Pakistan Daily Economy Update - 30 December

Transcription

1. Dec 30 , 2020 KCCI - eBulletin Ghani appointed chairman of FBR The federal cabinet has appointed Muhammad Javed Ghani as regular chairman of FBR. BR. Provisional figures: 29-day tax collection stands at PKR 422Bn FBR has provisionally collected PKR 422Bn during first 29 days of Dec’20 against assigned target of PKR 541Bn, reflecting a shortfall of PKR 119Bn. FBR is expected to achieve the assigned monthly target of PKR 541Bn by the end of Dec’20. Now, the tax machinery is required to collect an amount of PKR 119Bn in the last two days to meet the target. BR. Trans-Afghan rail project discussed with Uzbekistan Pakistan and Uzbekistan have discussed Trans Afghan Rail Project that would connect Pakistan and Uzbekistan via Afghanistan, and later, the \ other Central Asian countries could also join in the project. According to Railway ministry, PM Imran Khan signed joint appeal in the name of WB for investing around $ 4.8Bn in rail link among Pakistan, Uzbekistan, and Afghanistan. Presidents of Uzbekistan and Afghanistan had already signed the trilateral joint appeal to the WB, and the rail link would play its role for the progress and prosperity of these countries. BR. SC berates Sindh CM: Karachi has been 'turned into a village': CJP Chief Justice of Pakistan, Justice Gulzar Ahmed, has berated Sindh CM Murad Ali Shah for not acting on court orders to remove encroachments from land meant for KCR and for the overall condition of the metropolis, saying there are "no roads, no water, no parks", and the city had been "turned into a village". During the hearing, the Chief Justice asked Shah for the progress report on removal of encroachments. The CM apologized to the court for not submitting the progress report, saying he would submit a detailed report if he was given two weeks' time. BR. Dawood, Afghan minister discuss new APTTA The negotiation teams of Pakistan and Afghanistan have held exhaustive discussions for two days on a new Afghanistan-Pakistan Transit Trade Agreement (APTTA), which is expiring on 11th Feb’21. Advisor on Commerce, Abdul Razak Dawood, said that the following five issues are on the agenda: APTTA, PTA, free movement of trucks, agreement on unification of Customs procedures and processes and, improvement in the banking system. BR. MoU signed between PIA and NADRA A MoU was signed between PIA and Nadra to bring Nadra’s basic services including online verification services, business process automation and payment gateway services to PIA. PIA said that it will not only bring transparency in its internal processes but also provide better services to its customers and travel agents with the help of Nadra services. The News. Supply chains choke as container shortage persists A dire shortage of shipping containers in some countries matched by an oversupply in others has created awkward bottlenecks all over the globe, with Pakistan hit particularly hard. There is a material shortage of containers, and it will take us till Mar’21 to sort it out, said Mohammed Rajpar, Chairman of the Pakistan Ship’s Agents Association. The crunch began back in Sep’20 but has shown no signs of abating, he added. Dawn. 29-Dec PKR PKR 160.39 160.95 0.01% 0.09% KSE-100 index FIPI 29-Dec 29-Dec Pts. $ Mn 43,282 -39.87 -0.90% NM** Crude (AP'19) 29-Dec $/bbl 48.00 0.80% Gold (MA'19) 29-Dec $/oz 1,882.9 0.13% Gold (10g) Local 29-Dec PKR 97,220 0.00% Silver (MA'19) 29-Dec $/oz 26.22 -1.21% Cotton(KHI)-40 kg 29-Dec PKR 10,663 0.00% Kibor-6M 29-Dec % 7.35 0.00% Forex Reserves 18-Dec $ Bn 20.31 WoW -0.33% Remittances Jul-Nov 20 $ Bn 11.77 26.58% Exports* Jul-Nov 20 $ Bn 9.74 2.11% Imports* Jul-Nov 20 $ Bn 19.42 1.29% Trade Balance* Jul-Nov 20 $ Bn -9.69 -0.48% Current Account Foreign Direct Inv. Jul-Nov 20 Jul-Nov 20 $ Bn $ Bn 1.64 0.72 193.98% -18.87% YoY Jul-Oct 20 LSM Growth* % 5.46 % 8.76 Jul-Nov 20 Avg. CPI Discount Rate % 7.00 Jul-20 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 235 GBP, 29-Dec-20, 216.6 225 215 205 195 EUR, 29-Dec-20, 196.6 185 175 165 155 145 USD Dec-19 GBP Mar-20 EUR Jun-20 USD, 29-Dec-20, 160.6 Source: KCCI Research ; Oanda.com Sep-20 Quote of the Day “Power comes not from knowledge but from knowledge shared.” Bill Gates South Asian GDP Growth Rate Projections by ADB 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2020 2.6% 3.2% Properties, vehicles: FBR issues e-notices to over 0.2Mn taxpayers FBR has issued computerized notices to over 0.2Mn taxpayers for verification of movable or immovable properties/vehicles, also including undeclared or underreported immovable properties. Taxpayers receiving such notices are only required to declare their concealed movable and immovable by revising their wealth statements. BR. 29-Dec 2.2% 3.5% KE allocates PKR 26Bn to improve distribution network K-Electric has earmarked around PKR 26Bn under its plan to upgrade infrastructure, strengthen service delivery and mitigate disruptions during the coming year. The utility also has an ambitious investment plan under which $ 2Bn would be spent across the city’s energy value chain over the next 3 years, including establishment of a 900MW RLNG-fired power plant and downstream transmission and distribution upgrades. The News. USD-Interbank USD-Open MKT 3.0% 4.0% British Covid variant confirmed in Karachi Sindh govt. has confirmed the first cases of the UK variant of Covid-19 in Karachi among passengers who had returned from Britain in the last 12 days, as the authorities launched a gigantic exercise to trace the patients’ contacts. Tribune. Change Daily 5.2% 5.8% Construction industry: No extension in amnesty scheme deadline: Dr Waqar SAPM on Revenue, Dr Waqar Masood Khan has said that the govt. is not considering any proposal on the extension in the amnesty scheme announced for construction industry beyond the deadline of 31st Dec’20. BR. Value 6.2% $ 150Bn of Pakistanis stashed abroad: Shabbar Zaidi Former chairman FBR Shabbar Zaidi has made a startling disclosure that $ 150Bn owned by Pakistani businessmen are stashed in foreign bank accounts, earning meagre profits because of lower interest rates. He said that now the time has come in the wake of a changed scenario worldwide when these businessmen will have to think to bring back this huge money. The News. Unit 4.0% Different items: Tariff review proposals to be placed before ECC The Tariff Policy Board (TPB) has discussed different proposals to review tariffs of different items proposed by different public and private sector entities, which will be placed before the ECC for final nod. The meeting was informed that replies from the Ministry of Industries on removal of ACD on 85 tariff lines and rationalization of tariff on solid surface sheet in light of the investigation conducted by NTC, were awaited. BR. Date / Period 5.3% 6.4% Karachi water project referred to Ecnec Central Development Working Party (CDWP) has approved three projects worth PKR 5.52Bn and referred Greater Karachi Water Supply Scheme (K-IV) 260mgd (Phase-1) worth PKR 25.552Bn to the Ecnec for approval. The K-IV has been designed with the total capacity of 650mgd (million gallons per day) to meet the demand of 18.5Mn inhabitants of Karachi city. BR. Economic Indicators List of Indicators 7.8% 8.0% Proposed zero-rating for textile sector: MoC to be eyeball to eyeball with FBR today Ministry of Commerce (MoC) will be eyeball to eyeball with FBR at an ECC meeting today (30th Dec’20) on zero-rating for the entire textile sector proposed in PKR 900Bn incentives-based Textile Policy 2020-25. According to the draft policy, the govt. will provide consistent, longterm policies for the foreseeable future, while undertaking following measures: electricity will be provided at cents 9/kWh; RLNG at $ 6.5/MMBtu; system gas at PKR. 786/MMBtu during the policy period; Long Term Financing Facility (LTFF) and Export Financing Scheme (EFS) rates will not be changed; review of LTFF and refinance scheme for SMEs, and indirect exporters and building cost will be included; and brand development fund will be launched. BR. 2021 Source: KCCI Research, ADB Trade Opportunity : Pak-China Virtual B2B meetings Cabinet rejects Sindh CM's 'politically-tainted' gas contention The federal govt. has dismissed the Sindh CM's contention that the province is producing 2,500mmcfd gas but getting only 1,000mmcfd, and Ecommerce Gateway Pakistan (Pvt.) Ltd (www.ecgateway.net) is organizing PakChina Virtual B2B Meetings which will be held on 4th - 6th Jan’21 on Zoom. The accused him of giving "political colour" to a serious economic issue. SAPM on Petroleum Nadeem Babar held the Sindh govt. responsible for top Chinese manufacturers and suppliers from sanitary ware sector will be delay in the construction of 17-Km gas pipeline for transportation of LNG from terminal, and stated that only after permission was granted by attending these meetings. Therefore, members are requested to register the provincial govt. in the 3rd week of Oct‘20, construction of pipeline has been completed two days ago. The govt. has arranged 12 cargoes themselves by filling the registration form on https://b2b.ecgateway.net/email. They can also contact Mr. Umair Nizam: 0335-3572280 or Mr. Wasi ul Haq: 0300for the month of Jan’21 to meet the domestic gas requirement, which increases at this point in time 2 times higher in the SSGCL system. BR. 0568717 for registration.