha sold 80,067, 3,512, and 1,261 units respectively in 1MFY23 compared to 100,002, 2,715, and 1,607 units a year ago. Dawn-Sun. Major Currencies 7.10 Website stealing SECP data blocked PTA has taken action on the complaint filed by the SECP against the “companieshouse.pk”, which had stolen companies’ data from the SECP’s website and gave free access to everybody. The website has been shut down and new precautionary measures have been placed to avert such instances in the future. BR-Sun. Jul-Jun 22 LSM Growth* % 11.70 % 24.93 Jul-22 Avg. CPI Discount Rate % 15.00 Jul-22 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year 18.89 Cos, AoPs and individuals: FTO warns FBR against ‘illegal’ collections in tribal areas FTO has warned FBR to refrain from illegal collections of income/withholding tax from individuals, Association of Persons (AoPs) and companies in tribal areas. BR-Sun. Current Account Foreign Direct Inv. 12.13 Optimal use of LNG capacity at terminal-II: Ogra policy opposed by SNGPL OGRA’s promotion of gas liberalization by engaging the private sector to avail additional LNG capacity at terminal-II is constantly opposed by SNGPL. Since the TPA Rules-2012 for gas code for private sector import were in suspension and revised TPA rules were not notified at that time, the matter was deferred till notification of revised third-party access rules. BR-Sun. YoY 6.75 Distribution begins in Sindh: PKR 38Bn allocated for flood relief efforts: PM PM Muhammad Shehbaz Sharif said that the federal govt. had allocated a grant of PKR 38Bn to support each flood-affected family with a disbursement of PKR 25,000. The PM also said he had already announced a grant of PKR 15Bn to Sindh under BISP, as it had complete data, ensuring prompt and justified distribution among the deserving families, he added. BR-Sun. 26-Aug 14.48 Gas pipeline project: Pakistan, Iran agree to resume talks Pakistan and Iran have agreed to resume negotiations for implementation of Iran-Pakistan (IP) Gas Pipeline Project, possibility of starting Electronic Financial Messaging System (SEPAM) and achieving barter trade target of $ 4Bn. BR-Mon. USD-Interbank USD-Open MKT 7.29 UK to provide £ 1.5Mn support In response to the flood disaster, the UK will provide up to £ 1.5Mn support for the relief efforts. The UN is carrying out a needs assessment, and a UN appeal is expected to be launched on 30th Aug’22. BR-Sun. Date / Period 7.20 Steep fall in profits outflow in July The profits and dividends on foreign investments in Pakistan fell sharply down to an insignificant level in 1MFY23, suggesting the poor economic performance. SBP’s latest data showed that the outflow of profits and dividends on foreign investments, mostly FDI, in Jul’22 was just $16.5Mn compared to $159.2Mn in Jul’21. The FDI in July fell by 43.3% to $ 58.9Mn compared to $ 103.8Mn in Jul’21. The repatriation of dollars was even higher than the FDI recorded in FY22. SBP data showed that the outflows totaled $ 1.651Bn while FDI was $1.47Bn showing a good output of the companies having foreign investments. The preconditions of IMF will ultimately slow down the economic growth from 6% to 3%. Dawn-Sun. List of Indicators FY22 Net Reserves with Banks Total Liquid FX Reserves Source: KCCI Research, SBP Note If any member is facing any issues pertaining to PakistanAfghanistan investment and trade policies or has project proposals is requested to share the information at secretary@kcci.com.pk for forwarding to the Board of Investment.