Pakistan Economy Daily Update - 13 April

Transcription

1. Apr . 13, 2016 KCCI - eBulletin Remittance proceeds amount to $ 14.1Bn, up 4.1% According to the SBP, overseas Pakistanis sent remittances amounting to $ 14.1Bn in 9MFY16 up 4.1%, as compare to 13.6Bn in 9MFY15. Remittances amounted to almost $. Remittances amounted to $ 1.4Bn in Mar’16 alone, which is 3.1% less than the remittances received in the preceding month. Tribune. Pace of fall in exports 3 times faster than imports Pakistan’s trade deficit worsened to $ 16.9Bn in the 9MFY16, which was $ 3.7Bn higher than the projection made by the International Monetary Fund (IMF), putting foreign currency reserves under some pressure. According to the PBS, both exports and imports contracted in 9MFY16, but the pace of decline in exports was 3 times faster than imports. In 9MFY16, exports dropped to $ 15.6Bn, which were $ 2.3Bn or 12.9% less than the receipts in 9MFY15. Whereas, Imports during 9MFY16 shrank 4.2% to $ 32.5Bn. Tribune. Credit off-take surges 107% in nine months Private sector credit off-take has registered phenomenal growth of 107% to PKR 370.78Bn 9MFY16 as compared to PKR 178.46Bn in the corresponding period of the last fiscal year, according to statistics released by the SBP. The surge in lending to private sector has been mainly attributed to ease in government borrowing from commercial banks, multi-year low interest rates and prospects of uptake in developmental projects, mainly in energy sector. Govt. borrowing from banks has come down by 10% to PKR 1,118.73Bn as a result of external inflows which have helped in improving the repayment capacity. The News. Pak-Thailand: ‘Bilateral trade can be doubled to $ 2Bn Ambassador of the Kingdom of Thailand Suchart Leingsaeengthong has said that there exists scope to double the volume of bilateral trade between Thailand and Pakistan. The Free Trade Agreement (FTA) between Thailand and Pakistan is likely to be concluded in 2016, which would not only facilitate trade but also help in promoting ties between the two countries. He further said that though the present trade volume between the two countries stood at $ 1Bn but it could be doubled to $ 2Bn in the next 3 years. Tribune. Gwadar port to be operational by 2017: Chinese official A multi-million dollar port being developed by China in Pakistan is set to be at “full operation” by the end of 2016. According to the Chinese public company Zhang Baozhong, Gwadar port on Pakistan’s southwest coast will see roughly 1Mn tons of cargo going through it by 2017. Tribune. CEC Expo plans to showcase Chinese electronics in Karachi During the visit to Karachi Chamber of Commerce and Industry (KCCI), the CEC Expo president Shao Shulin along with members of CEC Expo delegation has informed that the expo, a subsidiary of China National Electronics Import and Export Corporation (CEIEC) plans to organize an exhibition in Karachi in Mar 2017 to showcase electronics, home appliances and security system being produced by China Electronics Corporation in which around 200 exhibitors from China were being targeted for this particular show. Tribune. Chinese show interest in wind energy projects A 14-member delegation of Chinese companies held a meeting with the officials of Sindh Board of Investment and expressed interest in investment in wind energy projects. The delegation expressed interest in the local manufacturing as well as installation of the wind mills. The delegation said the projects would not only produce energy but would also create job opportunities and local production of the technology. The Nation. Third 'Nordic Pakistan Business Summit': heavy customs duties major hurdle to trade growth A North Europe and the North Atlantic Region (Nordic region) business delegation has sought FTA with Pakistan to facilitate and promote trade. After completion of the third "Nordic Pakistan Business Summit" delegates stated that heavy custom duties are major impediment in bilateral trade growth. However, the trade volume can be increased manifold by reducing taxes and signing FTA on the pattern of FTA signed with China. The summit discussed businesses in sustainable energy, education and healthcare sectors - three of the many areas where experience and knowledge of the Nordic companies can benefit Pakistan. BR. EXIM to offer long-term financing for Pak public sector projects Chairman and President of the Export-Import Bank of the United States (EXIM) Fred P Hochberg has announced that the bank would now offer long-term financing for public sector projects in Pakistan. The EXIM chairman apprised about the bank’s history in Pakistan, particularly its partnership in the energy, railway and aviation sectors. The Nation. ENI president discusses investment plans Lapo Pistelli, former Italian deputy foreign minister and president of ENI, an Italian multinational oil and gas firm, called on Finance Minister Ishaq Dar to discuss matters pertaining to investment in Pakistan. Dar, while giving a brief overview of the economy to the delegation, said Pakistan was now fully focused on the path of economic growth where investment had a major contribution to make. He apprised the ENI head of the investment plan of Chinese, Saudi and Qatari companies and said the Italian investors were also welcome to explore and avail business opportunities in Pakistan in various sectors, including energy. Tribune. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 12-Apr PKR 104.74 -0.01% USD-Open MKT 12-Apr PKR 105.30 0.96% KSE-100 index FIPI 12-Apr 12-Apr Pts. $ Mn 33,617 -1.78 0.15% NM** Crude (MY'16) 12-Apr $/bbl 42.92 2.88% Gold (MY'16) 12-Apr $/oz 1,256.6 -0.16% Gold (10g) Local 12-Apr PKR 42,343 0.51% Silver (MY'16) 12-Apr $/oz 16.20 1.66% Cotton(KHI)-40 kg 12-Apr PKR 5,350 0.00% Kibor-6M 12-Apr % 6.36% 0.00% Forex Reserves 25-Mar $ Bn 20.42 -0.48% Remittances Jul-Mar 16 $ Bn 14.16 4.14% Exports* Jul-Mar 16 $ Bn 15.61 -12.92% Imports* Jul-Mar 16 $ Bn 32.52 -4.22% Trade Balance* Jul-Mar 16 $ Bn -16.91 -5.50% Current Account Avg. CPI-FY16* Jul-Feb 16 Jul-Mar 16 $ Mn % -1,859 2.64 4.52% WoW 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, 12-Apr-16, 149.3 155 145 EUR, 12-Apr-16, 119.5 135 125 115 105 95 USD, 12-Apr-16, 104.8 85 75 Apr-15 Jul-15 USD Oct-15 GBP Jan-16 EUR Apr-16 Source: KCCI Research ; Oanda.com Quote of the Day “No enterprise can exist for itself alone. It ministers to some great need, it performs some great service, not for itself, but for others…or failing therein, it ceases to be profitable and ceases to exist.” Calvin Coolidge Chart of the Day FBR Tax Collection 2,100 9MFY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY07 FY06 FY05 FY04 FY03 1,558 1,329 1,157 1,008 847 713 590 521 461 0 Value in $ Bn 500 1,000 1,500 1,946 1,883 2,000 2,254 2,500 2,590 3,000 Source: KCCI Research; FBR; News flows 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