Pakistan Daily Economy Update - 4 October

Transcription

1. Oct . 4, 2017 KCCI - eBulletin Export package: PM tells ministry to submit refined, finalized proposals to ECC The proposals of Commerce Ministry, regarding PKR 180Bn export package, failed to get approval of Prime Minister who directed the ministry to submit the refined and finalized proposals to the ECC of the Cabinet. The differences among ministries on the quantum of package’s amount involved in it is one of the reasons for delay in its finalization. Similarly, Finance Ministry was not taken on board before taking the proposals to the last meeting of the ECC. Hence the ministry had no idea as to how much funds would be required for expansion of the package. BR. Global treaties with 104 countries: FBR to have access to foreign financial details of nationals Pakistan will be able to get access to foreign financial details of its nationals from 104 countries under global treaties on Automatic Exchange of Information (AEOI) by Sept.’18. The AEIO was an initiative of OECD members and Pakistan has committed to starting exchange of information of financial accounts on automatic basis. All activities and transactions in the AEOI Centre would be monitored and recorded and only the designated officers would have access to the information in the AEOI Centre of FBR Headquarters. BR. WB agrees to finance Yellow Line, revive transport dept The World Bank (WB) has agreed to provide financial and technical support to establish Yellow Line - part of the bus rapid transit system (BRTS) in Karachi. The WB has also agreed to provide expertise and technical support to establish the integrated BRTS of different lines in the city. However, the WB country chief said that WB is ready to finance Yellow Line if the provincial government develops its road infrastructure from Dawood Chowrangi to Malir Expressway, to which CM Sindh said that rehabilitation of the road has already been approved under the PKR 12Bn Karachi Package. CM Sindh also informed the meeting that he had a plan to revive the Karachi Water & Sewerage Board (KWSB). The WB country chief agreed to the proposal and said he would develop sewerage system of the city if the water board is rehabilitated. Daily Times. FBR launches audit of WHT collected by banks FBR has launched an audit of general ledger accounts to verify the amount of withholding tax collected and deposited by banks. The FBR is of the view that the banks are not depositing the due amount collected under different heads of withholding taxes, especially after the introduction of different withholding tax rates applicable for filers and non-filers. The News. Auto development policy marred by slow progress The govt.'s Auto Development Policy (ADP) 2016-18 has not yet started to deliver due to slow progress in establishment of new assembly plants in the country attributed to "uncertain" status of Engineering Development Board (EDB). At least four companies have been granted Greenfield status of which two have signed agreements with the Pakistan Govt. The representatives of the three companies suggested different measures to discourage black marketing and on-money; and accused local banks of being involved in on, money through sale of cars to their clients. BR. Poorer countries’ remittances to grow again in 2017: World Bank The World Bank has said that remittances, a major source of revenue for the world's poorest countries, are due to grow again this year after falling two years in a row. Such cash transfers to low and middle-income countries are on course to rise by 4.8% in 2017, reaching $ 450Bn. According to a World Bank report, economic expansion in Russia, Europe and the US will see migrants and families send increasing amounts of cash back to Sub-Saharan Africa, Europe, Central Asia, Latin America and the Caribbean. But growth will be subdued for East Asia and South Asia, home to major recipient countries. BR. Nepra describes load-shedding data as unauthentic Nepra has accused K-Electric and power Discos of showing the worst ever performance in FY16 which is evident from volume of Transmission and Distribution (T&D) losses amounting to PKR 132Bn and phony data of losses and recovery. Nepra has declared load shedding data of K-Electric and Discos for the year FY16 unauthentic as compared to FY12, FY13, FY14 and FY15. Nepra has already initiated strict action against such fake reporting by the distribution companies and is trying to bring them within the frame work of compliance of Performance Standards based on facts. BR. Power Division asked to finalize 600MW plant deal with Russia The federal cabinet has authorized the Power Division to negotiate the draft framework agreement with Russia for the construction of 600-MW natural gas combined power plant at Jamshoro. In a meeting presided over by PM Abbasi, the power division was directed to bring the agreed version of the agreement before the cabinet. In addition, it has been asked to finalize the loan’s terms and conditions in consultation with the economic affairs and finance divisions. Dawn. \ Finland ready to help Pakistan in renewable energy, other fields In a meeting with business community, Finnish Ambassador has said that Finland is a developed country with advanced technology and it is ready to cooperate with Pakistan in health, education, clean technology, renewable energy, water management, waste to energy solutions and many other fields. The Ambassador further said that to realize these objectives, facilitating regular interactions between the private sectors of Finland and Pakistan is essential. The Nation. Cement sales set quarterly record of 10.35Mn tons Cement dispatches in 1QFY18 stood at 10.34Mn tons which is the highest ever. The industry operated at 88% installed capacity. Of the 10.35Mn tons, the North Zone dispatched 7.52Mn locally, up 23%. The region during this period exported 0.95Mn tons which was 7.41% less than the same period last year when exports stood at 1.02Mn. Comparatively, South Zone dispatched 1.53Mn showing a jump of 17.76%. Its exports remained 0.33Mn tons, down 35.22%. Dawn. Urea maker’s demand revised export policy Fertiliser manufacturers have demanded a change in the urea export policy to get rid of the accumulating yearly surplus stocks. The fertilizer manufacturers have said that the current urea export policy has several flaws in it and the council has repeatedly urged the government to review and make strategic changes in this policy in order to facilitate the surplus urea inventory. They claimed that 0.6Mn tons of urea accumulated each year because of the gap between production and domestic consumption and SBP has given a very ‘tight timeline’ to export the surplus by Oct’17 end with a penalty of 15% of the export-price in case of failure to export the commodity within the deadline. Dawn. Pakistan needs $ 40Bn to reduce sensitivity to climate change threats: ADB ADB has pin pointed in a report, that a strong institutional setup in the country to improve its access to global climate finance. Pakistan will need approximately $ 40Bn in funds to achieve the desirable level of greenhouse gas emissions during the next one and half decade. ADB said Pakistan is one of the countries that are most vulnerable to climate change effects, including catastrophic floods, droughts and cyclones. The News. ADB okays two debt financing projects worth $ 210Mn ADB is actively processing over $ 500Mn of LEAP debt and equity transactions for private infrastructure development in Asia-Pacific region, which also includes potential projects from Pakistan. Leading Asia’s Private Infrastructure Fund (LEAP) is one of the ADB’s cofinancing vehicles dedicated to private sector infrastructure in Asia and the Pacific. ADB expects these initial projects will generate about $ 1.4Bn in total financing, including $ 264.5Mn from ADB’s own capital and an additional $ 890Mn from co-financing partners. Dawn. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (NO'17) List of Indicators 3-Oct 3-Oct 3-Oct 3-Oct 3-Oct PKR PKR Pts. $ Mn $/bbl 105.42 106.40 41,116 1.22 50.16 0.00% 0.09% -2.15% NM** -0.79% Gold (NO'17) Gold (10g) Local Silver (NO'17) Cotton(KHI)-40 kg Kibor-6M 3-Oct 3-Oct 3-Oct 3-Oct 3-Oct $/oz PKR $/oz PKR % 1,272.1 44,528 16.62 6,430 6.17% 22-Sep $ Bn 20.05 0.02% -0.19% 0.27% 0.00% 0.00% WoW -0.24% YoY 13.18% 11.80% 24.85% -33.52% -102.10% 154.74% Forex Reserves Jul-Aug 17 Remittances $ Bn 3.50 Jul-Aug 17 Exports* $ Bn 3.50 Jul-Aug 17 Imports* $ Bn 9.79 Jul-Aug 17 Trade Balance* $ Bn -6.29 Jul-Aug 17 Current Account $ Mn -2,601 Foreign Direct Inv. $ Bn 0.46 Jul-Aug 17 Jul-17 LSM Growth* % 12.98 % 3.39 Jul-Sep 17 Avg. CPI-FY18* Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 3-Oct-17, 139.7 145 135 125 EUR, 3-Oct-17, 123.8 115 105 95 Oct-16 USD Jan-17 GBP EUR Apr-17 USD, 3-Oct-17, 105.5 Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "We cannot advance without new experiments in living, but no wise man tries every day what he has proved wrong the day before." James Truslow Adams Chart of the Day 12 Pakistan's Average Inflation & Policy Rate (3MFY13-3MFY18) 10 8 6 4 2 0 3MFY13 3MFY14 Real Interest Rate (%) 3MFY15 3MFY16 Policy Rate (%) 3MFY17 3MFY18 Average Inflation (%) Source: KCCI Research, SBP, PBS 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