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Pakistan Daily Economy Update - 7 September

IM Insights
By IM Insights
1 year ago
Pakistan Daily Economy Update - 7 September


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  1. September 07 , 2022 KCCI - eBulletin FCA relief package: 1.8Mn ‘eligible’ KE consumers to be benefited KE has said that following PM’s announcement of FCA relief package for Jun’22, as many as 1.8Mn eligible electricity consumers are receiving benefit and being delivered adjusted bills for Aug’22 with extended due dates. The announcement of Jun’22 FCA for Non-ToU Residential Consumers was extended to power consumption up to 300 units in Jun’22. All eligible consumers who have already paid their non-revised Aug’22 bills will receive adjusted bills for Sept’22. BR. WHO warns of worsening situation in Pakistan Amid WHO’s warning that the humanitarian situation in flood-ravaged Pakistan is expected to get worse, Japan pledged to give emergency aid of $ 7Mn, Qatar launched an air bridge and the UN refugee agency mounted a huge airlift operation from Dubai. WHO said over 1,460 health centers had been damaged, of which 432 were fully wrecked, mostly in Sindh. More than 4,500 medical camps have been set up by the WHO and its partners, while more than 230,000 rapid tests for acute watery diarrhoea, malaria, dengue, hepatitis and chikungunya have been distributed. Such diseases are already circulating in Pakistan, alongside Covid-19, HIV and polio, and “now all these are at risk of getting worse”, WHO spokesman Tarik Jasarevic said. Dawn. Alarming PKR 2.7Tn hike in July debt In an alarming development, public debt in Jul’22 increased by PKR 2.7Tn – at an average of PKR 88Bn a day. According to SBP, total debt has shot up to a new record of PKR 50.5Tn, which now equals three-fourth of the nation’s economy and is eating up 42% of the federal budget. Tribune. Shares buyback: SECP revises eligibility requirements for listed cos SECP has issued an SRO to amend the Listed Companies (Buy-Back of Shares) Regulations, 2019. According to the amended regulations, the purchasing company shall not be on the default counter and has not defaulted on any debt instrument supported by the auditors’ certificate, among other conditions. BR. RDA inflows reach close to $ 5Bn Inflow of investment in Roshan Digital Accounts (RDA) hit the $ 5Bn mark in Aug’22, helping stabilize Pakistan’s forex reserves. Overseas Pakistanis sent $ 187Mn through the RDA in Aug’22, taking total gross inflows to $ 4.98Bn in two years since launch of the investment scheme in Sept’20. Tribune. 33 projects completed at increased costs, Senate body told The sub-committee of the Senate Standing Committee on Communications was informed that 33 projects were completed at increased costs — almost 13% more than the initial bid. Main reasons for increased costs of projects were difference between financial funds and financial phasing in PC-I, cost escalation, additional scope of work and land acquisition issues. BR. QTA for Q-4: Discos given PKR 3.40/unit tariff hike Nepra has approved an increase of PKR 3.40/unit in tariffs of Discos to recover additional amount of PKR 95.145Bn from consumers for 4QCY22 under QTA mechanism. Discos’ in their tariff QTA adjustment sought on account of capacity charges, transmission charges and Market Operator Fee (MOF), impact of Transmission & Distribution (T&D) losses on FCA and variable operation and maintenance charges. 4QCY22 adjustment also includes impact of additional recovery on incremental sales, i.e., Apr-Jun’22 in line with the notified mechanism in this regard. BR. AIIB mission, WAPDA chief discuss assistance for projects Business Development Mission of Asian Infrastructure Investment Bank (AIIB), showed keen interest in financing WAPDA projects. The DG (Investments) said AIIB and WAPDA would remain closely associated and look into the possibilities of financial assistance for WAPDA projects. Meanwhile, AFD Energy Mission also had a meeting with Chairman WAPDA to finalize the loan agreement for Keyal Khwar Hydropower Project, and discuss issues related to Warsak Project. BR. 46 foreign flights with relief items received: FO According to Foreign Office, a total of 46 flights loaded with humanitarian assistance have reached the country so far from different countries, including international humanitarian organizations. BR. Maritime Ministry donates PKR 70Mn to PM’s Relief Fund Ministry of Maritime Affairs has made a donation of worth PKR 70Mn to PM’s Relief Fund. PQA had donated a cheque for PKR 50Mn while KPT donated PKR 20Mn respectively. BR. \ PM for a comprehensive rehabilitation plan PM Shehbaz Sharif said that the govt. had decided to increase the disbursement of funds among the flood affectees to PKR 70Bn, through the BISP. The PM stated that PKR 20Bn have already been distributed among the flood victims, whereas, another PKR 8Bn will be distributed in a few days. PM also added that a grant of PKR 15Bn has been announced by the federal govt. for Sindh. BR. List of Indicators Date / Period Unit Value Change Daily USD-Interbank USD-Open MKT 6-Sep 6-Sep PKR PKR 221.42 232.25 0.71% 4.62% KSE-100 index FIPI 6-Sep 6-Sep Pts. $ Mn 41,860 -1.24 0.00% NM** Crude Oil 6-Sep $/bbl 86.88 -2.34% Gold 6-Sep $/oz 1,712.9 -0.69% Gold (10g) Local 6-Sep PKR 121,740 1.00% Silver 6-Sep $/oz 17.80 -1.61% Cotton(KHI)-40 kg 6-Sep PKR 22,506 5.00% Kibor-6M 6-Sep % 15.99 -0.01% Forex Reserves 12-Aug $ Bn 13.61 WoW 0.38% Remittances Jul-22 $ Bn 2.52 -6.77% Exports* Jul-22 $ Bn 2.22 -4.76% Imports* Jul-22 $ Bn 4.86 -10.48% Trade Balance* Jul-22 $ Bn -2.64 14.77% Jul-22 Jul-Jun 22 $ Bn $ Bn -0.85 1.87 -10.1% 1.13% YoY Current Account Foreign Direct Inv. Jul-Jun 22 LSM Growth* % 11.70 % 24.93 Jul-22 Avg. CPI Discount Rate % 15.00 Jul-22 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful, WoW= week on week; YoY=Year on Year Major Currencies 305 295 285 275 265 255 245 235 225 215 205 195 185 175 165 155 145 Sep-21 GBP, 6-Sep-… EUR, 6-Sep-22, 231.3 USD, 6-Sep-22, 232.3 Dec-21 GBP USD Mar-22 EUR Sep-22 Source: KCCI Research Quote of the Day “Nature has given us all the pieces required to achieve exceptional wellness and health, but has left it to us to put these pieces together.” Diane McLaren CENTRAL GOVERNMENT'S EXTERNAL DEBT ($ TN) Edibles for flood-hit areas: PKR 540Mn grant sought for USC Ministry of Industries and Production (MoI&P) has sought PKR 540Mn through Supplementary/Technical Supplementary Grant against supply of essential food items in flood-affected areas immediately in favor of Utility Stores Corporation. BR. 34.63% 16.75 RLNG plants’ sell-off: FA Credit Suisse to be reengaged Govt. has decided to reengage Financial Advisor M/s Credit Suisse, Singapore for privatization of two RLNG-fired power plants of National Power Parks Management Company Limited (NPPMCL). PC on 26th Apr’22 forwarded the draft addendum to M/s Credit Suisse for extension of another period of 15 months on the same terms & conditions laid down in FASA dated 30th Apr’19. BR. Disbursement of global donations to people affected by floods: TI-P urges PM to ensure transparency PM has been sent recommendations from Transparency International-Pakistan (TI-P) on how to handle international donations for flood victims in a transparent manner. These include involvement of affected communities in the process, setting up a national tracking system, establishing grievance procedures, and conducting internal and external audits. BR. Jun-22 6.96% 41.81% 11.06 -1.25% -2.09% 8.69% 4.49 4.88 4.78 11.82 5.20% 12.44 31.72% 9.25% 7.80 13.45% 5.42 5.92 No taxes on relief goods The govt. has exempted duty and taxes on local and international supply of goods for flood-relief operations, for a period of 90 days effective from 30th Aug’22. Dawn. Govt. opens purse to appease allies In total disregard for the evolving flood catastrophe, the govt. has included four dozen new projects worth PKR 78Bn in PSDP seemingly to appease the coalition partners and diverted PKR 23Bn to finance these schemes. The coalition govt. rushed through the approval process — a prerequisite to release funds for these 47 schemes — after the bureaucracy at the planning and development ministry refused to give funds in the absence of regulatory cover. This comes at a time when floods have caused an estimated $ 11Bn to over $ 12Bn losses to the economy, including infrastructure. Tribune. Half of Asia-Pacific workforce surviving on $5.5/day Half of the Asia-Pacific region’s workforce is poor or on the verge of poverty, surviving on $5.5/day, according to a report released by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). The report said that with more than half the region’s population excluded from any social protection, the workforce is highly vulnerable to systematic shocks such as pandemics or economic downturns. Relative to men, women are more likely to have an informal job in 15 countries, which is particularly high in Pakistan. Dawn. Note If any member is facing any issues pertaining to PakistanAfghanistan investment and trade policies or has project proposals is requested to share the information at secretary@kcci.com.pk for forwarding to the Board of Investment.