Pakistan Daily Economy Update - 7 October

Transcription

1. Oct . 7, 2017 KCCI - eBulletin ECC takes major decision on PM”s export package The Economic Co-ordination Committee (ECC) of the Cabinet has approved 50% incentive under the export package for eligible textile and non-textile sectors on the same terms as for the period from 1st Jan’17 to 30th Jun’17 without condition. A meeting of the ECC chaired by PM Abbasi considered the proposal of Commerce Ministry with respect to Prime Minister''s Export Package and decided that the remaining 50% of the rate of incentive would be provided if the exporter achieves an increase of 10% or more in exports as compared to last year. BR. Economic Coordination Committee takes sweeping measures to tackle growing deficits The government has decided to impose regulatory duties on up to 250 items, expanded the incentive package for exporters and increased the commission of dealers and OMCs on the sale of petrol by 33 paisa/liter. In addition, it also allowed private OMCs and dealers to charge the commission of their choice on diesel sales. Dawn. Deal inked with Chinese company to lift garbage from two Karachi districts Two more District Municipal Corporations (DMCs) of Karachi have inked agreements with a Chinese sanitation service group to lift piles of garbage in their limits as the Sindh local government minister hoped that the work would begin from next month. The DMCs of Malir and Karachi West, through their chairman and administrator, respectively, signed the agreement with the Hang Zhou Jin Jiang Group Sanitation Service Company Limited. Dawn. ECC deregulates margins on HSD for OMCs, dealers The ECC of the Cabinet has approved a proposal to deregulate the margins on HSD for the Oil Marketing Companies (OMC) and dealers under the policy of liberalization and deregulation. The impact of the policy would be reviewed after three months. It was also decided that OMCs would add Fuel Marker in HSD within six months at depot stage to avoid adulteration. It was decided that Ogra would develop a mechanism to monitor the OMCs commercial stock position, the dealers’ inventory system and Fuel Marker System. Nation. ECNEC agrees to revive Karachi Circular Railway Project A meeting of the Executive Committee of the National Economic Council (Ecnec) has approved 9 development projects, including revival of Karachi Circular Railways (KCR). Revival of KCR at a total rationalized cost of PKR 207.546Bn is to be completed under the CPEC framework. The project includes construction of 24 stations and procurement of 162 locomotives and will serve commutation of 515,000 passengers per day upon completion. Tribune/BR. FBR upgrades software to prevent fake refunds FBR has unveiled an updated version of its software Crest to help Inland Revenue’s offices plug revenue leakages on account of fake refunds. The updated computerized risk-based evaluation system (Crest) will enable tax officers to pinpoint sales tax audit cases. FBR statement said that this system will identify sure-short cases in order to increase revenue. The News. Pakistan advised to seek level-playing field under China FTA A report prepared by SBP has said that Pakistan should seek the same level of tariff concessions on its exports to China, as enjoyed by its competitors from East Asian countries on their products. This is likely to provide Pakistani exports an equal opportunity to compete with the competitors’ products in Chinese markets. The News. Fertiliser makers for export deadline extension Fertilizer manufacturer have urged the government to extend the deadline for fertilizer export from 31st Oct to 31st Dec and release subsidies announced in the budget 2015. According to industry data, between Jan’17 to Sep’17 only 335,000 tonnes fertiliser has been exported. A major chunk of exports are to India, Afghanistan and Central Asia but there is strict checking at the land routes. Dawn. Poor governance, corruption hamper food security: ADB Asian Development Bank in its report has claimed that Pakistan is facing formidable challenges to improving food security \ because of poor governance, lack of economic growth and instability within the country as well as on its borders. The country has to overcome the challenges to achieve durable societal development outcomes, which are fundamental to stable economic growth and future food security, says the report titled “Food Insecurity in Asia: Why Institutions Matter”. Dawn. Country to have surplus power after November: Sun The outgoing Chinese Ambassador to Pakistan, Sun Weidong, enlisted major outcomes of CPEC, saying that Pakistan will have surplus electricity after Nov’17. According to him, CPEC has already created 60,000 job opportunities. The ambassador stated this while briefing the Parliamentary Committee meeting on CPEC. BR. CPEC SEZs likely to face further delay The establishment of Special Economic Zones (SEZs), under CPEC, is likely to face further delay as the federal government and provinces are still far away from the finalization of the feasibility studies. Except KP, which has made some progress on the feasibility study on SEZs, the rest of the provinces are reportedly still in the preliminary stages. In a progress review meeting on the SEZs, Planning Minister Ahsan Iqbal expressed serious concern over the delay and issued instructions to undertake determined efforts regarding industrial cooperation for bringing out tangible outcomes prior to the 7th JCC Meeting. Nation. CPEC passes through disputed territory: US The Trump administration has informed Congress that it believes that CPEC passes through a disputed territory, originally an India claim aimed at thwarting the development plan. The CPEC passes through Pakistan’s northern areas, which India claims is part of the disputed Jammu and Kashmir territory. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 6-Oct 6-Oct 6-Oct 6-Oct 5-Oct 5-Oct 6-Oct 5-Oct 6-Oct 6-Oct PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.42 106.85 41,313 -11.00 49.87 1,268.7 44,571 16.59 6,430 6.17% 29-Sep $ Bn 19.76 0.02% 0.33% 2.09% NM** -0.08% -0.61% -0.29% -0.02% 0.00% 0.00% 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 155 145 GBP, 6-Oct-17, 137.8 135 125 EUR, 6-Oct-17, 123.5 115 105 95 Oct-16 USD Jan-17 GBP EUR Apr-17 USD, 6-Oct-17, 105.5 Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "The best argument against democracy is a fiveminute conversation with the average voter." Winston Churchill Chart of the Day International Investment Position of Pakistan - Assets 20.03 20.43 Reserve assets 7.34 6.57 Other Inv. 2.04 2.15 Direct Inv. 0.33 0.39 Portfolio Inv. 0.02 0.02 Derivatives 0 5 10 1QFY17 15 20 25 1QFY18-P Value in $Bn for the period eneded 1QFY18 Source: KCCI Research, SBP Sustainability of G20 growth ‘not assured’, says IMF The IMF has called on the world’s largest economies to address stalling growth and productivity and worrisome current Disclaimer accounts imbalances, saying the global recovery is not guaranteed to continue. In a report on the economic health of Group This report has been prepared by KCCI Research & Development Cell. The information of 20 nations, the IMF said group members had made substantial progress in spurring recovery after the Great Recession, 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 with growth stabilizing and unemployment falling. Dawn. 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