Pakistan Daily Economy Update - 9 January

Transcription

1. Jan . 8-9, 2017 KCCI - eBulletin PKR 75Bn pro-exports package may be announced on Jan. 10, 2017 Prime Minister Nawaz Sharif is expected to announce PKR 75Bn package for six major export oriented sectors at different proportions for high and low value added sectors on Jan. 10, 2017 with top priority to the textile sector. The removal of duty on cotton import, manmade fabric and rebate will be key incentives to be announced by the Prime Minister while gas and electricity prices have already been slashed for the textile sector. It is also expected the govt. would announce substantial freight subsidy for exporters on the pattern of scheme in Trade Policy 2006-07. BR - Sun. Tax-to -GDP ratio rises to 12.4% Under the IMF program, Pakistan’s tax to GDP ratio has improved to 12.4% from 9.8% in FY13. However, to raise nontrivial amount of revenues at the time of rising current account deficit and external debt obligations, the govt. is considering a general amnesty on undeclared foreign assets, similar to the Indonesian scheme. The Nation – Mon. Senate set to take up major matters today The Senate is set to take up a number of important constitutional matters including 'The National Counterterrorism Authority (Amendment) Bill, 2016 and a bill seeking restructuring of the Ogra on Jan.’9, 2017 (today). Besides, Representation of the People (Amendment) Bill, 2016 will also be put for legislation. The govt. will also lay an ordinance, called National Accountability (Amendment) Ordinance, 2017, in order to get rid of plea bargain and voluntary return controversies. BR - Mon. New gas firm to use Sui Southern pipelines OGRA has recently issued the first-ever private sector distribution license for natural gas sales in Sindh to a company incorporated just one day before the license was granted. The Karachi-based firm Gaseous Distribution Company (GDC) will be the first company ever to share the decades-old pipeline network of SSGCL and challenge its distribution and sales monopoly. Dawn. New law aims to make plea bargains stigma The government has amended controversial provisions governing plea bargains and voluntary returns in the National Accountability Ordinance (NAO), 1999, disqualifying those who have availed these options from holding public office for life. President Mamnoon Hussain promulgated the ordinance, called the National Accountability (Amendment) Ordinance 2017 and merged both provisions, which means that both now require court approval. Earlier, only plea bargains were sent to the concerned accountability courts for a final nod; while voluntary returns merely required the approval of the chairman of NAB. Previously, those who opted for voluntary returns were not disqualified from holding public office and could resume their duties forthwith. Dawn. Senate body lashes out at FBR, rejects audit policy Chairman Finance Standing Committee has rejected the audit policy of the FBR that selected tax cases for audit through computerized balloting by saying the policy would ‘harass’ existing taxpayers. On Jan. 5, 2017, the FBR had selected 93,277 cases for a tax audit. The Chairman further said that it is unfortunate that out of 0.9Mn taxpayers, only 0.1Mn would be audited. The Nation - Sun. Pakistan receives first cargo of better-quality diesel Pakistan has received from Kuwait the first consignment of improved-quality diesel that meets Euro-II emission standards. First PSO cargo that arrived on 6th Jan’16 tested 250 parts per million (ppm) sulphur content. The govt. has set a new standard of maximum 500 ppm sulphur content in new diesel compared to 5,000 ppm in the fuel being phased out now. All diesel imports by any oil marketing company will now be Euro-II and this change has been made without any increase in the price. The move comes just 2 months after the state-run oil marketing company launched higher-grade RON petrol for the first time in Pakistan. Tribune. Tarbela-4 project contractor: PM orders probe into payment of incentive money Prime Minister Nawaz Sharif has ordered a comprehensive inquiry into the $ 25Mn incentive money paid to the contractor of Tarbela-4 extension project, after the company failed to meet the deadline set for completing work on the project. The prime minister wants to know the causes and reasons that have prevented the contractor from meeting the Jun’17 time frame despite getting additional payments for accelerating work, according to the Wapda. Tribune. FED collection thru cigarettes declines sharply Federal Excise Duty (FED) collection on cigarettes sharply declined by over 45% or PKR 4Bn during the first quarter (JulySep) of this fiscal year 2016-17 mainly due to change in duty structure. According to SBP, the tobacco industry in the formal sector is facing immense competitive pressure due to massive increase in FED and the illicit market of cigarettes in Pakistan has reached about 40% of the total demand. BR – Sun. Significant decline in terror activities There has been a significant reduction in terror activities in the country where as many as 31 terrorist attacks took place in 2016 compared with the attacks in 2015. In this regard, statistics of the National Counter-Terrorism Authority (NACTA) claimed a decline of 80%. Furthermore, according to State Department statistics, there were a total of 1,009 terrorist attacks in Pakistan in 2015, compared to 1,823 in 2014, which is a 45% decrease. The total number of fatalities in the attacks went down by 39% to 1,081 in 2015 compared to 1,761 in 2014. BR - Mon. Islamabad urges World Bank to restart arbitration Pakistan has asked the World Bank to restart the process of arbitration in its water dispute with India despite New Delhi’s objections. In its communications with the bank, Pakistan argued that only arbitration can save the Indus Waters Treaty, which has successfully resolved water disputes between India and Pakistan for more than half a century. The current dispute concerns two hydroelectric plants — Kishanganga and Ratle — that India is building on the rivers whose waters were given to Pakistan under the IWT. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank 6-Jan PKR 104.78 -0.03% USD-Open MKT 6-Jan PKR 108.39 -0.01% KSE-100 index FIPI 6-Jan Pts. $ Mn 49,038 -4.15 0.67% NM** Crude (FE'17) 6-Jan 6-Jan $/bbl 53.67 -0.04% Gold (FE'16) 6-Jan $/oz 1,172 -0.78% Gold (10g) Local 6-Jan PKR 42,814 0.50% Silver (FE'17) 6-Jan $/oz 16.47 -0.72% Cotton(KHI)-40 kg 6-Jan PKR 6,897 0.00% Kibor-6M 6-Jan % 6.14% 0.01% 30-Dec $ Bn 23.16 -0.53% Remittances Jul-Nov 16 $ Bn 7.87 -2.50% Exports* Jul-Nov 16 $ Bn 8.19 -3.93% Imports* Jul-Nov 16 $ Bn 19.96 8.83% Trade Balance* Jul-Nov 16 $ Bn -11.78 -19.90% Current Account Avg. CPI-FY17* Jul-Nov 16 $ Mn % -2,601 3.88 -90.97% WoW Forex Reserves YoY Jul-Dec 16 Nov-16 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 GBP, 6-Jan-17, 129.0 135 125 115 105 EUR, 6-Jan-17, 110.4 95 USD, 6-Jan-17, 104.4 85 75 Jan-16 Apr-16 USD Jul-16 GBP Oct-16 Jan-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Count your joys instead of your woes; count your friends instead of your foes" Irish saying Chart of the Day Debt Snapshot of Pakistan 25 20 15 10 5 0 Nov'12 Nov'13 Nov'14 Total Debt Domestic Debt Value in PKR Tn Nov'15 Nov'16 External Debt Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The information NEPRA grants hydropower license to Trident Power contained herein have been compiled or arrived at based upon information obtained from NEPRA has granted a license to Trident Power JB (Private) Limited (TPJBPL) for its 1.65 MW hydel generation facilities. sources believed to be reliable and in good faith. Such information has not been independently Trans Tech Pakistan Limited incorporated a special purpose company in the name of TPJBPL. Accordingly, TTPJBPL intends verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' to set up a hydel based generation facility at LBDC at RD 260+000 Okara Cantt, Tehsil & District Okara in the Province of understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. Contact: res@kcci.com.pk Punjab. Daily Times.