Nov.

28, 2015

KCCI - eBulletin
Govt. striving to increase foreign reserves to $ 21Bn: Dar
Finance Minister Ishaq Dar has said that the govt. is making efforts to further increase foreign exchange reserves of the country
to $ 21Bn within a few months. He was addressing a function in connection with signing of MoU between Pakistan Baitul Mal
and Universal Service Fund in Islamabad where he said the govt. is working on electricity projects totaling 25,000MW of which
11,000MW would be added to the national grid in their tenure. FM further said that the govt. has increased the budget for
Baitul Mal by 100% for the welfare of poor people, adding that 1Mn jobs would be created next year in the information and
communication technologies sector. Daily Times.
Govt. focus will now shift to growth: Dar
Finance Minister Ishaq Dar, at the launch of information and communication technology (ICT), has said that govt. has achieved
internationally acceptable level of 4% fiscal deficit during the last two years and its focus now would be on growth and
employment generation in the remaining period. In this regard, the Minister further said that current 4% fiscal deficit is
internationally acceptable for developing countries, adding that the reduction in fiscal deficit is achieved by imposing a ban on
duty free import of vehicles for VIPs and reduction in current expenditure. BR.
Ogra suggests reduction in petrol, kerosene prices
The Oil and Gas Regulatory Authority (Ogra) has recommended a reduction in petrol and kerosene prices and an increase in that
of high speed diesel (HSD) for Dec15, but said the cost of all petroleum products could be reduced by bringing down the tax
rates. It has worked out a reduction of PKR 1.05 per liter in the ex-depot price of petrol to PKR 75.21 and of PKR 0.79 in the price
of kerosene to PKR 56.32, while it has recommended the price of HSD to go up to PKR 85.21. The government is charging 22%
GST and around PKR 10 per litre petroleum levy on petrol and kerosene while it is collecting 47.5% GST on HSD and PKR 8 per
litre petroleum levy. Dawn.
IPPs seek international arbitration against NTDC in payment dispute
Nine independent power producers (IPPs) are seeking international arbitration in a dispute over PKR 11Bn in payments with the
National Transmission and Dispatch Company (NTDC), which the IPPs say the government owes to the power companies. The
IPPs, including Hub Power Company (Narowal), Nishat Chunian Power Limited and Nishat Power Limited, have invoked their
right for international arbitration under the Power Purchase Agreement they signed with NTDC. The matter relates to a
payment of PKR 329Bn released to all IPPs in Jun13. The IPPs claimed payment of PKR 340Bn, but PKR 11Bn was disputed by
NTDC, the power purchaser. The News.
NJHP: Ministry's proposal turned down
Finance Minister Ishaq Dar has turned down proposal of Water and Power Ministry with respect to tax exemption for facilitating
successful execution of financing facility of PKR 100Bn for Neelum Jhelum Hydropower Project (NJHP). Water Ministry
submitted a proposal to the Economic Co-ordination Committee (ECC) dated Nov. 25, 2015 for issuance of a Sukuk to raise PKR
100Bn to bridge a shortfall in local financing for NJHP. BR.
PSO, Qatargas agree to revise price after 10 years
Pakistan State Oil (PSO) and Qatargas have agreed to revise the price of Liquefied Natural Gas (LNG) after ten years and, in case
of disagreement between the parties, the contract will be annulled. The Economic Co-ordination Committee (ECC) is expected
to approve $ 16Bn deal under Sale Purchase Agreement (SPA) between PSO and Qatargas on Nov. 30, 2015. In the first two
years (2016-17) it is expected that QG2 will supply a minimum 1.5Mn tons of LNG which will be increased to 3Mn tons from
third year onward (2018-2030). BR.
Used cars import doubled in first four months
Imports of used cars have doubled in 4MFY16 to 14,106 units, as compared to 7,982 units imported in the same period last
year. The share of hybrid vehicles has also increased, with imports of 3,200 units, making it 23% of the imports. The reason
behind the increasing imports of hybrids is that the importers are taking advantage of lower duty on hybrids over and above the
normal 1% waiver for each month on used cars. A local auto assembler is of the view that the alarming rise in the import of
luxury cars shows that the policymakers are, facilitating the richest segment of the society in acquiring used cars at concessional
duties. The News.
World sees Pakistan as emerging economy
Ahsan Iqbal, Federal Minister for Planning Development and Reforms has said that Pakistan has changed into a different and a
progressing country with potential for foreign and local investors to expand their businesses. Speaking as chief guest at the 11th
CEO Summit Asia 2015, Ahsan said Pakistan had become the worlds new emerging economy. He urged the corporate sector
and masses to alter their perception towards Pakistan as positive, in line with visible development and the emerging peaceful
scenario across the country. The News.

Economic Indicators
List of Indicators

Date / Period

Unit

Value

Change Daily

USD-Interbank

27-Nov

PKR

105.51

0.00%

USD-Open MKT

27-Nov

PKR

106.50

0.33%

KSE-100 index
FIPI

27-Nov
27-Nov

Pts.
$ Mn

32,960
-6.40

-0.36%
NM**

Crude (JA'16)

27-Nov

$/bbl

42.01

-1.06%

Gold (NO'15)

27-Nov

$/oz

1,063.7

-0.62%

Gold (10g) Local

27-Nov

PKR

38,485

-0.33%

Silver (NO'15)

27-Nov

$/oz

14.04

-1.43%

Cotton(KHI)-40 kg

27-Nov

PKR

5,734

0.00%

Kibor-6M

27-Nov

6.52%

0.00%

Forex Reserves

13-Nov

$ Bn

19.71

-0.17%

Remittances

Jul-Oct 15

$ Bn

6.51

5.21%

Exports*

Jul-Oct 15

$ Bn

6.88

-13.42%

Imports*

Jul-Oct 15

$ Bn

14.58

-12.76%

Trade Balance*

Jul-Oct 15

$ Bn

-7.70

12.15%

Current Account

Jul-Oct 15
Jul-Oct 15

-532
1.65

71.96%

Avg. CPI-FY16*

$ Mn
%

WoW
YoY

Nov-15
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

GBP, 27-Nov-15,
159.0

165
155
145
135

EUR, 27-Nov-15,
111.9

125
115
105

USD, 27-Nov-15,
105.5

95
85
75
Nov-12

May-13
USD

Nov-13

May-15

Nov-15

Source: KCCI Research ; Oanda.com

"Many ideas grow better when transplanted into

another mind, than in the one where they sprung up."
Oliver Wendell Holmes
Chart of the Day

Comparative Real GDP Growth Rates

FY15P
FY14
FY13

Indonesia to continue importing Pakistani kinnows

Indonesian Consul General in Karachi has assured the traders that his country will continue to import Pakistani oranges. He has
expressed concern over the recent developments that implied Indonesia was considering banning import of oranges from
Pakistan. He underscored the need for direct exports from Pakistan to Indonesia, eliminating the role of any third party and
assured the traders that his office will facilitate the Indonesian buyers visiting Pakistan in order to promote the fruit and
vegetable trade. Tribune.

US wants tax exemption on import of security scanners

The United States has requested Pakistan to exempt from duties and taxes the import of security scanners that it wants to
install at Karachi port for scanning US-bound export containers under its Container Security Initiative (CSI). The ECC of the
cabinet will take up the US request of granting it exemption from payment of $ 3Mn or about PKR 317Mn in taxes and duties
next week, according to the FBR. Tribune.

Nov-14

EUR

Quote of the Day

3QFY15: NPLs register little change, amount to PKR 629.9Bn

According to the latest data released by SBP, the stock of NPLs amounted to PKR 629.9Bn at the end of 3QCY15, although the
Year on Year (YoY) increase clocked up at 3.5%. The share of NPLs in loans of the banking sector stands at 12.5%. Out of the 6
major segments that receive advances, namely corporate, agriculture, consumer, small and medium enterprises (SME),
commodity financing and staff loans, the highest infection ratio was reported in the SME sector at the end of Sep. Tribune.

Value-added textile: Industry fears further drop in exports

The value-added textile industry has urged the govt. to address their problems on an urgent basis as the drop in shipments may
increase in the next quarter. Pakistan Readymade Exporters have appealed to the Prime Minister Nawaz Sharif to intervene and
frame a policy for a reduction in input costs, otherwise industrial units would not only close down, but millions of workers
would also lose their jobs. On a monthly basis, exports dropped 10.63% to $ 1.05Bn in Oct 2015 compared to $ 1.17Bn in the
same month 0f 2014. Tribune.

May-14

GBP

FY12
FY11
FY10
FY09
-6.00%

-4.00%
China

-2.00%

0.00%

2.00%

Developing Countries

4.00%

United States

6.00%
Euro Area

8.00%

10.00%

World

Source: KCCI Research, Eco Survey

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