Pakistan Daily Economy Update - 6 October

Transcription

1. Oct . 6, 2016 KCCI - eBulletin Pakistan invites Russia to join CASA-1000 Pakistan has invited Russia to join the CASA-1000 project for the transmission of thermal energy from Oct 2016 till May 2017, a time window when hydel generation is lower in the two Central Asian countries. Moreover, the two countries have also agreed to enter into negotiations for the 600MW gas-fired power plant at Jamshoro to be built with investment from Russia. The govt. is making efforts to recover $ 51Mn from the contractor of Tarbela-4 Extension Hydropower Project, an amount the authorities gave as an incentive for early completion. Tribune. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank 5-Oct PKR 104.55 -0.02% USD-Open MKT 5-Oct PKR 105.20 0.10% KSE-100 index FIPI 5-Oct 5-Oct Pts. $ Mn 41,253 -0.89 0.31% NM** Crude (JU'16) 5-Oct $/bbl 49.76 1.24% Gold (MY'16) 5-Oct $/oz 1,268.3 -0.09% Gold (10g) Local 5-Oct PKR 43,289 -0.69% Silver (MY'16) 5-Oct $/oz 17.76 -0.35% Work on Khalifa Oil Refinery project soon According to the Ministry of Petroleum and Natural Resources, work on the multibillion dollar abandoned Khalifa Coastal Oil Refinery project would start soon. The Pakistan Arab Refinery Company (Parco) had been given the task to complete the project, which was stopped during the previous govt. Parco will complete the refinery having capacity to process 250,000 barrels oil per day, equal to 13Mn tons of petroleum products per annum. The refinery would be completed in a period of 3 to 5 years. The News. Cotton(KHI)-40 kg 5-Oct PKR 6,575 0.81% Kibor-6M 5-Oct % 6.05% 0.01% 23-Sep $ Bn 23.42 3.18% Remittances Jul-Aug 16 $ Bn 3.09 -3.17% Finance Division asks FBR to exempt youth loans from 3% WHT The Finance Division has asked FBR to exempt financing to unemployed youth under the Prime Minister's Youth Business Loans (PMYBL) Scheme from payment of 3% withholding tax under section 231 B(1A) of Income Tax Ordinance 2001. According to the Executing Agencies, most of the unemployed youth applying for loans under PMYBL are non-filers. Hence, burdening them with additional cost under Section 231 B (1A) for getting financing for Light Commercial Vehicles will discourage them for applying under the Scheme. BR. Exports* Jul-Aug 16 $ Bn 3.14 -8.19% Imports* Jul-Aug 16 $ Bn 7.88 10.21% Trade Balance* Jul-Aug 16 $ Bn -4.74 -27.06% Current Account Avg. CPI-FY17* Jul-Aug 16 Jul-Sep 16 $ Mn % -1,316 3.88 -91.84% Hubco plans to set up 330MW coal-fired plant Thar Energy Limited (TEL), a wholly-owned subsidiary of Hub Power Company (Hubco), applied for a licence with the NEPRA to set up a 330MW local coal-based power generation facility in Thar Desert. The project cost is estimated at $ 498Mn, based on the debt and equity of 75% and 25%. The proposed plant will be set up in Thar Block-II. The News. Property valuation: FBR acts against housing societies FBR has launched a countrywide action against co-operative housing societies/authorities, which failed to deduct taxes on transfer of immovable properties under FBR's notified valuation tables. The strict action has been initiated against all such cooperative housing societies/authorities which are evading taxes and failed to follow the FBR's new valuation tables on property valuation in each city of the country. BR. Govt. markets five-year US dollar sukuk at high 5% area Pakistan is marketing a US dollar-denominated sukuk to fund its budget for which initial prices have been announced in the high 5% area. The five-year notes are expected to be rated B3/B (Moody's/Fitch), on par with the sovereign. Citigroup, Deutsche Bank, Dubai Islamic Bank, Noor Bank and Standard Chartered Bank are joint book runners. Pakistan last visited the offshore market in Sept.’15, when it sold a $ 500Mn 10-year conventional bond at a yield of 8.25%. The team has conducted roadshows in Dubai, London, Boston and New York and met with potential investors in these major financial centers. After the completion of the book building process, the allocation and pricing of international Sukuk 2016 is expected to be completed in a day or two. BR. Tariff of SPPs, CPPs: Nepra counsel asked to seek instruction for option Resuming the hearing of 28 identical pleas challenging the decision of Nepra for reducing tariff of Small Power Producers (SPPs)/Captive Power Plants (CPPs), the Supreme Court has asked the authority's counsel to seek instruction from his client for an option to provide a chance for hearing to the appellants. Appearing on behalf of Shikarpur Power Private Limited, Omni Power Private Limited and some others power companies, Barrister Ali Zafar claimed that the economy was suffering as very cheap electricity was available to the Distribution Companies but was not being utilized. BR. Pakistan makes fresh pledge of $ 500Mn for Afghanistan Pakistan has made a fresh pledge of $ 500Mn for economic development projects in Afghanistan. Underlining the importance of a peaceful, stable and prosperous Afghanistan for Pakistan, the Adviser Sartaj Aziz has said that this amount is in addition to $ 500Mn existing package under which projects in infrastructure, education and health are nearing completion. He also announced that Pakistan has provided 3000 scholarships to Afghan students for higher education in Pakistan and after completion of this program, Pakistan will provide another 3000 scholarships in the fields of medicine, engineering, banking and other fields to help Afghanistan's institution building. BR. Real estate transactions: FBR empowered to seek explanation from buyers, sellers Chairman FBR has stated that federal tax authorities are empowered to seek explanation of any difference between notified valuation rates of FBR and provincial DC rates in real estate transactions from buyers and sellers of immovable properties. BR. Only 1.1Mn filed tax returns for 2015-16 The FBR has received 1.1Mn income tax returns in TY16, FBR Member (Inland Revenue) Policy said. He said several measures are being taken to raise the cost of doing business for non-filers, which will compel them to become part of the tax system. The measures include establishment and maintenance of a central databank, simplification of tax procedures, increased reliance on direct taxes within the tax-mix, minimum tax exemptions and withholding tax, robust audit and greater transparency to promote a culture of tax compliance. Dawn. Revenue collection rises to PKR 637Bn The FBR has collected PKR 637.1Bn in 1QFY17, a growth of 6% compared to PKR 600.2Bn a year earlier. However, it has failed to meet the target set for the quarter. The FBR generated PKR 251.8Bn in income tax compared to PKR 255.59Bn a year ago, a decline of 1.4%. Sales tax collection fell 1.2% to PKR 271.5Bn from PKR 274.91Bn in the same period last year. Dawn. List of Indicators WoW Forex Reserves YoY Sep-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 175 165 155 145 GBP, 5-Oct-16, 132.8 135 EUR, 5-Oct-16, 117.0 125 115 105 95 USD, 5-Oct-16, 104.3 85 75 Oct-15 Jan-16 USD Apr-16 GBP Jul-16 Oct-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day Enthusiasm is the sparkle in your eyes, the swing in your gait, the grip of your hand and the irresistible surge of will and energy to execute your ideas. Henry Ford Chart of the Day Cotton Production in Pakistan 16,000 14,000 13,595 13,031 12,769 13,960 12,000 10,074 10,000 8,000 6,000 4,000 2,000 0 2011-12 Value in Bales 2012-13 2013-14 2014-15 2015-16 Source: KCCI Research, MoF Reflection in key indicators: body to review criteria for measuring foreign investment The ECC has constituted a committee to review criteria for measuring foreign investment for its reflection in the key economic Disclaimer indicators keeping in view the international best practices. The decision has been taken at a recent meeting of the ECC This report has been prepared by KCCI Research & Development Cell. The information contained presided over by Finance Minister Ishaq Dar when it was pointed out that workers' remittances received during 2MFY17 stood herein have been compiled or arrived at based upon information obtained from sources believed at $ 3.09Bn as against $ 3.19Bn in the same period of last year showing a decrease of 3.2%. Gross Foreign Exchange Reserves to be reliable and in good faith. Such information has not been independently verified. with SBP ($ 17.68Bn) and commercial banks ($ 5.05Bn) stood at $ 22.73Bn as on Sept. 21, 2016. BR. 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