Pakistan Daily Economy Update - 6 October

Transcription

1. Oct . 7, 2016 KCCI - eBulletin Moody's maintains stable outlook for Pakistani banks Moody's has maintained stable outlook for Pakistani banks reflecting strengthening economy and high liquidity buffers. Moody's expects Pakistani banks to maintain ample liquidity and continue to benefit from large volumes of low-cost and stable customer deposits. Moody's expects Pakistan's GDP growth to expand by 4.9% in the fiscal year ending in Jun.’17, which would be the fastest pace since 2008. BR. Debt, export challenges: Sukuk issued to borrow $ 1Bn: Dar Finance Minister Ishaq Dar has stated that Pakistan has issued sukuk bonds to borrow $ 1Bn from international market as debt repayments liabilities are fast approaching and foreign earnings especially through exports are shrinking. Dar said sukuk bonds have been issued for a period of five years at a return of 5.5% against an indicative interest rate of 5.75% for a period of five years by mortgaging a portion of Lahore-Islamabad Motorway. BR. Karachi’s Green Line approved, cost revised upwards by 52% The federal govt. has approved a revised green line bus rapid transit (BRT) project at a cost of PKR 24.6Bn for the country’s largest metropolitan while also sanctioning funds to strengthen the country’s Indus Water Commission. The CDWP revised the cost of Karachi metro bus project upwards by 52% to PKR 24.6Bn in addition to approving changes in its design. The project starts from Karachi’s Surjani Town area and will now go all the way to the Central District business area in Saddar. Tribune. KCCI invited to participate 16th MUSIAD Expo Ibrahim Yilmazer, Coordinator MUSIAD, which is the largest businessmen's association of Turkey, invited the KCCI to participate in the forthcoming 16th MUSIAD Expo, 3rd High Tech Port by MUSIAD and 20th International Business Forum (IBF) Congress scheduled to be organized in Istanbul, Turkey from 9th to 12th November 2016. Dailytimes. Benami transactions: Draft bill approved by cabinet The federal cabinet has approved draft Bill for Regulation for Benami transactions according to which any property held in "Benami" will be confiscated by the federal govt. The problem of property held as Benami; has been causing concern to the tax authorities and past practice and experience shows that Benami transactions have often been resorted to; for furthering illegal acts, including the evasion of taxes. The assets, which are taken through illegally-earned money, can be used for evasion of material amounts of taxes or something more serious like financing terrorism. BR. 2016-17: CCAC revises production estimates downward to 11.04Mn bales The Cotton Crop Assessment Committee (CCAC) has revised the cotton production estimates downward for the second time in the current season to 11.04 Mn bales against the initial estimates of 14.1Mn bales for the current season (FY17). The country had missed the crop production target by around 30% in FY16 and it remained around 10Mn bales, which according to Finance Minister caused a loss of 0.5% to GDP growth. BR. Brussels donor conference: Ghani commends Pakistan’s $ 500Mn aid pledge The Afghan president has thanked Pakistan’s pledge of further $ 500Mn economic assistance to Afghanistan at the Brussels Conference, which demonstrates Pakistan’s solidarity and support for the govt. and people of Afghanistan. President Ghani also appreciated the announcement of a 2nd tranche of 3,000 scholarships for Afghan students in Pakistan’s universities, which would greatly help in institution building in Afghanistan. Tribune. Forex reserves soar by $ 528Mn in 1QFY17 The country's total liquid foreign exchange reserves have moved up by over $ 527.5Mn during 1QFY17. With current surge, Pakistan's total liquid forex reserves stood at historical level of $ 23.61Bn as on Sept. 30, 2016 compared to $ 23.42Bn 0 $ 23.09Bn as on July 1, 2016. while reserves stood at $ 23.42Bn as on Sept. 23, 2016, a week earlier. The central bank's reserves increased by $ 362.2Mn to reach $ 18.49Bn at the end of Sept.’16 compared to $ 18.13Bn at the end of Jun.’16. BR. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 6-Oct PKR 104.54 -0.01% USD-Open MKT 6-Oct PKR 105.10 -0.10% KSE-100 index FIPI 6-Oct 6-Oct Pts. $ Mn 41,252 1.88 0.00% NM** Crude (JU'16) 6-Oct $/bbl 50.58 1.65% Gold (MY'16) 6-Oct $/oz 1,253.9 -1.14% Gold (10g) Local 6-Oct PKR 42,869 -0.97% Silver (MY'16) 6-Oct $/oz 17.30 -2.57% Cotton(KHI)-40 kg 6-Oct PKR 6,575 0.00% Kibor-6M 6-Oct % 6.05% 0.00% 30-Sep $ Bn 23.61 0.82% Remittances Jul-Aug 16 $ Bn 3.09 -3.17% 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% 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, 6-Oct-16, 132.8 135 EUR, 6-Oct-16, 117.0 125 115 105 95 USD, 6-Oct-16, 104.6 85 75 Oct-15 Jan-16 USD Apr-16 GBP Jul-16 Oct-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Never give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine." Jack Ma Balochistan exceeds tax collection target by 31% The revenue collection in Balochistan for the first quarter of FY17 surpassed its target by 30.65%. Data shows the revenue collection by the two model customs collectorates in Balochistan was PKR 7.49Bn in July-Sep as opposed to the target of PKR 5.73Bn for the same period. Dawn. Chart of the Day Pakistan's Foreign Exchange Reserves (FY99 - 1QFY17) 23.61 23.08 1QFY17 Iranian envoy urges to raise Pak-Iran trade volume Iranian Ambassador Mehdi Honardoost visited Board of Investment, during the visit the Iranian ambassador informed that after lifting US sanctions from Iran, Pakistan needs to promote investment and trade with Iran. "We have the same interest, religion, culture, languages and traditional values, which differentiates the relations of Pakistan and Iran from other countries", he said. Dailytimes. Cement sales register growth of 3.55% Total cement dispatches have amounted to 3.05Mn tons in Sept 2016, depicting a growth of 3.55% due to slack demand in domestic markets. Domestic dispatches in Sept 2016 were 2.53Mn tons, registering a growth of 2%, while exports were 0.52Mn tons, reflecting growth of 11.79% compared to Sept 2015. Tribune. 'Action please,' IMF's chief says to world's economic leaders IMF chief Christine Lagarde has strongly called for action around the world to revive growth and tackle inequality, singling out Germany, Canada and South Korea to provide stimulus. The IMF, this week, forecasted "subdued" global growth of 3.1% in 2016, rising to 3.4% next year, with the developing world expected to outpace advanced economies. Lagarde pointed to three leading economies as examples of states that have the financial wherewithal to spend more to accelerate growth. BR. Globalization must be 'different' IMF chief Christine Lagarde has said that globalization has largely benefited the world but must be "different" in the future, with world governments working more to prevent persistent inequality. According to the IMF, the failure to support displaced workers and others affected by globalization has encouraged protectionist sentiment in the developed world. BR. 2014-15 14.14 11.02 2012-13 15.29 2010-11 12.43 11.40 2008-09 2006-07 13.12 12.60 12.39 10.77 2004-05 2002-03 3.23 1.97 2.29 2000-01 1998-99 0.0 2.5 5.0 6.44 7.5 10.0 12.5 18.70 15.0 18.24 16.75 15.65 17.5 20.0 22.5 25.0 Source: KCCI Research, SBP Value in $ Bn 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