Textile

Pakistan’s exports to the European Union fell by over 25%YoY in the 8MCY15. In absolute terms, exports proceeds under the Generalized System of Preferential (GSP+) scheme fell to €4.086bn (US$4.499bn) in the said period from €5.509bn ($6.065bn) a year ago. The preferential market access to the European markets under GSP+ became effective on Jan 1, 2014, and will remain available for next 10 years. (Dawn)

Economy

The country`s total liquid foreign exchange reserves stands comfortable at US$19.92bn during the week ending October 16. In this regard, the SBP reserves stands at US$15.02bn while reserves held by commercial banks stood at US$4.90bn. (Shajar Research)

The weekly SPI numbers released by Pakistan Bureau of Statistics (PBS) depict an increase of 0.07% for the week ended Oct 26’15 versus a decrease of 0.23% for the previous week. SPI for lowest income group increased by 0.08% against reported decrease of 0.22%% in the previous week. During the week, major changes were observed in the price of tomatoes (down 11.20%WoW) and chicken (Up 4.26%WoW). (Shajar Research)

The Cabinet Committee on Privatization (CCoP) has turned down the proposed plan to sell all core land assets of Faisalabad Electric Supply Company Limited (Fesco) at the current market value as the government seeks to privatize the power utility. (ET)

Power

Independent Power Producers” (IPPs) overdue receivables against Central Power Purchasing Agency (CPPA) have reportedly touched PkR260bn in just two years. A spokesman of the Independent Power Producers Advisory Council (IPPAC) said the total amount cleared by the government in 2013 was PkR480bn. (BR)

Oil & Gas

The government has recently increased taxation on POL where it is charging PkR18-34/litre as a result of the proposal by FBR to amend the steep decline in collection by the FBR. The Federal Board of Revenue (FBR) has increased sales tax from 25.5% to 26% on Motor spirit, 45% to 50% on High speed diesel and 20% sales tax is being collected on import and supply of furnace oil from November 1, 2015 under various SROs. (The Nation)

International

China stepped up monetary easing with its sixth interest-rate cut in a year as it reduced one-year lending rate to 4.35% from 4.6%. Consequently, the one-year deposit rate will fall to 1.5% from 1.75%. Reserve requirements for all banks were lowered by 50bps, with an extra 50bps reduction for some institutions. It further abolished its official cap on interest rate for savers. (Bloomberg)