Pakistan Daily Economy Update - 30 November

Transcription

1. Nov 29-30 , 2020 KCCI - eBulletin FBR seeks real-time videos of sugar production Large Taxpayers Office (LTO) Karachi has directed sugar mills to install video cameras to comply with mandatory online monitoring of production activities to avert tax evasion. LTO Karachi has jurisdiction over 29 sugar mills for assessment of tax. Implementation of a video analytics system for electronic monitoring of sugar manufacturing has been made mandatory for the crushing season FY21. The News-Mon. FBR’s IRIS miscalculates income tax obligations Karachi based tax practitioners have said that FBR is yet to fix technical faults in its online returns filing system that is now causing erroneous tax calculations among other things. They said that calculation errors appear on IRIS portal at the time of online filing of income tax returns for TY20. They added that they have already raised these issues through a letter to Member Inland Revenue Operations, but to no avail. The News-Mon. Duty collection on mobile device import doubles to PKR 54Bn Pakistan Customs has collected PKR 54Bn in the last year on import of mobile devices through Device Identification, Registration and Blocking System (DIRBs), which is 145% higher over the preceding year. Data by FBR showed that the increase in revenue from mobile phone import is due to the fact that now any non-duty paid/smuggled phone cannot be used in Pakistan without payment of due taxes and registration with the Pakistan Telecommunication Authority (PTA). Dawn-Sun. Petrol prices may be revised upward Federal govt. may revise prices of petroleum products upward from 1st Dec’20 following surge in the price of crude globally. The demand in crude oil is increasing on the news of successful coronavirus vaccine. The average crude oil price increased by 0.24% internationally in three months (Sep-Nov’20). The petrol price is likely to increase by PKR 2.50 per litre while diesel price is likely to go up by PKR 2.75 per litre. BR-Mon. Govt may hike profit margin of oil firms, dealers by 16% Amid declining oil prices, the govt. is likely to increase profit margins of Oil Marketing Companies (OMCs) and dealers’ commission by 16% without completion of a market study as was promised last year. The Ministries of finance and planning and Ogra are currently examining a formal proposal, moved by the energy ministry’s petroleum division, before a meeting of the ECC takes a final decision. The petroleum division has proposed 45 paisa increase in OMC’s margin on every litre of both petrol and high speed diesel (HSD). As such, the OMCs would now get PKR 3.26 per liter margin on both products. Dawn-Mon. Highest gas wellhead prices, LPG margins making Pakistani gas costly for consumers The highest gas wellhead prices and LPG margins in the region is making Pakistani gas more expensive for the consumers. The wellhead prices of domestic gas and margin on LPG is higher respectively 33% and 26% than the regional countries. For the month of Oct’20, Indian consumers were paying Margin on LPG equivalent to Pakistani PKR 6.94 per kg whereas Pakistani consumers were paying PKR 17 per kg. Due to highest margins Pakistani consumers paid PKR 33Bn more than the Indian Consumers for the same quantity of LPG. The NationMon. Pakistan steps up efforts to regain export share in Afghan market Adviser on Commerce, Razak Dawood has said that in the wake of incompetence in decision-making, irrational and faulty policies on behalf of Pakistan in the past, Kabul diversified its import regime and abandoned the reliance on imports from Pakistan which is why 50% country’s export share glided to Iran and India. He added that Pakistan has now geared up its efforts to regain the export share in Afghanistan and positive parleys between Islamabad and Kabul are underway for preferential trade agreement, and trade under Afghanistan-Pakistan Transit Trade Agreement. The News-Sun. Foreign investors pull out $ 471.7Mn from Pakistan’s debt market SBP data has shown that foreign investors have pulled out $ 471.7Mn from Pakistan’s debt market in 5 months as lower interest rates and Covid resurgence weighed down their investment appetite. Continued hot money outflows from the local fixed income market indicates that the low-yielding govt. debt has become less attractive for foreigners with the SBP having slashed policy rates by 625 basis points to 7% since mid-Mar’20. The News-Mon. \ NPCs only for NRPs FBR has clarified that only non-resident Pakistanis who maintains a bank account abroad or foreign currency account maintained in Pakistan can purchase Naya Pakistan Certificate and can avail tax benefit. It is also clarified that such individuals are not required to file returns of income. The News-Mon. Gas pipeline control given to Russia In a major effort to foster strategic partnership, Pakistan has agreed to give management control of Pakistan Stream Gas Pipeline (PSGP) project to Russia through a special purpose company. The Russian president had also expressed keen interest in the project that would supply imported gas to Punjab as both sides considered the scheme an opportunity to boost economic and strategic relationship. The project will mark the emergence of Russian footprint in Pakistan after decades, since the former’s key role in setting up OGDC and Pakistan Steel Mills (PSM). Dawn-Sun. Nepra urged to revise industrial tariff Power Division has requested NEPRA to revise industrial power tariff and abolish Time of Use (ToU) charges in accordance with the decisions of ECC and CCoE. The govt. took decision to lower tariff for the industrial sector despite finance adviser's warning that provision of superfluous subsidies in power sector can create hurdles in release of next tranche from IMF. The Fund, in talks with the economic managers, has sought increase in electricity and gas tariffs to qualify for next tranche. The govt. has claimed that Fund's team is expected to arrive in Pakistan soon for talks on the program. BR-Mon. TCCIM to Host Online Forums with Russian, Pakistani Traders Tehran Chamber of Commerce, Industries, Mines and Agriculture’s Department of International Affairs has arranged online trade forums between traders of Iranian private sector and their counterparts from Russia and Pakistan in Dec’20. The webinar is scheduled to be held on 22nd Dec’20, between Iranian businesspeople and economic players, and members of Pakistan’s Karachi Chamber of Commerce wherein the two sides will survey cooperation in the fields of energy, tourism, transportation, food, agriculture, pharmaceuticals, health, apparel, textile and leather, among others. Financial Tribune-Sun. Three aircraft of Sialkot’s airline reach base Three Airbus A320-200s of Air Sial — the airline launched by Sialkot’s business community — arrived at the Jinnah International Airport, Karachi, from Phoenix, Arizona. From Karachi the aircraft were flown to their base in Sialkot. Dawn-Mon. 70% of cases being reported from five cities, NCOC told Five major cities — Lahore, Rawalpindi, Islamabad, Peshawar and Karachi — contribute 70% of coronavirus cases in Pakistan, according to the National Command and Operation Center (NCOC). During the last one week, 46 deaths and around 3,000 new cases were recorded daily on an average. Dawn-Mon. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 27-Nov 27-Nov PKR PKR 159.46 160.30 0.12% 0.31% KSE-100 index FIPI 27-Nov 27-Nov Pts. $ Mn 40,807 -0.87 -0.55% NM** Crude (AP'19) 27-Nov $/bbl 45.53 6.23% Gold (MA'19) 27-Nov $/oz 1,781.9 -1.66% Gold (10g) Local 27-Nov PKR 94,993 2.61% Silver (MA'19) 27-Nov $/oz 22.55 -2.66% Cotton(KHI)-40 kg 27-Nov PKR 10,128 0.00% Kibor-6M 27-Nov % 7.35 0.00% Forex Reserves 20-Nov $ Bn 20.55 WoW 2.32% Remittances Jul-Oct 20 $ Bn 9.43 26.10% Exports* Jul-Oct 20 $ Bn 7.55 0.33% Imports* Jul-Oct 20 $ Bn 15.13 -0.79% Trade Balance* Jul-Oct 20 $ Bn -7.58 1.88% Current Account Foreign Direct Inv. Jul-Oct 20 Jul-Oct 20 $ Bn $ Bn 1.16 0.73 181.75% 9.09% YoY Jul-Sep 20 LSM Growth* % 4.81 % 8.86 Jul-Oct 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 235 225 GBP, 29-Nov-20, 212.2 215 205 195 EUR, 29-Nov-20, 190.6 185 175 165 155 145 USD Nov-19 USD, 29-Nov-20, GBP Feb-20 EUR May-20 159.4 Source: KCCI Research ; Oanda.com Aug-20 Quote of the Day "Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved." Helen Keller 2020 Global Terrorism Index Measures the impact of terrorism in 160+ countries Afghanistan (1st) Iraq (2nd) Nigeria (3rd) Pakistan (7th) India (8th) Sri Lanka (20th) Thailand (21st) Nepal (27th) USA (29th) Bangladesh (33rd) Iran (46th) China (53rd) Malaysia (76th) 2.09 0 2 6 5.78 5.34 5.26 4.9 4.15 3.58 4 6 9.59 8.68 8.31 7.54 7.35 8 10 Source: KCCI Research; Institute for Economics & Peace TRADE INQUIRIES Members interested in exporting fuel barrels (various specifications), Stationary, Books, Office Equipment and Carpets to Jorden are requested to send their company profiles with KCCI membership number at res@kcci.com.pk.