Pakistan Daily Economy Update - 8 November

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1. Nov . 8, 2017 KCCI - eBulletin Bank of China’s Pakistan operations inaugurated President Mamnoon Hussain has expressed confidence that Bank of China operations in Pakistan will help accelerate infrastructure development and overall economic growth of the country. Addressing the official opening ceremony of Bank of China Pakistan operations in Islamabad, the President said Pakistan is an attractive investment destination because of its ideal location and business friendly policies. He assured Bank of China of every possible cooperation from the government and the SBP. On the occasion, Acting Ambassador of China to Pakistan Zhao Lijian said that both Pakistan and China have made remarkable achievements in the economic field. The Nation. Next STPF in consultation with private sector Commerce Minister Pervaiz Malik has said that the govt. will develop the next Strategic Trade Policy Framework (STPF) in consultation with the private sector to promote the country's trade and exports. In this respect, a comprehensive consultative dialogue would be held with private sector to get its input for the next STPF. In a meeting with the business community, the Minister said that govt. would consider rationalization of taxes on real estate sector. The business community advised that TDAP's policies should be reviewed with particular focus on promoting regional trade and identifying new markets for trade promotion. The Nation. SBP takes notice of fake currency notes in ATMs Taking serious notice of the reports regarding distribution of fake currency notes from the ATMs, SBP has issued directives to keep video data of the CCTV installed at ATMs for 60 days. In this regard, SBP has also amended its previous orders regarding use of special uniforms, pocketless dress by Note Sorting Staff. Customers using ATMS for cash withdrawal got fake currency notes which are later not exchangeable by the banks and is considered to be a total financial loss of the ATMs user. These ATMS normally provide fake currency notes of PKR 500 and PKR 1,000 and it is only possible when the bank staff refilled the machines. The Nation. On K-Electric’s request, Power Division seeks tariff revision As K-Electric (KE) is still concerned about a lower-than-expected tariff increase announced by Nepra, the Power Division has asked the regulator to reconsider the tariff revision in national interest. KE may challenge Nepra’s decision in court if the regulator did not reconsider the request for revision in the tariff determination. KE is of the view that the tariff determination made by Nepra in response to the company’s multi-year tariff review motion filed in April 2017 would have far-reaching implications for the people and electricity supply in Karachi as it would impair business viability and limit its ability to execute investment plans. This could result in more load-shedding in the city. Tribune. NTDC team to study Chinese smog-proof model of power A team of NTDC experts has left for China to study model of electricity being developed for smog in Beijing’s to implement the same in the smog-hit areas in Pakistan. The directions for the same were passed in a special meeting of the Power Division to assess the situation arising due to outages caused by the new weather conditions. Power Division’s Minister directed that immediate measures like installation of antismog and anti-fog disc be taken at critical points to ensure uninterrupted power supply to the consumers as there is no shortage of generation in the country. The Nation. After Honda complaint, Hascol asks govt to limit chemical content in petrol After the complaint filed by Honda Atlas Pakistan, Hascol Petroleum has suggested to the government to revise and upgrade petrol specifications, believing it will ensure safety of vehicles, protect environment and pose no threat to public health. In a letter sent to the Petroleum Secretary Hascol recalled that after the govt. decision in Nov’16 to upgrade the quality of motor gasoline, refineries and suppliers to started adding a high dosage of Methylcyclopentadienyl Manganese Tricarbonyl (MMT) to motor gasoline. MMT increases manganese content in motor gasoline which reacts with catalytic converter and chokes it, besides having adverse impact on human health due to air-borne metallic particles. Tribune. CCP gives go-ahead to Edotco for acquisition of Jazz tower business The Competition Commission of Pakistan (CCP) has given permission to Edotco, Asia’s largest tower infrastructure company based in Malaysia, to acquire Jazz’s tower business in return for $ 940Mn. In Aug’17, Edotco Group in partnership with Dawood Hercules Corporation Ltd (DH Corp) had announced the acquisition of approximately 13,000 towers from Pakistan Mobile Communications Limited (Jazz).Tribune. FBR examines impact of import tax incentives on exports FBR is scrutinizing tax exemptions granted on textile machinery import and their subsequent impact on exports and industrial expansion to spot on any misuse of facility. Government granted massive concessions and tax exemptions on textile machinery and raw material imports for the past 7 years, but preliminary studies reveal that such facilities do not reflect in local manufacturing or exports. The News. 430km Lahore-Peshawar oil pipeline to be laid The govt. is planning a 430km oil pipeline to be laid from Lahore to Peshawar at an estimated cost of PKR 56Bn to be completed within two years. The project is envisaged to be ready for operation during FY19- FY20 at the estimated cost of PKR 56Bn. However, it may vary as the \ bidding process will determine the cost for each section of the pipeline. The bidder will have choice to tender for any or all the sections. BR. Economic Indicators List of Indicators Committee shortlists candidates for SECP commissioners A high-level committee has shortlisted six candidates out of 150 applicants for the post of six new commissioners in SECP. There had been a maximum of five commissioners in the SECP since its inception in 1999, however the government unexpectedly decided to increase the number of commissioners to seven. Dawn. SECP urged to extend forms A, 29 filing date SECP has been urged to extend the last date for filing of forms A and 29, used for declaring details of shareholders and changes (if any) in the hierarchy of a company. The last date of payment of filing fee of the said forms is falling on Friday, 10th Nov’17, which is Chehlum, whereas, the last date of filing these forms is Nov 11, which is Saturday when most of the corporate sector and public institutions observe holiday. Dawn. Japan is not against CPEC Japan is not against CPEC and may also help in the project, said Japanese Ambassador Takashi Kurai. He said all projects should be based on transparency, openness and accountability. Mr Kurai further said that Japan assigns high value to its bilateral relations with Pakistan since the nature of their cooperation is multidimensional. Dawn. Obor: More sources of funding available Financing for the China-proposed One Belt One Road (OBOR) initiative is not without challenges, but increasingly there are more channels of funding available, senior executives from the UK-based Standard Chartered Bank said in a note. Financing channels for OBOR projects have become increasingly diversified in the last few years, with participation by not only governments but also commercial institutions and private organisations. Financial institutions in certain markets, such as in Pakistan and India, are especially enthusiastic about providing capital support. Tribune. Unit Value Change Daily 7-Nov 7-Nov 7-Nov 7-Nov 7-Nov 7-Nov 7-Nov 7-Nov 7-Nov 7-Nov PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 105.44 107.40 41,049 -8.04 57.18 1,276.6 45,514 16.95 6,912 6.16% 0.00% -0.23% 0.04% NM** -0.26% -0.44% 0.09% -1.74% 0.00% -0.01% WoW -0.30% YoY 1.05% 10.84% 22.19% -29.75% -117.29% 56.33% Crude (DE'17) Gold (DE'17) Gold (10g) Local Silver (DE'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves $ Bn 19.84 27-Oct FY18 Jul-Sep 17 Remittances $ Bn 4.79 Jul-Sep 17 Exports* $ Bn 5.17 Jul-Sep 17 Imports* $ Bn 14.26 Jul-Sep 17 Trade Balance* $ Bn -9.09 Jul-Sep 17 Current Account $ Mn -3,557 Foreign Direct Inv. $ Bn 0.66 Jul-Sep 17 Jul-Aug 17 LSM Growth* % 11.30 % 3.50 Jul-Oct 17 Avg. CPI Discount Rate % 5.75 Sep-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 7-Nov-17, 138.3 145 135 125 EUR, 7-Nov-17, 122.0 115 105 95 Nov-16 USD Feb-17 GBP EUR May-17 Aug-17 USD, 7-Nov-17, 105.3 Source: KCCI Research ; Oanda.com Quote of the Day "Freedom is nothing but a chance to be better." Albert Camus PKR 260Bn motorway to burden people, Khursheed tells PM Leader of the Opposition in the National Assembly has advised PM Abbasi to upgrade the National Highway (N-5) to an eight-lane road instead of “wasting” PKR 260Bn on the Hyderabad-Sukkur Motorway. In a letter to the premier, Mr Shah said the Motorway, comprising a 300 Km sixlane road, was the most expensive project in the history of the country. Dawn. Sindh okays major projects under public-private partnerships CM Sindh has said that Public-private partnership has assumed an important role in the development of Sindh and they are going to expand its scope for better services to the people. He was presiding over the Public Private Partnership Policy Board meeting where projects to be launched under the public-private partnership (PPP) mode were discussed, including motor vehicle inspection and selection of bank for Yellow and Blue line BRT transport projects. Dawn. Date / Period USD-Interbank USD-Open MKT KSE-100 index FIPI Chart of the Day Federal Tax Collection on Goods & Services (FY09-FY17) 1,521.1 1,528.5 1600 1400 1,146.7 1200 935.5 1000 800 600 1,258.8 965.7 774.4 571.8 641.5 400 200 0 Source: KCCI Research, MoF Values in PKR Bn 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