Pakistan Daily Economy Update - 9 March

Transcription

1. Mar . 9, 2018 KCCI - eBulletin ‘NAB empowered to investigate people availing tax amnesty schemes’ The National Accountability Bureau (NAB) has power under law to initiate probe against individuals who have availed any tax amnesty, said Altaf Bawany, DG NAB (Karachi), as the govt. has planned yet another scheme for whitening of untaxed offshore assets. Speaking at a seminar on the Role of Business Community in Curbing the Menace of Corruption at KCCI, he said the law allows the bureau to probe into funds obtained through criminal (activities) and drugs (peddling). NAB chief said individuals who avail money whitening schemes are the ‘bull’s-eye’ for the bureau. He urged the business community not to give money to govt. officials to resolve their issues. Siraj Kassem, BMG Chairman and former president KCC lamented that the business community is targeted for sending tax evaded money abroad, saying that money is mostly earned through legal means. The News. New law needed to punish bribe givers: NAB DG While speaking at a seminar on ‘Role of Business Community in Curbing the Menace of Corruption’ organized by Karachi Chamber of Commerce and Industry (KCCI), Director General of National Accountability Bureau (Sindh), Mohammad Altaf Bawany, underlined the need for new legislation to also punish those who pay bribe and encourage this menace in the society creating serious problems for others who are forced to live with corrupt system. The DG NAB Sindh also rejected the theory that because of low salaries in govt. organizations, employees are compelled to take bribe. He stated that there is a strong relation between corruption and business as it increase the Cost of Doing Business (CODB). The DG quoted that internationally, corruption has increased CODB by 10%, but in Pakistan it has added 20% to the cost. On the occasion, President of KCCI Muffasir Atta Malik, Chairman BMG in KCCI Siraj Kassam Teli and former presidents spoke of the business community’s issues relating to NAB and FBR. BR. FATF challenge: MoF-led body evolving action plan A ministerial committee led by the Finance Ministry will meet for the first time at the Foreign Office next week to finalize an action plan in compliance with the decision of Financial Action Task Force (FATF), which placed Pakistan on the global terror financing watch list. FATF has given Pakistan time until Jun.’18 to show permanent credible action on queries raised against it. In this background, the govt. is removing certain deficiencies in the Anti-Money Laundering and Countering of Terrorist Financing (AML/CFT) framework of Pakistan. BR. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 8-Mar 110.50 111.95 0.09% 0.18% Crude (AP'18) 8-Mar 8-Mar 8-Mar 8-Mar PKR PKR Pts. $ Mn $/bbl 43,073 -2.70 60.26 -0.85% NM** -1.66% Gold (AP'18) Gold (10g) Local 8-Mar 8-Mar $/oz PKR 1,322.6 48,471 -0.20% -0.27% Silver (AP'18) Cotton(KHI)-40 kg 8-Mar 8-Mar $/oz PKR 16.46 7,716 0.12% 1.41% Kibor-6M 8-Mar % 6.47 $ Bn 18.33 0.00% WoW -0.46% Remittances 2-Mar FY18 Jul-Jan 18 $ Bn 11.38 YoY 3.55% Exports* Imports* Jul-Jan 18 Jul-Jan 18 $ Bn $ Bn 12.97 34.51 11.11% 18.92% Jul-Jan 18 Trade Balance* $ Bn -21.55 Jul-Jan 18 Current Account $ Mn -9,156 Foreign Direct Inv. $ Bn 1.49 Jul-Jan 18 Jul-Dec 17 LSM Growth* % 5.55 % 3.84 Jul-Feb 18 Avg. CPI Discount Rate % 6.00 Jan-18 WoW= Sources: KCCI Research, PMEXweek , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; -24.18% -48.11% -2.94% USD-Interbank USD-Open MKT KSE-100 index FIPI Forex Reserves Major Currencies IMF awaits Pakistan’s nod to release post program monitoring report Pakistan is yet to give a go-ahead to the IMF to present the latest outlook on the country’s economy after the end of its three-year loan program. The report is crucial to guide external financing the country direly needs to keep up growth momentum. PM Abbasi will take final decision to this effect anytime soon. The News. Auto assemblers shifting investments to Punjab Investors at the Bin Qasim Industrial Park (BQIP) and Korangi Creek Industrial Park (KCIP) have alleged that bureaucratic hurdles of National Investment Park (NIP) are delaying the implementation of projects, thereby resulting in mountings costs and time overruns. Hyundai had originally planned to set up a plant at BQIP. However, NIP’s bureaucratic issues forced the Korean auto giant to shift investment to the Faisalabad Special Economic Zone (FIEDMC). Similarly, in Nov.’17, Groupe Renault and Al-Futtaim had signed definitive agreements to assemble vehicles at a new plant in Karachi where Al-Futtaim was allotted 50 acres at BQIP to set up Renault car assembly plant. However, repeated delays by the Board of Directors of NIP forced the company to change the plant’s location to Faisalabad. Dawn. Miftah hopeful of getting 6% growth target In a meeting with senior representatives of various foreign banks based in Pakistan, PM’s Adviser on Finance, Miftah Ismail, has said that the govt. is well on course to achieve 6% growth target during ongoing FY18 despite challenges. The govt. is committed to contain the fiscal deficit with steady increase in revenue as well as a prudent spending policy. \ The Adviser further said that revenue collection by FBR is constantly improving and it is on course to achieve the revenue target for FY18 and it is expected that the current account gap would narrow down in the last few months of the financial year. The Nation. Govt. lifts ban on re-appropriation of funds for development projects The govt. has decided to withdraw ban on re-appropriation of funds allocated for development projects, in a move to refocus on the uplifts that need more monetary support ahead of the fiscal year-end. Last week, the govt. imposed the ban on re-appropriation of funds for FY18. Diversion of funds from one project to another is considered as a routine exercise and clipping such power was an important step to stop misuse of funds in pre-poll rigging just ahead of the general elections. The News. PSX to roll out fund to lure middle-class investors Pakistan Stock Exchange (PSX) is at an advance stage of rolling out a new exchange traded fund (ETF) by the start of FY19. The intention is to attract country’s middle class comprising 40Mn to the investment avenue, which has been the best performing among all asset classes. ETF is an index tracking investment fund and enables investor to take exposure in all the constituents of the benchmark index in a single transaction. The News. Gwadar to have MCC The govt. will construct Model Customs Collectorate (MCC) at Gwadar to cater for increased customs revenue. However, Planning Commission has recommended FBR to divide the construction of MCC in phases instead of completing it in one go, as currently the construction of residential facility is banned. FBR is the sponsoring agency while the Public Works Department (PWD) is the executing agency of the project. Originally the sponsor had demanded PKR 2.53Bn cost of the project which is scheduled to be completed by 2020. The Nation. Forex reserves down $ 84Mn The country's liquid foreign exchange reserves fell by $ 84Mn to $ 18.33Bn as on Mar. 2, 2018 compared to $ 18.41Bn a week earlier due to external debt payment. The SBP's liquid forex reserves declined by $ 112.4Mn to $ 12.23Bn at the end of last week. Similarly, reserves held by the banks moved up by $ 28.3Mn to $ 6.09Bn as on Mar. 2, 2018 compared to $ 6.07Bn on Feb. 23, 2018. BR. 165 GBP, 8-Mar-18, 155.3 155 145 135 EUR, 8-Mar-18, 136.9 125 115 105 USD, 8-Mar-18, 110.6 95 Mar-17 USD Jun-17 GBP EUR Sep-17 Dec-17 Source: KCCI Research ; Oanda.com Quote of the Day "The wisdom of the wise is an uncommon degree of common sense." William R. Inge Chart of the Day LSM GROWTH CONSTITUENTS (1HFY18) Electronics Iron & Steel Products Automobiles Non Metallic Mineral Products Paper & Board Coke & Petroleum Products Rubber Products Engineering Products Pharmaceuticals Textile -0.3% Food, Beverages & Tobacco -0.4% Chemicals -5.9% Leather Products Fertilizers -9.8% -19.2% Wood Products -20.0% 50.5% 37.1% 21.9% 10.2% 8.8% 8.1% 5.9% 4.2% 3.6% 0.6% 0.0% 20.0% 40.0% 60.0% Source: KCCI Research, PBS Values in (%) 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