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Pakistan Daily Economy Update - 9 January

IB Insights
By IB Insights
6 years ago
Pakistan Daily Economy Update - 9 January


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  1. Jan . 9, 2018 KCCI - eBulletin Exports set to grow further after rupee’s fall: Dagha Pakistan’s exports could grow at a faster pace than the 11% increase they have registered so far, a development that would come on the back of the rupee losing value against the US dollar. Commerce Secretary Younus Dagha, while speaking in a meeting at the KCCI, said that the govt. is willing to serve exporters, but anyone importing consumer items should not expect any facilitation from the commerce ministry. Referring to concerns expressed by former KCCI president Zubair Motiwala on the 4% rebate to yarn exporters, he agreed that this incentive should not be given and the issue has also been raised by the commerce ministry. Chairman BMG & former President KCCI Siraj Kassam Teli said that about 40% of trade bodies are fake and bogus, and are not following the rules and regulations of the commerce ministry in terms of paperwork and documentation. Tribune. Investment policy to be made part of STPF Investment policy will be made part of the upcoming Strategic Trade Policy Framework (STPF), as the government is taking measures to improve investment environment in the country. Pollution is one of the major problems of the country, and in this regard, five plants costing around PKR 13Bn for environment protection are being installed in Karachi, said Commerce Secretary Younus Dagha in a meeting with businessmen in Karachi. He also said that the rupee was depreciated on the demand of exporters. The News. Imported dollars: exchange companies assured of same-day payment The SBP has assured exchange companies of same-day payment of imported dollars by the banks. Currently exchange companies are importing 65% of dollar through banking channel, which mainly takes two days for delivery of imported greenback. The assurance by the central bank would now reduce the supply and demand gap in the market. BR. Dollar hits PKR 113 in open market Dollar in open market recorded substantial gain on the SBP rule curbing imports of dollar by the exchange companies. Dollar in the open market hit PKR 113 on back of the last week ruling whereby exchange companies could only import around 35% against the surrender of other foreign currencies while 65% is to be managed by the banks. The Nation. Mentors of Fortune 500 to visit Pakistan More than one dozen American start-ups and business greats are coming to Pakistan in Feb’18. Among them are Kevin France, mentor to 150-plus Fortune 500 companies and several Forbes billionaires, hyper-growth expert Jason Gilbert, and Tcat Houser, who is the author of 50-plus books. Their aim is to steer Pakistani start-ups and entrepreneurs towards success-oriented measures, and help them integrate with international markets such as the US, Canada, and Europe. The delegates will be hosted at the Momentum Tech Conference from 19th -20th Feb. Tribune. SECP amends regulations to increase investments via quality listings The SECP had amended Public Offering Regulations, 2017 to encourage investments and ensure fair-price discovery through quality listings. As per the amendments, the company should have at least a three-year operational track record with two years profitability from its core business activity, while the book value/share of the company should be less than its face value per share. The concept of price band with the upper limit of not more than 40% of the floor price has been introduced in the amendments to ensure fair price discovery for IPOs through the book building mechanism. The News. \ Trade deal with Saudi Arabia likely The govt. is developing a comprehensive package for the promotion of bilateral trade with Saudi Arabia. Pakistan is also considering signing a Preferential Trade Agreement PTA with Saudi Arabia to promote bilateral trade. Government has been trying to finalize a trade agreement with the kingdom for the past many years. Dawn. Provinces demand representation in OGRA Provinces have forcefully demanded that Ogra should be restructured on the model of NEPRA as they seek due representation in policymaking and regulating the oil and gas industry under the proposed reforms. They are also asking the CCI to clear policy documents prepared for third-party access rules, licensing and tariff methodology. As part of gas-sector reforms, provinces including Sindh have agreed on the division of gas utilities with some conditions including representation in the new companies as well as the regulator. Tribune. Economic Indicators List of Indicators Unit Value Change Daily 8-Jan 8-Jan 8-Jan 8-Jan 8-Jan 8-Jan 8-Jan 8-Jan 8-Jan 8-Jan PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 110.30 111.65 43,112 11.44 61.86 1,320.4 48,942 17.10 8,252 6.21% 0.00% 0.63% 1.38% NM** -0.05% -0.29% 1.15% -0.69% -1.28% 0.05% WoW -0.17% YoY 1.29% 10.49% 21.12% -28.56% -90.74% 57.12% Crude (FE'18) Gold (FE'18) Gold (10g) Local Silver (FE'18) Cotton(KHI)-40 kg Kibor-6M Forex Reserves $ Bn 20.15 29-Dec FY18 Remittances Jul-Nov 17 $ Bn 8.02 Exports* Jul-Nov 17 $ Bn 9.03 Imports* Jul-Nov 17 $ Bn 24.06 Trade Balance* Jul-Nov 17 $ Bn -15.03 Current Account Jul-Nov 17 $ Mn -6,430 Foreign Direct Inv. $ Bn 1.15 Jul-Nov 17 LSM Growth* Jul-Oct 17 % 9.64 % 3.75 Avg. CPI Jul-Dec 17 Discount Rate % 5.75 Sep-17 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 155 GBP, 8-Jan-18, 150.1 145 135 EUR, 8-Jan-18, 132.7 125 115 105 USD, 8-Jan-18, 110.7 95 Jan-17 Apr-17 GBP USD EUR Jul-17 Oct-17 Source: KCCI Research ; Oanda.com Quote of the Day "We should keep on going along the path of globalization. Globalization is good... when trade stops, war comes." Jack Ma Chart of the Day 30 DISCOs asked to plug power leaks, cut losses PEPCO has tasked all CEOs of distribution companies (DISCOs) to come up with robust proposals to reduce rising power losses at hundreds of feeders across the country. Failure to improve reasonably well may entail extreme measures under applicable rules. About 50% and above losses were recorded at 745 feeders during the month of November’17, resulting in the loss of 250.71 million KWH (units). The News. 25 International terminal at Sialkot airport inaugurated Prime Minister Shahid Khaqan Abbasi has said that Pakistan’s GDP will rise to 6% during FY18, calling the business community to make more efforts to boost exports. The country should aim for more than $ 50Bn exports, as $ 20-22Bn is not enough for a dynamic country like Pakistan, Abbasi said, while inaugurating an International Terminal at Sialkot airport. The businessmen of Faisalabad also showed keen interest in establishment of a similar airport in their locality, to which he assured full support of the Govt. The News. 10 Macron endorses China’s Silk Road but warns against hegemony French President Emmanuel Macron has urged Europe to take part in China´s massive Silk Road infrastructure project but warned against hegemony, saying both sides should share the benefits. The $1Tn infrastructure programme is billed as a modern revival of the ancient Silk Road that once carried fabrics, spices and a wealth of other goods in both directions. Known in China as "One Belt, One Road", the plan will see gleaming new road and rail networks built through Central Asia and beyond, and new maritime routes stretching through the Indian Ocean and Red Sea. The News. Date / Period USD-Interbank USD-Open MKT KSE-100 index FIPI SCRA Net Flows - Top 5 countries (FY18TD) 24.55 20 13.26 15 10.73 4.86 5 0 1.82 USA Australia China UAE France Special Convertible Rupee Account, figures in Mn $ Source: KCCI Research, SBP 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