Pakistan Daily Economy Update - 7 March

Transcription

1. Mar . 7, 2017 KCCI - eBulletin Economic Indicators CPEC open to all countries: Chinese envoy While speaking at a seminar titled “Priorities and Challenges to CPEC”, Chinese Ambassador Sun Weidong has said that CPEC is open and inclusive to all countries and the ports in the region should complement each other. The Chinese Ambassador has also said that all projects under CPEC are ahead of the schedule and would be completed well on time where so far, work on 18 early harvest projects has been started and it has created around 13,000 jobs for the local people. Furthermore, Planning Minister Ahsan Iqbal also said that 1% of the budget for CPEC projects is being spent on security, but it is being treated as development expenditure. The Nation. USD-Interbank USD-Open MKT KSE-100 index FIPI PSM board meets next week to allocate land for CPEC Moving swiftly to implement the Prime Minister's orders, the government has reconstituted the board of directors of Pakistan Steel Mills and has convened its urgent meeting next week to allocate about 1,500 acres of land for the CPEC amid opposition by the Sindh government. The 10-item agenda for the first meeting of the board will include election of the chairman and the meeting will mostly take up land-related issues besides review of some follow-up actions of past transactions. Dawn. Envoy encourages Canadian companies to invest in Pakistan Pakistan’s High Commissioner to Canada has invited Canadian companies to cash in on the investment opportunities emerging in Pakistan as a consequence of economic boom and demographic dividends. In a meeting with Manitoba Chamber of Commerce President, he said that there is a huge potential for Canadian firms to capitalize on the growth that has led to a huge demand for consumer goods. He asked the chamber president to form a delegation of investors for a trip to Pakistan in order to explore investment opportunities, meet Pakistani counterparts and forge linkages. Tribune. Kuwaiti businessmen urged to invest in Pakistan PM Nawaz has said that Pakistan offers an ideal and conducive environment for foreign investments and urged the Kuwaiti business community to explore investment opportunities here in Pakistan. In a meeting comprising members of the Kuwait Chambers of Commerce at Bayan Palace, PM said that his government will ensure all possible assistance and facilitation for investors. Dawn. Govt. will consider removal of regulatory duty on ‘auto grade steel’: Miftah Dr Miftah Ismail, chairman Board of Investment, has said that govt. would sympathetically consider PAAPAM’s proposal for removal of regulatory duty on ‘auto grade steel’ in the coming budget. At the closing ceremony of the Pakistan Auto Show (PAPS 2017), he further said that Renault, Hyundai and KIA are committed to setting up assembly plants in Pakistan and that car market is expected to grow by 30%, as existing OEMs are investing in new plants. The Nation. Chinese truck makers eye Pakistan as roads and market expand A greater number of trucks plying along the CPEC are likely to be Chinese as the country’s manufacturers aim to penetrate further and gain share in a market currently dominated by Japanese players. In the recently-concluded Pakistan Auto Parts Show (PAPS) held at the Karachi Expo Centre, Chinese truck and bus manufacturers made their presence felt. The CPEC is also expected to generate huge demand for trucks in Pakistan thus, creating opportunities for all companies from mid-tier to high-end categories. Tribune. Nepra ends upfront tariff regime for solar generation Nepra has put an end to upfront tariff regime and tariffs for the new solar PV power projects in the country would be awarded through competitive bidding. To facilitate development of power generation from solar PV, the authority had determined three upfront tariffs in the past. However, stakeholders are of the view that the sudden change in policy will hamper investment in the sector, as framework for competitive bidding and underlying documentation had not yet been developed. The News. Govt. spending PKR 132Mn on Badin coal deposits The govt. is spending PKR 131.61Mn on evaluating large coal reserves of Badin as confirmed by the Geological Survey of Pakistan (GSP) in 2014. According to the Ministry of Petroleum and Natural Resources, this amount will be used for appraising newly discovered coal resources in Badin and its adjoining areas in southern Sindh. According to the GSP, coal deposits are estimated to be over 1Bn tons in these areas. Tribune. SECP intensifies crackdown on in-house badla financing SECP has started taking strict measures to curb illegal financing in the wake of recent defaults by brokers. Though in-house badla financing was banned by the 2006, but the practice continued because of limited legal options which are margin trading and margin financing. Dawn. Chinese arrive to work on Quetta train project A team of Chinese engineers and experts has arrived in Quetta to start work on the Quetta Mass Transit Train Project. The Balochistan government had allocated PKR 1Bn as an initial amount for the project in the current provincial budget. Dawn. Auto loans increase by 32% to PKR 30.7Bn in 2016 It seems that quality is not one of the key drivers of growth of the local motor vehicle assembling industry in Pakistan, as easy auto financing remained a major contributor to auto sector's trade in CY16. SBP figures has revealed that the auto financing increased by 32% to PKR 30.7Bn in 2016 and its share in consumer financing has also grown as well. During CY16, locally assembled automobile sales increased to 268,379 units compared with 182,497 last year. Dawn. Cement industry witnesses negative growth in Feb.’17 The cement industry has registered negative growth for the first time in FY17, as total dispatches in Feb'17 declined 0.41% to 3.44Mn tons against 3.45Mn tons in Feb.’16. Exports declined 45% to 0.25Mn tons in Feb.’17 while domestic consumption remained at 3.18Mn tons. During 8MFY17, industry dispatched 26.34Mn tons cement showing an overall growth of 6.36% over 8MFY16; domestic consumption increased by 9.12% but exports declined by 8.54%. The Nation. Pak-Afghan border opens for two days Pakistan has decided to open its border crossings with Afghanistan for 2 days in order to allow the people with valid visas stranded on both sides of the border to cross into their native country. The crossing points at Torkham and Chaman will be open on 7th and 8th Mar’17. Tribune. List of Indicators Date / Period Unit Value Change Daily Crude (AP'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M 6-Mar 6-Mar 6-Mar 6-Mar 6-Mar 6-Mar 6-Mar 6-Mar 6-Mar 6-Mar PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 107.00 49,435 5.10 53.20 1,227 43,585 17.76 7,379 6.12% Forex Reserves 24-Feb $ Bn 21.82 0.00% -0.47% -0.38% NM** 0.06% -0.70% 3.15% -1.09% 1.47% 0.00% WoW -0.49% YoY -1.86% -3.21% 13.65% -28.68% -90.24% Jul-Jan 17 Remittances $ Bn 10.95 Jul-Jan 17 Exports* $ Bn 11.69 Jul-Jan 17 Imports* $ Bn 29.11 Jul-Jan 17 Trade Balance* $ Bn -17.43 Jul-Jan 17 Current Account $ Mn -4,716 % 3.85 Avg. CPI-FY17* Jul-Feb 17 Jan-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Mar-16 USD GBP, 6-Mar-17, 127.0 EUR, 6-Mar-17, 109.7 USD, 6-Mar-17, 103.5 Jun-16 Sep-16 GBP Dec-16 Mar-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day “When you disarm the people, you commence to offend them and show that you distrust them either through cowardice or lack of confidence, and both of these opinions generate hatred.” Niccolo Machiavelli Chart of the Day YEARLY QUANTUM INDEX OF MANUFACTURING (6MFY12 -6MFY17) 130 129.83 124.97 125 120.22 120 117.06 115 108.43 110 105.71 105 8MFY12 8MFY13 8MFY14 8MFY15 8MFY16 8MFY17 Source: KCCI Research, PBS 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