Pakistan Daily Economy Update - 3 October

Transcription

1. Oct . 2-3, 2016 KCCI - eBulletin -0.11% USD-Open MKT 30-Sep PKR 105.12 -0.08% KSE-100 index FIPI 30-Sep 30-Sep Pts. $ Mn 40,542 -8.42 0.61% NM** Crude (JU'16) 30-Sep $/bbl 48.08 0.94% Gold (MY'16) 30-Sep $/oz 1,317.7 -0.29% Gold (10g) Local 30-Sep PKR 44,400 -1.86% Silver (MY'16) 30-Sep $/oz 19.12 -0.01% Cotton(KHI)-40 kg 30-Sep PKR 6,575 -0.81% Kibor-6M 30-Sep % 6.06% 0.00% Forex Reserves 23-Sep $ Bn 23.42 3.18% Remittances Jul-Aug 16 $ Bn 3.09 -3.17% Exports* Jul-Aug 16 $ Bn 3.14 -8.19% Imports* Jul-Aug 16 $ Bn 7.88 10.21% Trade Balance* Jul-Aug 16 $ Bn -4.74 -27.06% Current Account Avg. CPI-FY17* Jul-Aug 16 Jul-Aug 16 $ Mn % -1,316 3.84 -91.84% WoW YoY Sep-16 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 GBP, 1-Oct-16, 134.8 135 EUR, 1-Oct-16, 116.8 125 115 105 95 USD, 1-Oct-16, 103.9 85 75 Oct-15 Jan-16 USD The growing interest in corporate farming CORPORATE farming has gained traction in the wake of the Kissan package for the agriculture sector in the last budget, as a growing number of companies are enrolling themselves with the Securities and Exchange Commission of Pakistan. As many as 185 such companies have been incorporated from Sep. 15, 2015 to Sep. 27, 2016. Most of them are in seed, fish farming, poultry, livestock and feed businesses. It raises hope for an injection of fresh investment. The highest number of corporate farming companies — 116 — have been enrolled in Punjab, followed by 43 in Sindh, 16 in Islamabad and 10 in Khyber Pakhtunkhwa; but no company has been registered in Balochistan in the last year. Dawn – Mon. Dar advises SECP to replace Insurance Ordinance 2000 Finance Minister has advised the Security and Exchange Commission of Pakistan (SECP) to replace Insurance Ordinance 2000 with a new ordinance. Chairing a meeting held to review the amendments required in insurance regulatory framework, he said it would improve the image of insurance industry of Pakistan internationally. He advised SECP to start nationwide stakeholder consultation in this regard and said that the proposed law may be processed as per the described procedure. Dawn – Mon. Henry Ford 14 13 13.83 13.53 14 14.02 Government Outstanding Domestic Debt and Liabilites 15 14.26 Chart of the Day 13.07 5 SOEs worth PKR 170Bn privatised: Zubair State Minister and Chairman Privatisation Commission, Muhammad Zubair has said that govt. had privatized five State Owned Entities (SOEs) worth of PKR 170Bn during its current regime. These include HBL, UBL, Allied Bank Ltd, National Power Construction Company and PPL. At the moment nine SOEs including Pakistan Airlines (PIA) and Pakistan Steel Mills were included in the active list of privatisation. BR - Sun. Oct-16 "When everything seems to be going against you, remember that the airplane takes off against the wind, not with it." 13.15 Imported LNG: circular debt soars to over PKR 12Bn As circular debt of power sector reaches over PKR 650Bn, another circular debt on imported LNG has piled up; standing at over PKR 12Bn. As on Sept. 22, 2016, PKR 4.69Bn was receivable from IPPs on account of Re-gasified LNG while an amount of PKR 8.02Bn was payable to PSO. The first imported LNG vessel valued at PKR 3.25Bn docked in Apr.’15 which was financed by Pak-Arab Fertilizer, but the private company has so far paid only PKR 800Mn to PSO, and the cost of RLNG that was used by the IPPs is also yet to be recovered. BR - Mon. Jul-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day 12.94 Foreign investors withdraw over $ 41Mn from PSX Despite prevailing strong positive trend and increasing volumes at the Pakistan Stock Exchange, foreign investors withdrew $ 41.3Mn during Sept.’16 compared with $ 20.4Mn in Aug.’16. The foreign investors have withdrawn $ 8.6Mn during the outgoing week in which Banks and Oil and Gas Exploration sectors witnessed net selling of $ 4.2Mn and $ 2.9Mn respectively whereas net buying of $ 2.6Mn was seen in cement sector. BR - Sun. Apr-16 GBP 13.65 About 90,000 jobs to be filled: Sindh lifts ban on recruitments Sindh Cabinet has decided to lift a ban on all kind of recruitments and decided to fill around 90,000 posts vacant in the province. Almost half of them are promotion posts, therefore about 50,000 positions would be filled through selection committee and Sindh Public Service Commission. Sindh Chief Minister Murad Ali Shah clarified in a cabinet meeting that there would not be any compromise on merit. BR - Sun. Change Daily 104.61 13.63 Corridor to create opportunities for local firms: GECS The Global Economic Conditions Survey (GECS), jointly carried out by ACCA and Institute of Management Accountants (IMA), has revealed that the eventual implementation of the China Pakistan Economic Corridor (CPEC) will also create opportunities for local firms. The report stated that eventual implementation of the CPEC will involve hefty Chinese investment into Pakistan's infrastructure network which will also create opportunities for local firms. It further revealed Pakistan business confidence rallies despite OECD woes. BR - Sun. Value PKR 13.41 Dar briefed about modern border terminals Finance Minister Muhammad Ishaq Dar, chaired a meeting to review establishment of Pakistan Land Port Authority. The minister was briefed about the requirement of modern border terminals required in current situation of growing trade and rising international commercial goods volume. Various models of up-gradation of border posts for covered cargo at Jamrud, Taftan, Sosst, were discussed. BR - Mon. Unit 30-Sep 13.19 Govt. challenges tariff for power transmission line The govt. has challenged around 71-paisa per unit tariff for the 878km Matiari-Lahore transmission line determined by the power regulator as the Chinese contractor has expressed its inability to pursue the $ 2.1Bn project for being unviable. Private Power and Infrastructure Board PPIB has said that the Chinese investors had declined to go ahead with the project at the tariff and, therefore, the regulator had been requested to consider a revised tariff of about 95 paisa’s per unit — up by about 30%. Tribune – Sun. List of Indicators 13.15 Power shortfall reaches 5000MW: Ministry to conduct forced load-shedding Water and Power Ministry has acknowledged that electricity shortfall has exceeded 5,000MW which compelled govt. to opt for forced load-shedding. Some units of IPPs and GENCOs experienced unforeseen technical outages resulting in lesser power generation to the tune of 1,260MW. In order to manage the power position, normal load management of 6 hours for urban, 8 hours for rural and zero load shedding for industries is being carried out in the country. BR - Mon. Date / Period USD-Interbank 13.01 Renewable energy: IFC provide credit line Country Director World Bank (WB), Patchamuthu Illangovan called on Finance Minister Ishaq Dar where portfolio of the World Bank assisted projects in Pakistan was discussed. The Director said that the IFC will help in renewable energy in Pakistan and provide a credit line in this regard as World Bank Group sees Pakistan stronger partner for further development, collaboration and assistance and that the country has shown strong economic turnaround. BR Sun. Economic Indicators 13 12 Source: KCCI Research, SBP Value in PKR Tn 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