Pakistan Daily Economy Update - 29 January

Transcription

1. Jan . 28-29, 2018 KCCI - eBulletin Rupee has weakened against all major currencies Pakistan’s rupee has depreciated by a much larger scale than what has been widely believed because of continued weakening of the US dollar against a basket of major currencies in the global currency war, but its impact is not being reflected in the country. The rupee has depreciated 10%, due to weakening of the US dollar against the pound and euro since 10th Dec’17), said SBP Governor Tariq Bajwa while announcing the monetary policy. On the contrary, the rupee’s depreciation, when seen only against the US dollar, stands at 5%. Tribune-Sun. First Gwadar Expo opens today PM Abbasi will inaugurate the two-day, first Gwadar Expo in Gwadar on Jan. 29, 2018 (today) which will be attended by foreign dignitaries, ambassadors and people from business community across the world. Being jointly organized by Gwadar Development Authority and China Overseas Ports Holding Company, around 5,000 companies from various countries have applied to set up 150 booths to showcase their products. Gwadar Port is now connected to Karachi by marine high coast way while connecting Punjab and Sindh Province through M-8 highway. BR – Mon. Pakistan, China to ink accords on Gwadar Port Pakistan and China are set to sign some important agreements to provide strategic support to Gwadar seaport on the occasion of Gwadar expo, 2018. The agreements are related to poverty alleviation, development of industrial park and declaring Gwadar and Henan as sister cities. BR – Sun. Two-way investments under PTA to be raised During the two-day state visit of Indonesian President Joko Widodo, Pakistan and Indonesia have agreed to increase two-way investments to diversify and expand economic ties by taking advantage of the Preferential Trade Agreement (PTA). The two sides agreed to maintain close high-level exchanges, which would provide guidance to the sustainable development of bilateral relationship. The two sides agreed to work closely on major regional and global issues, and continue to work with mutual coordination and cooperation in important regional forums including Asia-Europe Meeting (ASEM), and the ASEAN Regional Forum. BR – Sun. New govt to finalise next NFC award The federal government and provinces have agreed to defer the suspended allocations on tax resource division between them under the new NFC until after next election, but decided to continue work to update technical or sectoral studies in the meanwhile the decision was made during a meeting of the federal and provincial finance secretaries. Dawn-Sun. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 26-Jan 110.45 112.25 0.00% 0.09% Crude (MA'18) 26-Jan 26-Jan 26-Jan 26-Jan PKR PKR Pts. $ Mn $/bbl 44,551 5.22 66.15 -0.59% NM** 0.24% Gold (FE'18) Gold (10g) Local 26-Jan 26-Jan $/oz PKR 1,356.4 49,114 -0.10% -0.35% Silver (FE'18) Cotton(KHI)-40 kg 26-Jan 26-Jan $/oz PKR 17.38 8,038 -0.91% 0.00% Kibor-6M 26-Jan % 6.20 $ Bn 19.64 -0.01% WoW -0.66% Remittances 19-Jan FY18 Jul-Dec 17 $ Bn 9.74 YoY 2.51% Exports* Imports* Jul-Dec 17 Jul-Dec 17 $ Bn $ Bn 11.01 28.97 11.27% 19.11% Jul-Dec 17 Trade Balance* $ Bn -17.96 Jul-Dec 17 Current Account $ Mn -7,413 Foreign Direct Inv. $ Bn 1.38 Jul-Dec 17 Jul-Nov 17 LSM Growth* % 7.19 % 3.75 Jul-Dec 17 Avg. CPI Discount Rate % 6.00 Jan-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -24.48% -59.08% -2.81% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Major Currencies 165 Some regulatory duties may soon go: Miftah The government is mulling withdrawal of RD on many items in the upcoming budget, said Adviser to PM on Revenue, Dr Miftah Ismail in a panel discussion, he said that the govt. would clear all sales tax refunds and customs rebates of exporters by 15th Feb’18 and from next budget the government would formulate policy to avoid generation of refunds. Dawn-Sun. 155 Govt likely to end immunity on foreign currency accounts The government has planned to withdraw an immunity, and bring regulations requiring scrutiny of overseas money transfer in individuals’ foreign currency accounts, Advisor to PM, Miftah Ismail said. There are some misconceptions about the proposed amnesty on declaration of foreign assets. The amnesty will (actually) block all those amnesties that have been granted since 1990s on foreign exchange inflows. The News-Sun. 125 PM seeks WB help in resolving water dispute with India In a meeting with the World Bank delegation, PM Abbasi discussed the ongoing development projects being undertaken in partnership with the Bank and sought help in resolving the disputes with India especially with regard to Kishanganga and Rattle projects. The PM emphasized that Pakistan expects that it would help resolve the water dispute with India by effectively playing the role mandated to it under the Indus Water Treaty. The Nation – Sun. Pak-Italy JEC session today \ The third session of Pakistan-Italy Joint Economic Commission (JEC) begins in Rome, Italy on Jan. 29, 2018 (today). State Minister for Finance Rana Muhammad Afzal is leading the Pakistani delegation and would co-chair the session along with Italy's Deputy Minister for Economic Development Ivan Scalfarotto. They are expected to sign three Letters of Intent on cooperation in the areas of textile, footwear and gemstones industry. An MoU between TDAP and ICE-Italian Trade Agency is also to be signed. A Memorandum of Intent between Pakistan Stone Development Company and its Italian counterpart Confidustria Mardomacchine will also be inked on this occasion. The Nation – Mon. As five new airlines plan to enter Pakistan, PIA stands to lose Five new airlines are expected to venture into Pakistan’s aviation industry in the next one year in a latest sign of intensifying competition in the backdrop of an open skies policy, which may bring down passenger fares, but will pose fresh challenges to the financially struggling PIA. Askari Air, Air Siyal, Go Green, Liberty Air and Afeef Zara Airways are going to enter Pakistan’s air space. Most of the upcoming carriers will target low-profit, far-off destinations like Gwadar, Turbat, Panjgur, Khuzdar, Dalbandin, Zhob, Rawalakot, Skardu, Chitral, Gilgit, Bannu, Parachinar and Muzaffarabad. Tribune-Sun. PKR 344.35Bn released under PSDP The govt. has released PKR 344.35Bn (34.4%) for different development projects under PSDP FY18 against budgeted allocation of PKR 1Tn. An amount of PKR 93Bn (29.7% of federal ministries) has been released for various federal ministries against budgeted PKR 321.3Bn, PKR 15.25Bn for Pakistan Railways Division against budgeted allocation of PKR 42.9Bn, PKR 116.4Bn including PKR 45.6Bn for infrastructure projects of NHA against total budgeted allocation of PKR 325.7Bn. BR – Sun. Plan to boost pulses production The federal government seems to be waking up to rising imports of pulses, which surged by more than 60% to around PKR100Bn in FY17, in this respect, Ministry of National Food Security and Research is considering to approve a PKR 3Bn plan to promote research and boost productivity of four major pulses; gram (chickpea), mash, moong and masoor. The plan — involving some 18 local and international institutions — is aimed at genetically improving seeds, mechanizing production and increasing seed production. Dawn-Mon. Debt servicing balloons by 11% in 5MFY18 The government paid PKR 598Bn in domestic debt servicing in 5MFY17, registering a year-on-year growth of 11%, according to the Monetary Policy Information Compendium released by SBP. Furthermore, debt servicing is recorded at about 60% of development expenditures and 30.4% of tax revenues .The fiscal deficit for 1HFY18 is expected to be around last year’s level of 2.5%, indicating the gap would be within the target. Dawn-Sun. GBP, 28-Jan-18, 156.7 145 EUR, 28-Jan-18, 137.5 135 115 105 95 Jan-17 USD, 28-Jan-18, 110.6 USD Apr-17 GBP EUR Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion." Jack Welch Chart of the Day Pulses Imports by Pakistan 900 831 800 700 600 503 500 400 330 300 277 322 229 200 100 0 FY13 FY14 FY15 FY16 Figures in Mn $ FY17 1HFY18 Source: KCCI Research, SBP 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