Pakistan Daily Economy Update - 6 February

Transcription

1. Feb . 4-6, 2018 KCCI - eBulletin Ninth round of CPFTA-II in hot water The 9th round of China-Pak Free Trade Agreement-II (CPFTA-II), being negotiated in Beijing, China, from Feb. 5 - 8, 2018, is in hot waters as both sides are not ready to change their respective positions on Tariff Reduction Modalities (TRM). During 2nd phase negotiations Pakistan side is focusing on adjusting the concerns on the products suffered during the 1st phase. In this regard it was earlier agreed that 2nd phase negotiation would be done on less than equal reciprocity principle in favor of Pakistan. During 8th round, Pakistan requested for meaningful market access and an end to the preference erosion of Pakistani exports. BR – Tue. Electricity consumers: MoF seeks data to broaden tax base Finance Ministry has sought electricity consumers' data from Discos, aimed at identifying individuals with taxable income who are still outside the tax net. The Ministry has sent a letter to Power Division and sought help in this regard. The total number of electricity consumers in Pakistan is around 25Mn including in Karachi. With a view to give further impetus to these efforts, PM Abbasi has desired that the database available with the various public sector organizations and entities may be shared with NADRA. BR – Tue. Sindh slaps 15% sales tax on inter-provincial POL supplies The Sindh government has fixed a 15% service sales tax on tankers supplying petroleum, oil and lubricant (POL) products outside the province, keeping exemption intact for some territories. However, sales tax on service is 13% if supply is made within the province. The News-Sun. Despite targeting new areas, top 10 tax contributors remain same Despite expanding the withholding tax to cover every imaginable transaction, top 10 contributors to the tax have remained unchanged for the past five years while about two-dozen areas have contributed paltry sums – far less than PKR 500 Mn – in 1HFY18. The top 10 areas are contracts, imports, salary, telephone bills, exports, bank interests, cash withdrawal, dividends, technical fee and electricity bills. Resultantly, the share of WHT in total tax collection, which was 56% in June 2013, has now gone up to over 70%. Tribune-Tues. 1QFY18 provincial development spending declines by 7.4% The provincial development spending fell 7.4% during 1QFY18 to PKR 95.4Bn, down from PKR 103Bn. Overall, provincial expenditures (current and development) surged to PKR 493Bn in 1QFY18 compared to PKR 419Bn in 1QFY17. Current expenditures of the provinces have been recorded at PKR 397Bn in 1Q FY18 up from PKR 316Bn. Provinces have posted a combined surplus of PKR 86.2Bn during 1QFY18 compared to PKR 108.5Bn in 1QFY17. BR – Mon. FBR to facilitate individual taxpayer The FBR is working on three proposals — raising exemption limit, reducing tax rate for individual taxpayers and introduction of simplified return form. In this respect, FBR is working on a proposal to enhance the basic income tax exemption limit to a minimum of PKR 0.5Mn from the existing PKR 0.4Mn for the salaried class in the budget of FY19. Dawn-Sun. Pakistan loses 1,000GW of electricity in two years Pakistan lost a gigantic 1,000GW of electricity during the past two years due to technical inefficiencies and inept management of state-owned power plants, said NEPRA in an official report. The poor state of public sector generation companies (Gencos) resulted in a loss of 1,051GW of energy in 2014/15 and 2015/16, causing considerable financial loss to national exchequer and which compelled the government to phase out inefficient and old power plants. The News-Tue. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 2-Feb 110.40 112.20 0.00% -0.13% Crude (MA'18) 2-Feb 2-Feb 2-Feb 5-Feb PKR PKR Pts. $ Mn $/bbl 44,301 7.38 63.83 0.10% NM** -2.34% Gold (MA'18) Gold (10g) Local 5-Feb 2-Feb $/oz PKR 1,338.8 48,300 0.60% -0.44% Silver (MA'18) Cotton(KHI)-40 kg 5-Feb 2-Feb $/oz PKR 16.72 7,823 0.94% 0.00% Kibor-6M 2-Feb % 6.43 $ Bn 19.35 0.00% WoW -1.46% Remittances 26-Jan FY18 Jul-Dec 17 $ Bn 9.74 YoY 2.51% Exports* Imports* Jul-Dec 17 Jul-Dec 17 $ Bn $ Bn 11.01 28.97 11.27% 19.11% Jul-Dec 17 Trade Balance* $ Bn -17.96 Jul-Dec 17 Current Account $ Mn -7,413 Foreign Direct Inv. $ Bn 1.38 Jul-Dec 17 Jul-Nov 17 LSM Growth* % 7.19 % 3.85 Jul-Jan 18 Avg. CPI Discount Rate % 6.00 Jan-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -24.48% -59.08% -2.81% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Major Currencies 165 145 135 EUR, 5-Feb-18, 137.7 125 115 105 USD, 5-Feb-18, 110.7 95 Feb-17 CPEC coal-based power plants to damage environment: ADB The Asian Development Bank (ADB) has said that the upcoming 10GW generation capacity under CPEC which is expected to be commissioned before 2019, will increase greenhouse gas emissions substantially that will worsen the climate change mitigation concerns. Moreover, ash handling and disposal problems will also exacerbate negative impacts on the environment, said an evaluation report of the power sector of Pakistan released by ADB. Dawn-Sun. \ GBP, 5-Feb-18, 155.7 155 USD May-17 GBP Cotton production up 7.5% The country produced 11.4Mn bales up to 1st Feb’18, showing a growth of 7.51% over the corresponding period last year when production stood at 10.6Mn bales. Both the textile industry and exporters have also purchased higher quantity of cotton so far. Dawn-Sun. Non-textile exports jump 19% Pakistan’s exports of non-textile products posted a robust growth of nearly 19% to $ 4.4Bn in 1HFY18.The exports of these products, which were facing a steady decline, rebounded in 1HFY18 owing to the government’s support, suggested data compiled by the PBS. Dawn-Tue. Regional trade grows in first half In 1HFY18, a shift is visible in the trade pattern as Pakistan managed to increase its exports to most countries to its east, except China. The latest SBP data showed a rise in exports to Eastern Asia, South Central Asia, South Eastern Asia and Western Asia. Dawn-Tue. Aug-17 Nov-17 Source: KCCI Research ; Oanda.com Quote of the Day "Once constituted, capital reproduces itself faster than output increases. The past devours the future." PM inaugurates Golen Gol Hydropower Project PM Abbasi has inaugurated the Golen Gol Hydropower Project in Chitral. The project will add 36MW of electricity to the national grid. The total installed generation capacity of the project is 108MW with three generating units - each of them having a capacity of 36MW. The1st unit has been completed, while the 2nd and the 3rd unit would be commissioned in Mar.’18 and May.’18 respectively. The project will provide 436Mn units of electricity to the national grid every year. BR – Mon. Iran irked by IP pipeline project delay Iranian Petroleum Minister Bijan Zangeneh has announced that Iran is to begin legal proceedings against Pakistan in the protracted IP gas pipeline project. Iran has laid the pipeline up to Pakistan's border, but Pakistan has not taken due measures on its soil. Iran’s Petroleum Ministry, will therefore, take the issue to court. BR – Mon. EUR Thomas Piketty Chart of the Day Non-Textile Exports by Pakistan 12 11 11 11 10 9 9 8 6 5 4 2 0 FY13 FY14 FY15 Figures in Bn $ FY16 FY17 1HFY18 Source: KCCI Research, SBP Disclaimer SBP unveils updated “Exchange Companies Manual” SBP has issued updated Exchange Companies Manual containing regulations made up to Dec. 31, 2017. According to SBP, This report has been prepared by KCCI Research & Development Cell. The information contained Exchange Companies and Exchange Companies of "B" category are required to bring related regulations to the notice of their 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. customers and to ensure compliance in their day-to-day operations. They should also report to the SBP every case of evasion or attempt, direct or indirect, at evasion of the provisions of the Act and/or any rules, orders or directions issued thereunder, 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 immediately as it comes to their notice. BR – Tue. accuracy. Contact: res@kcci.com.pk