Pakistan Daily Economy Update - 6 February

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1. Feb . 6th, 2017 KCCI - eBulletin Nepra evaluates 10 distribution companies performance Nepra in its latest performance evaluation report assessed performance of Pakistan's based distribution companies on the data as reported by them for the year 2014-15. Lesco secured first position owing to its plausible performance in losses, recovery, & time frame for new connection as reported by it in its Annual Performance Report (APR). Whereas, Sepco remained at last (10th) position due to its poor performance primarily in the segments of losses & time frame for new connections. Similarly K-Electric, Pesco, Hesco & Qesco have acquired 6th, 7th, 8th & 9th positions respectively. Daily Times Mon. Jul-Dec 16 Remittances $ Bn 9.46 Jul-Dec 16 Exports* $ Bn 9.91 Jul-Dec 16 Imports* $ Bn 24.40 Jul-Dec 16 Trade Balance* $ Bn -14.49 Jul-Dec 16 Current Account $ Mn -3,585 % 3.85 Avg. CPI-FY17* Jul-Jan 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 Feb-16 GBP, 5-Feb-17, 130.1 EUR, 5-Feb-17, 112.4 USD, 5-Feb-17, 104.2 May-16 USD Aug-16 GBP Nov-16 Feb-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day “When people complain of your complexity, they fail to remember that they made fun of your simplicity.” Michael Bassey Johnson Chart of the Day 784,557 770,967 601,897 529,161 475,493 381,893 500,000 325,521 1,000,000 309,501 1,500,000 1,923,074 2,000,000 1,804,774 Top 10 Export Destinations of Pakistan 2,500,000 307,932 Sindh to sign contract with Punjab Govt’s subsidiary for survey of property units The Sindh government will shortly sign a PKR 72Mn contract with a Punjab government’s subsidiary company for the provincewide survey of property units to bring untaxed units into the net. The survey to begin from Sukkur this month involves satellite imageries of commercial and housing units. The mapping of the city through the GIS system will follow a door-to-door survey of the property units. It is expected to boost the government revenue from property tax from existing PKR 2Bn to PKR 5Bn per annum. Dawn - Mon. 22.44 0 Value in $ US Mn 6MFY16 Italy Netherlands Bangladesh Spain UAE Afghanistan Germany China U. K. U. S. A. CCP initiates proceedings against online shopping platform While declaring 'Return Policy' as most crucial aspect of online buying, the Competition Commission of Pakistan (CCP) has initiated proceedings against a renowned platform for online shopping in Pakistan for alleged involvement in deceptive marketing practices. The variety of products available on their website includes electronics, shoes, clothes, jewelry, cameras, etc. BR - Sun. $ Bn 1,028,214 WHO and FBR working on proposals relating to tobacco taxation World Health Organization (WHO) and FBR are jointly working on proposals relating to tobacco taxation, Federal excise duty (FED) assessment on cigarettes and control of illicit tobacco trade in Pakistan. In this regard, a WHO mission would visit Pakistan on Mar. 20, 2017 in order to review tobacco taxation situation in Pakistan and conduct two-day training on tobacco taxation. BR - Mon. 27-Jan 822,614 PSM liabilities: CCoP seeks more details Cabinet Committee on Privatisation (CCoP) has sought further details of Pakistan Steel Mills (PSM) liabilities prior to proceeding with sell off/ leasing plan. In this regard, Privatisation Commission has already held talks with an Iranian group and a Chinese group along with a Pakistani concern (M/s Siddique Sons). PSM has suffered provisional losses of PKR 4.09Bn during the 1QFY17 with accumulated losses were amounted to PKR 167.32Bn whereas total liabilities were PKR 177.78Bn. BR - Mon. Forex Reserves 643,568 Govt. urged to promote value-addition in agriculture sector The local businessmen have urged the govt. to promote value-addition in agriculture sector that has the potential to help achieving $ 35Bn exports within the next two years. They said that off-season fruits and vegetables have a high demand in certain regional markets and that there is a need to adopt latest technology for enhancing exports of these high-value products. They further said country’s organic and Halal foods could also make inroads into global market. The News - Sun. Crude (FE'17) Gold (JA'16) Gold (10g) Local Silver (JA'17) Cotton(KHI)-40 kg Kibor-6M -0.01% -0.09% -0.22% NM** 2.16% 1.86% 0.00% 1.90% 0.00% 0.00% WoW -3.49% YoY -2.27% -3.82% 10.10% -22.20% -92.23% 614,752 ‘Economic turnaround to attract US investment’ Planning Minister Ahsan Iqbal has said that Pakistan’s vibrant economic environment should be taken as investment opportunities for the U.S. investors and companies. While addressing an event hosted by the United States Institute of Peace, the Minister further said the international credit rating agencies positively registered the country’s economic turnaround, which is inviting ‘significant investment’. The News - Sun. Change Daily 104.79 107.80 49,556 -1.27 53.83 1,219 43,028 17.46 7,218 6.13% 544,967 Russian Energy Minister due on Feb. 8, 2017 Russian Energy Minister will pay a visit to Pakistan on Feb. 8, 2017 to discuss and sort out the difficulties with Pakistani officials in the implementation of Karachi to Lahore gas pipeline. It may be recalled that the govt. had signed an agreement with Russian company in Sept.’15 for laying the pipeline to facilitate the supply of LNG gas in Punjab. BR - Mon. Value PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 367,940 Pakistan wants to sign fuel import pact with Azerbaijan Pakistan is poised to start oil and gas imports from Central Asian states as the Foreign Office has given the go-ahead to the signing of an agreement with Azerbaijan, in a move that will lessen Pakistan's excessive reliance on Middle Eastern countries. Azerbaijan has also expressed interest in constructing a terminal as well as LNG and LPG storages in a joint venture between Azerbaijan’s state oil company Socar and a Pakistan-designated company. The News - Mon. Unit 3-Feb 3-Feb 3-Feb 3-Feb 3-Feb 3-Feb 3-Feb 3-Feb 3-Feb 3-Feb 337,978 Murad demands right for provinces to collect sales tax Sindh CM Mr. Murad has said that the provincial governments were ‘very close’ to the consumers, therefore, they should have the right to collect sales tax on goods. He said that the collected amount may be distributed by the federal government amongst the provinces as per their shares. Dawn - Sun. Date / Period 298,102 Pakistan to start civil work on TAPI by end of this year Federal Minister for Petroleum and Natural Resources has said that a delegation comprising officials of the Dubai-based TAPI Ltd is set to reach Islamabad this month to sign various agreements and contracts for the project. He further said that this project is already on hold for the last couple of years after the US imposed sanctions on Iran. Dawn - Sun. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 267,351 Pakistan's net public debt crosses PKR 18Tn mark Pakistan’s net public debt has crossed the PKR 18.28Tn mark, rising about 35% during the tenure of current government. Total public debt stood at PKR 13.48Tn at the end of FY13. The major increase in net public debt is due to 40% rise in domestic debt, which rose from PKR 8.68Tn in FY13 to PKR 12.14Tn 1QFY17. In the same period, foreign debt posted an increase of 28% and went from PKR 4.79Tn to PKR 6.14Tn during the said period. Explaining the reasons behind the surge, the finance ministry said that public debt was mainly obtained to finance the fiscal deficit and was approved by the parliament. Dawn - Mon. Economic Indicators Netherlands Italy Bangladesh Spain UAE Germany Afghanistan U. K. China U. S. A. FBR gears up to check tax evasion in Benami transactions FBR is geared up to crack down on individuals who manage to evade taxes on their unreported transactions as Benami law is soon to empower it to take legal recourse against the actual beneficiary. In this regard, FBR had detected 5.6Mn transactions till Jun.’16 and had already served around 0.46Mn notices against these transactions however it was found in most of the cases the real beneficiary was someone else. The News - Sun. 6MFY17 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