Pakistan Daily Economy Update - 3 June

Transcription

1. Jun . 3, 2017 KCCI - eBulletin Power generation reaches record 18,562MWs level Water and Power Ministry has claimed that the country's electricity generation reached a record 18,562MW on Jun. 1, 2017, breaking its own record earlier in the day of 17,840MW. Last year, the highest generation recorded was 17,340MW on Jun. 19, 2016 during Ramadan. The public sector Generation companies (GENCOs) hit record high on Jun. 1 at 3,223MW with Guddu power plant reaching 1,300MW level after refurbishment and installation of new compressors. The generation is expected to further increase as there is room for 500 to 800MW additional hydel power generation, which with a boost in indent by IRSA, will be achieved. BR. Punjab unveils PKR 1.97Tn budget Punjab govt. has presented its fifth budget with 17% larger outlay of PKR 1.97Tn against last year’s outlay of PKR 1.68Tn. The allocation for women development, water supply and sanitation is 32% higher; PKR 345Bn has been allocated for education which is 33% higher, health sector has been allocated a total of PKR 263Bn making it 15.4% of the total outlay. The govt. has increased allocation for Annual Development Program by 15% to PKR 635Bn while a drastic reduction in GST on construction services from 16% to just 5% has also been made. Total current expenditure for FY18 is estimated at PKR 1.02Tn, including PKR 258Bn for salaries, PKR 173Bn for pensions, PKR 361Bn for local govt. and PKR 228Bn for service delivery. The Nation. Punjab slaps sales tax on internet services The Punjab govt. is aiming to increase its revenue receipts to PKR 348.31Bn in FY18 by adding another yet service to the tax net. Now, internet services have come under the tax net, taking the total no. of services to 62 on which it will collect general sales tax. However, internet services under student packages, whose cost does not exceed PKR 1,500, have been exempted from the tax. Tribune. Banks, FIs to provide non-residents’ information: FBR Chairman FBR has said that banks and financial institutions (in foreign countries) have agreed to provide information regarding non-resident persons to the board for automatic information exchange under bilateral agreement or multilateral convention as it is not covered under the section 165B of the Income Tax Ordinance 2001. The Chairman further said that all information received under this section shall be used only for tax and related purposes and will be kept confidential. BR. Senate body finalizes budget proposals Senate’s Planning Standing Committee has finalized its recommendations for FY18 budget, which will be forwarded to the Senate’s Finance Standing Committee. The committee’s recommendations include removal of disparity in pension payable to old and new pensioners, announcement of subsidized, long-term, fixed markup loans to set up new industrial units, and no reduction or re-allocation in the approved development budget without parliament’s approval. Dawn. FBR conditions tax credit for trusts with restricted expenses The FBR, through a proposal in budget FY18, has bound nonprofit organization (NPOs) to keep their administrative expenditures below 15% of total income if they want to avail 100 %tax credit. Finance Minister Ishaq Dar, in his budget speech, said NPOs have misused the incentive of 100% tax credit, while their expenses were very high, including expenditure on buying of luxury goods and vehicles. The Pakistan Centre for Development Communication has recorded more than 700 nonprofit organizations operating in the country in its directory published in 2012. The News. SECP registers record 926 new firms in May The SECP registered the highest number of 926 new companies in May’17, witnessing an increase of 44% as compared to May’16. During 11MFY17, the SECP registered 7,688 new companies, representing a growth of 35% over last year. The massive increase in the number of new companies is the direct result of various reforms introduced by the SECP, including reduction in fee, introduction of swift incorporation process and elimination of purchase of third-party digital signatures. Around 86% companies were registered as private limited companies, while around 11 %companies were registered as single-member companies. The News. Global firms compete to set up converter station in Pakistan The four countries that are part of the Central Asia-South Asia (Casa) 1,000MW power supply project have opened for evaluation the technical bids received from international companies interested in providing and setting up converter stations for electricity transmission through an energy corridor. Officials of Pakistan, Afghanistan, Tajikistan and Kyrgyzstan met in Dubai recently and opened technical bids filed by two Chinese companies, US-based General Electric, French firm Alstom, Siemens of Germany and Swedish company ABB. One converter station each will be set up in Tajikistan and Pakistan. Tribune. Pakistan to open up mineral-rich Balochistan to China ‘Silk Road’ firms Resource-rich Balochistan wants Chinese companies to kick-start a boom in its mining industry by including the sector into Beijing´s "Belt and Road" initiative. Saleh Muhammad Baloch, the province’s top mining official, said Chinese companies chosen by Beijing are welcome to team up with local firms to mine marble, chromite, limestone, coal and other minerals, and set up steel mills and other plants. The projects are to be set up close to the source of raw materials and near the new CPEC roads. A profit-sharing formula will also be negotiated. The News. Sales of oil firms grow 12% to 23.8Mn tons Oil Marketing Companies (OMCs) have posted a 12% increase in sales during 11MFY17 to 23.8Mn tons. Sales remained higher than last three years’ average growth of 7% due to low oil prices. Furnace oil sales stood 10% higher at 8.75Mn tons followed by 12% jump in diesel sales to 7.89Mn tons while petrol sales went up by 17% to 6.13Mn tons. Year-on-year, diesel sales in May.’17 were down 3% whereas petrol and furnace oil (FO) sales were up 9% and 1%, respectively. Dawn. SBP injects PKR 1.3Tn into system SBP has injected PKR 1.3Tn into banking system by conducting Open Market Operation at a rate ranging from 5.75% to 5.87% for 7-days (injection). In response to the quotations, the SBP accepted 33 bids amounting to PKR 1.325Tn at 5.76% rate of return for 7 days. The total amount offered at 5.76% is PKR 603Mn out of which SBP PKR 531Mn on pro-rata basis. Presently, there is massive withdrawal of cash from banks for Eid and Ramadan shopping that created some liquidity shortage in the domestic market. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 2-Jun 2-Jun 2-Jun 2-Jun 1-Jun 1-Jun 2-Jun 1-Jun 2-Jun 2-Jun PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.86 106.00 48,555 -23.44 48.00 1,266.3 42,814 17.25 7,288 6.16% 26-May $ Bn 21.77 0.00% 0.00% -0.46% NM** -1.54% -0.29% -0.10% -0.40% 0.00% 0.00% WoW 3.63% YoY -2.79% -2.29% 19.88% -40.12% -204.75% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (JY'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-Apr 17 Remittances $ Bn 15.60 Jul-Apr 17 Exports* $ Bn 16.92 Jul-Apr 17 Imports* $ Bn 43.47 Jul-Apr 17 Trade Balance* $ Bn -26.56 Jul-Apr 17 Current Account $ Mn -7,247 % 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, 2-Jun-17, 135.1 EUR, 2-Jun-17, 117.9 USD, 2-Jun-17, 104.9 Sep-16 USD GBP Dec-16 Mar-17 Jun-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "A budget is just a method of worrying before you spend money, as well as afterward." Anonymous Chart of the Day BREAK-UP OF TAX & NON-TAX REVENUES (FY18) Civil Admin & Other Functions 8% Misc. Receipts 7% Other taxes 6% Property & Enterprise 4% Direct Taxes 30% Indirect Taxes Source: KCCI Research, MoF 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