Important Business News 11th July, 2018  

   Important Business News

           11th July, 2018


S.# Description Pg # Source
1. Export, import figures

PBS fails to rationalize discrepancy
Pakistan Bureau of Statistics (PBS) and the State Bank of Pakistan have reportedly failed to rationalize the discrepancy of billions of dollars in export and import figures due to variation in the duration of realization and recording of transactions, well-informed sources told Business Recorder.
According to SBP’s annual report for 2012-13, the trade figures reported by SBP in the balance of payments do not match the information provided by the PBS because trade statistics compiled by the SBP are based on exchange record data, which depend on the actual receipt and payment of foreign exchange, whereas the PBS records data based on the physical movement of goods (customs record).

1 Business Recorder
2. 22 projects being implemented under CPEC: Shamshad

Caretaker Finance Minister Dr Shamshad Akhtar has said that a total of 22 development projects at cost of $28.6 billion, including $22.3 billion investment on 15 energy projects, are being implemented under the China-Pakistan Economic Corridor (CPEC).
After presiding over the 55th progress review meeting on CPEC projects in the Planning Commission on Tuesday, the finance minister while addressing a news conference said those projects were at various stages and some project were near completion. She said that besides 22 projects, there were many mega projects of which some were near to start and some were under preparation.

1 Business Recorder
3. China pledges $20bn in loans for Arab states

China will provide Arab states with $20 billion in loans for economic development, President Xi Jinping told top Arab officials Tuesday, as Beijing seeks to build its influence in the Middle East and Africa. The money will be earmarked for “projects that will produce good employment opportunities and positive social impact in Arab States that have reconstruction needs,” said Xi, without providing further details.
It is part of a special Chinese programme for “economic reconstruction” and “industrial revitalisation,” Xi told participants at a China-Arab States forum in Beijing’s Great Hall of the People.

1 Business Recorder
4. Discos list factors behind rising circular debt

The rising gap between the consumers-end billing and collection, tariff differential subsidy claimed from government, collection of GST by the Federal Board of Revenue (FBR) on assessment instead of actual collection, and transmission as well as distribution losses have been cited as main reasons behind circular debt in the power sector.
This was disclosed in a recent briefing by distribution companies, including Sukkur Electric Power Company, that Ministry of Water & Power had directed Discos years back to incorporate loan and markup amount in their books of accounts and submit compliance report.

1 Business Recorder
5. Remittances remain below target

The country missed home remittances target of $20.7 billion for the last fiscal year 2017-18 (FY18).
The State Bank of Pakistan (SBP) Tuesday reported that overall, overseas Pakistani workers remitted $19.6 billion during FY18 compared with $19.351 billion received during the same period in the preceding year (FY17), showing a growth of 1.4 percent.
Although, remittances, arrived in FY18, are higher than previous year, but less than the actual target of $20.7 billion set by the federal government for the last fiscal year.

1 Business Recorder
6. World Bank ranking

India muscles past France
India has become the world’s sixth-biggest economy, pushing France into seventh place, according to updated World Bank figures for 2017.
India’s gross domestic product (GDP) amounted to $2.597 trillion at the end of last year, against $2.582 trillion for France.
India’s economy rebounded strongly from July 2017, after several quarters of slowdown blamed on economic policies pursued by Prime Minister Narendra Modi’s government

1 Business Recorder
7. SECP asks PSX to remove Lawai

The Secu-rities and Exchange Commi-ssion of Pakistan (SECP) has directed Pakistan Stock Exchange Limited (PSX) vide direction dated 10 July, 2018 to immediately remove Hussain Lawai as Chairman of the Board of Directors of PSX.
The SECP issued the direction considering facts that First Information Report (FIR) dated July 6, 2018, has been registered by the Federal Investigation Agency (FIA) under Pakistan Penal Code read with Prevention of Corruption Act, 1947, and the Anti-Money Laundering Act, 2010. The said FIR, among other individuals, also nominated Lawai as one of the accused, and the FIA has arrested him for further investigation

1 Business Recorder
8. Water supply situation to aggravate further: HEC chief

Pakistan is facing acute water shortage which will be intensified in the coming years and there is a need to sensitize university leaders about the emerging threats.
This was the consensus among the speakers at a ‘National Workshop on GreenMetric Ranking’ held here on Tuesday.

5 Business Recorder
9. PRGMEA calls for early payment of refund claims

An interactive session of business community with Punjab’s Caretaker Minister for Commerce Mian Anjum Nisar and Caretaker Minister for Labour Mian Nouman Kabir was held at Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) to highlight the problems confronted by the business community of Sialkot since long.

Speaking on the occasion PRGMEA Chief Coordinator Ijaz A. Khokhar said that value-chain apparel industry is highly important which is not only contributing considerable foreign exchange to national exchequer but also providing huge employment opportunities for the workforce while fulfilling its national obligations by paying taxes in billions of rupees.

5 Business Recorder
10. Water sector

Envoy urges private sector to collaborate with Australian firms
Acting Deputy High Commissioner of the Australian High Commission Dave Preston has urged Pakistan’s vibrant private sector to explore collaboration with the Australian companies that have expertise in the water sector. More than one-thousand Australian companies are operating is this area.
They have expertise and technologies that can help Pakistan tackle challenges such as improving water supply for cities, water harvesting and recycling, and ensuring efficient agricultural water management and distribution. Dave Preston gave these opening remarks in a seminar titled “Nexus Matters – Institutionalizing the Water-Energy-Food Narrative in Sindh Province”.

7 Business Recorder
11. SAARC Chamber building to be used for regional connectivity

The SAARC Chamber of Commerce and Industry’s headquarters building following its completion will be used as a launching pad for optimal utilization of the region’s natural resources.
According to a spokesman, President SAARC Chamber Ruwan Edirisinghe stated thison Tuesday while presiding over a meeting in the federal capital.

12 Business Recorder
12. FCCI chief hails CJP’s efforts for construction of dams

Shabbir Hussain Chawla, president, Faisalabad Chamber of Commerce & Industry (FCCI), has welcomed the decision of Chief Justice Mian Saqib Nisar to start immediate construction of two major dams in order to save Pakistan from water aggression by India and to ensure sufficient water and cheap electricity for the future generations of Pakistan.

13. Textile industry passing through critical phase, says APTMA chief

All Pakistan Textile Mills Association (APTMA) Chairman Aamir Fayyaz has demanded immediate withdrawal of SRO No.848/(I)/2018, as it would adversely impact the entire textile industry value chain.
The caretaker federal government has withdrawn SRO No.48 and issued SRO No. 847 effective from July 15, 2018, which imposes customs duty on import of cotton @ 3 percent Customs duty and 2 percent additional Customs duty.

13 Business Recorder
14. Reservoirs’ shortage main cause of water scarcity: LCCI

The Lahore Chamber of Commerce and Industry has termed huge water shortage in dams very alarming and said that the country would be facing irreparable loss if new water reservoirs/dams are not built.
LCCI President Malik Tahir Javaid said water storage capacity has gone down horribly and all those are responsible who are opposing the important water and power projects. Pakistan is an agrarian economy and cannot afford water dearth at any cost but unfortunately no strategy has been evolved to resolve this major issue. He said the country is dependent on only two big dams including Tarbela and Mangla. It is a matter of concern that water storage capacity of the two dams has been reduced significantly and situation would be more concerning with the passage of time.

13 Business Recorder
15. Collapse of Pakistan cotton sector

Decrease in cotton acreage, per hectare yield and imprudent government policies have taken a heavy toll on cotton production. According to Pakistan Central Cotton Committee’s (PCCC’s) report, cotton production target has been missed by 15 percent for the year 2018. The following table shows the cotton area and production targets and achievements for the year 2017-18.
Over the last five years, cotton production has decreased from 13.86 million bales to 11.98 million bales, witnessing a decrease of 14pc which has caused a loss of Rs 535 billion (almost 2 percent of total GDP) to the economy.

21 Business Recorder
16. Donations for dams

SBP explains collection mechanism
The State Bank of Pakistan (SBP) Tuesday called the public response to the Chief Justice of Pakistan’s appeal for donations to build dams ‘positive’, saying that banks are likely to receive more than sufficient funds.

Addressing a press conference at SBP Head Office, Shamsul Hasan Deputy Governor SBP, explained the arrangements made at field offices and bank branches across Pakistan to receive donations for Diamer Bhasha and Mohmand Dam established on the instructions of the Supreme Court for construction of two dams in the country.

22 Business Recorder
17. Revenue shortfall

20 Business Recorder
18. Public debt on an explosive path

20 Business Recorder


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State Bank of Pakistan

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