Pakistan Daily Economy Update - 3 November

Transcription

1. Nov . 3, 2017 KCCI - eBulletin PM wants FBR to review possibility of acquiring ‘first right to buy’ PM Shahid Khaqan Abbasi has directed tax authorities to review the possibility of acquiring the ‘first right to buy’ a property for the government in a bid to discourage tax evasion and giving an amnesty scheme on offshore as well as domestic assets. The first right to buy will entitle the government to purchase any asset – residential or commercial – at a higher price than the one declared by the owner at the time of registration. The move, to be reviewed by tax authorities at the directive of the premier, is meant to control under-declaration of asset values at the time of registration. India is implementing a similar law in order to discourage tax evasion in the real estate sector. Tribune. Abbasi orders FBR to simplify tax return form PM Abbasi has directed FBR to simplify the tax return form to minimum possible size for the ease of citizens and tax filers. The remarks came from the premier during a meeting on tax reforms in the country. The government had promised at many forums to introduce a single page return form but it was never implemented. Dawn. ‘Govt taking steps for a business friendly Pakistan’ Talking to businessmen, Special Assistant to the PM on Revenue Haroon Akhtar said that all chambers and associations of the country should develop consensus on major issues of the private sector and raise a united voice, adding that it was the best approach to get the issues addressed. He said FBR’s role was to improve revenue collection in the country, but he had asked the tax collecting agency to avoid taking any measures that may cause harassment to the business community. He said that the business community should bring any coercive measures of FBR into his notice and assured that he would address them. Daily Times. Cabinet to extend super tax to banking companies for FY18 The federal Cabinet is to extend super tax to the banking companies for FY18 through an amendment to rule 7C of the Seventh Schedule of Income Tax Ordinance. It was imposed through the Finance Act, 2015 for the tax year 2015 on persons earning income of PKR 500Mn or more at the rate of 3% of their income. However, for banking companies, super tax was imposed irrespective of quantum of income tax at 4% of income tax. The super tax was extended for the years 2016 and 2017 through the Finance Acts 2016 and 2017, respectively for taxpayers other than banking companies. However, for banking companies it is to be extended by amending rule 7C of the Seventh Schedule. BR. Singaporean energy firm buys local OMC Puma Energy of Singapore has concluded an agreement with the Chishti Group to acquire 51% stake in Pakistan’s fuel retail chain Admore Gas. Puma Energy is a global midstream and downstream energy firm owned by Trafigura of Singapore and the Sonangol Group of Angola. The agreement was first announced on 25th Aug’17 while its closing took place on 31st Oct’17. The new company will be called Puma Energy Pakistan (Private) Ltd. The joint venture will have a retail network of over 470 sites nationwide. Tribune. Ogra to probe complaint that Shell, Total, PSO added manganese to gasoline Ogra has said that it will investigate a complaint that fuel suppliers including local subsidiaries of Shell, Total and PSO have added manganese to their gasoline. Honda Atlas Cars Ltd. has filed the complaint, saying the harmful additive appears to be damaging the engines in its vehicles. The tests have shown levels of manganese of up to 53 milligrams per kg (mg/kg), while the additive is deemed at a "danger level" at 24 mg/kg in fuel samples from Shell Pakistan Ltd, Total Parco Pakistan Ltd, and PSO Lt, Honda Cars lamented. BR. Govt. to resume privatisation program Privatization Commission (PC), in its meeting, has decided to resume its privatisation program to privatize loss-making Pakistan Steel Mills, power generation and supply companies to reduce the losses of the power sector. The govt. had stopped its privatisation program after divesting the shares of profit-making institutions like HBL, UBL, ABL, Pakistan Petroleum Ltd. and National Power Construction Company. The govt. has generated $ 1.7Bn through privatisation since Jun.’13. The PC board has also extended approval to initiate next steps for the privatisation of SME Bank and Heavy Electrical Complex. The board also decided that the federal govt. will be approached to clarify whether privatisation for PIACL is an option or not.. The Nation. Sindh Assembly refuses to accept census results Pointing out various anomalies in the exercise, the Sindh Assembly has refused to accept the results of the latest population census. In support of its stand, it pointed out that the population of Karachi was 9.39Mn in the 5th census report of 1998, and after 19 years it was shown as only 14.9Mn with an annual growth rate of 2.41%. Millions of people were shown with double addresses and counted in their home provinces though they worked and lived in Sindh. This was an unfair treatment to Sindh which could not be allowed. Dawn. Change of Govt. in Islamabad won’t affect CPEC: China China has said that the development work on 19 of 50 projects related to CPEC was already under way. It will not be affected by a change in government in Islamabad claimed the Chinese Ministry of Foreign Affairs. Asian Affairs Department’s Deputy Division Director Liu Pengfei said \ China wants to complete the CPEC at the earliest because the initiative is important for the people of both countries. Dawn. NLC plans int’l standard rest areas on highways, CPEC routes In view of anticipated rise in volume of heavy vehicular traffic in wake of CPEC, National Logistics Cell (NLC) has planned to establish rest areas of international standard astride national highways and CPEC routes with integrated facilities for commuters in general and truckers in particular. The initiative has been undertaken by NLC in line with recommendations of National Trucking Policy which provides for setting up multipurpose parking and resting facilities for drivers at major locations astride National Highway. The project has been named as NLC Drivers Emergency and Rest Areas (DERA). Under the phase one of DERA project, 8 rest areas will be set up at various locations on N–5 from Gujranwala to Karachi which will be subsequently increased and extended to other highways including CPEC routes. The Nation. Economic Indicators List of Indicators Change Daily 105.38 107.70 40,499 -3.88 54.73 1,277.1 45,514 17.13 6,698 6.17% -0.06% 0.09% 0.11% NM** 0.83% 0.10% -0.19% -0.08% 0.00% 0.01% WoW -0.30% YoY 1.05% 10.84% 22.19% -29.75% -117.29% 56.33% $ Bn 19.84 27-Oct FY18 Jul-Sep 17 Remittances $ Bn 4.79 Jul-Sep 17 Exports* $ Bn 5.17 Jul-Sep 17 Imports* $ Bn 14.26 Jul-Sep 17 Trade Balance* $ Bn -9.09 Jul-Sep 17 Current Account $ Mn -3,557 Foreign Direct Inv. $ Bn 0.66 Jul-Sep 17 Jul-Aug 17 LSM Growth* % 11.30 % 3.50 Jul-Oct 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 29-Oct-17, 138.5 145 135 125 EUR, 29-Oct-17, 122.5 115 105 95 Oct-16 USD Jan-17 GBP EUR Apr-17 Jul-17 USD, 29-Oct-17, 105.5 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "Fear has never been a good adviser, neither in our personal lives nor in our society." Angela Merkel Chart of the Day Pakistan's Energy Import (4MFY18) 4,000 Post MSCI inclusion: Over 300 foreign portfolio investors open accounts at PSX More than 300 foreign institutional investors have opened their accounts with the PSX after the bourse’s inclusion into MSCI emerging market (EM) index in May’17, but they are awaiting politico-economic dust to settle to make investments, Haroon Askari, acting MD of PSX said. The News. 2,500 Foreign reserves decline $ 59.3Mn The country's total liquid foreign reserves slightly declined by $ 59.3Mn to $ 19.84Bn as on Oct. 27, 2017, compared to $ 19.90Bn as on Oct. 20, 2017. During the week under review, SBP's reserves decreased by $ 95Mn to stand at $ 13.85Bn, down from $ 13.94Bn due to external debt servicing. The reserves held by banks posted an increase of $ 35.6Mn to $ 5.99Bn in the week under review compared to $ 5.96Bn a week earlier. BR. Value PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % Forex Reserves 3,500 Stockbrokers directed to register branch offices, agents SECP in a circular titled ‘Illegal/Un-registered Agents and Branch Office(s) Of Securities Brokers’ has warned stockbrokers not to operate businesses through freelance marketing agents, and directed them to register their branch offices with the SECP if any. Dawn. Unit 2-Nov 2-Nov 2-Nov 2-Nov 2-Nov 2-Nov 2-Nov 2-Nov 2-Nov 2-Nov Crude (DE'17) Gold (DE'17) Gold (10g) Local Silver (DE'17) Cotton(KHI)-40 kg Kibor-6M Customs to launch e-payment An e-payment module, co-developed by Pakistan Customs and SBP, will go online by next month. The system would be available 24/7 to facilitate tax payers. The News. Petrol sales rise despite cheaper CNG Despite being a clean and cheaper source of energy, CNG has been unable to beat the use of petrol, which continues to post sale and import records. Petrol imports hit a record high of 549,968 tons in Sep’17 while its sales stood at 642,000 tons. Petrol off-take has been surging owing to rising sales of two- and four-wheelers. Imports of used cars of mostly small engine power are also boosting petrol demand. Dawn. Date / Period USD-Interbank USD-Open MKT KSE-100 index FIPI 3,677 3,000 2,150 2,000 1,849 1,254 1,500 1,000 290 500 0 CRUDE HSFO MOGAS HSD LSFO Source: KCCI Research,OCAC Units in thousand Tons 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