Pakistan Economy Daily Update - 9 April

Transcription

1. Apr . 9, 2016 KCCI - eBulletin Country's economy: IMF, too, wants consensus on core issues After Finance Minister Ishaq Dar, now the IMF also wants national consensus on core economic issues to resolve to prevent short terms risks from remerging and to address underlying structural and core issues of Pakistan’s economy. IMF director Middle East Central Asian Development Masood Ahmed during a back ground discussion with media after a series of meetings with prime minister and others, stated that many of the issues that an economy like Pakistan faces to modernise and transform the economy, can be tackled more effectively if it has a national consensus on a core economic agenda. He added that having such a national consensus would then make sure that these issues are not so much a political debate but tackled on the merits of the economy on the long run. BR. China’s Xinjiang seals deals worth $ 2Bn with Pakistan Companies from China’s far western region of Xinjiang have signed deals worth about $ 2Bn with Pakistan this week during a visit to Islamabad. The $ 2Bn in agreements covered infrastructure, solar power and logistics, among other projects signed by companies from Xinjiang with their Pakistan counterparts. In the meeting with PM Nawaz Sharif, the two countries agreed to continue working together to fight terrorism, strengthen border controls, maintain regional peace and stability and ensure the economic corridor projects are protected. Tribune. $ 11.4Mn deal, MoU signed at ‘Texpo’ A Chinese business delegation have signed a MoU with Pakistan Leather Garments Manufacturers and Exporters on the 2nd day of international textile exhibition ‘TEXPO 2016’ on 8th Apr, 2016. The leather exhibitors also closed a business deal worth $ 11.4Mn with buyers invited by the TDAP from Poland and Germany. Two leading trade chambers of Pakistan, KCCI and FPCCI also held conducive business meetings with delegates from Netherlands, S.Africa, S.America, Spain, Indonesia, Thailand, Jordan, China, Kuwait, India and Nigeria. The Nation. Economic Indicators Date / Period Unit Value Change Daily USD-Interbank List of Indicators 8-Apr PKR 104.70 0.00% USD-Open MKT 8-Apr 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 40.54 4.70% Gold (MY'16) 8-Apr $/oz 1,236.2 1.07% Gold (10g) Local 8-Apr PKR 42,257 0.51% Silver (MY'16) 8-Apr $/oz 15.20 -0.15% 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 One third of people live below poverty line Jan-16 % 6.00 Nearly 60 Mn people live below the poverty line in Pakistan, making almost a third of the country poor under a new Discount Rate formula adopted by the government to measure poverty. A report from the Planning Commission estimates that adults Sources: KCCI Research, PMEX, NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year in up to 7.6Mn households are earning less than 3,030 rupees per month ($30), raising poverty levels to 29.5% from 9% Major Currencies under former estimates. It calculates poverty by the cost of basic needs (CBN) rather than by food energy intake (FEI) as previously, adding that the change has been made in accordance with best international practices. BR. 175 Presidents of state-owned banks: Senate panel restricts service terms to only two A parliamentary panel has approved amendments to the Banks Nationalization Act 1974 that will allow only two service terms to the presidents of state-owned commercial banks. The Senate Standing Committee on Finance and Revenue agreed on 3 amendments, which would also give protection to minority shareholders in govt. owned banks. According to the amended bill, the number of directors in state-owned banks has been fixed at a minimum five and maximum seven including private directors. These directors can only be removed under a procedure laid down in the Companies Ordinance 1984. Tribune. Budget 2017-18: SBP proposes deletion of Section 165A of IT Ordinance 2001 The SBP has proposed deletion of Section 165A of the Income Tax Ordinance 2001 in budget FY17 as the online access of banks databases to the FBR may cause panic and trust deficit amongst depositors of banks resulting in further depletion of already very low saving to GDP ratio. In its budget proposals, the SBP endorsed the proposals put forth by the Pakistan Banking Association, which also include resolution of the anomaly related to FED of 16% on banking services, in addition to sales tax imposed by the respective provinces on the same services. As the right to levy sales tax on services has been delegated to the provinces, the SBP proposes that the FBR withdraws from its rights to collect FED. BR. TAPI gas pipeline through Afghanistan ‘doable’: ADB The Asian Development Bank (ADB) hopes to overcome by 2020 the challenges of building a $ 10Bn gas pipeline through Afghanistan’s most violent areas, by making sure it benefits Afghan contractors and communities. The Central and West Asia director general of the ADB, a transaction adviser for the project, is of the view that although security challenges are there, but it is doable. Dawn. 165 155 145 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 EUR Jan-16 Apr-16 Source: KCCI Research ; Oanda.com Quote of the Day "Develop success from failures. Discouragement and failure are two of the surest steppingstones to success." Dale Carnegie SECP takes action against defaulter companies SECP has taken action against companies on defaulter counter of Pakistan Stock Exchange (PSX) to provide relief to their minority shareholders. Failure on part of the managements and directors of the listed companies to comply with the 2,500 listing regulations would result in suspension in share trading of the companies that have been a cause of serious concern for the SECP. Daily Times. Chart of the Day Pakistan Foreign Investment Snapshot ($ Mn) 2,000 FBR probes eight large companies on alleged tax evasion The Federal Board of Revenue (FBR) Intelligence Wing has completed tax evasion investigations in 8 large companies 1,500 including Trade Key, worth billions of rupees, and has advised the concerned departments to initiate departmental proceedings. FBR had asked Directorate General of Investigation and Intelligence, Inland Revenue (I&I-IR), Karachi to probe the alleged tax evasions by 8 big private businesses. Investigation officers prepared detailed investigation reports 1,000 in this regard and sent it to the concerned regional tax offices (RTOs) advising necessary actions against them. Daily Times. 500 80 residential high-rises coming up every year in Sindh Builders have announced 80 high-rise residential projects on average each year since 2011 in the Southern region of the country, mostly in Karachi and Hyderabad. These projects are based on average 8,000 units i.e. 100 units per project. Of the 80 projects a year, Karachi holds the lion’s share at 85% compared to Hyderabad’s 10pc. The rest is shared among the other cities of Sindh. Builders are of the view that if the housing policies remain favourable, laws are revised according to ground realities and consumption, political stability continues and supply of gas, water and power improves, the builders would launch up to 200 projects in 2017. Dawn. 0 -500 FDI (Net) FPI Total Investment Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The Bosan for using modern tech in agriculture information contained herein have been compiled or arrived at based upon Federal Minister for National Food Security and Research Sikandar Hayaat Khan Bosan while addressing the 3rd annual information obtained from sources believed to be reliable and in good faith. meeting of SAARC Countries’ agriculture ministers in Dhaka, on 7th Apr, 2016 stressed the need to use modern Such information has not been independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is technologies in agriculture sector to ensure food security in the region. The Nation. stated to enrich the readers' understanding of the news item. The