Pakistan Daily Economy Update - 6 January

Transcription

1. Jan 06 , 2021 KCCI - eBulletin Gas shortage: SAPM rejects Sindh govt’s accusation Rejecting the Sindh Govt.’s accusation that Karachi is facing gas shortages due to the federal govt., SAPM on petroleum Nadeem Babar said that the impression is incorrect. He said that in Dec’20-Jan’21, the gas usage increased by almost three times, which mitigated through gas management plan. He said at per agreement with SSGC gas to captive powers can curtail for three months of winter (Dec’20-Feb’21). However, in Dec’20, gas supply to these captive power plants was continued. He maintained that the gas to nonexport industry of the province was disconnected but kept supplying to export-oriented industry. BR. Value-added, non-traditional products push up exports According to Ministry of commerce data, an increasing trend has been witnessed in the export of value-added and non-traditional products that has helped in increasing Pakistan’s exports in Dec’20. Exports of value-added and non-traditional products have increased including Tobacco & Cigarettes (212.2%), Ethyl Alcohol (128.6%), Stockings & Socks (49.8%), Home Textiles (38.1%), Women’s Garments (37.8%), Jerseys (37.3%), Gloves (25.5%) and T-shirts (16.9%) as compared to Dec’19. The Nation. WB sees global output up 4% in 2021, flags downside risks The global economy is expected to expand 4% in 2021 after shrinking 4.3% in 2020, the World Bank said, although it warned that rising COVID-19 infections and delays in vaccine distribution could limit the recovery to just 1.6% in 2021. BR. IPPs not impressed by govt plan for dues settlement IPPs have cast off a payment plan offered by the govt. for partial settlement of their dues and demanded at least 50% upfront cash payments before signing formal agreements for tariff discounts. It was explained to the govt. team that the IPPs were facing an acute liquidity crisis and their legitimate outstanding dues stood at about PKR 450Bn. Dawn. 5-Jan 5-Jan Pts. $ Mn 44,650 -0.46 -0.08% NM** Crude (AP'19) 5-Jan $/bbl 50.03 5.04% Gold (MA'19) 5-Jan $/oz 1,942.2 0.02% Gold (10g) Local 5-Jan PKR 99,451 0.35% Silver (MA'19) 5-Jan $/oz 27.24 -0.33% Cotton(KHI)-40 kg 5-Jan PKR 10,931 0.00% Kibor-6M 5-Jan % 7.35 0.00% 24-Dec $ Bn 20.25 WoW -0.29% Remittances Jul-Nov 20 $ Bn 11.77 26.58% Exports* Jul-Nov 20 $ Bn 9.74 2.11% Imports* Jul-Nov 20 $ Bn 19.42 1.29% Trade Balance* Jul-Nov 20 $ Bn -9.69 -0.48% Current Account Foreign Direct Inv. Jul-Nov 20 Jul-Nov 20 $ Bn $ Bn 1.64 0.72 193.98% -18.87% Forex Reserves YoY Jul-Oct 20 LSM Growth* % 5.46 % 8.63 Jul-Dec 20 Avg. CPI Discount Rate % 7.00 Jul-20 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 235 GBP, 5-Jan-21, 218.3 225 215 205 195 EUR, 5-Jan-21, 197.1 185 175 165 155 145 USD Jan-20 GBP Apr-20 USD, 5-Jan-21, 160.5 Source: KCCI Research ; Oanda.com EUR Jul-20 Oct-20 Jan-21 Quote of the Day “When you are small, you have to be very focused and rely on your brain, not your strength.” Jack Ma Pakistan’s Top 10 Markets Based on Export Growth in 5MFY21 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 7.50% Economy revives to pre-Covid levels Economic activities were largely restored to pre-Covid levels in 1QFY21 indicating promising growth ahead in all major sectors like agriculture, industries and services, but the risk of a spike in Covid-19 cases still poses a major threat to growth trends. In its Sate of the Economy Report 1QFY21, SBP reported that the Business Confidence Survey turned positive after quite a long time. SBP projects potential growth in export of rice and textile amid the Nov’20 industrial package. Tribune. KSE-100 index FIPI 12.90% \ 0.22% 0.27% 15.10% 1.5 to 2.5% growth projection: SBP identifies Covid-19 wave as downside risk According to SBP’s “The State of Pakistan’s Economy” Report for 1QFY21, it has projected that real GDP growth to be in the range of 1.5 to 2.5% during FY21 based on the current trends of economic activity. Actual real GDP growth target for FY21 was 2.1% as against 0.4% growth in FY20. However, SBP said that the downside risk to this projection includes the 2nd wave of Covid-19, which has swept across many countries and, in Pakistan’s case, gained momentum in Nov’20. The current account deficit is now projected to be in the range of 0.5-1.5% of GDP as against earlier 1.0 to 2.0% of GDP. Workers’ remittances, are now expected to be in $ 24-25Bn compared to previous $ 22-23Bn estimates. BR. 160.33 160.43 16.30% 2nd PKR PKR 18.40% Procurement rules relaxed to allow vaccine import Federal cabinet has approved the procurement of the anti-Covid-19 vaccine by relaxing the Public Procurement Regulatory Authority rules. There will be no need to fulfil the tender requirement to procure the vaccine, which will be procured from any of the six companies registered with the Ministry of National Health Services. Dawn. Change Daily 5-Jan 19.10% Textile exporters ask for custom free yarn import Demanding full liberty to import yarn to complete export orders, value-added textile exporters have urged the govt. to remove 5% custom duty on import of 32 single yarns and below count until cotton yarn scarcity was controlled. They said that due to the unavailability of cotton yarn, the prices of cotton yarn have increased by 9.62%, which upshot the cost of manufacturing, pushing the exporters towards an unviable situation and un-competitiveness. The News. Value 5-Jan 20.80% Dawood seeks zero-rating for textile chain Advisor on Commerce Abdul Razak Dawood is reportedly seeking zero rating for entire textile chain in the Textile and Apparel Policy 2020-25 to be considered by the ECC today 6th Jan’21. The Ministry of Commerce, has proposed $ 900Bn incentives for the textile chain in five years. Tariff structure of entire textile and apparel chain including MMF and cotton based value-chains will be rationalized on priority followed by accessories and dyes and chemicals. Custom duty drawback rate of textile and apparel products will be reviewed taking into account additional customs and regulatory duties. Temporary importation schemes will be simplified in perspective of SMEs. BR. Unit USD-Interbank USD-Open MKT 22.80% FBR shifts refunds processing of non-exporters to old system FBR has restarted its old automated sales tax refund system to handle claims of non-export sector in a move to divide load of its newlylaunched technology that has been lurching for over a year. FBR allowed the processing of sales tax refund claims of non-export sector and carry-forward through sales tax automated refund repository (STARR) till 30th Jun’21. The processing of refund through STARR was stopped after the launch of fully automated sales tax e-refund (Faster), which was made fully operational with aim to clear the refund claims within 72 hours from 1st Jul’20. Since the start of the new system the exporters have been facing various problems in obtaining refunds. The News. Date / Period 39.20% Lahore, Karachi chambers to work jointly for trade, industry promotion Lahore Chamber of Commerce and Karachi Chamber of Commerce & Industry (KCCI) have decided to make joint efforts for the cause of trade, industry and economy promotion. It was agreed at a meeting between LCCI President Mian Tariq Misbah and KCCI President Shariq Vohra at LCCI. They would also work together to settle issues with FBR, to ensure representation of chambers on economic policies making at all level. Both the chambers were agreed that trade and investment policies should be for 10 to 15 years. The LCCI will take Karachi Chamber on board regarding the business and investment conference in Gawadar City scheduled in the last week of Jan’21 or first week of Feb’21. BR. Economic Indicators List of Indicators 39.70% KCCI reposes solidarity with Kashmiris President KCCI M.Shariq Vohra has said that the business community firmly supports the struggle of Kashmiris for their right to selfdetermination as per United Nations' resolution, and to live respectful and peaceful life on their home land. He said that our hearts beat with those of innocent Kashmiris in occupied held Jammu and Kashmir and we pledge our un-conditional support to them. He condemned that Indian attitude had been totally irresponsible to the demands of Kashimiris and the world community as a whole. BR. Source: KCCI Research, MOC BOI & JICA organizing an Online Virtual Delegation VSS availed by 2,000 PIA employees to cost govt PKR 5Bn Voluntary Separation Scheme availed by 2,000 employees of PIA will cost around PKR 5Bn to the federal govt. PIA claims that the VSS BOI & JICA are organizing an Online Virtual Delegation “Japanese Business Delegation to Pakistan” to be held on 13th – 14th Jan’21. A number of top-notch Japanese will save PKR 2.5Bn annually. The News. Prices go up again: Sugar being sold for PKR 90-100 per kg Prices of sugar have surged once again across Pakistan, with the rate of the sweetener rising by PKR 5 per kg. A 100kg sugar sack is being sold for PKR 8,300 in Karachi's wholesale market. Thus, it is available at PKR 83 per kg and in the retail market, sugar is being sold for PKR 90 per kg. The News. companies would be participating for finding investment opportunities and potential partners for Business Cooperation and JVs. Interested members dealing in Trading, Transport/Logistics, Manufacturing, ICT, Services, and Construction/Engineering are requested to kindly share the Company Information (company/products/services) and express areas of interests for partnering with foreign investors through JV. Members must also send additional e-information (PDF) such as a company brochure, product leaflets, pictures of factory/products, etc. at adil.khan@kcci.com.pk / res@kcci.com.pk.