Pakistan Daily Economy Update - 29 June

Transcription

1. Jun . 25 - 29, 2017 KCCI - eBulletin PSX to be listed as company on PSX The Pakistan Stock Exchange (PSX) would itself be listed today (29th June), after it sold 20% stake to high net-worth individual, institutional and retail investors. The opening price of the shares will be PKR 28 as determined through book building bidding process while the market lot of PSX will be 500 shares. Out of a total of 160.29 Mn shares, high net-worth individual and institutional investors bought 159.15 Mn shares, while retail investors bought only 1.14 Mn shares. Tribune-Sun. Pakistan still sustains tax losses worth PKR 3.2Tn A recent World Bank report has suggested that Pakistan is still sustaining tax losses worth PKR 3.2Tn every year due to weak administration and non-compliant taxpayers, but these losses are slightly lower than previous estimates, indicating the narrowing down of tax gap. Pakistan’s tax capacity is estimated at 22.3% of GDP, according to the report. At the current market price, this translates into PKR 7.2Tn. However, the country’s projected tax-to-GDP ratio is 12.5% or PKR 3.9Tn for FY17.This implies a tax gap of 9.8% of GDP or PKR 3.2Tn. Tribune-Thurs. FBR cell’s finding: Money laundering being carried out through ‘gift back’ scheme Anti-Money Laundering Cell of the Directorate General of Intelligence & Investigation has found that some prominent businessmen and politicians are allegedly involved in money laundering through 'gift back' arrangements and laundering their tax evaded money through gifts. The data for TY16 reveals that 2,785 individuals declared receipt of gifts in their wealth statements, aggregating over PKR 102Bn. In three of these cases, individuals declared gifts of over PKR 1Bn, with the highest amount of gift received being PKR 1.7Bn. BR - Sun. Introducing new laws to increase tax base: FBR chief Federal Board of Revenue (FBR) chairman Dr Mohammad Irshad on Wednesday said that the new tax laws will have no affect on the existing taxpayers rather through this way it would increase the network for a prosperous Pakistan. He further said that the DTO offices established in the light of the newly-introduced reforms will be autonomous and mini-RTO office having financial and administrative powers to recruit staff, will also be established. He also said that District Tax Officer will be in-charge of the district and will having representation at Tehsil level so that they could report about all affairs regarding the overall performance of tax collection. The News Thur. Dar asks FBR to meet tax collection target Finance Minister MR Dar has asked FBR to take all necessary measures to meet the tax collection target for FY17. Mr Dar said the measures introduced in the budget FY18 will help the general public. He said that the launch of a software-based system, which will detect short or no submission of withholding taxes with FBR field formations will help FBR to achieve its target for FY18. The new system, to be implemented from July 1, will also depict major fall in tax of individuals. Dawn - Thur. Govt looking for new FBR chief The government is looking for a new chairman for FBR. The incumbent, Dr Mohammad Irshad, is going to retire on June 30. Dr Irshad reached the pension age in April, but was given an extension until June 30 to finalize the budget for 2017-18. The FBR is currently facing the daunting task of achieving the revenue collection target of PKR 4Tn for FY18. Dawn - Sun. Modarba sector: SECP vests certain govt. powers in Finance Ministry to grant exemptions SECP has vested certain powers of the federal govt. to the concerned Minister-in-charge (Finance Minister) to grant exemptions or removal of difficulties of Modarba sector under the proposed Modaraba Bill 2017. Under the proposed Modaraba Bill 2017, federal govt. shall also have the powers to notify NAB or FIA or any other agency to take cognizance of misuse of word Modaraba, notify any court other than Session Court for criminal offences and make Rules for the purposes of this Act. Significant changes proposed in the Modaraba Bill, 2017 includes new definitions of financial statements, promoter, shariah advisor and Shariah Board in line with new company law. BR - Thur. Cotton growing areas shrink: govt. to revisit sugar policy Concerned with a sharp decline in cotton growing areas, the govt. has decided to revisit National Sugar Policy with regard to the deregulation of sugarcane price and commitment of an appropriate percentage of subsidy for research and development. During a discussion held under the Finance Ministry with regard to sugar prices, Commerce Ministry maintained that in Pakistan sugarcane price is generally believed to be more than its market price. BR - Thur. Banks surpass SME financing target \ According to the State Bank of Pakistan (SBP), SMEs financing targets for 2016 have been achieved; reaching PKR 401Bn against the Economic Indicators List of Indicators Date / Period Unit Value Change Daily 23-Jun 23-Jun 22-Jun 22-Jun 28-Jun 28-Jun 23-Jun 28-Jun 23-Jun 23-Jun PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 106.00 46,332 46,332 44.81 1,250.1 43,114 16.80 7,073 6.14% 9-Jun $ Bn 20.16 -0.02% 0.00% 1.89% NM** 3.15% 0.59% 0.00% 1.55% 0.00% 0.00% WoW -1.75% YoY -2.13% -3.13% 20.60% -42.12% -177.56% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-May 17 Remittances $ Bn 17.46 Jul-May 17 Exports* $ Bn 18.54 Jul-May 17 Imports* $ Bn 48.54 Jul-May 17 Trade Balance* $ Bn -30.00 Jul-May 17 Current Account $ Mn -8,929 % 4.18 Avg. CPI-FY17* Jul-May 17 May-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Jun-16 GBP, 28-Jun-17, 134.3 EUR, 28-Jun-17, 118.7 USD, 28-Jun-17, 104.5 Sep-16 USD GBP Three companies get power generation licences Pakistan has issued generation licences to three companies for bagasse-based electricity generation, as the energy-starved country envisages that at least 5% of the total national power generation capacity would be met through renewable energy resources by 2030. Indus Energy Limited has been granted licence for 31MW bagasse-based generation / co-generation in Punjab, while Mirpurkhas Energy Limited and Faran Energy Limited have been granted licence for bagasse-based generation of 26MW each in Sindh. The News Thurs. CPEC investments lift Pakistan’s hospitality industry Infrastructure investments for CPEC have given a helping hand to Pakistan’s hospitality industry as new hotels and guest houses are emerging in different parts of the country, said the CEO of hotel booking portal Jovago. The total number of visitors on the hotel booking portal jovago.net has crossed 3 Mn since the website’s launch in 2014. Tribune-Thurs. Brexit to blow 20bn euro hole in EU budget: commissioner Britain's withdrawal from the EU could leave the remaining 27 countries with a € 20Bn hole in their budget to fill. In this regard, EU Budget Commissioner Guenther Oettinger of Germany has called on the bloc to improve the efficiency of its spending in the wake of Brexit in Mar.’19. As part of Brexit negotiations beginning this month, the EU 27 are demanding that Britain pay an exit bill of up to € 100Bn to honor commitments made while it is a member. The Commissioner has said that the EU could, after Britain leaves, save money by eliminating all rebates enjoyed by a number of other countries. The EU's budget in 2017 has been at € 157.9Bn euros. BR Wed. Mar-17 Jun-17 Source: KCCI Research ; Oanda.com Quote of the Day "Listen more than you talk. Nobody learned anything by hearing themselves speak." actual targets of PKR 397.86Bn set by the SBP. Year on year basis, SME financing of banks and DFIs showed an increase of PKR 96Bn or around 32% when compared with SME financing portfolio of PKR 305Bn on Dec. 31, 2015. The public sector banks and Islamic banks achieved 117% and 112% of the targets respectively. The private sector banks achieved 96 % and DFIs achieved 73% target. BR - Thur. Hyderabad-Sukkur Motorway: NHA to issue LoI to Chinese Company The executive board of National Highway Authority has approved the procurement process for Hyderabad-Sukkur Motorway and agreed to issue Letter of Intent (LoI) to China State Construction Engineering Corporation. The project will be completed in three years with an estimated cost of PKR 175Bn on build-operate-transfer (BOT) basis. The NHA has further advised the company to submit a project concept note to CDWP and take them on board for arranging viability gap funding by the govt. of Pakistan in the form of buyer's credit loan. BR - Sun. Dec-16 EUR Richard Branson Chart of the Day 900 800 Countries With Highest Labor Force (Mn) 805.9 700 600 500 513.7 400 300 200 100 158.6 123.7 110.4 83.59 77.41 65.93 65.1 58.8 0 Source: KCCI Research, Source: KCCI Research, CIA Factbook 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