Pakistan Economy - Daily Update - 6 April

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1. Apr . 6, 2016 KCCI - eBulletin SBP governor inaugurates country's first domestic payment scheme SBP governor has inaugurated Pakistan's first domestic payment scheme in Karachi on 5th Apr, 2016. The new payment scheme has been branded as "PayPak" and will compete in the domestic market with other international payment schemes. However, the new card will only be used within Pakistan and will offer the benefit of low cost, ease of affordability and security to ordinary citizens. With this launch, Pakistan became the 28th country in the world to have its own domestic payment scheme. Daily Times. List of Indicators Unit Value Change Daily 5-Apr PKR 104.68 -0.05% USD-Open MKT 5-Apr PKR 105.45 -0.05% KSE-100 index FIPI 5-Apr 5-Apr Pts. $ Mn 33,766 -4.82 0.95% NM** Crude (MY'16) 5-Apr $/bbl 37.72 -1.26% Gold (MY'16) 5-Apr $/oz 1,231.6 -0.15% Gold (10g) Local 5-Apr PKR 42,171 -0.61% Silver (MY'16) 5-Apr $/oz 15.14 -2.03% Cotton(KHI)-40 kg 5-Apr PKR 5,200 0.00% Kibor-6M 5-Apr % 6.37% 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 President seeks more Saudi investment in Pakistan President Mamnoon Hussain has called upon the Saudi investors to invest in Pakistan, especially in energy, infrastructure, Discount Rate Jan-16 % 6.00 agriculture and livestock sectors and benefit from the high profit-yielding business environment. The President said this in Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* WoW= week on week; YoY=Year on Year a meeting with Saudi Parliamentary delegation on 5th Apr, 2016 that the investment policy has created an investment ** Not Meaningful Major Currencies friendly environment by opening all sectors of economy for Foreign Direct Investment (FDI), guaranteeing equal treatment of foreign and domestic investments, protecting foreign investment, introducing a liberal foreign exchange 175 regime and providing one window operation. The Nation. 165 Revision: Banks wants income tax rate to be brought down to 32% The Pakistan’s banking industry has demanded that the income tax rate for banks should be brought down to 32%, which is the rate the corporate sector pays on its business income. According to their budget proposals, it has been recommended that Section 236P of the Income Tax Ordinance concerning advance tax on banking transactions, other than through cash, be removed or exemption be provided to vulnerable groups. It has also asked the FBR that the threshold of transfers/transactions should be increased to PKR 100, 000. Tribune. 105 95 USD, 5-Apr-16, 104.5 85 75 Apr-15 Jul-15 USD Oct-15 GBP Jan-16 EUR Apr-16 Source: KCCI Research ; Oanda.com Quote of the Day "The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." Peter Drucker Chart of the Day Export and Import of Live Animals and Animals Products (7MFY16) 70 60 62 55 50 50 69 58 56 41 40 25 30 24 20 11 15 12 18 19 Value in $ Mn Oct-16 Nov-16 Sep-16 Jul-16 Export Aug-16 0 Jan-16 10 Dec-16 Govt. to set up LPG air-mix plants in hilly areas The govt. has planned to set up 30 liquefied petroleum gas (LPG) air-mix plants with the assistance of gas utilities in Murree, Gilgit, other hilly areas in the north and Azad Jammu and Kashmir (AJK). These areas have a sizeable number of domestic and commercial consumers who are burning wood to meet their cooking and heating requirements, which in turn is causing rapid deforestation in the country. Tribune. 115 Oct-16 CNIC mandatory for dividend payment The SECP has allowed companies to withhold all future dividends of such shareholders who have not provided their CNIC numbers to companies to be written on the dividend warrants. However, the companies would require the SECP's approval to withhold dividend of any shareholder. Daily Times. 125 Nov-16 Transfer of remittances via PRISM: SBP extends deadline till July 31 The SBP has extended the deadline for implementation on Inter-Bank Transfer of Home Remittances via Pakistan Realtime Interbank Settlement Mechanism (PRISM), for three months till 31st Jul’16. In order to ensure timely interbank domestic transfer of home remittances under the arrangement of Pakistan Remittances Initiative (PRI), SBP had allowed banks to initially use the PRISM system free of charge and with no limit on minimum amount till 31st Mar’16. However, on the request of banks, and keeping in view the current level of readiness and technical issues being faced by banks with regard to the subject matter the deadline has been extended for implementation. BR. EUR, 5-Apr-16, 119.0 135 Sep-16 POL consumption surges 14% in March Petroleum products (POL) sales has exhibited a growth of 14% MoM to 1.98Mn tons in Mar’16. Motor gasoline sales volumes clocked in at 0.55Mn tons in Mar’16 compared to 0.45Mn tons in Feb’16, up 22%, attributable to decline in retail prices. Sales volumes for high speed diesel (HSD) was recorded at 0.65Mn tons in Mar’16 compared to 0.56 Mn tons in February 2016, depicting a growth of 16%. The News. 145 Jul-16 PSO sends back ship carrying poor quality petrol A vessel of oil supplier Emirate National Oil Company (Enoc) carrying 50,000 tons of petrol has been sent back by PSO because of poor quality which may lead to delay in oil imports and spark fears of shortage. The vessel had reached Pakistan on 4th Apr, 2016 but was asked to go back to the UAE for quality correction. This will cause a gap of 50,000 tons for few days in the supply and demand of petrol as the ship will take at least 10 days for the journey and correction. Tribune. GBP, 5-Apr-16, 148.6 155 Aug-16 CPPA authorised to buy power from RLNG projects The ECC of the cabinet has allowed the state-owned Central Power Purchasing Agency (CPPA to buy electricity from the three public sector RLNG-based power projects of 3,600MW in the public sector, in accordance with the guidelines set out in the Power Policy 2015. The power houses – each having an approximate production capacity of 1,200MW – are located in Bhikki, Balloki and Haveli Bahadur Shah. The government has initiated clean, affordable and reliable energy program, which is an integrated approach towards the sustainable energy for Pakistan through the import of R-LNG for setting up of power plants. 600 Mn metric cubic feet/day of RLNG will be available for the power generation projects in 2017-18. The News. Jan-16 Cement sales jump to record high Pakistan’s cement industry has recorded its highest ever sales of 3.58Mn tons during Mar’16 showing a healthy increase of 19.34%, enabling it to utilize more than 90% of installed capacity during the month. Cement sales to domestic markets during March increased by 19.13% to 3.05Mn tons compared with 2.56Mn tons during Mar’15. Whereas, exports, which dropped by double digits in 7MFY16 showed an impressive growth of 20.58% during March. Tribune. Date / Period USD-Interbank Dec-16 FBR collects record PKR 2.1Tn in nine months: Dar reviews performance Federal Finance Minister Ishaq Dar held a meeting to review performance of Revenue Division/FBR and Finance Division in the first nine months of the current fiscal year. The meeting noted that the FBR has continued to display exceptional performance in the third quarter as well and has clocked an unprecedented revenue collection of over PKR 2.1Tn for 9MFY16 by recording an increase of around 19.7% of the revenue collected during 9MFY15. Chairman FBR informed that impressive growth in revenue has been achieved despite a massive decrease in fuel prices, persistent recessionary trends in global economy, drop in commodity prices and low inflation. During 3QFY16, the FBR made a net collection of around PKR 718Bn as against PKR 588Bn collected during 3QFY15, showing an increase of 22.1%. BR. Economic Indicators Import 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