Pakistan Daily Economy Update - 7 December

Transcription

1. Dec . 7, 2016 KCCI - eBulletin Shanghai Electric unveils $ 9Bn investment plan for K-Electric Shanghai Electric Power Company of China has outlined a $ 9Bn investment plan following acquisition of shares and management control of KElectric. The plan was unveiled in a high-level meeting of a committee constituted by the Cabinet Committee on Energy for deliberating on KElectric’s share transfer. In the business plan, Shanghai Electric along with K-Electric management highlighted that how they would improve and add value to the power utility’s infrastructure including transmission, distribution and generation systems. Tribune. US diplomat urges KCCI to play its role in cementing US-PAK ties US Consul General in Karachi, Ms. Shelton has urged the KCCI to play a role in strengthening trade relations between US and Pakistan, keeping in mind the long history it shares with US. She said "I want that the economic ties between United States and Pakistan grow deeper and stronger. She assured that her team at US Consulate Karachi would continue to work with Pakistani and US companies to attract investment and build lasting connections. Chairman BMG and KCCI former president Mr. Siraj briefed the US consul general about Karachi Chamber's role and the relentless efforts being made by his group for around last 20 years. Daily Times. Saudi bank to fund TAPI pipeline project Saudi Arabia-based Islamic Development Bank has agreed to provide a $ 500Mn loan to part-finance the $ 15Bn Turkmenistan-AfghanistanPakistan-India (TAPI) natural gas pipeline project. Moreover, the TAPI Pipeline Co is in talks to rope in Saudi Fund for Development and the Japanese govt. as partners in the 1,814km project that will transport gas from Turkmenistan's Galkynysh fields to Fazilka in India through Pakistan. The News. Income Tax Act enforced The Income Tax (Amendment) Act, 2016 has been enforced, which has allowed purchasers/investors of immovable properties to legalize/whiten the difference between the FBR notified values of immovable properties and DC rates/registered values on payment of 3% tax and the source of investment would be not be investigated. The Income Tax (Amendment) Bill 2016, was a money bill, passed by the National Assembly on Nov. 30, 2016. The Bill was transmitted to the Senate for recommendations thereon within fourteen days, as required by proviso to clause (1) of Article 73 of the Constitution. The President has given his assent to the Income Tax Amendment Bill 2016, as advised by the PM. BR. Chinese envoy says 10,000 local people given CPEC jobs On the launching ceremony of CPEC’s website, Chinese Ambassador Sun Weidong has said that it is a long-term project and everything should be evaluated on the scientific lines for its efficient implementation for which Silk Road Bank and Asia Infrastructure Bank have already been established for strengthening co-operation of both countries over CPEC projects. BR. ECC dismisses proposal for 50% sales tax on gas supply The Economic Coordination Committee (ECC) of the cabinet has turned down a proposal to increase general sales tax by 33% points on gas sales to the powerful industrial lobby. The ministry suggested a reduction in the gas sale price but at the same time advocated a higher sales tax at 50% compared to existing 17% for industrial consumers. The ministry proposed gas supply at PKR 600 per mmbtu including PKR 400 as the gas price and PKR 200 as sales tax. Under this plan, the industrial consumers would enjoy a relief of PKR 102 per mmbtu. Tribune. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 6-Dec PKR 104.82 0.00% USD-Open MKT 6-Dec PKR 107.10 2.59% KSE-100 index FIPI 6-Dec 6-Dec Pts. $ Mn 44,199 -13.10 1.05% NM** Crude (JA'17) 6-Dec $/bbl 50.73 -0.72% Gold (JA'16) 6-Dec $/oz 1,169 -0.06% Gold (10g) Local 6-Dec PKR 41,957 -0.71% Silver (JA'16) 6-Dec $/oz 16.72 0.01% Cotton(KHI)-40 kg 6-Dec PKR 6,843 0.00% Kibor-6M 6-Dec % 6.13% 0.00% 25-Nov $ Bn 23.60 -1.11% Remittances Jul-Oct 16 $ Bn 6.26 -3.82% Exports* Jul-Oct 16 $ Bn 6.43 -6.60% Imports* Jul-Oct 16 $ Bn 15.75 8.01% Trade Balance* Jul-Oct 16 $ Bn -9.32 -21.07% Current Account Avg. CPI-FY17* Jul-Oct 16 Jul-Nov 16 $ Mn % -1,762 3.92 -63.45% WoW Forex Reserves YoY Nov-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 Textile City’s Voluntary Winding up begins Due to non-availability of the required infrastructure including natural gas and paucity of funds, the voluntary winding up of the Pakistan Textile City Limited (PTCL), Karachi has been started. Due to mismanagement and corruption, the debt of textile city has exceeded PKR 2.4Bn. In this regard, standing committee on Textile Industry has directed the ministry to sell out 250 acres of its land for payment of its outstanding debt and efforts should be made to make it operational by involving Chinese/foreign companies for its betterment. BR. 155 Proposal of amalgamation: NIB Bank BoD meets today The Board of Directors of NIB Bank would review the MCB Bank's proposal of amalgamation in its emergent meeting on Dec. 7, 2016 (today) in Karachi. The market is expecting that NIB board of directors is likely to accept the MCB Bank's offer of amalgamation under Section 48 of the Banking Companies Ordinance, 1962 along with other agenda items, if any. The company has declared the "Closed Period” from Dec. 3 - 7, 2016 (both days inclusive) as required under clause 5.19.15 of the PSX Rule Book (Code of Corporate Governance). BR. 105 CCP imposes PKR 150Mn fine on PSO The Competition Commission of Pakistan (CCP) has imposed a penalty of PKR 150Mn on PSO for allegedly running a deceptive marketing campaign for its products, "Premier XL" petrol and "Green Plus" diesel in violation of Section 10 of the Competition Act, 2010. BR. 145 GBP, 6-Dec-16, 133.2 135 125 115 EUR, 6-Dec-16, 112.5 USD, 6-Dec-16, 104.6 95 85 75 Dec-15 Mar-16 USD Jun-16 GBP Sep-16 Dec-16 Source: KCCI Research ; Oanda.com EUR Quote of the Day Heavy investments continue in 3G/4G infrastructure Companies providing cellular services continued to invest in advanced internet infrastructure development in a bid to tap millions of potential new users in Pakistan. The Pakistan Telecommunication Authority (PTA) has reported that cellular firms have invested another $ 659.4Mn in FY16. Whereas, cellular firms earned 22% (PKR 99Bn) of total revenues (PKR 453Bn) from sales of 3G/4G/LTE data in the year under review. Tribune. “The result of bad communication is a disconnection between strategy and execution.” ‘International moot to help project soft image of Karachi’ Mayor of Karachi Mr. Waseem has said that the international building and construction industry exhibition titled Build Asia Exhibition 2016 would send a positive image of Karachi to the rest of the world and help the metropolis to emerge among the world’s modern progressive cities in coming years. Dawn. Chart of the Day -2,052 -2,838 Travel Transport Insurance & Pension -1,281 -1,216 Intellectual property -534 -590 -202 -195 Financial services Maintenance & Repair -163 -154 Construction -103 -123 -90 -79 -1 -77 40 20 404 425 -2,000 -3,000 FY15 FY16 Other business Recreational services Value in $Mn Telecom & I.T SECP formulates draft listed cos rules SECP has formulated draft Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2016, under the Securities Act, 2015, keeping in view the best interests of the shareholders. These regulations will replace the existing Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2008, framed under the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance 2002. The news. 0 -1,000 Government services Auto industry eyes 0.5Mn cars production by 2025 Pakistan’s automobile industry is likely to double the annual car assembling to half a million units within the next 10 years if economic policies remain consistent and interest rate continues to bolster auto financing. According to the Auto Industry, if the present optimism persists, the market will touch 350,000 units of demand by 2025. The estimates are based on consistent economic policy, improved auto financing and lower interest rates. Tribune. 1,000 Total Cement stocks help propel index past 44,000 barrier PSX continued its upward charge on 6th Dec‘16, where they tossed the benchmark KSE-100 index above the 44,000 level for the first time ever. The index extended its gains by 459.43 points, or 1.05%, to close at a record 44,199.40. All that represents the market’s winning streak of 1,580 points in just the past four trading sessions. Gains in last session were underpinned by robust performance from cements on the back of a hefty 10% rise in dispatches coupled with highest-ever capacity utilization at 98.6% during the outgoing month. Dawn. 2,000 1,697 1,768 Nishat to develop 660MW coal power plant under CPEC NEPRA has admitted the application of Nishat Energy Limited (NEL) for consideration of the grant of generation license for its 660 (megawatt) MW proposed thermal generation facility. NEL to act as a special purpose vehicle and develop a 1x660 MW coal fired power plant at Liaqatpur Tehsil in Rahim Yar Khan. The project is intended to be financed from the Chinese banks under the CPEC government to government agreed framework as provided in the CPEC agreement. Daily Times. Pakistan's Trade in Services (Net) 3,000 -2,383 -2,963 CDWP clears seven projects worth PKR 6.9Bn CDWP has cleared seven development projects of cumulative estimated cost of PKR 6.9Bn, including approved provision of equipment for five cancer hospitals of PAEC at an estimated cost of PKR 1.2Bn and upgrading of National Institute of Science and Technical Education Islamabad into Skill University with an estimated cost of PKR 1Bn, including a foreign exchange component of PKR 276Mn. Dawn. Chuck Martin Source: KCCI Research, SBP 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