Pakistan Daily Economy Update - 6 May

Transcription

1. May 5 - 6 , 2016 KCCI - eBulletin SBP suggests steps aimed at regularizing overseas investments State Bank of Pakistan (SBP) has suggested measures for the regularization of overseas investments of Pakistanis, List of Indicators incorporated companies or retail business outside Pakistan where permissions were not taken from the SBP. In this regard, SBP's draft policy on investment abroad by resident Pakistanis-2016 has suggested regularization of existing USD-Interbank investments. BR – Fri. USD-Open MKT Private sector stops borrowing from banks, starts retiring debt The private sector has stopped borrowing from banks and has instead started retiring the debt it accumulated in 1HFY16. According to the SBP report, the private sector credit (PSC) expanded by PKR 352.9Bn in 1HFY16, against the PKR 222.3Bn in 1HFY15. The expansion in PSC was broad-based as a large number of sectors, including textiles, fertilizer, retail trade, construction and electricity, availed higher credit in FY16. However, The SBP’s latest report of 10MFY16 indicates that private-sector borrowing slipped to below PKR 300Bn, coming closer to borrowing made during 10MFY15. Dawn-Fri. Moratorium on new gas connections lifted Petroleum Minister Shahid Khaqan Abbasi has stated that govt. has lifted the moratorium on new gas connections in the country as gas producing provinces were requesting for the removal of ban. The ban was imposed by the previous govt. on new gas connections in 2011 due to serious gas deficit. In this regard, Minister further stated that Khyber Pakhtunkhwa, Sindh and Balochistan will not have serious implications, however new gas connections in Punjab will face issues of low gas pressure next winter. BR – Fri. Tax return filings cross 1Mn mark The FBR has received more than 1Mn tax returns in TY15, Member Facilitation and Taxpayers Education (FATE) said. The figure had stagnated at around 800,000 in the past few years. To a query, she said the FBR has formulated a strategy to go after tax evaders by using information obtained from their transactions in the real estate sector, purchase of vehicles, foreign travels and also by accessing, in the long run, their bank accounts to assess the extent of tax avoidance and tax evasion. Dawn-Thurs. Date / Period Unit Value Change Daily 5-May PKR 104.79 0.00% 5-May PKR 104.90 0.00% KSE-100 index FIPI 5-May 5-May Pts. $ Mn 35,941 -4.39 2.99% NM** Crude (JU'16) 5-May $/bbl 44.42 0.98% Gold (MY'16) 5-May $/oz 1,278.7 -0.75% Gold (10g) Local 5-May PKR 42,385 -0.70% Silver (MY'16) 5-May $/oz 17.37 -0.54% Cotton(KHI)-40 kg 5-May PKR 6,028 0.43% Kibor-6M 5-May % 6.36% 0.00% Forex Reserves 29-Apr $ Bn 20.79 -0.01% Remittances Jul-Mar 16 $ Bn 14.16 4.14% Exports* Jul-Mar 16 $ Bn 15.61 -12.92% Imports* Jul-Mar 16 $ Bn 32.52 -4.22% Trade Balance* Jul-Mar 16 $ Bn -16.91 -5.50% Current Account Avg. CPI-FY16* Jul-Mar 16 Jul-Apr 16 $ Mn % -1,606 2.79 18.52% WoW YoY Apr-16 Discount Rate % 6.00 Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies FBR stops refunds payment as fiscal year near end The FBR has asked its departments to stop releasing tax refunds till the announcement of the federal budget 2016/17, adding to the frustration of businessmen who are already perplexed over the delayed settlement of claims. Although there has been no formal instruction in this regard, but there is an understanding in the Inland Revenue, while processed claims would be issued in Jul’16. Export rebate, sales tax and income tax refund claims to the tune of tens of billions of rupees have been withheld, causing frustration among the business community. The News-Thurs. 175 FBR freezes OGDCL accounts to recover PKR 2.5Bn Large Taxpayers Unit (LTU), Islamabad, has frozen the bank accounts of Oil and Gas Development Company Limited (OGDCL) to recover outstanding sales tax demand worth more than PKR 2.5Bn. A similar action in the case of OGDCL by LTU, Islamabad in Mar.’16 resulted in the recovery of tax demand worth more than PKR 1.5Bn. BR – Fri. 105 South Korea offers help to improve rice cultivation South Korea has offered to cooperate with Pakistan to improve rice cultivation through exchange of germplasm, hybrid rice production techniques and development of high-yielding salt, drought and pest-resistant varieties of rice. The offer was made by Tae Seon Park, the Director-General of Korea’s Rural Community Corporation, during a meeting with Pakistan’s Minister for National Food Security and Research. He also offered to share Korea’s knowledge and experience in designing and manufacturing small- and medium-sized agricultural machinery, which is suited to small farmers. On the other hand, Pakistan offered to train Korean scientists in “Integrated Pest Management” as it has rich experience in the IPM of cotton and rice crops. Dawn-Thurs. ECB scraps 500-euro note The European Central Bank has said it would no longer produce and issue 500 euro banknotes, amid fears the purplecoloured bills were favoured by criminals for money laundering and even terrorist financing. The bank would stop issuing the banknotes around the end of 2018, but that those currently in circulation will remain legal tender. Dawn-Thurs. Hydroelectric power: WAPDA seeks tariff increase to collect PKR 51Bn The Water and Power Development Authority (Wapda) has sought an increase of PKR 1.5 per unit in hydroelectric power tariff in an attempt to collect PKR 51Bn from consumers for onward payment to the Khyber-Pakhtunkhwa govt. to settle its net hydel profit arrears. Wapda made the request in a supplementary tariff petition filed to the Nepra, which held a public with calls of disapproval of the proposal from relevant stakeholders. Tribune. Foreign exchange: SBP’s reserves decrease 0.52% week-on-week SBP’s liquid foreign exchange reserves decreased by $ 84Mn to $ 15.90Bn during the week ended on 29th Apr, 2016 compared to $ 15.98Bn in the previous week. Total liquid foreign reserves held by the country stood at $ 20.78Bn while net reserves held by banks amounted to $ 4.88Bn. Tribune. 165 GBP, 5-May-16, 151.8 155 145 EUR, 5-May-16, 119.9 135 125 115 95 USD, 5-May-16, 104.7 85 75 May-15 Aug-15 USD GBP Nov-15 EUR Feb-16 May-16 Source: KCCI Research ; Oanda.com Quote of the Day "When two men in a business always agree, one of them is unnecessary." William Wrigley, Jr Chart of the Day 25 Official reserve assets of Pakistan (Jan.'07 - Mar.'15) 20 15 10 5 0 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 Adjustment on account of LNG variation: Nepra announces modification in tariffs of HSD-fired IPPs Nepra has announced modification in tariffs of High Speed Diesel (HSD) for four Independent Power Producers (IPPs) for prescribed fuel price adjustment on account of imported Re-gasified Liquefied Natural Gas (RLNG) variation. There are currently four IPPs, falling under the Power Policy 2002, running combined cycle thermal power plants based on dual fuel (gas/HSD) with the primary source of fuel being pipeline quality gas. With the shortage of natural gas and a cut in the supply of the primary fuel, these companies had no other option but to run their power plants on the alternate fuel i.e. HSD which led to the production of costly electric power. BR – Fri. Economic Indicators Source: KCCI Research, SBP Value in $ Mn Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained herein have been compiled or arrived at based upon Increasing revenue: Miners displeased with delay in legislation information obtained from sources believed to be reliable and in good faith. Such Mine owners and lease holders have expressed concern over the delay in enactment of the proposed Khyber- information has not been independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is Pakhtunkhwa Mineral Development and Regulation Act 2016, and urged the govt. to remove all hurdles in the path of stated to enrich the readers' understanding of the news item. The the legislation, to increase revenue in the mining sector. Tribune.