Pakistan Daily Economy Update - 6 August

Transcription

1. Aug . 06, 2016 KCCI - eBulletin U.S. decision to worsen fiscal deficit The fiscal deficit budgeted for FY17 is likely to rise by 0.1% of GDP after the U.S. blocked outstanding $ 300Mn military reimbursement under the Coalition Support Fund (CSF) to Pakistan. The govt. has budgeted PKR 170Bn inflows on account of CSF for FY17. For FY17, the govt. has targeted budget deficit at 3.8% compared to 4.6% last year. The current account registered a $ 2.53Bn deficit during FY16 compared with $ 2.71Bn in FY15, reflecting a decline of 6.7% or $ 184Mn. BR. FTA talks with Turkey: Pakistan wants cut in customs duty on 35% of tariff lines Pakistan has proposed a tariff reduction plan under the Turkey-Pakistan Free Trade Agreement that calls about immediate elimination of custom duties on 35% of tariff lines amid steady progress in talks for early finalization of the deal. According to the proposal, under the fast track category, tariffs may be brought down to zero on 35% of the tariff lines. The international trade experts argue that the 1st phase of trade liberalization should be crafted by keeping in mind factors like mutual advantages and impact on local industries. Tribune. Pakistanis splash out PKR 85Bn on Dubai property in 6 months Pakistanis bought property worth 3Bn United Arab Emirates (UAE) dirhams (around PKR 85Bn) in Dubai during the first half of this year, just behind Indians and Britons who plunked down 7Bn and 4Bn dirhams, respectively. In the last two-and-a-half years, Pakistanis have invested over 18Bn dirhams (PKR 512Bn) in Dubai realty market. Dawn. CNG to be sold in liters, not kgs, in Sindh from Aug. 6, 2016 The CNG dealers have unilaterally converted sale of CNG, which was earlier being sold in kilograms, in liters in Sindh province from Aug. 6, 2016 (today), without taking consent from any competent authority. According to the CNG dealers, OGRA has nothing to do with gas prices determination or converting its sale in liters or kilos, as its 2009 ordinance has already expired. On the other hand, OGRA has expressed serious concern over the association’s unilateral decision and termed it totally illegal. The Nation. Stranded Pakistanis in Saudi Arabia: Prime Minister approves PKR 500Mn compensation Prime Minister Nawaz Sharif has approved compensation money of PKR 50,000 for each family of the stranded Pakistanis in Saudi Arabia. The Prime Minister has approved a total amount of PKR 500Mn to be distributed amongst the families of ten thousands stranded Pakistanis. The Prime Minister has directed the Ministry of Overseas Pakistanis & Human Resource Development to prepare authenticated lists of the concerned families at the earliest possible. Over 8,000 Pakistani migrant workers employed by two Saudi companies, Saad Trading and Contracting Company in Al Khobar and the Saudi Oger Ltd. in Dammam; have neither been paid nor have received their end-of-service benefits for at least two months with resident permits of many workers not renewed by the firms. BR. Banking transactions 0.4%: WHT applicable till Aug. 31, 2016 FBR has notified that the concessionary rate of 0.4% withholding tax on banking transactions of non-filers would be applicable till Aug. 31, 2016. In this regard, the FBR issued SRO. 720(I)/2016. The rate of tax withholding u/s 236p of the Income Tax Ordinance 2001 has been reduced to 0.4% from 0.6% on bank transactions for another month up to Aug. 31, 2016. BR. Economic Indicators Date / Period Unit Value USD-Interbank List of Indicators 5-Aug PKR 104.63 0.06% USD-Open MKT 5-Aug PKR 104.62 -1.30% KSE-100 index FIPI 5-Aug 5-Aug Pts. $ Mn 39,390 3.90 -0.14% NM** Crude (JU'16) 5-Aug $/bbl 41.70 -0.31% Gold (MY'16) 5-Aug $/oz 1,358.0 -0.12% Gold (10g) Local 5-Aug PKR 45,942 -1.07% Silver (MY'16) 5-Aug $/oz 20.35 -0.21% Cotton(KHI)-40 kg 5-Aug PKR 7,272 0.75% Kibor-6M 5-Aug % 6.02% 0.00% Forex Reserves 29-Jul $ Bn 22.98 -0.08% Remittances Jul-Jun 16 $ Bn 19.90 7.84% Exports* Jul-Jun 16 $ Bn 20.80 -12.11% Imports* Jul-Jun 16 $ Bn 44.76 -2.33% Trade Balance* Jul-Jun 16 $ Bn -23.96 -8.13% Current Account Avg. CPI-FY17* Jul-Jun 16 Jul-16 $ Mn % -2,525 4.12 6.79% WoW YoY Jul-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 175 165 155 GBP, 5-Aug-16, 136.9 EUR, 5-Aug-16, 116.1 145 135 125 115 105 95 USD, 5-Aug-16, 104.5 85 75 Aug-15 Govt. allows 0.9Mn tons exports The country’s wheat production is projected at 25.13Mn tons in 2016 against the projected consumption of 24.5Mn tons, leaving a surplus of 0.7Mn tons. Moreover, the govt. holds a last two-year leftover stock of around 0.8Mn tons. The govt. has allowed exports of 0.9Mn tons of wheat with PKR 11Bn subsidies to circumvent the domestic price fall. The News. Regulations for rating firms Okayed SECP has accorded approval to Credit Rating Companies Regulations, 2016. A new regulatory regime has been introduced for credit rating companies (CRC) which is based on international best practices and has removed shortcomings in the existing regulatory framework. Dawn. Nov-15 USD Feb-16 GBP May-16 EUR Aug-16 Source: KCCI Research ; Oanda.com Quote of the Day "Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers you cannot be successful or happy. " FBR wins case against international software firm An international tribunal announced its final award, holding Kuwait based Agility for Public Warehousing Company liable to pay the entire costs incurred by Pakistan in defending a claim for more than $ 650Mn filed against the country by the Middle Eastern firm. The News. CDWP approves 8 projects worth PKR 36Bn The Central Development Working Party (CDWP) has prioritized higher education, and approved eight projects worth about PKR 36Bn, which include PhD scholarship program under the US-Pakistan Knowledge Corridor, establishment of university sub-campuses in districts and AJK Women University. BR. Change Daily Norman Vincent Peale Chart of the Day Pakistan's Export of Oil Products (Mn Tons) FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY07 FY06 FY05 0.65 0.85 0.65 0.73 0.79 0.67 0.73 0.73 - 0.2 Mogas 0.4 Naptha 0.6 0.83 0.97 0.95 0.92 0.8 1.0 1.2 Source: KCCI Research ; OCAC Disclaimer NPLs of housing finance fall by 5% in 1QCY16 The Non-Performing Loans (NPLs) of housing finance fell by some 5% during 1QCY16. According to State Bank of Pakistan (SBP), NPLs of housing finance decreased to PKR 12.63Bn as on Mar. 31, 2016 compared to PKR 13.28Bn as on Dec. 31, 2015, depicting a decline of 4.9% or PKR 650Mn. During the period under review, NPLs for Islamic Banking Industry (IBI) posted a decrease of 9.4% or PKR 170Mn over the previous quarter. BR. 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