Pakistan Daily Economy Update - 31 May

Transcription

1. May . 31, 2017 KCCI - eBulletin Exemption-related SROs: talk on proposed amendment to finance bill deferred Senate’s Finance Standing Committee has deferred further discussion on a clause in the Finance Bill 2017, designed to allow Board (FBR) to issue exemptions to special cases with prior approval of minister in-charge instead of the federal govt. In this regard, amendment in the 18th Constitution Amendment proposed in the finance bill will replace the word "federal govt." with "board with the approval of the minister in-charge". However, some senators have not agreed with the decision saying that FBR wants to take the power of federal cabinet as far as issuance of exemption in duties is concerned. BR. Detention certificates: Customs empowered to slap PKR 0.5Mn penalty on port authorities The federal govt. has empowered customs department to impose penalty of PKR 0.5Mn on port authorities and terminal operators, who failed to entertain the delay/detention certificates issued for importers to exempt them from demurrage charges. An amendment in the Customs Act 1969 through Finance Bill 2017 has empowered the customs department to penalize the port authorities like KPT, KICT, PICT, Port Qasim, QICT, off-deck terminals and all terminal operators at sea port and dry port where FBR can cancel the licence of the concerned defaulter. BR. Punjab budget for 2017-18 on Jun. 2, 2017 The Punjab budget for financial year 2017-18 will be presented on Jun. 2, 2017 where Finance Minister Dr Ayesha Ghous Pasha will present the budget. It is expected that no new tax will be levied in the upcoming budget while sales tax will be imposed on more services in an effort to broaden tax net. The budget will focus on extending relief to people. Special measures will be proposed for ensuring ease in doing business and surge in exports. The Nation. Budget offered nothing for industrial growth, boost in exports The textile millers of Pakistan have said that it is impossible to achieve the export target of 12% of GDP, given the non-serious attitude of the govt. The textile industry stakeholders deplored that the federal budget 2017-18 has offered nothing for industrial growth and increase in exports. They further said that instead of announcing initiatives for immediate restoration of textile industry’s viability, govt. has further burdened it with increase in turnover tax, customs duty and sales tax on cotton import and levy of further taxes. The Nation. Increased taxes on CNG unacceptable Owners and operators of CNG filling stations have refused to accept the increase in taxes made in the budget for FY18 and called for its immediate withdrawal. They said that the taxes on CNG outlets have been increased, which will cause problems for the operators and masses, therefore, the govt. should review its decision and retract the move. CNG station owners have continued to pay 4% withholding tax and 26% sales tax. Tribune. PM orders audit of circular debt claims Prime Minister Mr. Nawaz has ordered a special audit of fresh circular debt claims of PKR 480Bn and third-party analysis of the power demand-and-supply situation on the basis of projects that are coming up for commercial operations. During a meeting of the cabinet committee on energy, former secretary Mr. Dagha termed the prevailing situation “a management problem”. Otherwise, there was no exceptional surge in demand. He told the meeting that demand and supply numbers were almost unchanged from last year, even though fresh generation capacity had also come on line. Dawn. Companies’ bill signed into law President Mamnoon Hussain has signed the Companies Act 2017 on Tuesday replacing the Companies Ordinance 1984. The enactment of the Companies Act, 2017, is one of the most significant legal reforms in the country. Dawn. Nepra told to act against KE over prolonged power cuts Nepra has been directed by the Sindh High Court to “take appropriate action in accordance with the law against K-Electric authorities” for prolonged load shedding and excessive billing. The court also directed the power regulatory authority to ensure the implementation of a Jan 22, 2016 order that had declared area-based load shedding illegal. The bench also expressed grave displeasure over Nepra’s failure to keep a vigilant eye on the power utility’s alleged malpractices. Dawn. Chinese bus maker wants to invest in Sindh In a meeting with Chairperson Sindh Board of Investment (SBI), officials of Yutong bus Company, a Chinese bus maker, have shown keenness to pour investments in inter-city and intra-city buses operations for different routes in Karachi. The company has also shown interest in installing a bus assembling plant in this connection. In this regard, an 11-member delegation of Yutong Bus led by Shi Cun Tu visited SBI head office in order to explore business opportunities. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (JY'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M 30-May 30-May 30-May 30-May 30-May 30-May 30-May 30-May 30-May 30-May PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.80 106.20 51,453 -20.88 49.58 1,264.2 42,814 17.40 7,314 6.15% Forex Reserves 19-May $ Bn 21.01 -0.06% 0.05% -1.32% NM** -1.10% -0.27% 0.00% -0.06% 0.58% 0.01% WoW 1.59% YoY -2.79% -2.29% 19.88% -40.12% -204.75% USD-Interbank USD-Open MKT KSE-100 index FIPI 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 % 4.09 Avg. CPI-FY17* Jul-Apr 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 May-16 USD Regulator proposes cut in petrol and diesel prices for June Ogra has recommended PKR 3.20 and PKR 2.30/liter cut in the prices of HSD and petrol, respectively. On the other hand, Ogra recommended PKR 11.60 and PKR 9.50/liter increase in the prices of kerosene and light diesel oil respectively. In a summary sent to the government, the regulator said the adjustment in diesel and petrol prices was required to pass on the impact of drop in the international prices during May as benchmark crude oil eased to $ 50-52 per barrel. Dawn. 300MWs plant at Gwadar: PPIB issues LoI to Chinese company Private Power Infrastructure Board (PPIB) has issued Letter of Interest (LoI) to China Communications Construction Company Ltd (CCCC) for development of 300MW imported coal-fired power project at Gwadar which will be developed in the IPP mode. The company will get tariff approval from Nepra and start construction after achievement of financial close. BR. Technology, automation: SBP unveils risk management framework for FIs SBP has issued Enterprise Technology Governance & Risk Management Framework for Financial Institutions (FIs) to minimize the technology risks. In this regard, all banks/DFIs/Microfinance Banks will be required to upgrade their systems, controls and procedures to ensure compliance with this framework latest by Jun. 30, 2018. The framework has been developed after extensive consultation with both internal & external stakeholders. BR. EUR, 30-May-17, 117.2 USD, 30-May-17, 105.1 Aug-16 GBP Nov-16 EUR Feb-17 Source: KCCI Research ; Oanda.com Quote of the Day “Live daringly, boldly, fearlessly. Taste the relish to be found in competition – in having put forth the best within you.” Poultry shortage feared in coming weeks The Pakistan’s poultry farmers has warned of chicken and egg shortages in coming weeks as the industry faced problems in getting imported poultry feed ingredients cleared from the Customs department. There is a likelihood that because of the shortage of poultry feed ingredients, the feed will be in short supply in coming days. This could lead to losses due to mortality, delayed weight gain and drop in egg production. Tribune. Food imports to cost more The government has enhanced regulatory duty to a maximum of 25% on imports of essential eatables. The move may cause higher than anticipated import-led inflation in FY18. The regulatory duty has been enhanced to 20% from 15% on fresh fruits yogurt, butter, cheese and its products, natural honey, and many other dairy products. Dawn. GBP, 30-May-17, 134.9 Henry J. Kaiser Chart of the Day FEDERAL PSDP ALLOCATION 1,200 1,000 800 600 400 200 0 Budgeted Value in PKR Bn Revised Source: KCCI Research, MoF Disclaimer This report has been prepared by KCCI Research & Development Cell. The information India likely to submit annual report on Indus waters before June 1 contained herein have been compiled or arrived at based upon information obtained from India is expected to submit annual report of Permanent Indus Commission (PIC) before 1st Jun’17 to Pakistan under the arrangements of sources believed to be reliable and in good faith. Such information has not been independently verified. Indus Waters Treaty (IWT) despite all hostilities between the two South Asian countries. The News. 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