Pakistan Daily Economy Update - 6 October

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1. Oct . 6, 2017 KCCI - eBulletin Karachi ranked 7th in terms of ‘FDI Strategy’: KCCI Karachi Chamber of Commerce and Industry (KCCI) President Muffasar Atta Malik and Businessmen Group Chairman Siraj Kassam Teli have said that, due to the efforts and determination of KCCI, Karachi has been ranked on 7th position in terms of FDI Strategy in the list of Top 10 Asia-Pacific cities of the future 2017-18. The list was recently released by fDi Intelligence - the largest FDI Centre of excellence globally. While appreciating KCCI’s R&D Department for providing credible input to fDi Intelligence and helping in diluting many misconceptions about Karachi, they further said that Karachi has left behind many prominent cities around the world including Yokohama (Japan), Newcastle (Australia) and Osaka (Japan) who are ranked 8th, 9th and 10th, respectively. The Nation. FBR registering new taxpayers in Karachi on TR basis FBR has started a new exercise in Karachi to register potential taxpayers on the basis of TR (Temporary Registration) numbers for which legal cover has been provided under the law. The idea of "spot assessment" and "temporary registration" had been discussed during the last meeting of the high-powered implementation committee of Tax Reforms Commission (TRC). BR. SBP establishes consumer helpline The SBP has established a dedicated helpline – UAN 111-727-273 – to facilitate banking consumers in resolving their complaint against banks, microfinance banks and development finance institutions. SBP Governor Tariq Bajwa, while inaugurating the helpline, advised the officers concerned to make the general public aware of the helpline and ensure that banking consumers were properly facilitated. Banks have been advised to display the helpline number in their branches for the convenience of consumers. Tribune. Over 20% growth in 1QFY18 despite PKR 41Bn refund payments Finance Minister Mohammad Ishaq Dar, while addressing the Chief Commissioners Conference at FBR for reviewing revenue collection performance of 1QFY18, has said that tax target for FY18 has been fixed at PKR 4.01Bn which is 19.4% higher than FY17, whereas FBR has registered an increase of more than 20% growth in 1QFY18, which is really a praiseworthy feat. He further said that this increase has been achieved despite the fact that PKR 41Bn worth of tax refunds have been issued by FBR during the period under review, against 19Bn issued in 1QFY17.BR. Pakistan, Vietnam agree to remove trade barriers In the 4th meeting of the Joint Trade Commission held at Islamabad, Pakistan and Vietnam have agreed to remove the existing trade barriers in the process of expanding trade ties between the two countries. During the meeting, both sides affirmed their determination to cooperate in sectors such as energy, textile & garment, chemical, leather & footwear, IT & telecom, auto & machinery, cutlery and surgical goods, pharmaceuticals, sports goods, gems and jewelry, food processing and infrastructure development. It has also been agreed that the 5th meeting of the Joint Trade Commission will be held in Hanoi, Vietnam in 2018. The Nation. Economic Coordination Committee to consider deregulating diesel price today PM Abbasi has called a meeting of the Economic Coordination Committee (ECC) of the cabinet to approve PKR 39Bn sovereign guarantees for a coal power project, increase commissions for petroleum dealers and companies and settle tax disputes between power distribution companies and tax authorities amounting to more than PKR 80Bn. The meeting is also expected to consider extending the subsidy on agricultural tube wells for Balochistan, extension in reduced withholding tax rate for non-filers up to Dec 31 and additional allocation of surplus tobacco to tobacco companies and dealers. Dawn. OGRA’s concerns about profit margin deregulation addressed The Petroleum Division has said that it has addressed concerns of the Oil and Gas Regulatory Authority (Ogra) and Planning Division about planned deregulation of margins on high-speed diesel (HSD) sales for oil marketing companies (OMCs) and dealers. The Petroleum Division said it has conveyed that OMC margins may be deregulated whereas other cost components included in the ex-depot sale price such as the ex-refinery price, inland freight equalisation margin and taxes would be determined in line with the existing mechanism. Currently, the OMCs collect PKR 2.41 per litre as margin on the sale of petrol \ and HSD. Dealers charge PKR 3.16 on every litre of petrol and PKR 2.67 on a litre of diesel. Tribune. Punjab seeks PKR 7.10 reference tariff for LNG power plant The Punjab government has sought reference tariff for another 1,240MW LNG-based fast tracked power project at an average unit cost of PKR 7.10 (6.72 cents) for 30 years with generation expected to begin in Dec’18. The provincial government is already developing two LNG-based mega projects currently in completion phase and was given permission to set up another by the Cabinet Committee on Energy (CCE). The new plant will be named Punjab Power Plant Jhang. Dawn. Sindh governor, federal minister discuss investment avenues Federal Commerce and Textile Minister Pervaiz Malik met Sindh Governor Muhammad Zubair to discuss the law and order situation and investment opportunities in the province. The governor pointed out that a steady improvement in economic indicators was a sign of growing confidence of the local business community and industrialists in the national economy. “This will attract foreign investors as well,” he added. Tribune. Forex reserves fall by $ 288Mn Pakistan's total liquid foreign reserves fell by $ 288Mn as on Sept. 29, 2017 due to external debt servicing. With current decline, Pakistan's total foreign exchange reserves stood at $ 19.76Bn during week under review compared to $ 20.05Bn as on Sep. 22, 2017. The reserves held by the SBP dropped $ 276 Mn to $ 13.86Bn from $ 14.13Bn a week earlier. Similarly, reserves held by the commercial banks decreased by $ 12.7Mn to $ 5.91Bn as against $ 5.92Bn in the preceding week. BR. Nepra law: NA body defers approval to amendments National Assembly’s Energy Standing Committee has deferred approval of amendments in the Nepra Act for a few more days. Both Nepra and Energy Ministry (Power Division) have evolved a consensus on "The Regulation of Generation, Transmission and Distribution of Electric Power (amendment) Bill 2017. The Nation. Saudi unemployment up, economy stagnant despite reforms: IMF The International Monetary Fund has said that it is advising Saudi Arabia to slow down some of its sensitive cutbacks as economic growth remains stagnant this year and unemployment rises. The IMF says non-oil growth is projected to dip below 2% in 2017 while overall economic growth is expected to be close to zero. The kingdom announced recently that unemployment had risen to 12.8%. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 5-Oct 5-Oct 5-Oct 5-Oct 5-Oct 5-Oct 5-Oct 5-Oct 5-Oct 5-Oct PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.41 106.50 40,468 2.89 49.87 1,268.7 44,700 16.59 6,430 6.17% 29-Sep $ Bn 19.76 -0.01% 0.09% 0.02% NM** -0.08% -0.61% 0.39% -0.02% 0.00% 0.01% WoW -1.44% YoY 13.18% 11.80% 24.85% -33.52% -102.10% 154.74% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (NO'17) Gold (NO'17) Gold (10g) Local Silver (NO'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-Aug 17 Remittances $ Bn 3.50 Jul-Aug 17 Exports* $ Bn 3.50 Jul-Aug 17 Imports* $ Bn 9.79 Jul-Aug 17 Trade Balance* $ Bn -6.29 Jul-Aug 17 Current Account $ Mn -2,601 Foreign Direct Inv. $ Bn 0.46 Jul-Aug 17 Jul-17 LSM Growth* % 12.98 % 3.39 Jul-Sep 17 Avg. CPI-FY18* Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 4-Oct-17, 138.9 145 135 125 EUR, 4-Oct-17, 123.8 115 105 95 Oct-16 USD Jan-17 GBP EUR Apr-17 USD, 4-Oct-17, 105.5 Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "If you love your people and let them know you’re giving back, not just hoarding all the money for yourself, they want to join in." John Paul DeJoria Chart of the Day FEDERAL PROPERTY TAX COLLECTION (FY09-FY17) 12,000 10,794 10,000 9,233 7,834 8,000 6,000 7,036 6,730 5,719 4,604 3,860 3,825 4,000 2,000 0 FY09 FY10 FY11 FY12 FY13 Values in PKR Mn FY14 FY15 FY16 FY17 Source: KCCI Research, MoF 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