Pakistan Daily Economy Update - 8 December

Transcription

1. Dec . 8, 2016 KCCI - eBulletin Textile export industry hails gas tariff reduction The textile export industry appreciated the decision of Finance Minister for reducing gas tariffs for the industry. Millers further said that the electricity tariffs needed to be brought down to PKR 9/Kilo watt and 1% income tax collected at export should be done away with. Similarly 0.25% Export Development Fund should also be withdrawn. They have also demanded release of withheld Duty Taxes Remission on Export amount which was stuck up in billions of rupees with the government. Daily Times. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank 7-Dec PKR 104.77 -0.05% USD-Open MKT 7-Dec PKR 107.10 0.00% KSE-100 index FIPI 7-Dec 7-Dec Pts. $ Mn 44,495 -1.17 0.67% NM** Crude (JA'17) 7-Dec $/bbl 49.90 -1.64% Gold (JA'16) 7-Dec $/oz 1,174 0.47% Gold (10g) Local 7-Dec PKR 42,342 0.92% Silver (JA'16) 7-Dec $/oz 17.18 2.75% Cotton(KHI)-40 kg 7-Dec PKR 6,843 0.00% Kibor-6M 7-Dec % 6.12% -0.01% 25-Nov $ Bn 23.60 -1.11% Remittances Jul-Oct 16 $ Bn 6.26 -3.82% Population census will be held from Mar. 15 - May 15, 2017: Federation assures SC The Federation has assured the Supreme Court of holding long-delayed population census from Mar. 15 to May 15, 2017 in the country. In this regard, any violation of commitment shall lead to contempt proceedings against the official concerned and the govt. In this regard, additional Attorney General for Pakistan Waqar Rana submitted a concise statement on behalf of the federation, signed by additional secretary of statistical division. BR. 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% ‘Keti Bundar, KCR to be included in CPEC’ Sindh C.M has said the federal government has approved inclusion of the projects of Keti Bundar port and Karachi Circular Railway in the CPEC. During his unplanned visit to Thatta-Sujawal bridge on Indus river he said that PKR 3Bn bridge constructed parallel to the old one would greatly help overcome traffic problems and after completion of the construction of dual carriageway from Karachi to Thatta, the next phase of the road from Thatta to Hyderabad would be started next year. Dawn. Nov-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year 17% GST maintained at PKR 400 per MMBTU for industries: Khaqan Petroleum Minister Shahid Khaqan Abbasi has said that the govt. has maintained a 17% GST on the gas sale price for the industrial sector at PKR 400 per MMBTU. Petroleum Ministry and FBR had proposed increase in GST from PKR 102 per MMBTU on gas sale price of PKR 600 per MMBTU to PKR 200 on revised price of PKR 400 per MMBTU. However, this proposal has not been sailed through ECC presided over by the Finance Minister Senator Ishaq Dar. BR. ‘FTAs costing Pakistan dearly’ The Senate Standing Committee on Commerce noted that FTAs have adversely affected Pakistan’s trade with partner countries, with the FBR estimating a revenue loss of around PKR 40Bn per annum due to preferential trade agreements. It was highlighted that trade deficit ratio of exports and imports with China has increased from $ 4Bn to $ 12Bn. Secretary Commerce informed the committee that import volume has gone up irrespective of FTAs and ministry is in structured discussion in the process to help avoid trade deficit and to safeguard local manufacturers and farmers. Dawn. World Bank cancels $100Mn loan The World Bank has cancelled a $ 100Mn loan approved for a natural gas efficiency project citing a lack of interest on the part of a Pakistani gas distribution company. The project, which was to be carried out by SSGC in its distribution areas in Karachi, interior Sindh and Balochistan, was aimed at enhancing the supply of natural gas by reducing physical and commercial losses of gas in the pipeline system. Dawn. PPL gas output jumps 10% to cross 1BCFE per day milestone The Pakistan Petroleum Ltd (PPL) the country’s 2nd largest hydrocarbon producer announced that it had crossed 1Bn cubic feet equivalent (BCFE) per day of production level, up 10% against a year before. This has been made possible largely due to the company’s structural reorganization to an asset-based hybrid set-up in mid-2015, enabling renewed focus to optimise reserve replacement and production from mature assets and fields. Dawn. Power ministry to bear impact of PKR 50Bn waived from Sindh’s bills The Ministry of Finance has refused to shoulder the burden of PKR 50Bn waived from electricity bills of the Sindh govt., insisting that the Ministry of Water and Power will have to bear the impact of write-off. However, the ministry said a fresh arrangement with the Sindh govt. that waived PKR 50Bn from its outstanding bills was a deviation from the CCI’s decision. Moreover, the rationale behind the settlement had not been clearly spelled out, neither any rule nor a policy suggested to write off PKR 50.18Bn out of total arrears of PKR 77.54Bn. Tribune. Economic relations: Pakistan’s envoy to Bosnia encourages trade ties Pakistan’s Ambassador to Bosnia Lt. General (Retd) Saleem Nawaz in a meeting with Karachi Chamber of Commerce and Industry has assured full support for the KCCI in all its initiatives for promoting trade and investment ties with Bosnia. The Ambassador said that the Pakistan’s embassy in Bosnia would welcome all suggestions for trade relations enhancing the existing trade and investment ties between the two countries. Tribune. Japan, UNOPS Pakistan launch pilot project in transport sector The Embassy of Japan and the United Nations Office for Project Services (UNOPS) Country Office in Pakistan have signed a UNOPS pilot project aimed at the development of women-specific transport service in selected districts of Khyber-Pakhtunkhwa. The envisaged project is to be implemented by UNOPS Pakistan office in partnership with the K-P Transport Department and UN Women through the financial support of the Japan govt., which is contributing 191Mn JPY ($ 1.79Mn) for the duration of the project. Tribune. MCB Bank, NIB approve merger scheme MCB Bank and NIB Bank have approved the amalgamation scheme through a share swap arrangement. The banks approved the swap ratio of one share of MCB Bank for every 140.043 shares of NIB Bank. NIB Bank has said in a stock notice that as a consequence of the proposed amalgamation, 73,569.197 shares of MCB shall be issued in aggregate in favor of the shareholders of NIB Bank on the basis of a swap ratio of one share of MCB for every 140.043 shares of the bank. Dawn. ADB to help formulate road map for Railways The government and the Asian Development Bank have agreed to jointly formulate a road map for the development of Pakistan Railways. The strategic plan will be aligned with the targets set in the ‘Vision-2025’, CPEC and the Central Asia Regional Economic Cooperation Programme. ADB has already approved $ 600Mn to help Pakistan roll out major structural reforms to improve the performance and financial sustainability of its public sector enterprises. Dawn. List of Indicators WoW Forex Reserves YoY Major Currencies 175 165 155 145 GBP, 7-Dec-16, 132.5 135 125 115 EUR, 7-Dec-16, 112.6 USD, 7-Dec-16, 104.9 105 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 "'An organization, no matter how well designed, is only as good as the people who live and work in it." Dee Hock Chart of the Day Production of Coal and lignite in Top Ten Countries (2015) 3,538 China 820 US 764 India 471 Australia 387 Indonesia 349 Russia 248 South Africa 186 Germany Poland 136 Kazakhstan 107 0 500 1,000 1,500 Value in Mn Tons 2,000 2,500 3,000 3,500 4,000 Source: KCCI Research, Enerdata Disclaimer Foreign commercial loans: Tax exemption likely on interest payments The govt. may grant tax exemption on interest payments on money borrowed under certain foreign commercial loans as well as This report has been prepared by KCCI Research & Development Cell. The information contained on interest payments accrued on these transactions since 2013. Under the Rules of Business 1973, the finance division is 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. responsible for arranging finances to meet current and development expenditure needs of the country. Foreign commercial loans are offered with the condition that taxes applicable in Pakistan would not be borne by the lenders. The option available 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 with the GoP is either to bear the cost of these taxes or to grant exemption from such taxes. BR. accuracy. Contact: res@kcci.com.pk