Pakistan Daily Economy Update - 8 April

Transcription

1. Apr . 8, 2017 KCCI - eBulletin Murad vows to make Karachi ideal for investment Sindh CM while inaugurating the three-day “14th My Karachi: Oasis of Harmony” exhibition at Karachi Expo Centre organized by KCCI has said that his government is channelizing available resources to upgrade the infrastructure of the city. He revealed that the government is working on the feasibility for construction of a convention-cum-expo centre in the city. He promised to pursue the federal government to settle the issue of GIDC to the satisfaction of all the stakeholders and agreed to look into the issue of double taxation after the devolution. The chief minister assured that the development work on many projects in Karachi will complete within the next three months. Dawn. Pakistan could soon see these electric cars on its roads Pakistan could soon see electric cars plying on its roads as the maker of Super Power motorcycles displayed two variants it intends to start selling within the next three months. The compact vehicles can go up to a maximum of 50km/h and would need to be charged for seven hours to travel a distance of 120km.The electric cars are currently on display at the ’14th My Karachi-Oasis of Harmony’, a threeday exhibition organized by KCCI at the Karachi Expo Centre. During the exhibition which is to run from 7 - 9th April’17, local and foreign exhibitors will be showcasing their products and services in front of around 1Mn visitors. The exhibition provides a perfect platform for B to B and B to C meetings, besides providing expanded recreational facilities to Karachiites who densely participate in this glittering event every year. Tribune. Tax revenue to rise 17%, IMF assured The government has assured the IMF that it will record 17% growth in the collection of federal taxes in the last quarter of FY17. The assurance came at the conclusion of Article IV consultations with the IMF team in Dubai. Dawn. FBR sets PKR 1.19Tn target for 4QFY17 FBR has fixed PKR 1.19Tn revenue collection target for 4QFY17 with a projected growth of 16%. The target of direct taxes has been projected at PKR 480.7Bn; sales tax at PKR 454.9Bn; Federal Excise Duty (FED) at PKR 85Bn, and target of customs duty has been fixed at PKR 173.6Bn for the 4QFY17. The revenue collection target for Apr.’17 has been set at PKR 290.7Bn while target for May’17 has been fixed at PKR 346Bn. BR. RPOs of dubious cases to be investigated: FBR FBR has decided to conduct investigation and audit of sales tax Refund Pay Orders (RPOs) of dubious cases for TY17, which did not match with the new parameters communicated to the LTUs and RTOs. The scrutiny parameters for sales tax refund claims include: refund claim is to be commensurate with exports; packing materials’ refund claimed is disallowed; purchase and sales declaration and goods description as in the return should match with details in refund claim data and input tax claimed is in accordance with the details in provisions of sections 7 and 8 of the Sales Tax Act, 1990. BR. Textile Millers demand immediate payment of refunds Pakistan’s textile millers have urged PM and FM against FBR’s rolling back of all sales tax RPOs issued to the export-oriented sectors. They have urged govt. to direct FBR to make payments without any further delay. They have said that only immediate payment of all outstanding refunds of sales tax to claimants against the already issued RPOs could save the industry from collapse. The Nation. Senate body defers Companies Bill till next meeting Senate’s Finance Standing Committee has deferred the Companies Bill 2017 till next meeting for approval, as the committee is thoroughly discussing the bill that has 515 clauses. The Nation. Chinese firm keen to set up $ 2Bn oil refinery in Sindh Pakistan is expected to slash its spending on import of petroleum products as a Chinese company has shown keen interest in setting up a huge oil refinery with an investment of $ 2Bn in Sindh. The refinery will have an installed capacity to process 10Mn tons crude oil annually. Tribune. To repay Eurobond debt, Pakistan likely to borrow $ 750Mn from China Pakistan may borrow another $ 750Mn as a short-term foreign commercial loan from China, to pay back $ 750Mn Eurobond debt. Underscoring the fact that the country is no more able to retire its debt from own resources. Tribune. SECP could shut rogue charity companies The govt. is likely to get legal powers next month to revoke licenses of charitable and not-for-profit organizations working against the country’s national interests, sovereignty and public order. The federal govt. has proposed a stringent legal regime for issuing licenses to charitable and not-for-profit organizations in the Companies Bill 2017, which is currently under scrutiny of the Senate Standing Committee on Finance. Tribune. Pakistan welcomes Britain’s desire to join CPEC Pakistan has warmly welcomed Britain’s desire to become a key partner in CPEC after the UK expressed its willingness to join the multibillion dollar project. According to the Minister for Planning, Development and Reforms, several other countries in the European Union (EU) and Central Asian Republics were also evincing keen interest in the mega project, apart from the UK. Tribune. Sindh demands irrigation water to save its economy as shortfall reaches 55% The Sindh government has taken up the matter of ‘alarming’ shortage of irrigation water which has now reached 55%, more than thrice what the Indus River System Authority (Irsa) had promised for the season. According to the water accord Sindh should get flow of 40,000 cusecs of water, but currently Sindh is getting only flow of 21,000 cusecs. Dawn. Pay farmers before exporting sugar, SBP tells millers SBP has said that no sugar mill can export sugar unless it has cleared outstanding dues of farmers up to the last season and has started crushing at full capacity. In the wake of surplus sugar production in the country the government allowed the export of 200,000 tonnes of sugar for this season but the SBP came out with a number of conditions to make the exports possible. Dawn. BCL pulls out of Dewan deal Bestway Cement Ltd (BCL) in a filing to the PSX has said that it is pulling out of a deal to acquire Dewan Cement Ltd’s (DCL) north plant due to delay and uncertainty arising out of the recent legal proceedings initiated in the Sindh High Court. Dawn. Financial inclusion is govt’s priority: Dar Finance Minister Mr. Dar while chairing the fifth meeting of the National Financial Inclusion Strategy (NFIS) Council, which was also attended by Queen Maxima of Netherlands has said that the financial inclusion is a priority for the government as it ensures inclusive economic development and prosperity. Dawn. Govt’s plan of privatizing PSEs moving at snail’s pace The govt.’s plan of privatizing Public Sector Entities (PSEs) is moving at snail’s pace, as it had not privatized any entity since Aug.’15. The incumbent govt. after coming into power in Jun.’13 had announced to privatize 69 PSEs. However, it has so far privatized profit-making entities as it generated had PKR 2.5Bn in FY16 by privatizing NPCC only and PKR 177Bn through privatisation in FY15. However, the govt. failed to privatize any single entity within ongoing FY17. The Nation. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 7-Apr 7-Apr 7-Apr 7-Apr 6-Apr 6-Apr 7-Apr 6-Apr 7-Apr 7-Apr PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.85 106.35 47,889 -0.08 51.67 1,252 43,671 18.27 7,234 6.17% 31-Mar $ Bn 21.55 0.00% -0.09% 1.13% NM** 1.59% -0.32% 0.39% -0.22% 0.00% 0.00% WoW -1.12% YoY -2.52% -3.90% 15.99% -34.33% -120.51% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (AP'17) Gold (MA'17) Gold (10g) Local Silver (MA'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-Feb 17 Remittances $ Bn 12.36 Jul-Feb 17 Exports* $ Bn 13.32 Jul-Feb 17 Imports* $ Bn 33.52 Jul-Feb 17 Trade Balance* $ Bn -20.20 Jul-Feb 17 Current Account $ Mn -5,473 % 4.01 Avg. CPI-FY17* Jul-Mar 17 Mar-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 Apr-16 GBP, 7-Apr-17, 130.4 EUR, 7-Apr-17, 111.5 USD, 7-Apr-17, 104.9 Jul-16 USD Oct-16 GBP Jan-17 Apr-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day “The best years of your life are the ones in which you decide your problems are your own. You do not blame them on your mother, the ecology, or the president. You realize that you control your own destiny.” Albert Ellis Chart of the Day 18 16 TOP MANGO PRODUCING COUNTRIES 15.19 14 12 10 8 6 4.35 4 2.60 2 2.13 1.89 1.83 1.25 0.89 0.85 0.80 - Unit in Mn tons for 2014 Source: KCCI Research, FAOSTAT 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