Pakistan Economy Daily Update - 11 April

Transcription

1. Apr . 10-11, 2016 KCCI - eBulletin OGDCL pays royalty to provinces Oil and Gas Development Company (OGDCL) has made payments of around PKR 229.73Bn on account of oil and gas royalty to the provinces from FY02-FY16 to Sindh, Punjab, Balochistan and Khyber Pakhtunkhwa provinces. The National Assembly Standing Committee on Petroleum and Natural Resources has recently directed all provinces to submit detailed reports with regard to distribution of the royalty among oil and gas producing districts. The body has also asked the provincial energy departments to furnish reports on gas theft incidents and their strategy to prevent them. The NationMon. PKR 105.30 0.00% KSE-100 index FIPI 8-Apr 8-Apr Pts. $ Mn 33,968 -2.91 0.21% NM** Crude (MY'16) 8-Apr $/bbl 40.85 5.50% Gold (MY'16) 8-Apr $/oz 1,241.2 1.48% Gold (10g) Local 8-Apr PKR 42,257 0.51% Silver (MY'16) 8-Apr $/oz 15.38 1.02% Cotton(KHI)-40 kg 8-Apr PKR 5,250 0.00% Kibor-6M 8-Apr % 6.35% -0.01% 25-Mar $ Bn 20.42 -0.48% Remittances Jul-Feb 16 $ Bn 12.71 6.04% Exports* Jul-Feb 16 $ Bn 13.87 -13.26% Imports* Jul-Feb 16 $ Bn 28.98 -4.95% Trade Balance* Jul-Feb 16 $ Bn -15.10 -4.22% Current Account Avg. CPI-FY16* Jul-Feb 16 Jul-Mar 16 $ Mn % -1,859 2.64 4.52% WoW Forex Reserves YoY Apr-16 Discount Rate % 6.00 Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 GBP, 8-Apr-16, 147.5 155 145 EUR, 8-Apr-16, 119.1 135 125 115 105 95 USD, 8-Apr-16, 104.7 85 75 Apr-15 Jul-15 USD Oct-15 GBP Jan-16 EUR Apr-16 Source: KCCI Research ; Oanda.com Quote of the Day “Hard work keeps the wrinkles out of the mind and spirit.” Helena Rubinstein Chart of the Day Crude Oil Price Trend 160 140 120 100 80 60 40 20 Value in $/Bbl 7-Oct-15 7-Apr-16 7-Oct-14 7-Apr-15 7-Oct-13 7-Apr-14 7-Oct-12 7-Apr-13 7-Oct-11 7-Apr-12 7-Oct-10 7-Apr-11 7-Oct-09 7-Apr-10 7-Oct-08 0 7-Apr-09 STPF 2015-18: MoC still facing ''unseen'' hurdles The Ministry of Commerce is reportedly still facing ''unseen'' hurdles in implementation of Strategic Trade Policy Framework (STPF) 2015-18, which was announced after undue delay of nine months. Commerce Minister Engineer Khurram Dastgir Khan, while unveiling STPF 2015-18, had announced that implementation on the trade policy will commence from 1st Apr’16. However, despite passage of almost three weeks, Commerce Ministry has failed to notify the STPF which is being anxiously awaited by the business community. The government had earmarked PKR 6Bn in federal budget FY16 for the initiatives announced in the STPF 2015-16. However, as the STPF was announced with only three months remaining in the fiscal year the amount of PKR 6Bn is unlikely to be disbursed to the Commerce Ministry. BR-Sun. 8-Apr 7-Oct-07 Membership renewal: DGTO notifies extension till April 30 The Karachi Chamber of Commerce and Industry (KCCI) has announced that the Directorate General of Trade Organizations (DGTO), Ministry of Commerce has notified extension in last date of membership renewal to 30th Apr’16, in order to enable members of trade organizations to fulfill the requirements of membership renewal. This exemption has been granted in the public interest on the specific request of trade organizations made in the wake of FBR’s extension for last date of filing income tax returns up to 30th Apr’16 under Tax Amnesty Scheme, DGTO notification added. KCCI has advised those members who were unable to get their membership renewed by 31st Mar’16 to benefit from the extension granted by DGTO and get their membership renewed in order to avoid any inconvenience. BR-Sun. 0.00% USD-Open MKT 7-Apr-08 Dar asks Exim Bank to consider long term financing Federal Finance Minister Ishaq Dar has asked Exim Bank of USA to consider long term financing in different areas including energy projects in Pakistan. He has expressed these views in a meeting with the Chairman and President, Exim Bank of USA, Mr.Fred P.Hochberg. FM said that the Govt. was seriously undertaking reforms for rehabilitation of the national airline. He said that US company, General Electric had entered agreement for supply of gas turbines and related equipment for the three 3600 MW LNG based power projects in the country. He further stated that these projects provide opportunities for the Exim Bank to consider long term financing in different areas including energy projects, as US companies were already engaged in these projects. The Nation- Mon. Change Daily 104.70 7-Oct-06 World Bank/IMF meetings: preparations reviewed Finance Minister Ishaq Dar chaired a briefing session to review preparations for participation of Pakistan's delegation in the World Bank/IMF spring meetings being held in Washington from 15-17th Apr’16. During the visit the Finance Minister will also represent Pakistan at the Global Connect Initiative (GCI) event, which is being co-hosted by President WB and US Secretary of State. He will also visit the Woodrow Wilson Center for a talk on the growth strategy of Pakistan. BR-Sun. Value PKR 7-Apr-07 Sindh aims for online vehicle registration Sindh Excise and Taxation Department is aiming to provide online services to the general public for registration of motor vehicles, transfers and other excise services and to receive taxes through the internet banking. The plan is presently being discussed with the State Bank of Pakistan to get its approval. The online availability of tax services would provide a huge relief to the customers. It would not only ensure transparency in dealings and tax collections but will also reduce traffic in excise offices and help in timely collection of taxes. The department has already automated its tax procedures and is now focusing on providing next set of advanced payment services to its various stakeholders including general public and the concerned government departments. Dawn-Sun. Unit 8-Apr 7-Oct-05 Draft rules for private securities issued The Securities and Exchange Commission of Pakistan (SECP) has issued the draft Private Placement of Securities Rules 2016 for regulating issuance of securities through private placement. The rules include companies that manage public funds such as mutual funds, pension funds, employees’ funds, listed companies, banks, etc. and shall be applicable to the issuance of both debt and equity securities issued through private placement. They encompass the eligibility criteria, disclosures in the Information Memorandum (IM), restriction on number of subscribers, induction of the security in the central depository system, emphases on utilizing the proceeds of the issue for the purpose disclosed in the IM, and reporting of the issue and redemption status to the SECP. Dawn-Sun. List of Indicators 7-Apr-06 PKR 100Bn tax exemptions to be withdrawn The government has decided to withdraw tax exemptions over PKR 100Bn, amounting to 0.3% of gross domestic product (GDP), in the budget FY17 with the aim to bring the deficit down. In the first two phases, exemptions worth PKR 225Bn, granted through SROs have been withdrawn to improve tax collection. A meeting chaired by Finance Minister Ishaq Dar finalised the exemptions to be withdrawn in the next budget. The Minister said that the withdrawal of discriminatory SROs will help further rejuvenate economic activity especially by SMEs and reduce the cost of doing business in the country. He stressed upon the need to provide a level-playing field to trade and industry by abolishing the culture of SROs. Dawn-Sun. Date / Period USD-Interbank 7-Apr-05 SBP keeps policy rate on hold at 6% The central bank has left its policy interest rate unchanged at 6.0%, citing increasing inflationary pressures since Sep’15. While the year-on-year inflation rose from 1.3% in Sep’15 to 3.9% in Mar’16, the average inflation increased from 1.7% to 2.6% during this period, the SBP said in its bimonthly monetary policy announcement. This rise in inflation is as anticipated and the benign inflation outlook for the remaining months of FY16 remains largely unchanged. The SBP policy statement also said that while the current macroeconomic stability, improved law and order, and CPEC-related investments bode well for the future prospects for foreign direct investments, it is the decline in exports receipts that is worrisome. The balance of payments outlook for the remaining months of this fiscal year remains positive, said the SBP, adding that low private capital inflows pose challenge for medium-term external sector sustainability. Dawn-Sun. Economic Indicators Source: KCCI Research, OPEC 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