Pakistan Daily Economy Update - 5 August

Transcription

1. Aug . 5, 2017 KCCI - eBulletin PM spells out priorities Prime Minister Shahid Khaqan Abbasi has said that continuation of all ongoing power projects, revival of economy and establishment of peace in the country are his top priorities. While chairing the maiden cabinet meeting, the PM stated that all the projects, including CPEC and power projects, would be implemented in letter and spirit for prosperity and development of the country as well as to end load-shedding. BR. Power-Petroleum Minister gives birth to Energy Ministry Prime Minister Shahid Khaqan Abbasi has constituted Energy Ministry with two constituent Divisions - Power Division and Petroleum Division - as well as some other new ministries with constituent divisions. The Prime Minister would be heading the Energy Ministry. The purpose of consolidating the energy-related ministries into one ministry is to expedite decisionmaking process and achieve better performance. Similarly, Ministry of Commerce & Textiles has also been formed which will have two constituent divisions including Commerce Division and Textile Division.. Another new federal ministry has been created with the name of Ministry of Water Resources with one constituent division — Water Resource Division. BR/Dawn. New Commerce minister vows export turnaround The newly-appointed Commerce and Textile Minister, Pervaiz Malik has said that he would use all his energies, along with his team, to turn the country's exports around and attract new investment through improving business viability. The Minister further said that govt. would not hesitate in taking all appropriate measures aimed at expediting the finalization of PTAs and FTAs, adding that FTAs with Turkey and Thailand are at an advanced stage and would be concluded as early as possible. BR. Pakistan, GCC plan third round of FTA talks Pakistan is committed to finalizing a free trade agreement (FTA) with the Gulf Cooperation Council (GCC) in a bid to step up trade volumes between the two sides. A text of the initial FTA framework had been agreed with the GCC and the third round of negotiations would start after conclusion of a ministerial level meeting of the GCC countries at the end of Aug’17, to be presided over by Bahrain. Tribune. WB projects 5% growth The World Bank, in its report “South Asia country program Snapshots 2016", issued on Aug. 3, 2017 has revised estimates of GDP growth for Pakistan downward to 5% for FY17 and 5.4% for FY18. The WB in its report "Pakistan Development Update" issued on May 20, 2017 had projected that Pakistan's GDP growth in FY17 would be 5.2% - the highest in nine years - and will continue to accelerate reaching 5.5% in FY18 and 5.8% in FY19. BR. Non-resident Pakistanis: TIP urges PM to withdraw notification Transparency International Pakistan (TIP) has requested Prime Minister Shahid Khaqan Abbasi to immediately cancel/withdraw the notification (tax filing exemption to Non-resident Pakistanis) of staying six months outside Pakistan in a year to qualify as non-resident, which is a major cause of corruption. In this regard, TIP has also written a letter to the Supreme Court of Pakistan. These Non-Resident Pakistanis (NRPs), taking advantage of this rule, stay more than six months in a year outside Pakistan (though their businesses are in Pakistan), and transfer their Pakistani untaxed income by hawala to their bank accounts in the UAE. Corrupt public office holders also send their illegal earnings in Pakistan to their UAE accounts, and also take commission in foreign exchange in their accounts. Properties worth over $ 2Bn each year have been purchased by Pakistanis in the UAE in 2015 and 2016. BR. Another LNG terminal planned at Port Qasim The Engro Elengy Terminal Limited (EETL), in collaboration with Shell and Fatima Group, plans to construct another terminal at Port Qasim with a capacity to regasify up to 600 mmscfd, said its CEO. Further, the existing terminal is set to achieve a milestone with the receipt of its 100th LNG tanker, handling 6.1Mn tons of LNG since its commissioning, thereby bridging national natural gas deficit by 20-25% in the process. Tribune. Auto part manufacturers: Training programme enters second stage \ The Small and Medium Enterprises Development Authority (Smeda) and Japan International Cooperation Agency (Jica) have completed the first term of their three-year technical support programme for Pakistan’s automotive part manufacturers. Titled Paapam Skill Development Programme, the programme was carried out for 20 auto part manufacturers, and companies included in the programme are now eligible to train other members by transferring knowledge. Tribune. Income defined in NBFC law SECP has amended the Non-Banking Finance Companies and Notified Entities Regulations 2008, adding the meaning of income in the law. The amendment includes insertion of a new clause defining the ‘Element of Income’ — the difference between net asset value on the issuance date and the net asset value at the beginning of relevant accounting period — a definition of income which was absent in NBFC units’ regulations earlier. Similar amendments have been made in other clauses of the regulations to define the income of an asset management company. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M 4-Aug 4-Aug 4-Aug 4-Aug 3-Aug 3-Aug 4-Aug 3-Aug 4-Aug 4-Aug PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.40 107.00 46,877 -5.91 48.95 1,270.3 43,542 16.64 6,859 6.15% Forex Reserves 28-Jul $ Bn 20.28 0.00% 0.09% -0.44% NM** -1.21% 0.19% 0.00% 0.48% 0.79% 0.00% WoW -0.57% YoY -3.08% -1.63% 18.67% -36.32% -148.57% 4.58% USD-Interbank USD-Open MKT KSE-100 index FIPI Jul-Jun 17 Remittances $ Bn 19.30 Jul-Jun 17 Exports* $ Bn 20.45 Jul-Jun 17 Imports* $ Bn 53.03 Jul-Jun 17 Trade Balance* $ Bn -32.58 Jul-Jun 17 Current Account $ Mn -12,098 Foreign Direct Inv. $ Bn 2.41 Jul-Jun 17 Jul-May 17 LSM Growth* % 5.69 % 2.91 Jul-17 Avg. CPI-FY17* Discount Rate % 5.75 Jul-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 145 GBP, 4-Aug-17, 137.3 135 125 EUR, 4-Aug-17, 124.5 115 105 Nov-16 GBP EUR Feb-17 May-17 Aug-17 Source: KCCI Research ; Oanda.com Quote of the Day "There is nothing deep down inside us except what we have put there ourselves." Richard Rorty Chart of the Day 7,000 ADVANCES OF SCHEDULED BANKS (PKR Bn) 6,027.6 6,000 5,000 CPEC may be hit by Nawaz’s ouster, says Chinese expert Lan Jiang, a Chinese expert while writing in the state-backed Global Times has admitted that the recent political developments in Pakistan would affect the CPEC because some "variable factors" would come into play. He also expressed concern that some part of CPEC project might come under investigation and face uncertainties if the ruling party loses the next election in 2018. The News. 4,000 Mayor urges new PM to announce Karachi uplift package Karachi Mayor has appealed to newly elected PM Mr. Abbasi to play his due role and invest more funds for the uplift of Karachi. After reviewing cleaning of various drains in Baldia Town, he said the sprawling metropolis had been feeding the country for the past 70 years at the cost of its own resources and development, and now it is high time that the country reciprocates with equal compassion and commitment. Dawn. 1,000 Cement dispatches grow 45% The current fiscal year started on a positive note for the cement sector, which recorded a 45% jump in dispatches in Jul‘17. Local sales of 2.9Mn tons and exports of 0.46Mn tons grew 55% and 2.3%, respectively. Capacity utilization in July stood at 86%. Dawn. USD, 4-Aug-17, 105.2 95 Aug-16 USD 3,316.0 3,417.9 3,702.1 3,787.9 4,240.1 4,579.8 5,116.1 3,000 2,000 0 Jul'10 Jul'11 Jul'12 Jul'13 Jul'14 Jul'15 Jul'16 Jul'17 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 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