Pakistan Daily Economy Update - 4 July

Transcription

1. Jul . 3-4, 2016 KCCI - eBulletin STPF 2015-18: five SROs issued to launch export initiatives Commerce Ministry has issued five SROs to launch export development initiatives announced in the Strategic Trade Policy Framework 2015- 18, to be effective from Jul. 1, 2016 where PKR 6Bn have already been allocated for financing these schemes. These include SRO. 579 for supporting brand and certification development, SRO. 578 for supporting product diversification and SRO. 582 for drawback of local taxes. Further SROs have also been introduced which provide support for value addition and technology upgradation. BR – Sun. Non-tax revenue: PKR 195Bn included in taxes to claim lofty collection The govt. has included PKR 195Bn collection on account of non-tax revenue in other taxes with the objective to claim higher tax collection. Finance Minister Ishaq Dar has transferred non-tax revenue collection of PKR 145Bn on account of GIDC under other taxes which was placed under non-tax revenue till 2013-14. Additionally, the Finance Minister also included non-tax revenue of PKR 30Bn on account of Natural Gas Development Surcharge under other taxes which was placed under non-tax revenue till FY14. An addition of PKR 175Bn has helped show higher tax-to-GDP ratio. BR – Sun. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 30-Jun PKR 104.73 0.12% USD-Open MKT 1-Jul PKR 105.10 0.26% KSE-100 index FIPI 1-Jul 30-Jun Pts. $ Mn 37,784 3.56 0.00% NM** Crude (JU'16) 1-Jul $/bbl 49.23 1.71% Gold (MY'16) 1-Jul $/oz 1,344.8 1.55% Gold (10g) Local 1-Jul PKR 45,891 7.73% Silver (MY'16) 1-Jul $/oz 19.73 5.06% Cotton(KHI)-40 kg 1-Jul PKR 6,522 3.41% 30-Jun % 6.08% 0.02% 24-Jun $ Bn 21.76 -0.05% Jul-May 16 $ Bn 17.84 5.58% Kibor-6M WoW PRI remittances: use of IBAN to be mandatory by Dec. 31, 2016: SBP SBP has announced compulsory use of incorporation of International Bank Account Number (IBAN) in Pakistan Forex Reserves Remittance Initiative (PRI) Home Remittances by Dec. 31, 2016. Further, SBP has observed that despite repeated extensions; the level of IBAN usage in home remittances is still low and banks have not taken adequate measures to Remittances Exports* enhance customer awareness in this regard. BR – Sun. Money in Swiss banks: India slips to 75th position Pakistan was placed higher, at the 69th place, with CHF 1.5Bn — a shade better than 0.1% of total foreign money parked in Swiss banks. India has slipped to 75th place in terms of money held by its citizens in Switzerland’s banks, while the United Kingdom remains on top. As per the latest annual update on Swiss banks, released by Switzerland’s central bank (Swiss National Bank), the total money held there by foreign clients fell by nearly 4% to Swiss franc (CHF) 1.42Tn at the end of 2015. Dawn – Mon. YoY Jul-May 16 $ Bn 19.15 -12.39% Imports* Jul-May 16 $ Bn 40.32 -2.74% Trade Balance* Jul-May 16 $ Bn -21.17 -7.28% Current Account Avg. CPI-FY16* Jul-Apr 16 Jul-Jun 16 $ Mn % -1,519 2.86 17.71% May-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 Duty on auto parts increased by 1% FBR has increased duty on auto parts by 1% over and above the duty structure from 45% to 46% approved on locallymanufactured components in the Auto Development Policy (ADP) 2016-2021. The govt. had approved a complete tariff structure for each component including parts and CBU. Duty on locally manufactured parts was reduced from 50% to 45% whereas 35% duty on parts remained unchanged. Duty on non-local parts was reduced in accordance with vehicle's category and 15-30% Regulatory Duty (RD) is already imposed on steel components used in vehicles manufacturing. BR – Mon. Debt servicing eats up 42.36% of FBR’s revenue Pakistan spent PKR 1.3Tn on debt servicing during FY16, which is 42.36% of the FBR’s tax revenue target of PKR 3.10Tn. Within this debt servicing, govt. paid mark-up of PKR 1.12Tn on domestic debt and PKR 118.4Bn on foreign debt during FY16. Debt servicing is continuously consuming a major chunk of the budget due to increasing public debt that has surged to PKR 19.17Tn. Ideally this ratio should be below 30% to allow the govt. to allocate more resources to social and poverty related matters. The Nation – Sun. Sale: Dar urges speeding up PSX’s divestment Finance Minister Ishaq Dar has urged to speed up the divestment of Pakistan Stock Exchange keeping in mind national interest and development of the country’s capital market. The minister made this reiteration during a meeting with high authorities of SECP and PSX chairman. Tribune - Sun. Cement sales increase 9.8%, though exports slow down Cement sales have recorded a growth of 9.82% as volumes stood at 38.87Mn tons in FY16 compared to 35.34Mn tons in FY15. The industry sold 33Mn tons in domestic markets in FY16, a robust growth of 17.01% compared to sales totaling 28.2Mn tons in the previous year. However, exports fell 18.38% to 5.87Mn tons in FY16 as compared to export of 7.2Mn tons in the previous year. Tribune - Sun. 175 165 155 135 115 105 95 USD, 1-Jul-16, 105.0 85 75 Jul-15 Oct-15 USD GBP Jan-16 Apr-16 EUR Jul-16 Source: KCCI Research ; Oanda.com Quote of the Day “Time is the most precious element of human existence. The successful person knows how to put energy into time and how to draw success from time.” Denis Waitley Chart of the Day 30% Liabilities off the book PAKISTAN’S contingent liabilities, generally outstanding government guarantees for public sector enterprises, increased 10.5% to PKR 663Bn by the end of March 2016, after a steady decline of a few years. On March 31, 2015 the contingent liabilities stood at PKR 600Bn or 0.2% of GDP, indicating that the PSEs are unable to stand on their own feet. Dawm – Mon. 0% Collection at Gwadar exceeds customs duty target Gwadar has exceeded revenue collection target of customs duty by 203% during FY16. Total target of customs duty for the Collectorate from July 2015 to June 2016 was PKR 1,654Mn and collection against this target for the same period stood at PKR 5,009Mn. The News – Mon. EUR, 1-Jul-16, 116.7 125 Korean firm to set up solar plant in Sindh A South Korean firm Hansol Technics Co. Ltd. is interested in investment of 100MWs solar power plant in Sindh. The project would be on the basis of Independent Power Provider (IPP). The Nation – Mon. Punjab’s revenue collection soars 41% Revenue collection by the Punjab Revenue Authority (PRA) rose 41% and stood at PKR 61.45Bn in FY16 as compared to the previous year when revenues totaled PKR 43.66Bn. In June alone, the PRA set a new revenue record as it received PKR 7.45Bn in the month. Tribune - Sun. GBP, 1-Jul-16, 139.6 145 20% 10% 20.39% LSM constituent growth during Jul'15-Apr'16 (%) 15.47% 7.66% 10.39% 8.13% 9.42% 6.29% 1.83% 0.56% 0.10% -1.75% -10% -3.45% -20% -30% -8.94% -13.98% -40% -50% -60% -60.01% -70% Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained herein have been compiled or arrived at based upon Dar invites SAARC FMs to August 26 meeting information obtained from sources believed to be reliable and in good faith. Such Finance Minister Ishaq Dar has extended invitation to his counterparts in South Asian countries to attend the 8th finance information has not been independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is ministers’ meeting of the South Asian Association for Regional Cooperation (Saarc), scheduled to be held on 26th Aug, stated to enrich the readers' understanding of the news item. The 2016. Tribune – Mon.