Pakistan Daily Economy Update - 5 July

Transcription

1. Jul . 5, 2017 KCCI - eBulletin Refund payments to start on The govt. is going to start disbursing money against customs rebate and sales tax refunds on Jul. 10, 2017 where payments will be made of outstanding refunds of up to PKR 1Mn initially. Higher amounts will be disbursed after Jul. 15, 2017. The objective is to clear all outstanding refunds by Aug. 14, 2017 against Release Payment Orders (RPOs) issued so far. The outstanding payment against issued RPOs is estimated to be around PKR 50Bn. Dawn. Economic Indicators 10th Banking transactions of non-filers: FBR to charge 0.4% WHT up to Sept. 30, 2017 FBR will continue to charge reduced rate of 0.4% withholding tax from earlier 0.6% on banking transactions of non-filers up to Sept. 30, 2017. According to SRO 602(1)/2017, the FBR has granted extension of reduced withholding tax rate for nonfilers under section 236P of the Income Tax Ordinance, 2001. BR. Pakistan’s import duties 4 times higher than global average Consumers in Pakistan face customs duty rates nearly four times more than the global average, making goods more expensive, says to a new study by UHY, an international accounting and consultancy network. The study found that customs duties in Pakistan average 7% of the total value of imported goods, whereas the global average in this regard is 1.8 %of the total value. UHY studied customs duties levied by 22 economies around the world as a percentage of the total value of their imports, as a simple indicator of the impact of a country’s trade barriers. The News. Chinese experts to visit CPEC Special Economic Zone sites Chinese experts are due in Pakistan in a few days to crystallize their investment plans for Special Economic Zones (SEZs) of the CPEC. In this regard, a preparatory meeting reviewed the investment plans and availability of land and infrastructure. However, Planning Minister Ahsan Iqbal has found presentations made by the provincial govt. unimpressive to attract Chinese investment and asked them to come up with marketable schemes to make them easy to understand and more attractive to investors. Dawn. PM may discuss stalled TTTA during visit to Tajikistan On his visit to Tajikistan from Jul. 5 – 6, 2017, Prime Minister Nawaz Sharif is expected to discuss Trilateral Transit Trade Agreement (TTTA) between Pakistan, Afghanistan and Tajikistan which has been stalled due to Afghanistan's insistence to include India, making it a quadrilateral agreement. Tajikistan is hosting a Quadrilateral Summit of CASA-1000 member states, namely Afghanistan, Kyrgyzstan, Pakistan and Tajikistan. This project aims at developing an energy corridor, as well as land connectivity between Tajikistan, Afghanistan and Pakistan. BR. World Bank’s disbursements stand at $ 958Mn, below expectation The World Bank has disbursed $ 958Mn in loans FY17, an amount that falls short of Pakistan’s expectations due to the multilateral lender’s decision against giving another half a billion dollars for energy sector reforms. The lender also gave $ 200 Mn less than Pakistan’s demand under the programme of Fiscally Sustainable Inclusive Growth Development Policy Credit. However, there were some projects where disbursements remained higher than budgetary estimates like Tarbela-IV extension project. Tribune. PIBT begins commercial operations Pakistan International Bulk Terminal (PIBT) has completed its terminal at Port Qasim and formally commenced commercial operations, according to material information sent to Pakistan Stock Exchange (PSX). BR. Hybrid vehicles: complaint filed against Dar for changing tariff Mercedes Benz has lodged a written complaint against Finance Minister Muhammad Ishaq Dar for changing the tariff on hybrid vehicles by withdrawing duties and taxes concession on hybrid cars above 2500cc. The complaint, made to the Board of Investment by CEO of Mercedes Benz, maintains that the change in tariffs has had a direct negative impact on 37 vehicles that were ready for shipment from Germany; the change is not only against Auto Development Policy (ADP 2016\ 2021) but it is also detrimental to the consumer interests and will not yield any additional revenue. BR. List of Indicators Oil, gas exploration activities up by 79% Pakistan witnessed an increase of around 79% in oil and gas exploration activities in different potential areas since 2013 as compared to the preceding 4 year period. New initiatives resulted in drilling of 179 exploratory wells and 194 appraisal/development wells by different E&P companies. Subsequently, 98 new oil and gas discoveries were made with 40% success rate. Over PKR 836Bn investments had poured in E&P sector of the country since 2013. Tribune. Govt plans to enhance meat production The government has set a target to produce about 6.26 Mn tons of meat during FY18 in order to fulfil domestic meat requirements, an increase of 13.89%. Beef production target has been fixed at 2.16 Mn tons (increase of 9.74%) while 717,000 tons of mutton would be produced by enhancing the existing production capacity by 5.88%. Tribune. Unit Value Change Daily 4-Jul 4-Jul 4-Jul 4-Jul 4-Jul 4-Jul 4-Jul 4-Jul 4-Jul 4-Jul PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.90 104.90 45,394 7.03 46.75 1,222.6 42,875 16.02 6,484 6.15% 23-Jun $ Bn 21.36 0.00% 0.02% 1.63% NM** -0.53% 0.29% -0.55% -0.30% -0.81% 0.00% WoW 4.90% YoY -2.13% -3.13% 20.60% -42.12% -177.56% Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-May 17 Remittances $ Bn 17.46 Jul-May 17 Exports* $ Bn 18.54 Jul-May 17 Imports* $ Bn 48.54 Jul-May 17 Trade Balance* $ Bn -30.00 Jul-May 17 Current Account $ Mn -8,929 % 4.16 Avg. CPI-FY17* Jul-Jun 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 Jul-16 GBP, 4-Jul-17, 135.7 EUR, 4-Jul-17, 119.1 USD, 4-Jul-17, 104.9 Oct-16 USD Jan-17 GBP Apr-17 Jul-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "If you work really hard and you're kind, amazing things will happen." Conan O'Brien Solar panels exempted from duties till Jun. 30, 2018 FBR, through its Customs General Order (CGO) 4 of 2017, has exempted solar panels from all duties and taxes by declaring them status of ''non-manufactured locally'' till Jun. 30, 2018. BR. Foreign shareholdings: SECP unveils reporting requirements SECP has issued SRO 546(I)/2017 with regard to details of reporting requirements for substantial shareholders/officers having shareholdings in foreign companies or body corporate under provisions of section 452 deals of Companies Act 2017 which deals with the Companies' Global Register of Beneficial Ownership. According to the details, every substantial shareholder or officer, having shareholding in a foreign company, shall report to the company his shareholding or any other interest as may be notified by the commission on a specified form within 30 days of holding such position or interest. The notification of particulars of beneficial ownership to the company would cover CUIN (incorporation number), name of company, particulars of substantial shareholder/ officer and beneficial ownership. BR. Date / Period USD-Interbank USD-Open MKT KSE-100 index FIPI Chart of the Day Average Yearly CPI Inflation (FY00-FY17) 20% 17.0% 13.7% 14% 12.0% 9.3% 10.1% 7.9% 8% 4.4% 3.6% 3.5% 7.8% 4.6% 3.1% 11.0% 8.6% 7.4% 4.5% 4.2% 2.9% 2% Values in % Source: KCCI Research, 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 Pakistan Post launches cash on delivery service sources believed to be reliable and in good faith. Such information has not been Pakistan Post office has launched “Cash On Delivery Service” (UMS-COD) in order to satisfy customers in all parts of the independently verified. country with varying levels of access to different payment systems. The service will be available in 226 cities and towns 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 linked with Unified Messaging System (UMS) network. Tribune. accuracy. Contact: res@kcci.com.pk