Pakistan Daily Economy Update - 4 March

Transcription

1. Mar . 4, 2017 KCCI - eBulletin PSX receives PKR 8.96Bn as sale proceeds of 40% stake PSX has received PKR 8.96Bn ($ 85Mn) from the Chinese group who acquired 40% strategic equity stake in the bourse. The buyers will be delivered 320Mn (40%) shares of the PSX through placement in their CDC account. Each brokers would receive PKR 40Mn as his share of the proceeds received. The transfer of money against the PSX shares has closed the landmark deal for the demutualization of the exchange. Dawn. Pakistan, Iran central banks’ deal on the cards SBP Governor has informed that an agreement between SBP and the Central Bank of Iran will be signed soon, allowing Pakistani and Iranian traders to settle their claims through the two central banks. He noted that a cabinet committee has already approved the agreement. Governor further said that the SBP has imposed a new cash margin requirement on the import of selected consumer items because the country is spending around $ 8.5Bn to bring in goods that are nonessential in many cases and already being produced locally. Dawn. FBR sees 1.5Mn active taxpayers in 6 months FBR has estimated that the number of active taxpayers will grow to 1.5Mn within 6 months following the launch of action against non-filers of annual income tax returns. The recently issued Active Taxpayers List (ATL) would remain applicable during the year until the issuance of the new ATL, contains the details of 1.01Mn return filers, who filed their returns for tax year 2016. The News. SBP says low interest rates could erode banks’ profits in Jan-March SBP has warned that soft interest rates scenario and a falling investment in the government papers could erode banks’ profits in the current quarter of 2017. The banking performance review for Oct-Dec 2016 showed profit of the banking sector dropped to PKR 190Bn for 2016 compared to PKR 199Bn a year ago. The News. India to attend Indus Waters Commission meeting in Pakistan India has agreed to participate in an annual meeting of the permanent Indus Waters Commission scheduled to be held in Pakistan this month. Delegations from both countries, led by their commissioners for Indus waters, will attend the meeting. The meeting is important because it recognized that the Indus Waters Treaty was intact despite aggressive statements by the Indian prime minister. Dawn. Alibaba delegation visits Islamabad Finance Minister Mr. Dar has told a delegation of Alibaba Group that Pakistan’s e-commerce sector has been doubling in size every year and is projected to surpass $ 1Bn in 2020. The delegation is visiting Pakistan following a meeting between PM Nawaz and Chairman Alibaba Mr. Jack on the sidelines of World Economic Forum. On the occasion, Mr Ma had expressed his intention to establish an e-commerce platform in Pakistan. The delegation members said a growing e-commerce market in Pakistan presented great opportunities for entrepreneurs and companies and the group would also like to benefit from them. Dawn. Auto show points to bright future ahead for sector Federal Minister for Industries and Production has said that announcement of the new auto policy in 2016 has attracted new foreign companies to Pakistan and the govt. hopes the momentum will continue in the current year as well. Speaking at the inauguration of the Pakistan Auto Show (PAPS) 2017, he said that power generation projects and special economic zones under CPEC are expected to play an important role in attracting Foreign Direct Investment (FDI) in Pakistan. The 3-day show is being held at the Karachi Expo Centre till 5th Mar’17. Tribune. Establishment of SPEZs under CPEC: provinces directed to complete feasibility reports In a meeting held to review progress on projects being implemented under the CPEC, Planning & Development Minister Ahsan Iqbal has directed all the provincial governments to complete their feasibility reports on establishment of Special Economic Zones under CPEC by Mar. 9, 2017. The Minister has informed that after preparation of final drafts, recommendations of the provincial govt. will be shared with the Chinese side by Mar. 31, 2017. BR. Gwadar southern centerpiece of China’s plan Deputy Consul General of China Dr Mu Youngpeng has reiterated his govt’s commitment to motivate the private sector to invest in industrial projects across Pakistan, particularly those that exist in the southern deep sea port of Gwadar. Mu said that the Chinese govt. offered tax incentives, free water and other free utilities to attract investment in the area despite, reservations from various circles. He reminded in meeting that the Chinese govt. has initiated infrastructure development with major focus on construction of roads, sea port development and building an airport in Gwadar. Tribune. Prime Minister inaugurates Kurram Tangi Dam project Prime Minister Nawaz Sharif has presided over a groundbreaking ceremony to mark the construction of the US-funded Kaitu Weir (Stage – I) component of the Kurram Tangi Dam project. In this regard, $ 81Mn have been provided by the U.S. govt. through USAID to WAPDA. After completion of the first stage, approximately 16,000 acres of land would be irrigated and will produce 18MW of hydropower. Specific work under Stage 1 includes the construction of a weir on the Kaitu River, excavation of the Shertalla and Spairaga canals, and the installation of two powerhouses and a transmission line. BR. PM invites China’s co to invest in PNSC, shipyard Prime Minister Nawaz Sharif has invited the China Shipbuilding Company to invest in collaborative projects with Pakistan National Shipping Corporation (PNSC) and Karachi Shipyard and take advantage of the liberal economic policies of the country. During the meeting with China Shipbuilding Company Chairman Xu Ziqiu, the Prime Minister further said that Pakistan’s investment policy has been designed to provide a comprehensive framework for creating conducive business environment for the attraction of Foreign Direct Investment (FDI). The Nation. Nepra to refund PKR 3.3086 per unit for Jan.’17 Nepra has notified refund of PKR 3.31/unit to the consumers of power Discos for Jan.’17 under monthly fuel adjustment mechanism instead of PKR 3.23/unit as previously announced at a public hearing. On Feb. 28, 2017, Chairman Nepra, had announced a refund PKR 3.23 per unit after disallowing some adjustments but the notified reduction is PKR 3.31 per unit.BR. Cotton output grows 3.6% Pakistan’s cotton production has reached 10.07Mn bales this season, showing a growth of 3.6% over the corresponding period of the last year. This is second consecutive season of short crop (cotton) against average annual production of around 13Mn bales. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (AP'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 3-Mar 3-Mar 3-Mar 3-Mar 2-Mar 2-Mar 3-Mar 2-Mar 3-Mar 3-Mar PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 107.50 49,624 -3.84 52.72 1,235 42,253 17.77 7,272 6.12% Forex Reserves 24-Feb $ Bn 21.82 0.33% 0.28% -0.15% NM** -1.93% -1.20% -3.34% -3.53% 0.00% 0.00% WoW -0.49% YoY -1.86% -3.21% 13.65% -28.68% -90.24% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Jan 17 Remittances $ Bn 10.95 Jul-Jan 17 Exports* $ Bn 11.69 Jul-Jan 17 Imports* $ Bn 29.11 Jul-Jan 17 Trade Balance* $ Bn -17.43 Jul-Jan 17 Current Account $ Mn -4,716 % 3.85 Avg. CPI-FY17* Jul-Feb 17 Jan-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 Mar-16 GBP, 2-Mar-17, 128.5 EUR, 2-Mar-17, 110.5 USD, 2-Mar-17, 104.9 Jun-16 USD GBP Sep-16 Dec-16 Mar-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Destiny is not a matter of chance – it is a matter of choice. It is not a thing to be waited for – it is a thing to be achieved." William Jennings Bryan Chart of the Day Car Sales in Pakistan 15,000 13,000 11,000 9,145 9,523 9,000 7,000 5,000 4,002 3,000 1,000 5,108 5,544 3,015 Honda Figure in Units Suzuki Jan'17 Jan'16 Toyota Source: KCCI Research, PAMA 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